Core Viewpoint - Milan Station (01150) reported a mid-year performance for 2025, showing a revenue of HKD 50.057 million, a year-on-year decline of 20.7% [1] - The net loss narrowed to HKD 11.023 million, a reduction of 48.8% compared to the previous year [1] - The decrease in net loss was primarily due to a reduction in losses from the fair value changes of financial assets measured at fair value through profit or loss [1] Financial Performance - Revenue for the period was HKD 50.057 million, reflecting a 20.7% decrease year-on-year [1] - The company reported a net loss of HKD 11.023 million, which is a significant improvement, narrowing by 48.8% from the previous year [1] - Basic loss per share was HKD 0.0104 [1]

[Company Information](index=3&type=section&id=Company%20Information) This section provides an overview of the company's corporate structure, including its board composition, committees, and fundamental registration details [Board of Directors and Committee Composition](index=3&type=section&id=Board%20of%20Directors%20and%20Committee%20Composition) The company's Board of Directors comprises two executive directors and three independent non-executive directors, supported by audit, remuneration, and nomination committees for effective corporate governance - The Board members include executive directors Mr. Hu Bo and Ms. Ji Guiping, and independent non-executive directors Mr. Chan Chi Hung, Mr. To Kin Chuen, and Mr. Choi Kam Yan[8](index=8&type=chunk) - The Audit Committee is chaired by Mr. To Kin Chuen, the Remuneration Committee by Mr. To Kin Chuen, and the Nomination Committee by Mr. Hu Bo[8](index=8&type=chunk) [Company Basic Information](index=3&type=section&id=Company%20Basic%20Information) The company is incorporated in the Cayman Islands with its headquarters in Kowloon, Hong Kong, stock code 1150, and primary banking relationships with OCBC Wing Hang Bank, DBS Bank (Hong Kong), and China Construction Bank (Asia) - The company's stock code is **1150**[9](index=9&type=chunk) - Key banking relationships include OCBC Wing Hang Bank Limited, DBS Bank (Hong Kong) Limited, and China Construction Bank (Asia) Corporation Limited[9](index=9&type=chunk) - The company's website is www.milanstation.com.hk[9](index=9&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group reported a net loss of approximately HK$11.0 million, a significant 48.8% reduction year-on-year, primarily due to a narrower fair value change loss on financial assets at fair value through profit or loss Key Financial Data from Condensed Consolidated Statement of Profit or Loss | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Change (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 50,057 | 63,159 | (13,102) | -20.7% | | Cost of Sales | (44,314) | (59,105) | 14,791 | -25.0% | | Gross Profit | 5,743 | 4,054 | 1,689 | 41.7% | | Other Income and Other Gains | 729 | 3,676 | (2,947) | -80.2% | | Fair Value Change Loss on Financial Assets at Fair Value Through Profit or Loss | (1,878) | (11,341) | 9,463 | -83.4% | | Operating Loss | (10,199) | (20,780) | 10,581 | -50.9% | | Loss for the Period | (11,023) | (21,521) | 10,498 | -48.8% | | Basic Loss Per Share (HK Cents) | (1.04) | (2.44) | 1.40 | -57.4% | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's total comprehensive loss was HK$11.0 million, a substantial 48.0% decrease year-on-year, mainly driven by the narrowed loss for the period Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Change (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Loss for the Period | (11,023) | (21,521) | 10,498 | -48.8% | | Exchange Differences Arising from Translation of Foreign Operations | (1) | 316 | (317) | -100.3% | | Total Comprehensive Loss for the Period | (11,024) | (21,205) | 10,181 | -48.0% | [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's net assets were HK$61.2 million, a 15.3% decrease from December 31, 2024, primarily due to reductions in current assets like inventories and financial assets Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | Change (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Non-current Assets | 10,973 | 7,580 | 3,393 | 44.8% | | Current Assets | 81,980 | 96,117 | (14,137) | -14.7% | | Current Liabilities | 17,766 | 19,463 | (1,697) | -8.7% | | Net Current Assets | 64,214 | 76,654 | (12,440) | -16.2% | | Total Assets Less Current Liabilities | 75,187 | 84,234 | (9,047) | -10.7% | | Non-current Liabilities | 13,975 | 11,998 | 1,977 | 16.5% | | Net Assets | 61,212 | 72,236 | (11,024) | -15.3% | | Total Equity | 61,212 | 72,236 | (11,024) | -15.3% | - Non-current assets increased by **44.8%**, driven by increases in property, plant and equipment and right-of-use assets[17](index=17&type=chunk) - Current assets decreased by **14.7%**, primarily due to reductions in inventories, trade receivables, loans receivable, and financial assets at fair value through profit or loss[17](index=17&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to owners of the company decreased to HK$61.2 million, primarily reflecting the loss for the period and minor exchange differences Key Data from Condensed Consolidated Statement of Changes in Equity | Indicator | January 1, 2025 (Audited) (HK$ '000) | Total Comprehensive Income for the Period (HK$ '000) | June 30, 2025 (Unaudited) (HK$ '000) | | :--- | :--- | :--- | :--- | | Share Capital | 42,277 | – | 42,277 | | Share Premium Account | 271,741 | – | 271,741 | | Capital Reserve | 10 | – | 10 | | Merger Reserve | (23,782) | – | (23,782) | | Statutory Reserve | – | – | – | | Exchange Reserve | 527 | (1) | 526 | | Share Option Reserve | – | – | – | | Accumulated Losses | (218,537) | (11,023) | (229,560) | | **Total Equity** | **72,236** | **(11,024)** | **61,212** | - The total comprehensive loss for the period was **HK$11,024 thousand**, leading to a corresponding reduction in total equity[18](index=18&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group's net decrease in cash and cash equivalents was HK$1.8 million, primarily due to increased net cash flows used in financing activities Key Data from Condensed Consolidated Statement of Cash Flows | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Change (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 5,277 | 3,402 | 1,875 | 55.1% | | Net Cash Flows Used in Investing Activities | (1,196) | (233) | (963) | 413.3% | | Net Cash Flows Used in Financing Activities | (5,888) | (4,640) | (1,248) | 26.9% | | Net Decrease in Cash and Cash Equivalents | (1,807) | (1,471) | (336) | 22.8% | | Cash and Cash Equivalents at End of Period | 9,447 | 9,098 | 349 | 3.8% | - Net cash flows from operating activities increased by **55.1%** year-on-year[23](index=23&type=chunk) - Net cash flows used in investing activities significantly increased by **413.3%**, primarily due to higher acquisitions of property, plant and equipment[23](index=23&type=chunk)[41](index=41&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes to the condensed consolidated interim financial statements, covering company information, basis of preparation, operating segment data, revenue and expense analysis, taxation, loss per share, dividends, asset and liability item details, related party transactions, and financial instrument classification [1. Company Information](index=10&type=section&id=1.%20Company%20Information) The company's principal business is investment holding, with its subsidiaries primarily engaged in the retail of handbags, fashion accessories, and ornaments, with no significant change in the Group's principal business nature during the period - The principal business of the Company is investment holding[24](index=24&type=chunk) - The principal business of the Company's subsidiaries is the retail of handbags, fashion accessories, and ornaments[24](index=24&type=chunk) - There was no significant change in the nature of the Group's principal business during the period[24](index=24&type=chunk) [2. Basis of Preparation](index=10&type=section&id=2.%20Basis%20of%20Preparation) The unaudited condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, with principal accounting policies consistent with the prior year's audited consolidated financial statements, and no significant changes from new or revised HKFRS standards - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the Listing Rules of the Stock Exchange[25](index=25&type=chunk) - The principal accounting policies and methods of computation used in preparing these unaudited condensed consolidated financial statements are consistent with those adopted in the annual audited consolidated financial statements for the year ended December 31, 2024[25](index=25&type=chunk) - The adoption of new and revised Hong Kong Financial Reporting Standards has not resulted in significant changes to the Group's accounting policies, financial statement presentation, or reported amounts[26](index=26&type=chunk) [3. Operating Segment Information](index=11&type=section&id=3.%20Operating%20Segment%20Information) The Group's sole operating segment is the retail of handbags and fashion accessories, with revenue and non-current assets primarily located in Hong Kong, and no single customer accounted for 10% or more of total Group revenue during the period - The Group's principal business is the retail of handbags and fashion accessories, which constitutes its sole operating segment[28](index=28&type=chunk) - The Group's revenue is primarily derived from the sale of goods in Hong Kong, where its non-current assets are also mainly located[28](index=28&type=chunk) - For the six months ended June 30, 2025 and 2024, no single customer accounted for **10%** or more of the Group's total revenue[29](index=29&type=chunk) [4. Revenue, Other Income and Other Gains](index=11&type=section&id=4.%20Revenue,%20Other%20Income%20and%20Other%20Gains) Total revenue for the period decreased by 20.7% to HK$50.1 million, primarily from handbag sales, while other income and gains significantly dropped by 80.2% due to the absence of a gain from subsidiary disposal in the prior period Analysis of Revenue, Other Income and Other Gains | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Change (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Sale of handbags | 49,657 | 62,558 | (12,901) | -20.6% | | Sale of fashion accessories | 400 | 601 | (201) | -33.4% | | **Total Revenue** | **50,057** | **63,159** | **(13,102)** | **-20.7%** | | Interest income | 3 | 11 | (8) | -72.7% | | Interest income from loans receivable | 223 | 154 | 69 | 44.8% | | Other income | 503 | 611 | (108) | -17.7% | | Gain on disposal of a subsidiary | – | 2,900 | (2,900) | -100.0% | | **Total Other Income and Other Gains** | **729** | **3,676** | **(2,947)** | **-80.2%** | - The decrease in other income and other gains was primarily due to the gain on disposal of a subsidiary recorded in 2024, which was absent in the current period[30](index=30&type=chunk) [5. Finance Costs](index=12&type=section&id=5.%20Finance%20Costs) Finance costs for the period were HK$0.7 million, a slight decrease from the prior period, primarily comprising imputed interest expense on bonds payable and interest expense on lease liabilities Analysis of Finance Costs | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Change (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Imputed interest expense on bonds payable | 400 | 320 | 80 | 25.0% | | Interest expense on lease liabilities | 295 | 421 | (126) | -29.9% | | **Total Finance Costs** | **695** | **741** | **(46)** | **-6.2%** | [6. Loss Before Tax](index=12&type=section&id=6.%20Loss%20Before%20Tax) The Group's loss before tax significantly narrowed to HK$10.9 million, a 49.3% reduction from the prior period, mainly due to decreased employee benefit expenses, cost of inventories sold, and depreciation expenses Analysis of Loss Before Tax Components | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Change (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Employee benefit expenses | 3,793 | 4,807 | (1,014) | -21.1% | | Cost of inventories sold | 44,314 | 59,105 | (14,791) | -25.0% | | Depreciation (property, plant and equipment) | 465 | 1,010 | (545) | -54.0% | | Depreciation (right-of-use assets) | 3,613 | 4,275 | (662) | -15.5% | [7. Income Tax Expense](index=13&type=section&id=7.%20Income%20Tax%20Expense) Income tax expense for the period was HK$129 thousand, primarily due to under-provision in the prior year, with no provision for profits tax required as Hong Kong and PRC subsidiaries had no assessable profits - Income tax expense for 2025 was **HK$129 thousand**, mainly due to under-provision in the prior year[36](index=36&type=chunk) - No provision for Hong Kong profits tax and enterprise income tax was required for the period as the Group's Hong Kong entities and PRC subsidiaries had no assessable profits[37](index=37&type=chunk) [8. Loss Per Share](index=14&type=section&id=8.%20Loss%20Per%20Share) Both basic and diluted loss per share for the period were (1.04) HK Cents, a significant improvement from (2.44) HK Cents in the prior year, reflecting the narrowed loss for the period, with no potential dilutive ordinary shares outstanding Analysis of Loss Per Share | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Change (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Loss attributable to owners of the Company | (11,023) | (21,521) | 10,498 | -48.8% | | Weighted average number of ordinary shares | 1,056,936,650 | 880,786,650 | 176,150,000 | 20.0% | | **Basic Loss Per Share (HK Cents)** | **(1.04)** | **(2.44)** | **1.40** | **-57.4%** | | **Diluted Loss Per Share (HK Cents)** | **(1.04)** | **(2.44)** | **1.40** | **-57.4%** | - For the six months ended June 30, 2025 and 2024, no adjustment was made to the basic loss per share as there were no potential dilutive ordinary shares outstanding during the period[39](index=39&type=chunk) [9. Dividends](index=14&type=section&id=9.%20Dividends) No dividends were paid or proposed for the period, consistent with the prior year - No dividends were paid or proposed during the period (June 30, 2024: Nil)[40](index=40&type=chunk) [10. Property, Plant and Equipment](index=14&type=section&id=10.%20Property,%20Plant%20and%20Equipment) The Group acquired approximately HK$1.2 million in property, plant and equipment during the period, a significant increase from the prior year, with no disposals of such assets - For the six months ended June 30, 2025, the Group acquired property, plant and equipment of approximately **HK$1,199,000** (six months ended June 30, 2024: HK$244,000)[41](index=41&type=chunk) - For the six months ended June 30, 2025, the Group did not dispose of any property, plant and equipment (six months ended June 30, 2024: Nil)[42](index=42&type=chunk) [11. Right-of-use Assets](index=14&type=section&id=11.%20Right-of-use%20Assets) A new lease arrangement amounting to approximately HK$6.7 million was entered into during the period, with no new right-of-use assets recognized due to the renewal of existing leases - For the six months ended June 30, 2025, a new lease arrangement amounted to approximately **HK$6,672,000** (2024: two new leases amounted to HK$6,885,000)[43](index=43&type=chunk) - For the six months ended June 30, 2025, the Group did not recognize new right-of-use assets due to the renewal of existing leases during the period (2024: HK$1,198,000)[43](index=43&type=chunk) [12. Trade Receivables](index=15&type=section&id=12.%20Trade%20Receivables) As of June 30, 2025, net trade receivables were HK$1.8 million, an 18.2% decrease from December 31, 2024, with the Group maintaining strict control over receivables and typically granting credit terms of 0 to 90 days Analysis of Trade Receivables | Indicator | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | Change (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade receivables | 2,731 | 3,129 | (398) | -12.7% | | Less: Provision for expected credit losses | (947) | (947) | – | 0.0% | | **Net Trade Receivables** | **1,784** | **2,182** | **(398)** | **-18.2%** | - Customers are generally granted credit terms of **0 to 90 days**[45](index=45&type=chunk) - The aging analysis of trade receivables shows that receivables aged 7 to 12 months decreased from **HK$1,601 thousand** to **HK$1,029 thousand**[46](index=46&type=chunk) [13. Loans Receivable](index=15&type=section&id=13.%20Loans%20Receivable) As of June 30, 2025, net loans receivable were HK$2.1 million, a 43.2% decrease from December 31, 2024, with these loans being unsecured, bearing 8% annual interest, and repayable within one year Analysis of Loans Receivable | Indicator | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | Change (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Loans receivable | 13,118 | 14,696 | (1,578) | -10.7% | | Less: Provision for expected credit losses | (11,041) | (11,041) | – | 0.0% | | **Net Loans Receivable** | **2,077** | **3,655** | **(1,578)** | **-43.2%** | - Loans receivable are unsecured, bear interest at an annual rate of **8%**, and are repayable within one year[47](index=47&type=chunk) [14. Trade and Other Payables](index=16&type=section&id=14.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables were HK$10.9 million, a 9.8% decrease from December 31, 2024, primarily due to a reduction in trade payables Analysis of Trade and Other Payables | Indicator | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | Change (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade payables | 602 | 1,989 | (1,387) | -69.7% | | Accruals | 7,828 | 7,805 | 23 | 0.3% | | Other payables | 2,447 | 2,326 | 121 | 5.2% | | Deposits received | 56 | – | 56 | N/A | | **Total** | **10,933** | **12,120** | **(1,187)** | **-9.8%** | - All trade payables are aged within **1 month**[49](index=49&type=chunk) [15. Share Capital](index=16&type=section&id=15.%20Share%20Capital) As of June 30, 2025, the company's authorized and issued and fully paid share capital remained unchanged at HK$80.0 million and HK$42.3 million, respectively - Authorized share capital consists of **2,000,000,000** ordinary shares of **HK$0.04** each, totaling **HK$80,000 thousand**[50](index=50&type=chunk) - Issued and fully paid share capital comprises **1,056,936,650** ordinary shares of **HK$0.04** each, totaling **HK$42,277 thousand**[50](index=50&type=chunk) [16. Related Party Transactions](index=17&type=section&id=16.%20Related%20Party%20Transactions) Related party transactions for the period included lease liabilities with a company indirectly wholly-owned by the former chairman and key management personnel remuneration, with lease liabilities reduced to zero by period-end and a decrease in key management personnel remuneration Related Party Transactions: Lease Liabilities and Related Interest Expenses | Indicator | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | 2025 Interest Expense (HK$ '000) | 2024 Interest Expense (HK$ '000) | | :--- | :--- | :--- | :--- | :--- | | Lease liabilities | – | 440 | – | 29 | Key Management Personnel Remuneration | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Change (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Short-term employee benefits | 942 | 1,526 | (584) | -38.3% | | Post-employment benefits | 18 | 36 | (18) | -50.0% | | **Total** | **960** | **1,562** | **(602)** | **-38.5%** | - Lease liabilities relate to a lease agreement with Top Wind Limited, indirectly wholly-owned by Mr. Yiu Kwan Tat, former Chairman and Executive Director[54](index=54&type=chunk) [17. Financial Instruments by Category](index=18&type=section&id=17.%20Financial%20Instruments%20by%20Category) As of June 30, 2025, financial assets at fair value through profit or loss (listed securities) decreased to HK$32.2 million, with changes observed in both financial assets and financial liabilities measured at amortized cost Financial Assets Classification | Indicator | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | Change (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Financial assets at fair value through profit or loss: Listed securities | 32,235 | 35,014 | (2,779) | -7.9% | | Financial assets at amortized cost: Trade receivables | 1,784 | 2,182 | (398) | -18.2% | | Financial assets at amortized cost: Loans receivable | 2,077 | 3,655 | (1,578) | -43.2% | | Financial assets at amortized cost: Deposits and other receivables | 3,440 | 6,078 | (2,638) | -43.4% | | Financial assets at amortized cost: Cash and bank balances | 9,447 | 11,249 | (1,802) | -16.0% | Financial Liabilities Classification | Indicator | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | Change (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Financial liabilities at amortized cost: Trade payables | 602 | 1,989 | (1,387) | -69.7% | | Financial liabilities at amortized cost: Bonds payable | 6,891 | 7,131 | (240) | -3.4% | | Financial liabilities at amortized cost: Accruals and other payables | 10,331 | 12,120 | (1,789) | -14.8% | | Financial liabilities at amortized cost: Lease liabilities | 13,367 | 11,648 | 1,719 | 14.8% | [18. Approval of Unaudited Condensed Consolidated Interim Financial Statements](index=18&type=section&id=18.%20Approval%20of%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Statements) The Board of Directors approved and authorized for issue the unaudited condensed consolidated interim financial statements on August 27, 2025 - The Board of Directors approved and authorized for issue the unaudited condensed consolidated interim financial statements on August 27, 2025[57](index=57&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section outlines the Group's operating environment, business performance, and financial position for the first half of 2025, highlighting improved gross profit margins and significantly reduced net loss through cost control and quality management despite retail challenges, while also addressing future market opportunities and strategic responses [Market Overview](index=19&type=section&id=Market%20Overview) From May to July 2025, Hong Kong's unemployment rate rose to 3.7%, posing challenges for retail sales despite a slight increase in total retail sales value in June, while US-China relations, geopolitical tensions, and monetary policy uncertainties necessitate cautious business planning - The seasonally adjusted unemployment rate rose to **3.7%** during May to July 2025[59](index=59&type=chunk) - The provisional estimate of total retail sales value in June 2025 was **HK$30.1 billion**, representing a **0.7%** increase compared to the same month in 2024[59](index=59&type=chunk) - Retail sales began to face challenges, primarily due to rising unemployment affecting customer purchasing behavior[59](index=59&type=chunk) - Adverse factors such as US-China relations, geopolitical tensions, and evolving monetary policy stances of major central banks necessitate more cautious business planning by enterprises[59](index=59&type=chunk) [Business Review](index=19&type=section&id=Business%20Review) The Group's total revenue decreased by 20.7% to HK$50.1 million, but gross profit increased by 41.7% to HK$5.7 million, and net loss decreased by 48.8% to HK$11.0 million, primarily due to reduced fair value change loss on financial assets, while the Group maintained focus on "Authentic Goods" principles, quality management, and a prudent store expansion strategy - The Group's total revenue decreased by approximately **20.7%** to approximately **HK$50.1 million**, with revenue generated from the Hong Kong market[60](index=60&type=chunk)[61](index=61&type=chunk) - The Group's gross profit was approximately **HK$5.7 million**, an increase of **41.7%** compared to the same period last year[60](index=60&type=chunk) - The Group recorded a net loss of approximately **HK$11.0 million**, a **48.8%** reduction from the same period last year, primarily due to a decrease in fair value change loss on financial assets at fair value through profit or loss[60](index=60&type=chunk) - The Group adheres to the principle of providing "Authentic Goods" to customers, establishing stringent and systematic product verification schemes, and continuously investing more human resources in product quality management[61](index=61&type=chunk)[62](index=62&type=chunk) - The Group maintains a prudent store network expansion strategy, seeking to open new stores in better locations at lower rents while focusing on cost control[62](index=62&type=chunk) - As of June 30, 2025, the Group held listed securities with a fair value of approximately **HK$32.2 million** (December 31, 2024: HK$35.0 million) under financial assets at fair value through profit or loss in Hong Kong[62](index=62&type=chunk) [Financial Review](index=20&type=section&id=Financial%20Review) This section provides a detailed review of the Group's financial performance, including revenue segmentation by product category, price range, and geographical location, cost of sales, gross profit, inventory analysis, other income and gains, fair value change loss on financial assets, selling and administrative expenses, and ultimately, loss attributable to owners of the company [Employees and Remuneration Policy](index=24&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group's employee count decreased to 20 from 28 on December 31, 2024, with remuneration policy based on rank, performance, experience, and market trends, including basic salary, allowances, insurance, and commission/bonuses - As of June 30, 2025, the Group had a total of **20 employees** (December 31, 2024: 28 employees)[79](index=79&type=chunk) - The Group's remuneration policy is determined based on employees' rank, performance, experience, and market trends, with benefits including basic salary, allowances, insurance, and commission/bonuses[79](index=79&type=chunk) [Liquidity and Financial Resources](index=24&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group had no bank borrowings, with cash and bank balances of HK$9.4 million, total liabilities of HK$31.7 million, and shareholders' equity of HK$61.2 million, resulting in a capital gearing ratio of 33.1%, current ratio of 4.6, and quick ratio of 2.9 - As of June 30, 2025, and December 31, 2024, the Group had no bank borrowings[80](index=80&type=chunk) Key Data on Liquidity and Financial Resources | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and bank balances (HK$ Million) | 9.4 | 11.2 | | Total liabilities (HK$ Million) | 31.7 | 31.5 | | Shareholders' equity (HK$ Million) | 61.2 | 72.2 | | Capital gearing ratio | 33.1% | 26.0% | | Current ratio | 4.6 | 4.9 | | Quick ratio | 2.9 | 3.0 | [Pledge of Assets](index=24&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, and December 31, 2024, the Group had not pledged any assets or bank deposits to banks for borrowings or general banking facilities - As of June 30, 2025, and December 31, 2024, the Group had no bank borrowings or general banking facilities, and thus no assets or bank deposits were pledged to banks[81](index=81&type=chunk) [Foreign Exchange Policy](index=24&type=section&id=Foreign%20Exchange%20Policy) The Group primarily transacts in HKD, RMB, and USD, aiming to maintain a balanced position in the same currencies, without engaging in foreign exchange hedging arrangements, and considers foreign exchange transaction risk at an acceptable level - The Group primarily conducts its trading transactions in Hong Kong Dollars, Renminbi, and US Dollars[82](index=82&type=chunk) - It is the Group's policy to maintain a balance in its purchases and sales in the same currencies[82](index=82&type=chunk) - The Group has not entered into any foreign exchange hedging arrangements, and the Directors believe that the Group's exposure to transactional foreign exchange risk in currencies other than its functional currency is maintained at an acceptable level[82](index=82&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[85](index=85&type=chunk) [Capital Commitments](index=25&type=section&id=Capital%20Commitments) As of June 30, 2025, and December 31, 2024, the Group had no capital commitments regarding property, plant and equipment - As of June 30, 2025, and December 31, 2024, the Group had no capital commitments in respect of property, plant and equipment[86](index=86&type=chunk) [Material Investments](index=25&type=section&id=Material%20Investments) The Group's material investments primarily consist of listed securities at fair value through profit or loss, with a total fair value of HK$32.2 million, and the Group will closely monitor portfolio performance and maintain a prudent investment strategy Analysis of Material Investments | Company | Stock Code | Fair Value as of January 1, 2024 (HK$ '000) | Fair Value as of June 30, 2025 (HK$ '000) | Fair Value Loss (HK$ '000) | Approximate Percentage of Total Assets (June 30, 2025) | | :--- | :--- | :--- | :--- | :--- | :--- | | China Investment and Finance Group Limited | 1226 | 6,198 | 8,115 | 1,220 | 8.7% | | Harbour Digital Industry Capital Limited | 913 | 5,278 | 5,487 | 209 | 5.9% | | Others | | 23,538 | 18,633 | 5,011 | | | **Total** | | **35,014** | **32,235** | **3,582** | | - The Group will closely monitor the performance of this investment portfolio and continue to maintain a prudent investment strategy, aiming to enhance capital utilization and generate additional investment returns from the Group's idle funds[62](index=62&type=chunk) [Outlook](index=25&type=section&id=Outlook) Looking ahead, government initiatives to boost tourism and the Greater Bay Area development are expected to create opportunities for Hong Kong's retail sector; however, rising unemployment, US-China relations, geopolitical tensions, and the pandemic still pose challenges, which management will address by seizing opportunities, strengthening resources, and implementing prudent business policies - The government has launched various initiatives to encourage tourism, thereby stimulating local retail and consumption-related spending, which in turn boosts local consumer sentiment[88](index=88&type=chunk) - The development of the Greater Bay Area economic zone is also expected to provide new opportunities for Hong Kong's luxury retailers to expand their business scope and customer base[88](index=88&type=chunk) - Various uncertainties, including rising unemployment, US-China relations, geopolitical tensions, evolving policy stances of major central banks, and the recent global spread of the pandemic, pose challenges to the global economic outlook[88](index=88&type=chunk) - Management should continue to seize any opportunities arising in the market, strengthen resources to maintain a leading position in the luxury handbag and accessories trading industry, and simultaneously implement more prudent business policies[88](index=88&type=chunk) [Other Information](index=26&type=section&id=Other%20Information) This section provides information on corporate governance, directors' and substantial shareholders' interests, share option schemes, securities dealings, compliance with corporate governance code, material acquisitions or disposals, post-reporting period events, and the composition and responsibilities of the audit, remuneration, and nomination committees [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=26&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, Executive Director Mr. Hu Bo held 2,210,000 shares of the Company, representing 0.21% of the total issued shares, with no other directors or chief executives holding any interests or short positions Directors' Long Positions in Shares of the Company | Name of Participant | Number of Shares Held | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | | Mr. Hu Bo (Executive Director) | 2,210,000 | 0.21% | - Save as disclosed above, as of June 30, 2025, no Director or chief executive of the Company or any of their associates had any interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations[90](index=90&type=chunk) [Share Options](index=26&type=section&id=Share%20Options) The company has a share option scheme adopted on June 30, 2021, and for the six months ended June 30, 2025, no share options were granted, exercised, lapsed, or reclassified, nor were there any outstanding share options - The Company has a share option scheme adopted on **June 30, 2021**[91](index=91&type=chunk) - For the six months ended June 30, 2025, no share options were granted, exercised, lapsed, or reclassified under the scheme[92](index=92&type=chunk) - As of June 30, 2025, there were no outstanding share options under the scheme[92](index=92&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares](index=27&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, to the best knowledge of the Directors, no person held interests or short positions in shares or underlying shares disclosable under the SFO, or held 10% or more of the voting equity interest in any other Group member - As of June 30, 2025, no person had or was deemed to have any interests or short positions in the shares or underlying shares that were required to be disclosed to the Company and the Stock Exchange under Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance[94](index=94&type=chunk) - Furthermore, no person directly or indirectly owned an interest of **10%** or more in the nominal value of any class of share capital carrying voting rights in all circumstances at general meetings of any other member of the Group[94](index=94&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=27&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[95](index=95&type=chunk) [Use of Net Proceeds](index=27&type=section&id=Use%20of%20Net%20Proceeds) The net proceeds from the listing, after deducting related issue expenses, amounted to HK$0.3 million - The net proceeds from the listing, after deducting related issue expenses, amounted to **HK$0.3 million**[96](index=96&type=chunk) [Directors' Interests in Competing Business](index=27&type=section&id=Directors'%20Interests%20in%20Competing%20Business) For the six months ended June 30, 2025, the Directors were unaware of any business or interest of any Director, controlling shareholder, or their respective associates that competed or might compete with the Group's business, nor any other potential conflicts of interest - For the six months ended June 30, 2025, the Directors were unaware of any business or interest of any Director, controlling shareholder of the Company, and their respective associates that competed or might compete with the Group's business, nor any other potential conflicts of interest that such persons might have with the Group[97](index=97&type=chunk) [Compliance with Corporate Governance Code](index=27&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules during the period, except for certain board meetings with less than 14 days' notice, and the Board will endeavor to comply with this requirement in the future - For the six months ended June 30, 2025, the Company complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules[98](index=98&type=chunk) - Exception: Certain Board meetings were convened with less than **14 days' notice** to facilitate timely responses and prompt decision-making by Directors regarding the Group's investment opportunities and internal affairs[98](index=98&type=chunk) - The Board will make reasonable efforts to comply with code provision C.5.3 of the Corporate Governance Code in the future[98](index=98&type=chunk) [Material Acquisitions or Disposals](index=27&type=section&id=Material%20Acquisitions%20or%20Disposals) For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries and associated companies - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries and associated companies[99](index=99&type=chunk) [Standard of Dealings in Securities by Directors](index=28&type=section&id=Standard%20of%20Dealings%20in%20Securities%20by%20Directors) All Directors confirmed compliance with the Standard Code for Securities Transactions by Directors, as set out in Appendix C3 of the Listing Rules, for the six months ended June 30, 2025 - Following specific enquiries with the Directors, all Directors confirmed that they have complied with the required standards set out in the Standard Code for the six months ended June 30, 2025[100](index=100&type=chunk) [Events After the Reporting Period](index=28&type=section&id=Events%20After%20the%20Reporting%20Period) Except as disclosed, no significant events affecting the Group occurred after the six months ended June 30, 2025, and up to the date of this report - Save as disclosed, no significant events affecting the Group occurred after the six months ended June 30, 2025, and up to the date of this report[101](index=101&type=chunk) [Audit Committee](index=28&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the Group's financial statements for the six months ended June 30, 2025, and discussed audit, risk management, internal control, and financial reporting matters with management - The Audit Committee comprises three independent non-executive directors: Mr. To Kin Chuen (Chairman), Mr. Chan Chi Hung, and Mr. Choi Kam Yan[102](index=102&type=chunk) - The Audit Committee reviewed the Group's financial statements for the six months ended June 30, 2025, with the Company's management and discussed audit, risk management, internal control, and financial reporting matters[102](index=102&type=chunk) [Remuneration Committee](index=28&type=section&id=Remuneration%20Committee) The Remuneration Committee, composed of three members, predominantly independent non-executive directors, is responsible for formulating, reviewing, and determining the remuneration policies and packages for directors and senior management - The Remuneration Committee comprises three members, with a majority being independent non-executive directors: Mr. To Kin Chuen (Chairman), Mr. Chan Chi Hung, and Mr. Hu Bo[103](index=103&type=chunk) - The Remuneration Committee formulates the remuneration policy for the Company's Directors and senior management, reviews and determines their remuneration packages, and provides recommendations to the Board[103](index=103&type=chunk) [Nomination Committee](index=28&type=section&id=Nomination%20Committee) The Nomination Committee, comprising three members, predominantly independent non-executive directors, is responsible for matters related to director nominations - The Nomination Committee comprises three members, with a majority being independent non-executive directors: Mr. Hu Bo (Chairman), Mr. Chan Chi Hung, and Mr. To Kin Chuen[104](index=104&type=chunk) [Risk Management and Internal Control](index=29&type=section&id=Risk%20Management%20and%20Internal%20Control) The Board acknowledges its responsibility for risk management and internal control systems, having reviewed their effectiveness, which are designed to provide reasonable, not absolute, assurance, with an independent consultant engaged for review, and both the Board and Audit Committee confirmed the systems' effectiveness - The Board acknowledges its responsibility for the risk management and internal control systems and reviews their effectiveness, with the systems designed to provide reasonable, not absolute, assurance against material misstatement or loss[106](index=106&type=chunk) - The Board has engaged an independent internal control review consultant to assess the effectiveness of the Group's internal control systems[106](index=106&type=chunk) - For the six months ended June 30, 2025, the Board and the Audit Committee reviewed and confirmed the effectiveness of the risk management and internal control systems[107](index=107&type=chunk) - The Group has formal whistleblowing and inside information policies to ensure compliance in internal communication and information disclosure[107](index=107&type=chunk) [Interim Dividend](index=29&type=section&id=Interim%20Dividend) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: Nil)[108](index=108&type=chunk)

Group 1 - The company announced a board meeting scheduled for August 27, 2025, to approve the interim results for the six months ending June 30, 2025 [1] - The board will also consider the declaration of an interim dividend, if any [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何 部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 MILAN STATION HOLDINGS LIMITED 米蘭站控股有限公 司 （於開曼群島註冊成立的有限公司） （股份代號：1150） 董事會召開日期 米蘭站控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公佈，本公司 訂於二零二五年八月二十七日（星期三）舉行董事會會議，以（其中包括）批准本 公司及其附屬公司截至二零二五年六月三十日止六個月之中期業績公佈，及考慮 宣派中期股息（如有）。 承董事會命 香港，二零二五年八月十五日 米蘭站控股有限公司 於本公佈刊發日期，董事會成員包括執行董事胡博先生及季桂苹女士；及獨立非 執行董事陳志鴻先生、杜健存先生及蔡錦因先生。 執行董事 胡博 ...

| 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01150 | 說明 | 普通股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | HKD | | 0.04 | HKD | | 80,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.04 | HKD | | 80,000,000 | 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 米蘭站控股有限公司 呈交日期: 2025年8月5日 I. 法定/註冊股本變動 第 2 頁 ...

Financial Performance - Total revenue for the year decreased by approximately 35.2% to about HKD 111.9 million[20] - Gross profit was approximately HKD 8.3 million, a decrease of about 67.0% compared to the previous year[20] - Net loss for the year was approximately HKD 26.4 million, a reduction of about HKD 1.5 million from the previous year[20] - Gross margin decreased to 7.4% from 14.6% year-on-year[7] - Net loss margin worsened to (23.6)% from (16.2)% year-on-year[7] - Return on assets decreased to (25.4)% from (23.7)% year-on-year[7] - Return on equity decreased to (36.5)% from (32.9)% year-on-year[7] - Current ratio slightly decreased to 4.9 from 5.1[7] - Inventory turnover days increased to 150 days from 114 days[7] - Sales in Hong Kong decreased by 35.2% to approximately HKD 111.9 million during the reporting year[22] - Total revenue for the year decreased to approximately HKD 111.9 million, a decline of 35.1% compared to HKD 172.5 million last year[35] - Handbags accounted for over 98.3% of total revenue, with sales from unused products generating approximately HKD 81.9 million, representing 73.2% of total revenue[37] - The cost of sales for the year was approximately HKD 103.5 million, a decrease of 29.7% year-on-year[38] - Gross profit decreased by HKD 16.8 million to approximately HKD 8.3 million, with the gross profit margin dropping from 14.6% to 7.4%[39] - Other income for the year was approximately HKD 1.6 million, a decrease of HKD 2.2 million from HKD 3.8 million last year[44] - Selling expenses amounted to approximately HKD 21.6 million, representing 19.3% of total revenue, compared to 16.8% last year[46] - Administrative and other operating expenses were approximately HKD 13.8 million, a decrease of HKD 3.3 million year-on-year, accounting for 12.3% of revenue[47] - The company reported a loss attributable to owners of approximately HKD 26.4 million, down from HKD 27.9 million the previous year, with a loss per share of approximately HKD 0.0274[49] Assets and Liabilities - The fair value of financial assets held by the group as of December 31, 2024, was HKD 35.0 million, with a recognized fair value gain of approximately HKD 7.8 million and a gain from the sale of financial assets of approximately HKD 2.5 million[22] - The total amount of receivable loans as of December 31, 2024, was HKD 3.7 million, with an annual interest rate of 8%[28] - The expected credit loss provision for receivable loans was approximately HKD 11.0 million, an increase from HKD 10.2 million in the previous year[33] - Total inventory as of December 31, 2024, was HKD 37.8 million, down from HKD 47.5 million the previous year, with inventory turnover days increasing to 150 days from 114 days[40] - As of December 31, 2024, the group's cash and cash equivalents totaled approximately HKD 11.2 million, with total liabilities of approximately HKD 31.5 million and total equity of approximately HKD 72.2 million, compared to HKD 10.3 million, HKD 33.0 million, and HKD 84.8 million in 2023 respectively[51] - The group's debt-to-equity ratio, current ratio, and quick ratio as of December 31, 2024, were approximately 26.0%, 4.9, and 3.0 respectively, compared to 24.1%, 5.1, and 2.7 in 2023[51] Corporate Governance - The board is committed to maintaining high standards of corporate governance and has adopted the corporate governance code as per the listing rules[64] - The group emphasizes a healthy corporate culture aligned with its vision and business strategy[65] - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balance of governance[70] - During the reporting year, the board held five regular meetings, with all directors attending at least 4 out of 4 meetings[73] - Independent non-executive directors play a crucial role in providing impartial opinions on the group's strategy, performance, and monitoring, ensuring the interests of all shareholders are considered[76] - The company has implemented internal policies to ensure the board receives independent opinions and perspectives, which have been reviewed for effectiveness[78] - All independent non-executive directors confirmed their independence according to the criteria set out in the listing rules[76] - The company emphasizes employee development, workplace safety, diversity, and sustainability as part of its long-term growth strategy[67] - The board is responsible for leading and controlling the group, overseeing business strategies and performance[70] - The company has a flexible and prudent financial policy to effectively manage its assets and liabilities, enhancing its financial position[69] - The attendance record for the annual general meeting shows that independent non-executive directors attended 100% of the meetings, while executive directors had lower attendance[79] - The board has adopted a diversity policy, ensuring a balanced mix of skills, experience, and perspectives among its five members, including one female director[85] - The remuneration committee consists of three members, all of whom attended the only meeting held during the reporting year[90] - The company encourages continuous professional development for directors, requiring quarterly training records to be submitted[80] - The nomination committee is focused on identifying candidates with integrity and relevant qualifications to enhance board effectiveness[82] - The company aims to increase the proportion of female directors as part of its long-term strategy for gender diversity on the board[85] - The board's diversity policy includes considerations of gender, age, cultural background, and professional experience in candidate selection[83] - The remuneration policy is designed to provide competitive market salaries to attract and retain high-quality directors and senior management[86] - The company has implemented a structured onboarding training program for newly appointed directors to ensure they understand the company's operations and governance policies[80] - The Nomination Committee held one meeting during the reporting year, with all members present[93] - The Audit Committee conducted two meetings in the reporting year, with full attendance from all members[98] - The external auditor charged the company HKD 670,000 for audit services during the reporting year, with no non-audit services provided[101] - The company is committed to achieving board diversity, considering factors such as gender, age, culture, education background, and professional qualifications[92] Risk Management and Compliance - The company has established a risk management and internal control system, with independent consultants reviewing its effectiveness[108] - The Audit Committee reviewed the financial reporting procedures and internal control systems, providing recommendations to the board[96] - The company has implemented a policy for the training and continuous professional development of directors and senior management[109] - The board is responsible for ensuring compliance with applicable laws and regulations, as well as monitoring adherence to corporate governance policies[109] - The company has arranged insurance to indemnify directors and senior officers against costs and liabilities incurred in the execution of their duties[105] - The internal control consultant's risk management report, which includes risks, issues, and recommended actions, was submitted to the board for approval[108] - The company faces major risks including strategic, operational, and financial risks[166] - The company has maintained compliance with corporate governance codes, with some deviations noted[163] Shareholder Engagement and Transparency - The company actively engages with shareholders and investors through annual general meetings and special meetings, ensuring effective communication and transparency[115] - The company has a robust anti-corruption policy in place, demonstrating its commitment to ethical business practices and compliance with applicable laws[111] - The company has established a formal whistleblowing policy to encourage employees to report concerns without fear of retaliation, with no complaints regarding financial misconduct reported during the year[111] Financial Reporting and Audit - The independent auditor's report confirmed that the consolidated financial statements present a true and fair view of the group's financial position as of December 31, 2024[182] - Key audit matters identified included expected credit loss provisions, inventory valuation, and impairment assessments of property, plant, and equipment[184] - The company is responsible for preparing true and fair consolidated financial statements in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance[196] - The auditors aim to obtain reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[198] - The auditors identified and assessed risks of material misstatement in the consolidated financial statements and designed audit procedures to address these risks[199] - The company directors are responsible for evaluating the group's ability to continue as a going concern and disclosing relevant matters[196] - The auditors communicated significant audit findings and any material weaknesses in internal controls to the audit committee[200] - The company must ensure that the disclosures related to impairment reviews in the consolidated financial statements are adequate[194] - The auditors evaluated the appropriateness of accounting policies adopted by the company and the reasonableness of accounting estimates and related disclosures[199] Capital and Investments - The company reported a net proceeds of approximately HKD 13.7 million from the placement of 176,150,000 new shares at a price of HKD 0.08 per share, completed on July 16, 2024[127] - As of December 31, 2024, approximately HKD 9.4 million of the net proceeds has been utilized for general working capital, with HKD 4.3 million expected to be used in the first quarter of 2025[127] - The board has decided not to declare a final dividend for the year ending December 31, 2024, consistent with the previous year[125] - The company has entered into a lease agreement for retail space in Causeway Bay, with total lease payments amounting to HKD 7,920,000[158] - There were no significant related party transactions during the reporting year that would impact the company's operations[160] - The company did not purchase, sell, or redeem any of its listed securities during the year ending December 31, 2024[134] - The company has no outstanding share options available for grant as of December 31, 2024[152] - The total number of stock options granted as of December 31, 2024, is 71,192,200, with an exercise price of HKD 0.183 per share[153] Social Responsibility and Sustainability - The company’s environmental and social responsibility initiatives include energy-saving measures and promoting the use of eco-friendly products[126] - The group made no charitable donations during the reporting year, totaling zero HKD[137]

Financial Performance - For the year ending December 31, 2024, the revenue was approximately HKD 111.9 million, a decrease of 35.2% compared to approximately HKD 172.5 million for the year ending December 31, 2023[2]. - The gross profit for the year ending December 31, 2024, was approximately HKD 8.3 million, down 67.0% from approximately HKD 25.1 million for the year ending December 31, 2023[2]. - The loss attributable to owners of the company for the year ending December 31, 2024, was approximately HKD 26.4 million, a decrease of 5.5% from approximately HKD 27.9 million for the year ending December 31, 2023[2]. - The total comprehensive loss for the year was approximately HKD 26.3 million, compared to approximately HKD 27.9 million for the previous year[4]. - Basic and diluted loss per share for the year ending December 31, 2024, was HKD 2.74, compared to HKD 3.17 for the year ending December 31, 2023[4]. - Total revenue decreased by approximately 35.2% to about HKD 111.9 million for the reporting year, with gross profit declining by 67.0% to approximately HKD 8.3 million[35]. - Handbags accounted for over 98.3% of total revenue, with sales from unused products generating approximately HKD 81.9 million, representing 73.2% of total revenue[49]. - The company reported a loss attributable to owners of approximately HKD 26.4 million, down from HKD 27.9 million last year, with a loss per share of approximately HKD 0.0274[60]. Assets and Liabilities - Non-current assets decreased from approximately HKD 16.7 million in 2023 to approximately HKD 7.6 million in 2024[5]. - Current assets decreased from approximately HKD 101.1 million in 2023 to approximately HKD 96.1 million in 2024[5]. - The total equity attributable to owners of the company decreased from approximately HKD 84.8 million in 2023 to approximately HKD 72.2 million in 2024[6]. - Trade receivables increased to HKD 3.129 million in 2024 from HKD 2.280 million in 2023, with expected credit loss provisions rising to HKD 0.947 million from HKD 0.437 million[27]. - Trade payables increased to HKD 1.989 million in 2024 from HKD 1.452 million in 2023, while accrued liabilities rose to HKD 7.805 million from HKD 6.494 million[32]. - The total outstanding loans amount to approximately HKD 3.7 million, with an annual interest rate of 8%[42]. - The group has recognized expected credit loss provisions of approximately HKD 11.0 million for receivables, an increase from HKD 10.2 million in 2023, primarily due to limited debt repayments and rising default rates among borrowers[47]. Revenue Sources - Revenue for the year 2024 was HKD 111,855,000, a decrease of 35.1% compared to HKD 172,525,000 in 2023[17]. - Sales of handbags contributed HKD 109,931,000 in 2024, down 34.6% from HKD 168,285,000 in 2023[17]. - Other income for 2024 totaled HKD 1,592,000, a decline of 58.3% from HKD 3,823,000 in 2023[17]. - The cost of goods sold for 2024 was HKD 103,549,000, down 28.5% from HKD 144,604,000 in 2023[20]. - The total employee costs, including directors' remuneration, decreased to HKD 9,557,000 in 2024 from HKD 14,576,000 in 2023, a reduction of 34.4%[20]. - Sales cost for the year was approximately HKD 103.5 million, a decrease of 29.7% year-on-year[51]. - Other income for the year was approximately HKD 1.6 million, a decrease of about HKD 2.2 million from HKD 3.8 million last year[55]. Dividends and Shareholder Returns - The board of directors has resolved not to declare a final dividend for the year ending December 31, 2024[2]. - No dividends were declared or proposed for the reporting year, consistent with 2023[24]. - The board has resolved not to declare a final dividend for the reporting year[76]. Market and Economic Conditions - The unemployment rate in Hong Kong rose to 3.1% in December 2024, indicating a slight decline in the local labor market[34]. - The retail sales value in December 2024 was estimated at HKD 32.8 billion, a decrease of 11.5% compared to the same month in 2023[34]. - The outlook for the Hong Kong retail market is cautiously optimistic for 2025, supported by the return of tourists and government initiatives like consumption vouchers[48]. Corporate Governance and Compliance - The company has maintained compliance with all applicable provisions of the Corporate Governance Code, except for a minor deviation regarding the notice period for board meetings[73]. - The audit committee has reviewed the financial statements and discussed audit, risk management, and internal control matters with management[75]. - The company has no capital commitments related to the purchase of properties, plants, and equipment as of December 31, 2024[66]. - There have been no significant events after the reporting period up to the date of this announcement[77]. Investment Strategy - The group holds significant investments in financial assets at fair value, with total investments amounting to approximately HKD 22,762,000 as of December 31, 2024[40]. - The group has a passive investment strategy, maintaining a diversified portfolio to mitigate risks, with investments in China Investment Finance Group Limited (1.1% stake), Haowen Holdings Limited (4.8% stake), and Harbor Digital Industry Capital Limited (3.9% stake)[40]. - The company completed a placement of 176,150,000 new shares at a price of HKD 0.08 per share, raising approximately HKD 13.7 million net of expenses[72]. - The net proceeds from the placement have been allocated for general working capital, with HKD 9.4 million utilized and HKD 4.3 million expected to be used by Q1 2025[72]. Risk Management - The company applies a simplified approach to measure expected credit losses for trade receivables, using lifetime expected credit losses based on common credit risk characteristics[26]. - The group employs a comprehensive credit risk management policy, including independent credit assessments and monitoring of loan repayments[43]. - The expected credit loss assessment is based on a three-stage model, reflecting the ongoing economic challenges and potential impacts on borrowers' repayment capabilities[47]. - The company has not made any foreign exchange hedging arrangements and believes that the transaction risks are at an acceptable level[64].

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 63,159,000, a decrease of 36.8% compared to HKD 100,004,000 for the same period in 2023[5] - Gross profit for the period was HKD 4,054,000, down 76.2% from HKD 17,072,000 in the previous year[5] - Operating loss increased to HKD 20,780,000 from HKD 11,568,000, reflecting a significant decline in profitability[5] - The company reported a loss before tax of HKD 21,521,000, compared to a loss of HKD 12,034,000 in the same period last year[5] - The company recorded a comprehensive loss of HKD 21,205,000 for the period, compared to HKD 12,043,000 in the previous year[6] - Net loss for the period was approximately HKD 21.5 million, an increase of 79.2% year-on-year[38] - The loss attributable to the company's owners for the six months ended June 30, 2024, was approximately HKD 21.5 million, an increase of 79.2% compared to a loss of approximately HKD 12.0 million for the same period in 2023[51] Assets and Liabilities - Total assets decreased to HKD 79,338,000 from HKD 101,131,000, indicating a reduction in the company's asset base[7] - Current liabilities decreased slightly to HKD 20,609,000 from HKD 19,763,000, showing a stable short-term financial position[7] - Net assets decreased to HKD 63,613,000 from HKD 84,818,000, reflecting a decline in shareholder equity[7] - The company incurred lease liabilities of HKD 2.36 million as of June 30, 2024, down from HKD 3.60 million as of December 31, 2023[31] - The company’s total liabilities included trade payables of HKD 2,444,000, up from HKD 1,452,000 at the end of 2023[29] - As of June 30, 2024, the total cash and cash equivalents, total liabilities, and shareholders' equity were approximately HKD 9.1 million, HKD 35.4 million, and HKD 63.6 million, respectively[54] Cash Flow - The net cash flow from operating activities for the six months ended June 30, 2024, is HKD 3,402,000, a significant improvement compared to a cash outflow of HKD 10,766,000 for the same period in 2023[12] - The company reported a net cash outflow from financing activities of HKD 4,640,000 for the six months ended June 30, 2024, compared to an inflow of HKD 2,027,000 in the previous year[12] - The cash and cash equivalents at the end of the period decreased to HKD 9,098,000 from HKD 10,337,000 at the beginning of the period[12] Inventory and Sales - Inventory levels decreased to HKD 37,709,000 from HKD 47,501,000, indicating a reduction in stock on hand[7] - Sales of handbags accounted for HKD 62,558,000, down 35.0% from HKD 96,336,000 in the previous year[18] - Handbags accounted for over 99.1% of total revenue, with sales from unused products dropping from HKD 76.4 million (76.4% of total revenue) to HKD 47.6 million (75.3% of total revenue)[41] - The cost of sales was approximately HKD 59.1 million, a decrease of 28.7% compared to the previous year, aligning with the revenue decline[42] - Total inventory as of June 30, 2024, was approximately HKD 37.7 million, down from HKD 47.5 million as of December 31, 2023[44] Business Outlook and Strategy - The company has not provided specific guidance for future performance or new product developments in the report[4] - The outlook indicates that local consumer sentiment may improve due to government initiatives to stimulate the tourism and retail sectors, although uncertainties such as rising unemployment and geopolitical tensions may pose challenges[60] - The company plans to adopt a more prudent business policy to navigate unprecedented challenges while seeking opportunities in the luxury handbag and accessories trade[60] - The company continues to focus on its core business of retailing handbags and fashion accessories, with no significant changes in business nature reported during the period[13] Corporate Governance - The company has complied with all applicable provisions of the Corporate Governance Code during the reporting period, except for some board meeting notices being issued with less than 14 days' notice[68] - The Audit Committee has reviewed the financial statements for the six months ended June 30, 2024, discussing audit, risk management, internal control, and financial reporting matters[73] - The Remuneration Committee has established the remuneration policies for directors and senior management, providing recommendations to the board[74] - The Nomination Committee has been formed with a majority of independent non-executive directors[75] - The board has confirmed the effectiveness of the risk management and internal control systems during the reporting period[76] - The group has established a formal whistleblowing policy to encourage employees to raise concerns responsibly without fear of retaliation[76] Employee and Shareholder Information - As of June 30, 2024, the company had a total of 28 employees, down from 37 employees as of December 31, 2023[52] - The company did not declare or pay any dividends during the period, consistent with the previous year[24] - The board has decided not to declare any interim dividend for the six months ended June 30, 2024, consistent with the previous period where no dividend was declared[77]

Financial Performance - Total revenue decreased by approximately 26.1% to about HKD 172.5 million for the fiscal year[17] - Gross profit was approximately HKD 25.1 million, a decrease of 54.2% compared to the previous year[17] - Net loss for the year reduced to approximately HKD 27.9 million, a decrease of about HKD 45.2 million, primarily due to reduced administrative and selling expenses[17] - The gross margin decreased to 14.6% from 23.5% year-on-year[8] - The sales revenue in Hong Kong decreased by 26.1% to approximately HKD 172.5 million during the reporting year[19] - Total revenue for the year decreased to approximately HKD 172.5 million, a decline of 26.1% compared to HKD 233.3 million last year[35] - Handbags accounted for over 97.6% of total revenue, with sales from unused products generating approximately HKD 131.7 million, representing 76.3% of total revenue[37] - Sales cost for the year was approximately HKD 147.4 million, a decrease of 17.4% year-on-year[39] - Gross profit decreased by HKD 29.7 million to approximately HKD 25.1 million, with gross margin dropping from 23.5% to 14.6%[40] - Other income and gains for the year were approximately HKD 3.8 million, down from HKD 4.5 million last year[44] Market and Business Strategy - The company plans to expand its retail presence in local consumption malls in Hong Kong and focus on mid-range brand sales to enhance gross margin[12] - The company aims to diversify its business by developing the luxury watch trade market and expanding its e-commerce segment[12] - The company will continue to monitor market trends and adjust its strategies to create long-term value for shareholders[12] Financial Position and Assets - The fair value of financial assets measured at fair value through profit or loss was HKD 22.8 million as of December 31, 2023, with a recognized fair value loss of approximately HKD 2.2 million[19] - The total amount of receivable loans was HKD 5.8 million, with an annual interest rate of 8%[26] - The expected credit loss provision for receivable loans was approximately HKD 10.2 million, an increase from HKD 5.5 million in 2022[31] - The largest receivable loan was approximately HKD 1.9 million, with the top five receivable loans accounting for 73% of the total[26] - The group had no bank borrowings or significant contingent liabilities as of December 31, 2023[52][55] - The group has no capital commitments related to the purchase of properties, plants, and equipment as of December 31, 2023[56] - The group maintains a foreign exchange policy primarily in HKD and RMB, with no foreign exchange hedging arrangements in place[54] Corporate Governance - The board is committed to high standards of corporate governance and has adopted the corporate governance code as per the listing rules[66] - The board consists of five members, including two executive directors and three independent non-executive directors, with at least one independent director possessing professional and accounting qualifications[74] - The company has a clear code of conduct and anti-corruption policies, which are included in training materials for new employees[68] - The board is responsible for overseeing the company's business, strategic decisions, and performance, with a commitment to high standards of corporate governance[74] - All independent non-executive directors confirmed their independence according to the criteria set out in the listing rules, ensuring unbiased opinions in board decisions[79] Employee and Workplace Culture - The company emphasizes a culture of employee development, workplace safety, diversity, and sustainability, which is crucial for attracting and retaining top talent[69] - As of December 31, 2023, the group had a total of 37 employees, a decrease from 63 employees in 2022, with a gender ratio of approximately 32% male and 68% female[51] Audit and Risk Management - The audit committee reviewed the financial reporting procedures and internal control systems, providing recommendations to the board[101] - The external auditor charged the company HKD 670,000 for audit services, with no non-audit services provided[105] - The board confirmed the effectiveness of the risk management and internal control systems as of December 31, 2023[115] - The audit committee recommended the re-establishment of the internal audit department to enhance oversight[107] Shareholder and Investor Relations - The company has actively promoted investor relations and communication with existing and potential investors[120] - The company reported no final dividend for the year ending December 31, 2023, consistent with the previous year[131] - As of December 31, 2023, the company's distributable reserves amounted to approximately zero HKD, unchanged from the previous year[145] Environmental and Social Responsibility - The company has actively engaged in environmental and social responsibility initiatives, enhancing awareness among employees and stakeholders[132] Miscellaneous - The company has confirmed that there were no significant changes to its charter documents during the reporting year[124] - The company has not entered into any management or administrative contracts for the overall or any significant part of its business during the year ended December 31, 2023[159] - The company has not granted any share options during the reporting year, and the number of share options available for issuance remained unchanged[165]

Financial Performance - For the year ended December 31, 2023, revenue was approximately HKD 172.5 million, a decrease of 26.1% compared to approximately HKD 233.3 million for the year ended December 31, 2022[3]. - Gross profit for the year ended December 31, 2023, was approximately HKD 25.1 million, down 54.2% from approximately HKD 54.8 million for the previous year[3]. - The company's loss attributable to owners for the year ended December 31, 2023, was approximately HKD 27.9 million, a decrease of 39.2% compared to approximately HKD 45.9 million for the year ended December 31, 2022[3]. - Basic and diluted loss per share for the year ended December 31, 2023, was HKD 3.17, compared to HKD 6.07 for the previous year[5]. - The company reported an operating loss of approximately HKD 26.8 million for the year ended December 31, 2023, compared to an operating loss of approximately HKD 43.9 million for the previous year[4]. - Total revenue decreased by approximately 26.1% to about HKD 172.5 million for the reporting year[41]. - Gross profit was approximately HKD 25.1 million, a decrease of 54.2% compared to the previous year[41]. - Net loss for the year was approximately HKD 27.9 million, a reduction of about HKD 45.2 million from the previous year's loss[41]. Dividend and Equity - The board of directors decided not to declare a final dividend for the year ended December 31, 2023[3]. - The company did not declare or recommend any dividends for the year ended December 31, 2023[27]. - The total equity attributable to owners decreased to HKD 84.8 million as of December 31, 2023, from HKD 112.7 million in the previous year[8]. Assets and Liabilities - Total assets less current liabilities amounted to HKD 98.1 million as of December 31, 2023, down from HKD 120.2 million in the previous year[7]. - The company's cash and bank balances decreased to HKD 10.3 million as of December 31, 2023, from HKD 18.5 million a year earlier[7]. - Trade receivables amounted to HKD 2.28 million, down from HKD 8.72 million in the previous year[31]. - The total amount of receivable loans was HKD 5.8 million, with an annual interest rate of 8%[51]. - The expected credit loss provision for receivable loans was approximately HKD 10.2 million, an increase from HKD 5.5 million in 2022[56]. - The group's cash and cash equivalents totaled approximately HKD 10.3 million, liabilities amounted to approximately HKD 33.0 million, and total equity was approximately HKD 84.8 million, compared to HKD 18.5 million, HKD 27.9 million, and HKD 112.7 million respectively in 2022[72]. Sales and Revenue Breakdown - Sales of handbags contributed HKD 168,285,000, down from HKD 187,740,000 in the previous year, representing a decline of approximately 10%[22]. - Sales of natural fragrances, skincare products, and fashion accessories dropped significantly to HKD 4,240,000 from HKD 45,540,000, a decrease of about 91%[22]. - Handbags accounted for over 97.6% of total revenue, with sales from unused products generating approximately HKD 131.7 million, representing 76.3% of total revenue[59]. Expenses - Sales expenses for the year ended December 31, 2023, were approximately HKD 28.9 million, a decrease of 39.9% from approximately HKD 48.1 million in the previous year[3]. - Administrative and other operating expenses were approximately HKD 17.1 million, a decrease of about HKD 12.6 million year-on-year, accounting for 9.9% of revenue[68]. - Financing costs reached approximately HKD 1.3 million, an increase of HKD 0.3 million compared to the previous year[69]. Market and Economic Conditions - The estimated retail sales value in December 2023 was HKD 36.3 billion, an increase of 7.8% compared to December 2022[40]. - The unemployment rate in December 2023 was 2.9%, indicating an improvement in the local labor market[40]. Governance and Compliance - The group has adopted the corporate governance code and has complied with all applicable provisions during the reporting year, except for a few instances of short notice for board meetings[83]. - The board of directors includes executive directors and independent non-executive directors, ensuring a diverse governance structure[89]. - The company is focused on maintaining compliance with the Hong Kong Stock Exchange regulations[89]. Future Outlook - The company aims to enhance capital utilization and generate additional investment returns from idle funds[44]. - The company has maintained a prudent investment approach due to recent volatility in the Hong Kong financial market[44]. - The report will include detailed financial data and performance metrics for the fiscal year[89].