Financial Performance - Gross profit margin increased to 24.1% in 2020 from 20.6% in 2019[16] - Net loss margin improved to (1.8)% in 2020 compared to (10.3)% in 2019[16] - The group's total revenue decreased by approximately 24.0% to about HKD 176.0 million for the year[26] - The group's gross profit was approximately HKD 42.5 million, a decrease of 11.1% compared to the previous year[26] - The net loss for the year decreased by 86.6% to HKD 3.2 million, attributed to reduced depreciation of right-of-use assets and effective cost control measures[26] - Total revenue decreased to approximately HKD 176.0 million, a 24.0% decline from HKD 231.6 million last year[35] - Handbags accounted for over 83.6% of total revenue, with sales of HKD 147.1 million, down 27.0% from HKD 201.4 million[37] - Revenue from the Hong Kong market fell by 20.5% to approximately HKD 172.5 million, primarily from five "Milan Station" retail stores and eight "THANN" retail stores[28] Liquidity and Financial Stability - Current ratio rose to 3.2 in 2020 from 2.1 in 2019, indicating better liquidity[16] - The asset-liability ratio decreased to 19% in 2020 from 29.2% in 2019, reflecting improved financial stability[16] - The company's debt-to-equity ratio, current ratio, and quick ratio as of December 31, 2020, were approximately 19%, 3.2, and 2.3, respectively, compared to 29.2%, 2.1, and 1.0 as of December 31, 2019[51] - As of December 31, 2020, the total cash and cash equivalents, total liabilities, and total equity were approximately HKD 67.6 million, HKD 53.4 million, and HKD 113.3 million, respectively, compared to approximately HKD 8.4 million, HKD 41.2 million, and HKD 61.4 million as of December 31, 2019[51] Market Conditions - The retail market in Hong Kong is expected to remain challenging in 2021 due to ongoing travel restrictions[20] - Future recovery of the local economy is contingent on the pandemic's development and vaccination outcomes[20] - The retail market in Hong Kong experienced a significant decline, with total retail sales value estimated at HKD 326.5 billion for the year, down 24.3% year-on-year[24] - The unemployment rate in Hong Kong surged to 6.6% in the fourth quarter, the highest in 16 years, with an annual average of 5.9%[25] - The Macau market revenue decreased by 76.0% to approximately HKD 3.5 million, reflecting the impact of the pandemic on tourism[30] Inventory Management - Inventory turnover days increased to 107 days in 2020 from 81 days in 2019, indicating slower inventory movement[16] - Total inventory as of December 31, 2020, was HKD 37.8 million, down from HKD 41.0 million in 2019, with inventory turnover days increasing to 107 days from 81 days[41] Corporate Governance - The board of directors has adopted the corporate governance code as part of its governance practices[64] - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balance of skills and experience[68] - The company aims to comply with corporate governance codes, including timely notifications for board meetings[69] - The board's meeting records are properly documented and made available for review by all directors[72] - 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 review period[105] Risk Management - Major risks faced by the company include strategic, operational, and financial risks[192] - The company regularly reviews its operations to mitigate risks related to fraud, errors, omissions, and compliance issues[194] - The board confirmed the effectiveness of the risk management and internal control systems as of December 31, 2020, ensuring that significant risks are managed to an acceptable level[105] Future Plans - The company plans to open new retail stores in favorable locations with lower rents[20] - The company will continue to monitor market trends and adjust its retail store portfolio accordingly[19] - The company aims to enhance capital utilization of idle funds to generate additional investment returns[20] - The company plans to continue exploring opportunities for acquisitions to enhance its brand portfolio and attract more potential customers[22] Employee and Management Information - The total number of employees as of December 31, 2020, was 61, down from 68 in 2019[50] - The remuneration committee consists of three members, primarily independent non-executive directors, and held two meetings during the reporting year[83] - As of December 31, 2020, three senior management members received annual compensation of up to HKD 1,000,000, while one member received between HKD 1,000,001 and HKD 3,000,000[85] Shareholder Information - The company has a shareholder communication policy in place to facilitate engagement with shareholders and potential investors[107] - The company has maintained at least 25% of its issued share capital held by the public as of the report date[183] - The company has not declared a final dividend for the year ended December 31, 2020, consistent with the previous year[134] - The company has adopted a dividend policy, allowing for the declaration and distribution of dividends at the discretion of the board of directors, subject to shareholder approval[196] Audit and Compliance - The audit committee, established in April 2011, reviewed the financial reporting processes and internal controls, holding two meetings in the reporting year[92] - The company paid HKD 738,000 for audit services and HKD 162,000 for non-audit services to its auditor during the reporting year[97] - The company reported a total of HKD 900,000 in fees for audit and non-audit services, with HKD 738,000 for annual audit services and HKD 162,000 for tax services[98]

米 商 站 控 股 公 有 kifi 司 MILAN STATION HOLDINGS LIMITED (Incorporated in Cayman Islands with limited liability) -中期報告 INTERIM REPORT EXIT Stock Code: 1150 目錄 米蘭站控股有限公司 中期報告 2020 頁次 公司資料 2 | --- | |------------------------------| | | | 簡明綜合損益表 | | 簡明綜合損益及其他全面收益表 | | 簡明綜合財務狀況表 | | 簡明綜合權益變動表 | | 簡明綜合現金流量表 | | 簡明綜合中期財務報表附註 | | 管理層討論與分析 | | 其他資料 | 4 5 6 7 8 9 18 25 1 公司資料 米蘭站控股有限公司 中期報告 2020 | --- | --- | --- | |-------------------------------|--------------------------------|----------| | | | 公司資料 | | 董事會 | 核數師 | | ...

Financial Performance - Gross profit margin increased to 20.6% in 2019 from 19.5% in 2018[22] - Net loss margin improved to (10.3)% in 2019 compared to (15.1)% in 2018[22] - Return on assets was (23.5)% in 2019, an improvement from (34.8)% in 2018[22] - Return on equity improved to (39.4)% in 2019 from (49.8)% in 2018[22] - In 2019, the total revenue of Milan Station Holdings Limited decreased by approximately 12.4% to about HKD 231.6 million[33] - The gross profit for the year was approximately HKD 47.8 million, a decrease of 7.4% compared to the previous year[33] - The net loss for the year reduced by 40.1% to HKD 23.9 million, primarily due to the closure of unprofitable stores[33] - Total revenue decreased to approximately HKD 231.6 million, a decline of 12.4% compared to HKD 264.3 million last year[42] - Handbags accounted for over 87% of total revenue, with sales of HKD 201.4 million, down 16.5% from HKD 241.1 million[45] - Revenue from the Hong Kong market was approximately HKD 217 million, representing 93.7% of total revenue, down 13.3% from HKD 250.2 million[45] - The cost of sales for the year was approximately HKD 183.8 million, a decrease of 13.6% year-on-year[47] - Gross profit decreased by HKD 3.8 million to approximately HKD 47.8 million, with a slight increase in gross margin from 19.5% to 20.6%[48] Liquidity and Financial Ratios - Current ratio decreased to 2.1 in 2019 from 3.3 in 2018[22] - Quick ratio decreased to 1.0 in 2019 from 1.9 in 2018[22] - Debt to equity ratio increased to 29.2% in 2019 from 7.8% in 2018[22] - The group's asset-liability ratio, current ratio, and quick ratio as of December 31, 2019, were approximately 29.2%, 2.1, and 1.0, respectively[60] Market Conditions and Business Strategy - The company plans to enhance core business and seek profitable opportunities amid market uncertainties[26] - The ongoing U.S.-China trade tensions and local social events are expected to impact the economic outlook for 2020[26] - The company plans to continue expanding its retail presence in Hong Kong and explore opportunities for acquisitions to enhance its brand portfolio[31] - The company will maintain a cautious investment approach in light of recent market volatility and aim to improve capital utilization[35] - The management aims to enhance core business and seek better growth prospects while controlling costs and reviewing retail strategies[41] - The mid-term outlook for Hong Kong's economy remains optimistic, supported by national policies such as the Belt and Road Initiative and the Greater Bay Area development[40] Retail Performance - Sales in Hong Kong decreased by 13.3% to approximately HKD 217 million, driven by six "Milan Station" retail stores and seven "THANN" retail stores[35] - The total retail sales value in December 2019 was estimated at HKD 36.2 billion, down 19.4% compared to December 2018[31] - The total retail sales value for the entire year of 2019 was estimated at HKD 431.2 billion, a decline of 11.1% year-on-year[31] - The number of mainland Chinese tourists visiting Hong Kong decreased by 14.2% in 2019, with same-day visitors down 11.5% and overnight visitors down 18.5%[32] - The Macau market revenue increased by 3.5% to approximately HKD 14.6 million during the year[37] Corporate Governance - The board of directors 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 as required by the listing rules[77] - The company has complied with all applicable provisions of the corporate governance code during the reporting year, except as disclosed[74] - The board is responsible for leading and controlling the group, overseeing business strategies and performance[77] - The company has adopted a board diversity policy to ensure a balance of skills, experience, and perspectives among board members[88] - The company emphasizes the importance of maintaining high ethical standards and professional experience among board members[87] Audit and Risk Management - The audit committee reviewed the financial reporting procedures and internal control systems, holding two meetings during the reporting year[105] - The audit committee recommended the re-establishment of the internal audit department to the board[105] - The board confirmed the effectiveness of the risk management and internal control systems as of December 31, 2019[116] - The audit committee has reviewed the financial statements for the year ended December 31, 2019, and discussed audit, internal control, financial reporting, and risk management with management[198] Employee and Director Information - The group employed a total of 68 employees as of December 31, 2019, compared to 67 employees in 2018[59] - The company encourages directors to participate in continuous professional development, with training records maintained to assist in tracking participation[85] - As of December 31, 2019, there were 2 senior management members with annual compensation below HKD 1,000,000, and 1 member with compensation between HKD 1,000,001 and HKD 3,000,000[93] Shareholder and Financial Policies - The company has adopted a dividend policy, with any proposed dividends subject to the board's discretion and shareholder approval[192] - The company’s main business remains investment holding, with no significant changes during the year[125] - The company has a shareholder communication policy to ensure effective engagement with investors[118] - The company confirms compliance with the Listing Rules regarding continuing connected transactions, ensuring they are conducted in the ordinary course of business[174] Environmental and Social Responsibility - The company has implemented various energy-saving and waste-reduction measures to address environmental and social responsibilities[183]

Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 136,910,000, a decrease of 3% from HKD 141,309,000 in the same period of 2018[10] - Gross profit for the same period was HKD 27,346,000, down 10% from HKD 30,357,000 year-on-year[10] - The net loss for the period was HKD 8,797,000, compared to a net loss of HKD 15,290,000 in the previous year, indicating an improvement of 42%[10] - Basic and diluted loss per share was HKD 1.1 cents, an improvement from HKD 1.9 cents in the same period of 2018[10] - The comprehensive income for the period was a loss of HKD 8,743 thousand, reflecting a significant decline compared to the previous year's loss of HKD 15,200 thousand[22] - The company reported a basic loss attributable to owners of HKD 8,743,000 for the period, compared to a loss of HKD 15,200,000 for the same period last year[62] - Loss for the period decreased by 42.5% to HKD 8.8 million due to effective cost control and reduced selling expenses[88] Assets and Liabilities - Non-current assets totaled HKD 28,722,000 as of June 30, 2019, compared to HKD 15,556,000 at the end of 2018, reflecting a significant increase[17] - Current assets decreased to HKD 91,648,000 from HKD 99,142,000 at the end of 2018, a decline of approximately 7.5%[17] - Total liabilities increased to HKD 38,393,000 from HKD 30,096,000 at the end of 2018, representing a rise of about 27%[17] - The company's equity attributable to owners was HKD 76,199,000, down from HKD 80,547,000 at the end of 2018, indicating a decrease of approximately 5.5%[17] - The company's total equity as of June 30, 2019, was HKD 75,902 thousand, down from HKD 119,870 thousand in 2018[22] Cash Flow - The net cash flow from operating activities for the six months ended June 30, 2019, was HKD 8,982 thousand, compared to a net cash outflow of HKD 7,703 thousand in the same period of 2018[26] - The net cash flow used in investing activities was HKD 594 thousand for the six months ended June 30, 2019, down from HKD 3,472 thousand in 2018[26] - The net cash flow used in financing activities increased significantly to HKD 16,614 thousand in 2019 from HKD 1,689 thousand in 2018[26] - The total cash and cash equivalents decreased by HKD 8,226 thousand, resulting in a closing balance of HKD 14,328 thousand as of June 30, 2019, compared to HKD 24,694 thousand in 2018[26] - The company's cash and cash equivalents decreased to HKD 14,328,000 from HKD 22,554,000[81] Expenses - The company reported a decrease in selling expenses to HKD 11,252,000 from HKD 16,715,000, a reduction of about 32%[10] - Administrative and other operating expenses were reduced to HKD 22,605,000 from HKD 26,785,000, showing a decrease of approximately 16%[10] - Employee benefits expenses (excluding directors' remuneration) for the six months ended June 30, 2019, totaled HKD 7,037,000, down from HKD 13,425,000 in 2018, representing a decrease of 47.5%[57] - Sales expenses for the six months ended June 30, 2019, were approximately HKD 11.3 million, accounting for 8.2% of revenue, down from HKD 16.7 million and 11.8% in the same period of 2018[109] - Administrative and other operating expenses for the same period were approximately HKD 22.6 million, representing 16.5% of revenue, a decrease of about HKD 4.2 million from the previous year[110] Market Performance - Revenue from external customers for the six months ended June 30, 2019, was HKD 136,909,000, a decrease of 3.1% from HKD 141,309,000 for the same period in 2018[49] - Revenue from the Hong Kong market was approximately HKD 131.2 million, accounting for 95.8% of total revenue, down 5.9% year-on-year[95] - Revenue from the Macau market increased significantly by 216.7% to approximately HKD 5.7 million[94] - Sales of handbags, the most important product category, accounted for over 84.2% of total revenue, with handbag sales decreasing by 10.6% to HKD 115.3 million[95] Inventory and Capital Expenditure - Inventory as of June 30, 2019, was approximately HKD 42.9 million, up from HKD 40.5 million as of December 31, 2018[103] - The group’s capital expenditure for the six months ended June 30, 2019, was HKD 604,000, a decrease from HKD 5,471,000 in the same period of 2018[49] - The group acquired property, plant, and equipment amounting to approximately HKD 604,000, a significant decrease from HKD 5,471,000 in the same period last year[64] Governance and Compliance - The company has complied with all applicable provisions of the Corporate Governance Code during the reporting period, except for a few instances where board meeting notices were issued with less than 14 days' notice[142] - The company has established an Audit Committee consisting of three independent non-executive directors to review financial statements and discuss audit and risk management matters[146] - The company has a Compensation Committee that formulates and reviews the remuneration policies for directors and senior management[147] - The company has a Nomination Committee composed of three members, primarily independent non-executive directors, to oversee the nomination process[148] - The board confirmed the effectiveness of the risk management and internal control systems, ensuring that significant risks are managed to an acceptable level[149] Future Outlook - The company maintains a cautious outlook for the second half of 2019 due to negative economic growth trends and a declining retail market in Hong Kong[129] - Management plans to focus on cost control, adopting new business models, and reviewing retail strategies to enhance growth prospects[130]

米蘭站控股有限公司 MILAN STATION HOLDINGS LIMITED (Incorporated in Cayman Islands with limited liability) Stock Code: 1150 目錄 米蘭站控股有限公司 二零一八年年報 頁次 公司資料 2 | --- | |----------------------| | | | | | 財務摘要 | | 董事報告 | | 管理層討論與分析 | | 履歷詳情 | | 企業管治報告 | | 董事會報告 | | 獨立核數師報告 | | 綜合： | | 損益表 | | 損益及其他全面收益表 | | 財務狀況表 | | 權益變動表 | | 現金流量表 | | 財務報表附註 | | 五年財務摘要 | 4 5 7 16 18 28 39 46 47 48 49 51 53 128 1 審核委員會 薪酬委員會 公司資料 米蘭站控股有限公司 二零一八年年報 董事會 執行董事 曹慧娟女士 胡博先生 獨立非執行董事 陳志鴻先生 杜健存先生 蔡錦因先生 杜健存先生（審核委員會主席） 陳志鴻先生 蔡錦因先生 杜健存先生（薪酬委員會主席） 陳志鴻先生 ...