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 ...