Retail Outlets and Market Presence - As of December 31, 2023, the Group had a total of 1,007 retail outlets, including 840 concessionary counters and 167 retail shops in Mainland China, Hong Kong, and Macau[5]. - The Group experienced a net decrease of 77 retail outlets, retaining 1,007 outlets with better sales efficiency across key provinces and cities in China[33]. - The Group's market expansion strategy includes a presence in all major cities such as Beijing, Shanghai, and Guangzhou, enhancing market penetration[4]. - The share of sales from the Chinese Mainland was 96.7% in 2023, slightly up from 96.5% in 2022[8]. Financial Performance - The Group's revenue for the year ended December 31, 2023, was 1,652.4 million, compared to 1,334.3 million in 2022, representing a significant increase[10]. - For the year ended December 31, 2023, the Group's revenue was HK$1,281,753,000, a decrease of 3.94% from HK$1,334,269,000 in the previous year[48]. - The gross profit for the year ended December 31, 2023, was 1,281.8 million, up from 1,182.5 million in 2022[12]. - The gross profit margin decreased by 45 basis points to 74.59%[48]. - Loss attributable to owners of the Company amounted to approximately HK$72,168,000, compared to a loss of HK$51,239,000 in the previous year[48]. - Revenue from retail sales was HK$875,508,000, accounting for 68.31% of total revenue, remaining stable compared to the prior year[78][80]. - Online sales revenue decreased by 10.4% to HK$368,648,000, representing 28.76% of total revenue, as consumers shifted to offline consumption[78][80]. Sales Channels and Product Categories - Concessionary counters accounted for 59.3% of total sales in 2023, an increase from 56.7% in 2022[7]. - Internet and wholesale sales represented 31.5% of total sales in 2023, down from 33.7% in 2022[7]. - Lingerie sales comprised 85.4% of total sales in 2023, compared to 85.0% in 2022[9]. - EMBRY FORM and FANDECIE contributed 55.32% and 15.98% to total revenue, with EMBRY FORM's revenue increasing by 1.71% to HK$709,065,000, while FANDECIE's revenue decreased by 19.43% to HK$204,761,000[83][86]. Strategic Initiatives and Future Outlook - The Group plans to adopt a prudent approach, focusing on product designs, production technology, and marketing strategies to align with changing consumer preferences towards quality and sustainability[38]. - Looking ahead to 2024, the Group maintains a conservative outlook on the overall economic situation in China, predicting limited growth in the underwear industry[35]. - The Group aims to leverage its self-production and self-distribution model to enhance production and logistics efficiency while optimizing its supply chain[38]. - The Group will continue to implement a multi-brand strategy and actively explore different market segments to drive overall industry growth[119]. Sustainability and Innovation - The Group launched environmentally friendly product series to align with China's carbon neutrality goals[55]. - The Group launched a new series of environmentally friendly underwear products, "Heart of the Ocean," using bio-based materials, reducing petroleum by-products and associated carbon emissions[66]. - The Group's commitment to sustainable development includes using degradable packaging materials to reduce environmental pollution[71]. - The Group plans to enhance product development for online shopping and strengthen cooperation with low-carbon material suppliers in 2024[118]. Corporate Governance and Leadership - The Company emphasizes good corporate governance as essential for effective management and sustainable business growth[156]. - The Board has adopted the Corporate Governance Code and complied with all applicable provisions during the review period ending December 31, 2023[158]. - The Company has a diverse board with members having extensive experience in finance, law, and academia, enhancing its strategic decision-making capabilities[146]. - The current Board consists of four Executive Directors and four Independent Non-Executive Directors, ensuring a balance of skills and experience[171]. Employee Engagement and Training - The Group emphasizes the importance of employee training and welfare to enhance operational efficiency and mitigate cost pressures[75]. - The total staff cost for the year was HK$455,603,000, a decrease from HK$464,669,000 in the prior year[76][79]. Awards and Recognition - The Group received multiple awards for excellence in product quality and service, including recognition as a leading entity in standardization work in 2023[129]. - Embry Holdings Limited's subsidiary, Embry (Changzhou) Garments Ltd., was recognized as a Green Factory by the Jiangsu Provincial Department of Industry and Information Technology[131]. - The company has been awarded the title of Top 100 Enterprises in the Chinese garment industry by the China Garment Association for the year 2022[131].

Financial Performance - Total revenue for the year ended December 31, 2023, was approximately HKD 1,281.8 million, a decrease of about 3.9% compared to HKD 1,334.3 million for the year ended December 31, 2022[4] - Gross profit for the same period was approximately HKD 956.1 million, down 4.5% from HKD 1,001.2 million in the previous year[4] - The loss attributable to the owners of the company was approximately HKD 72.2 million, an increase of about 40.8% compared to a loss of HKD 51.2 million in the prior year[4] - Basic loss per share was approximately HKD 0.1708, an increase of HKD 0.0495 from HKD 0.1213 in the previous year[4] - The company reported a total comprehensive loss attributable to owners of approximately HKD 114.36 million for the year, compared to HKD 244.90 million in the previous year[7] - The company reported a pre-tax loss of HKD 72,168,000 for 2023, compared to a loss of HKD 51,239,000 in 2022, indicating a worsening of 40.9%[23] - Basic loss per share for 2023 was HKD 17.08, compared to HKD 12.13 in 2022, reflecting an increase in loss per share of 40.5%[23] - The loss attributable to the company's owners was approximately HKD 72,168,000, compared to a loss of HKD 51,239,000 in the previous year[30] Assets and Liabilities - Total non-current assets as of December 31, 2023, were approximately HKD 2,002.96 million, a slight decrease from HKD 2,030.07 million in 2022[9] - Current assets totaled approximately HKD 859.51 million, down from HKD 946.73 million in the previous year[9] - Current liabilities increased to approximately HKD 359.01 million from HKD 265.14 million in 2022[9] - The net asset value of the company was approximately HKD 2,158.38 million, down from HKD 2,272.33 million in the previous year[9] - Total non-current assets decreased to HKD 1,904,461,000 in 2023 from HKD 1,955,532,000 in 2022, a reduction of 2.6%[15] - The total accounts receivable as of the reporting date was HKD 45,204,000, down from HKD 47,443,000 in the previous year[12] - The total accounts payable increased to HKD 69,124,000 from HKD 39,028,000 in the previous year, indicating a significant rise in liabilities[25] - As of December 31, 2023, the company's cash and cash equivalents were approximately HKD 283,610,000, down from HKD 380,178,000 in 2022, while interest-bearing bank borrowings decreased to HKD 288,312,000 from HKD 327,472,000[52] - The company's debt ratio was approximately 13.4% as of December 31, 2023, a slight decrease from 14.4% in 2022[52] Dividends - The company did not recommend the payment of a final dividend for the year ended December 31, 2023[4] - The company did not declare a final dividend for the year ending December 31, 2023[21] - The company did not recommend a final dividend due to the uncertain economic outlook, aiming to preserve cash for long-term financial strength[30] - The board of directors resolved not to declare a final dividend for the year ended December 31, 2023[64] Revenue Breakdown - Retail revenue amounted to HKD 875,508,000, remaining stable year-on-year, accounting for 68.31% of total revenue[43] - Online sales decreased by 10.4% to HKD 368,648,000, representing 28.76% of total revenue, attributed to a shift towards offline consumption as pandemic restrictions eased[43] - The flagship brand, Anlifang, generated revenue of HKD 709,065,000, an increase of 1.71%, while the younger brand, Fendi, saw a decline of 19.43% to HKD 204,761,000[45] - The group's revenue for the year was HKD 1,281,753,000, a decrease of 3.94% compared to the previous year, primarily due to the depreciation of the RMB[43] Operating Expenses and Costs - Operating expenses increased by 2.58% to HKD 881,430,000, accounting for 68.77% of total revenue, due to increased investment in sales and marketing[49] - Employee costs totaled HKD 455,603,000, a decrease from HKD 464,669,000 in the previous year, with the number of employees at approximately 4,390[42] - The company incurred financing costs of HKD 19,959,000 in 2023, an increase of 63.5% from HKD 12,175,000 in 2022[17] Strategic Initiatives - The group plans to enhance brand promotion and marketing strategies, including collaborations with influencers and increased online presence[33] - The company is focusing on sustainable development by launching eco-friendly product lines and promoting environmental awareness through various campaigns[34] - The group launched several new product lines, including the "Rose Garden" and "Ultimate Black Label" from Anlifang, and the "Vintage Archives" from Fendi, among others[38] - The group emphasized green and eco-friendly practices, launching the "Ocean Heart" series made from bio-based materials to reduce reliance on petroleum by-products[39] - In 2024, the company plans to enhance product development for online shopping, improve product adaptability, and strengthen partnerships with low-carbon material suppliers to develop eco-friendly products[61] - The company will continue to implement a multi-brand strategy to explore different market segments and adjust offline store numbers to save costs while expanding online sales channels[61] Economic Outlook - The overall economic recovery has been slower than expected, impacting retail consumption and consumer confidence[29] - The company anticipates limited growth in the overall lingerie industry in 2024, with a cautious outlook on the domestic economy due to ongoing geopolitical tensions and weak international trade[60] Compliance and Reporting - The company has maintained compliance with the corporate governance code throughout the reporting period[67] - The independent auditor, Ernst & Young, confirmed that the financial figures in the preliminary performance announcement align with the consolidated financial statements for the year ending December 31, 2023[70] - The 2023 annual report will include all information required by the listing rules and will be sent to shareholders at an appropriate time[72]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 709,590,000, a decrease of 4.4% compared to HKD 742,529,000 in the same period of 2022[7]. - Gross profit for the same period was HKD 528,262,000, down from HKD 563,651,000, reflecting a gross margin of approximately 74.4%[7]. - Net profit attributable to the owners of the company was HKD 5,367,000, significantly up from HKD 1,116,000 in the previous year, representing a year-on-year increase of 382.5%[7]. - Basic earnings per share increased to HKD 1.27 from HKD 0.26, indicating strong profitability growth[7]. - The company reported a total comprehensive income of HKD (93,417) thousand for the six months ended June 30, 2023, compared to HKD (84,426) thousand for the same period in 2022, indicating a worsening of approximately 10.5%[15]. - The company reported a profit of HKD 5,367 thousand for the six months ended June 30, 2023, compared to HKD 1,116 thousand for the same period in 2022, indicating a significant increase in profitability[15]. Assets and Liabilities - Total non-current assets as of June 30, 2023, were valued at HKD 1,936,136,000, a decrease from HKD 2,030,074,000 at the end of 2022[10]. - Current assets totaled HKD 912,713,000, down from HKD 946,731,000, with cash and cash equivalents at HKD 386,093,000[10]. - As of June 30, 2023, the company's total non-current liabilities decreased to HKD 396,635 thousand from HKD 439,334 thousand as of December 31, 2022, representing a reduction of approximately 9.7%[11]. - The net asset value as of June 30, 2023, was HKD 2,179,126 thousand, down from HKD 2,272,332 thousand at the end of 2022, indicating a decline of about 4.1%[11]. - The company's equity attributable to owners decreased to HKD 2,174,902 thousand as of June 30, 2023, from HKD 2,268,108 thousand at the end of 2022, a decline of about 4.1%[13]. Cash Flow and Financing - The net cash flow from operating activities for the six months ended June 30, 2023, was HKD 90,796 thousand, compared to HKD 102,874 thousand for the same period in 2022, reflecting a decrease of approximately 11.7%[17]. - The company incurred a net cash outflow from investing activities of HKD 11,971 thousand for the six months ended June 30, 2023, compared to HKD 2,163 thousand in the same period of 2022, representing a significant increase in cash outflow[17]. - The company repaid bank loans totaling HKD 12,959 thousand during the six months ended June 30, 2023, compared to HKD 19,010 thousand in the same period of 2022, showing a decrease of approximately 31.5%[17]. - Financing costs increased to HKD 9,291,000 from HKD 4,453,000, reflecting higher borrowing costs[7]. - The company's bank loans as of June 30, 2023, amounted to HKD 314,513,000, a decrease from HKD 327,472,000 at the end of 2022, showing a reduction of 3.9%[46]. Revenue Breakdown - Revenue from retail stores was HKD 63,636,000, down 5.4% from HKD 67,447,000 in the previous year[24]. - Online sales and wholesale revenue decreased by 7.7% to HKD 225,098,000 from HKD 243,749,000[24]. - Revenue from the mainland China market was HKD 686,772,000, a decline of 4.5% from HKD 719,556,000 in 2022[26]. - Revenue from retail amounted to HKD 482,731,000, representing 68.03% of total revenue, with a decrease of 2.51% compared to the previous period[67]. - Online sales recorded a decline of 6.96% to HKD 206,064,000, accounting for 29.04% of total revenue[67]. Market and Operational Strategy - The company is focusing on enhancing operational efficiency and exploring new market opportunities to drive future growth[5]. - The company continues to leverage its multi-brand strategy, adjusting marketing arrangements for seven brands to meet market demands and enhance competitiveness[57]. - The company plans to enhance its online retail market share and optimize sales network efficiency in response to changing consumer behaviors post-pandemic[85]. - The company will continue to monitor market trends and adjust its business strategies to meet consumer demands for quality and sustainable consumption[85]. - The overall economic recovery in China remains unstable, with GDP growth of 5.5% in the first half of 2023, but consumer demand growth lacks momentum[54]. Management and Governance - The board decided not to declare an interim dividend due to the uncertain economic outlook, aiming to retain cash for long-term financial strength[55]. - The company has complied with all applicable code provisions of the Corporate Governance Code during the period[106]. - The independent review report indicates that the financial statements were prepared in accordance with Hong Kong Accounting Standards, specifically HKAS 34[109]. - The independent auditor did not identify any matters that would lead to a belief that the financial statements were not prepared in all material respects according to HKAS 34[112].

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告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 EMBRY HOLDINGS LIMITED 安莉芳控股有限公司 (於開曼群島註冊成立的有限公司) (股份代號: 1388) 公佈截至二零二三年六月三十日止六個月中期業績 業績摘要 截至六月三十日止六個月 2023 2022 變動 (千港元) (千港元) 收益 709,590 742,529 -4.44% 毛利 528,262 563,651 -6.28% 毛利率 74.45% 75.91% -1.46百分點 本公司擁有人應佔期內溢利 5,367 1,116 +380.91% 淨利率 0.76% 0.15% 0.61百分點 (港仙) (港仙) ...

Financial Performance - In 2022, the Group's revenue was approximately HKD 1,650.5 million, a decrease from HKD 2,266.9 million in 2021, representing a year-over-year decline of 27.1%[17]. - The gross profit for the year ended December 31, 2022, was HKD 1,182.5 million, compared to HKD 1,960.5 million in 2021, indicating a decline of 39.7%[19]. - The profit attributable to owners of the company for 2022 was a loss of HKD 51.2 million, compared to a profit of HKD 151.2 million in 2021[21]. - The Group's revenue for the year ended December 31, 2022, decreased by 19.25% to HK$1,334,269,000 compared to the previous year[55]. - Loss attributable to owners of the Company was approximately HK$51,239,000, an increase from HK$27,485,000 in the prior year[55]. - Total retail sales of consumer goods decreased by 0.2% year-on-year, with garment sales falling by 6.5%[54]. - Retail sales revenue was HK$877,155,000, accounting for 65.74% of total revenue, representing a decrease of 28.42% from the prior year[82]. - Revenue from e-commerce platforms increased by 14.21% to HK$411,478,000, making up 30.84% of total revenue, driven by increased consumer reliance on online shopping during the pandemic[82]. Retail Network and Sales - As of December 31, 2022, the Group had a total of 1,084 retail outlets, including 915 concessionary counters and 169 retail shops in Mainland China, Hong Kong, and Macau[10]. - The Group's retail network saw a net decrease of 167 retail outlets, retaining 1,084 outlets with higher sales efficiency, covering over 350 cities in China[42]. - The proportion of sales from Mainland China was 96.5% in 2022, slightly down from 97.0% in 2021[14]. - The lingerie segment represented 85.0% of total sales in 2022, down from 86.3% in 2021[15]. - The Group's concessionary counters saw a decrease in sales contribution to 56.7% in 2022, down from 63.6% in 2021[12]. - The Embry Form brand accounted for 52.3% of total sales in 2022, an increase from 49.6% in 2021[13]. Strategic Initiatives - The Group plans to continue expanding its retail network to capture growing opportunities in major cities across China[9]. - The Group adopted cost control measures and implemented flexible production in response to the challenging operating environment due to the pandemic[38]. - The Group strategically adjusted its store network to optimize the integration of online and offline sales channels[70]. - The Group launched a series of 'China-chic' underwear products, aligning with cultural trends and collaborating with young artists[65]. - The Group enhanced brand competitiveness through a multi-brand strategy, focusing on seven brands including EMBRY FORM and FANDECIE[59]. - The Group plans to explore segmented markets and leverage e-commerce growth to expand its market share in the online retail sector[119]. Corporate Governance - The Company emphasizes good corporate governance practices as essential for effective management and sustainable business growth[152]. - The Board has adopted the Corporate Governance Code from the Hong Kong Stock Exchange as its governance practices[153]. - The Company complied with all applicable provisions of the Corporate Governance Code during the year ended December 31, 2022[154]. - The Board consists of four Executive Directors and three Independent Non-Executive Directors, ensuring a balance of skills and experience[167]. - Independent Non-Executive Directors represent more than one-third of the Board, enhancing its independence and objectivity[168]. - The Company has established mechanisms to ensure independent views are available to the Board[185]. Management and Workforce - The management team includes individuals with extensive experience in strategic management and research and development, enhancing the company's innovation capabilities[137][138]. - Overall workforce gender ratio is 93.7% female and 6.3% male, with 4,298 total employees[176]. - Senior management consists of 50% female and 50% male[176]. - The Company aims for at least one-third of the Board members to be Independent Non-Executive Directors[177]. Market Conditions and Future Outlook - Looking ahead to 2023, the domestic economy is expected to see a mixed recovery, with the consumer sector anticipated to take time to fully recover[45]. - The group expects a mixed recovery in the overall economy in the first half of 2023, with the consumer sector's full recovery taking time due to the uncertain global economic environment[117]. - China's GDP growth in 2022 was 3.0%, lower than the expected 5.5%, impacting the retail consumer market[54]. Awards and Recognition - EMBRY FORM received the Hong Kong Top Brand award from 2007 to 2022, indicating strong brand recognition in the market[129]. - The group received multiple awards for excellence in tax payment, innovation in knitted underwear, and quality in product and service[125][127]. - Embry (Shandong) Garments Limited was recognized as a National Green Factory by the Ministry of Industry and Information Technology of the People's Republic of China[129].

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告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而 引致的任何損失承擔任何責任。 EMBRY HOLDINGS LIMITED 安莉芳控股有限公司 (於開曼群島註冊成立的有限公司) (股份代號：1388) 公佈截至二零二二年十二月三十一日止全年度業績 業績摘要 二零二二年 二零二一年 變動 (千港元) (千港元) 收益 1,334,269 1,652,408 -19.25% 毛利 1,001,249 1,205,702 -16.96% 毛利率 75.04% 72.97% 2.07百分點 擁有人應佔年度虧損 (51,239) (27,485) -86.43% 虧損率 (3.84%) (1.66%) -2.18百分點 (港仙) (港仙) 每股基本虧損 (12.13) (6.51) -86.33% 每股攤薄虧損 (12.13) (6.51) -86.33% ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 742.5 million, a decrease of 16.7% compared to HKD 891.1 million for the same period in 2021[10] - Gross profit for the same period was HKD 563.7 million, down from HKD 655.5 million, reflecting a gross margin decline[10] - The net profit attributable to shareholders for the six months was HKD 1.1 million, a significant drop from HKD 33.0 million in the prior year[10] - The company reported a loss in other comprehensive income of HKD 85.5 million, compared to a gain of HKD 39.2 million in the previous year[11] - For the six months ended June 30, 2022, the company reported total revenue of HKD 4,224 million, a decrease from HKD 4,224 million in the same period last year[20] - The net cash flow from operating activities for the six months ended June 30, 2022, was HKD 102,874 million, compared to HKD 108,702 million for the same period in 2021, indicating a decline of approximately 5.5%[27] - The company reported a net profit attributable to shareholders of HKD 2,136 million for the six months ended June 30, 2022, compared to HKD 2,512 million in the same period last year, representing a decrease of approximately 15%[20] - The company reported a decrease in total comprehensive income for the period, amounting to HKD 1,116 million, down from HKD 1,734 million in the same period last year[20] - Profit attributable to the company's owners was approximately HKD 1,116,000, a significant decrease from HKD 32,956,000 in the previous period[93] Assets and Liabilities - Total assets as of June 30, 2022, were HKD 2,876.7 million, down from HKD 2,968.2 million at the end of 2021[16] - The company's net asset value decreased to HKD 2,432.3 million from HKD 2,516.3 million at the end of 2021[16] - Non-current liabilities totaled HKD 444.4 million, slightly down from HKD 451.9 million at the end of 2021[16] - The company’s total liabilities decreased to HKD 2,428,112 million as of June 30, 2022, from HKD 2,512,049 million at the end of the previous year, indicating a reduction of approximately 3.3%[20] - The company’s bank loans as of June 30, 2022, totaled HKD 327,472,000, a decrease from HKD 346,482,000 as of December 31, 2021[72] Cash and Cash Equivalents - The company maintained a cash and cash equivalents balance of HKD 403.4 million as of June 30, 2022, compared to HKD 378.6 million at the end of 2021[15] - The company’s cash and cash equivalents increased by HKD 44,125 million during the period, compared to a decrease of HKD 39,312 million in the same period last year[27] Market Outlook and Strategy - The management indicated a cautious outlook for the second half of 2022 due to ongoing market challenges[10] - The company plans to focus on new product development and market expansion strategies in the upcoming quarters[10] - The company plans to continue expanding its market presence and investing in new product development to drive future growth[21] - The company plans to adapt its business strategy to the changing economic environment and focus on expanding its online retail market share[126] - The outlook for the second half of 2022 anticipates a recovery in the domestic retail market, although full recovery in the consumer sector is expected to take time[126] Revenue Breakdown - Revenue from retail stores was HKD 427,691,000 for the six months ended June 30, 2022, down from HKD 581,302,000 in 2021, representing a decline of 26.4%[40] - Revenue from the brand "Anlifang" was HKD 389,955,000 for the six months ended June 30, 2022, compared to HKD 433,841,000 in 2021, reflecting a decrease of 10.1%[42] - Retail revenue amounted to HKD 495,138,000, down 26.70%, accounting for 66.68% of total revenue, while e-commerce sales increased by 25.79% to HKD 221,468,000, representing 29.83% of total revenue[106] Employee and Management Costs - Employee costs totaled HKD 247,144,000, down from HKD 278,372,000 in the same period last year, with the number of employees reduced to approximately 4,805[105] - Total remuneration paid to key management personnel was HKD 6,451,000, down from HKD 9,335,000 in the previous year, reflecting a reduction of approximately 30.4%[58] Shareholder Information - The company reported a total of 143,041,031 ordinary shares held by Harmonious World Limited, representing a significant ownership stake[154] - Sinowide Investments Limited holds 30,000,000 ordinary shares, indicating a strong position in the company's equity[154] - The total percentage of shares held by major shareholders exceeds 5% of the company's issued share capital, indicating concentrated ownership[153] Compliance and Governance - The independent auditor reviewed the interim financial statements in accordance with the Hong Kong Accounting Standards, specifically HKAS 34[175] - The company confirmed compliance with all applicable corporate governance code provisions during the reporting period[172] - The report emphasizes the importance of shareholder transparency and compliance with regulatory requirements[167]

Embry Form EMBRY HOLDINGS LIMITED 安 莉 芳 控 股 有 限 公 司 於開曼群島註冊成立之有限公司 | --- | --- | --- | --- | |-----------------|-------|-------|-------| | | | | | | 股份代號 : 1388 | | | | | | | | | 目錄 2 公司資料 未經審核簡明綜合財務報表 3 收益表 4 全面收益表 5 財務狀況表 7 罐益變動表 9 現金流量表 10 簡明綜合財務報表附註 26 管理層討論及分析 36 其他資料 43 獨立審閱報告 公司資料 健倫中心2期7樓 | --- | --- | |---------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------- ...

Financial Performance - The Group's total revenue for the year ended December 31, 2020, was approximately HKD 2,339.5 million, a decrease from HKD 2,451.9 million in 2019, representing a decline of 4.6%[10]. - The Group's turnover for the year was HK$1,650,483,000, a decrease of 27.19% compared to the previous year[32]. - The Group's revenue for the year ended December 31, 2020, decreased by 27.19% to HKD 1,650,483,000, with a gross margin decline of 6.12 percentage points to 71.64%[51]. - Gross profit was approximately HK$1,182,487,000, with a gross profit margin of 71.64%[32]. - The loss attributable to owners of the Company was HK$2,824,000, resulting in a negative profit margin of 0.17%[32]. - The loss attributable to owners of the Company was HK$2,824,000 for the Current Year, compared to a profit of HK$80,322,000 in the Prior Year, reflecting a significant decline in operating income[94]. - Profit attributable to equity holders, excluding non-operating expenses, decreased by 7.67% to HK$79,635,000 from HK$86,246,000 compared to last year[94]. - Other income increased by 54.43% to HK$71,485,000, mainly due to an exchange gain of HK$11,536,000[83]. - Selling and distribution expenses decreased by 32.19% to HK$958,518,000, accounting for 58.07% of Group's revenue[88]. - Administrative expenses decreased by 26.97% to HK$172,840,000, accounting for 10.47% of Group's revenue[88]. - Total staff costs for the Current Year were HK$474,759,000, decreasing by 33.38% year-on-year[72]. - The impairment of right-of-use assets and other expenses amounted to HK$82,459,000, primarily due to weak retail sales performance impacted by the COVID-19 pandemic[92]. Retail Operations - As of December 31, 2020, the Group operated a total of 1,398 retail outlets, including 1,177 concessionary counters and 221 retail shops in Mainland China, Hong Kong, and Macau[6]. - The number of retail outlets net decreased by 266, maintaining a total of 1,398 outlets across over 380 cities in China[31]. - The concessionary counters contributed 62.2% to total sales in 2020, down from 70.3% in 2019, indicating a shift in sales strategy[7]. - Retail sales revenue was HK$1,203,246,000, accounting for 72.90% of total revenue, and decreased by 34.84% from the Prior Year[74]. - Revenue from the Mainland China market was HK$1,595,581,000, accounting for 96.67% of total revenue[75]. - Sales of lingerie decreased by 27.58% to HK$1,435,914,000, accounting for 87.0% of Group's revenue[80]. E-commerce Growth - Online sales increased significantly to 26.3% of total sales in 2020, up from 18.3% in 2019, highlighting the growing importance of e-commerce[7]. - Online sales grew steadily, with revenue increasing by 18.91% year-on-year[31]. - The online business continued to grow steadily, with revenue increasing by 18.91% year-on-year[36]. - The Group continued to enhance its online market presence by designing specialized products to attract potential customers and expand its network coverage[61]. Strategic Initiatives - The company continues to implement a multi-brand strategy to cater to diverse customer preferences, enhancing its market reach[4]. - The Group implemented a multi-brand strategy, operating seven brands, with a focus on maintaining brand influence and market share despite weak consumer sentiment[50]. - Future outlook includes further expansion of the retail network and increased focus on online sales channels to capture growing consumer demand[6]. - The Group aims to optimize its supply chain and production capacity to balance inventory levels and maximize operational efficiency[42]. - The Group plans to continue adjusting its multi-brand strategy and product mix to better align with consumer preferences and market demand[109]. - The Group aims to enhance production and delivery efficiency by leveraging its self-production model and a newly established intelligent material warehouse, optimizing the supply chain to better meet market demands[112]. Corporate Governance - The Company emphasizes good corporate governance practices as essential for effective management and sustainable business growth[149]. - The Company has adopted the Corporate Governance Code from the Stock Exchange as its own governance practices[150]. - The Directors believe the Company complied with all applicable code provisions under the CG Code during the year ended December 31, 2020[151]. - The Board consists of 5 Executive Directors and 3 Independent Non-Executive Directors, ensuring a diverse governance structure[152]. - A board diversity policy has been established to maintain a diverse Board, considering factors such as gender, age, and professional experience[155]. - The current structure of the Board is designed to ensure independence and objectivity, providing checks and balances to protect shareholder interests[159]. - The Company has a diversity policy for Board members, considering factors such as gender, age, cultural background, and professional experience[158]. - The Company maintains a commitment to appointing Directors based on merit while considering the benefits of diversity[158]. Management and Leadership - The Group's executives have extensive experience in the lingerie industry, with leadership spanning over 40 years[122][123]. - Ms. Cheng Pik Ho Liza has over 28 years of experience in the lingerie industry and has been with the Group since 1993[127]. - Mr. Cheng Chuen Chuen is responsible for the research and development center and has over 24 years of experience in technological research and development[131]. - Ms. Lu Qun has over 41 years of experience in management and administration, focusing on strategic management and marketing in Mainland China[132]. - Mr. Lau Siu Ki has been an independent non-executive director since November 2006 and is the chairman of the Audit Committee[138]. Community Engagement - The Group donated RMB1 million worth of thermal underwear to support Wuhan medical staff during the epidemic[27]. Future Outlook - The management remains optimistic about recovery in consumer spending and market conditions post-pandemic, guiding for gradual sales improvement in the upcoming year[6]. - The outlook for 2021 remains challenging due to geopolitical uncertainties and the fluctuating COVID-19 situation, affecting consumer markets[103]. - The Group anticipates that the market will take time to fully recover, focusing on maintaining competitiveness through a multi-brand strategy and adjusting product offerings to attract a diverse customer base[111].

Financial Performance - For the six months ended June 30, 2020, the company reported revenue of HKD 784.96 million, a decrease of 34.6% compared to HKD 1,199.36 million in the same period of 2019[5]. - Gross profit for the same period was HKD 558.94 million, down 40.2% from HKD 934.75 million year-on-year[5]. - The company recorded a loss attributable to shareholders of HKD 38.71 million, compared to a profit of HKD 67.40 million in the prior year, representing a significant decline[5]. - Basic and diluted loss per share was HKD 9.16, compared to earnings of HKD 15.96 per share in the previous year[5]. - Total revenue from customer contracts decreased to HKD 784,956,000 in 2020 from HKD 1,199,358,000 in 2019, representing a decline of approximately 34.6%[23]. - The group's revenue for the period was HKD 784,956,000, a decrease of 34.55% compared to the previous period, primarily due to the weak consumer sentiment caused by the pandemic[71]. - Retail revenue amounted to HKD 549,304,000, accounting for 69.98% of total revenue, down 44.64% from the previous period[71]. - The group recorded a gross profit of approximately HKD 558,940,000, a decrease of 40.20%, with a gross profit margin of 71.21%, down 6.73 percentage points year-on-year[75]. - The group reported a loss attributable to shareholders of HKD 38,713,000, compared to a profit of HKD 67,399,000 in the previous period[78]. Cash Flow and Liquidity - The net cash flow from operating activities for the six months ended June 30, 2020, was HKD 236,622,000, compared to HKD 95,476,000 for the same period in 2019, representing a significant increase[14]. - The total cash and cash equivalents at the end of the period was HKD 361,091,000, up from HKD 214,305,000 at the end of June 2019, showing strong liquidity[14]. - As of June 30, 2020, the group's cash and cash equivalents amounted to approximately HKD 361,091,000, an increase from HKD 200,230,000 as of December 31, 2019[79]. - The net cash outflow from investing activities was HKD 19,903,000, a decrease from HKD 65,456,000 in the previous year, indicating improved investment efficiency[14]. - The net cash outflow from financing activities was HKD 44,198,000, compared to a net inflow of HKD 25,349,000 in the prior year, reflecting changes in financing strategy[14]. Assets and Liabilities - Total assets as of June 30, 2020, were HKD 3,882.68 million, down from HKD 3,505.89 million as of December 31, 2019[9]. - Current liabilities decreased to HKD 429.10 million from HKD 498.61 million at the end of 2019, indicating improved liquidity management[9]. - The company’s net asset value was HKD 715.58 million, an increase from HKD 669.89 million at the end of 2019[9]. - Non-current assets totaled HKD 2,167.01 million, down from HKD 2,336.00 million at the end of 2019, reflecting a reduction in long-term investments[8]. - The total accounts receivable as of June 30, 2020, was HKD 82,089,000, an increase from HKD 79,814,000 as of December 31, 2019[46]. - The aging analysis of accounts payable showed a total of HKD 35,838,000 as of June 30, 2020, down from HKD 52,723,000 as of December 31, 2019[48]. - The company’s bank borrowings amounted to HKD 561,904,000 as of June 30, 2020, compared to HKD 524,472,000 as of December 31, 2019[51]. - Other payables were reported at HKD 81,659,000 as of June 30, 2020, slightly up from HKD 80,557,000 as of December 31, 2019[53]. - Contract liabilities, which represent the total transaction price allocated to unsatisfied performance obligations, were HKD 27,397,000 as of June 30, 2020, down from HKD 29,334,000 as of December 31, 2019[54]. Operational Changes and Strategies - The management indicated a focus on cost control and exploring new market opportunities to recover from the current downturn[6]. - The company plans to continue optimizing its sales network by closing underperforming stores to enhance overall operational efficiency[65]. - The company is accelerating its digital transformation to analyze consumer habits and improve online market coverage[65]. - The group aims to integrate online and offline retail channels to adapt to changing consumer behaviors post-pandemic[86]. - The company plans to enhance manufacturing efficiency and production flexibility to better respond to market demand fluctuations[86]. Impact of COVID-19 - The company recognized a rental reduction of HKD 6,866,000 due to COVID-19, which was accounted for as variable lease payments[21]. - The COVID-19 pandemic caused China's GDP to decline by 6.8% in Q1 2020, with a slight recovery of 3.2% in Q2, resulting in a 1.6% decline for the first half of the year[60]. - The group anticipates a slow recovery in the lingerie market due to the ongoing impact of the pandemic on consumer behavior and investment confidence[86]. Management and Governance - The company did not declare an interim dividend for the six months ended June 30, 2020, compared to an interim dividend of HKD 0.02 per share totaling approximately HKD 8,448,000 for the same period in 2019[42]. - The company has complied with all applicable code provisions of the Corporate Governance Code during the reporting period[105]. - The independent auditor did not identify any matters that would lead to a belief that the financial statements were not prepared in accordance with Hong Kong Accounting Standards[109].