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].

Retail Network and Market Presence - As of December 31, 2019, the Group had a total of 1,664 retail outlets, including 1,382 concessionary counters and 282 retail shops in Mainland China, Hong Kong, and Macau[8] - The Group's market penetration strategy includes an extensive sales network covering major cities such as Beijing, Shanghai, and Guangzhou, enabling efficient customer response[7] - The number of retail outlets decreased by 173 to 1,664 as of December 2019, covering over 380 cities in China[32] - The Group continues to review and strategically adjust its sales network coverage to cope with market changes, closing or resetting underperforming stores[65] Financial Performance - The Group's revenue for the year ended December 31, 2019, was 2,216.1 million, a decrease from 2,339.5 million in 2018, reflecting a compound annual growth rate (CAGR) of -2.76%[11] - The Group's turnover for the year was HK$2,266,867,000, a decrease of 7.55% compared to the previous year[33] - For the year ended December 31, 2019, the Group's revenue decreased by 7.55% to HK$2,266,867,000, with a gross profit margin of 77.76%, down by 2.18 percentage points[54] - Profit attributable to owners of the Company was HK$80,322,000, resulting in a net profit margin of 3.54% and earnings per share of HK19.01 cents, compared to HK35.79 cents in 2018[54] - Net profit attributable to owners decreased by approximately 46.86% to HK$80,322,000, with a net profit margin of 3.54%[91] Product and Sales Strategy - The Group's online sales and wholesale accounted for 11.2% and 18.3% of total revenue in 2019, compared to 9.7% and 15.8% in 2018, respectively[11] - The Group aims to deepen its market penetration in China through a consumer-centric sales strategy and omni-channel retailing[4] - The Group is expanding into online sales channels to optimize its sales network[19] - The multi-brand strategy aims to cater to consumers in different-tiered cities and varying income levels[30] - The Group's diversified product portfolio includes lingerie, sleepwear, and swimwear, with respective revenue contributions of 45.5%, 24.7%, and 3.9% in 2019[11] Economic and Market Conditions - In 2019, China's economy grew at its weakest pace since 1990, reporting a growth rate of 6.1%[22] - The retail consumption sentiment has turned more cautious due to the economic slowdown, affecting the lingerie industry[22] - The overall retail market, particularly for non-essential goods, is expected to remain sluggish amid uncertainties from the global economic recovery[34] - The International Monetary Fund lowered the global growth forecast for 2020 to 3.2% and for China to 5.6%[106] Research and Development - The Group's research and development capability is crucial for success in an increasingly segmented market[29] - The Group is committed to investing in product research and development to enhance product quality and meet consumer demand[68] - The Group obtained 17 new patents in 2019, including 12 utility model patents and 5 appearance design patents[71] - The company has over 23 years of experience in research and development related to production and manufacturing technology, processes, and equipment[133] Corporate Governance and Management - The Company has adopted the Corporate Governance Code as its own code of corporate governance practices[148] - The Board consists of five Executive Directors and three Independent Non-Executive Directors, with Independent Non-Executive Directors representing more than one-third of the Board[159] - The Company has established a clear division of responsibilities between the Chairman and the Chief Executive Officer to avoid concentration of power[195] - The management team includes independent non-executive directors with extensive backgrounds in finance and law, ensuring robust governance[136][138] Impact of COVID-19 - The Group has temporarily suspended operations in various shops due to the COVID-19 outbreak, which is expected to significantly impact results this year[107] - The Group has temporarily closed multiple stores in affected provinces, anticipating a significant negative impact on this year's performance[109] - The Group established an anti-epidemic fund of RMB1 million to support staff affected by the epidemic[108] - The Group expects a global economic growth rate of 3.2% for 2020, with China's growth forecast reduced to 5.6% due to the impact of COVID-19[109] Marketing and Brand Awareness - The Group's brands, EMBRY FORM and IVU, sponsored the 2019 IMC Shanghai International Model Contest, enhancing brand awareness through media coverage from about forty platforms[61] - The Group leveraged new media for online promotions, utilizing fashion influencers to enhance brand image and reputation globally[63] - The company has received accolades for its marketing and brand value at the 2019 China (Shenzhen) International Brand Underwear Exhibition[123] Operational Efficiency - The Group plans to adopt a prudent approach in production planning and adjust inventory levels due to lowered market demand caused by the epidemic[40] - The intelligent warehouse in Shandong is expected to enhance supply chain integration and improve production efficiency in the long run[112] - The Group is focusing on improving operational efficiency by controlling new store openings and closing underperforming stores[112]

Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 1,199,358,000, a decrease of 11.4% compared to HKD 1,354,425,000 in the same period of 2018[8] - Gross profit for the same period was HKD 934,752,000, down 13.7% from HKD 1,082,288,000 year-on-year[8] - Profit attributable to owners of the company was HKD 67,399,000, a decline of 42.0% from HKD 116,195,000 in the previous year[10] - Basic earnings per share decreased to HKD 15.96 from HKD 27.51, representing a drop of 42.0%[8] - The company reported a total comprehensive income of HKD 67,506 for the six months ended June 30, 2019, compared to HKD 116,195 in the previous year[16] - The company's pre-tax profit for the six months ended June 30, 2019, was HKD 67,399,000, a decrease from HKD 116,195,000 in 2018[64] - Net profit attributable to the company's owners was HKD 67,399,000, a decline of approximately 41.99%, with a net profit margin dropping from 8.58% to 5.62% due to ongoing retail challenges[92] Assets and Liabilities - Total non-current assets increased to HKD 2,361,231,000 from HKD 2,179,060,000, reflecting a growth of 8.3%[11] - Current assets rose to HKD 1,201,611,000, compared to HKD 1,111,191,000, marking an increase of 8.1%[11] - Total liabilities increased to HKD 1,193,186,000 from HKD 1,173,532,000, indicating a rise of 1.7%[11] - Net assets attributable to owners of the company were HKD 2,369,656,000, up from HKD 2,331,719,000, showing an increase of 1.6%[13] - The total assets at the end of the period were HKD 1,244,362,000, compared to HKD 1,177,389,000 at the end of 2018, indicating an increase of about 5.7%[67] - The group's bank borrowings as of June 30, 2019, totaled HKD 529,942,000, up from HKD 427,059,000 as of December 31, 2018[72] Cash Flow - The company reported a net cash position of HKD 214,305,000 as of June 30, 2019, compared to HKD 158,414,000 at the end of 2018[11] - The net cash flow from operating activities for the six months ended June 30, 2019, was HKD 95,476, a decrease from HKD 213,543 in the same period of 2018[17] - The cash and cash equivalents at the end of the period were HKD 214,305, down from HKD 399,645 in the previous year[17] Revenue Breakdown - Revenue from sales counters was HKD 866,306,000, down 16.2% from HKD 1,033,535,000 year-on-year[48] - Online sales and wholesale revenue increased to HKD 204,062,000, up 4.7% from HKD 194,612,000 in the previous year[48] - Revenue from the brand "Anlifang" was HKD 549,596,000, a decrease of 12% from HKD 624,036,000 in 2018[49] - Retail revenue amounted to HKD 992,276,000, accounting for 82.73% of total revenue, down 14.23% from the previous period; online and wholesale revenue increased by 4.86% to HKD 204,062,000, representing 17.02% of total revenue[88] Expenses and Costs - The cost of goods sold for the six months ended June 30, 2019, was HKD 264,606,000, down from HKD 272,137,000 in 2018, representing a decrease of approximately 2%[53] - Operating expenses for sales and distribution decreased by 9.72% to HKD 738,912,000, accounting for 61.61% of total revenue, while administrative expenses were HKD 120,404,000, down 15.22%[92] - Employee costs totaled HKD 375,617,000, a slight decrease from HKD 381,946,000 in the previous period, with the number of employees reduced to approximately 7,776[87] Dividends and Shareholder Information - The company declared an interim dividend of HKD 2.0 cents per share for 2019, down from HKD 3.5 cents per share in 2018, representing a decrease of about 42.9%[66] - The company declared an interim dividend of HKD 0.02 per ordinary share, amounting to approximately HKD 8,448,000[115] Corporate Governance - The board of directors has confirmed compliance with all applicable corporate governance code provisions during the reporting period[121] - The independent non-executive director, Mr. Li, has served for over 9 years and has been re-elected at the annual general meeting[120] Future Plans and Market Outlook - The company plans to focus on enhancing its product offerings and expanding its market presence in the upcoming periods[10] - The group plans to accelerate its online shopping market expansion by establishing independent online stores for its various brands[78] - The group anticipates that the uncertain global economic outlook will impact investment and consumer confidence, particularly in the non-essential retail sector[100] Accounting Standards and Compliance - The company's external auditor reviewed the interim financial statements for the six months ending June 30, 2019[114] - The independent review report confirms that the financial statements were prepared in accordance with Hong Kong Accounting Standards No. 34[123] - No significant issues were identified that would lead to a belief that the financial statements were not prepared in all material respects according to the applicable standards[126]

EMBRY HOLDINGS LIMITED 安莉芳控股有限公司 Incorporated in the Cayman Islands with limited liability 於開曼群島註冊成立之有限公司 Stock Code 股份代號 : 1388 | --- | --- | --- | --- | --- | --- | |-------|-------|-------|--------------|-------|-------| | | | | | | | | | | | | | | | | | | 追 求 | | | | | | | | | | | | | | Striving for | 卓越 | | | | | | EXCELLENCE | | | 2018 ANNUAL REPORT 年報 Solid self-development capabilities have always been one of the Group's competitive edges in the market. Adhering to the pursuit of product quality, th ...