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 ...