Market Recovery and Economic Environment - The high-end apparel retail market in Hong Kong and Mainland China has not fully recovered to pre-pandemic levels, with visitor arrivals in Hong Kong in 2023 only reaching about 60% of the pre-pandemic level in 2019[16]. - The purchasing power of Mainland Chinese tourists in Hong Kong has decreased compared to pre-pandemic levels due to a weaker renminbi and a bleak business outlook, impacting both the number of visitors and their average transaction size[16]. - The overall business environment remains volatile, with high interest rates and geopolitical tensions affecting market conditions[12]. - The Group's business outlook remains cautious due to factors such as slow post-pandemic recovery, geopolitical tensions, and high inflation[45][48]. - The Group's operations in Mainland China faced challenges due to the ongoing property sector crisis and strained Sino-U.S. relations, leading to a weaker renminbi[80]. Financial Performance - The Group recorded a loss of approximately HK$49 million for the year, an increase compared to the previous financial year's loss, while turnover increased by 7% to approximately HK$137 million[26]. - Revenue from Hong Kong operations increased by 18% to approximately HK$84 million, accounting for about 61% of total revenue[27][28]. - Revenue from Macau dropped by 26% to approximately HK$11 million due to store relocation, while revenue from Mainland China slightly decreased to approximately HK$31 million[27]. - The gross profit margin improved to 81% for the year, compared to 73% in the previous financial year[28]. - The loss attributable to equity shareholders for the year was approximately HK$48,100,000, an increase from HK$42,857,000 in 2023[107]. - The revenue from operations outside Hong Kong decreased by approximately 6% to approximately HK$53,398,000, primarily due to the relocation of retail stores in Macau[101]. Strategic Initiatives and Market Adaptation - The company is focusing on designing and selling trendy clothing that caters to the preferences of the younger generation while also appealing to middle-aged customers[22]. - The ongoing geopolitical tensions and macroeconomic factors continue to reshape the fashion apparel industry, necessitating adaptation to changing consumer behaviors and preferences[20]. - The Group has repositioned its major brand MOISELLE to cater to younger consumers, increasing the proportion of mid-range, on-trend apparel from about 30% to approximately 50% of total SKUs since the financial year ended 31 March 2021[35]. - The Group aims to strengthen its e-commerce business to boost sales and improve customer relationships, forming alliances with more local online shopping platforms[54][57]. - The Group plans to open new stores in prime locations with reasonable rents to enhance its presence in Hong Kong and Mainland China[51][47]. E-commerce and Marketing Efforts - The Group continues to develop its electronic commerce business, having opened two online platforms for marketing and sales of MOISELLE products in Hong Kong[38]. - A partnership was established with JD.com in April 2023 to promote and sell products in Mainland China, enhancing the Group's e-commerce capabilities[41]. - The Group held three fashion shows in Shenzhen and one in Kunming to showcase its latest deluxe fashion apparel, enhancing marketing efforts and store location strategies[37]. - The Group has initiated marketing campaigns targeting Hong Kong consumers in Mainland Chinese cities to tap into the demand from Hong Kong residents traveling north[73]. Corporate Governance and Management - The company is committed to meeting statutory and regulatory requirements, emphasizing transparency, independence, accountability, responsibility, and fairness in corporate governance[166]. - The Board comprises seven directors, including three executive directors and four independent non-executive directors, ensuring a balanced governance structure[176]. - The company has complied with the Corporate Governance Code throughout the year, with deviations noted only for specific provisions[167]. - The management team is responsible for operational decision-making, reinforcing corporate values that stress lawful and ethical business conduct[175]. - The company has adopted a board diversity policy, with the nomination committee responsible for reviewing the policy and measurable objectives annually[195]. Workforce and Operational Capacity - The Group employed 302 staff as of March 31, 2024, an increase from 285 in 2023, indicating growth in workforce[120]. - The Group's cash and bank deposits amounted to approximately HK$24 million at the end of the financial year, compared to HK$14 million in 2023[108]. - The Group's net current liabilities rose to HK$24 million as of year-end 2024, compared to HK$19 million in 2023, indicating a worsening liquidity position[114]. - The Group's gearing ratio increased to approximately 23.5% as of March 31, 2024, up from 14.2% in 2023, reflecting higher leverage[114]. Customer Engagement and Loyalty - The Group has established a customer loyalty program to enhance customer satisfaction and encourage repeat purchases, benefiting VIP customers with special discounts[128]. - The Group will conduct small-scale handicraft courses in stores to attract younger customers and enhance the shopping experience[44]. - The Group's strategy includes incorporating elements of environmental awareness and quality lifestyle into store designs to improve customer experience[44].
慕诗国际(00130) - 2024 - 年度财报