Financial Performance - Revenue for the year ended June 30, 2019, was HK$1,641 million, a decrease of 16% from HK$1,958 million in 2018[17]. - Gross profit for the same period was HK$846 million, down from HK$1,036 million, representing a decline of 18%[17]. - The company reported a loss from operating activities of HK$135 million, compared to a loss of HK$21 million in the previous year, marking a significant increase of 526%[17]. - The net margin for the year was -8%, a decrease of 7 percentage points from the previous year[17]. - The loss attributable to owners for the year was HK$139 million, resulting in a basic loss per share of HK8.48 cents[32]. - Operating loss was HK$33 million, a significant decline from a profit of HK$24 million in 2018[111]. - Operating loss in Hong Kong and Macau was HK$33 million (2018: profit of HK$24 million), resulting in an operating margin of negative 3%[115]. - Operating loss in mainland China was HK$58 million (2018: HK$30 million), leading to an operating margin of negative 17%[122]. - Operating loss for Singapore operations was HK$13 million (2018: HK$3 million) with an operating margin of negative 13% (2018: negative 2%)[129]. Sales and Store Performance - Same-store sales growth decreased by 9% overall, with Hong Kong and Macau experiencing a decline of 10%[15]. - Same-store sales and same-store gross profit declined by 9% and 11% respectively, while inventory turnover days increased from 80 days in 2018 to 119 days[32]. - Same-store sales in Hong Kong and Macau declined by 10%, while mainland China and Taiwan saw declines of 6% and 8%, respectively[80]. - The total number of directly managed stores increased to 286, up from 284 in the previous year, while export franchised stores rose to 775 from 654[17]. - The total number of stores increased to 1,061, with 121 new stores added in the export franchising business across 27 countries[92][94]. - The number of directly managed stores in mainland China rose to 175, up from 164 in 2018[95]. - Same-store gross profit in Hong Kong and Macau decreased by 12% (2018: 2% growth) and in Taiwan by 10% (2018: 6% growth)[115][124]. Inventory and Cash Management - The inventory turnover period increased to 119 days, up from 80 days, indicating a decline in inventory management efficiency[17]. - Cash and bank balances decreased to HK$162 million, down from HK$341 million in 2018[73]. - As of June 30, 2019, the Group's net cash totaled HK$132 million, and it held an investment fund of HK$232 million[32]. - The current ratio improved to 3.42 times (2018: 3.10 times) while the total liabilities to equity ratio increased to 34% (2018: 29%)[129]. - The Group held an investment fund with an aggregate principal amount of HK$232 million (2018: HK$230 million) and recognized interest income of HK$7 million (2018: HK$7 million)[132]. Market and Economic Conditions - The economic outlook remains cautious due to trade tensions and social unrest in Hong Kong, impacting consumer confidence and spending[46]. - The economic growth in Mainland China in Q2 2019 was the slowest in nearly 27 years, with domestic demand becoming a major driver[62]. - The Group acknowledges the challenges posed by the ongoing trade tensions and economic uncertainties impacting consumer sentiment[63]. - The economic environment presents complexity and uncertainty, but the Group remains confident in long-term growth through effective strategy execution[157]. Strategic Initiatives and Future Plans - The Group aims to develop new markets in Southeast Asia and expand its online-to-offline business[50]. - The Group plans to enhance operational efficiencies by adhering to the 80/20 rule and leveraging big data for business value creation[50]. - The Group is focused on nurturing existing markets and revitalizing the business growth momentum in Mainland China[50]. - The Group recognizes the importance of adapting to changing consumer preferences and spending patterns to maintain competitiveness[55]. - The Group's strategy includes reinventing products to reflect a consistent brand identity and developing a global visual merchandising execution[50]. - The export franchising business is a main focus, with plans to optimize the distribution network in emerging markets and strengthen brand presence[148]. Corporate Governance - The Company has adopted the Corporate Governance Code as stated in the Listing Rules and has complied with the Code Provisions, except for the Chairman not being subject to retirement by rotation[164]. - The Board currently comprises 6 Directors, including 3 Executive Directors and 3 Independent Non-executive Directors, ensuring a balance of skills and experience[179]. - The Company has established 4 Board committees to enhance governance and oversight, with specific roles assigned to each Director[182]. - All Independent Non-executive Directors have confirmed their independence in accordance with the Listing Rules, ensuring checks and balances for shareholder interests[188]. - The roles of Chairman and Chief Executive Officer are separated to maintain independence and balance in decision-making[193].
BOSSINI INT'L(00592) - 2019 - 年度财报