Financial Performance - The company reported a significant turnaround in its financial performance, aiming for sustainable growth and profitability after a challenging fiscal year[15]. - The fiscal year has been marked by significant changes, with a focus on achieving long-term profitability goals[15]. - The company's core business recorded a loss before interest and tax of HKD 587 million, an improvement from a loss of HKD 909 million in the previous fiscal year[18]. - The underlying loss before interest and tax was HKD 587 million, an improvement from a loss of HKD 909 million in the previous fiscal year[48]. - The company experienced a net loss of HKD 2,144 million, compared to a net loss of HKD 2,554 million in the previous year, indicating a slight improvement[83]. - The company does not recommend a final dividend due to the losses incurred during the fiscal year[18]. Strategic Initiatives - A clear strategic plan has been established to reduce losses and streamline operations, focusing on enhancing brand strength and customer experience[15]. - The management team has made initial positive progress in various operational metrics, laying a solid foundation for future business performance improvements[15]. - The company aims to improve its product offerings and customer experience to enhance competitiveness in the market[17]. - The company is focused on creating a more efficient structure and eliminating loss-making stores as part of its strategic plan initiated in November 2018[26]. - The management team has been optimized to support the company's strategy for long-term value creation[22]. - The restructuring plan has begun to show positive effects, with initial progress noted in the company's operational and financial metrics[26]. Cost Management - Cost control measures led to a reduction in regular operating expenses by HKD 1,742 million or -16.6% year-on-year, aiming to achieve a target of HKD 2 billion in savings over two years[18]. - Regular operating expenses were reduced by 16.6% year-on-year, achieving a healthier cost base and on track to save HKD 2 billion over two years compared to FY 2017/18[29]. - The total operating expenses amounted to HKD 7,088 million, down 19.7% from HKD 8,830 million in the previous year[83]. Market Presence and Sales - The company has expanded its footprint globally, operating in over 40 countries since its inception[5]. - Revenue decreased by 12.9% year-on-year in local currency, with a corresponding decrease in total controllable area of 14.3%[29]. - Comparable store sales in Europe showed positive growth of 1.4% year-on-year in Q4, with significant improvement from a decline of 9.9% in the first half of the fiscal year[29]. - The wholesale business accounted for 97.5% of total wholesale revenue (excluding e-stores), with a year-on-year decline narrowing from -16.2% in the first half to -11.1% in the second half of the fiscal year 2018/2019[37]. - The company closed 169 unprofitable stores and reduced non-store staff, leading to a nearly one-third reduction in related expenses[28]. Sustainability Efforts - The company has initiated a campaign to embrace sustainability and core values, including the introduction of eco-friendly products in the past[5]. - The company achieved over 50% usage of sustainable cotton, moving towards a goal of 100% by July 2021[41]. - The company is focused on sustainability, with 38% of cotton sourced being good cotton and 14% being organic and regenerated cotton[54]. - The company replaced down jackets with vegan alternatives and increased the use of recycled polyester from old plastic bottles[138]. - The company plans to publish its sustainability report three months after the annual report release on its website[138]. Governance and Management - The board of directors consists of 3 executive directors and 3 independent non-executive directors, ensuring over one-third independence[174]. - The company emphasizes the importance of risk management and internal control systems, which are monitored by the board[173]. - The company has established five committees under the board, including the audit committee, nomination committee, remuneration committee, risk management committee, and executive committee, to assist in fulfilling its responsibilities[181]. - The company has implemented a structured onboarding process for new directors to familiarize them with its operations and governance[176]. - The company aims to ensure a consistent approach to risk measurement, control, monitoring, and reporting across all levels of the organization[189]. Future Outlook - Revenue is expected to decline by a low double-digit percentage in the fiscal year 2019/2020 due to economic challenges[112]. - The company plans to continue focusing on market expansion and product development to drive future growth despite current challenges[83]. - Future guidance remains cautious, with expectations of continued volatility in revenue streams across different regions[123].
思捷环球(00330) - 2019 - 年度财报