Financial Performance - Total revenue for the year decreased by approximately 35.2% to about HKD 111.9 million[20] - Gross profit was approximately HKD 8.3 million, a decrease of about 67.0% compared to the previous year[20] - Net loss for the year was approximately HKD 26.4 million, a reduction of about HKD 1.5 million from the previous year[20] - Gross margin decreased to 7.4% from 14.6% year-on-year[7] - Net loss margin worsened to (23.6)% from (16.2)% year-on-year[7] - Return on assets decreased to (25.4)% from (23.7)% year-on-year[7] - Return on equity decreased to (36.5)% from (32.9)% year-on-year[7] - Current ratio slightly decreased to 4.9 from 5.1[7] - Inventory turnover days increased to 150 days from 114 days[7] - Sales in Hong Kong decreased by 35.2% to approximately HKD 111.9 million during the reporting year[22] - Total revenue for the year decreased to approximately HKD 111.9 million, a decline of 35.1% compared to HKD 172.5 million last year[35] - Handbags accounted for over 98.3% of total revenue, with sales from unused products generating approximately HKD 81.9 million, representing 73.2% of total revenue[37] - The cost of sales for the year was approximately HKD 103.5 million, a decrease of 29.7% year-on-year[38] - Gross profit decreased by HKD 16.8 million to approximately HKD 8.3 million, with the gross profit margin dropping from 14.6% to 7.4%[39] - Other income for the year was approximately HKD 1.6 million, a decrease of HKD 2.2 million from HKD 3.8 million last year[44] - Selling expenses amounted to approximately HKD 21.6 million, representing 19.3% of total revenue, compared to 16.8% last year[46] - Administrative and other operating expenses were approximately HKD 13.8 million, a decrease of HKD 3.3 million year-on-year, accounting for 12.3% of revenue[47] - The company reported a loss attributable to owners of approximately HKD 26.4 million, down from HKD 27.9 million the previous year, with a loss per share of approximately HKD 0.0274[49] Assets and Liabilities - The fair value of financial assets held by the group as of December 31, 2024, was HKD 35.0 million, with a recognized fair value gain of approximately HKD 7.8 million and a gain from the sale of financial assets of approximately HKD 2.5 million[22] - The total amount of receivable loans as of December 31, 2024, was HKD 3.7 million, with an annual interest rate of 8%[28] - The expected credit loss provision for receivable loans was approximately HKD 11.0 million, an increase from HKD 10.2 million in the previous year[33] - Total inventory as of December 31, 2024, was HKD 37.8 million, down from HKD 47.5 million the previous year, with inventory turnover days increasing to 150 days from 114 days[40] - As of December 31, 2024, the group's cash and cash equivalents totaled approximately HKD 11.2 million, with total liabilities of approximately HKD 31.5 million and total equity of approximately HKD 72.2 million, compared to HKD 10.3 million, HKD 33.0 million, and HKD 84.8 million in 2023 respectively[51] - The group's debt-to-equity ratio, current ratio, and quick ratio as of December 31, 2024, were approximately 26.0%, 4.9, and 3.0 respectively, compared to 24.1%, 5.1, and 2.7 in 2023[51] Corporate Governance - The board is committed to maintaining high standards of corporate governance and has adopted the corporate governance code as per the listing rules[64] - The group emphasizes a healthy corporate culture aligned with its vision and business strategy[65] - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balance of governance[70] - During the reporting year, the board held five regular meetings, with all directors attending at least 4 out of 4 meetings[73] - Independent non-executive directors play a crucial role in providing impartial opinions on the group's strategy, performance, and monitoring, ensuring the interests of all shareholders are considered[76] - The company has implemented internal policies to ensure the board receives independent opinions and perspectives, which have been reviewed for effectiveness[78] - All independent non-executive directors confirmed their independence according to the criteria set out in the listing rules[76] - The company emphasizes employee development, workplace safety, diversity, and sustainability as part of its long-term growth strategy[67] - The board is responsible for leading and controlling the group, overseeing business strategies and performance[70] - The company has a flexible and prudent financial policy to effectively manage its assets and liabilities, enhancing its financial position[69] - The attendance record for the annual general meeting shows that independent non-executive directors attended 100% of the meetings, while executive directors had lower attendance[79] - The board has adopted a diversity policy, ensuring a balanced mix of skills, experience, and perspectives among its five members, including one female director[85] - The remuneration committee consists of three members, all of whom attended the only meeting held during the reporting year[90] - The company encourages continuous professional development for directors, requiring quarterly training records to be submitted[80] - The nomination committee is focused on identifying candidates with integrity and relevant qualifications to enhance board effectiveness[82] - The company aims to increase the proportion of female directors as part of its long-term strategy for gender diversity on the board[85] - The board's diversity policy includes considerations of gender, age, cultural background, and professional experience in candidate selection[83] - The remuneration policy is designed to provide competitive market salaries to attract and retain high-quality directors and senior management[86] - The company has implemented a structured onboarding training program for newly appointed directors to ensure they understand the company's operations and governance policies[80] - The Nomination Committee held one meeting during the reporting year, with all members present[93] - The Audit Committee conducted two meetings in the reporting year, with full attendance from all members[98] - The external auditor charged the company HKD 670,000 for audit services during the reporting year, with no non-audit services provided[101] - The company is committed to achieving board diversity, considering factors such as gender, age, culture, education background, and professional qualifications[92] Risk Management and Compliance - The company has established a risk management and internal control system, with independent consultants reviewing its effectiveness[108] - The Audit Committee reviewed the financial reporting procedures and internal control systems, providing recommendations to the board[96] - The company has implemented a policy for the training and continuous professional development of directors and senior management[109] - The board is responsible for ensuring compliance with applicable laws and regulations, as well as monitoring adherence to corporate governance policies[109] - The company has arranged insurance to indemnify directors and senior officers against costs and liabilities incurred in the execution of their duties[105] - The internal control consultant's risk management report, which includes risks, issues, and recommended actions, was submitted to the board for approval[108] - The company faces major risks including strategic, operational, and financial risks[166] - The company has maintained compliance with corporate governance codes, with some deviations noted[163] Shareholder Engagement and Transparency - The company actively engages with shareholders and investors through annual general meetings and special meetings, ensuring effective communication and transparency[115] - The company has a robust anti-corruption policy in place, demonstrating its commitment to ethical business practices and compliance with applicable laws[111] - The company has established a formal whistleblowing policy to encourage employees to report concerns without fear of retaliation, with no complaints regarding financial misconduct reported during the year[111] Financial Reporting and Audit - The independent auditor's report confirmed that the consolidated financial statements present a true and fair view of the group's financial position as of December 31, 2024[182] - Key audit matters identified included expected credit loss provisions, inventory valuation, and impairment assessments of property, plant, and equipment[184] - The company is responsible for preparing true and fair consolidated financial statements in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance[196] - The auditors aim to obtain reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[198] - The auditors identified and assessed risks of material misstatement in the consolidated financial statements and designed audit procedures to address these risks[199] - The company directors are responsible for evaluating the group's ability to continue as a going concern and disclosing relevant matters[196] - The auditors communicated significant audit findings and any material weaknesses in internal controls to the audit committee[200] - The company must ensure that the disclosures related to impairment reviews in the consolidated financial statements are adequate[194] - The auditors evaluated the appropriateness of accounting policies adopted by the company and the reasonableness of accounting estimates and related disclosures[199] Capital and Investments - The company reported a net proceeds of approximately HKD 13.7 million from the placement of 176,150,000 new shares at a price of HKD 0.08 per share, completed on July 16, 2024[127] - As of December 31, 2024, approximately HKD 9.4 million of the net proceeds has been utilized for general working capital, with HKD 4.3 million expected to be used in the first quarter of 2025[127] - The board has decided not to declare a final dividend for the year ending December 31, 2024, consistent with the previous year[125] - The company has entered into a lease agreement for retail space in Causeway Bay, with total lease payments amounting to HKD 7,920,000[158] - There were no significant related party transactions during the reporting year that would impact the company's operations[160] - The company did not purchase, sell, or redeem any of its listed securities during the year ending December 31, 2024[134] - The company has no outstanding share options available for grant as of December 31, 2024[152] - The total number of stock options granted as of December 31, 2024, is 71,192,200, with an exercise price of HKD 0.183 per share[153] Social Responsibility and Sustainability - The company’s environmental and social responsibility initiatives include energy-saving measures and promoting the use of eco-friendly products[126] - The group made no charitable donations during the reporting year, totaling zero HKD[137]
米兰站(01150) - 2024 - 年度财报