Financial Performance - The company reported a revenue increase to HKD 8,316 million for the fiscal year ending December 31, 2021, marking a return to profitability with a net profit attributable to shareholders of HKD 381 million, the first profit since the fiscal year ending June 30, 2017[11]. - The company reported a net profit of approximately HKD 386 million for the fiscal year ending December 31, 2021, compared to a net loss of HKD 396 million in the same period last year[78]. - Gross profit was HKD 4,042 million, with a gross margin of 48.6%, an increase of 7.0 percentage points compared to the previous period[93]. - The company raised approximately HKD 689 million through a one-for-two rights issue to support profitable business opportunities[78]. - The company has allocated a total of HKD 689 million for various expenses, with HKD 501 million already utilized and HKD 188 million remaining unutilized[121]. - The company did not declare a dividend for the fiscal year ending December 31, 2021, due to recent losses, marking the first profitable year since the fiscal year ending June 30, 2017[117]. - The company anticipates a cautious economic rebound in the fashion retail sector due to successful vaccination programs and the acceptance of living with COVID[125]. Sustainability Initiatives - Over 78% of the company's apparel was made from sustainable materials as of December 31, 2021, up from 60% in 2020, demonstrating a commitment to sustainability[15]. - The company has begun replacing single-use plastic bags with recyclable materials, aiming for 30% of materials used in bags to be recyclable[15]. - ESPRIT has achieved 78% of its target for using sustainable materials in the current year[19]. - Cotton accounts for over 50% of the total fiber usage, with 74.8% of the cotton being organically grown[25]. - The company aims to increase the use of recycled cotton, although current availability and quality remain challenges[25]. - 32% of the synthetic fibers used are recycled polyester, marking a 10% increase from the previous year[30]. - 62% of the sustainable man-made cellulosic fibers used are sourced from responsibly managed wood[36]. - The company has been certified under the "Green Button" standard by the German government, focusing on social, environmental, and governance risk assessments[40]. - The company has implemented a worker code of conduct based on Fair Labor Association standards, although full implementation was delayed due to the pandemic[52]. - The company aims to eliminate harmful chemicals from its supply chain by 2020, having initiated a large-scale detoxification program[68]. - The company has reduced plastic packaging usage by 55%-86% for certain products, with plans to expand green initiatives to other product categories[74]. - The company has become one of the first members of the Zero Discharge of Hazardous Chemicals (ZDHC) alliance to promote sustainable practices in the fashion manufacturing process[68]. E-commerce and Digital Strategy - The company is focusing on enhancing its e-commerce capabilities to improve customer experience and retention, prioritizing digital infrastructure investments[12]. - Online business revenue grew from HKD 197 million to HKD 3,621 million, making it the best-performing channel due to restrictions on physical store access[89]. - The company successfully reopened online stores in 29 European countries, laying a solid foundation for future global expansion[83]. - A digital customer journey personalization initiative has been launched, which is expected to be a milestone for customer acquisition and retention[83]. - The company has implemented a new E2B wholesale platform to increase online orders, focusing on a digital-first model[83]. - The company anticipates further growth in online business channels in the future, driven by increased digital marketing efforts[89]. Supply Chain and Procurement - Cost control measures and improved inventory and procurement management contributed to the company's financial performance[11]. - The logistics and supply chain will be optimized to ensure efficient product delivery to selected markets[12]. - The company has achieved 100% distribution data for primary and secondary suppliers, with 33% for tertiary suppliers, indicating a commitment to supply chain transparency[39]. - The company has collected wage data from 67 factories in Bangladesh, India, and Turkey since 2020, despite challenges posed by the global pandemic[60]. - The company has completed detailed analysis on 16 aspects of its procurement practices, with scores above average in most areas, showing significant improvements in incentives, compliance, and ordering[58]. - The company has optimized its supplier base to ensure better product cost and quality, as well as faster time-to-market[83]. Corporate Governance - The company has adopted high standards of corporate governance, aiming to enhance transparency and risk management[36]. - The board of directors consists of five independent non-executive directors, accounting for over one-third of the board[140]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations[36]. - The board has reviewed its governance practices and will make necessary adjustments as needed[36]. - The company has adopted a code of conduct for securities trading that meets or exceeds the standards set out in the listing rules[153]. - The company emphasizes compliance with established policies and procedures in its risk management and internal control assessments[162]. Market Expansion and Future Outlook - The company plans to expand its product range and increase revenue from loyal core customers while attracting new customer segments[12]. - The company is entering new markets, including South America and Central America, and plans to launch products on e-commerce platforms in Hong Kong, Taiwan, and South Korea by mid-2022[128]. - The company is exploring the possibility of opening a limited number of physical stores and pop-up shops in key Asian markets[128]. - The management team is confident in re-establishing ESPRIT as a global market leader through ongoing investments and employee dedication[12]. - The company is committed to improving customer experience and product quality while enhancing brand recognition through sustainable development initiatives[78].
思捷环球(00330) - 2021 - 年度财报