Financial Performance - For the period ended 31 December 2021, the revenue was HK$1,164 million, representing a 7% increase compared to HK$1,092 million for the year ended 30 June 2020[21]. - The gross profit for the same period was HK$596 million, with a gross margin of 51%, up from 49% in the previous period[21]. - The company reported a basic loss per share of HK(16.52) cents, an improvement of 24% from HK(21.83) cents[21]. - The EBITDA for the period was HK$(141) million, reflecting a 33% increase in losses compared to HK$(106) million[21]. - Loss from operating activities was HK$322,399, slightly higher than the loss of HK$319,131 in 2020[29]. - Loss attributable to owners of the Company was HK$340 million, an improvement from a loss of HK$368 million for the year ended 30 June 2020, resulting in a net margin of negative 29%[63]. - Same-store sales growth in Hong Kong and Macau was -17%, while Mainland China experienced a decline of -19%[16]. - Same-store sales declined by 17%, compared to a 14% decline in the previous year, while same-store gross profit decreased by 16%, down from a 21% decline[51]. Store Operations - The total number of directly managed stores decreased to 159 from 209, a reduction of 50 stores[23]. - The number of directly managed stores in Hong Kong and Macau decreased to 26 from 38 as of June 30, 2020[76]. - The number of directly managed stores in mainland China decreased to 119 from 154[84]. - The Group had a total of 698 stores as of 31 December 2021, down from 982 stores as of 30 June 2020, with 159 directly managed stores and 539 franchised stores[67]. - The total net retail floor area decreased to 69,800 sq. ft. from 109,500 sq. ft. as of June 30, 2020, with sales per sq. ft. dropping to HK$4,800 from HK$5,500[76]. - The export franchising business operated 539 stores across 21 countries, down from 773 stores as of June 30, 2020, indicating a strategic international expansion approach[80]. Inventory and Capital Expenditure - The inventory turnover period increased to 180 days, a 126% change from 123 days[21]. - Inventory turnover increased to 180 days, up from 123 days, indicating slower inventory movement[39]. - Capital expenditure for the period was HK$44 million, a significant increase of 110% from HK$21 million[21]. - The Group allocated HK$60 million for capital expenditure related to expansion in mainland China, with actual use being HK$33 million as of 31 December 2021[103]. Cash Position and Financial Ratios - The company had a net cash position of HK$269 million, with total liabilities to equity ratio at 187%[21]. - The net cash position improved to HK$269,000, representing a 187% increase compared to HK$116,000 in the previous year[39]. - The current ratio improved to 1.74 from 1.49, suggesting better short-term financial health[39]. - The current ratio improved to 1.74 times from 1.49 times, while total liabilities to equity ratio increased to 187% from 175%[93]. - The return on equity ratio for the period was negative 126%, compared to negative 75% in the previous year[93]. Market Challenges and Strategic Initiatives - The retail apparel industry faced challenges due to the COVID-19 pandemic, impacting growth prospects for 2022[46]. - The company expressed uncertainty about its performance outlook due to ongoing challenges in the retail environment[46]. - The Group anticipates potential losses during the investment period due to internal and external factors[108]. - The Group continues to face challenges with landlords unwilling to provide reasonable rent concessions for stores[106]. - The company opened new stores in mainland China under the new brand "bossini.X" as part of its brand repositioning strategy[46]. - The company is targeting new distribution channels with the "bossini.X" brand, which will feature substantially different products from the original brand[46]. Corporate Governance - The Board of Directors held 13 meetings during the period ended December 31, 2021, to consider and approve financial results for the same period and discuss business updates and strategies[151]. - The Company has established a Nomination Committee with specific written terms of reference for the appointment of new Directors[144]. - The Company recognizes the benefits of a diverse Board, considering factors such as gender, age, cultural background, and professional experience in candidate selection[186]. - The Company Secretary has been with the Group since 2004 and has ensured compliance with applicable laws and governance matters[191]. - The Company has arranged appropriate insurance cover for Directors' and officers' liabilities arising from corporate activities[187]. Risk Management - The Group engaged RSM Consulting (Hong Kong) Limited to review its risk management system for the period ended December 31, 2021[194]. - The Board believes that major risks of the Group are managed within an acceptable level and will continue to monitor residual risks[195]. - The Group's risk management and internal control systems are deemed effective and adequate for the period ended December 31, 2021[195].
BOSSINI INT'L(00592) - 2021 - 年度财报