Financial Performance - Gross profit margin increased to 28.9% in 2021 from 24.1% in 2020[13] - Net profit margin improved to 9.0% in 2021, recovering from a loss of (1.8)% in 2020[13] - Return on assets rose to 12.8% in 2021, compared to (1.9)% in 2020[13] - Return on equity increased to 16.4% in 2021, up from (2.8)% in 2020[13] - Total revenue increased by approximately 39.2% to about HKD 245 million, compared to approximately HKD 176 million in the previous year[25] - The gross profit rose to approximately HKD 70.9 million, reflecting a 66.8% increase year-on-year[25] - The net loss turned into a net profit of approximately HKD 22.2 million, primarily due to an increase in revenue and fair value gains[25] - For the year ended December 31, 2021, total revenue was approximately HKD 245.0 million, representing a 39.2% increase from HKD 176.0 million in 2020[37] - The sales cost for the year was approximately HKD 174.1 million, an increase of 30.4% year-on-year, consistent with revenue growth[39] - Gross profit increased by HKD 28.4 million to approximately HKD 70.9 million, with a gross margin rising from 24.1% to 28.9%[40] Liquidity and Financial Position - Current ratio improved to 4.5 in 2021 from 3.2 in 2020, indicating better liquidity[13] - The group’s debt-to-equity ratio, current ratio, and quick ratio as of December 31, 2021, were approximately 13.7%, 4.5, and 2.9 respectively, compared to 19%, 3.2, and 2.3 as of December 31, 2020[51] - As of December 31, 2021, the total cash and cash equivalents, total liabilities, and total equity of the group were approximately HKD 28.6 million, HKD 38.2 million, and HKD 133.8 million respectively, compared to HKD 67.6 million, HKD 53.4 million, and HKD 133.3 million as of December 31, 2020[51] - The company held financial assets with a fair value of HKD 36.1 million as of December 31, 2021, with fair value gains and profits from sales amounting to approximately HKD 14.2 million and HKD 3.2 million, respectively[27] Market and Growth Strategies - The company aims to strengthen its market position in Hong Kong and expand into the second-hand handbag and luxury watch markets[19] - Future growth strategies include opening retail stores in local shopping malls and negotiating rent reductions to control costs[19] - The company plans to continue monitoring market trends and invest in brand and business development for sustainable growth[18] - The outlook for 2022 remains cautious due to ongoing pandemic challenges, but recovery is anticipated if vaccination efforts succeed[18] Sales and Revenue Insights - Sales in Hong Kong increased by 40.8% to approximately HKD 242.9 million, driven by five "Milan Station" retail stores and eight "THANN" retail stores[27] - The Macau market revenue decreased by 40.0% to approximately HKD 2.1 million, impacted by the recovery of the gaming and tourism sectors[29] - The handbag category accounted for over 81.9% of total revenue, with sales from unsold products increasing to approximately HKD 192.4 million, representing 78.5% of total revenue[35] - The retail sales value in December 2021 was estimated at HKD 33.3 billion, a 6.1% increase compared to December 2020, indicating a recovery in the retail sector[23] Inventory Management - Inventory turnover days decreased to 91 days in 2021 from 107 days in 2020, reflecting improved inventory management[13] - Total inventory as of December 31, 2021, was HKD 49.8 million, up from HKD 37.8 million in 2020, with inventory turnover days decreasing from 107 days to 91 days[41] - The group’s inventory includes handbags, skincare products, and other related items, with future salability dependent on changing consumer preferences and fashion trends[196] Corporate Governance and Management - The company has adhered to all applicable provisions of the corporate governance code during the reporting year[65] - The board consists of six members, including three executive directors and three independent non-executive directors, with at least one independent director possessing professional and accounting qualifications as required by listing rules[68] - The company aims to enhance shareholder value through effective governance and decision-making processes[78] - The company encourages continuous professional development for directors, requiring them to submit signed training records quarterly, although no specific training courses were reported for the year[76] - The company has adopted a diversity policy, emphasizing the importance of diverse perspectives and skills in meeting the company's business needs[79] Risk Management and Compliance - The company is committed to compliance with relevant laws and regulations, with no known significant non-compliance issues reported during the year[185] - The company faces strategic, operational, and financial risks due to unpredictable external market conditions[176] - The board confirmed the effectiveness of the risk management and internal control systems as of December 31, 2021[108][116] Employee and Compensation Policies - The number of employees increased to 69 from 61 in the previous year, reflecting the company's growth strategy[50] - Selling expenses amounted to approximately HKD 51.1 million, representing 20.9% of total revenue, up from 18.5% in 2020[46] - The company regularly reviews compensation and benefits policies to retain loyal employees, considering individual performance and industry standards[173] Environmental and Social Responsibility - The company has adopted an environmental and social responsibility policy, implementing various energy-saving and waste-reduction measures in daily operations[172] - The company actively engages with stakeholders to share its environmental and social responsibility initiatives[172] Auditor and Financial Reporting - The company has appointed a new auditor, Changqing (Hong Kong) CPA Limited, effective January 18, 2022, following the resignation of the previous auditor[187] - The Audit Committee held two meetings during the reporting year and reviewed the financial reporting procedures and internal control systems[95][97] - The auditor's fees for the year amounted to HKD 620,000 for audit services[98]
米兰站(01150) - 2021 - 年度财报