Financial Performance - Milan Station Holdings Limited reported a gross profit margin of 23.5% for the year ended December 31, 2022, down from 28.9% in 2021[6]. - The company experienced a net loss margin of (19.4)% in 2022, compared to a profit margin of 9.0% in the previous year[6]. - Return on assets was (32.1)% in 2022, a significant decline from 12.8% in 2021[6]. - The group's total revenue decreased by approximately 4.8% to about HKD 233.3 million, down from approximately HKD 245 million last year[34]. - The gross profit was approximately HKD 54.8 million, a decrease of 22.7% compared to the previous year, with a gross margin of 23.5%[39]. - The net loss for the year was approximately HKD 45.2 million, compared to a profit of approximately HKD 22.2 million last year, primarily due to an increase in fair value losses on financial assets of about HKD 22.1 million[26]. - Revenue from the Hong Kong market accounted for 100% of total revenue, with no revenue generated from mainland China or Macau during the year[34]. - Sales of handbags, the most important product category, accounted for over 80.5% of total revenue, with sales decreasing to approximately HKD 187.7 million from HKD 200.6 million[36]. - The cost of sales increased by 2.5% to approximately HKD 178.5 million, primarily consisting of inventory costs from suppliers[38]. - The company reported a net loss attributable to owners of approximately HKD 45.9 million for the year ended December 31, 2022, compared to a profit of HKD 20.5 million in 2021, resulting in a loss per share of approximately HKD 0.607[49]. Market and Business Strategy - The company plans to open retail stores in local shopping malls in Hong Kong and negotiate rent reductions to control rental costs[17]. - Milan Station aims to expand its business in the second-hand handbag market and luxury watch trade while cautiously developing the mainland China market[18]. - The retail market in Hong Kong is showing signs of recovery, with government support measures expected to further boost the market[17]. - The unemployment rate in Hong Kong decreased to 3.5% during the last quarter of 2022, indicating an improvement in the local labor market[23]. - The total retail sales value in June 2022 was estimated at HKD 33.6 billion, reflecting a 1.2% increase compared to June 2021[23]. - The company will continue to monitor market trends and optimize its corporate strategy to create long-term value for shareholders[18]. Inventory and Assets - Total inventory as of December 31, 2022, was approximately HKD 44.5 million, down from HKD 49.8 million in 2021, with inventory turnover days increasing to 96 days from 91 days[40]. - For handbag products, inventory aging showed a decrease in the 0 to 90 days category to HKD 9.394 million in 2022 from HKD 16.039 million in 2021, while inventory over 1 year increased to HKD 18.419 million from HKD 13.807 million[41]. - The company holds financial assets with a fair value of HKD 20.1 million, with a recognized fair value loss of approximately HKD 22.1 million[26]. Corporate Governance and Management - The board consists of six members, including three executive directors and three independent non-executive directors, with one female director, achieving gender diversity at the board level[73]. - The company emphasizes a strong corporate culture aligned with its vision and business strategy, focusing on integrity and ethical standards[66]. - The board held four regular meetings during the reporting year, ensuring timely responses to investment opportunities and internal matters[73]. - The company has implemented training programs to enhance necessary standards of ethics and integrity among its employees[67]. - The company has adopted the corporate governance code as its own governance practices, ensuring effective accountability[64]. - The board has authorized executive directors and senior management to handle daily responsibilities, ensuring efficient operational management[73]. - The board of directors has demonstrated adequate commitment to the group's affairs, with all executive directors being suitably qualified and experienced to fulfill their roles effectively[74]. - The company has implemented a board diversity policy, emphasizing the importance of diverse skills, experiences, and perspectives among board members to enhance decision-making[84]. Risk Management and Compliance - The board is responsible for risk management and internal control systems, which aim to reduce operational risks rather than eliminate them[109]. - The company has not been aware of any significant non-compliance with relevant laws and regulations during the year[188]. - The company is committed to compliance with legal and regulatory requirements and has established policies to monitor adherence[110]. - The audit committee has reviewed the financial statements for the year ended December 31, 2022, and discussed audit, internal control, and risk management matters with management[189]. Environmental, Social, and Governance (ESG) - The company emphasizes the importance of environmental, social, and governance (ESG) management and reporting, with the board responsible for overseeing these issues[193]. - The environmental, social, and governance report for the year ended December 31, 2022, reflects the company's sustainable development performance and challenges[194]. - The company actively engages with stakeholders to enhance transparency and facilitate investor relations[200]. - An investor relations policy has been established to ensure timely and fair access to information regarding the company[200]. - The board regularly reviews ESG matters and takes appropriate measures to improve the company's ESG performance[199]. Employee and Director Compensation - The company has implemented a compensation and benefits policy to retain loyal employees, recognizing them as a key asset[176]. - The remuneration committee, consisting mainly of independent non-executive directors, held three meetings during the reporting year to assess director compensation and review senior management performance[88]. - As of December 31, 2022, there were 4 senior management members earning between 0 to 1,000,000 HKD and 1 member earning between 1,000,001 to 3,000,000 HKD[91]. - The compensation committee reviewed and recommended the year-end bonuses and compensation packages for executive directors and senior management, including salary adjustments[89].
米兰站(01150) - 2022 - 年度财报