Economic Environment - The year 2023 was challenging for major economies, particularly in the UK and Europe, due to high inflation and interest rates, leading to depressed consumer sentiment [9]. - The economic growth rate in Europe and the United States is expected to slow down to 1.4% in the coming year, while the Asia-Pacific region is projected to grow at 4.2% [13]. - The global economy's growth rate is forecasted at 2.9% for the upcoming year [13]. - The overall retail environment is expected to remain challenging in 2024, with cautious consumer spending anticipated due to economic headwinds [19]. Retail Industry Performance - The retail industry has weakened, with various brands experiencing inventory accumulation as a result of decreased consumer purchasing power [9]. - The retail industry has been significantly impacted by inflation and high interest rates, leading to excessive inventory among many brands [14]. - Clarks' direct sales channel revenue was lower than expected due to high inflation and interest rates, necessitating impairment on right-of-use assets and property, plant, and equipment [16]. - The increase in Bossini's revenue was partially offset by a decrease in online channel business due to the consolidation of traditional e-commerce platforms in the PRC [25]. Company Strategy and Development - The company has focused on cost reduction and efficiency improvements to maintain stable cash flow and ensure sustainable business development [9]. - The Group aims to develop its international consumer goods business sustainably, focusing on the China market and overseas presence [13]. - The Group plans to open more directly-operated stores in first-tier cities to increase market penetration and build a young, fashionable brand image [11]. - The Group will continue to seek quality merger and acquisition opportunities to enrich its brand portfolio [15]. Financial Performance - The total revenue for the Group was HK$11,219,416, a 62.6% increase from HK$6,900,390 in 2022 [22]. - Clarks revenue reached HK$9,646,492, accounting for 86.0% of total revenue, representing a 79.1% increase from HK$5,386,883 in 2022 [22]. - Bossini generated revenue of HK$609,502, which is 5.4% of total revenue, showing a 2.7% increase from HK$593,509 in 2022 [22]. - The Group's gross profit for the year was HK$5,130.3 million, representing a 62.3% increase from HK$3,160.6 million in 2022, consistent with revenue growth [27]. Brand and Product Development - The Group increased its holdings in the Clarks brand to 51%, becoming the largest shareholder [11]. - The rebranding program for Bossini has been implemented, focusing on a new brand positioning with an emphasis on cycling [11]. - Clarks has realigned its products and channels, enhancing online shopping platforms in European and American markets to drive online sales [11]. - The new brand bossini.X will focus on sports outerwear and light outdoor designs to attract energetic young consumers in 2024 [11]. Operational Efficiency - Inefficient stores in Mainland China will be closed to enhance operational efficiency while deploying channels suitable for new product positioning [11]. - The Group anticipates that restructuring expenses incurred by Clarks will lead to reduced operational costs and improved profitability in 2024 [16]. - The Group is focused on prudent resource deployment and cost control to maintain stable cash flow amid market uncertainties [19]. Corporate Governance and Leadership - Mr. Li Ning has been the chairman and CEO since June 2010, overseeing overall management and strategic development of the Group [48]. - The Group's remuneration policy is supported by professional consultants to ensure competitiveness and business growth [46]. - The Board consists of three executive directors, three non-executive directors, and four independent non-executive directors, ensuring a balanced composition [110]. - The Company is committed to high standards of corporate governance, with a detailed report included in the annual report [99]. Employee and Workforce Management - Staff costs for the year ended December 31, 2023, amounted to HK$2,249.3 million, up from HK$1,398.6 million in 2022, with approximately 5,400 full-time employees [46]. - The total number of staff increased to 762 in 2023, up from 737 in 2022, reflecting a growth of approximately 3.4% [164]. - The company implemented family-friendly measures, including breastfeeding rooms and kindergartens, to support work-life balance for employees [162]. - The company has established internal policies to promote equity, diversity, and inclusion, ensuring a discrimination-free work environment [162]. Environmental, Social, and Governance (ESG) Initiatives - The Group's ESG governance is overseen by the Board, which is responsible for formulating and reviewing ESG strategies and objectives [140]. - The Group emphasizes compliance with the HKEX's "Guidelines on Climate Disclosures" in managing climate-related risks [145]. - The Group has established a robust risk management and internal control system that incorporates ESG-related risks, including climate change and public health [145]. - The Group aims to enhance compliance and integrated ESG governance through stakeholder engagement activities [142]. Supply Chain Management - The Group emphasizes sustainable supply chain management by evaluating suppliers based on environmental and social performance indicators [194]. - Clarks has implemented a product quality control system to monitor social and environmental impacts along the supply chain [194]. - The Group prioritizes cooperation with local suppliers to support the local economy and promote green procurement [196]. - The total number of suppliers as of the end of the reporting period is 3,101 [199].
非凡领越(00933) - 2023 - 年度财报