Financial Performance - For the year ended December 31, 2022, the company reported a revenue of HKD 7,063 million, a decrease of 15.1% compared to HKD 8,316 million for the year ended December 31, 2021[5]. - The gross profit for the year was HKD 2,878 million, down 28.8% from HKD 4,042 million in the previous year[5]. - The company recorded a net loss attributable to shareholders of HKD 664 million for the year, compared to a profit of HKD 381 million in the prior year[5]. - Total revenue for the year ended December 31, 2022, was HKD 10,564 million, with retail and wholesale contributing HKD 4,383 million and HKD 2,639 million respectively[32]. - The group reported a total loss of HKD 642 million, with retail losses of HKD 390 million and wholesale profits of HKD 318 million[32]. - The group experienced a significant decrease in operating profit compared to the previous year, with a drop from HKD 416 million to a loss of HKD 642 million[36]. - Total revenue for the year was HKD 7.063 billion, down 15% from HKD 8.316 billion in the previous year, primarily due to high inflation and geopolitical tensions affecting consumer confidence[78]. - The company’s gross profit decreased to HKD 2.878 billion for the year, down from HKD 4.042 billion in the previous year due to the decline in revenue and gross margin[79]. - The company’s total loss for the year was HKD 677 million, which includes various operational costs and impairments[43]. Assets and Liabilities - The total assets decreased to HKD 8,665 million as of December 31, 2022, from HKD 10,047 million a year earlier, representing a decline of 13.8%[14]. - The company's current assets net value was HKD 2,231 million, down from HKD 3,009 million, indicating a decrease of 25.9%[14]. - The total accounts receivable as of December 31, 2022, was 884 million HKD, a decrease of 35.2% from 1,365 million HKD as of December 31, 2021[56]. - Trade payables increased to 497 million HKD as of December 31, 2022, from 328 million HKD in the previous year, reflecting a growth of 51.6%[60]. - The total provisions as of December 31, 2022, amounted to 145 million HKD, an increase of 9.8% from 132 million HKD as of December 31, 2021[61]. - The company’s legal provisions increased to 52 million HKD in 2022 from 35 million HKD in 2021, marking a rise of 48.6%[61]. - The cash deposits included in non-current assets decreased to 360 million HKD in 2022 from 409 million HKD in 2021, a decline of 12%[52]. - As of December 31, 2022, the company had no external interest-bearing borrowings, resulting in a debt-to-asset ratio of 0%[107]. Cash Flow and Financing - The company reported a net cash outflow of HKD 557 million for the year ended December 31, 2022[16]. - The company is closely monitoring cash flow and optimizing its cost base to generate sufficient cash from operations[16]. - The board believes that the available cash and bank balances will be sufficient to meet financial obligations for the next twelve months[16]. - The company raised a net amount of HKD 689 million from a rights issue, with all proceeds fully utilized as per the proposed uses disclosed in the rights issue document[115]. - The company is currently assessing various options for future funding needs, although there are no immediate plans for further bank financing[110]. Operational Highlights - The company plans to continue improving its product supply to enhance operational cash generation[16]. - The company plans to continue expanding its online presence and enhancing its product offerings in the coming years[27]. - The online store segment showed strong performance, contributing HKD 2,558 million to total revenue[32]. - The company implemented its omnichannel strategy in 2022, aiming to enhance ESPRIT's omnichannel business capabilities starting in 2023, which will be a key driver for business growth and part of the international retail expansion plan[125]. - The flagship store in Düsseldorf, Germany, is undergoing its first renovation in over a decade, expected to be completed by mid-2023, enhancing the customer experience with improved design and a seamless omnichannel experience[126]. Market and Strategic Initiatives - The group operates primarily in Europe, Asia, and the Americas, focusing on retail and wholesale distribution of its international brand ESPRIT[27]. - The company has identified key areas for market expansion, including increased focus on e-commerce and strategic partnerships[27]. - The company launched dedicated e-stores in several new markets, including the US, Canada, Australia, and South Korea, enhancing its digital sales capabilities[83]. - The company opened pop-up stores in major global cities to enhance brand visibility, including locations in Hong Kong, Seoul, Los Angeles, and New York City[82]. - The company is upgrading its IT infrastructure and technology capabilities to improve customer relationship management and order management systems[84]. Sustainability and Innovation - ESPRIT's sustainability strategy focuses on using recyclable or renewable materials, engaging in industry initiatives to promote compliance with environmental and social governance standards[132]. - The company is reintroducing denim with improved styles, fabrics, and washing techniques, collaborating with leading manufacturers to reduce waste and water usage[130]. - The company established the ESPRIT Futura innovation and technology business center to accelerate brand development, with a second center opened in New York City in Q1 2023[80]. - ESPRIT launched 24 trendy products in the current season, including limited edition and innovative collections, revitalizing styles from the 1980s and appealing to both nostalgic customers and the younger generation[128]. Governance and Compliance - The audit committee consists of four independent non-executive directors who reviewed the accounting standards and internal control procedures for the fiscal year ending December 31, 2022[139]. - The company has complied with the principles of the Corporate Governance Code as outlined in Appendix 14 of the Listing Rules throughout the fiscal year ending December 31, 2022[148]. - The company did not purchase, sell, or redeem any of its shares during the fiscal year ending December 31, 2022[147]. - The company has adopted a new share incentive plan as of July 6, 2021, but no reward shares were issued during the fiscal year ending December 31, 2022, as management deemed it an inappropriate time[152].
思捷环球(00330) - 2022 - 年度业绩