Gender Diversity and Corporate Governance - As of December 31, 2023, approximately 83% of the total workforce, including senior management, were female[11] - The Company has taken steps to promote gender diversity at all levels, including the Board and senior management[11] - The Company is committed to maintaining reasonable female representation in its workforce[11] - The Board has reviewed the Company's corporate governance practices and compliance with the Corporate Governance Code during the year[11] - A special resolution was passed on March 21, 2023, to amend the Bye-laws to conform to core shareholder protection standards set out in the Listing Rules[32] - Directors confirmed compliance with the required standards for securities transactions throughout the year[19] - The Company has a code of conduct regarding directors' securities transactions that aligns with the Model Code for Securities Transactions by Directors of Listed Issuers[19] - The Company is focused on developing a pipeline of potential successors to enhance Board diversity[11] Financial Performance - Revenue for the year ended December 31, 2023, was HK$604.2 million, an increase of 3.6% from HK$585.2 million in 2022[69] - Loss from operating activities was HK$213.2 million, compared to a loss of HK$122.1 million in the previous year, reflecting an increase in operational challenges[69] - Gross profit for the year was HK$305 million, up 12% from HK$273 million in the previous year, with a gross margin increase of 3 percentage points to 50%[93] - The company reported a loss from operating activities of HK$213 million, which is a 75% increase compared to a loss of HK$122 million in 2022[93] - Loss attributable to owners of the company was HK$223 million, compared to a loss of HK$132 million in 2022, resulting in a negative net profit margin of 37%[118] - The company reported a return on equity of -137%, a decline of 67 percentage points from -70% in the previous year[66] Liquidity and Financial Stability - Net cash increased by 99% to HK$185 million from HK$93 million in the previous year, enhancing liquidity[66] - The total liabilities to equity ratio decreased significantly to 161% from 327%, indicating improved financial stability[66] - The current ratio improved to 1.67 times in 2023 from 1.44 times in 2022, while the total liabilities to equity ratio decreased to 161% from 327%[177] - The Group did not have any bank borrowings as of December 31, 2023, maintaining a gearing ratio of 0%[177] Operational Efficiency and Inventory Management - Inventory turnover improved to 177 days from 201 days, indicating better inventory management[66] - The total staff cost recorded during the year was HK$209 million, down from HK$221 million in 2022, with 900 full-time equivalent employees as of December 31, 2023[182] - The Group's inventory turnover days decreased to 177 days in 2023 from 201 days in 2022[182] - The company is managing inventory levels by increasing discounts and adjusting its sales network to improve operational efficiency[130] Market Performance and Sales Growth - Same-store sales growth in Hong Kong SAR and Macau SAR was 5%, while Mainland China experienced a significant growth of 46%[80] - Same-store sales in Hong Kong SAR increased by 5% year-on-year, benefiting from a recovery in consumer willingness and tourist arrivals reaching 60% of 2019 levels[149] - Same-store sales in Macau SAR surged by 27% year-on-year, with visitor arrivals rebounding to 70% of 2019 levels[150] - In mainland China, revenue was HK$154 million, down from HK$166 million in 2022, but same-store sales increased by 46%[130] Future Outlook and Strategic Initiatives - Future outlook includes a focus on expanding the product line and enhancing market presence in existing regions[73] - The company plans to invest in new technology and product development to drive future growth[73] - The company plans to focus on enhancing operational efficiency, rebranding efforts, and optimizing its product portfolio to strengthen competitiveness[85] - The group plans to optimize the "bossini.X" brand through adjustments in brand positioning, product development, pricing systems, and sales channels, with the new products expected to launch in the second half of 2024[196] - The company anticipates a stable recovery in the retail market across mainland China, Hong Kong, and Macau, driven by increasing consumer demand and changing consumption preferences[190] - The Group is actively optimizing brand positioning and product development in response to changing consumer habits and economic conditions in mainland China[130] Capital Expenditure and Investments - Capital expenditure decreased by 33% to HK$33 million from HK$49 million in the previous year[93] - The company raised approximately HK$313 million through a rights issue to fund expansion and marketing activities[166] - The company plans to allocate HK$31 million for capital expenditure in mainland China and HK$63 million for marketing the "bossini.X" brand[166] Employee Development and Training - Efforts will be made to improve employee training and sales skills to increase conversion rates and average spending per transaction, while also enhancing social media engagement for product promotions[195]
BOSSINI INT'L(00592) - 2023 - 年度财报