Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was RMB 156.1 million, a decrease of 24.8% compared to RMB 207.7 million in 2023[3]. - Gross profit for the same period was RMB 81.1 million, down 19.9% from RMB 101.3 million, while the gross margin improved to 52.0%, up 3.2 percentage points from 48.8%[3]. - The operating loss narrowed slightly to RMB 122.3 million, a decrease of 2.2% from RMB 125.0 million in the previous year, resulting in an operating loss margin of 78.3%, an increase of 18.1 percentage points[3]. - Loss attributable to equity holders of the parent was RMB 109.4 million, a reduction of 23.2% from RMB 142.5 million in 2023, with basic loss per share improving to RMB (3.33) from RMB (4.34)[3]. - Total comprehensive loss for the year was RMB 106.7 million, compared to RMB 140.1 million in the previous year, indicating a significant reduction in overall losses[8]. - The company reported a loss before tax from continuing operations of RMB 111,816 thousand in 2024, compared to a loss of RMB 113,815 thousand in 2023, indicating a slight improvement[25]. - The net loss for the year was RMB 111.8 million in 2024, compared to RMB 144.1 million in 2023[85]. - The loss attributable to equity holders of the parent decreased by RMB 33.1 million to RMB 109.4 million in 2024, a decline of approximately 23.2% from RMB 142.5 million in 2023[86]. Assets and Liabilities - Non-current assets totaled RMB 433.6 million, an increase from RMB 418.0 million in 2023, while current assets decreased to RMB 729.0 million from RMB 906.5 million[10]. - The company's cash and cash equivalents decreased to RMB 100.8 million from RMB 226.4 million, reflecting a significant reduction in liquidity[10]. - The total equity attributable to equity holders of the parent decreased to RMB 971.1 million from RMB 1,127.1 million, indicating a decline in shareholder value[11]. - Total assets decreased to RMB 1,162,587 thousand in 2024 from RMB 1,324,595 thousand in 2023, reflecting a reduction of approximately 12.2%[25]. - The company's total liabilities decreased slightly to RMB 190,017 thousand in 2024 from RMB 193,606 thousand in 2023, a reduction of about 1.5%[25]. Revenue Breakdown - Revenue from external customers for apparel products and accessories decreased to RMB 156,082 thousand in 2024, down 24.8% from RMB 207,660 thousand in 2023[25]. - Revenue from self-operated retail points decreased by RMB 47.4 million to RMB 123.9 million in 2024, representing a decline of about 27.7% and accounting for approximately 79.4% of total revenue[66]. - Revenue from third-party retailers fell by RMB 1.8 million to RMB 9.1 million in 2024, a decrease of about 16.5%[68]. - Online sales revenue decreased by RMB 2.4 million to RMB 23.1 million in 2024, a decline of approximately 9.4%[68]. - Revenue from proprietary brands decreased by RMB 29.0 million to RMB 107.1 million in 2024, a decline of about 21.3%[71]. Expenses and Costs - Cost of sales decreased by RMB 31.3 million to RMB 75.0 million in 2024, representing a decline of approximately 29.4% compared to RMB 106.3 million in 2023[73]. - Employee benefits expenses, including salaries and wages, decreased to RMB 22,804,000 in 2024 from RMB 23,145,000 in 2023, a decline of about 1.5%[40]. - Selling and distribution expenses decreased by RMB 24.4 million to RMB 139.1 million in 2024, a decline of about 14.9% from RMB 163.5 million in 2023[76]. - Administrative expenses increased by RMB 5.0 million to RMB 55.9 million in 2024, an increase of approximately 9.8% from RMB 50.9 million in 2023[77]. Cash Flow - Cash and cash equivalents at the end of 2024 amounted to RMB 100.8 million, down from RMB 226.4 million in 2023[59]. - Net cash flow used in operating activities increased from RMB 8.6 million in 2023 to RMB 24.3 million in 2024, primarily due to an increase in inventory leading to cash outflow rising from RMB 12.2 million to RMB 29.5 million[91]. - Net cash flow used in investing activities was RMB 31.2 million, mainly due to an increase in short-term deposits exceeding three months by RMB 220.7 million and investments in associates amounting to RMB 55.0 million[92]. - Net cash flow used in financing activities included special final dividends paid of RMB 56.7 million and principal payments on lease liabilities of RMB 9.1 million[93]. Shareholder Returns - The company did not propose a special final dividend for the year, compared to a dividend of HKD 0.02 per share in the previous year[3]. - The company did not recommend a final dividend for the year ending December 31, 2024, compared to a special final dividend of RMB 59,501,000 approved for 2023[48]. - The board does not recommend any final dividend for the year ending December 31, 2024, while a special final dividend of RMB 59.5 million for the year ending December 31, 2023, was approved by shareholders[118]. Strategic Initiatives - The company continues to focus on its core business in apparel design, production, and sales, with no significant changes in operations reported during the year[13]. - The board has approved a share incentive plan to retain and motivate employees, managed through a trust[17]. - The share incentive plan aims to align employee interests with the company's operational and developmental contributions[17]. - The company plans to prioritize clearing old inventory and optimizing cash flow as a key objective for 2025[117]. - The company has outsourced the majority of its retail sales personnel and production workers, with approximately 599 employees outsourced as of December 31, 2024[114]. Corporate Governance - The board believes that high levels of corporate governance are crucial for protecting shareholder interests and enhancing corporate value[120]. - The audit committee has discussed risk management and internal control systems related to the preparation of the consolidated financial statements for the year ending December 31, 2024[124]. - The company's auditor has confirmed that the preliminary announcement data for the year ending December 31, 2024, aligns with the draft consolidated financial statements[124]. Other Information - The company has changed its name from "China Outfitters Holdings Limited" to "Huicheng International Holdings Limited" to better reflect its strategic business plans[112]. - The company expresses gratitude to its board members and employees for their hard work and contributions during a challenging year[128].
中国服饰控股(01146) - 2024 - 年度业绩