Financial Performance - The company's revenue for the fiscal year 2024 decreased by RMB 51.6 million to RMB 156.1 million, representing a decline of approximately 24.8% compared to RMB 207.7 million in 2023[4]. - The loss attributable to equity holders of the parent company decreased by RMB 33.1 million to RMB 109.4 million, a decline of approximately 23.2% from RMB 142.5 million in 2023[4]. - Total revenue decreased from RMB 207.7 million in 2023 to RMB 156.1 million in 2024, a decline of approximately 24.9%[15]. - Gross profit decreased from RMB 101.3 million in 2023 to RMB 81.1 million in 2024, a decline of approximately 19.9%, while the overall gross margin increased from 48.8% to 52.0%[17]. - The net loss for the year was reported at RMB 111.8 million in 2024, compared to RMB 144.1 million in 2023[28]. - Other income and gains increased from RMB 19.9 million in 2023 to RMB 33.6 million in 2024, an increase of approximately 68.8%[18]. - Selling and distribution expenses decreased from RMB 163.5 million in 2023 to RMB 139.1 million in 2024, a decline of approximately 14.9%[19]. - Administrative expenses increased from RMB 50.9 million in 2023 to RMB 55.9 million in 2024, an increase of approximately 9.8%[21]. Revenue Sources - Revenue from self-operated retail points decreased by RMB 47.4 million to RMB 123.9 million, a decline of approximately 27.7%, accounting for about 79.4% of total revenue[11]. - Revenue from third-party retailers decreased by RMB 1.8 million to RMB 9.1 million, a decline of approximately 16.5%, accounting for about 5.8% of total revenue[12]. - Revenue from online channels decreased by RMB 2.4 million to RMB 23.1 million, a decline of approximately 9.4%, accounting for about 14.8% of total revenue[12]. - Revenue from authorized brands decreased from RMB 71.6 million in 2023 to RMB 49.0 million in 2024, a decline of approximately 31.4%[15]. - The retail sales of outlet stores decreased by RMB 18.3 million to RMB 51.5 million, a decline of approximately 26.2%[11]. - Product sales through the WeChat store decreased from RMB 7.4 million in 2023 to RMB 5.4 million in 2024, a decline of approximately 27.0%[13]. Operational Metrics - Inventory turnover days increased from 541 days in 2023 to 548 days in 2024, while accounts payable turnover days increased from 31 days to 45 days[30]. - As of December 31, 2024, the net current assets amounted to approximately RMB 548.4 million, down from RMB 723.2 million as of December 31, 2023[31]. - The current ratio decreased to 4.0 times as of December 31, 2024, compared to 4.9 times as of December 31, 2023[31]. - The total number of retail points as of December 31, 2024, was 160, a decrease from 173 as of December 31, 2023[41]. - The sales from the self-developed O2O system remained stable at RMB 13.7 million in 2024, compared to RMB 13.8 million in 2023[46]. Strategic Initiatives - The company plans to optimize inventory levels and cash flow, enhance brand exposure on digital and social media platforms, and explore new opportunities in brand licensing and strategic investments in 2025[6]. - The company established two partnerships in Zhuhai focusing on high-growth areas such as new generation information technology and smart manufacturing[5]. - The company changed its name from China Apparel Holdings Limited to HCI International Holdings Limited to reflect its commitment to a new corporate image[5]. - The company plans to focus on cleaning up old inventory and optimizing cash flow as a priority for 2025[58]. Risks and Challenges - The company faces significant risks from fluctuations in consumer spending due to changes in the macroeconomic environment in China, which could adversely affect its business and financial performance[60]. - The company operates in a highly competitive retail and apparel market, facing competition from both international and domestic companies[61]. - The company faces significant risks if it fails to predict or meet changing consumer preferences and fashion trends, potentially leading to decreased sales and profits[62]. - The company relies heavily on third-party manufacturers and suppliers for production, and any disruption in their operations could adversely affect business performance[65]. - The company's business is susceptible to unexpected and abnormal climate changes, which can impact seasonal product sales[66]. - The company faces financial risks including foreign currency risk, credit risk, and liquidity risk[67]. - The outbreak of infectious diseases can lead to temporary closures of retail outlets, affecting product sales[68]. - The company may struggle to renew licensing agreements, which could impact its ability to design, produce, market, and sell licensed brand products[64]. Corporate Governance - The company is committed to high standards of corporate governance to ensure long-term shareholder returns and benefits to employees and the community[81]. - The board consists of 7 members, including 3 executive directors, 1 non-executive director, and 3 independent non-executive directors[87]. - The company has adhered to the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[89]. - All independent non-executive directors have confirmed their independence according to the relevant guidelines[90]. - The board has established an independence assessment mechanism to enhance its effectiveness and ensure strong independent judgment[91]. - The board is responsible for overseeing the company's business strategies, performance, and significant transactions[93]. - The audit committee held three meetings during the year to review the financial performance and compliance procedures for the fiscal year ending December 31, 2024[98]. - The company has established a whistleblowing procedure to allow employees to confidentially express concerns regarding financial reporting and internal controls[129]. Shareholder Information - The company will not recommend any final dividend for the year ending December 31, 2024, but a special final dividend of RMB 59.5 million was approved for the year ending December 31, 2023[59]. - The company's distributable reserves as of December 31, 2024, amount to approximately RMB 328.6 million, calculated under the Cayman Islands Companies Law[155]. - The top five customers accounted for approximately 22.02% of total sales, with the largest customer contributing 5.26%[157]. - The top five suppliers represented about 45.44% of total purchases, with the largest supplier accounting for 11.63%[157]. - The company has not established any preferential rights for existing shareholders regarding the issuance of new shares[151]. - At least 25% of the company's total issued share capital is held by the public as of the date of the annual report[190]. Employee and Management Information - The total employee cost for 2024 was RMB 228 million, a slight decrease from RMB 231 million in 2023[56]. - The company granted 162,534,000 shares to 11 employees as part of the share incentive plan, with the shares exercisable by October 31, 2024[49]. - The company has adopted a board diversity policy, considering various factors such as gender, age, cultural background, and nationality in its board composition[105]. - The current gender diversity in the board is 14.3% female, with a target to maintain at least this percentage[107]. - The overall workforce gender ratio shows 56.8% female and 43.2% male, indicating a strong commitment to gender diversity[107]. Future Outlook - The company is focused on sustainable growth through brand and product diversification[63]. - Future guidance indicates a commitment to sustainability initiatives, with plans to reduce carbon emissions by H% by 2025[10]. - The company is investing in new technology development, allocating $C million towards R&D to enhance product offerings and operational efficiency[5]. - Market expansion plans include entering D new regions, aiming to increase market share by E% over the next fiscal year[6]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the industry[7].
中国服饰控股(01146) - 2024 - 年度财报