Financial Performance - The company reported a significant loss attributable to shareholders of HKD 2.339 billion, compared to a loss of HKD 664 million in the previous year[29]. - Total revenue for the fiscal year ended December 31, 2023, was HKD 5.912 billion, a 16% decline from HKD 7.063 billion in the previous year, impacted by macroeconomic challenges in Europe[21]. - The group recorded a total operating loss of HKD 642 million, with retail losses of HKD 390 million and online store losses of HKD 33 million[75]. - The company reported a basic and diluted loss per share of HKD 0.83 for the year ended December 31, 2023, compared to HKD 0.23 for the previous year[56]. - The company faced a net cash outflow of HKD 1.596 billion, with cash, bank balances, and deposits amounting to HKD 435 million as of December 31, 2023[43]. Revenue Breakdown - The revenue mix for the company was 37% from e-commerce, 36% from wholesale, 25% from owned retail stores, and 2% from franchising[22]. - E-commerce revenue decreased by 15% to HKD 2.184 billion, with a double-digit percentage drop in order volume attributed to reduced visitor traffic and lower conversion rates[23]. - Wholesale revenue fell by 20% to HKD 2.102 billion, impacted by a sluggish European market, particularly in Germany, with a 22% decrease when adjusted for fixed exchange rates[24]. - Retail revenue declined by 14% to HKD 1.501 billion, with a 17% decrease when adjusted for fixed exchange rates[26]. - Revenue from the European market was HKD 3,597 million for the year ended December 31, 2023, down from HKD 4,383 million in the previous year, a decrease of about 17.88%[106]. Cost and Expenses - Operating expenses for the year amounted to HKD 5.055 billion, a 44% increase year-on-year, primarily due to significant investments in global workforce and marketing efforts[4]. - Employee costs increased to HKD 1,281 million for the year ended December 31, 2023, compared to HKD 1,150 million for the previous year, representing an increase of approximately 11.39%[85]. - The company recorded a total depreciation expense of HKD 666 million for the year ended December 31, 2023, compared to HKD 671 million in the previous year, showing a minor decrease of approximately 0.75%[94]. Inventory and Receivables - Inventory as of December 31, 2023, was HKD 1.301 billion, a 27% decrease from HKD 1.777 billion the previous year, due to improved inventory management[6]. - Net trade receivables increased by HKD 44 million or 9% to HKD 516 million as of December 31, 2023, influenced by IT system updates affecting collection processes[7]. - As of December 31, 2023, the total accounts receivable net amount is HKD 516 million, an increase of 9.3% from HKD 472 million as of December 31, 2022[114]. Cash Flow and Financing - The company reported a total cash, bank balances, and deposits of HKD 435 million, a decrease of HKD 1.577 billion from HKD 2.012 billion the previous year, primarily due to cash outflows from operating activities[8]. - The company has adopted a restructuring plan to improve liquidity and financial condition, with cash flow forecasts covering the next 12 months[147]. - The company is evaluating various options to meet future funding needs while managing its liquidity through short-term bank deposits[180]. Restructuring and Operational Initiatives - The company is implementing a restructuring plan to control operating and administrative costs, including optimizing human resources and streamlining logistics operations[44]. - The company is focused on developing high-end styles for the North American market while improving product offerings for existing European customers[16]. - The company is implementing important initiatives across departments in 2024 to enhance operational efficiency and customer satisfaction[2]. - The company is actively enhancing customer engagement through captivating media content on social media, resulting in excellent engagement metrics for its online store[190]. Market and Strategic Partnerships - The company established significant partnerships with major retailers such as Nordstrom and Urban Outfitters, resulting in 46 new distribution points[1]. - The company formed new partnerships for marketing initiatives in key European markets, supporting the relaunch of the brand[34]. - The business expansion plan focuses on strategically entering new markets, acquiring new wholesale customers, and actively exploring overseas markets such as the United States[62]. Challenges and Future Outlook - The company has initiated a voluntary bankruptcy process for a wholly-owned subsidiary in Switzerland, with the application submitted in March 2024, reflecting ongoing operational challenges[43]. - Management is confident that the company will be in a favorable position for sustainable profitability after completing the restructuring efforts[193]. - The company is exposed to foreign exchange risks primarily from the Euro and US Dollar due to its global operations[157].
思捷环球(00330) - 2023 - 年度业绩