思捷环球截至二零二二年六月三十日止六个月之中期报告

International Headquarters13th Floor, China United Centre28 Marble Road, North PointHong Kongt: + 852 3198 0330f: + 852 2362 5576For enquiries from investors and equity analysts, please contact:Investor relations department13th Floor, China United Centre28 Marble Road, North PointHong KongMs. LUI Jennifert: + 852 3198 0378e: Jennifer.Lui@esprit.com esprit-ir@esprit.comWebsitewww.espritholdings.comShare listingListing on The Stock Exchange of Hong Kong Limited since 1993Stock Code: 00330Level 1 sponsored American Depository Receipt program since 2015Stock Code: ESPGYAuditor■ PricewaterhouseCoopers Certified Public Accountants Registered Public Interest Entity AuditorPrincipal legal advisor■ DechertPrincipal share registrarMUFG Fund Services (Bermuda) Limited4th Floor North, Cedar House41 Cedar AvenueHamilton HM 12BermudaHong Kong branch share registrarTricor Secretaries Limited17/F, Far East Finance Centre16 Harcourt RoadHong KongRegistered officeClarendon HouseChurch StreetHamilton HM 11BermudaExecutive Directors■ Ms. CHIU Christin Su Yi (Chairperson)■ Mr. PAK William Eui Won (Chief Executive Officer and Chief Operating Officer)■ Mr. SCHLANGMANN Wolfgang Paul Josef■ Mr. WRIGHT Bradley StephenIndependent Non-executive Directors■ Mr. CHUNG Kwok Pan■ Mr. GILES William Nicholas■ Mr. HA Kee Choy Eugene■ Ms. LIU Hang-so■ Mr. LO Kin Ching JosephChief Financial Officer■ Mr. WONG Brian Shek KaeCompany Secretary■ Ms. FONG Yee MeiPrincipal bankers■ Hang Seng Bank Limited■ The Hongkong and Shanghai Banking Corporation Limited■ Deutsche Bank AGCorporate Information ContentsManagement Discussion and Analysis2Financial SectionIndependent Review Report10Interim Financial Information11Notes to the Condensed Consolidated Interim Financial Information16Other Information26Glossary of Terms31 2INTERIM REPORT 2322Management Discussion and AnalysisThe Company faced many challenges in the first half of 2022. The Group believes its dynamic corporate structure, current management team (the “Management”), and dedicated staff at ESPRIT were the core reasons allowing the Company to navigate a tough environment and remain profitable during the six months ended 30 June 2022 (the “Period”).The strategies instituted by the Management team allowed the Company to act and respond quickly to uncertainties on the Company’s business and operations, including supply chain disruptions, changes in economic conditions, increasing raw material prices, decrease in consumer confidence, discretionary spendings and escalating geopolitical tensions.In Europe, the conflict in Ukraine has suppressed consumer spending appetite and the effects from Russian sanctions have resulted in escalating energy costs and food prices. The global economic environment has taken a toll from the high inflation and interest rate hikes, and has affected the foreign exchange market. The Euro weakness against the US Dollar had a material impact on the Company, as most of the Company’s revenue is denominated in Euros, while the US dollar is the main currency used for majority of the Company’s sourcing activities. Disruptions to the supply chain including logistics in the Company’s principal sourcing regions have caused additional stress as well. The Company is actively and carefully monitoring the aforementioned issues and its effects on the operations of the Company, instigating measures to counter any detrimental effects thereto.Despite the challenging conditions cited above, the Company is pleased to inform shareholders and stakeholders that its outlook is generally optimistic in nature and would like to share new initiatives which will be beneficial to the Company’s prospects going forward, such as:1) Stringent cost control and cost cutting through corporate re-structuring and related measures. The Company will also instigate measures to mitigate against foreign exchange translation fluctuation;2) Closing unprofitable stores and outlets and renegotiating rental leases to ensure that the retail channel will re-emerge as a profitable and key segment for the Company;Management Discussion and Analysis3) Termination of product lines that have low gross profit margin, replacing them with collections and capsules with substantially higher margins. Our timely readjusting our sourcing will keep the obsolete inventories to a minimum level;4) Significantly investing in rebuilding ESPRIT’s brand equity, re-establishing and improving the ESPRIT brand image, retaining and regaining loyalties with long-time customers, and securing new customers, particularly the younger generation;5) Revamping the Company’s sales channels into an omni-channel structure with