Annual Report 2018

Stock Code: 1836

MISSION STATEMENT

OUR CORE VALUES

Stella is dedicated to providing its customers with a wide range of top quality and high-end footwear. We are customer-driven and passionate about our business, and conscious of providing the best quality in everything we present to our customers. In addition to promoting these core values, the management philosophy of the Company is to be fair, caring and respectful.

OUR MISSION:

TO MAKE THE BEST SHOES

Always seeking to fulfill our promise of delivering outstanding and unique footwear, we are guided at all times by our unwavering motto of "making the best shoes" and missions of:

We wish, within our selected business segments, to be the preferred partner for footwear products and associated services, contributing to an efficient and superior supply chain.

By being close to our customers we fulfill their needs with innovative, cost effective and high quality solutions. Through empathy, responsiveness and dependability we seek to earn their loyalty.

Our culture attracts and nourishes individuals who are energetic, committed and have a passion with a learning attitude for our business.

By striving to be the best in our business we achieve growth and increased value for our customers, employees and shareholders.

02Corporate Structure

03Corporate Profile

04Milestones

06Financial Highlights

09Chairman's Statement

13Management Discussion and Analysis

23Environmental, Social and Governance Report

39Corporate Governance Report

79Biographies of Directors and Senior Management

87Directors' Report

105Independent Auditor's Report

110Consolidated Statement of Profit or Loss and Other Comprehensive Income

111Consolidated Statement of Financial Position

113Consolidated Statement of Changes in Equity

114Consolidated Statement of Cash Flows

116Notes to Financial Statements

202Financial Summary

203Corporate Information and Financial Calendar 2018/2019

CORPORATE STRUCTURE

Wholly Foreign-Owned

Enterprise

Processing Factories

Contractual Arrangement

Stella Luna

What For

02 Stella International Holdings Limited ANNUAL REPORT 2018

CORPORATE PROFILE

is a leading developer and manufacturer of quality footwear and leather goods products and was listed on The Stock Exchange of Hong Kong Limited on 6 July 2007. We offer our brand clients a one-stop shop that combines elements of design, development and manufacturing.

Since 1982, Stella has developed strong working relationships with, and has produced quality shoes for, many global brand names. Our constantly expanding product range includes quality high-fashion, premium, casual, and increasingly, sports-fashion footwear. Our client base includes the world's leading sportswear and casual footwear brands, namely, Clarks, Merrell, Nike, Off-White, Rockport, Timberland, Under Armour and UGG, as well as leading brands in fashion footwear, such as Coach, Cole Haan, Michael Kors and Tory Burch.

We also design, develop and manufacture footwear for a number of high-fashion icons, such as 3.1 Phillip Lim, Alexander Wang, Balenciaga, Balmain, Prada, Stuart Weitzman and Via Spiga.

By leveraging our manufacturing expertise and the wide acceptance of Stella's products and industry recognition, we launched our branding business in 2006 under our own brands Stella Luna and What For. These brands have successfully expanded into China and Europe's footwear retail markets.

We have also started to penetrate into the handbag market and position ourselves as a total solution provider for leather products to premium customers. By leveraging our strong customer base, as well as our leather product experience, we are further investing in our design and development capability to provide a wide range of leather accessories to our customers.

Stella International Holdings Limited ANNUAL REPORT 2018

03

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Stella International Holdings Ltd. published this content on 03 April 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 03 April 2019 10:31:01 UTC