Change Of Scandinavia A/S

Ledelsesberetning

Key activities The primary activities of the Company are design, production management and distribution of lingerie, swimwear, nightwear and other associated products. Development in the year The income statement of the Company for 2023/24 shows a loss of DKK 6,125,706, and at 30 June 2024 the balance sheet of the Company shows a positive equity of DKK 144,219,923. Because of the challenging market situation and the active decision to invest in gaining market share, the result of the year was a decline compared to last year. The management is overall not satisfied with the financial development. The past year and follow-up on development expectations from last year As a consequence of the challenging market situation and the active decision to invest in gaining market share the result of the year was a decline compared to last year. Market risks It is assessed that the Company is not exposed to any special business or financial risks apart from risks common to the industry. Foreign exchange risks The Company is exposed to general currency risks as regards its operations, however the risk mainly relates to CNY. The majority part of the Company’s purchasing of goods and material is done in CNY while the Company invoices in DKK, SEK, NOK, EUR, PLN and CAD. Targets and expectations for the year ahead We expect a slight 5% increase in revenue in constant currency and a 10m - 20m higher EBITDA in 2024/25. Research and development The Company’s intellectual capital resources are related to the development of products and future sales activities. Good quality, production of new products and the right market approach is sufficient to ensure return on the research and development activities. External environment The Company’s environmental impact on its surroundings is very limited. The Company strives to improve and optimize its energy consumption. Intellectual capital resources The Company intellectual capital resources is related to the development of products and sale activities. Development of new products and the right approach to the end user is sufficient for success. Uncertainty relating to recognition and measurement The measurement of certain assets and liabilities are based on accounting estimates performed by Management. The estimates are performed in accordance with the accounting policies applied and are based on assumptions and experiences considered realistic and reasonable by Management. Unusual events The result of the year has been affected by the overall macro-economic situation with increased inflation and interest rates which have decreased the purchase power of the consumers. The financial position at 30 June 2024 of the Company and the results of the activities of the Company for the financial year for 2023/24 have not been affected by any other unusual events. Subsequent events No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.