Financial Performance - Revenue for the year ended March 31, 2022, was HK$692.5 million, a decrease of 1.6% from HK$706.3 million in 2021[4] - Net loss for the year was HK$106.5 million, compared to a net loss of HK$81.6 million in the previous year, representing a 30.5% increase in losses[4] - Total assets as of March 31, 2022, were HK$1,182.0 million, down from HK$1,357.8 million in 2021, indicating a decrease of 12.9%[4] - Shareholders' funds decreased to HK$378.1 million in 2022 from HK$487.5 million in 2021, a decline of 22.4%[4] - The Group's results for the year ended March 31, 2022, are detailed in the consolidated income statement and statement of comprehensive income on page 45[20] - Group turnover decreased by 1.95% to HK$692.5 million compared to HK$706.3 million in FY2020/21[125] - Loss attributable to equity holders of the Company was HK$106.7 million, up from HK$81.9 million in FY2020/21[125] - Total comprehensive loss for the year was HK$109,849,000, compared to a loss of HK$42,504,000 in the previous year[191] - Total equity decreased to HK$384,748,000 from HK$494,597,000, a reduction of about 22.2%[192] - The company reported a loss for the year of HK$106,716,000 for the fiscal year ending March 31, 2022, compared to a loss of HK$106,460,000 in the previous year, indicating a slight increase in losses[198] Dividends and Reserves - The company did not declare any interim or final dividends for the year ended March 31, 2022[4] - No interim dividend was paid during the year, consistent with the previous year[20] - The directors did not recommend the payment of a final dividend for the year ended March 31, 2022, mirroring the previous year's decision[20] - As of March 31, 2022, the distributable reserves available for distribution as dividends to shareholders were HK$32.737 million, unchanged from the previous year[20] - The company's reserves decreased from HK$382,873,000 on April 1, 2021, to HK$273,499,000 by March 31, 2022, representing a reduction of approximately 28.6%[198] Operational Insights - The principal activity of the company is investment holding, with no significant events occurring since the end of FY2021/22 apart from the COVID-19 pandemic[8] - The company aims to enhance customer engagement through a diverse range of lifestyle products, including trendy and smart watches[8] - The multi-branded retailer "CITY CHAIN" continues to attract customers seeking fashionable watch options[8] - The Group's watch wholesale business includes a large network of independent dealers in Hong Kong, Singapore, and Malaysia, with many partnerships lasting over 25 years[11] - The Group's suppliers have been partners for over 20 years, with credit terms ranging from 30 to 90 days[11] - The Group's online business in Hong Kong sustained a growing trend with a year-on-year growth of 20.4% recorded[131] - Business recovery was noted since April 2022, with annual sales growth of approximately 22% in Hong Kong throughout April and May 2022[131] Inventory and Cash Flow Management - Effective inventory management is crucial, with systems in place to monitor inventory levels, aging, and turnover ratios, adopting a conservative approach to stock ordering[14] - Inventory balance declined by 2.5% or HK$6.6 million compared to the balance at 31 March 2021 due to strict inventory control[128] - Cash flow management was strengthened due to a challenging business environment, with measures adopted to improve liquidity[14] - Cash inflow from operations was HK$92.2 million, with unutilized banking facilities amounting to HK$82.7 million as of March 31, 2022[139] Management and Governance - The company confirms that Dr. Agnes Kwong Yi Hang will not seek re-election as an independent non-executive director after serving nearly 16 years[23] - Mr. Wallace Kwan Chi Kin has been with the Group since November 2011 and was appointed as CFO in July 2013, bringing 30 years of financial management experience[34] - The company has formal letters of appointment for its directors, outlining key terms and conditions[23] - The Group's directors have no service contracts that are not terminable within one year without compensation[23] - The company has a diverse board with members holding degrees from prestigious institutions, including the University of Hong Kong and the University of Manchester[34][35] Risks and Challenges - The Group faces risks from COVID-19 disruptions, impacting physical store operations due to lockdowns and social distancing measures[11] - The Group maintains prudent treasury management policies to address liquidity needs for both short-term and long-term operations[138] Audit and Compliance - The directors are responsible for preparing consolidated financial statements that provide a true and fair view in accordance with HKFRSs and the Companies Ordinance[1] - The audit aims to obtain reasonable assurance that the consolidated financial statements are free from material misstatement, whether due to fraud or error[2] - The auditor evaluates the appropriateness of accounting policies and the reasonableness of accounting estimates made by the directors[4] - The audit report is dated June 23, 2022, by RSM Hong Kong[10] Continuing Connected Transactions - The Group's continuing connected transactions included leasing properties with an expense of HK$7,883,000[79] - The annual cap for leasing properties was set at HK$7,883,000, indicating compliance with the Listing Rules[79] - The Group's auditor issued an unqualified letter regarding the continuing connected transactions, confirming compliance with the Listing Rules[78] - The continuing connected transactions constitute related party transactions, disclosed in the financial statements[118]

Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 306,229,000, a decrease of 2.8% compared to HKD 315,121,000 for the same period in 2020[4] - Gross profit for the same period was HKD 141,474,000, resulting in a gross margin of 46.2%, down from 46.7% in the previous year[4] - The net loss for the six months ended September 30, 2021, was HKD 49,289,000, slightly improved from a net loss of HKD 50,377,000 in the prior year[4] - The group reported a net loss of HKD 49,289,000 for the six months ended September 30, 2021[18] - The loss attributable to equity holders was HKD 49.3 million for the first half of 2021, compared to a loss of HKD 50.5 million in the same period of 2020[53] - The group reported a total comprehensive loss of HKD 52,935,000 for the six months ended September 30, 2021, compared to HKD 33,825,000 in the same period of 2020[6] Cash Flow and Liquidity - Cash flow from operating activities was HKD 42,551,000, a significant decrease of 65.4% compared to HKD 122,996,000 in the same period of 2020[10] - The company’s cash and cash equivalents decreased to HKD 121,206,000 from HKD 170,344,000, reflecting a decline in liquidity[10] - Current liabilities increased to HKD 747,422,000 from HKD 765,333,000, indicating a slight improvement in liquidity[8] - As of September 30, 2021, the group's current assets and current liabilities were approximately HKD 530.8 million and HKD 747.4 million, respectively, resulting in a current ratio of approximately 0.71[67] Assets and Liabilities - Total assets as of September 30, 2021, were HKD 1,277,936,000, down from HKD 1,357,838,000 as of March 31, 2021[8] - Total assets as of September 30, 2021, amounted to HKD 1,277,936,000, with total liabilities of HKD 836,274,000[20] - The total equity attributable to owners of the company was HKD 441,662,000 as of September 30, 2021[20] - The group's debt ratio increased to 85.3% as of March 31, 2021, compared to 70.2% previously, with net debt amounting to HKD 371.1 million[64] Inventory and Receivables - Inventory as of September 30, 2021, was HKD 281,066,000, an increase from HKD 267,303,000 as of March 31, 2021[8] - Trade and other receivables as of September 30, 2021, totaled HKD 145,414,000, a decrease from HKD 162,621,000 as of March 31, 2021[36] Segment Performance - The retail segment in Hong Kong, Macau, and mainland China generated revenue of HKD 122,229,000, while the rest of Asia contributed HKD 71,229,000[18] - The wholesale business reported revenue of HKD 112,771,000, leading to a total loss before tax of HKD 48,438,000 for the period[18] - The retail segment in Hong Kong, Macau, and mainland China experienced a loss of HKD 27,984,000, while the rest of Asia had a loss of HKD 11,302,000[18] - The wholesale segment achieved a profit of HKD 19,079,000, contributing to a total segment loss of HKD 20,207,000[18] Government Support and Expenditures - Government subsidies received during the period amounted to approximately HKD 4.6 million, down from HKD 22.9 million in the previous year[53] - Capital expenditure for the period was HKD 5.1 million, with a 10% reduction in the number of stores compared to the same period last year[54] Employee and Corporate Governance - The group had 968 employees as of September 30, 2021, down from 1,078 employees a year earlier[76] - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange rules, with some deviations noted[94] - The Audit Committee reviewed the effectiveness of the internal control system and financial reporting procedures for the six months ending September 30, 2021[98] Strategic Initiatives - The group implemented a store optimization strategy to enhance productivity and improve cost structure[54] - The group plans to continue investing in sustainable business development and integrating online and offline retail networks to expand market share[63] Shareholder Information - Huang Chuangzeng holds a total of 549,341,014 shares, representing approximately 52.49% of the issued share capital[88] - The company did not declare an interim dividend for the six months ended September 30, 2021[27] - The group did not recommend an interim dividend for the six months ended September 30, 2021[55]

Financial Performance - Revenue for the year ended March 31, 2021, was HK$706.3 million, a decrease of 31.7% compared to HK$1,034.8 million in 2020[4] - Net loss for the year was HK$81.6 million, a significant improvement from a net loss of HK$402.7 million in the previous year[4] - Loss attributable to equity holders of the company was HK$81.9 million, down from HK$402.9 million in FY2019/20[112] - Total comprehensive loss for the year was HK$42,504,000, down from HK$454,999,000 in 2020, showing a substantial recovery[167] - Loss before tax improved to HK$55,890,000 from HK$381,472,000, indicating a significant reduction in losses[167] - The Group reported a loss of HK$145.8 million for FY2019/20 after excluding non-cash expense items totaling HK$257.1 million[115] Assets and Liabilities - Total assets less liabilities and non-controlling interests as of March 31, 2021, were HK$1,357.8 million, down from HK$1,705.9 million in 2020[4] - Non-current assets decreased to HK$778,213,000 from HK$987,826,000, primarily due to a reduction in investment properties[168] - Current assets totaled HK$579,625,000, down from HK$718,089,000, with a notable decrease in inventories and trade receivables[168] - Total liabilities decreased to HK$863,241,000 from HK$1,168,814,000, reflecting improved financial health[171] - Net current liabilities of approximately HK$185.708 million[155] Shareholder Information - Shareholders' funds decreased to HK$487.5 million in 2021 from HK$530.4 million in 2020[4] - The company did not declare any interim or final dividends for the year ended March 31, 2021[4] - The Group's distributable reserves available for distribution as dividends to shareholders amounted to HK$32.737 million as of March 31, 2021, unchanged from 2020[20] - No interim dividend was paid during the year, consistent with the previous year[20] - The directors did not recommend the payment of a final dividend for the year ended March 31, 2021, similar to the previous year[20] Operational Highlights - The principal activity of the company is investment holding, with a focus on sustainable business practices and customer engagement[8] - The COVID-19 pandemic was noted as a significant event impacting the business during the fiscal year[8] - The Group's watch wholesale business includes a large network of independent dealers across Hong Kong, Singapore, Brunei, and Malaysia, with an average of 13% of dealers operating at least 2 points of sale[11] - The Group aims to enhance customer experience through a wide selection of lifestyle products, including trendy and smart watches[8] - The Group's online business in Hong Kong showed promising performance with escalating sales and satisfactory EBIT recorded in FY20/21[121] Risk Management - The Group faces risks related to COVID-19, including lockdowns and social distancing measures affecting physical store operations[11] - The Group's financial risks and management policies are detailed in the "Finance" section of the Management, Discussion and Analysis[14] - The Group will continue to monitor cash flow, operating costs, capital expenditure, and inventory management to address ongoing challenges[124] - The pandemic's direction and vaccine rollout will dictate the pace of economic recovery in the regions where the Group operates, indicating a challenging environment ahead[124] Governance and Compliance - The company has formal letters of appointment for its directors, outlining key terms and conditions[26] - The company is committed to transparency, as evidenced by the detailed reporting of director interests and transactions[26] - The Group's operations are impacted by laws and regulations governing consumer protection and employment, which significantly affect retail business[14] - The Group reported no material non-compliance with applicable laws and regulations for the year ended March 31, 2021[20] - The Group has established a framework for compliance with Listing Rules related to connected transactions[86] Inventory and Asset Management - Effective inventory management is crucial, with systems in place to monitor inventory levels, aging, and turnover ratios, reflecting a conservative approach to stock ordering[14] - Group inventory decreased by HK$105.7 million or 28.3% to HK$267.3 million[112] - A provision for inventories of approximately HK$24.885 million was recognized in the consolidated income statement based on management's assessment[147] - The write-down of inventories to net realizable value was estimated by management through the application of judgment and the use of assumptions[147] Audit and Financial Reporting - The financial statements were prepared on a going concern basis, indicating significant management judgment in assessing future cash flows and funding requirements[155] - The audit procedures included challenging the inputs and assumptions used in cash flow projections and performing sensitivity analysis[155] - The auditor's report will describe key audit matters that were of most significance in the audit of the consolidated financial statements[163] - The overall presentation, structure, and content of the consolidated financial statements were evaluated to ensure they fairly represent the underlying transactions and events[161] Future Outlook - The financial impact of cost containment measures will continue to be reflected in FY2021/22, while the Group will accelerate investment in online business and further develop global marketing business models[124] - The Group intends to continue leasing office premises and parking spaces to avoid disruption to its business operations, ensuring terms remain on normal commercial terms[71] - The Group has implemented cost control measures and closed under-performing retail stores to strengthen liquidity in the foreseeable future[187]

Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 315,121,000, a decrease of 46.5% compared to HKD 593,686,000 for the same period in 2019[4] - Gross profit for the same period was HKD 147,117,000, down 50.5% from HKD 296,965,000 in 2019[4] - The net loss for the six months ended September 30, 2020, was HKD 50,377,000, an improvement of 25.4% compared to a net loss of HKD 67,518,000 in 2019[4] - Basic and diluted loss per share was HKD 4.83, compared to HKD 6.46 for the same period in 2019[4] - The total loss for the period was HKD 67,518,000, an increase from a loss of HKD 50,377,000 in the same period last year[25] - The group reported a loss before tax of HKD 58,879,000 for the period, compared to HKD 45,143,000 in the previous year[25] - The group reported a pre-tax loss of HKD 50,494,000 for the six months ended September 30, 2020, compared to a loss of HKD 67,627,000 for the same period in 2019[36] - Basic loss per share for the six months ended September 30, 2020, was HKD (4.83), an improvement from HKD (6.46) in the prior year[37] Revenue Breakdown - Total revenue for the six months ended September 30, 2020, was HKD 694,352,000, a significant increase from HKD 370,111,000 in the same period of 2019[20] - The retail segment in Hong Kong, Macau, and mainland China generated revenue of HKD 309,004,000, up from HKD 120,902,000 year-over-year[25] - The wholesale business reported revenue of HKD 242,690,000, compared to HKD 159,402,000 in the previous year[25] - Revenue from Greater China business decreased by 60.9% to HKD 120.9 million (1H 2019: HKD 309.0 million) with an EBITDA loss of HKD 24.2 million[69] - Southeast Asia operations saw a 37% year-on-year revenue decline to HKD 89.8 million (1H 2019: HKD 142.7 million), with an EBITDA loss of HKD 3.5 million[70] - The watch supply chain and wholesale trade segment's revenue fell by 26.5% to HKD 104.4 million (1H 2019: HKD 142.0 million), generating a profit of HKD 16.4 million[71] Assets and Liabilities - Total assets as of September 30, 2020, were HKD 1,597,728,000, down from HKD 1,705,915,000 as of March 31, 2020[10] - Non-current assets totaled HKD 915,418,000 as of September 30, 2020, down from HKD 987,826,000 as of March 31, 2020[10] - Current liabilities decreased to HKD 983,537,000 from HKD 1,017,630,000 as of March 31, 2020[10] - The total assets of the group as of September 30, 2020, were HKD 1,597,728,000, with total liabilities of HKD 1,094,452,000[23] - The group's debt ratio increased to 93.0% as of March 31, 2020, compared to 88.6% previously, with net debt at HKD 461.5 million[74] Cash Flow and Liquidity - Cash and cash equivalents increased to HKD 167,446,000 as of September 30, 2020, from HKD 127,016,000 at the end of March 2020[12] - Operating cash flow for the six months was HKD 103,823,000, an increase from HKD 79,645,000 in the previous year[12] - The group recorded other income of HKD 62,116,000 for the six months ended September 30, 2020, compared to HKD 24,754,000 in the previous year[31] - The group implemented measures to enhance liquidity and reduce costs amid the pandemic[65] Cost Management - The group’s administrative net expenses amounted to HKD 14,059,000, contributing to the overall loss[25] - The group’s financial costs for the period were HKD 17,442,000, impacting overall profitability[20] - The group reported a decrease in employee benefits expenses to HKD 86,702,000 for the six months ended September 30, 2020, from HKD 138,071,000 in 2019[33] - Capital expenditure significantly reduced by 83.5% compared to the same period last year[65] - The group reduced capital expenditure to HKD 1.4 million from HKD 8.5 million in the previous year[86] Corporate Governance and Management - The company has complied with the corporate governance code except for certain deviations regarding the roles of the chairman and CEO[100] - The audit committee reviewed the effectiveness of the internal control system and financial reporting procedures for the six months ended September 30, 2020[103] - The remuneration committee confirmed and approved the annual salary and bonus plan for executive directors for the fiscal year ending March 31, 2021, on November 26, 2020[105] - The board of directors includes Chumphol Kanjanapas as Chairman and CEO, and Kwan Chi Kin as CFO[110] Shareholder Information - The group did not recommend the payment of an interim dividend for the six months ended September 30, 2020[34] - No interim dividend was recommended for the six months ended September 30, 2020, compared to zero per share in 2019[66] - The company did not repurchase any shares during the period[98] - As of September 30, 2020, the total shares held by Mr. Huang Chuangzeng amounted to 549,341,014, representing approximately 52.49% of the issued share capital[94] Strategic Developments - The company did not disclose any new strategies or market expansions during the reporting period[96] - The group has not engaged in any speculative derivative trading or significant investment plans[76][79] - The group has entered into a temporary agreement to sell a subsidiary for a total consideration of HKD 108 million[79] - The number of stores decreased by 16.3% compared to the same period last year as part of the strategy to optimize the store portfolio[65] - The group anticipates ongoing economic challenges due to the pandemic, with measures implemented to adapt to the changing environment[72]

Financial Performance - Revenue for the year ended March 31, 2020, was HK$1,034.8 million, a decrease of 29% compared to HK$1,457.8 million in 2019[4]. - Net loss for the year was HK$402.7 million, significantly higher than the loss of HK$34.4 million in 2019[4]. - Total assets as of March 31, 2020, were HK$1,705.9 million, down from HK$1,981.7 million in 2019[4]. - Shareholders' funds decreased to HK$530.4 million from HK$985.0 million in 2019[4]. - The Group incurred a net loss of approximately HK$402.684 million for the year ended March 31, 2020[200]. - Total comprehensive loss for the year amounted to HK$454,999, a significant decline from a comprehensive income of HK$162,447 in 2019[180]. - The company reported a basic and diluted loss per share from continuing operations of HK$38.50, compared to HK$13.82 in 2019[177]. - Loss attributable to equity holders of the company was HK$402.9 million, reflecting the impact of socio-political issues, the US-China trade war, and the COVID-19 pandemic[97]. Dividend and Shareholder Returns - The company did not declare any dividends for the year ended March 31, 2020, maintaining the trend from previous years[4]. - The board does not recommend the payment of a final dividend for the year ended March 31, 2020[100]. - The Group's distributable reserves available for distribution as dividends to shareholders amounted to HK$32.737 million as of 31 March 2020, unchanged from 2019[27]. - No interim dividend was paid during the year, consistent with 2019[27]. - The directors did not recommend the payment of a final dividend for the year ended 31 March 2020, similar to 2019[27]. Impact of COVID-19 - The COVID-19 pandemic has had a significant impact on the company's operations, as detailed in the Management Discussion and Analysis section[8]. - The Group's operations faced severe strain due to COVID-19, resulting in varying periods of lockdowns and mandatory social distancing, significantly impacting physical store operations[14]. - City Chain Group accelerated investment in e-commerce due to COVID-19, enhancing online sales and brand presence[103]. Inventory and Cost Management - Group inventory declined by 33.4% to HK$373.0 million, indicating strict inventory control measures[97]. - The Group adopts a conservative approach to ordering and purchasing stock to manage cash flow effectively, especially during challenging business environments[15]. - Selling expenses fell by 20.6%, primarily due to reduced rental expenses and overheads at shops[100]. - General and administrative expenses decreased by 21.6%[100]. - Capital expenditures were significantly reduced by 62.1% to HK$11.4 million from HK$30.1 million in FY2018/19[100]. Governance and Management - The company has maintained a stable governance structure with no changes in significant director roles during the reporting period[30]. - The company has a diverse board with members holding qualifications from prestigious institutions, including a PhD in Molecular Immunology and a M.Sc. in Operational Research[32]. - The Group Legal and Corporate Secretariat is led by Caroline Chong, who has been with the Group since 1997 and is a qualified barrister in England, Wales, and Hong Kong[32]. - The company expressed gratitude to staff for their commitment and hard work during the year[95]. Financial Position and Liquidity - Current assets were approximately HK$718.1 million, while current liabilities were HK$1,017.6 million, resulting in a current ratio of approximately 0.71[112]. - The Group's gearing ratio increased to 88.6% as of March 31, 2020, compared to 40.3% on March 31, 2019, with shareholders' funds at HK$530.4 million, down from HK$985.0 million[112]. - Cash inflow from operations was HK$159.1 million, with unutilized banking facilities amounting to HK$192 million as of March 31, 2020[112]. - The Group is closely monitoring cash flow, operating costs, and capital expenditure to address financial risks[109]. Audit and Compliance - The independent auditor's report emphasizes the importance of identifying and assessing risks of material misstatement in the consolidated financial statements, particularly due to fraud or error[163]. - The auditor evaluates the appropriateness of accounting policies and the reasonableness of accounting estimates made by the directors[164]. - The report concludes on the appropriateness of the going concern basis of accounting, highlighting potential material uncertainties that may affect the Group's ability to continue as a going concern[168]. - The audit committee is informed about significant audit findings, including any deficiencies in internal control identified during the audit[166]. Environmental and Social Responsibility - The Group's environmental policy is based on the principles of reduce, reuse, and recycle to minimize environmental impact[24]. - The report indicates that climate change and social issues may impact business decisions and actions[24]. - Further reporting on environmental issues is available in the Environmental, Social and Governance Report on pages 180 to 184[24].

Financial Performance - Revenue for the six months ended September 30, 2019, was HKD 593.686 million, a decrease of 21.1% from HKD 751.598 million in the same period of 2018[5] - Gross profit for the same period was HKD 296.965 million, down 22.5% from HKD 383.163 million year-on-year[5] - The loss from continuing operations for the period was HKD 67.518 million, compared to a loss of HKD 45.241 million in the previous year, representing a 49.3% increase in losses[5] - The basic and diluted loss per share from continuing operations was HKD (6.46), compared to HKD (4.33) in the previous year, indicating a worsening of 49.2%[5] - The group reported a loss before tax of HKD 58,879,000 for the period, with a total loss of HKD 67,518,000 after tax[45] - The loss attributable to equity holders of the company was HKD 67.6 million, compared to a profit of HKD 57.4 million in the first half of 2018[111] Cash Flow and Liquidity - Operating cash flow for the six months was HKD 102.150 million, an increase of 33.5% from HKD 76.531 million in the same period of 2018[12] - The company reported a net cash decrease of HKD 76.479 million for the period, with cash and cash equivalents at HKD 162.083 million as of September 30, 2019, down from HKD 281.700 million[12] - The group had cash inflows of HKD 79.6 million as of September 30, 2019, sufficient to meet foreseeable operational funding needs[123] - The group aims to strengthen liquidity and balance sheet to navigate the challenging operating environment[120] Assets and Liabilities - Total assets as of September 30, 2019, amounted to HKD 2,213.675 million, up from HKD 1,981.717 million as of March 31, 2019, reflecting a growth of 11.7%[10] - Current liabilities increased to HKD 1,068.655 million from HKD 958.613 million, indicating a rise of 11.5%[10] - The group’s total liabilities included unallocated liabilities of HKD 530,937,000, with total liabilities at HKD 1,292,041,000[48] - The group's total liabilities decreased from HKD 688,301,000 as of March 31, 2019, to HKD 642,302,000 as of September 30, 2019, reflecting a reduction of about 6.7%[79] Equity and Dividends - The company did not declare any dividends for the period, compared to HKD 198.830 million in the same period of 2018[5] - The company’s total equity attributable to shareholders decreased to HKD 921.634 million from HKD 992.100 million, a decline of 7.1%[10] - Shareholders' equity amounted to HKD 914.5 million as of September 30, 2019, down from HKD 985.0 million on March 31, 2019[122] - The group did not recommend an interim dividend for the six months ended September 30, 2019, compared to no dividend in 2018[57] Inventory and Receivables - The total inventory as of September 30, 2019, was HKD 515,955,000, a decrease from HKD 559,829,000 as of March 31, 2019, reflecting a reduction of 7.8%[69] - Trade and other receivables amounted to HKD 220,262,000 as of September 30, 2019, down from HKD 237,568,000 as of March 31, 2019, indicating a decline of 7.3%[69] - The company’s trade receivables net amount was HKD 89,701,000 as of September 30, 2019, compared to HKD 85,542,000 as of March 31, 2019, showing an increase of 7.5%[69] Accounting and Standards - The adoption of new accounting standards did not have a significant financial impact on the group’s financial statements[18] - The total assets increased by HKD 445,278,000 and total liabilities increased by HKD 445,269,000 as a result of the new accounting standard[25] - The company has not early adopted any new standards or amendments that are not yet effective as of April 1, 2019[30] Operational Highlights - The retail segment in Hong Kong, Macau, and mainland China generated revenue of HKD 309,004,000, while the wholesale segment contributed HKD 242,690,000[45] - The group generated rental and service income from related companies amounting to HKD 20,231,000 for the six months ended September 30, 2019, compared to HKD 13,622,000 for the same period in 2018, reflecting an increase of approximately 48.5%[92] - The group incurred rental expenses of HKD 8,100,000 for the six months ended September 30, 2019, up from HKD 7,594,000 in the same period of 2018, marking an increase of about 6.7%[95] Staff and Corporate Governance - The group employed 1,288 staff as of September 30, 2019, a decrease from 1,663 staff on September 30, 2018[133] - The audit committee reviewed the effectiveness of the internal control system for the six months ending September 30, 2019[153] - The company has complied with the corporate governance code, except for the separation of roles between the Chairman and CEO, which are held by Huang Chuangzeng[150]

Financial Performance - Revenue for the year ended March 31, 2019, was HK$1,457.8 million, a decrease of 3.4% from HK$1,509.1 million in 2018[4]. - Net loss for the year was HK$34.4 million, compared to a loss of HK$150.3 million in 2018, indicating a significant improvement[4]. - Total assets as of March 31, 2019, were HK$1,981.7 million, down from HK$2,651.9 million in 2018[4]. - Shareholders' funds decreased to HK$985.0 million from HK$1,020.6 million in 2018[4]. - Earnings per share for the year were a loss of HK$0.033, an improvement from a loss of HK$0.144 in 2018[4]. - Group turnover decreased by 3.4% to HK$1,457.8 million compared to HK$1,509.1 million in FY2017/18[87]. - Group net loss was HK$34.6 million, an improvement from a loss of HK$150.6 million in FY2017/18[87]. - Loss before income tax was HK$115,475,000, an improvement from a loss of HK$123,394,000 in the previous year[180]. - Total loss for the year was HK$34,382,000, significantly improved from a loss of HK$150,312,000 in the previous year[180]. - The company reported a profit from discontinued operations of HK$110,060,000, compared to a loss of HK$4,464,000 in 2018[180]. Dividends and Shareholder Returns - The company proposed a special dividend of HK$198.8 million for the year, reflecting a commitment to returning value to shareholders[4]. - The Group's distributable reserves available for distribution as dividends to shareholders amounted to HK$32,737,000 as of 31 March 2019, a decrease from HK$231,657,000 in 2018[12]. - No interim dividend was paid during the year, consistent with 2018[11]. - The directors did not recommend the payment of a final dividend for the year ended 31 March 2019, similar to the previous year[11]. - A conditional special distribution in cash of HK$0.19 per share was proposed, amounting to HK$198,830,000, which was approved by shareholders in April 2018[11]. - The total dividend paid for the year was HK$198,830,000, which is consistent with the previous year's payment of HK$199,130,000[196]. Operational Focus and Strategy - The company continues to focus on investment holding as its principal activity, with future developments discussed in the Management Discussion and Analysis section[6]. - The company aims to enhance customer engagement through a mix of traditional and social media platforms[6]. - The Group aims to form medium to long-term strategic brand partnerships with suppliers to share fashion trends and market information[9]. - The Group plans to continue operational and fiscal initiatives to reduce costs and improve efficiencies in FY2019/20[93]. - Investment in infrastructure and brand development will be prioritized to enhance customer interaction through omnichannels[93]. Inventory and Capital Management - Effective inventory management is crucial due to an average watch production lead time of 12 months, with systems in place to monitor inventory levels, aging, and turnover ratios[9]. - The Group has adopted a conservative approach to ordering and purchasing stock to enhance capital management and facilitate stock turnover[9]. - Group inventory decreased by 16.6% to HK$559.8 million compared to March 31, 2018[87]. - Capital expenditures were reduced by HK$28.3 million to HK$30.1 million in FY2018/19, compared to HK$58.4 million in FY2017/18[88]. Risk Management - The Group recognizes risks from fluctuations in global and local economic environments, political instability, and government activities, implementing strategies to mitigate these risks[8]. - The Group's financial risks and management policies are detailed in the "Finance" section of the Management, Discussion, and Analysis[9]. - The Group's ongoing transactions are subject to compliance with the Listing Rules related to connected transactions[56]. Governance and Management - The Company has a formal appointment process for its directors, ensuring clarity in terms and conditions[14]. - The Company has maintained a stable board of directors with no significant changes in directorship during the reporting period[14]. - The Company’s Chief Executive Officer, Mr. Joseph C. C. Wong, has been with the Company since 1986, providing long-term leadership[14]. - The Company has a diverse board with members holding various qualifications and experiences in finance, law, and engineering[15]. Employee and Labor Relations - The Group is aware of challenges in labor markets and employee expectations, emphasizing the importance of employee growth, respect, and rewards[8]. - As of 31 March 2019, the Group had 1,550 employees, a decrease from 1,656 employees as of 31 March 2018, excluding discontinued operations[97]. - The Group's remuneration policies are regularly reviewed to align with market practices in the countries where it operates[97]. Compliance and Legal Matters - There was no material non-compliance with consumer protection, employment, and personal data laws for the year ended 31 March 2019[11]. - The auditor issued an unqualified letter regarding the Group's continuing connected transactions, confirming compliance with relevant regulations[34]. - The Group's internal audit function reviewed and verified the continuing connected transactions, ensuring compliance with Listing Rules[32]. Financial Position and Assets - Non-current assets increased to HK$947,882,000 from HK$768,240,000, reflecting a growth of approximately 23%[185]. - Current assets decreased to HK$1,033,835,000 from HK$1,883,699,000, a decline of about 45%[185]. - Total liabilities decreased to HK$989,617,000 from HK$1,623,156,000, representing a reduction of approximately 39%[187]. - The company's total equity decreased to HK$992,100,000 from HK$1,028,783,000, a decline of about 4%[187].