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].