Financial Performance - The group's consolidated revenue for the six months ended September 30, 2022, decreased by 20.47% to HKD 373 million, compared to HKD 469 million in the previous year[4] - The gross profit margin and net profit margin declined to 14.43% and -0.32%, respectively, from 17.53% and 1.13% in the previous year[4] - The ODM business revenue fell by 25.06% to HKD 293 million, accounting for 78.55% of the group's total revenue[5] - Revenue from the ODM business in Europe and the US decreased by 7.03% to HKD 172 million and by 39.76% to HKD 100 million, respectively[5] - The brand eyewear distribution business saw a revenue increase of 5.41% to HKD 78 million, representing 20.91% of total revenue[6] - Revenue for the six months ended September 30, 2022, was HKD 373,460,000, a decrease of 20.4% compared to HKD 469,444,000 for the same period in 2021[30] - Gross profit for the same period was HKD 53,890,000, down 34.5% from HKD 82,315,000 year-on-year[30] - The company reported a loss before tax of HKD 2,026,000, compared to a profit of HKD 5,108,000 in the previous year[30] - The net loss for the period was HKD 1,191,000, a significant decline from a profit of HKD 5,288,000 in the prior year[30] - Total comprehensive loss for the period amounted to HKD 31,940,000, compared to a comprehensive income of HKD 9,288,000 in the same period last year[31] Cash Flow and Financial Position - The group's cash flow from operations was HKD 4 million, with bank deposits and cash totaling HKD 308 million as of September 30, 2022[8] - The debt-to-equity ratio was 5.25%, indicating a stable financial position[8] - The net current assets and current ratio were approximately HKD 395 million and 2.67:1, respectively[9] - The net cash generated from operating activities was HKD 3,649,000 for the six months ended September 30, 2022[39] - The company incurred a net cash outflow of HKD 10,610,000 from financing activities during the same period[40] - The cash and cash equivalents at the end of the period were HKD 307,766,000, a decrease from HKD 301,833,000 in the previous year[40] - The company's total assets as of September 30, 2022, were HKD 759,015,000, down from HKD 798,048,000 as of March 31, 2022[35] - Current liabilities decreased to HKD 236,731,000 from HKD 242,327,000 in the previous period[34] Dividends and Shareholder Returns - The board declared an interim special dividend of HKD 0.015 per share, maintaining the same level as the previous year[10] - The company plans to distribute an interim special dividend of HKD 0.015 per share, totaling HKD 3,942,000, consistent with the previous year[66] - The company paid dividends amounting to HKD 3,942,000 during the period[40] Operational Challenges and Future Outlook - The company anticipates a challenging and uncertain business environment due to high inflation, high interest rates, and ongoing geopolitical tensions, which are expected to adversely affect profitability in the future[15] - The company plans to enhance overall efficiency by improving production efficiency, strengthening budget control, and optimizing supply chain processes[15] - The company aims to maintain flexible production capacity to quickly adjust operations based on market demand and mitigate potential supply chain disruptions[15] - The company is committed to prudent management of fixed asset investments while continuing to invest in strategically important assets for future growth[15] - The company will introduce a more flexible product range to cater to changing consumer preferences and behaviors[16] - The company will continue to explore new sales channels and distribution partners for its eyewear distribution business[16] - The company emphasizes its strong financial position and product development capabilities in the eyewear industry to overcome future challenges[16] Employee and Governance - The company employed approximately 3,400 staff as of September 30, 2022, with compensation linked to performance and market conditions[12] - The company has adopted a policy for board member diversity, ensuring a balanced composition of different genders and professional backgrounds[21] - The company maintains a board consisting of one female director and seven male directors as of September 30, 2022[21] Shareholding Structure - As of September 30, 2022, United Vision International Limited holds 141,533,828 shares, representing 53.86% of the company's issued share capital[104] - David Michael Webb directly holds 9,640,000 shares and indirectly holds 16,782,000 shares through Preferable Situation Assets Limited, totaling 26,422,000 shares, which is 10.05% of the issued share capital[107] - FMR LLC holds 26,277,000 shares, accounting for 9.99% of the company's issued share capital[106] - Fidelity Puritan Trust directly holds 20,999,000 shares, representing 7.99% of the issued share capital[109] - Preferable Situation Assets Limited holds 18,346,000 shares, which is 6.98% of the issued share capital[108] - Yeo Seng Chong and Lim Mee Hwa each hold 13,160,000 shares, representing 5.01% of the issued share capital[104] - As of September 30, 2022, the company has no unexercised options under the old and 2004 share option schemes[97] - The maximum number of shares that can be issued under the 2014 share option scheme is 10% of the issued share capital as of August 22, 2014[97] - The Vision Trust, established by Gu Yi Yong and Gu Jia Yong, is the ultimate beneficiary of the shares held by United Vision International Limited[100] - As of September 30, 2022, no other directors or senior executives hold any shares or related interests in the company[100]

Financial Performance - Revenue for the year ended March 31, 2022, was HKD 876,741,000, an increase of 25% compared to HKD 701,671,000 in 2021[21] - Profit attributable to owners decreased slightly to HKD 9,000,000 from HKD 10,000,000 in the previous year, primarily due to a tax credit of HKD 7,000,000 in the prior fiscal year[25] - The group's consolidated revenue increased significantly by 24.93% to HKD 877 million for the year ended March 31, 2022, compared to HKD 702 million in 2021[27] - Gross profit for the year was HKD 158,751,000, up from HKD 130,373,000, indicating a year-over-year increase of about 21.7%[164] - The net profit attributable to the company's owners was HKD 8,655,000, compared to HKD 9,508,000 in the previous year, reflecting a decrease of approximately 9%[160] - The total comprehensive income for the year was HKD 18,803,000, compared to HKD 15,099,000 in the previous year, marking an increase of approximately 24%[161] Revenue Breakdown - The ODM business's revenue distribution shows Europe and the USA as the top two markets, accounting for 49.03% and 40.44% of total ODM revenue, respectively[25] - The ODM business revenue rose by 35.71% to HKD 722 million, accounting for approximately 82.33% of the group's total revenue[27] - The group's ODM revenue in Europe and the US grew by 45.68% to HKD 354 million and by 25.32% to HKD 292 million, respectively[27] - The brand contact lens business revenue decreased by 60.87% to HKD 9 million, representing only 1% of the group's total revenue[30] Operational Efficiency - The company has made continuous efforts in streamlining operations and reducing costs, positively contributing to profitability despite challenges faced during the year[25] - The company plans to enhance production efficiency, strengthen budget control, streamline organizational structure, and optimize supplier networks and logistics processes[36] - The company aims to maintain flexible production capacity to quickly adjust operations based on market demand and mitigate potential disruptions in the global supply chain[36] Financial Position - As of March 31, 2022, the group had cash and cash equivalents of HKD 324 million and outstanding bank borrowings of approximately HKD 40 million[30] - The debt-to-equity ratio was 5.15%, indicating a stable financial position for the group[30] - The average collection period for receivables improved to 83 days, and inventory turnover period improved to 51 days during the review year[30] - The total accounts receivable amounted to HKD 199,082,000, with a credit loss provision of HKD 11,617,000 as of March 31, 2022[142] - The company's equity attributable to owners increased by 1.7% to HKD 781,485 thousand in 2022 from HKD 770,147 thousand in 2021[168] Governance and Compliance - The board of directors consists of five executive directors and three independent non-executive directors, ensuring a balanced governance structure[50] - The company has complied with all applicable corporate governance code provisions during the fiscal year ending March 31, 2022[48] - The chairman and CEO roles are held by the same individual, which deviates from the corporate governance code, but the board believes this structure provides effective leadership[55] - The company is committed to high standards of corporate governance to enhance management and protect shareholder interests[48] Risk Management - The group continues to monitor foreign exchange risks closely, utilizing forward contracts to manage risks associated with currency fluctuations[32] - The company has established a structured risk management system with clear objectives, employing a top-down approach to identify, assess, and monitor risks[74] - No significant deficiencies were found in the company's risk management and internal control systems during the annual review conducted by the board[76] Shareholder Information - The company proposed a final special dividend of HKD 0.015 per share, amounting to approximately HKD 3,942,000[87] - The company maintains a dividend policy aimed at balancing sufficient liquidity for future development and distributing profits to shareholders[79] - The Vision Trust holds 141,533,828 shares, representing 53.86% of the issued share capital, owned by the chairman and vice-chairman[108] Investments and Assets - The group acquired properties, plants, and equipment at a cost of approximately HKD 16,838,000 to maintain existing facilities and upgrade production capabilities[93] - The carrying amounts of identified long-term assets were HKD 289,850,000 for properties, HKD 14,292,000 for plant and equipment, HKD 31,647,000 for right-of-use assets, and HKD 19,742,000 for intangible assets as of March 31, 2022[144] - The company’s financial assets measured at fair value through profit or loss increased to HKD 1,625 thousand in 2022 from zero in 2021, indicating new investment strategies[165] Employee and Stakeholder Relations - The company emphasizes the importance of maintaining long-term relationships with employees, suppliers, and customers[94] - As of March 31, 2022, the group employed approximately 3,500 staff members, with compensation based on performance, tenure, and market conditions[33] Future Outlook - The group anticipates a challenging and uncertain business environment due to the resurgence of COVID-19 and geopolitical tensions, which may lead to increased input prices and operational costs[36] - The company remains committed to creating long-term value for stakeholders and achieving sustainable growth despite the challenging business environment[37]

Financial Performance - The group's consolidated revenue for the six months ended September 30, 2021, increased significantly by 61.17% to HKD 469 million, compared to HKD 291 million in the previous year[5]. - The gross profit margin improved to 17.53%, up from 13.22% in the previous year, reflecting enhanced profitability[5]. - Total revenue for the six months ended September 30, 2021, was HKD 469,444,000, an increase from HKD 291,040,000 in the same period last year, representing a growth of 61.3%[33]. - Gross profit for the same period was HKD 82,315,000, compared to HKD 38,481,000 in the previous year, indicating a significant increase of 114.2%[33]. - The company reported a profit before tax of HKD 5,108,000, a turnaround from a loss of HKD 13,362,000 in the prior year[33]. - Net profit for the period was HKD 5,288,000, compared to a loss of HKD 12,008,000 in the same period last year[33]. - Basic earnings per share for the period was HKD 2.31, compared to a loss per share of HKD 4.59 in the previous year[35]. - The company reported a loss of HKD 12,066,000 during the period, compared to a profit in the previous year, indicating a significant change in financial performance[41]. - The loss attributable to the company's owners for the period was HKD 6,061,000, an improvement from a loss of HKD 12,066,000 in the same period last year[86]. Revenue Breakdown - The revenue from the ODM business rose by 81.02% to HKD 391 million, accounting for 83.37% of the total revenue[5]. - Revenue from the ODM business in Europe and the US grew by 69.72% to HKD 185 million and 100.00% to HKD 166 million, respectively[5]. - The brand eyewear distribution business saw a revenue increase of 19.35% to HKD 74 million, representing 15.78% of total revenue[7]. - The brand contact lens business experienced a decline of 72.73% in revenue to HKD 3 million, accounting for only 0.64% of total revenue[8]. - The group reported total revenue of HKD 469,444,000 for the six months ended September 30, 2021, with eyewear products contributing HKD 465,322,000 and contact lenses contributing HKD 3,420,000[53]. - The group’s operating segments include eyewear products, contact lenses, and trademark licensing, with the eyewear segment generating HKD 465,322,000 in external sales[59]. Financial Position - The group maintained a strong financial position with net operating cash inflow of HKD 6 million during the review period[10]. - As of September 30, 2021, the group held cash and bank balances of HKD 302 million, with outstanding bank loans of HKD 41 million[10]. - The debt-to-equity ratio was reported at 5.33%, indicating a solid financial structure[10]. - As of September 30, 2021, total assets minus current liabilities amounted to HKD 796,278,000, an increase from HKD 791,348,000 as of March 31, 2021, representing a growth of approximately 0.12%[38]. - The company's cash and cash equivalents decreased to HKD 301,833,000 from HKD 316,981,000, reflecting a decline of about 4.77%[43]. - The total equity attributable to owners of the company increased to HKD 776,243,000 from HKD 770,147,000, marking an increase of approximately 0.93%[39]. - The total liabilities increased to HKD 284,341,000 from HKD 276,241,000, reflecting a rise of approximately 2.4%[38]. Dividends and Shareholder Returns - The board declared an interim special dividend of HKD 0.015 per share, reflecting a commitment to maintaining adequate liquidity while rewarding shareholders[10]. - The company declared an interim special dividend of HKD 0.015 per share, totaling HKD 3,942,000, for the six months ended September 30, 2021[85]. - The company suspended the transfer of shares from December 21, 2021, to December 28, 2021, to facilitate the payment of the interim special dividend[110]. Employee and Management Information - The group has approximately 4,000 employees as of September 30, 2021, with compensation based on performance, tenure, and market conditions[13]. - Employee benefit expenses for the period were HKD 190,570,000, compared to HKD 125,096,000 in the previous year, reflecting a rise of 52.3%[81]. - The group’s short-term employee benefits for key management personnel increased to HKD 2,746,000 for the six months ended September 30, 2021, compared to HKD 1,192,000 for the same period in 2020[101]. Corporate Governance - The board intends to maintain the current leadership structure, with the same individual serving as both Chairman and CEO, to ensure effective governance[20]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ended September 30, 2021[22]. - The company has established a remuneration committee to provide recommendations on the compensation policies for all directors and senior management[22]. - The nomination committee is responsible for reviewing the board's structure and composition to ensure it meets the company's strategic needs[23]. - The company maintained a diverse board composition, which is believed to enhance decision-making quality[24]. - The company has adopted a policy for the nomination of directors based on integrity, expertise, and industry experience[24]. Market Outlook and Strategy - The company anticipates significant fluctuations in market demand for eyewear products due to ongoing global supply chain disruptions and rising input costs[16]. - The group will continue to enhance overall efficiency by improving production efficiency, budget control, and optimizing supplier networks and logistics processes[17]. - The production facility in Henan will be upgraded to alleviate the burden on the existing factory in Guangdong[18]. - The company plans to strengthen its e-commerce network and allow more products for online distribution to cater to the growing home economy[19]. - The company aims to introduce a more flexible range of products with customized design elements to adapt to changing consumer preferences[19]. Shareholder Information - The company’s major shareholders include United Vision International Limited, holding 141,533,828 shares, which accounts for 53.86% of the issued share capital[117]. - FMR LLC and Webb David Michael are significant shareholders, holding 26,277,000 shares (9.99%) and 26,098,000 shares (9.93%) respectively[117]. - The total number of shares available for issuance under the 2014 share option scheme was 26,277,828 shares, representing approximately 10% of the company's issued share capital[113]. - The 2014 share option scheme has a remaining term of approximately 2.9 years as of September 30, 2021[112]. - The company has not granted, exercised, canceled, or expired any share options under the share option scheme since its adoption[102]. - The total number of shares held by directors and key executives as of September 30, 2021, includes 141,533,828 shares held indirectly through trusts[116].

Financial Performance - The company's revenue for the fiscal year ending March 31, 2021, decreased by 23.13% to HKD 702 million, compared to HKD 913 million in the previous year[21]. - The profit attributable to shareholders for the fiscal year was HKD 10 million, a significant recovery from a loss of HKD 166 million in the previous year[21]. - The ODM business revenue declined by 25.39% to HKD 532 million, accounting for approximately 75.78% of the total revenue[21]. - Revenue from the brand eyewear distribution business decreased by 19.55% to HKD 144 million, representing about 20.51% of total revenue[21]. - The company reported a basic earnings per share of HKD 0.04, compared to a loss per share of HKD 0.63 in the previous year[21]. - The group's brand contact lens business revenue increased by 35.29% to HKD 23,000,000 for the year ended March 31, 2021, compared to HKD 17,000,000 in the previous year, accounting for 3.28% of the group's total revenue[24]. - The company's total operating revenue for the year ended March 31, 2021, was HKD 1,000,000 from the Jill Stuart trademark licensing business, compared to HKD 2,000,000 in the previous year[24]. - The company reported a net profit of HKD 9,508 thousand, a significant recovery from a net loss of HKD 165,819 thousand in the previous year[156]. - The total comprehensive income for the year was HKD 15,099 thousand, compared to a loss of HKD 168,128 thousand in the prior year[156]. - The company plans to continue focusing on market expansion and new product development to drive future growth[156]. Cash Flow and Financial Position - As of March 31, 2021, the group held cash and bank balances of HKD 317,000,000, with outstanding bank borrowings amounting to HKD 42,000,000[24]. - The group's net cash inflow from operating activities was HKD 44,000,000 for the year ended March 31, 2021[24]. - The capital debt ratio as of March 31, 2021, was 5.51%, indicating a stable financial position[24]. - The group maintained a strong liquidity position with net current assets of approximately HKD 404,000,000 and a current ratio of 2.5:1 as of March 31, 2021[24]. - The company reported a significant reduction in property, plant, and equipment depreciation from HKD 51,344,000 to HKD 15,741,000[167]. - The company's cash and cash equivalents at the end of the year stood at HKD 316,981,000, compared to HKD 308,806,000 at the beginning of the year[169]. - The total assets as of March 31, 2021, were HKD 770,600,000, reflecting a decrease from HKD 755,501,000 in the previous year[167]. Operational Efficiency and Strategy - The company experienced a rebound in market demand in the fourth quarter of the fiscal year, which helped improve overall revenue and operational efficiency[21]. - The company aims to streamline operations to effectively reduce fixed costs and improve overall efficiency during challenging market conditions[21]. - The company plans to enhance budget control across business units and streamline organizational structures to reduce costs and improve employee motivation[32]. - The company will continue to explore new sales channels and distribution partners, particularly strengthening its e-commerce network[33]. - A new product line with lower price points will be launched to expand the existing product range and cater to diverse consumer preferences across different regions[33]. - The company is investing in upgrading its production facilities in Henan to alleviate the burden on existing factories in Guangdong[33]. - The company aims to maintain flexible production capacity to respond to potential market demand fluctuations in the fiscal year 2021/22[32]. Governance and Compliance - The board of directors consists of five executive directors and four independent non-executive directors, ensuring a balanced governance structure[44]. - The company has complied with all applicable corporate governance code provisions during the fiscal year ending March 31, 2021[42]. - The chairman and CEO roles are held by the same individual, which deviates from the corporate governance code, but the board believes this structure provides effective leadership[49]. - The company has a policy for the rotation and re-election of directors, with specific terms outlined in the company’s articles of association[51]. - The independent non-executive directors possess appropriate professional accounting qualifications and financial management knowledge[44]. - The company has adopted a policy on board diversity, ensuring a balanced and diverse composition of the board to enhance decision-making quality[63]. - The board is responsible for overseeing the company's financial performance and compliance with applicable laws and regulations[47]. Risk Management - The risk management system has a structured framework and employs a top-down approach to identify, assess, and monitor risks, with regular evaluations conducted by various departments[70]. - No significant deficiencies were found in the risk management and internal control systems as of March 31, 2021, and appropriate measures will be taken to address identified areas for improvement[71]. - The group identified key risks including market risk, credit risk, and liquidity risk, detailed in the financial statements[85]. Shareholder Information - The board has proposed a special dividend of HKD 1.5 per share, expected to be paid around September 14, 2021[24]. - The company proposed a final special dividend of HKD 0.015 per share, amounting to approximately HKD 3,942,000[83]. - Major shareholders include United Vision International Limited and Marshvale Investment Limited, each holding 143,033,828 shares, representing 54.43% of the total issued shares[114]. - The company has adopted a new share option plan in 2014, allowing for the issuance of up to 10% of the total issued share capital[107]. - The independent non-executive directors confirmed their independence according to the listing rules[120]. Audit and Financial Reporting - The independent auditor, Deloitte, has audited the consolidated financial statements and found them to be true and fair[135]. - The board of directors is responsible for preparing the consolidated financial statements in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance, ensuring no material misstatements due to fraud or error[146]. - The auditor identifies and assesses risks of material misstatement in the financial statements and designs audit procedures to address those risks[149]. - The audit report is issued by Deloitte, with the audit partner being a certified public accountant, Hu Jia Ming[154].

Financial Performance - The group's consolidated revenue decreased significantly by 40.81% to HKD 291 million for the six months ended September 30, 2020, compared to HKD 492 million in the same period last year[6]. - The gross profit margin fell to 13.22%, down from 18.77% in the previous year, indicating a substantial decline in profitability[6]. - The ODM business revenue dropped by 43.90% to HKD 216 million, accounting for 74.23% of the group's total revenue[7]. - The brand eyewear distribution business revenue decreased by 35.42% to HKD 62 million, representing 21.31% of the total revenue[8]. - The brand contact lenses business revenue increased by 37.50% to HKD 11 million, making up 3.78% of the total revenue[9]. - The company reported a loss of HKD 12,008,000 for the period, compared to a loss of HKD 8,395,000 in the previous year, indicating a 42.5% increase in losses[36]. - Gross profit for the period was HKD 38,481,000, down 58.3% from HKD 92,277,000 in the prior year[38]. - Basic loss per share was HKD 4.59, compared to HKD 3.27 in the previous year, reflecting a 40.2% increase in loss per share[42]. - The company reported a loss before tax of HKD 13,362,000 for the six months ended September 30, 2020[65]. - The company reported a basic loss attributable to shareholders of HKD 12,066,000 for the six months ended September 30, 2020, compared to a loss of HKD 8,592,000 for the same period in 2019[85]. Cash Flow and Financial Position - The group maintained a healthy financial position with a net operating cash inflow of HKD 56 million and cash and bank balances of HKD 347 million as of September 30, 2020[11]. - The debt-to-equity ratio was reported at 5.83%, indicating a reasonable level of leverage for the group[11]. - The average collection period for receivables increased from 89 days to 96 days, reflecting a slight slowdown in cash collection[12]. - The inventory turnover period increased from 58 days to 81 days, necessitating closer monitoring of inventory usage[12]. - The company's cash and cash equivalents increased to HKD 347,088,000 from HKD 308,806,000, representing a growth of 12.3%[45]. - Total liabilities decreased to HKD 237,662,000 from HKD 251,993,000, a reduction of 5.7%[45]. - The equity attributable to owners of the company was HKD 746,102,000, down from HKD 755,085,000, indicating a decrease of 1.5%[47]. - For the six months ended September 30, 2020, the net cash generated from operating activities was HKD 56,430,000, compared to HKD 24,358,000 for the same period in 2019, representing an increase of 132.4%[51]. - The total cash and cash equivalents at the end of the period were HKD 347,088,000, an increase from HKD 323,693,000 in the previous year, reflecting a growth of 7.2%[51]. Market Environment and Business Strategy - The business environment is expected to remain challenging and uncertain, with ongoing risks related to new COVID-19 outbreaks and consumer confidence recovery anticipated to be a long process[19]. - Despite signs of stronger customer orders in the second half of the fiscal year, the company anticipates high volatility in future demand for eyewear products[19]. - The company plans to enhance its e-commerce infrastructure and collaborate with strategic partners to expand online sales, particularly in emerging markets like China and India[21]. - The company aims to diversify its product range with affordable, tailored designs for key market segments in response to changing consumer preferences[21]. - The board emphasizes maintaining financial strength and long-term competitiveness while navigating short-term profitability pressures[21]. Corporate Governance and Shareholder Information - The company has established various committees, including an audit committee, to enhance corporate governance and ensure compliance with regulations[22][23][24][25]. - The board is committed to maintaining a diverse composition to enhance decision-making quality and align with the company's long-term goals[26]. - As of September 30, 2020, major shareholders hold 54.43% of the company's issued share capital, with specific individuals holding significant stakes[114]. - United Vision International Limited, Marshvale Investments Limited, HSBC International Trustee Limited, and Gu Li Hua collectively own 143,033,828 shares, representing 54.43% of the company's issued share capital[117]. - FMR LLC holds 26,277,000 shares, accounting for 9.99% of the company's issued share capital[119]. - David Michael Webb owns 26,098,000 shares, which is 9.93% of the company's issued share capital[122]. - Fidelity Puritan Trust directly holds 20,999,000 shares, representing 7.99% of the company's issued share capital[119]. - Preferable Situation Assets Limited, owned by David Michael Webb, holds 18,346,000 shares, which is 6.98% of the company's issued share capital[119]. - No other individuals were recorded as major shareholders as of September 30, 2020, according to the securities and futures regulations[124]. Impairment and Asset Management - The company recognized impairment losses of HKD 112,000,000 for properties, plants, and equipment, and HKD 18,000,000 for right-of-use assets as of March 31, 2020[60]. - Cumulative impairment losses for properties, plants, and equipment, and right-of-use assets as of September 30, 2020, were HKD 112,000,000 and HKD 18,000,000, respectively[60]. - The company did not recognize additional impairment losses for identified long-term assets during the reporting period[60]. - The overall economic environment and travel restrictions due to Covid-19 negatively affected the company's operations and customer order delays[59]. Revenue Breakdown - Total revenue for the six months ended September 30, 2020, was HKD 291,040,000, a decrease of 40.9% compared to HKD 491,724,000 for the same period in 2019[74]. - Revenue from eyewear products was HKD 278,168,000, a decrease of 42.2% compared to HKD 480,946,000 for the same period in 2019[62]. - Revenue from contact lenses increased to HKD 11,134,000, up 32.8% from HKD 8,395,000 in the previous year[62]. - Revenue from Hong Kong decreased to HKD 18,263,000 from HKD 24,387,000, representing a decline of 25.5%[74]. - Revenue from China decreased to HKD 43,414,000 from HKD 49,264,000, a decline of 11.9%[74]. - Revenue from Italy significantly decreased to HKD 100,776,000 from HKD 172,075,000, a drop of 41.5%[74]. - Revenue from the United States decreased to HKD 84,082,000 from HKD 156,881,000, a decline of 46.5%[74].

Financial Performance - The company reported a significant revenue decline of 25.42% to HKD 913 million for the fiscal year ending March 31, 2020, compared to HKD 1,224 million in the previous year[14]. - The net loss attributable to shareholders for the same period was approximately HKD 166 million, resulting in a loss per share of HKD 0.63[17]. - The company's ODM business revenue decreased by 29.39% to HKD 282 million, down from HKD 370 million in the previous year[17]. - The gross profit for the same period was HKD 160.518 million, down 39.3% from HKD 264.650 million in the previous year[127]. - The company reported a loss before tax of HKD 165.740 million, compared to a profit of HKD 84.749 million in 2019[127]. - The net loss for the year was HKD 165.819 million, a significant decline from a profit of HKD 72.519 million in the prior year[127]. - Basic loss per share was HKD 0.63, compared to earnings of HKD 0.27 per share in the previous year[127]. - The cost of sales decreased to HKD 752.269 million from HKD 959.267 million, reflecting a reduction of 21.6%[127]. - Administrative expenses were reduced to HKD 144.798 million from HKD 156.956 million, a decrease of 7.7%[127]. - The company recognized impairment losses of HKD 112 million on property, plant, and equipment, which was not present in the previous year[127]. Operational Challenges - The company faced challenges due to the COVID-19 pandemic, which led to temporary factory shutdowns in China and delayed shipments to customers[17]. - The business environment for the fiscal year 2020/21 is expected to be extremely challenging due to the ongoing impact of the coronavirus pandemic[22]. - The ongoing trade tensions between the US and China are expected to hinder market demand and impact supply chains[23]. - The company anticipates significant fluctuations in product demand in the coming months[23]. Financial Position - The group's bank balance stood at HKD 309 million, with outstanding bank loans amounting to HKD 45 million[20]. - The capital debt ratio was 5.90% as of March 31, 2020, with net current assets of approximately HKD 405 million and a current ratio of 2.6:1[20]. - The group recorded a net operating cash inflow of HKD 51 million during the fiscal year[20]. - The company's equity attributable to owners decreased from HKD 953,417,000 to HKD 755,085,000, a decline of approximately 20.8%[129]. - The company’s cash and cash equivalents decreased from HKD 358,768,000 to HKD 308,806,000, a decline of about 13.9%[128]. - The company reported a net cash outflow of HKD 49,123,000 for the year ended March 31, 2020, compared to HKD 31,733,000 in the previous year, indicating a 54.7% increase in cash outflow[132]. Strategic Initiatives - The company is focusing on innovation and product development to enhance user experience and market appeal[8]. - The management highlighted the importance of maintaining operational efficiency through continuous improvement in manufacturing processes[12]. - The company is committed to creating a seamless integration into customers' supply chains to support their success[9]. - The group plans to maintain sufficient liquidity to navigate future uncertainties while balancing profit distribution to shareholders[22]. - The group plans to tighten accounts receivable and inventory controls to maximize cash flow generated from operations[23]. - The establishment of a new production facility in Vietnam is expected to diversify the company's supply outside of Southern China[23]. - The company has secured exclusive distribution rights for Kenzo eyewear products, enhancing its product portfolio[23]. - The group aims to optimize its cost structure by outsourcing non-core services and improving labor efficiency[23]. Governance and Compliance - The board consists of four executive directors and three independent non-executive directors, with independent directors accounting for at least one-third of the board[30]. - All independent non-executive directors have confirmed their independence according to the listing rules[30]. - The company has adopted the corporate governance code and has complied with all applicable provisions during the reporting period[28]. - The chairman and CEO roles are held by the same individual, which deviates from the corporate governance code, but the board believes this structure provides effective leadership[34]. - The board held four meetings during the reporting period, with full attendance from all directors[31]. - The company has established a remuneration committee to propose policies and procedures for the remuneration of all directors and senior management[39]. - The company has a policy for continuous professional development for all directors to enhance their knowledge and skills[37]. Risk Management - The group identified key risks including market risk, credit risk, and liquidity risk, which may impact its operational and financial conditions[65]. - The risk management system is structured and aims to identify, assess, and respond to risks, with regular evaluations conducted by various departments[53]. - The audit committee reviewed the group's interim and annual reports, providing recommendations to the board regarding risk management and internal controls[42]. - The group continues to monitor foreign exchange risks closely and utilizes forward contracts to manage potential currency fluctuations[22]. Shareholder Information - The group paid an interim dividend of HKD 0.015 per share, totaling approximately HKD 3,942,000.00[63]. - The board did not recommend the payment of a final dividend for the year ending March 31, 2020[63]. - The group maintains a shareholder communication policy to ensure effective information dissemination to shareholders and investors[56]. - The top five customers accounted for approximately 67.69% of the total sales, with the largest customer representing about 20.72% of total sales[70]. Accounting and Financial Reporting - The financial statements are prepared based on historical cost, except for certain financial instruments measured at fair value[162]. - The group recognizes revenue from customer contracts when control of goods or services is transferred to customers[170]. - The group applies the equity method for investments in joint ventures, recognizing its share of profits or losses and other comprehensive income[169]. - The group recognizes rental income from operating leases on a straight-line basis over the lease term[195]. - The company has adopted new Hong Kong Financial Reporting Standards, which will be effective from April 1, 2020, and is not expected to have a significant impact on the financial position and performance[159].

Financial Performance - The group's consolidated revenue decreased by 24.36% to HKD 492 million for the six months ended September 30, 2019, compared to HKD 650 million in the same period of 2018[6]. - The group recorded a loss attributable to owners of approximately HKD 9 million, compared to a profit of HKD 45 million in the previous year, resulting in a loss per share of HKD 0.03[6]. - The gross profit margin and net profit margin declined to 18.77% and -1.71%, respectively, due to rising labor costs and intensified market competition[7]. - Total revenue for the six months ended September 30, 2019, was HKD 491,724,000, a decrease of 24.4% from HKD 650,086,000 in the same period of 2018[39]. - Gross profit for the same period was HKD 92,277,000, down 34.4% from HKD 140,825,000 year-on-year[39]. - The company reported a loss before tax of HKD 6,752,000 compared to a profit of HKD 52,450,000 in the previous year[39]. - Net loss attributable to owners of the company was HKD 8,592,000, a significant decline from a profit of HKD 44,583,000 in the prior period[41]. - Total comprehensive loss for the period was HKD 11,303,000, contrasting with a total comprehensive income of HKD 36,070,000 in the previous year[39]. - The company reported a net loss of HKD 8,592 thousand for the period, compared to a profit of HKD 44,583 thousand in the previous period[46]. Revenue Breakdown - The revenue from the original design manufacturing (ODM) business decreased by 17.56% to HKD 385 million, influenced by economic and political events, particularly the US-China trade tensions[8]. - Revenue from the brand eyewear distribution business decreased by 6.80% to HKD 96 million, accounting for 20% of the group's total revenue, primarily due to reduced demand in the Chinese market[10]. - The brand contact lens business saw a significant decline of 89.87% in revenue to HKD 8 million, impacted by the economic environment and consumer sentiment[11]. - Revenue from Hong Kong increased to HKD 24,387,000, up 8.1% from HKD 22,573,000 in 2018, while revenue from China decreased to HKD 49,264,000, down 7.9% from HKD 52,978,000[106]. - Revenue from Japan significantly decreased to HKD 22,532,000, down 75.8% from HKD 91,207,000, and revenue from Italy decreased to HKD 172,075,000, down 30% from HKD 245,484,000[106]. Cash and Assets - The group maintained a healthy cash position with cash and bank balances of HKD 324 million as of September 30, 2019, and a debt-to-equity ratio of 4.97%[13]. - Current assets totaled HKD 703,230 thousand, a decrease from HKD 734,526 thousand, reflecting a decline of about 4.3%[43]. - Cash and cash equivalents at the end of the period were HKD 323,693 thousand, down from HKD 358,768 thousand, representing a decrease of approximately 9.7%[47]. - The company raised new bank borrowings of HKD 48,116 thousand during the period[47]. - The total liabilities increased to HKD 270,174 thousand from HKD 256,712 thousand, reflecting an increase of about 5.3%[43]. - The company’s inventory as of September 30, 2019, was HKD 126,426 thousand, compared to HKD 115,602 thousand as of March 31, 2019, indicating an increase of approximately 9.9%[43]. Operational Adjustments - The group is actively adjusting its production facilities to respond to market trends, particularly in metal and plastic eyewear frames[8]. - The company plans to streamline operations to improve efficiency and will enhance order analysis and technical research to adopt the most cost-effective production methods[21]. - The company is establishing new production facilities outside of South China to mitigate rising labor costs and ensure stable labor supply[21]. - The company will continue to invest in automation and assets that enhance long-term competitiveness despite prudent spending controls[21]. Dividends and Shareholder Information - The company declared an interim special dividend of HKD 0.015 per share despite a significant decline in profitability due to challenging business conditions[14]. - The company declared a final dividend of HKD 0.10 per share, totaling approximately HKD 26,278,000, compared to HKD 31,534,000 for the same period in 2018[118]. - The company declared an interim special dividend of HKD 0.015 per share for the six months ended September 30, 2019, compared to an interim dividend of HKD 0.045 and an interim special dividend of HKD 0.015 in the previous year[141]. - As of September 30, 2019, the company directors and key executives hold a total of 143,033,828 shares, representing 54.43% of the company's issued share capital[147]. Corporate Governance and Compliance - The company maintains a strong commitment to corporate governance, adhering to the relevant rules and codes[24]. - The company has adopted a policy for board diversity, considering various factors such as gender, age, and industry experience in selecting board candidates[29]. Financial Reporting Standards - The company has adopted new and revised Hong Kong Financial Reporting Standards, effective from April 1, 2019, which did not have a significant impact on the financial position and performance during the reporting period[51]. - The application of HKFRS 16 "Leases" has replaced HKAS 17 and has led to changes in accounting policies regarding lease definitions and recognition[53]. - The company recognizes right-of-use assets at the lease commencement date, measured at cost, which includes initial lease liability and any direct costs incurred[59]. - The company will account for lease modifications as separate leases if they expand the scope of the lease by adding the right to use one or more assets[68].

Financial Performance - The company's total revenue increased by 22.19% to HKD 1,224,000,000 for the year ended March 31, 2019, compared to HKD 1,002,000,000 in 2018[19] - The profit attributable to owners of the company rose by 12.60% to HKD 72,000,000 for the year ended March 31, 2019, up from HKD 64,000,000 in 2018[19] - The gross profit margin decreased to 21.62% in 2019 from 24.53% in 2018, while the net profit margin fell to 5.93% from 6.42%[19] - The basic earnings per share increased to HKD 0.27 in 2019 from HKD 0.24 in 2018[19] - The company's total comprehensive income for the year was HKD 71,138,000, compared to HKD 64,055,000 in the previous year, reflecting an increase of 11%[131] - The company's profit before tax for the year ended March 31, 2019, was HKD 84,749,000, an increase of 13.6% from HKD 74,708,000 in the previous year[132] Revenue Breakdown - ODM business revenue grew by 7.86% to HKD 878,000,000 in 2019, accounting for 71.73% of the total revenue[19] - Revenue by region for 2019 was 43% from Europe, 25% from the USA, and 31% from Asia[16] - Revenue by business segment for 2019 was 72% from original design manufacturing, 16% from branded eyewear, and 11% from branded contact lenses[17] - The group's brand eyewear distribution business revenue increased by 9.04% to HKD 205 million, representing 16.75% of the total revenue[23] - The new contact lens business generated revenue of HKD 137 million, contributing 11.19% to the group's total revenue, with Asia accounting for 100% of this segment[21] Operational Challenges - The company is facing rising operational costs in China, with minimum wage increases of approximately 14% and 17% in Dongguan and Heyuan, respectively[19] - The company anticipates a challenging business environment due to political uncertainties and rising operational costs in Southern China[24] - The company aims to streamline operations across product development, production, logistics, and backend support to enhance procurement efficiency and reduce production cycles[26] Strategic Plans - The company plans to expand its ODM business in the USA and Europe, as well as its branded eyewear distribution in Asia[19] - The company plans to control costs and explore new procurement channels to lower material costs, while also focusing on improving production efficiency through automation[26] - The company plans to expand distribution channels and increase sales points in Asia, particularly in China[23] Corporate Governance - The board of directors consists of four executive directors and three independent non-executive directors, ensuring compliance with the listing rules[38] - All independent non-executive directors have confirmed their independence according to the listing rules[39] - The company has adopted a code of conduct for directors' securities transactions, confirming compliance for the fiscal year[37] - The company has not appointed a formal CEO, with the chairman also serving in that role, which deviates from corporate governance guidelines[42] - The remuneration committee has reviewed the compensation policies and evaluated the performance of directors, providing recommendations to the board[48] Risk Management - The board is responsible for maintaining a robust risk management and internal control system, which aims to manage risks rather than eliminate them[55] - The company has established a structured risk management framework that identifies, assesses, and monitors risks, with appropriate governance mechanisms in place[56] - The company identified key risks including market risk, credit risk, and liquidity risk, which may impact its operational and financial condition[68] Financial Position - As of March 31, 2019, the total bank borrowings amounted to approximately HKD 47 million, with a capital debt ratio of 4.88%[22] - The company's equity attributable to owners rose to HKD 953,417,000 in 2019, compared to HKD 937,817,000 in 2018, an increase of 1.9%[127] - Total liabilities increased to HKD 256,712,000 in 2019 from HKD 189,233,000 in 2018, marking a rise of 35.7%[126] - Cash and cash equivalents decreased to HKD 358,768,000 in 2019 from HKD 391,383,000 in 2018, a decline of 8.3%[126] Shareholder Communication - The company maintains ongoing communication with shareholders and regularly reviews its shareholder communication policy[59] - The board proposed a final dividend of HKD 0.10 per share, amounting to approximately HKD 26,278,000, for shareholders on the register as of August 28, 2019[66] Compliance and Audit - The Audit Committee held two meetings during the fiscal year ending March 31, 2019, with all members attending both meetings[50] - The total fees paid or payable to the auditor Deloitte amounted to HKD 1,198,000 for audit services, and additional fees of HKD 200,000, HKD 160,000, and HKD 65,000 for interim review, tax compliance and advisory services, and internal control review respectively[50] - The company is responsible for preparing consolidated financial statements in accordance with Hong Kong Financial Reporting Standards and ensuring the statements are free from material misstatement due to fraud or error[116] Inventory and Receivables - Accounts receivable amounted to HKD 241,652,000, with a credit loss provision of HKD 3,668,000, resulting in a net impairment loss of HKD 339,000 for the fiscal year ending March 31, 2019[111] - Inventory was valued at HKD 115,602,000, after deducting a provision of HKD 105,031,000, with a provision of HKD 14,129,000 recognized in the profit and loss for the fiscal year ending March 31, 2019[113] Accounting Policies - The company applies the equity method for investments in joint ventures, recognizing the initial investment at cost and subsequently adjusting for its share of profits or losses[169] - Revenue from customer contracts is recognized when control of goods or services is transferred to customers, in accordance with HKFRS 15[171] - The company recognizes a refund liability if it expects to return part or all of the consideration received from customers[172]