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]