Market Impact and Sales Performance - The retail sales of wearing apparel in Hong Kong plunged approximately 41.3% to about HK$26.51 billion in 2020 due to the pandemic[8]. - The fashion apparel retailing sector was severely impacted by the COVID-19 pandemic, with a 93.6% drop in visitor arrivals in Hong Kong[8]. - The retail of apparel, shoes, headwear, and knitted products in Mainland China experienced a lesser impact, with a 6.6% decrease in value in 2020[8]. - Revenue from retail stores in Hong Kong and Macau decreased by approximately 43% and 57% respectively, contributing to an overall turnover decrease of 34% to HK$127,283,000[17]. - The Group's revenue from operations in Hong Kong decreased by approximately 43% to HK$55,305,000 for the year[34]. - The Group's turnover decreased by approximately 34% to approximately HK$127,283,000 compared to HK$191,604,000 in 2020[63]. - Revenue from operations outside Hong Kong decreased by approximately 23% to approximately HK$71,978,000, with the contribution rate increasing by 8 percentage points to 57% due to growth in Mainland China[63]. - Sales in Macau plummeted by 57% to approximately HK$14,720,000, leading to the closure of two stores[55]. - The retail sales of apparel in Hong Kong rebounded by approximately 26.1% year-on-year in the first quarter of 2021 as pandemic conditions improved[36]. Financial Performance - The Group recorded a loss of HK$23,205,000 for the Year, narrowing by 84% compared to the previous financial year[12]. - Operating loss decreased by 76% due to the closure of underperforming stores and successful rent negotiations[14]. - Gross profit margin for the Year was 68.3%, down from 76.7% in the previous financial year[18]. - The loss attributable to equity shareholders for the year ended 31 March 2021 was approximately HK$22,751,000, a significant reduction from HK$146,694,000 in 2020, mainly due to improved operating margins and decreased impairment of assets[68]. - Operating expenses totaled approximately HK$160,375,000, a decrease of approximately 41% from HK$270,542,000 in 2020[63]. - The Group suffered an operating loss of HK$29,078,000, compared to an operating loss of HK$119,134,000 in 2020[63]. - The Group's gross profit margin was approximately 68.3%, down from 76.7% in the previous year, mainly due to increased discount sales and promotional activities[63]. Strategic Initiatives and Market Adaptation - The company has accelerated the development of online marketing and sales to adapt to market changes driven by the pandemic[10]. - The pandemic has prompted an increase in online activities, further promoting the development of online business for fashion companies[10]. - The Group launched its own online platform for marketing and sales in Hong Kong at the end of July 2020, marking a shift towards electronic commerce[24]. - The Group is focused on responding to fundamental changes in the fashion apparel market, including the rise of e-commerce[10]. - The Group aims to provide more unique and fashionable clothing to maintain competitiveness in the evolving market[10]. - The Group plans to enhance its cost-effective online sales and marketing platforms, including the development of a mobile application for targeted marketing[1]. - The Group is focusing on repositioning its brand to appeal to younger consumers and enhancing its online presence[19]. - The proportion of mid-range, on-trend, and unique fashion apparel in the spring/summer collection increased from 30% to 50%[23]. - The marketing theme for the seasonal collection emphasizes personal expression and self-awareness, encapsulated in the slogan "C'est MOI, MOISELLE" (我就是慕詩)[23]. Governance and Management Structure - The company reported a commitment to meeting statutory and regulatory requirements, emphasizing transparency, independence, accountability, responsibility, and fairness in corporate governance[107]. - The board of directors consists of six members, with three executive directors and three independent non-executive directors, ensuring a balanced governance structure[111]. - The company has complied with the Corporate Governance Code throughout the year, except for a deviation regarding the separation of the roles of chairman and CEO[109]. - The company’s management team is responsible for operational decision-making, while the board focuses on leadership and strategic oversight[110]. - The company will continue to review its management structure to ensure optimal efficiency and leadership[109]. - The independent non-executive directors were appointed for a term of two years and are subject to retirement by rotation[137]. - The company has adopted a board diversity policy focusing on the size of the Board and the number of non-executive and executive directors[139]. - The company has established a nomination committee in compliance with the Corporate Governance Code[139]. - The attendance record for board meetings was high, with most directors attending all meetings held during the year[112]. Risk Management and Compliance - The Board conducted an annual review of the effectiveness of risk management and internal control systems, focusing on three major business cycles, and was satisfied with their adequacy[161]. - The company maintains an internal audit function and engages external consultants to identify, evaluate, and manage significant risks[163]. - The group faces various risks and uncertainties, which are monitored by management to ensure sustainable operations[186]. Employee and Supplier Relations - The Group employed 374 staff as of 31 March 2021, an increase from 348 in 2020, indicating growth in workforce[73]. - The Group has established a customer loyalty program to enhance customer satisfaction and encourage repeat purchases, offering special discounts to VIP customers[80]. - The Group maintains relationships with over 30 suppliers, with an average business relationship of more than ten years, reflecting strong supplier trust[79]. Financial Position and Capital Management - As of 31 March 2021, the Group's total bank deposits and cash balances amounted to approximately HK$18 million, down from HK$32 million in 2020[69]. - The Group's secured bank borrowings increased to HK$54 million as of 31 March 2021, compared to HK$34 million in 2020[70]. - The net current liabilities stood at HK$57 million at year-end, up from HK$25 million in 2020, indicating current assets were less than current liabilities[71]. - The gearing ratio as of 31 March 2021 was approximately 10.1%, an increase from 6.4% in 2020[71]. - The company has a structured process for shareholders to submit proposals for consideration at general meetings, ensuring compliance with notice periods[172]. Corporate Social Responsibility - Charitable donations made by the group during the year amounted to HK$30,000, an increase from HK$20,000 in 2020[193]. - The group operates a Mandatory Provident Fund Scheme in Hong Kong, requiring both employer and employees to contribute 5% of relevant income, capped at HK$30,000 per month[193]. - The subsidiary in Taiwan contributes 6% of the total salaries of participating employees to a defined contribution scheme governed by the Labour Pension Act[197]. - The subsidiary in Singapore participates in the Central Provident Fund scheme, with contributions charged to profit or loss as they become payable[198].

Financial Performance - The company reported revenue of HKD 103,434,000 for the six months ended September 30, 2019, a decrease of 15.3% compared to HKD 122,181,000 in the same period of 2018[5]. - Gross profit for the period was HKD 78,209,000, down 17.7% from HKD 95,052,000 year-on-year[5]. - The company incurred an operating loss of HKD 35,271,000, compared to an operating loss of HKD 32,907,000 in the previous year, reflecting a deterioration in performance[5]. - The net loss attributable to shareholders was HKD 37,600,000, compared to a net loss of HKD 26,764,000 in the same period last year, representing a 40.5% increase in losses[7]. - The total comprehensive loss for the period was HKD 38,105,000, compared to HKD 33,579,000 in the previous year, indicating a 13.5% increase in comprehensive losses[5]. - The company reported a basic loss per share of HKD 0.13, compared to HKD 0.09 in the same period last year, indicating a worsening of loss per share[7]. - The group reported a total revenue of HKD 126,734,000 for the six months ended September 30, 2019, compared to HKD 152,555,000 in the same period of 2018, reflecting a decrease of approximately 17%[28]. - The group's loss for the period was approximately HKD 37,600,000, compared to a loss of HKD 26,764,000 in the same period of 2018, indicating an increase in loss of about 40%[36]. - The gross profit margin for the period was 76%, down from 78% in the same period last year[42]. Assets and Liabilities - The company's total assets amounted to HKD 800,877,000 as of September 30, 2019, compared to HKD 713,544,000 as of March 31, 2019, showing a growth of 12.2%[9]. - The company's total equity decreased to HKD 644,545,000 from HKD 686,203,000, reflecting a decline of 6.1%[11]. - The total lease liabilities recognized on April 1, 2019, amounted to HKD 117,337,000, with a corresponding right-of-use asset of HKD 104,926,000[19]. - The group's non-current assets, including property, plant, and equipment, were adjusted to HKD 402,085,000 as of April 1, 2019, down from HKD 402,444,000 previously reported[23]. - The group's total liabilities included lease liabilities of HKD 61,519,000 as of April 1, 2019[23]. Cash Flow - Cash generated from operating activities was HKD 10,260,000, a decrease from HKD 38,511,000 in the same period last year[15]. - The company incurred a net cash outflow of HKD 8,227,000, compared to a net outflow of HKD 13,164,000 in the previous year[15]. - The cash and cash equivalents at the end of the period were HKD 22,339,000, down from HKD 47,206,000 at the beginning of the period[15]. - The group reported a financing cost of HKD 2,405,000 for the period, compared to HKD 281,000 in the same period of 2018, indicating a significant increase in financing costs[28]. - The group’s cash and cash equivalents totaled approximately HKD 22,000,000, down from HKD 31,000,000 as of March 31, 2019[58]. - The current ratio as of September 30, 2019, was approximately 1.0, down from 2.5 as of March 31, 2019[58]. Business Operations - The company has not reported any new product launches or significant market expansions during this period[5]. - There were no mentions of mergers or acquisitions in the financial report[5]. - The group operates 49 retail stores as of September 30, 2019, down from 50 stores as of March 31, 2019, reflecting ongoing network consolidation[48]. - The group is enhancing the shopping experience by integrating elements of fashion, art, and environmental awareness into store designs, including a new MOISELLE store at K11 MUSEA[49]. - The group is expanding its e-commerce efforts, including discussions to sell products on an Asian online marketing platform, marking its first attempt to enter overseas markets through e-commerce[45]. - The group has established partnerships with three local online marketing platforms in China and launched a sales and marketing platform on WeChat[45]. - The group continues to negotiate with landlords for rent reductions to navigate the difficult business environment[44]. - The group is increasing the proportion of mid-range fashion apparel in its total stock-keeping units (SKUs) to adapt to market changes[44]. - The group is implementing rigorous cost management and effective sales and marketing initiatives, including VIP membership services in Hong Kong[47]. - The group upgraded its information systems for retail stores, management, production, inventory, and logistics to improve operational efficiency[57]. Revenue Breakdown - Revenue from the Hong Kong business decreased by 16% to approximately HKD 56,292,000, influenced by social movements and intense competition from e-commerce and fast fashion[49]. - Revenue from mainland China decreased by 18% year-on-year to approximately HKD 16,144,000[53]. - Revenue from Macau operations decreased by 19% year-on-year to approximately HKD 18,256,000, accounting for a significant portion of the group's revenue[54]. - Revenue from Taiwan operations declined by 16% year-on-year to approximately HKD 7,540,000, representing about 7% of the group's total revenue[55]. - Singapore operations saw a revenue increase of 44% year-on-year to approximately HKD 5,202,000[56]. - The group's external customer revenue from Hong Kong was HKD 56,292,000 for the six months ended September 30, 2019, down from HKD 67,345,000 in the same period of 2018, a decrease of approximately 16%[28]. - The group's external customer revenue from overseas operations was HKD 103,434,000 for the six months ended September 30, 2019, compared to HKD 122,181,000 in the same period of 2018, reflecting a decrease of about 15%[28]. Shareholder Information - Super Result Consultants Limited holds 190,000,000 shares, representing 65.99% of the company's total issued shares[64]. - Both Mr. Chen and Ms. Xu beneficially own 46.7% of Super Result, indicating significant family ownership in the company[64]. - As of September 30, 2019, no other individuals held interests or short positions in the company's shares or related securities[64]. - The company paid dividends of HKD 11,517,000 last year, reflecting a commitment to shareholder returns despite current losses[15]. - The group did not declare an interim dividend for the six months ended September 30, 2019, compared to no dividend declared in the same period of 2018[37]. Governance and Compliance - The company has complied with the corporate governance code, except for deviations regarding the roles of the chairman and CEO, which are held by the same individual[69]. - The audit committee, consisting of three independent non-executive directors, has reviewed the accounting principles and practices adopted by the group[71].

Market Environment - The operating environment for the retail fashion sector has become very challenging due to the rise of e-commerce and fast fashion, which have drastically changed consumer preferences and purchasing behaviors[11]. - Young consumers aged 20 to 30 are increasingly relying on information from the internet and social media, leading to a preference for lower-priced fast fashion products[11]. - The ongoing Sino-United States trade war and slowing economic growth in China have dampened consumer interest in prestigious brands, pushing them towards more affordable options[11]. - Rising costs, particularly in prime locations in Hong Kong and first-tier cities in mainland China, have further complicated the business environment[11]. Company Strategy - The company is focusing on developing online stores while maintaining brick-and-mortar operations and adjusting product offerings to meet changing consumer demands[11]. - Future strategies include enhancing online presence and adapting product positioning to attract younger consumers[11]. - The company is exploring new product lines and technologies to stay competitive in the fast fashion market[11]. - Market expansion efforts are being considered to tap into emerging consumer segments[11]. - The company is committed to maintaining operational efficiency amidst rising costs and competitive pressures[11]. Financial Performance - The company recorded a loss of HK$19,841,000 for the year, primarily due to a 13.6% decrease in turnover to HK$251,021,000, attributed to challenging operating conditions in Hong Kong and China[14]. - The Group's turnover decreased by approximately 13.6% to approximately HK$251,021,000 for the year ended 31 March 2019, compared to HK$290,576,000 in 2018[48]. - Revenue from operations in Hong Kong decreased by 10.3% to approximately HK$139,610,000 due to fierce competition from electronic commerce and unfavorable economic conditions[32]. - Revenue from operations in mainland China fell by 28.3% to approximately HK$34,795,000, impacted by high rents and intense competition from electronic commerce[39]. - Operating expenses increased by approximately 3.5% to approximately HK$257,954,000, compared to HK$249,167,000 in 2018[50]. - The Group recorded an operating loss of HK$44,905,000 for the year, compared to an operating loss of HK$21,622,000 in 2018[50]. Brand and Product Development - The Group has enhanced its shopping experience at retail outlets and expanded its electronic commerce business to stay competitive[16]. - The Group debuted new products under the Rosamund MOISELLE brand, including sportswear and down apparel, during the Shanghai Fashion Week[19]. - The Group aims to enhance its electronic commerce business by offering membership coupons to attract customers from online to physical stores and exploring mass-market fashion apparel for online sales[25]. - The Group reinforced its house brands MOISELLE and Rosamund MOISELLE by running THE EARTH STORE and opened an additional LANCASTER store to accelerate brand development[34]. Operational Adjustments - The Group has implemented various measures to cope with the difficult operating environment over the past four financial years, including the closure of underperforming stores and stringent cost management[21]. - The Group plans to continue rationalizing its retail network, focusing on strategic locations in Hong Kong and Shanghai to enhance brand visibility and customer engagement[25]. - The information system for retail outlets and inventory management has been upgraded to improve operational efficiency, with further upgrades planned for product management and logistics[25]. Governance and Management - The Group's overall operations and design and development functions are overseen by Mr. Chan Pak Hei, who has been with the Group since May 2009[76]. - The Group's management team includes members with extensive qualifications and experience in finance and corporate governance, ensuring robust oversight[76]. - The company emphasizes adherence to principles of corporate governance, including transparency, independence, accountability, responsibility, and fairness[80]. - The independent non-executive directors confirmed their independence as per the Listing Rules, ensuring compliance for the year ended March 31, 2019[93]. Risk Management and Audit - The board acknowledges its responsibility for maintaining effective risk management and internal control systems[117]. - The audit committee reviewed the accounting principles and practices adopted by the group and discussed financial statements with independent auditors[113]. - The audit identified the provision for onerous operating lease contracts and valuation of leasehold improvements as a key audit matter due to significant management judgment and estimation involved[172]. - The auditor's report aims to provide reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[197]. Employee and Supplier Relations - The Group has established a customer loyalty program to enhance customer satisfaction and encourage repeat purchases, offering special discounts and regular activities for VIP customers[63]. - The Group has over 30 suppliers with an average business relationship of more than a decade, contributing to its success through trust and integrity[63]. - The Group provides reasonable remuneration and benefits to employees, ensuring compliance with local labor laws and offering training for career development[63]. Market Presence and Expansion - The Group aims to enhance brand equity by actively exploring new markets and allocating resources for product design, research, and development[63]. - To further develop the mainland China market, the Group will seek cooperation with agents or distributors familiar with local market conditions[25]. - The Group is focused on brand building, marketing, and interior design affairs as part of its operational strategy[76].