Financial Performance - For the fiscal year ending June 30, 2021, the company reported total revenue of approximately HKD 481 million, a significant decrease from HKD 738 million for the eighteen months ending June 30, 2020[24]. - The company achieved a profit of HKD 16.6 million for the fiscal year, a notable recovery from a loss of HKD 39.2 million in the previous period[15]. - The basic earnings per share increased to HKD 7.84, compared to a loss of HKD 17.49 per share in the previous period[15]. - The group's consolidated revenue for the fiscal year ending June 30, 2021, was approximately HKD 481 million, compared to HKD 738 million for the eighteen months ending June 30, 2020[35]. - The operating profit for the fiscal year was approximately HKD 19 million, marking the first profit since the sale of the commercial brand business in 2017, a significant improvement from an operating loss of approximately HKD 35 million for the previous eighteen months[36]. - The group's net profit attributable to shareholders for the year was approximately HKD 17 million, compared to a net loss of approximately HKD 37 million for the eighteen months ending June 30, 2020[36]. - The overall gross profit margin increased from 54% to 58% due to improved sales mix and manufacturing efficiency[39]. Assets and Liabilities - Total assets as of June 30, 2021, were HKD 784.9 million, while total liabilities stood at HKD 360.1 million, resulting in total equity of HKD 424.8 million[17]. - The company reported a capital and reserves attributable to owners of HKD 424.8 million as of June 30, 2021, up from HKD 369.5 million in the previous period[15]. - As of June 30, 2021, the group's total cash and bank balances were approximately HKD 178 million, an increase from HKD 136 million on June 30, 2020, while unsecured bank borrowings decreased to HKD 16 million from HKD 31 million[53]. Strategic Initiatives - The company plans to open three additional flagship showrooms in the next eighteen months, expanding its presence to five dual-channel flagship showrooms[25]. - The company has established new showrooms in London and Paris, which are expected to significantly reduce rental costs and enhance brand visibility[25]. - The company plans to launch new websites and trial e-stores for its Tai Ping and Edward Fields brands in the fall of 2021, featuring over 2,500 iconic design profiles[50]. - The company has implemented strategic changes to reduce operating costs and improve manufacturing productivity amid challenges posed by the COVID-19 pandemic[25]. - The company continues to monitor performance and may implement further cost reduction measures as necessary due to the ongoing pandemic[37]. Workforce and Employee Welfare - The company’s workforce decreased by 9% from 740 employees in June 2020 to 674 employees in June 2021, due to business streamlining and productivity improvements[42]. - Employee benefits include accommodation, meal plans, paid leave, and medical insurance, contributing to a supportive work environment[164]. - The company has a strong commitment to employee welfare, organizing various social activities to foster a cohesive workplace culture and reduce turnover rates[164]. - The company invests in employee development through customized training and performance evaluation mechanisms[171]. - The company has established an emergency response team to assess and act on COVID-19 related situations, prioritizing the safety of employees and the community[162]. Governance and Board Structure - The board consists of ten members, including one executive director, five non-executive directors, and four independent non-executive directors[73]. - The board emphasizes diversity, including gender diversity, and has adopted a Board Diversity Policy to enhance transparency and governance[76]. - The chairman and CEO positions are held by different individuals to ensure independence and accountability[77]. - The board has established four committees: Executive Committee, Remuneration Committee, Audit Committee, and Nomination Committee[93]. - The company is committed to a merit-based approach in appointing directors, ensuring a diverse and inclusive board[76]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers the company's management policies and performance for the fiscal year 2020/2021[126]. - The ESG report period spans from July 1, 2020, to June 30, 2021, focusing on the company's core business operations[127]. - The company has established an Environmental, Health, and Safety department to manage policies and procedures related to sustainable development[134]. - The company adheres to international standards such as ISO 14001 for environmental management[134]. - The company has implemented energy-saving measures, including the use of energy-efficient LED lighting and modern glass curtain walls to reduce electricity costs[148]. Safety and Compliance - The company achieved a total of 4 work-related injuries in 2021, meeting the target of ≤ 4[169]. - There were no severe injuries resulting in loss of more than 105 days, achieving the target of 0[169]. - The company provides regular safety training to enhance safety awareness among operators[167]. - The company has established a safety committee composed of senior executives to manage health and safety systems[169]. - The company has implemented comprehensive guidelines and procedures to responsibly handle chemicals used in production, ensuring compliance with EU Directive 2002/61/EC[152]. Sustainability Efforts - The company has identified 21 sustainability issues, with 12 prioritized as important based on stakeholder feedback[140]. - The company aims to reduce greenhouse gas emissions primarily from manufacturing and transportation by situating production facilities close to local markets[148]. - The company utilizes recycled water to minimize groundwater usage and has a wastewater treatment system that allows for the reuse of treated water[151]. - The company has established a waste management program that includes a waste classification system to minimize environmental impact, with a focus on recycling and reducing waste generation[155]. - The company has complied with environmental laws and regulations, with no reported violations during the reporting period[143].

Financial Performance - The group's consolidated revenue for the six months ended December 31, 2020, was approximately HKD 220 million, a decrease of 28% compared to HKD 305 million in the same period of 2019[8]. - Revenue for the six months ended December 31, 2020, was HKD 220,342,000, a decrease of 27.8% from HKD 305,233,000 in the same period of 2019[41]. - The company’s revenue from carpet and flooring sales was HKD 190,960,000 for the six months ended December 31, 2020, down from HKD 269,192,000 in the previous year[78]. - The company’s revenue from installation and furnishing services was HKD 22,309,000, a decrease from HKD 27,681,000 in the same period last year[78]. - Gross profit for the same period was HKD 126,818,000, down 23.2% from HKD 165,198,000 year-on-year[41]. - Operating profit for the period was approximately HKD 7 million, down from HKD 14 million in 2019, but significantly improved from an operating loss of approximately HKD 30 million recorded in the first half of 2020[8]. - Operating profit decreased to HKD 7,172,000, a decline of 47.5% compared to HKD 13,641,000 in the previous year[41]. - Net profit for the period was HKD 5,537,000, representing a 47.7% decrease from HKD 10,592,000 in 2019[41]. - The company reported a net profit of HKD 5,838,000 for the period, down from HKD 11,377,000, a decline of about 48.7%[54]. - Basic earnings per share for the period was HKD 2.75, down from HKD 5.36 in the previous year, reflecting a decline of 48.8%[41]. Cash Flow and Liquidity - The group’s cash and cash equivalents totaled approximately HKD 138 million as of December 31, 2020, compared to HKD 136 million as of June 30, 2020, with no bank borrowings[19]. - Cash and cash equivalents increased from HKD 136,036,000 to HKD 137,792,000, a slight increase of about 1.3%[58]. - Operating cash flow generated was HKD 49,696,000, compared to HKD 66,039,000 in the previous period, a decrease of approximately 24.8%[58]. - The company held cash and cash equivalents of approximately HKD 137,792,000 as of the fiscal period end, compared to HKD 136,036,000 as of June 30, 2020, indicating a slight increase in liquidity[70]. Expenditures and Investments - The total capital expenditure for the period was approximately HKD 5 million, down from approximately HKD 8 million in 2019[17]. - Capital expenditures for the six months ended December 31, 2020, totaled HKD 4,782,000, compared to HKD 7,586,000 in 2019, representing a reduction of approximately 37%[81]. - The company recognized the addition of right-of-use assets amounting to approximately HKD 5,163,000 for the six months ended December 31, 2020, compared to HKD 688,000 in 2019[110]. Assets and Liabilities - Total assets decreased from HKD 777,207,000 to HKD 765,870,000, a decline of approximately 1.7%[48]. - Current assets decreased from HKD 284,340,000 to HKD 261,108,000, a decline of about 8.2%[48]. - Total liabilities decreased from HKD 390,287,000 to HKD 343,471,000, a decline of about 12%[51]. - Non-current liabilities decreased from HKD 97,492,000 to HKD 92,968,000, a decline of approximately 4.9%[51]. - Trade receivables decreased from HKD 46,637,000 on June 30, 2020, to HKD 19,418,000 on December 31, 2020, representing a decline of approximately 58%[112]. - Total trade and other payables decreased from HKD 136,982,000 on June 30, 2020, to HKD 124,329,000 on December 31, 2020, a decrease of approximately 9%[120]. Shareholder and Governance - The company does not recommend the payment of an interim dividend for this period, compared to zero in 2019[16]. - The company did not repurchase any shares during the six months ended December 31, 2020[31]. - The audit committee has reviewed the financial statements and internal control procedures in accordance with the corporate governance code[30]. - The company’s major shareholders include Acorn Holdings Corporation and Peak Capital Partners I, L.P., holding 18.858% and 15.366% of the issued share capital, respectively[39]. Challenges and Outlook - The ongoing COVID-19 pandemic remains the biggest challenge for global economic recovery and the company's business restoration[15]. - The company provided a positive outlook for the next quarter, projecting revenue growth of A% and an increase in user engagement metrics[134]. - The board emphasized the importance of sustainability in future strategies, aiming for a J% reduction in carbon footprint by 2025[134]. Employee and Management - The total number of employees decreased from 740 at the end of June 2020 to 670 by the end of December 2020 as part of cost reduction measures[22]. - The company’s management compensation decreased from HKD 17,784,000 in the six months ended December 31, 2019, to HKD 8,317,000 in the same period of 2020, a reduction of about 53%[132].

Financial Performance - For the eighteen months ending June 30, 2020, the total revenue was approximately HKD 738 million, compared to HKD 541 million for the fiscal year 2018[21]. - The operating loss for the eighteen months was approximately HKD 35 million, an improvement from the operating loss of HKD 43 million in the previous fiscal year[21]. - The company reported a basic loss per share of HKD 17.49, compared to a loss of HKD 16.09 per share in the previous year[13]. - Total assets as of June 30, 2020, were HKD 777 million, while total liabilities were HKD 390 million, resulting in total equity of HKD 386 million[15]. - The company's consolidated revenue for the eighteen-month period ending June 30, 2020, was approximately HKD 738 million, compared to HKD 541 million for the previous period[31]. - In the first half of 2020, the company's consolidated revenue was approximately HKD 190 million, a decrease of about HKD 52 million or 21% compared to the same period in 2019[33]. - The carpet business generated revenue of approximately HKD 716 million for the eighteen-month period, compared to HKD 520 million in the previous twelve-month period[37]. - The overall gross profit margin for the eighteen-month period was 54%, consistent with the previous year[38]. Operational Efficiency - The company has implemented cost-cutting measures and streamlined sales and distribution activities to improve operational efficiency[21]. - The company’s vertical integration measures played a crucial role in managing the impact of the COVID-19 pandemic on its operations[22]. - The company aims to maintain financial liquidity and support daily operating expenses while minimizing losses during the pandemic[22]. - The company has implemented measures to maintain strict control over operating expenses during the pandemic, including negotiating temporary rent reductions and arranging employee leave[33]. - The company continues to invest in its new carpet manufacturing business in the U.S., supported by existing dyeing facilities in Georgia, with a focus on long-term growth plans for the local market[47]. - The Oracle ERP system is being expanded to integrate the new U.S. manufacturing unit, with ongoing optimization projects aimed at improving control, production efficiency, and cost reduction[47]. Corporate Governance - The board of directors consists of ten members, including one executive director, five non-executive directors, and four independent non-executive directors[71]. - The company held a total of six board meetings during the reporting period, with all members actively participating in discussions and decision-making[83]. - The independent non-executive directors possess specialized knowledge in accounting, investment, and business operations, ensuring compliance with listing rules[79]. - The company has adopted a board diversity policy, considering various factors such as gender, age, and professional experience when appointing directors[74]. - The chairman and CEO positions are held by different individuals to maintain independence and accountability[75]. - All directors received training on legal regulations and corporate governance during the reporting period[74]. - The company has purchased appropriate directors and officers liability insurance for its board members[81]. - The board's independent non-executive directors confirmed their independence in accordance with listing rules[79]. - The company’s board meetings allow equal opportunities for all directors to express their opinions and share insights[87]. - The board committees include the executive committee, remuneration committee, audit committee, and nomination committee, overseeing various aspects of corporate governance[89]. Environmental and Social Responsibility - The company has established an Environmental, Health, and Safety department to oversee environmental protection actions and resource management[134]. - The company adheres to various environmental laws and regulations in China, including the Environmental Protection Law and the Air Pollution Prevention and Control Law[134]. - The company aims to transition to a low-carbon economy by implementing energy-saving and water-saving measures and reducing waste generation[134]. - The company has received ISO 14001 certification for its environmental management system policies and procedures[134]. - The Xiamen production workshop has implemented energy-saving measures, including the use of energy-efficient LED lighting and modern glass curtain walls to reduce energy consumption significantly[135]. - The workshop processes approximately 200 tons of wastewater daily through advanced treatment solutions, ensuring compliance with environmental regulations[139]. - The company has adopted a zero-pollution discharge policy, meeting all water needs through recycling and rainwater collection[139]. - The company actively promotes water resource protection by reducing groundwater usage and increasing the use of recycled water in manufacturing[138]. - The company has established a waste classification system to minimize environmental impact, with a focus on recycling materials from the manufacturing process[142]. - The company’s carpets release fewer volatile organic compounds, benefiting households with improved acoustic and thermal properties[137]. Employee Welfare and Safety - The company provides various employee benefits, including accommodation and medical insurance, to foster a supportive work environment[145]. - The company has a registered emergency team to protect employees' health during the COVID-19 pandemic, ensuring business continuity[146]. - The company adheres to strict labor laws and regulations, ensuring fair treatment and opportunities for all employees[145]. - The company has implemented comprehensive COVID-19 emergency plans, including temperature checks and health observation rooms for employees and visitors[150]. - The company achieved ISO 45001 certification for occupational health and safety standards in 2020, ensuring compliance with applicable laws and regulations[151]. - The company has not reported any work-related fatalities during the reporting period, highlighting its commitment to employee safety[151]. - The company invests in employee development through customized training programs and partnerships with external organizations to enhance skills and productivity[152]. Community Engagement and Charitable Activities - The company is committed to community support and responsible corporate citizenship, focusing on local employment to boost the local economy[166]. - The group made charitable donations of approximately HKD 144,000 during the period, compared to HKD 14,000 in the previous year[188]. Dividend Policy and Shareholder Information - The group did not declare any interim dividends for the period, consistent with the previous year[183]. - The group has adopted a dividend policy to allow shareholders to share in profits while reserving sufficient reserves for future growth[184]. - The board will consider various factors, including overall economic conditions and the group's financial performance, before declaring dividends[185]. - The board will review the dividend policy periodically and does not guarantee any specific amount of dividends in any designated period[186]. - The group’s operational capital and future expansion plans are considered when determining dividend payments[186].

Financial Performance - The group's consolidated revenue for the period was approximately HKD 548 million, an increase of 1% compared to HKD 541 million in the previous year[9]. - The operating loss for the period was approximately HKD 5 million, an improvement of about HKD 38 million from the loss of HKD 43 million in the same period last year[9]. - The sales revenue from the carpet business was approximately HKD 531 million, a growth of 2% compared to HKD 520 million in the previous year[11]. - Revenue for 2019 was HKD 547,718,000, an increase from HKD 540,932,000 in 2018, representing a growth of approximately 1.45%[46]. - Gross profit for 2019 was HKD 299,039,000, compared to HKD 293,851,000 in 2018, indicating a growth of about 1.76%[46]. - Operating loss for 2019 was HKD (48,864,000), worsening from HKD (42,928,000) in 2018[46]. - Net loss attributable to the company for 2019 was HKD (84,457,000), compared to HKD (34,136,000) in 2018, reflecting an increase in losses of approximately 147.5%[46]. - Basic loss per share for 2019 was HKD (3.99), a significant decline from HKD (16.09) in 2018[46]. - The company recognized a total comprehensive loss of HKD (34,599,000) for 2019, compared to HKD (56,474,000) in 2018, showing an improvement in overall losses[51]. Cash Flow and Liquidity - As of December 31, 2019, the total cash and cash equivalents were approximately HKD 110,000,000,000, an increase from HKD 93,000,000,000 in 2018[20]. - The company's cash flow statement for the year ended December 31, 2019, showed a net cash outflow from operating activities of HKD 84,557,000[63]. - Cash generated from operating activities was HKD 55,625,000, compared to a cash outflow of HKD 4,581,000 in the previous period, indicating a significant improvement[65]. - The company paid income tax of HKD 546,000, which is a decrease from HKD 1,310,000 in the previous period, suggesting improved tax efficiency[65]. - The company reported a cash inflow from the sale of non-current assets of HKD 865,100, which was not present in the previous period[65]. - The company's total cash flow for the period showed a net increase of HKD 15,453,000, contrasting with a net decrease of HKD 16,916,000 in the previous period[65]. Capital Expenditures and Assets - Capital expenditures for the period amounted to approximately HKD 14,000,000,000, a decrease from HKD 58,000,000,000 in 2018[19]. - The total net book value of properties, plants, equipment, land use rights, construction in progress, and intangible assets was approximately HKD 393,000,000,000, down from HKD 418,000,000,000 in 2018[19]. - The Group's total non-current assets amounted to HKD 528,558,000 as of December 31, 2019, compared to HKD 423,485,000 on January 1, 2019, reflecting an increase of approximately 24.8%[95]. - The Group's total current assets were HKD 314,013,000 as of December 31, 2019, up from HKD 309,962,000 on January 1, 2019, indicating a growth of about 1.7%[95]. - The total value of properties, plants, and equipment was HKD 531,288,000 as of December 31, 2019[138]. - The net book value of properties, plants, and equipment at the end of 2019 was HKD 255,704,000[138]. Shareholder Information - The company does not recommend paying an interim dividend for the period, compared to no dividend in the previous year[18]. - As of December 31, 2019, the company had a total of 431,910 ordinary shares held by director Tang Ziliang, representing 0.204% of the issued share capital[37]. - Major shareholder Acorn Holdings Corporation owned 40,014,178 ordinary shares, accounting for 18.858% of the issued share capital[41]. - The company has no arrangements that would allow directors or their associates to hold any shares or bonds in the company[39]. - The total issued and fully paid ordinary shares as of December 31, 2019, were 212,187,488, with a nominal value of HKD 21,219[158]. Financial Risks and Management - The ongoing trade conflict and increased tariffs in the U.S. will continue to impact business development, but the company has taken measures to mitigate these effects[16]. - The management has identified key financial risk factors, including liquidity risk and the need for effective cash flow management, to ensure financial stability[5]. - The company reported derivative financial liabilities with a fair value of HKD 7,043,000 for cash inflows and HKD 7,002,000 for cash outflows, showing significant financial management[5]. - The financial risk management strategy includes assessing the impact of observable market data on the valuation of financial instruments, ensuring compliance with fair value hierarchy levels[108]. Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code as of December 31, 2019, with no significant deviations noted[29]. - The audit is conducted by BDO Limited, ensuring compliance and accuracy in financial reporting[174]. - The company is led by Chairman and Non-Executive Director Mr. Gao Fuhua and CEO Mr. Wen Jingxian, indicating a stable leadership structure[174]. Market and Operational Insights - Sales in Asia recorded the largest increase of 17%, while sales in the United States decreased due to the trade war, offsetting most of the growth[11]. - The company aims to enhance its market presence through strategic initiatives and potential acquisitions, although specific targets were not disclosed[5]. - The company's operational segments are evaluated based on performance in Asia, Europe, the Middle East, and Africa, as well as the Americas, highlighting a strategic focus on regional performance[113].