Financial Performance - Turnover for 2020 was HK$7,630 million, a decrease of 7% from HK$8,210 million in 2019[8] - Profit attributable to ordinary equity holders was HK$169 million, down 48% from HK$325 million in 2019[8] - Total equity decreased to HK$4,930 million from HK$5,378 million in 2019, reflecting a decline of 8%[8] - Total assets amounted to HK$8,312 million, down from HK$8,579 million in 2019, a decrease of 3%[8] - Basic earnings per share decreased to HK$12.2 cents from HK$23.5 cents in 2019, a decline of 48%[8] - Dividends per share were HK$10.0 cents, down from HK$30.0 cents in 2019, a reduction of 66.7%[8] - For the fiscal year ended March 31, 2020, the Group's total revenue decreased by 7.1% to HK$7,630 million, down from HK$8,210 million in 2019[21] - Profit attributable to shareholders dropped by 48.0% to HK$169 million, compared to HK$325 million in the previous year[21] - Operating profit for the year was HK$540 million, compared to HK$354 million in 2019[26] - Profit before tax for the same period was HK$270,976, down 32% from HK$397,753 in the prior year[79] Business Segments - The textile business turnover rose by 3.4% to HK$4,919 million, representing 64.5% of the Group's total revenue[23] - Retail and distribution business sales fell by 21.4% to HK$2,709 million, accounting for 35.5% of total turnover[29] - Retail and distribution business net sales decreased by 21.4% to HK$2,709 million in 2020, compared to HK$3,448 million in 2019[30] - Gross profit margin for the retail and distribution business was 47.5% in 2020, down from 50.1% in 2019[31] - Comparable store sales growth was (17.1%) in 2020, compared to (12.8%) in 2019[31] - Operating loss for the retail and distribution business was HK$316 million in 2020, compared to a loss of HK$110 million in 2019[31] - Net sales in Mainland China decreased by 25% to HK$2,085 million in 2020, down from HK$2,767 million in 2019[37] - Hong Kong net sales decreased by 8% to HK$624 million in 2020, compared to HK$681 million in 2019[39] Capital Expenditure and Assets - Capital expenditure for the year was HK$76 million, down from HK$160 million in 2019[26] - Total capital expenditure for the Group was HK$222 million in 2020, a slight decrease from HK$236 million in 2019[43] - Total assets as of March 31, 2020, amounted to HK$8,312,332,000, a decrease from HK$8,578,956,000 in 2019[82] - Total liabilities as of March 31, 2020, were HK$3,382,119,000, compared to HK$3,201,402,000 in 2019[82] Employee and Operational Metrics - The number of employees in Mainland China was 11,111, a decrease from 11,879 in 2019[8] - The number of sales associates in Mainland China decreased to 3,446 in 2020 from 4,182 in 2019[37] - The Group had approximately 11,589 employees at year-end, a decrease from 12,657 employees last year, with remuneration based on industry practices and individual performance[48] Financial Stability and Risk Management - Current ratio remained stable at 2.0 times, consistent with previous years[8] - The current ratio remained stable at 2.0, with total bank borrowings decreasing to HK$1,230 million in 2020 from HK$1,529 million in 2019[41] - Cash and cash equivalents at year-end were HK$1,737 million, down from HK$2,080 million in 2019[42] - Interest coverage ratio decreased to 5 times from 12 times last year, primarily due to the adoption of HKFRS 16 and the impact of COVID-19, resulting in a significant decline in profit before tax[45] - The Group's financial risk management details are disclosed in note 40 of the financial statements[66] Corporate Governance and Compliance - The Group is committed to high standards of corporate governance, adhering to the principles of the Corporate Governance Code[151] - The independent non-executive directors confirmed that continuing connected transactions were conducted in the ordinary course of business and on normal commercial terms[143] - Ernst & Young issued an unqualified letter regarding the Group's continuing connected transactions, confirming compliance with relevant listing rules[144] - The Board of Directors consists of six members, including three executive directors and three independent non-executive directors, ensuring compliance with the Listing Rules[160] - All independent non-executive directors confirmed their independence for the year ended 31 March 2020[160] Environmental and Social Responsibility - The Group is committed to environmental sustainability, having established environmental and energy management systems in compliance with ISO standards[50] - The Group complied with applicable environmental protection laws regarding wastewater, greenhouse gas emissions, and solid waste from textile manufacturing operations[52] - Charitable contributions made by the group during the year totaled HK$1,136,000, an increase from HK$684,000 in 2019[90] - The Group plans to continue investing resources in social, educational, and environmental protection activities for community development[60] Management and Leadership - The company has a strong management team with extensive experience in the textile industry, including over 48 years of experience from Mr. Poon Bun Chak[124] - Mr. Chan Chi Hon, the financial controller, has over 33 years of experience in auditing and accounting[124] - The company is focused on expanding its textile business, leveraging the expertise of its senior management team[125] - The principal roles of the Board include setting objectives, monitoring performance, and managing risks[164]

Financial Performance - Revenue for the six months ended September 30, 2019, was HK$4,197,328, a decrease of 3.4% from HK$4,345,938 in 2018[13] - Gross profit for the same period was HK$1,331,423, slightly down from HK$1,342,800, reflecting a gross margin of approximately 31.7%[13] - Profit for the period increased to HK$211,566, representing a growth of 11.1% compared to HK$190,446 in 2018[17] - Earnings per share attributable to ordinary equity holders of the Company rose to HK$15.3, up from HK$14.1 in the previous year[11] - Total comprehensive income for the period was HK$29,722, a significant improvement from a loss of HK$58,986 in 2018[17] - Profit before tax for the period was HK$255,161, up from HK$236,643 in 2018, reflecting an increase of approximately 7.8%[80] - The income tax expense for the period was HK$43,595, slightly down from HK$46,197 in 2018, showing a decrease of about 3.3%[82] - Interest income increased to HK$34,861 from HK$29,310 in 2018, marking a growth of approximately 19.5%[76] - The company reported a profit for the period of HK$211,566, an increase from HK$190,446 in 2018, representing a growth of about 11.1%[80] Expenses and Cost Management - Selling and distribution expenses decreased by 15.5% to HK$680,898 from HK$806,192, indicating improved cost management[13] - Administrative expenses increased slightly to HK$431,571 from HK$419,213, reflecting ongoing operational costs[13] - Other income and gains totaled HK$76,255, down from HK$81,729, indicating a decline in ancillary revenue sources[13] - The Company reported finance costs of HK$34,654, which increased from HK$15,121, suggesting higher borrowing costs[13] - The segment results for the retailing and distribution of yarn and seamless garments showed a loss of HK$62,677, compared to a loss of HK$14,827 in 2018, indicating a worsening performance[74] Assets and Liabilities - Total non-current assets increased to HK$2,859,068,000 as of September 30, 2019, from HK$2,380,992,000 as of March 31, 2019, representing a growth of approximately 20%[19] - Current assets rose to HK$6,358,157,000 as of September 30, 2019, compared to HK$6,197,964,000 as of March 31, 2019, indicating an increase of about 2.6%[19] - Total current liabilities rose to HK$3,523,820,000 as of September 30, 2019, from HK$3,065,547,000 as of March 31, 2019, which is an increase of approximately 15%[22] - Net current assets decreased to HK$2,834,337,000 as of September 30, 2019, from HK$3,132,417,000 as of March 31, 2019, indicating a decline of about 9.5%[22] - Total equity attributable to ordinary equity holders of the Company was HK$5,200,022,000 as of September 30, 2019, compared to HK$5,377,554,000 as of March 31, 2019, reflecting a decrease of approximately 3.3%[22] Cash Flow and Dividends - Net cash flows from operating activities for the six months ended September 30, 2019, were HK$502,878, compared to a cash outflow of HK$104,462 in the same period of 2018[28] - Cash and cash equivalents at the end of the period increased to HK$2,045,039 from HK$1,416,152 in the previous year[28] - The company declared dividends of HK$207,254, consistent with the previous period's dividend[25] - The interim dividend declared is HK$138,170,000, down from HK$207,254,000 in the previous year, representing a decrease of approximately 33.4%[86] - The interim dividend per ordinary share is 10.0 HK cents, compared to 15.0 HK cents in the previous year, indicating a reduction of 33.3%[86] Accounting Standards and Policies - The Group adopted HKFRS 16 using the modified retrospective method with the date of initial application on 1 April 2019[48] - The adoption of the new and revised HKFRSs, except for HKFRS 16, had no significant financial effect on the condensed interim financial statements[43] - The Group's accounting policies remain consistent with those used in the annual financial statements for the year ended 31 March 2019[45] - The Group recognized an increase in right-of-use assets amounting to HK$720,297,000[59] - Total assets increased by HK$705,482,000 following the adoption of HKFRS 16[59] Segment Performance - Segment revenue for the production, dyeing, and sale of knitted fabric was HK$2,849,791, an increase from HK$2,625,980 in 2018, representing a growth of approximately 8.5%[74] - Textile business revenue increased by 8.5% to HK$2,850 million, accounting for 67.9% of the Group's total turnover[143] - Retail and distribution business sales dropped by 21.7% to HK$1,346 million, representing 32.1% of the Group's total turnover[171] - The gross profit margin for the retail and distribution business was 49.8%, a decrease of 1.0 percentage point from the previous year[171] Market Conditions and Outlook - The Group focused on closing underperforming stores and accelerating the development of export franchising business in response to challenging market conditions[171] - The Group's fabric business is not directly impacted by the US-China trade war, but the global economic slowdown may negatively affect its export business[191] - The retail business faces significant challenges due to the US-China trade dispute and social unrest in Hong Kong[192] - The Group maintains a prudent but positive outlook for performance in the second half of the year despite an uncertain operating environment[195]

Financial Performance - Turnover for 2019 was HK$8,210 million, a decrease of 3.8% from HK$8,531 million in 2018[9] - Profit attributable to ordinary equity holders was HK$325 million, up from HK$304 million in 2018, representing a growth of 6.9%[9] - Total equity decreased to HK$5,378 million from HK$5,725 million in 2018, a decline of 6.1%[9] - Total assets were HK$8,579 million, down from HK$9,220 million in 2018, reflecting a decrease of 7.0%[9] - EBITDA for the year was HK$693 million, down from HK$769 million in 2018, a decline of 9.9%[9] - Basic earnings per share increased to HK$23.5 cents from HK$22.0 cents, marking a rise of 6.8%[9] - Dividends per share were HK$30.0 cents, down from HK$35.0 cents in 2018, a decrease of 14.3%[9] - Profit before tax for the year was HK$397,753, down from HK$467,858 in the previous year, indicating a decrease of about 15%[78] - Profit for the year attributable to ordinary equity holders was HK$320,417, slightly up from HK$316,750 in 2018, showing a marginal increase of 0.2%[78] - Total liabilities decreased to HK$3,201,402 from HK$3,494,818 in 2018, a reduction of about 8.4%[80] Business Segments - Textile business turnover rose by 4.9% to HK$4,759 million, representing 58.0% of the Group's total turnover[27] - Retail and distribution business sales decreased by 13.6% to HK$3,448 million, accounting for 42.0% of total turnover[34] - Comparable store sales growth was (12.8%) in 2019, compared to (6.9%) in 2018[36] - Net sales in Mainland China decreased by 19% to HK$2,767 million, with a retail floor area of 1,626,047 sq. ft.[44] - Hong Kong net sales increased by 18% to HK$681 million, with a retail floor area of 87,752 sq. ft.[46] - Garment manufacturing revenue decreased by 37.4% to HK$196 million, with a net profit contribution of HK$55 million[47] Employee and Operational Metrics - The number of employees totaled 12,657, a decrease from 13,345 in 2018, reflecting a reduction of 5.2%[9] - The Group's current ratio remained stable at 2.0, consistent with the previous year[9] - Capital expenditure for the year was HK$160 million, slightly down from HK$162 million in the previous year[30] - The Group had approximately 12,657 employees at year-end, down from 13,345 in 2018, with remuneration based on industry practices and individual performance[58] Financial Position and Cash Flow - Cash and cash equivalents decreased to HK$2,080 million from HK$2,445 million in 2018, primarily due to tax reserve certificate purchases[51] - The Group maintained a strong financial position with a current ratio of 2.0, total bank loans of HKD 1,529 million, and a capital debt ratio of -0.1 at year-end[54] - The Group's cash and cash equivalents were primarily placed in fixed deposits with established financial institutions, with a maturity due within one year[58] Governance and Management - The Group's senior management includes individuals with extensive experience, such as Mr. Chan Chi Hon with over 32 years in auditing and accounting[104] - The Company has a strong governance structure with independent non-executive directors possessing significant industry experience[97][98][99] - The Board comprised six members as of March 31, 2019, including three executive directors and three independent non-executive directors[131] - The roles of the executive chairman and the chief executive officer are segregated, with Mr. Poon Bun Chak as the executive chairman and Mr. Ting Kit Chung as the CEO[131] - The Company has established three board committees to oversee specific aspects of its affairs, with terms of reference approved by the Board[149] Risk Management and Compliance - The Board is responsible for the Group's risk management and internal control systems, which aim to mitigate inherent business risks[190] - The internal audit team conducts risk-based audits on major operating activities and reports findings to the Audit Committee[192] - The Group has established policies to ensure timely and equal dissemination of inside information to the public[196] - The Group has adopted a whistleblowing policy to facilitate confidential reporting of misconduct by employees and stakeholders[200] Future Outlook and Strategy - The Group remains optimistic about future prospects despite facing a challenging operating environment due to global economic uncertainties[21] - The Group plans to introduce more new and value-added products to improve business performance, supported by a strong research and development team[70] - The retail sector will implement stringent cost control measures to reduce operational expenses and further develop kids' products to broaden the customer base[70] - The Group aims to expand its overseas franchising business as a core focus[70]