Financial Performance - Total revenue for the year ended June 30, 2024, was HKD 1,130,164,000, an increase of 12.2% from HKD 1,007,016,000 in 2023[1] - Gross profit for the year was HKD 255,490,000, compared to HKD 175,339,000 in the previous year, reflecting a gross margin improvement[1] - Operating profit for the year was HKD 19,274,000, a significant recovery from an operating loss of HKD 66,690,000 in 2023[1] - The company reported a net profit of HKD 1,500,000 for the year, a turnaround from a net loss of HKD 78,524,000 in the previous year[2] - Basic and diluted loss per share improved to HKD (0.007) from HKD (0.281) in the prior year[2] - The group reported net other income of HKD 21,820,000 in 2024, compared to HKD 15,390,000 in 2023, indicating an increase of about 41.5%[12] - The total rental income from investment properties was HKD 12,189,000 in 2024, up from HKD 10,788,000 in 2023, which is an increase of approximately 13%[12] - The net profit after tax for the year was HKD 1.5 million, a turnaround from a net loss of HKD 78.5 million in the previous year[37] Revenue Sources - Revenue from the United States significantly increased to HKD 848,492,000 in 2024, up from HKD 628,637,000 in 2023, marking a growth of about 35%[10] - Major customer A contributed HKD 481,565,000 in 2024, up from HKD 339,348,000 in 2023, reflecting a growth of approximately 42%[11] - Sales in the U.S. market accounted for 75% of total sales, while Europe contributed 14% and other markets accounted for 11%[30] Assets and Liabilities - Total assets decreased to HKD 467,682,000 from HKD 478,410,000 year-over-year[5] - Current liabilities rose to HKD 335,674,000 from HKD 322,124,000, reflecting increased operational costs[4] - The company’s equity attributable to shareholders increased slightly to HKD 374,624,000 from HKD 372,999,000[5] - Trade receivables decreased to HKD 132,453,000 in 2024 from HKD 178,576,000 in 2023, showing a reduction in outstanding receivables[24] - The total trade and other payables increased to HKD 242,542,000 in 2024 from HKD 181,984,000 in 2023, indicating a rise in liabilities[27] Expenses and Costs - The group’s total employee costs were HKD 419,701,000 in 2024, slightly down from HKD 423,706,000 in 2023, showing a decrease of about 1%[14] - The pre-tax profit for 2024 was impacted by financial expenses totaling HKD 19,040,000, compared to HKD 12,372,000 in 2023, reflecting an increase of approximately 54%[15] - Financial expenses rose from HKD 12.4 million to HKD 19.0 million, attributed to rising interest rates and increased bank fees[36] - General and administrative expenses decreased from HKD 228.2 million to HKD 221.0 million due to strict cost control measures[35] Impairments and Gains - The group recognized a loss of HKD 3,108,000 related to impairment of interests in associates in 2024, with no such loss reported in 2023[16] - The group recognized an impairment loss of HKD 3,108,000 on its interests in associates for the year ending June 30, 2024, compared to no impairment in 2023[23] - The company recorded actuarial gains of HKD 130,000 related to long-term service benefits, contributing positively to comprehensive income[3] Dividends and Shareholder Returns - The company has not declared a final dividend for the year ending June 30, 2024, consistent with the previous year[21] - The company has decided not to declare a final dividend for the year ending June 30, 2024, consistent with the previous year where no dividend was declared for the year ending June 30, 2023[52] Outlook and Governance - The group maintains a cautious outlook amid macroeconomic uncertainties, with expectations of fluctuating customer demand in the short term[46] - The audit committee has reviewed the consolidated annual results for the year ending June 30, 2024, ensuring compliance with accounting principles and discussing risk management and internal control systems[51] - The company has confirmed the independence of all independent non-executive directors, in accordance with the listing rules[49]

Financial Performance - The Group's revenue increased by 8.9% to HK$513.7 million for the six months ended 31 December 2023, compared to HK$471.9 million in the same period last year[20]. - Gross profit rose to HK$110.5 million, with a gross profit margin increase from 18.9% to 21.5%[21]. - The net loss for the period narrowed to HK$9.5 million, an improvement of HK$8.2 million from the previous year's loss of HK$17.7 million[16]. - The Group's sales revenue increased by 8.9% to HK$513.7 million for the period, compared to HK$471.9 million for the six months ended December 31, 2022[25]. - Gross profit rose from HK$89.0 million to HK$110.5 million, with the gross margin increasing from 18.9% to 21.5% due to higher sales of profitable products and vertical integration in components[26]. - The Group recorded a net loss of HK$9.5 million, an improvement from a net loss of HK$17.7 million in the same period last year[31]. - Basic and diluted loss per share improved to HK(4.31) cents from HK(7.92) cents, indicating a 45.5% reduction in loss per share[55]. - Total comprehensive expense for the period was HK$7,182,000, down from HK$22,717,000, a decrease of 68.4%[58]. - The total comprehensive income for the period ended December 31, 2023, was a loss of HK$11,237,000, compared to a loss of HK$29,349,000 for the same period in 2022[66]. - The company reported a loss attributable to equity shareholders of HK$12,981,000 for the period ended December 31, 2023, compared to a loss of HK$23,847,000 in the previous year[66]. Assets and Liabilities - Total equity decreased to HK$412.9 million from HK$419.8 million, a reduction of HK$6.9 million[13]. - Total debt decreased to HK$119.0 million from HK$123.8 million, a reduction of HK$4.8 million[13]. - Cash and cash equivalents decreased to HK$98.7 million from HK$112.1 million, a decrease of HK$13.4 million[13]. - Current assets increased to HK$465,319,000 from HK$417,104,000, reflecting a growth of 11.5%[60]. - Non-current assets totaled HK$379,397,000, slightly down from HK$383,430,000, a decrease of 1.0%[60]. - Net assets decreased to HK$412,953,000 from HK$419,822,000, reflecting a decline of 1.6%[61]. - Trade receivables at amortised cost decreased to HK$161,436,000 as of December 31, 2023, down from HK$178,576,000 as of June 30, 2023, a decline of 9.6%[116]. - Trade payables as of December 31, 2023, were HK$154,580,000, compared to HK$120,168,000 as of June 30, 2023, reflecting a rise of approximately 28.6%[122]. Cash Flow and Investments - For the six months ended December 31, 2023, the net cash generated from operating activities was HK$8,793,000, a decrease from HK$30,851,000 in the same period of 2022[71]. - The company incurred net cash used in investing activities of HK$2,174,000 for the six months ended December 31, 2023, compared to HK$15,317,000 in the same period of 2022[71]. - Capital expenditure during the period amounted to HK$7.8 million, primarily for machinery and computer equipment[40]. - The company received HK$4,351,000 in dividends from a joint venture during the six months ended December 31, 2023[71]. Expenses - Selling and distribution expenses increased slightly to HK$16.6 million from HK$15.1 million[23]. - General and administrative expenses increased to HK$107.8 million from HK$96.8 million, primarily due to ramping up operations in Indonesia[24]. - Finance costs increased from HK$4.4 million to HK$8.5 million, primarily due to higher trade finance utilization and rising interest rates[30]. - Depreciation charges for property, plant, and equipment rose to HK$14,223,000 in 2023, up from HK$13,713,000 in 2022, a 3.7% increase[97]. Market and Sales - 73% of sales were to the U.S. market, 15% to Europe, and 12% to the rest of the world during the period[17]. - The Group's revenue from sales of goods to a related party, Van de Velde N.V., was approximately HK$40,181,000 for the six months ended 31 December 2023, a decrease of 40.5% compared to HK$67,674,000 for the same period in 2022[140]. - Revenue from sales of goods to an associate, Techspase (Private) Limited, increased to HK$164,000 for the six months ended 31 December 2023, compared to HK$70,000 for the same period in 2022, representing a growth of 134.3%[141]. Share Options and Equity - As of December 31, 2023, the total number of outstanding share options was 15,485,981, down from 21,314,952 in 2022, indicating a decrease of approximately 27.5%[134]. - No share options were granted, exercised, cancelled, or lapsed under the New Share Option Scheme during the periods ended December 31, 2023, and December 31, 2022[135]. - The number of outstanding share options decreased from 21,314,952 to 15,485,981 during the six months ended December 31, 2023, reflecting a cancellation/lapse of 5,828,971 options[170]. - The New Share Option Scheme allows for the issuance of up to 30,105,267 shares, representing 10% of the total issued share capital of the Company as of the interim report date[179]. Governance and Compliance - The interim financial report is unaudited but has been reviewed by the Company's Audit Committee, ensuring oversight and accuracy in financial disclosures[78]. - The Company has complied with the Corporate Governance Code during the six months ended December 31, 2023, with noted deviations regarding director retirement by rotation[187]. - The Audit Committee has reviewed the unaudited interim financial report for the six months ended December 31, 2023[186]. Employee Information - As of December 31, 2023, the Group employed approximately 6,475 employees, an increase from approximately 6,242 employees as of June 30, 2023, reflecting a growth of about 3.74%[199]. - The Group's remuneration policy is structured based on prevailing market conditions and statutory requirements, ensuring competitive compensation for employees[199].

Financial Performance - Revenue for the six months ended December 31, 2023, was HKD 513,747,000, representing an increase of 8.8% compared to HKD 471,912,000 for the same period in 2022[2] - Gross profit for the same period was HKD 110,520,000, up from HKD 88,972,000, indicating a gross margin improvement[2] - Operating loss decreased to HKD 1,548,000 from HKD 12,834,000, showing a significant reduction in operational losses[3] - The net loss for the period was HKD 9,534,000, compared to a net loss of HKD 17,705,000 in the previous year, reflecting an improvement of 46.3%[5] - Basic and diluted loss per share improved to HKD 4.31 from HKD 7.92, indicating better performance on a per-share basis[3] - The company reported a total comprehensive loss of HKD 7,182,000 for the period, significantly improved from HKD 22,717,000 in the previous year[5] - The net loss narrowed to HKD 9.5 million, demonstrating the company's ability to adapt to market conditions and commitment to improving operational efficiency[32] Assets and Liabilities - Total assets as of December 31, 2023, were HKD 465,319,000, an increase from HKD 417,104,000 as of June 30, 2023[7] - Inventory increased to HKD 130,565,000 from HKD 103,594,000, suggesting a strategic buildup of stock[7] - Trade receivables rose to HKD 236,021,000 from HKD 201,380,000, indicating potential growth in sales[7] - Trade receivables amounted to HKD 161,436,000 as of December 31, 2023, down from HKD 178,576,000 as of June 30, 2023[25] - Trade payables increased to HKD 154,580,000 as of December 31, 2023, compared to HKD 120,168,000 as of June 30, 2023[28] Expenses - The company reported depreciation expenses of HKD 14,223,000 for property, plant, and equipment, up from HKD 13,713,000 in the previous year[17] - Sales and distribution expenses slightly increased to HKD 16.6 million from HKD 15.1 million, maintaining the same percentage of revenue as last year[37] - General and administrative expenses rose to HKD 107.8 million from HKD 96.8 million, primarily due to the expansion of operations in Indonesia[38] - Financial expenses increased from HKD 4.4 million to HKD 8.5 million, attributed to higher trade finance usage and rising interest rates[39] Government Support and Taxation - The company received government subsidies of HKD 1,714,000 from the mainland China government during the period, down from HKD 2,060,000 in the previous year[15] - The effective tax rate for the Hong Kong profits tax is estimated at 16.5%, with a specific subsidiary qualifying for a lower rate of 8.25% on the first HKD 2,000,000 of taxable profit[18] Cash Flow and Capital Expenditures - As of December 31, 2023, cash and bank balances were HKD 98.7 million, down from HKD 112.1 million as of June 30, 2023[41] - Capital expenditures for the period were approximately HKD 7.8 million, mainly for machinery and computer equipment[45] - The cash conversion cycle was negative 12 days, compared to negative 8 days for the previous period[43] Market Performance - Sales revenue from the US market accounted for 73% of total sales, while Europe contributed 15% and other markets accounted for 12%[32] - The company remains optimistic about future prospects, expecting gradual revenue improvement as inflation and customer destocking ease[51]

Financial Performance - Top Form's revenue for FY2023 decreased by 32% year-over-year, amounting to HK$1,007 million, primarily due to reduced demand from major U.S. customers[22] - Gross profit for FY2023 was HK$175 million, down from HK$274 million in FY2022, reflecting a decline of HK$98 million[16] - The gross profit margin decreased to 17.4% in FY2023 from 18.5% in FY2022, a drop of 1.1 percentage points[16] - The company reported a loss of HK$78.5 million for FY2023, compared to a profit of HK$11.5 million in FY2022, representing a decline of HK$90 million[16] - Total equity decreased to HK$419.8 million in FY2023 from HK$507.3 million in FY2022, a reduction of HK$87.5 million[16] - Total debt increased to HK$123.8 million in FY2023 from HK$115.4 million in FY2022, an increase of HK$8.4 million[16] - Cash and cash equivalents decreased to HK$112.1 million in FY2023 from HK$136.5 million in FY2022, a decline of HK$24.4 million[16] - The gearing ratio rose to 29.5% in FY2023 from 22.8% in FY2022, an increase of 6.7 percentage points[16] Market Conditions and Strategy - The Group's revenue for FY2023 decreased by 32% to HKD 1,007 million due to high inventory levels and weak consumer demand in the US market[24] - Despite the challenges, the company believes the worst of the current downturn is behind it, although continued global demand challenges are anticipated in the near term[22] - The company is prioritizing cost management and efficiency by consolidating manufacturing capacity to navigate uncertain market conditions[22] - The Group anticipates that global demand will remain subdued in the short term, despite believing that the most severe economic period has passed[24] - The company is committed to reducing operating costs and optimizing utilization rates to navigate uncertain market conditions while focusing on profitability and sustainable growth[81] Operational Developments - The company is actively expanding its strategic presence in Asia, including the inauguration of a foam cup production facility in Sri Lanka in early 2023[23] - Investments have been made to gradually expand capacity and capabilities in Indonesia throughout the year to meet growing customer demands[23] - Top Form has established a Commercial Operation Hub in Maesot, Thailand, enhancing its manufacturing capabilities to better serve customers in the region[50] - The company has refocused its manufacturing footprint for intimate apparel in Thailand, Indonesia, and China, while strengthening partnerships with subcontractors[51] - Investments in the knitted seamless plant in Thailand have significantly increased machine efficiency, utilization, and output quality during the reporting period[59] - Grand Gain Industrial Limited, a subsidiary of Top Form, opened a new plant in Sri Lanka with a capacity of over 15 million pairs of foam cups annually[60] Innovation and Technology - The CEO highlighted the commitment to product innovation and best-in-class service to strengthen the company's market position amid challenging conditions[35] - The company is leveraging proprietary innovations and technical expertise to nurture long-term partnerships with customers, even during market volatility[41] - Recent collaborations with research institutions and technology startups aim to address complex fit and technical challenges in product design[43] - The company is focusing on digital transformation by mastering Digital Product Creation technology to enhance speed, agility, and sustainability in the apparel value chain[42] - Continuous innovation and investment in technology are essential for maintaining Top Form's leadership in the industry[46] Sustainability and Corporate Governance - The company is committed to ambitious carbon emission reduction targets, aiming for significant reductions by fiscal year 2030[62] - The company has established clear sustainability goals, including ambitious carbon reduction targets by FY2030[64] - The Group is committed to complying with relevant environmental laws and policies in its operating jurisdictions, emphasizing its ESG performance[186] - The board is committed to maintaining a strong corporate governance framework, with regular reviews of compliance and risk management practices[156] Future Outlook - The company expects a rebound in customer orders in the second half of the financial year ending June 30, 2024, as inventory-to-sales ratios decline[136] - The company aims to capitalize on opportunities arising in the coming years despite current market headwinds[137] - Future outlook includes plans for market expansion in Asia, targeting a 20% increase in market share by 2025[156] - The company aims to achieve a revenue growth of 10% in the next fiscal year, driven by new product launches and market expansion efforts[157] - The management team has set a performance guidance of achieving an EBITDA margin of 25% for the upcoming year[157] Human Resources and Employee Development - The management team is committed to equipping employees with necessary skills and resources to excel in a fast-paced business environment[28] - The Group provides resources for employee training and development, offering competitive remuneration packages[188] - As of June 30, 2023, the group employed approximately 6,242 employees, down from approximately 7,239 employees a year earlier[111] Financial Management - Finance costs increased from HK$7.9 million to HK$12.4 million, driven by successive interest rate hikes[97][101] - Selling and distribution expenses decreased to HK$29.2 million from HK$37.6 million, primarily due to lower sales[89][94] - General and administrative expenses slightly decreased to HK$228.2 million from HK$231.1 million, influenced by reduced staff-related expenses and exchange gains, offset by new operational costs in Indonesia and Sri Lanka[90][95] - The cash conversion cycle improved from positive 16 days to negative 8 days, mainly due to extended purchase payment terms and increased receivables turnover days[100][104] - Capital expenditure for the year amounted to HK$33.1 million, primarily for establishing foam cup factories in Sri Lanka[105] Corporate Structure and Governance - The Group's principal activities include the design, manufacture, and distribution of ladies' intimate apparel, primarily brassieres[175] - The Group's Chief Financial Officer, Mr. Pang Kin Wah, has extensive experience in financial reporting and management[159] - The Group's technology initiatives are led by Mr. Ng Chi Keong, who has 30 years of experience in Information Technology[165] - The Group's new product development and innovation are overseen by Mr. Eduardo Portabella, the Group Technical Director[166] - The Group's human resources strategy is managed by Ms. Tse Ting Ting, who has over 30 years of experience in HR management[160] - The Group's planning and supply chain functions are directed by Mr. Wong Chor Wai, who has been with the Group since 1989[168] Risk Management - The Group faces principal risks that are discussed in the Management Discussion and Analysis section of the annual report[176] - There were no reported non-compliance issues with relevant laws and regulations that significantly impacted the Group during the year[187]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 TOP FORM INTERNATIONAL LIMITED 黛 麗 斯 國 際 有 限 公 司* （於百慕達註冊成立之有限公司） （股份代號：333） 截至二零二三年六月三十日止年度之全年業績公告 全年業績 黛麗斯國際有限公司（「本公司」）之董事（「董事」）會（「董事會」）欣然公佈本公司 及其附屬公司（統稱「黛麗斯」或「本集團」）截至二零二三年六月三十日止年度之 綜合業績如下： 綜合損益表 截至二零二三年六月三十日止年度 （除另有說明者外，均以港元列示） 二零二三年 二零二二年 附註 千港元 千港元 收入 3 1,007,016 1,481,592 銷售成本 (831,677) (1,207,664) 毛利 175,339 273,928 ...

Financial Performance - Revenue for the six months ended December 31, 2022, was HK$471.9 million, a decrease of 34% compared to HK$713.7 million in the same period of 2021[11]. - Gross profit for the period was HK$88.97 million, down from HK$128.06 million, resulting in a gross profit margin of 18.9%, an increase of 1.0 percentage points from 17.9%[11]. - The company reported a loss for the period of HK$17.71 million, compared to a profit of HK$4.41 million in the previous year, representing a decline of HK$22.11 million[11]. - The Group's revenue decreased by 34% to HK$471.9 million for the Period from HK$713.6 million for the six months ended 31 December 2021[21][25]. - Gross profit decreased to HK$89.0 million for the Period from HK$128.1 million in the last corresponding period, while the gross profit margin increased from 17.9% to 18.9%[22][26]. - The Group recorded a net loss of HK$17.7 million for the Period, compared to a net profit of HK$4.4 million in the corresponding period last year[31][35]. - Total comprehensive income for the period was HK$(22,717,000), a significant decline from HK$332,000 in the prior year[75]. - The Group reported a loss attributable to equity shareholders of $(23,847,000) for the six months ended December 31, 2022, compared to a profit of $450,000 in the same period of 2021[123]. Expenses and Costs - Selling and distribution expenses amounted to HK$15.1 million for the Period, down from HK$18.8 million for the six months ended 31 December 2021[24][28]. - General and administrative expenses decreased to HK$96.8 million for the Period from HK$111.8 million for the six months ended 31 December 2021[29][33]. - Finance costs increased from HK$3 million for the six months ended 31 December 2021 to HK$4.4 million for the Period, primarily due to rising interest rates[30][34]. - The Group's finance costs increased to $4,408,000 for the six months ended December 31, 2022, up from $3,042,000 in 2021, representing a rise of approximately 45%[115]. Cash Flow and Liquidity - Cash and cash equivalents decreased to HK$114.06 million from HK$136.49 million, a decline of HK$22.42 million[11]. - The cash conversion cycle days increased from 16 days to 23 days, driven by higher inventory and receivable days[37][39]. - Net cash generated from operating activities increased to $30,851,000 for the six months ended December 31, 2022, compared to $20,028,000 in the same period of 2021, representing a growth of 53.9%[91]. - Net cash used in investing activities was $(15,317,000) for the six months ended December 31, 2022, slightly improved from $(15,629,000) in the prior year[91]. - Net cash used in financing activities was $(37,472,000) for the six months ended December 31, 2022, a decrease from a net cash generated of $7,587,000 in the same period of 2021[91]. Assets and Liabilities - Total equity decreased to HK$485.38 million from HK$507.33 million, a decline of HK$21.95 million[11]. - Total debt was reduced to HK$88.57 million from HK$115.40 million, a decrease of HK$26.84 million[11]. - Non-current assets increased to HK$404,755,000 as of December 31, 2022, compared to HK$405,473,000 at June 30, 2022[79]. - Current assets decreased to HK$413,711,000 from HK$492,952,000, reflecting a decline in trade receivables and cash[79]. - As of December 31, 2022, non-current liabilities increased to $62,126,000 from $54,415,000 as of June 30, 2022, representing a 14.5% increase[81]. - Net assets decreased to $485,377,000 as of December 31, 2022, down from $507,328,000 as of June 30, 2022, reflecting a decline of 4.3%[81]. Investments and Capital Expenditure - Capital expenditure during the Period amounted to HK$28.4 million, primarily for establishing foam cup factories in Sri Lanka and expanding capacity in Indonesia[40][42]. - The company has increased its investment in an Indonesian company producing women's underwear by HK$12.9 million, with HK$7.5 million utilized[50]. - The Group acquired property, plant, and equipment at a cost of $28,427,000 during the six months ended December 31, 2022, compared to $13,811,000 in the same period of 2021, indicating an increase of approximately 106%[126]. Market and Sales Performance - Sales to the U.S. market accounted for 54% of total sales, while the EU represented 25% and the rest of the world 21%[17]. - The company anticipates a significant impact on financial performance in the second half of the fiscal year due to high inflation and reduced consumer confidence[65]. - The company remains optimistic about long-term business prospects despite current macroeconomic challenges[65]. Shareholder Information - As of December 31, 2022, Mr. Wong Chung Chong holds 89,952,724 shares, representing 29.88% of the issued share capital of the Company[188]. - Mr. Herman Van de Velde has an interest in 77,258,590 shares, accounting for 25.66% of the issued share capital[188]. - The total number of shares beneficially owned by Mr. Wong Chung Chong and his associates amounts to 89,952,724 shares, which is 29.88% of the issued share capital[192]. - The Company has no other interests or short positions in shares, underlying shares, or debentures by Directors or chief executives as of December 31, 2022[193].

Financial Performance - Revenue for the year ended June 30, 2022, was HK$1,481,592,000, an increase of HK$53,060,000 from HK$1,428,532,000 in 2021, representing a growth of approximately 3.7%[13] - Gross profit for the same period was HK$273,928,000, up from HK$237,979,000 in 2021, reflecting an increase of HK$35,949,000, with a gross profit margin of 18.5%, up from 16.7%[13] - Profit for the year was HK$11,488,000, compared to HK$7,145,000 in 2021, indicating an increase of HK$4,343,000[13] - Adjusted profit for the year was HK$13,822,000, a significant recovery from a loss of HK$30,907,000 in the previous year, marking an improvement of HK$44,729,000[13] - Profit before taxation for the year was $19.22 million, compared to a profit of $11.95 million in the previous year[21] - Profit for the year attributable to equity shareholders of the company was $3.55 million, up from $2.80 million in the previous year[21] - The Group recorded a profit after tax of HK$11.5 million for the year ended 30 June 2022, compared to HK$7.1 million for the year ended 30 June 2021, representing a 62% increase[114] Assets and Liabilities - Total equity as of June 30, 2022, was HK$507,328,000, a slight decrease from HK$510,523,000 in 2021, down by HK$3,195,000[13] - Total debt increased to HK$115,404,000 from HK$87,980,000 in 2021, an increase of HK$27,424,000[13] - Total assets as of June 30, 2022, were $898.43 million, a decrease from $936.48 million in 2021[22] - Total liabilities decreased to $391.10 million from $425.96 million in the previous year[22] - The Group's total reserves available for distribution to equity shareholders amounted to HK$235,220,000, a slight decrease from HK$236,446,000 in 2021[186] Cash Flow and Financing - Cash and cash equivalents rose to HK$136,487,000, up by HK$44,270,000 from HK$92,217,000 in 2021[13] - The gearing ratio increased to 22.8% from 17.2%, reflecting a rise of 5.6 percentage points[13] - Finance costs increased from HK$6.8 million for the year ended 30 June 2021 to HK$7.9 million for the year ended 30 June 2022, primarily due to higher sales and increasing interest rates[113] - The Group's bank balances and cash increased to HK$136.5 million as at 30 June 2022, up from HK$92.2 million as at 30 June 2021[115] - Total bank borrowings rose to HK$115.4 million as at 30 June 2022, compared to HK$88 million as at 30 June 2021, resulting in a gearing ratio of 22.8%[115] Market and Economic Outlook - The company anticipates that weakening consumer demand in the US and EU will temper growth momentum in the near term[28] - The current economic downturn is expected to impact Top Form's financial results, with significant inventory levels and reduced consumer demand for apparel[83] - The company expects customer demand to soften in the first half of fiscal 2023 due to rising inflation and declining disposable income in the U.S.[135] - Retailers in the U.S. have reported high inventory levels and are calling for aggressive price reductions to clear excess stock[135] Strategic Initiatives - The company aims to enhance its market position through innovation and sustainable operations, focusing on expanding its product offerings and improving service delivery[4] - Top Form plans to update its commitment to reduce greenhouse gas emissions by 2030 and aims for carbon neutrality[34] - The company is focused on executing its long-term strategy through service, innovation, and speed to better serve customers in the future[136] - The company is committed to creating value for customers and supply chain partners by optimizing supply chain management and operational efficiency[60] - The company aims to strengthen relationships with customers through improved communication and transparency in operations and procurement processes[60] Operational Efficiency and Innovation - Significant investments were made in enhancing services and capabilities, focusing on design, development, and supply chain management to better serve customers[51] - The adoption of 3D technology in product design has increased, aiming to improve speed-to-market and efficiency in the development of intimate apparel[53] - The company has invested significantly in upgrading human resources and systems, including digitizing processes and hiring experienced staff to enhance service and product quality[60] - The company emphasizes product innovation as a key driver of strategy and growth, focusing on creating long-lasting, high-quality intimate apparel products[63] - The company has established a strong innovation pipeline to support future product development, although success is not guaranteed and requires ongoing investment and discipline[63] Supply Chain Management - The company faced challenges due to global supply chain disruptions, including raw material shortages and high logistics costs[26] - The company has been proactive in managing supply chain risks and has demonstrated resilience by adapting to government restrictions during the pandemic[66] - Top Form has integrated more supply chain and operational activities, enhancing lead times and decision-making processes during uncertain times[57] - The strategic manufacturing network is designed to be resilient, allowing the company to effectively meet market demands and minimize risks associated with trade restrictions and seasonality[66] - The company has diversified its manufacturing footprint by acquiring a minority stake in an Indonesian factory, recognizing it as a strategic manufacturing hub in Asia[66] Employee and Corporate Governance - The Group employed approximately 7,239 employees as at 30 June 2022, a decrease from approximately 7,681 employees as at 30 June 2021[124] - The Group has maintained a commitment to employee development, providing training and development resources to enhance talent and align with corporate strategy[182] - The management team expressed confidence in the company's future achievements, emphasizing the importance of employee contributions and a supportive corporate culture[92] - The Company has confirmed the independence of all independent non-executive Directors as per the Listing Rules of the Hong Kong Stock Exchange[191] Corporate Transactions and Relationships - The Company has been conducting transactions with Van de Velde N. V. for the past 40 years, supplying ladies' intimate apparel[193] - The Master Agreement governing Continuing Connected Transactions was first established on 18 September 2005 and has undergone multiple renewals, with the latest being the 5th Renewal Agreement dated 7 April 2020[199] - The annual caps for Continuing Connected Transactions under the 5th Renewal Agreement are set at HK$160 million, HK$170 million, and HK$180 million for the financial years ending 30 June 2021, 2022, and 2023 respectively[200]

Financial Performance - Revenue for the six months ended December 31, 2021, was HK$713.652 million, an increase of 11.7% from HK$638.724 million in 2020[14] - Gross profit for the same period was HK$128.057 million, with a gross profit margin of 17.9%, down from 19.0% in the previous year[14] - Profit for the period decreased to HK$4.409 million, a decline of 85% compared to HK$29.306 million in 2020[14] - Adjusted profit for the period was HK$5.446 million, a significant improvement from a loss of HK$4.849 million in the prior year[14] - The Group recorded a net profit of HK$4.4 million for the Period, a significant decrease from HK$29.3 million in the corresponding period last year[46] - Other net income decreased to HK$10 million from HK$45.7 million, primarily due to the absence of one-off sales proceeds from property disposal and government subsidies received in the previous year[38] - Total comprehensive income for the period was $332, down from $43,533,000, a decrease of 99.2%[92] - Profit for the period attributable to the owners of the Company was $450,000, a significant decrease from $24,699,000 in the same period last year[165] Operational Challenges - The company faced operational challenges due to COVID-19 disruptions, including increased absenteeism and production line closures[24] - Significant additional costs were incurred for regular testing and compliance with isolation requirements to maintain operations[24] - The spike in global demand has driven up commodity prices, impacting input costs for the company[24] - The Group does not expect to be immune from the impact of the Omicron variant on operations, anticipating that the chaotic situation will continue throughout the year[77] Market and Product Trends - Demand for products returned to pre-pandemic levels, with strong orders from U.S. and European customers for innovative intimate apparel[22] - The company continues to adapt to market trends, focusing on comfortable and well-fitted intimates suitable for leisure and remote work[22] - The Group's strategic diversification in manufacturing across China and Southeast Asia helped mitigate major disruptions during the crisis, resulting in a resilient operational performance[30] Financial Position - Total equity increased to HK$511.892 million, while total debt rose to HK$106.601 million, resulting in a gearing ratio of 20.8%, up from 17.2%[14] - The Group's bank balances and cash stood at HK$102.9 million, while total bank borrowings increased to HK$106.6 million, resulting in a gearing ratio of 20.8%[47] - The cash conversion cycle improved to 22 days from 24 days, indicating better working capital management[48] - The cash conversion cycle days decreased from 24 days to 22 days, primarily due to longer payable days, which were partially offset by increased inventory days from 67 days to 83 days[54] - Capital expenditure during the period amounted to HK$13.8 million, mainly for capacity expansion in Southeast Asia[55] Cash Flow and Investments - For the six months ended December 31, 2021, net cash generated from operating activities was HKD 20,028,000, a significant improvement compared to a net cash used of HKD 46,247,000 in the same period of 2020[113] - The company reported a net cash used in investing activities of HKD 15,629,000, a decrease from net cash generated of HKD 8,253,000 in the prior year[113] - The financing activities generated a net cash inflow of HKD 7,587,000, compared to a net cash outflow of HKD 8,074,000 in the same period last year[113] - The actual use of net proceeds as of December 31, 2021, was HK$18.2 million out of the total HK$40.4 million raised from the rights issue[71] Shareholder and Equity Information - The total equity attributable to owners of the company was HKD 511,852,000 as of December 31, 2021[108] - Basic and diluted earnings per share decreased to 0.15 HK cents from 11.49 HK cents, a drop of 98.7%[87] - No interim dividend was declared or paid for the current period, compared to $Nil in the previous year[167] - The capital contribution from a non-controlling shareholder was HKD 1,008,163,000, reflecting strong support from stakeholders[113] Compliance and Reporting - The interim financial report was prepared in accordance with HKAS 34, ensuring compliance with relevant accounting standards[118] - The interim financial report is unaudited but has been reviewed by the Company's Audit Committee[125] - The accounting policies adopted for the preparation of the financial information are consistent with those used in the Group's financial statements[141] - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[132]

Financial Performance - The company recorded a sales revenue of HKD 1.43 billion for the fiscal year, representing a year-on-year growth of 16%[12] - Sales revenue increased by 16% to HKD 1,429 million for the year ended June 30, 2021, compared to HKD 1,237 million in the previous fiscal year[18] - Gross profit rose from HKD 180.3 million to HKD 238.0 million, with a gross margin increase from 15% to 17%[19] - The company recorded a profit after tax of HKD 7.1 million for the year ended June 30, 2021, compared to a net loss of HKD 77.5 million in the previous year[25] - Other income net increased significantly from HKD 8.8 million to HKD 56.6 million, primarily due to the sale of a property for HKD 28 million[21] - The financial expenses increased from HKD 5.5 million to HKD 6.8 million, primarily due to increased sales revenue[24] Operational Challenges - The company faced significant operational challenges due to supply chain disruptions, including a more than 100% increase in freight costs compared to pre-pandemic levels[15] - The company’s production capacity was significantly impacted at the beginning of the fiscal year due to pandemic-related lockdowns[15] - The company temporarily halted production lines in Myanmar starting June 2021 due to political instability, with plans to resume once the situation stabilizes[12] - The company anticipates that the impact of the pandemic will continue into 2022, and it is working closely with local governments to implement measures to prevent virus transmission while maintaining production[39] Strategic Initiatives - The company raised HKD 40.4 million through a rights issue in February 2021 to invest in seamless business and increase new capacity[12] - The company implemented measures to improve liquidity and strengthen its balance sheet during the fiscal year[12] - The company is focused on executing key strategies and improving cash flow amid ongoing supply chain disruptions[40] - The company plans to continue monitoring the situation in Myanmar for potential production resumption[12] Market Demand - The demand for seamless products surged, particularly from major customers in the US and Europe, as lockdowns were lifted[15] - The U.S. market accounted for 75% of total sales, while Europe contributed 15% and other markets 10%[17] Corporate Governance - The company is committed to maintaining high standards of corporate governance and has complied with the relevant codes during the year[102] - The board consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors[122] - The independent non-executive directors are required to retire and seek re-election at least once every three years[120] - The company has established clear and specific terms of reference for its board committees, which report their decisions and recommendations to the board[133] Sustainability Initiatives - The company launched an ambitious new sustainability strategy in 2020, focusing on three pillars: caring for the earth, empowering employees, and building communities[191] - The sustainability framework aligns with the United Nations Sustainable Development Goals, addressing global challenges and aiming for a sustainable future[191] - The company is committed to reducing its carbon footprint and promoting a circular economy as part of its sustainability initiatives[192] - The company emphasizes the importance of good environmental, social, and governance performance to meet stakeholder expectations[181] Employee Relations - The company is committed to developing and nurturing talent, providing training and development opportunities for employees[53] - The company provides reasonable wages and benefits to employees, with additional perks such as annual dinners, outings, and holiday gifts, along with support for employees facing difficulties[198] - The company conducts annual assessments of employee performance, rewarding outstanding performers with bonuses[198] Shareholder Communication - The company has adopted a "Shareholder Communication Policy" to ensure appropriate, equal, and timely access to balanced and easily understandable information for shareholders[172] - The company is committed to maintaining open communication with institutional investors and analysts to enhance understanding of its management and financial status[171] Related Transactions - The company has engaged in continuous related transactions with Van de Velde (VdV) for 39 years, with VdV holding approximately 25.66% of the company's issued share capital[63] - The total annual cap for related transactions with VdV for the fiscal years ending June 30, 2021, 2022, and 2023 is set at HKD 160 million, HKD 170 million, and HKD 180 million respectively[64] - For the fiscal year ending June 30, 2021, the company sold women's lingerie to VdV amounting to HKD 97,114 thousand, which is below the annual cap of HKD 160,000 thousand[66] Audit and Compliance - The audit committee reviewed the group's accounting principles and financial performance for the year ended June 30, 2021[105] - KPMG was the auditor for the consolidated financial statements for the year ended June 30, 2021, and will be proposed for reappointment at the upcoming annual general meeting[106] - The audit committee reviewed the internal control and risk management systems, ensuring their effectiveness throughout the year[137]

Financial Performance - Revenue for the six months ended December 31, 2020, was HKD 638.724 million, a decrease of 0.14% from HKD 644.620 million in 2019[18] - Gross profit increased to HKD 121.651 million, representing a 13.3% increase from HKD 107.349 million in the previous year[18] - Operating profit for the period was HKD 32.954 million, a significant recovery from an operating loss of HKD 12.919 million in 2019[18] - Net profit for the period was HKD 29.306 million, compared to a net loss of HKD 13.192 million in the same period last year[18] - Total comprehensive income for the period was HKD 43.533 million, a turnaround from a loss of HKD 13.944 million in 2019[20] - The company reported earnings per share of HKD 11.49, a recovery from a loss per share of HKD 6.76 in the previous year[18] - The group recorded a profit of HKD 29.3 million for the six months ended December 31, 2020, compared to a net loss of HKD 13.2 million in the same period last year[96] Assets and Liabilities - The company's total assets increased to HKD 1,163.151 million from HKD 844.062 million as of June 30, 2020[23] - Current liabilities rose to HKD 425.712 million, up from HKD 325.579 million in the previous period[23] - The net asset value increased to HKD 154.203 million, compared to HKD 121.239 million as of June 30, 2020[23] - The company's total liabilities as of December 31, 2020, were not explicitly stated but are implied to have increased given the changes in cash flow and capital expenditures[41] Cash Flow and Investments - The company reported a net cash outflow from operating activities of HKD (46,247) thousand for the six months ended December 31, 2020, compared to HKD (15,438) thousand in the same period of 2019[41] - The net cash generated from investing activities was HKD 8,253 thousand for the six months ended December 31, 2020, contrasting with a net cash outflow of HKD (33,381) thousand in the previous year[41] - The company had cash and cash equivalents of HKD 76,425 thousand as of December 31, 2020, up from HKD 72,331 thousand a year earlier[41] - The cash conversion cycle increased from 37 days to 52 days, primarily due to increased raw material inventory ahead of the Lunar New Year and global container shortages[99][100] - Capital expenditures for the period were approximately HKD 17.1 million, mainly for expanding overseas production capacity[101] Revenue Sources and Market Focus - The company’s revenue is primarily derived from the production and sale of women's lingerie, indicating a focused business model[51] - The U.S. market accounted for 78% of total sales, while Europe contributed 13%, and other markets made up 9%[88] Other Income and Expenses - Total other income for the six months ended December 31, 2020, was 45,717,000 HKD, significantly up from 7,938,000 HKD in the previous year[53] - The company sold a property for a net gain of 27,868,000 HKD, with a sale price of 28,000,000 HKD[54] - Government grants received amounted to 10,755,000 HKD, a substantial increase from 1,160,000 HKD in the prior year[54] - Sales and distribution expenses increased to HKD 35.0 million from HKD 19.5 million, primarily due to rising freight costs caused by ongoing supply chain disruptions from COVID-19[93] - General and administrative expenses decreased from HKD 108.7 million to HKD 99.4 million, a reduction of approximately 8.5% due to cost-cutting measures during the pandemic[94] - Financial expenses increased from HKD 1.6 million to HKD 2.9 million, representing an increase of 81.3%, primarily due to higher borrowing and the adoption of new leasing standards[95] Shareholder Information - As of December 31, 2020, the total number of issued ordinary shares was 215,037,625[120] - Mr. Huang Songcang holds 147,577,873 shares, representing 68.63% of the company's issued share capital[120] - Mr. Herman Van de Velde holds 55,184,708 shares, accounting for 25.66% of the company's issued share capital[120] - Mr. Feng Weiyao has a beneficial ownership of 8,705,704 shares, which is 4.05% of the total issued shares[120] - The company plans to issue up to 21,549,920 shares under the underwriting agreement with High Union[124] - The new stock option plan allows for a maximum of 10% of the company's issued shares as of the adoption date, equating to 107,518,812 shares[130] Corporate Governance and Compliance - The financial report is unaudited but has been reviewed by the company's audit committee, ensuring a level of oversight[45] - The audit committee reviewed the group's accounting principles and practices, as well as financial reporting matters and risk management systems[138] - The company has complied with the corporate governance code, with the exception of certain deviations regarding the appointment and re-election of non-executive directors[139] Future Outlook and Challenges - The company aims to expand its market presence and enhance product offerings through sustainable operations and innovative partnerships[5] - The company anticipates strong business recovery but faces ongoing challenges from cross-border travel restrictions and supply chain disruptions[109] - Geopolitical uncertainties, particularly in Myanmar, pose additional risks to the company's investments in the region[109] - The company will continue to focus on operational efficiency and cost control while cautiously expanding production capacity overseas[109]