Sales Performance - In the fiscal year 2020, the company's sales remained flat compared to the previous year, primarily due to the implementation of key strategies such as the production of seamless products in Thailand and the continued expansion of capacity in Southeast Asia[13]. - The company experienced a moderate sales growth in the first half of the fiscal year, despite the challenges posed by the US-China trade tensions and the COVID-19 pandemic[12]. - Sales revenue for the year ended June 30, 2020, increased by 1% to HKD 1,237 million, compared to HKD 1,225 million in the previous fiscal year[18]. - The proportion of sales from the US market accounted for 74% of total sales, while Europe accounted for 17% and other markets for 9%[17]. - The largest customer accounted for 33% of total revenue, while the top five customers contributed 85%[86]. Financial Performance - Gross profit decreased from HKD 198.1 million to HKD 180.3 million, with a gross margin decline from 16% to 15% due to increased operational costs and delays in factory expansions[19]. - The company recorded a net loss of HKD 77.5 million for the year ended June 30, 2020, compared to a net loss of HKD 62.8 million in the previous year[24]. - Financial expenses increased from HKD 0.5 million to HKD 5.5 million due to higher borrowing and leasing costs during the pandemic[23]. - The total distributable reserves available for equity shareholders as of June 30, 2020, amounted to HKD 237,116,000, a slight decrease from HKD 238,710,000 in 2019[48]. - The company did not declare a final dividend for the year ending June 30, 2020, consistent with the previous year where no dividend was declared[41]. Operational Challenges - The COVID-19 pandemic severely disrupted global supply chains and economic activities, leading to increased operational costs for the company[12]. - The company took several measures to ensure operational continuity during the pandemic, including remote work arrangements for key staff and cost-cutting initiatives[12]. - The company plans to adopt a cautious approach in response to the uncertain business environment caused by the ongoing pandemic[13]. - The management team emphasized the importance of maintaining operational flexibility, resilience, and innovation in navigating the challenges posed by the global economic changes[13]. - The company expressed gratitude to its board and business partners for their support during the challenging year[14]. Production and Capacity - The company has accelerated the shift of production capacity from China to Southeast Asia, with China's production capacity share decreasing from 35% in FY2018 to 22% in FY2020[17]. - The company’s capital expenditure for the year was approximately HKD 92.7 million, mainly for establishing seamless production facilities and expanding overseas capacity[26]. Governance and Compliance - The company has confirmed the independence of its non-executive directors in compliance with the Hong Kong Stock Exchange listing rules[58]. - The company has established long-term relationships with employees, customers, and suppliers, emphasizing the importance of training and competitive compensation for employees[46]. - The company has not identified any significant non-compliance with relevant laws and regulations that would adversely affect its operations as of June 30, 2020[44]. - The company has a structured approach to risk management, with key risks discussed in the management analysis section of the annual report[40]. - The company has adopted a code of conduct to guide the behavior of directors, management, and employees[161]. Employee and Workforce Management - The total number of employees as of June 30, 2020, was 7,406, with 66% based in China and Hong Kong and 34% overseas[188]. - Employee distribution by age shows 60% are over 30 years old, while 40% are 30 years old and below[189]. - Gender distribution indicates that 90% of employees are male and 10% are female[190]. - The company has established a performance management system to provide fair and systematic evaluations for all employees[199]. - The company has implemented an "Environment, Health, and Safety Policy" to ensure a safe working environment[195]. Corporate Social Responsibility - The company emphasizes a commitment to sustainable production, excellent employer practices, and being a responsible corporate citizen[178]. - The company has achieved gold-level certification from an international social responsibility organization for all major garment factories, ensuring compliance with responsible production principles[200]. - The company prohibits the employment of child labor and forced labor, ensuring that all hiring processes verify the age of applicants[200]. - The company made charitable donations amounting to HKD 66,000 during the year, an increase from HKD 43,000 in the previous year[88]. Risk Management - The company has established a risk management and internal control system to identify, assess, mitigate, report, and monitor risks[139]. - The board is responsible for maintaining an effective risk management and internal control system, with regular reviews conducted by the audit committee[140]. - The Audit Committee reviewed internal control and risk management processes and was satisfied with their overall effectiveness[129]. Future Outlook - The company is optimistic about resuming growth once the pandemic threat is mitigated[14]. - Management remains confident in business development despite ongoing challenges, focusing on business expansion, product diversification, and improving service levels[33]. - The company is focused on expanding its market presence and enhancing product development strategies to drive future growth[99][100].

Financial Performance - Revenue for the six months ended December 31, 2019, was HKD 644.62 million, an increase of 6.25% from HKD 606.70 million in the same period of 2018[11] - Gross profit for the same period was HKD 107.35 million, representing a gross margin of approximately 16.65%[11] - The company reported a loss before tax of HKD 12.97 million, slightly improved from a loss of HKD 13.13 million in the previous year[11] - The net loss for the period was HKD 13.19 million, compared to a net loss of HKD 13.94 million in the prior year, indicating a reduction in losses[11] - Basic loss per share was HKD 6.76, compared to HKD 5.49 in the previous year[11] - The overall comprehensive income for the period was HKD (15,332,000), showing a decline compared to the previous period, which may require strategic adjustments[22] - The company reported a loss attributable to shareholders of 14,539,000 HKD for the period, compared to a loss of 11,808,000 HKD in the previous period[146] Assets and Liabilities - Total assets as of December 31, 2019, were HKD 1,101.49 million, a decrease from HKD 1,019.47 million as of June 30, 2019[17] - Current liabilities increased to HKD 293.54 million from HKD 257.17 million, reflecting a rise in trade payables and accrued expenses[17] - The company’s net asset value was HKD 525.16 million, slightly up from HKD 523.18 million in the previous period[19] - The company reported a total asset value of HKD 500,580,000 as of December 31, 2019, reflecting growth in the asset base[22] - The total equity attributable to shareholders was HKD 523,182,000, indicating a strong equity position[22] - The company’s total liabilities increased by HKD 26,416,000 due to the recognition of lease liabilities[119] Cash Flow - The net cash used in operating activities was HKD (15,438,000), which reflects an increase in operational costs compared to HKD (10,620,000) in the prior year[92] - The company experienced a net cash outflow from investing activities of HKD (33,381,000), up from HKD (11,416,000) in the previous year, indicating increased investment in assets[92] - Financing activities generated a net cash inflow of HKD 24,407,000, a substantial improvement from a net outflow of HKD (10,919,000) in the prior year[92] - As of December 31, 2019, the company's cash and cash equivalents stood at HKD 72,331,000, compared to HKD 68,285,000 at the end of the previous year[92] Strategic Plans - The company aims to enhance its market position through sustainable operations and innovative product development[6] - Future strategies include expanding production capabilities and exploring potential mergers and acquisitions to drive growth[6] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[24] - The company has initiated new product development strategies aimed at enhancing its competitive edge in the market[24] Lease Accounting - The company adopted the new Hong Kong Financial Reporting Standard No. 16 "Leases" effective from July 1, 2019, which requires all leases to be capitalized, excluding short-term leases and low-value asset leases[101] - The average incremental borrowing rate used to discount lease liabilities as of July 1, 2019, was determined to be 4%[111] - The company chose not to apply the requirements of recognizing lease liabilities and right-of-use assets for leases that end within 12 months from the date of first adoption[111] - The transition to the new lease standard did not have a significant impact on the company's financial performance or position for prior periods[99] - The company continues to assess whether existing arrangements qualify as leases under the new standard, maintaining previous evaluations for contracts established before July 1, 2019[105] - The company will recognize lease payments for non-capitalized leases as expenses over the lease term[108] - The new definition of leases focuses on the concept of control over the use of identified assets[103] - The company will capitalize all leases classified as operating leases under the previous standard, except for short-term and low-value asset leases[106] - The company will adjust the carrying amount of right-of-use assets when lease liabilities are remeasured due to changes in future lease payments[110] - The company reported a total lease liability of HKD 37,296,000 as of July 1, 2019, after adjustments for operating leases[116] - The impact of adopting HKFRS 16 resulted in a capitalization of operating leases amounting to HKD 38,888,000[118] - The company’s total non-current assets increased to HKD 344,175,000 due to the recognition of right-of-use assets[119] Shareholder Information - As of December 31, 2019, the company had significant shareholdings, with Mr. Huang Songcang holding 61,162,823 shares, representing 28.44% of the issued share capital[183] - High Union Holdings Inc. and TGV each held 60,626,823 shares, accounting for 28.19% of the issued share capital[189] - Herman Van de Velde held 55,184,708 shares, which is 25.66% of the issued share capital[189] - The company’s major shareholders include David Michael Webb, who holds 10,772,000 shares, representing 5% of the issued share capital[189] - The company’s share capital is structured with a par value of HKD 0.50 per share[189] - The report indicates that there are no other significant shareholdings disclosed by directors or their associates in the company or its subsidiaries[187] Dividends and Share Options - The company did not declare any interim dividends for the current period, maintaining a zero dividend payout[140] - No interim dividend was declared for the six months ended December 31, 2019, compared to none for the same period in 2018[198] - The company granted 5,920,000 stock options to directors and employees, with an exercise price of 1.172 HKD, vesting on September 30, 2022[157] - The total number of share options granted to directors and employees was 5,520,000 as of September 30, 2019[196] - The exercise price for the share options is HKD 1.172, with an exercise period from September 30, 2022, to September 29, 2024[196] - The maximum number of shares that can be granted under the share option plan is capped at 10% of the issued shares as of the adoption date, which translates to 107,518,812 shares[193] - The exercise price of the options is determined by the board but cannot be less than the closing price on the offer date or the average closing price over the preceding five trading days[193] Operational Highlights - The group recorded a net loss of HKD 13.2 million for the six months ended December 31, 2019, compared to a net loss of HKD 13.9 million in the same period last year[174] - The group’s capital expenditure for the period was approximately HKD 60 million, primarily for establishing the seamless factory and expanding overseas production capacity[177] - The group’s sales in the U.S. market accounted for 74% of total sales, while Europe accounted for 17% and other markets for 9%[168] - The group has installed over 100 circular knitting machines in the seamless factory in Thailand, which began trial operations in December 2019[168] - The group expects the additional import tariff on bra products from China to remain in effect for the foreseeable future, despite a reduction from 15% to 7.5% following the U.S.-China trade agreement[179] - The group aims to enhance operational efficiency across all factories and expand overseas capacity, including the newly built factory in Myanmar[179] - As of December 31, 2019, the group's cash conversion cycle was 54 days, improved from 57 days as of June 30, 2019[175] - The group’s bank balance and cash reached HKD 72.3 million, with short-term bank loans of HKD 56.3 million and a capital debt ratio of 19.2%[175]

Financial Performance - For the fiscal year ending June 30, 2019, the company's sales revenue decreased by 4% to HKD 1,225 million, down from HKD 1,281 million in the previous fiscal year[29]. - Gross profit decreased from HKD 229.9 million to HKD 198.1 million, with a gross margin decline from 17.9% to 16.2% due to increased manufacturing costs and additional freight expenses[30]. - The number of retail bankruptcies has reached a historic high, significantly impacting major customers and contributing to the decline in sales revenue[29]. - The company recorded a net loss of HKD 62.8 million for the year, compared to a profit of HKD 12.3 million in the previous year[32]. - Cash conversion cycle improved to 57 days from 62 days, with inventory turnover period at 57 days and accounts receivable turnover at 60 days[34][35]. - Capital expenditure for the year was approximately HKD 41 million, primarily for establishing production facilities for innovative technology products and expanding overseas capacity[35]. - Sales and distribution expenses were HKD 35.7 million, down from HKD 36.7 million, reflecting a decrease in revenue[31]. - General and administrative expenses rose to HKD 238.7 million from HKD 187 million, with a 12% increase after excluding one-time restructuring costs[32]. Production and Capacity - The company has accelerated the transfer of production capacity from China to overseas locations due to ongoing US-China trade disputes, resulting in one-time restructuring costs[24]. - The overseas production capacity in Thailand and Cambodia now represents 66% of the company's total capacity, while domestic capacity accounts for the remaining 34%[28]. - The company has experienced a significant imbalance in production capacity utilization, prompting immediate measures to adjust underutilized capacity in China[28]. - The company plans to enhance production capacity in Southeast Asia, particularly in Myanmar, and commence production at a seamless factory in Thailand[43]. Investments and Innovation - The company has made significant investments in factories, machinery, talent, and technology to enhance operational efficiency and product innovation[25]. - The company has successfully launched seamless adhesive bras in the market, showcasing its commitment to product innovation[25]. Governance and Compliance - The company is committed to high standards of corporate governance and has adhered to the relevant codes throughout the year[88]. - The board of directors includes both executive and non-executive members, with specific terms for re-election at the annual general meeting[56]. - The company has maintained compliance with relevant laws and regulations, with no significant adverse effects reported as of June 30, 2019[53]. - The company has established a risk management and internal control system tailored to its business nature and organizational structure[133]. - The internal control system includes a designated management structure with limited authority to achieve business objectives[134]. - The company has adopted a nomination policy that outlines the criteria and procedures for appointing or re-electing directors[132]. Shareholder Information - The company will not declare a final dividend for the year ending June 30, 2019, compared to a dividend of HKD 0.05 per share for the previous year[49]. - The total distributable reserves available to equity shareholders as of June 30, 2019, amounted to HKD 238,710,000, compared to HKD 250,193,000 in 2018[54]. - The company has no provisions in its articles regarding preemptive rights for existing shareholders when issuing new shares[80]. - The company has not reported any changes in its share capital during the fiscal year[54]. Employee Development and Diversity - The company has a commitment to employee development, providing training and competitive compensation to enhance performance aligned with corporate strategy[54]. - The company has a diversity of over 15 nationalities among its employees, promoting an inclusive work environment[174]. - 91% of employees are male, while 9% are female, with 10% in senior management and 1% in middle management[180]. - The average training hours per employee were 5.3 hours during the reporting year, with 80% of training hours allocated to general employees[185]. Environmental, Social, and Governance (ESG) - The company’s environmental, social, and governance (ESG) report is prepared in accordance with the guidelines set by the Hong Kong Stock Exchange, highlighting its commitment to stakeholder expectations[165]. - The company has made adjustments to its ESG disclosures to reflect significant sustainability issues for its stakeholders[166]. - The company confirms that the data and case studies in its reports are accurate and free from misleading statements, taking responsibility for the report's content[167]. Risk Management - The company has implemented a risk assessment, identification, and management system to ensure continuous business development and improvement[154]. - The company’s internal audit department reviews the effectiveness and adequacy of the group's risk management and internal control systems, reporting to the audit committee[137]. Supplier and Customer Relations - The largest supplier accounted for 15% of the group's purchase amount, while the top five suppliers represented 40%[82]. - The largest customer contributed 49% to the group's revenue, with the top five customers accounting for 81%[82]. - The company has established procedures to screen and monitor suppliers to meet internal environmental standards[198].

Financial Performance - Revenue for the six months ended December 31, 2018, was HKD 606.7 million, a decrease of 6% from HKD 645.3 million in 2017[3] - Gross profit for the same period was HKD 99.8 million, down 19% from HKD 123.2 million in 2017[3] - The company reported a loss before tax of HKD 13.1 million compared to a profit of HKD 21.8 million in the previous year[3] - The net loss attributable to shareholders for the period was HKD 13.9 million, a significant decline from a profit of HKD 19.3 million in 2017[3] - Basic loss per share was HKD 5.49, compared to earnings of HKD 9.22 per share in the prior year[3] - Total comprehensive loss for the period amounted to HKD 17.5 million, compared to a comprehensive income of HKD 26.4 million in 2017[6] - The company reported a pre-tax loss of 11,808,000 HKD for the six months ended December 31, 2018, compared to a profit of 19,834,000 HKD in the same period of 2017, indicating a significant decline in performance[35] - The group reported a future minimum lease payment total of 39,622 thousand HKD as of December 31, 2018, compared to 34,925 thousand HKD as of June 30, 2018, reflecting an increase of approximately 7.5%[60] - The group recognized revenue of approximately 54,645,000 HKD from related company Van de Velde N.V. during the period, compared to 54,261,000 HKD for the same period in the previous year, indicating a slight increase[62] - For the six months ended December 31, 2018, the group's sales revenue decreased by 6% to HKD 606.7 million from HKD 645.3 million, primarily due to a decline in customer sales and adjustments in the product mix[76] - Gross profit fell from HKD 123.2 million to HKD 99.8 million, with the gross profit margin decreasing from 19.1% to 16.4%[79] - The group recorded a net loss of HKD 13.9 million for the period, compared to a profit of HKD 19.3 million in the same period last year[82] Assets and Liabilities - Non-current assets as of December 31, 2018, totaled HKD 239.2 million, slightly down from HKD 240.5 million as of June 30, 2018[8] - Current assets increased to HKD 496.4 million from HKD 474.5 million in the previous period, driven by higher inventory and receivables[8] - The company's total equity decreased to HKD 524.2 million from HKD 552.5 million, reflecting the losses incurred during the period[10] - Trade receivables increased to 229,189,000 HKD as of December 31, 2018, up from 196,814,000 HKD on June 30, 2018, reflecting a growth of approximately 16.4%[42] - Trade payables increased significantly to 125,864,000 HKD as of December 31, 2018, compared to 74,951,000 HKD on June 30, 2018, marking an increase of approximately 68%[45] - The total assets and liabilities as of December 31, 2018, were derived entirely from the production business, indicating a focused operational strategy[27] Cash Flow and Investments - The cash flow from operating activities showed a net outflow of 10,620 thousand HKD, compared to a net outflow of 9,624 thousand HKD in the previous year[19] - The company experienced a decrease in cash and cash equivalents, with a net reduction of 32,955 thousand HKD, compared to a reduction of 29,291 thousand HKD in the prior year[19] - The company’s cash balance at the end of the reporting period was 68,285 thousand HKD, down from 104,351 thousand HKD the previous year[19] - The company’s investment activities resulted in a net cash outflow of 11,416 thousand HKD, compared to 8,665 thousand HKD in the previous year[19] - The financing activities showed a net cash outflow of 10,919 thousand HKD, slightly improved from 11,002 thousand HKD in the previous year[19] - Capital expenditures for the period were approximately HKD 12 million, primarily for purchasing machinery and improving factory equipment[85] Strategic Focus and Future Plans - The company plans to focus on new product development and market expansion strategies to improve future performance[4] - The company is strategically evaluating its operational assets and exploring capacity-sharing solutions to balance capacity and cost structure[90] - Continued investment in systems, technology, and talent to expand customer base, increase product variety, and enhance operational efficiency[90] - The company is committed to prudent capital management and strengthening financial flexibility to address potential risks from global economic downturns[90] - The company is focused on expanding its market presence and product types to drive future growth[90] - The group plans to continue shifting more production capacity from China to overseas due to rising domestic operating costs and trade uncertainties[75] Shareholder Information - As of December 31, 2018, major shareholders include High Union Holdings Inc. with 60,626,823 shares (28.19%) and Herman Van de Velde with 55,184,708 shares (25.66%)[92][95] - The company has adopted a new share option plan allowing for the issuance of options up to 10% of the issued shares as of the adoption date, with a maximum of 21,503,762 shares available for issuance[109][111] - The share option plan is set to terminate on November 2, 2021, and options can be exercised within a specified period after the second anniversary of acceptance[111] - The company holds a significant portion of its shares through controlled entities, indicating a concentrated ownership structure[92][95] Governance and Compliance - The audit committee reviewed the group's accounting principles and practices, and the unaudited interim financial report was reviewed by the audit committee and KPMG[116] - The company complied with the corporate governance code except for certain deviations regarding the appointment and re-election of non-executive directors[117] - There were no share buybacks, sales, or redemptions of the company's shares during the six months ended December 31, 2018[112] Employee Information - The group had approximately 8,527 employees as of December 31, 2018, a decrease from approximately 8,684 employees as of June 30, 2018[124] Economic Environment - The macroeconomic environment is expected to remain challenging in the second half of the fiscal year, with signs of economic slowdown and potential recession among major economies[89] - The company is facing foreign exchange risks primarily from Euro, HKD, RMB, USD, and THB, with sales revenue mainly denominated in USD[88]