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]

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].