Financial Performance - Total revenue reached HKD 588.3 million, a year-on-year increase of 27.8% from HKD 460.4 million in the previous year[9]. - The net loss for the year was HKD 26.7 million, compared to a net profit of HKD 255.3 million in the previous year, which included one-time non-operating items[9]. - Gross profit increased by 13.8% to HKD 112,000,000, with a gross margin of 19.0%, a decrease of approximately 2.4 percentage points compared to the previous year[16]. - The company recorded a pre-tax loss of HKD 26,500,000, compared to a pre-tax profit of HKD 254,900,000 in the previous year, which included one-time non-operating gains from asset sales[16]. - Excluding one-time and non-operating items, the operating loss decreased by 46.7% to HKD 29,600,000, reflecting a rebound in revenue and effective cost improvement measures[17]. - The company reported a loss before tax of HKD 29,600,000 for the year, an improvement from a loss of HKD 55,500,000 in the previous year[61]. - The company reported a loss per share of HKD 0.058 in 2022, compared to earnings per share of HKD 0.567 in 2021[65]. Sales and Market Performance - The company experienced sales growth in both the Chinese and broader Asian markets despite ongoing pandemic-related restrictions[9]. - Sales in Asia grew by 9.2% to HKD 300,800,000, with sales in China accounting for 96.9% of Asian sales and 49.5% of total sales[24]. - Retail sales overall increased by 16.0% to HKD 225,400,000, benefiting from a shift to e-commerce amid ongoing pandemic restrictions[25]. - North American sales experienced a significant growth of 57.0%, reaching HKD 269,200,000, compared to HKD 171,500,000 in the previous year[26]. - Overall retail sales in China increased by 16.0% to HKD 225,400,000, despite a decline of 18.1% in physical store sales due to pandemic restrictions[30]. - Online sales grew by 43.8%, with their share of total retail sales rising from 55.1% to 68.3%[32]. Operational Efficiency and Cost Management - Operational expenses were reduced, and strategic measures were implemented to improve sales performance, leading to a healthier financial and operational state[10]. - The company has actively reduced non-priority capital expenditures to optimize working capital and enhance operational leverage[10]. - Distribution expenses increased by 16.3% to HKD 68,900,000, driven by a 43.8% growth in online sales and increased advertising costs[17]. - Administrative expenses decreased by 27.0% to HKD 74,300,000, primarily due to the termination of manufacturing operations in Shenzhen and Dongguan[17]. - Financing costs decreased by 43.9% to approximately HKD 2,900,000, attributed to effective cash flow and working capital management[18]. Corporate Governance - The board of directors held a total of 7 meetings during the fiscal year ending March 31, 2022, with all directors attending the annual general meeting[78]. - The company adopted the new corporate governance code effective from April 1, 2022, ensuring compliance with all relevant principles and provisions[77]. - The board consists of 3 executive directors and 5 independent non-executive directors, ensuring a diverse governance structure[84]. - The company has established committees, including the Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific areas of corporate governance[91]. - The company emphasizes the importance of independent directors and their roles in corporate governance, with all independent directors actively participating in board meetings[93]. Environmental and Social Responsibility - The company is committed to enhancing environmental protection measures and sustainable development practices as part of its operational strategy[11]. - The company is committed to high environmental standards and compliance with relevant laws and regulations during its business development[151]. - The company’s environmental, social, and governance report will be published in July 2022, detailing its policies and benefits[151]. - The company regularly collects feedback from stakeholders to understand their needs and optimize resource utilization for future business and community development[154]. Future Outlook and Strategy - The company aims to leverage digitalization and technology as a new normal in response to the pandemic's impact on business and social models[10]. - The company plans to continue closing unprofitable stores, reducing the number of Betu brand physical stores in China to 173, a net decrease of 4 stores[31]. - Management anticipates ongoing uncertainty and challenges in the short term due to factors such as inflation and geopolitical tensions[33]. - The company aims to leverage its production capabilities in Zhongshan to maintain quality and timely production under challenging conditions[36]. - The management team is actively exploring potential mergers and acquisitions to drive growth and market expansion[171]. Financial Position and Liquidity - As of March 31, 2022, the group's cash level was HKD 293,300,000, down from HKD 393,800,000 a year earlier, with total bank borrowings amounting to HKD 85,600,000[41]. - The group’s inventory turnover period increased to 71 days from 62 days year-on-year, attributed to higher inventory levels in the garment division to support increased order volumes[41]. - The company maintains sufficient levels of cash and cash equivalents to manage liquidity risk and reduce the impact of cash flow fluctuations[145]. - The company is exposed to foreign currency translation risks due to foreign currency transactions and borrowings, and it manages this risk through appropriate measures[147]. Shareholder Information - The company reported a proposed final dividend of HKD 0.5 per share for the year ended March 31, 2022, down from HKD 1.5 per share in the previous year[134]. - The total reserves available for distribution to shareholders as of March 31, 2022, amounted to HKD 72,686,000, a decrease from HKD 94,508,000 in the previous year[135]. - The largest customer accounted for 21% of total sales, while the top five customers represented 54% of total sales[133]. - The largest shareholder, Corona Investments Limited, holds 150,059,268 shares, representing 33.27% of the total issued shares[183].

Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 232,444,000, an increase of 2.5% compared to HKD 226,736,000 for the same period in 2020[7] - Gross profit decreased to HKD 35,623,000, down 4.4% from HKD 37,244,000 year-on-year[7] - The net loss for the period was HKD 32,334,000, compared to a profit of HKD 239,781,000 in the previous year[8] - Basic and diluted loss per share was HKD 7.1, a significant decrease from earnings of HKD 53.2 per share in the prior period[7] - The company reported a total loss of HKD 32,393,000 before tax for the six months ended September 30, 2021, compared to a profit of HKD 239,759,000 for the same period in 2020[34] - The loss attributable to the company's owners for the six months ended September 30, 2021, was HKD 32,022,000, compared to a profit of HKD 240,142,000 for the same period in 2020[40] - The group recorded a pre-tax loss of approximately HKD 32,400,000, compared to a pre-tax profit of HKD 239,800,000 in the same period last year due to a one-time gain from the sale of a subsidiary[56] Assets and Liabilities - Total assets as of September 30, 2021, were HKD 470,961,000, down from HKD 554,207,000 as of March 31, 2021[10] - The company’s equity attributable to owners decreased to HKD 394,264,000 from HKD 431,618,000, reflecting the impact of the net loss[11] - Trade receivables, net of credit loss provisions, amounted to HKD 53,392,000 as of September 30, 2021, down from HKD 62,699,000 as of March 31, 2021[45] - The company maintained a healthy asset-to-liability ratio of 18.8% as of September 30, 2021, with total bank borrowings of HKD 72,000,000[78] Cash Flow - The net cash used in operating activities for the six months ended September 30, 2021, was HKD (27,647,000), compared to HKD (5,154,000) for the same period in 2020, indicating a significant increase in cash outflow[15] - The net cash used in investing activities was HKD (41,001,000) for the six months ended September 30, 2021, compared to HKD (39,579,000) in the previous year, reflecting ongoing investments in property and equipment[15] - The net cash used in financing activities was HKD (108,086,000), a decrease from HKD (120,984,000) in the same period last year, primarily due to repayments of bank loans[15] - Cash and cash equivalents at the end of the period decreased to HKD 178,035,000 from HKD 372,495,000 in the previous year, showing a decline of approximately 52%[15] Revenue Breakdown - Revenue from garment products in the China market was HKD 137,371,000, while revenue from the United States was HKD 46,751,000, and from Canada was HKD 40,189,000[23] - For the six months ended September 30, 2021, total revenue from external goods sales was HKD 232,444,000, with contributions of HKD 139,367,000 from Asia, HKD 86,940,000 from North America, and HKD 6,137,000 from Europe and others[29] - The company reported a total of HKD 129,528,000 in revenue from garment production and sales for the six months ended September 30, 2021, compared to HKD 146,370,000 in the same period of 2020, indicating a decrease of about 11.5%[25] - The company reported a decrease in revenue from North America, which was HKD 96,357,000 for the six months ended September 30, 2020, compared to HKD 86,940,000 in 2021, representing a decline of approximately 9.8%[29] Operational Highlights - The company has not disclosed any new product developments or market expansion strategies in the current report[22] - The company’s operating segments are categorized into Asia, North America, and Europe, focusing on garment manufacturing and sales[26] - The group recorded a stable revenue of HKD 232,400,000, representing a year-on-year increase of 2.5%[55] - The gross profit margin slightly decreased by 1.1 percentage points due to the temporary suspension of operations at the Vietnam production base from mid-July to the end of September 2021[55] - Distribution expenses increased by 41.1% to HKD 33,200,000 compared to HKD 23,500,000 in the same period last year[55] - Administrative expenses decreased by 25.6% to HKD 36,700,000 from HKD 49,300,000 in the previous year[55] - The group incurred capital expenditures of HKD 41,001,000 for the purchase of properties, plants, and equipment during the reporting period[42] Strategic Focus - The group's strategic focus has shifted to online sales and franchise business to enhance competitiveness amid ongoing COVID-19 challenges[66] - The company is focusing on enhancing its "Betu" brand retail network and exploring online sales channels to improve customer satisfaction and sales[74] - The company has resumed operations at its production facility in Vietnam since late September 2021, with expectations for comprehensive development post-pandemic[75] - The production facility in Zhongshan is leveraging local production advantages to supply high-quality garments with shorter turnaround times[74] Shareholder Information - As of September 30, 2021, major shareholder Corona Investments Limited held 150,059,268 shares, representing 33.27% of the issued shares[94] - Wykeham Capital Asia Value Fund held 44,832,000 shares, accounting for 9.93% of the issued shares[94] - The total number of issued shares as of September 30, 2021, was 451,067,557[97] Dividends - The company did not declare an interim dividend for the six months ended September 30, 2021, compared to an interim dividend of HKD 0.022 per share for the same period in 2020[38] - The company declared a final dividend of HKD 0.015 per share for the year ended March 31, 2021, totaling HKD 6,800,000[85] - The board declared a special dividend of HKD 0.0175 per share related to asset sales, payable on December 10, 2020[85] - A second special dividend of HKD 0.2217 per share was declared on November 27, 2020, related to the sale of a subsidiary, payable on December 23, 2020[85] Governance and Compliance - The company’s financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[17] - The audit committee reviewed the group's accounting policies and financial reporting matters during the period[102] - The company adhered to all corporate governance codes as per the listing rules during the period[103]

Revenue and Sales Performance - The group's revenue for the fiscal year decreased by 35.1% to HKD 460.4 million, primarily due to reduced demand from major customers in North America [12]. - Total revenue decreased by 35.1% year-on-year to HKD 460,400,000, primarily due to a significant decline in sales in the North American market [22]. - The overall sales in China for the year were HKD 258.8 million, reflecting a slight decrease of 4.7% compared to the previous year [13]. - Sales in the Chinese market showed a recovery in the second half of the year, with a year-on-year growth of 16.5%, while the first half experienced a contraction of 22.5% [13]. - Sales in Asia amounted to HKD 275,600,000, a moderate decrease of 2.7%, accounting for 59.9% of total revenue [26]. - North American market sales dropped significantly by 58.0% to HKD 171,500,000, accounting for 37.2% of total revenue, primarily due to weakened demand and strict trade credit control [27]. - Sales in the U.S. fell by 65.9% to HKD 86,800,000, while Canadian sales decreased by 44.9% to HKD 84,600,000, reflecting the severe impact of the pandemic on consumer spending [28]. - Retail sales in China increased by 5.2% in the second half of the year, although total retail sales for the year were HKD 194,300,000, down 14.5% year-on-year [32]. Profitability and Financial Performance - The company recorded a profit attributable to shareholders of HKD 256,000,000, compared to a loss of HKD 83,600,000 in the same period last year [22]. - The group reported a profit before tax of HKD 254,900,000, a significant improvement from a loss of HKD 84,100,000 in the previous year [52]. - The net profit for the year was HKD 255,298,000, a substantial increase from the loss of HKD 84,345,000 reported in the prior year [190]. - The gross profit for the same period was HKD 98,489,000, with other income and gains amounting to HKD 43,060,000 [188]. - The company achieved a profit before tax of HKD 254,943,000, compared to a loss of HKD 84,345,000 in the previous year, indicating a significant turnaround [188]. Cost Management and Expenses - Operating costs and expenses decreased by 19.9% year-on-year, with distribution expenses down by HKD 59,300,000 and administrative expenses down by 18.0% to HKD 101,800,000 [22]. - Employee costs decreased to HKD 71,305,000 from HKD 81,846,000, a reduction of HKD 10,541,000 due to store closures and team streamlining [48]. - Distribution and administrative expenses totaled HKD 101,816,000, down from HKD 124,100,000 in the previous year, reflecting a decrease of HKD 22,284,000 [48]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.015 per share, in addition to an interim dividend of HKD 0.022 and a special dividend of HKD 0.2392, totaling HKD 0.2762 per share for the year [14]. - The total distributable reserves available for shareholders as of March 31, 2021, amounted to HKD 94,508,000, a significant increase from HKD 10,022,000 in 2020 [101]. - The company distributed a special dividend of HKD 0.0175 per share, an interim dividend of HKD 0.022 per share, and a second special dividend of HKD 22.17 per share during the fiscal year [100]. Strategic Initiatives and Future Plans - The company plans to relocate its Hong Kong headquarters following the acquisition of a commercial property, which aligns with its development plans [16]. - The company plans to further optimize its retail platform by streamlining loss-making stores and adjusting its physical store portfolio [25]. - The company aims to maintain a flexible retail platform and low-cost structure to sustain competitive advantages in a challenging market [33]. - The company is committed to building a green solar factory in Vietnam, aiming to reduce pollution and greenhouse gas emissions while lowering energy costs in the long term [11]. - The company plans to enhance its retail operations in mainland China, focusing on improving organizational efficiency and supply chain management [41]. Risk Management and Governance - The company emphasizes a cautious financial policy and continuous monitoring of risk conditions to maintain a robust capital structure [11]. - The company has implemented a robust internal control and risk management system to ensure effective governance [81]. - The board is responsible for setting overall corporate strategy and monitoring operational and financial performance [81]. - The company has engaged external consultants to review the effectiveness of its risk management and internal control systems annually [89]. - The company has established guidelines for director appointments, re-elections, and succession planning [84]. Market Conditions and Economic Outlook - The short-term outlook remains highly uncertain and challenging, with intense competition in the fashion and apparel industry [14]. - The global economic outlook remains challenging due to the pandemic, with major economies experiencing contraction, but China is projected to achieve positive GDP growth in 2020 [35]. - The company anticipates that pent-up demand will drive economic recovery as restrictions are lifted and vaccination efforts progress globally [38]. Employee and Operational Adjustments - The group employed approximately 1,300 employees, down from about 1,800 in the previous year, due to operational adjustments related to the pandemic [58]. - The company has a structured approach to director re-election, ensuring continuity and governance compliance [123]. - The company has not faced any legal claims that would necessitate compensation payments beyond statutory requirements [123].

Financial Performance - The company reported a revenue of HKD 226,736,000 for the six months ended September 30, 2020, a decrease of 42.5% compared to HKD 394,830,000 for the same period in 2019[8]. - Gross profit for the same period was HKD 37,244,000, down from HKD 83,931,000, reflecting a significant decline in profitability[8]. - The net profit for the period was HKD 239,781,000, a substantial recovery from a loss of HKD 30,807,000 in the previous year[10]. - The company achieved a basic and diluted earnings per share of 53.2 cents, compared to a loss per share of 6.6 cents in the prior year[8]. - Total comprehensive income for the period amounted to HKD 243,352,000, compared to a loss of HKD 37,574,000 in the same period last year[10]. - The company reported a net loss of HKD 30,493,000 for the period, resulting in total comprehensive expenses of HKD 37,260,000[15]. - The company recorded a profit before tax of HKD 239,800,000, compared to a loss of HKD 26,900,000 in the previous year[60]. - Net profit attributable to the company's owners for the period was HKD 240,100,000, compared to a loss of HKD 30,500,000 in the same period last year[60]. Assets and Liabilities - Current assets increased to HKD 649,096,000 from HKD 414,967,000, indicating improved liquidity[12]. - The company's total assets reached HKD 696,188,000, up from HKD 466,422,000, reflecting growth in asset base[12]. - Non-current liabilities were reported at HKD 12,415,000, compared to HKD 10,864,000 in the previous period, indicating a slight increase in long-term obligations[13]. - The company's equity attributable to owners increased to HKD 409,146,000 from HKD 265,433,000, showing a strong improvement in shareholder value[13]. - Total equity as of September 30, 2020, was HKD 307,795,000, down from HKD 345,683,000 as of April 1, 2019[15]. - Total bank borrowings amounted to HKD 122,200,000 as of September 30, 2020, down from HKD 150,200,000 as of March 31, 2020, with a debt-to-equity ratio of 30.6%[88]. Cash Flow - Cash and cash equivalents increased by HKD 257,269,000, compared to an increase of HKD 11,317,000 in the previous period[18]. - The company had a cash outflow from operating activities of HKD 5,154,000, compared to HKD 20,133,000 in the previous period[18]. - The net cash generated from investing activities was HKD 296,937,000, primarily from the sale of property, plant, and equipment[18]. - The company raised new bank loans amounting to HKD 91,389,000 during the financing activities[18]. - As of September 30, 2020, the group's cash level was HKD 489,200,000, an increase from HKD 230,700,000 as of March 31, 2020, with a net cash increase of HKD 286,400,000 mainly due to proceeds from the Shenzhen sale[88][89]. Sales and Revenue Breakdown - Revenue from customer contracts for the six months ended September 30, 2020, totaled HKD 226,736,000, with significant contributions from China (HKD 114,233,000) and the United States (HKD 58,754,000)[25]. - For the six months ended September 30, 2020, total revenue from external goods sales was HKD 226,736,000, with North America contributing HKD 96,357,000, Asia HKD 123,851,000, and Europe and others HKD 6,528,000[32]. - North American sales decreased by 58.0% to HKD 96.4 million, accounting for approximately 42.5% of total revenue[64]. - U.S. sales dropped significantly by 60.4% to HKD 58.8 million, with a GDP contraction of 31.4% in Q2 2020[64]. - Asian sales decreased by 18.1% to HKD 123.9 million, representing 54.6% of total revenue, with over 92.2% of this from the Chinese market[66]. Dividends and Shareholder Returns - The company declared a special dividend of HKD 0.0175 per share and an interim dividend of HKD 0.022 per share for the six months ended September 30, 2020[40]. - A special dividend of HKD 0.2217 per share was declared following the Shenzhen sale[74]. Operational Changes and Future Plans - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[8]. - The company is focusing on both online and offline sales channels to maximize synergy and maintain competitiveness[70]. - The company plans to invest in a solar system project for its green factory in Vietnam and explore domestic market potential[83]. - The company will adapt its business model to the "new normal" characterized by digitalization and changing consumer preferences[84]. - The board will continuously review the company's balance sheet to maximize benefits for the company and its shareholders[84]. Employee and Governance - The group employed approximately 1,400 employees as of September 30, 2020, down from 1,800 employees as of March 31, 2020, due to reduced orders and sales volumes amid the COVID-19 pandemic[91]. - The audit committee reviewed the group's accounting policies and discussed risk management and internal control measures[103]. - The company adhered to all corporate governance code provisions throughout the reporting period[104].

Financial Performance - The group's revenue for the fiscal year ended March 31, 2020, decreased by 26.6% to approximately HKD 709 million due to the impact of COVID-19 and other market uncertainties[9]. - The net loss attributable to the company's owners for the year was reduced by 11.1% to HKD 83.6 million compared to the previous fiscal year[9]. - Gross profit fell by 21.4% to HKD 141.6 million, with a slight increase in gross margin to 20.0% from 18.7% in 2019[16]. - The pre-tax operating loss narrowed by 8.4% to HKD 84.1 million, with a significant focus on cost control and operational efficiency[16]. - The retail business recorded an operating loss of HKD 12,200,000, an improvement from the operating loss of HKD 24,400,000 in the previous year, as the company implemented strict cost control measures[21]. - Revenue for the year was HKD 708,994,000, down from HKD 965,928,000 in the previous year, indicating a decline of about 26.6%[55]. - The company's cash level decreased to HKD 230,700,000 at the end of the fiscal year, down from HKD 246,300,000 in the previous fiscal year[33]. - The total bank borrowings amounted to HKD 150,200,000, with a debt-to-equity ratio of 58.8%[33]. Operational Adjustments - The company has relocated production targeting U.S. exports to facilities in Vietnam to mitigate the financial impact of additional tariffs on imports from China[9]. - The group completed the consolidation of production capacity in Zhongshan, China, enhancing operational efficiency and preparing for long-term strategic goals[10]. - The group has established a procurement office in Vietnam to enhance its supply chain and reduce reliance on specific sources[16]. - The strategic integration of production facilities in China and Vietnam has improved operational efficiency and reduced production costs[16]. - The group continues to close underperforming stores while increasing the proportion of franchise or joint venture stores to lower operating expenses[16]. - The group is actively managing expenses and cash flow in response to challenges posed by the COVID-19 pandemic and trade tensions[16]. - The company aims to strengthen its production base focused on the U.S. market while expanding in the growing Vietnamese market[16]. Employee and Community Engagement - The group has emphasized employee safety as a top priority during the crisis, implementing short-term response measures[12]. - The company expressed gratitude to shareholders and employees for their support and dedication during critical times[13]. - The Hong Kong government’s Employment Support Scheme provided crucial subsidies to help the company during the pandemic[13]. - The company employed approximately 1,800 staff as of March 31, 2020, down from 2,800 staff the previous year, primarily due to the closure of the Dongguan factory and a reduction in retail stores[60]. - The company conducted comprehensive fire drills and safety training sessions in 2020, including training on infectious disease control and personal protective equipment[124]. - The company emphasizes improving customer satisfaction and compliance with health and safety regulations, ensuring no significant violations were found in 2020 regarding product quality and safety standards[141]. Environmental and Sustainability Initiatives - The company has joined the bluesign® system as a partner to improve environmental performance and sustainability[69]. - The company achieved recognition from Bluesign Technologies AG for its environmental achievements in 2020, indicating a commitment to sustainable practices[71]. - The company has implemented a comprehensive environmental protection policy to regulate energy usage and ensure compliance with local laws regarding emissions[81]. - The company has invested in wastewater treatment facilities to manage water resources effectively and reduce environmental impact, obtaining necessary permits from local environmental authorities[83]. - The company has replaced diesel with natural gas and biofuel boilers in its production facilities, significantly reducing CO2, SO2, and NOx emissions[82]. - The company has implemented various energy-saving measures, including the "Tongde Energy Saving Plan" to minimize electricity consumption in offices and factories[101]. - The company aims to integrate environmental protection and energy-saving concepts into daily operations to reduce carbon emissions and protect the environment[101]. Corporate Governance - The company maintains high corporate governance standards, adhering to the principles outlined in the Hong Kong Stock Exchange's corporate governance code[155]. - The board consists of three executive directors and four independent non-executive directors, ensuring over one-third of the board is independent[162]. - The company has established an audit committee, remuneration committee, and nomination committee to oversee specific areas of corporate affairs[169]. - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with regulations[165]. - The board reviews its composition regularly to ensure it possesses the necessary expertise and experience for the company's business[164]. - The company has a clear policy for the appointment, re-election, and succession planning of directors[180]. Market Challenges and Future Outlook - The company anticipates a challenging business environment due to ongoing trade tensions and the impact of COVID-19, leading to soft customer demand[29]. - Despite the challenges, the company remains cautiously optimistic about the economic outlook in China and Vietnam, focusing on customer-centric market positioning[29]. - The company expects intensified competition in the Chinese market as retailers strive to recover sales lost during COVID-19 store closures[29]. - The company will monitor market trends closely and adopt sustainable business strategies to mitigate risks[29].

Financial Performance - Revenue for the six months ended September 30, 2019, was HKD 394.83 million, a decrease of 20.5% compared to HKD 496.4 million for the same period in 2018[8] - Gross profit for the same period was HKD 83.93 million, with a gross margin of approximately 21.3%[8] - The net loss for the six months ended September 30, 2019, was HKD 30.81 million, an improvement of 45.5% compared to a net loss of HKD 56.46 million in the prior year[9] - The company reported a loss per share of HKD 0.066 for the six months ended September 30, 2019, compared to HKD 0.121 in the same period of 2018[8] - The company reported a net loss of HKD 56,037,000 for the period ending September 30, 2018, compared to a loss of HKD 30,807,000 for the same period in 2019, indicating a worsening financial performance[14] - The company’s total equity as of September 30, 2019, was HKD 390,846,000, a decrease from HKD 467,641,000 as of April 1, 2018, indicating a decline in shareholder equity[14] - The company’s attributable loss for the period was HKD 30,500,000, down 45.6% from HKD 56,000,000 in the previous year[96] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2019, were HKD 138.42 million, an increase from HKD 129.56 million as of March 31, 2019[12] - The net cash used in operating activities was HKD (20,133,000) for the six months ending September 30, 2019, compared to HKD (15,585,000) for the same period in 2018, indicating increased cash outflow[16] - The company generated net cash from investing activities of HKD 5,757,000 for the six months ending September 30, 2019, up from HKD 3,246,000 in the previous year, showing improved investment returns[16] - The net cash from financing activities was HKD 25,693,000 for the six months ending September 30, 2019, compared to HKD 4,942,000 in 2018, indicating a significant increase in financing activities[16] - The cash and cash equivalents at the end of the period increased to HKD 138,424,000 as of September 30, 2019, from HKD 96,752,000 in the previous year, reflecting a strong liquidity position[16] Assets and Liabilities - Total assets as of September 30, 2019, were HKD 556.75 million, compared to HKD 520.69 million as of March 31, 2019[12] - Current liabilities increased to HKD 286.86 million from HKD 264.87 million as of March 31, 2019[12] - Non-current assets decreased to HKD 50.74 million from HKD 99.22 million as of March 31, 2019[11] - The company’s equity attributable to owners decreased to HKD 317.28 million from HKD 354.85 million as of March 31, 2019[12] - Trade receivables amounted to HKD 88,976,000, down from HKD 93,969,000 as of March 31, 2019, indicating a decrease of approximately 5.3%[80] Revenue Breakdown - As of September 30, 2019, total revenue from customer contracts amounted to HKD 394,830,000, with contributions from the US (HKD 148,191,000), China (HKD 147,396,000), and Canada (HKD 81,405,000) [60] - The company reported a total of HKD 275,864,000 in sales from garment products, with a retail segment contributing HKD 118,966,000 [60] - Revenue from external goods sales was reported at HKD 394,830,000, with a loss of HKD 5,154,000 attributed to the segment [66] - North American sales decreased by 8.4% to HKD 229,600,000, accounting for 58.2% of total revenue, with U.S. sales alone contributing 64.5% of this segment[102] - Sales in Asia dropped significantly by 33.3% to HKD 151,200,000, with the Chinese market alone contributing HKD 147,400,000, a decline of 32.3%[104] - The retail business in China reported a revenue of HKD 119,000,000, a decrease of approximately 16.9% year-on-year, primarily due to restructuring and a net reduction of over 60 retail stores[106] Cost Management - The total employee benefits expense decreased to HKD 111,065,000 in 2019 from HKD 136,471,000 in 2018, reflecting a reduction of approximately 18.6%[70] - Distribution expenses were HKD 38,600,000, a reduction of 36.1% or HKD 21,800,000 compared to the previous year[95] - Administrative expenses amounted to HKD 71,000,000, including severance and compensation costs of HKD 14,800,000[95] - The pre-tax loss decreased by 49.7% to HKD 26,900,000, attributed to ongoing business streamlining and cost control measures[95] Lease and Accounting Policies - The company has applied the new Hong Kong Financial Reporting Standards, which may impact the accounting policies and reported amounts in future financial statements[23] - The company recognizes the right-of-use asset as a separate item in the consolidated statement of financial position[33] - Lease liabilities are measured at the present value of unpaid lease payments at the lease commencement date, using the incremental borrowing rate if the implicit rate is not determinable[36] - The company recognized right-of-use assets of HKD 1,765,000 and lease liabilities of HKD 1,745,000 during the reporting period, reflecting new lease agreements for retail stores[79] Shareholder Actions - No interim dividend was declared for the period ended September 30, 2019, consistent with the previous year[73] - The company repurchased a total of 560,000 shares at a total cost of HKD 313,660, which were subsequently cancelled[87] - Major shareholder Corona Investments Limited holds 150,059,268 shares, representing 32.37% of the company[142] Market Conditions and Strategic Initiatives - The company is expanding its manufacturing operations in Vietnam, establishing a new procurement office to enhance supply chain efficiency[100] - The group plans to leverage the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to boost export sales in the medium to long term[114] - Despite economic slowdowns, retail sales growth in China remains strong, driven by rising disposable income among millennials and urbanization trends[118] - The group is focusing on online sales strategies and partnerships with major e-commerce platforms to enhance market visibility and drive sales growth[117]

Financial Performance - The company's annual sales reached approximately HKD 965.9 million, a slight decrease of 3.2% compared to the previous fiscal year[112]. - The company's total revenue for the fiscal year decreased by 3.2% to HKD 965,900,000 due to ongoing trade disputes and a slowdown in global economic conditions[123]. - Sales in North America accounted for 49.0% of total revenue, amounting to HKD 473,500,000, a year-on-year decrease of 9.1%, with U.S. sales specifically declining by 11.8% to HKD 317,600,000[122]. - Gross profit was HKD 180,200,000, resulting in a gross margin of 18.7%, which is a decrease of 3.2 percentage points compared to the previous fiscal year[123]. - The pre-tax operating loss attributed to core business activities increased by 8.4% to HKD 76,300,000, primarily due to ongoing losses in the core manufacturing business amid trade tensions[124]. Strategic Adjustments - The company is actively adjusting its strategies in response to market conditions and policy changes, focusing on four key areas: manufacturing relocation, cost efficiency improvements, business restructuring, and customer-centric operations[113]. - The company has completed the relocation of its manufacturing operations from Shenzhen to Zhongshan and Dongguan, and is expanding production capacity at its multinational manufacturing platform in Vietnam[113]. - The company plans to sell its e-commerce park in Hangzhou and close underperforming retail stores in China to streamline operations[113]. - The company aims to enhance cost efficiency across production quality, turnaround time, and administrative processes[113]. - The company has expanded its production layout beyond China to Vietnam, which has provided a diversified procurement advantage to mitigate risks associated with the ongoing trade war[120]. Customer Commitment - The company is committed to ensuring customer needs are met throughout the logistics and delivery processes[113]. Acknowledgments - The company acknowledges ongoing economic and political uncertainties but remains focused on stability and seizing opportunities[113]. - The company expresses gratitude to shareholders, business partners, and employees for their support and efforts[114].