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].