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聯合公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本聯合公 告 全 部 或 任 何 部 份 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 本聯合公告僅為提供資料之用，於任何司法管轄區均並不構成收購、購買或認購 要約人或本公司證券的邀請或要約，亦非作出任何表決或批准的招攬，而且不應 在與適用法律相抵觸的情況下於任何司法管轄區出售、發行或轉讓任何本公司或 要約人的證券。 若構成違反任何司法權區的相關法律或法規，則本聯合公告所載全部或部分資料 不得於、向或從該司法權區發佈、刊發或分發。 要約人之財務顧問 GOLDLION HOLDINGS LIMITED 金 利 來 集 團 有 限 公 司 （依據香港公司條例在香港註冊成立） （股份代號：00533） 聯合公告 (1)要約人根據公司條例第673條以計劃安排方式將金利來集團有限公司 私有化之建議 (2)建議撤銷金利來集團有限公司股份之上市地位 及 (3)恢復股份買賣 GRAND SUNNY LIMITED 廣朗有限公司 （ ...

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的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示概不對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的任何損失承擔任何責任。 GOLDLION HOLDINGS LIMITED 金 利 來 集 團 有 限 公 司 1 應金利來集團有限公司（「本公司」）之要求，本公司于香港聯合交易所主板交易之股 份已於二零二四年十一月二十一日上午十一時零八分起短暫停牌，以待根據香港收購及 合併守則刊發有關公司內幕消息的公告。 承董事會命 公司秘書 甘耀國 香港，二零二四年十一月二十一日 於此公告日，本公司董事會由執行董事曾智明先生，非執行董事吳明華先生，獨立非 執行董事李家暉先生、羅詠詩女士和陳光明先生組成。 （依據香港公司條例於香港註冊成立） （股份代號：00533） 短暫停牌 ...

GOLDLION HOLDINGS LIMITED 金 利 來 集 團 有 限 公 司 (依據香港公司條例於香港註冊成立) （股份代號： 00533） 審核委員會 李家暉先生 (主席) 羅詠詩女士 銅紫荊星章 太平紳士 陳光明先生 吳明華先生 執行董事 曾智明先生 銅紫荊星章 太平紳士 (主席兼行政總裁) 非執行董事 吳明華先生 獨立非執行董事 李家暉先生 羅詠詩女士 銅紫荊星章 太平紳士 陳光明先生 董事會設立三個委員會，各委員會的成員資料載列如下。 董事名單與其角色和職能 金利來集團有限公司董事會(「董事會」)成員載列如下。 薪酬委員會 羅詠詩女士 銅紫荊星章 太平紳士 (主席) 李家暉先生 陳光明先生 吳明華先生 曾智明先生 銅紫荊星章 太平紳士 提名委員會 陳光明先生 (主席) 李家暉先生 羅詠詩女士 銅紫荊星章 太平紳士 吳明華先生 曾智明先生 銅紫荊星章 太平紳士 香港，二零二四年十一月十九日 ...

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 份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。 GOLDLION HOLDINGS LIMITED 金 利 來 集 團 有 限 公 司 ( 依據香港公司條例於香港註冊成立 ) （ 股份代號：00533） 委任獨立非執行董事及 董事會轄下委員會成員變更 金利來集團有限公司(「本公司」，連同其附屬公司統稱為「本集團」)董事(「董 事」)會(「董事會」) 謹此宣佈陳光明先生(「陳先生」) 獲委任為本公司獨立非執 行董事，以及將擔任提名委員會主席、審核委員會成員及薪酬委員會成員，均自 二零二四年十一月十九日起生效。 陳先生，五十三歲，於一九九四年獲多倫多大學文學士學位。彼現擔任香港中華 總商會(中總)常務會董及中總文化委員會副主席。彼於二零零九年至二零一四年及 二零一五年至二零一七年分別獲委任為香港特別行政區政府中央政策組非全職顧 問及特邀顧問。 香港，二零二四年十一月十九日 陳先生於一九九四年加入駿昇國際控股有限公司，並於一九九六年獲委任為執行 董事。陳先生 ...

Financial Performance - The total revenue for the period was HKD 603,261,000, a decrease of 9% compared to HKD 661,236,000 in the same period last year[2]. - Operating profit for the period was HKD 55,924,000, down approximately 28% from HKD 77,869,000 year-on-year, resulting in an operating margin of 9.3%[6]. - Net profit attributable to shareholders was HKD 58,233,000, a decrease of about 26% from HKD 78,608,000 in the previous year[7]. - Gross profit for the same period was HKD 361,871,000, down from HKD 389,127,000, representing a decline of approximately 7.1%[23]. - The net profit for the period was HKD 58,240,000, compared to HKD 78,608,000 in the previous year, indicating a decrease of about 26%[24]. - The group's operating profit before tax for the six months ended June 30, 2024, was HKD 68,139,000, compared to HKD 90,288,000 for the same period in 2023, reflecting a decline of 24.5%[41]. - The total operating expenses for the six months ended June 30, 2024, amounted to HKD 527,519,000[55]. Sales and Market Performance - Domestic apparel sales in China recorded HKD 420,797,000, a decline of approximately 9% year-on-year, with a 25% drop in sales to agents[8]. - The e-commerce segment's sales remained flat year-on-year, accounting for 30% of domestic apparel sales[9]. - The Singapore market reported sales of HKD 18,535,000, a 5% increase from HKD 17,703,000, but same-store sales decreased by 2%[10]. - The group's sales in the apparel and accessories segment in mainland China and Hong Kong amounted to HKD 461,153,000, a decrease of 4.4% from HKD 481,238,000 in the previous year[41]. Investment and Property Management - The group recorded a fair value loss on investment properties of HKD 19,818,000, down 13% from HKD 22,856,000 in the previous year[4]. - The total value of the investment property portfolio at the end of the period was approximately HKD 2,641,849,000, down from HKD 2,686,658,000 at the end of the previous year, reflecting a fair value loss of HKD 19,818,000[11]. - Rental and property management fee income for the period was HKD 74,299,000 and HKD 20,560,000 respectively, a decrease of about 3% compared to the same period last year, primarily due to an increase in vacant units[11]. - The overall occupancy rate was approximately 81%, down from 83% in the previous year, with rental income from the Guangzhou property down about 4% in RMB terms[11]. - The group recorded a sales revenue of HKD 28,334,000 and a gross profit of HKD 7,255,000 from the Meixian property development project, with 668 units still available for sale[11]. Financial Position and Cash Flow - As of June 30, 2024, the group had cash and bank balances of HKD 1,076,271,000, a decrease of HKD 12,530,000 from the end of the previous year[13]. - The current assets and liabilities were HKD 2,196,920,000 and HKD 396,327,000 respectively, leading to a current ratio of 5.5[13]. - The company reported a significant foreign exchange loss of HKD 15,663 thousand during the period[27]. - The total cash and cash equivalents decreased by HKD 66,121 thousand, resulting in a balance of HKD 275,315 thousand as of June 30, 2024[27]. - The net cash generated from operating activities was HKD 77,377 thousand, after accounting for interest paid of HKD 86,342 thousand and income tax paid of HKD 8,080 thousand[27]. Shareholder and Governance Information - The company is controlled by the Tsang family, holding approximately 68.62% of the issued shares, with Top Grade Holdings Limited owning 62.95%[64]. - Major shareholders include Tsang family management holding 62.95% and FMR LLC holding 5.69% of the issued shares[81]. - The company has complied with the corporate governance code as per the Stock Exchange Listing Rules for the six months ending June 30, 2024[84]. - The audit committee consists of four members, including independent non-executive director Mr. Li Ka Fai as chairman, ensuring oversight of financial reporting and risk management[85]. Future Outlook and Strategic Plans - The group anticipates a challenging operational outlook for the second half of 2024 due to an unstable macroeconomic environment and weak consumer confidence[12]. - The group plans to enhance the quality of its domestic apparel business and strengthen its retail capabilities, with a focus on reducing vacancies in its properties[12]. - The company plans to focus on market expansion and new product development in the upcoming quarters[22].

Financial Performance - Total revenue for the year ended December 31, 2022, was HKD 1,415,709, an increase from HKD 1,372,184 in 2021, representing a growth of 3.1%[18]. - Gross profit decreased to HKD 769,790 in 2022 from HKD 868,327 in 2021, reflecting a decline of 11.3%[18]. - Operating profit for 2022 was HKD 152,708, down from HKD 240,848 in 2021, indicating a decrease of 36.5%[18]. - Net profit attributable to shareholders for the year was HKD 154,462, compared to HKD 221,043 in the previous year, a decline of 30.1%[18]. - Basic and diluted earnings per share decreased to HKD 15.73 from HKD 22.51, a drop of 30.3%[18]. - The total comprehensive income for the year ended December 31, 2022, was HKD 307,625,000, compared to HKD 221,043,000 in the previous year, reflecting a significant increase[21]. - The company reported a net loss of HKD 69,816,000 for the year, compared to a profit of HKD 154,462,000 in the previous year, indicating a shift in financial performance[21]. Assets and Liabilities - Total assets as of December 31, 2022, were HKD 5,490,787, down from HKD 5,790,323 in 2021, a decrease of 5.2%[16]. - Total liabilities decreased to HKD 1,043,404 in 2022 from HKD 1,165,583 in 2021, a reduction of 10.5%[16]. - The company reported a decrease in cash and cash equivalents to HKD 309,805 from HKD 454,342, a decline of 31.7%[18]. - The company’s investment properties decreased to HKD 2,775,582 from HKD 2,994,394, a decline of 7.3%[15]. - The company’s reserves decreased to HKD 3,346,025 from HKD 3,523,382, a reduction of 5.0%[15]. - The total financial liabilities amounted to HKD 237,136,000, with HKD 179,307,000 due within one year[98]. - The total lease liabilities increased to HKD 52,888,000 from HKD 26,450,000 in the previous year[99]. Inventory and Provisions - The group's inventory as of December 31, 2022, was valued at HKD 205 million, with significant estimates involved in the provision for obsolete inventory[8]. - The company’s management has applied specific provisions for obsolete inventory based on historical sales data and current market conditions, indicating a high level of estimation uncertainty[8]. - The audit identified key audit matters, including the valuation of investment properties and the carrying value of inventory, which are critical for assessing financial performance[6]. - The impairment provision for inventories was HKD 33,813,000 in 2022, compared to a reversal of HKD (50,591,000) in 2021, indicating a shift towards increased provisions[182]. Investment Properties - As of December 31, 2022, the group's investment properties were valued at HKD 27.76 billion, representing approximately 51% of the total asset value[9]. - The fair value loss on investment properties for the year ended December 31, 2022, was approximately HKD 57 million[9]. - The valuation methods used for investment properties included the income capitalization approach and direct comparison method, which rely on unobservable input data such as market rent and yield[9]. - The company engaged independent valuation experts to assess the valuation methods and assumptions applied, ensuring their appropriateness and objectivity[9]. - The audit identified significant inherent risks related to the valuation of investment properties due to the reliance on estimates and market data[9]. Cash Flow and Financing - The net cash generated from operating activities for the year was HKD 30,964,000, a decrease of 84.7% from HKD 202,318,000 in the previous year[23]. - Cash and cash equivalents decreased by HKD 106,588,000, ending the year at HKD 309,805,000, down from HKD 454,342,000 at the beginning of the year[23]. - The company has arranged bank financing for several property units and provided guarantees for buyers' repayment obligations[90]. - The net cash position was HKD (1,127,199,000) as of December 31, 2022, compared to HKD (1,326,058,000) in the previous year[101]. Governance and Compliance - The independent auditor's report confirmed that the consolidated financial statements reflect a true and fair view of the group's financial position as of December 31, 2022[3]. - The financial statements have been prepared in accordance with the Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[3]. - The company’s board approved the revised financial statements on September 20, 2024, indicating ongoing governance and oversight[1]. - The independent auditor emphasized the importance of management's judgment in estimating provisions for inventory, which is subject to inherent risks due to market trends and customer preferences[8]. Dividends and Share Buybacks - The company paid dividends totaling HKD 103,122,000 during the year, consistent with the previous year's dividend payments[23]. - The company repurchased and canceled 3,678,000 ordinary shares during the year at a total cost of HKD 4,419,000, with an average repurchase price of HKD 1.192 per share[169]. - The proposed final dividend for the year 2022 is HKD 5.0 per share, totaling HKD 48,922,000[199]. Taxation - The total tax expense for the year ended December 31, 2022, was HKD 19,678,000, a decrease from HKD 40,008,000 in 2021[197]. - The estimated taxable profit before tax for the year ended December 31, 2022, was HKD 174,140,000, down from HKD 261,051,000 in 2021[197]. - The effective tax rate applied was 16.5% for both 2022 and 2021[197]. Employee Costs - Employee costs, including directors' remuneration, decreased to HKD 203,617,000 in 2022 from HKD 224,356,000 in 2021, a decline of 9.2%[183]. - The total remuneration for the highest-paid individuals in 2022 was HKD 9,388,000, down from HKD 15,667,000 in 2021[193]. - The total remuneration for the CEO in 2022 was HKD 9,773,000, compared to HKD 11,031,000 in 2021[193]. - The company did not pay any retirement benefits to directors during the year ended December 31, 2022[189].

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 1,331,456 thousand, a decrease of 5.93% from HKD 1,415,709 thousand in 2022[15]. - Gross profit for the year was HKD 758,515 thousand, down from HKD 769,790 thousand, reflecting a slight decline in profitability[15]. - Operating profit decreased to HKD 101,774 thousand from HKD 152,708 thousand, indicating a significant drop of 33.4% year-over-year[15]. - Net profit attributable to shareholders for the year was HKD 116,164 thousand, compared to HKD 154,462 thousand in the previous year, representing a decline of 24.8%[15]. - Basic and diluted earnings per share decreased to HKD 11.87 from HKD 15.73, reflecting the overall decline in profitability[15]. - The total comprehensive income for the year included a profit of HKD 154,462,000, while the total comprehensive loss amounted to HKD 224,278,000[18]. - The company reported a profit of HKD 98,153,000 for the year, compared to HKD 95,753,000 in the previous year, marking an increase of about 2.5%[183]. Assets and Liabilities - Total assets as of December 31, 2023, were HKD 5,281,756 thousand, down from HKD 5,490,787 thousand in 2022, a decrease of 3.8%[14]. - Total liabilities decreased to HKD 876,992 thousand from HKD 1,043,404 thousand, a reduction of 16%[14]. - The company’s total liabilities decreased to HKD 1,101,358,000 as of December 31, 2023, from HKD 1,101,358,000 at the beginning of the year[18]. - The total assets as of December 31, 2023, were HKD 4,404,764,000, a decrease from HKD 4,447,383,000 at the end of 2022[18]. - The total liabilities measured at amortized cost were HKD 136,729,000 as of December 31, 2023, compared to HKD 156,607,000 in 2022[117]. Inventory and Provisions - The group's inventory as of December 31, 2023, was valued at HKD 202 million, with specific provisions applied for obsolete inventory based on aging analysis[6]. - The company has implemented a provision method for slow-moving inventory, which is critical due to inherent risks associated with estimation[6]. - The independent auditor's report emphasized the importance of management's analysis and assessment of slow-moving and obsolete inventory[6]. - The company reported a decrease in inventory to HKD 201,634 thousand from HKD 204,578 thousand, indicating improved inventory management[14]. - The inventory cost recognized as expenses and included in the cost of sales was HKD 443,245,000 for 2023, compared to HKD 475,055,000 in 2022[113]. Cash Flow and Financial Position - The company’s cash and cash equivalents increased to HKD 357,099 thousand from HKD 309,805 thousand, showing a positive cash flow trend[14]. - The net cash generated from operating activities for the year ended December 31, 2023, was HKD 65,944,000, an increase of 112.5% compared to HKD 30,964,000 in 2022[20]. - The company’s cash flow from operating activities showed a significant increase, reflecting improved liquidity management[127]. - The net cash position decreased to HKD (1,044,540,000) in 2023 from HKD (1,127,199,000) in 2022, reflecting a decline of about 7.3%[51]. - Total cash and cash equivalents increased to HKD 357,099,000 from HKD 309,805,000, marking an increase of about 15%[125]. Investment Properties - As of December 31, 2023, the group's investment properties were valued at HKD 26.87 billion, representing approximately 51% of the total assets[7]. - The fair value loss on investment properties for the year ended December 31, 2023, was approximately HKD 470 million[7]. - The valuation methods used for investment properties included the income capitalization approach and direct comparison method, relying on unobservable inputs such as market rent and yield[7]. - The company engaged independent valuation experts to assess the valuation methods and assumptions applied, ensuring their appropriateness and objectivity[7]. - The total value of investment properties decreased from HKD 2,775,582,000 in 2022 to HKD 2,686,658,000 in 2023, representing a decline of approximately 3.2%[93]. Financial Risks - The company faces various financial risks, including market risk, credit risk, and liquidity risk, with a focus on minimizing adverse impacts on financial performance[29]. - Credit risk is managed on both a collective and individual basis, arising from cash equivalents, restricted cash, and receivables[34]. - The expected credit loss rates for accounts receivable are set at 2% for 1-90 days, 5% for 91-180 days, and 17% for over 181 days, compared to the previous year's rates of 5%, 12%, and 32% respectively[41]. - The group anticipates no significant credit risk from retail customers, as sales are primarily conducted in cash or through major credit cards and payment platforms[35]. - A 3% depreciation/appreciation of the HKD against the RMB would result in a change in annual profit after tax by HKD 486,000 for the year ending December 31, 2023[30]. Dividends and Shareholder Returns - The proposed final dividend for 2023 is HKD 38,954, compared to HKD 48,922 for the previous year[130]. - Total dividends paid in 2023 amounted to HKD 73,199,000, a decrease from HKD 83,296,000 in 2022[166]. - The company has proposed a final dividend of HKD 38,954,000 for the year, reflecting a commitment to returning value to shareholders[183]. - The company paid dividends totaling HKD 83,167,000 in 2023, down from HKD 103,122,000 in 2022[20]. Accounting and Compliance - The audit report confirmed that the consolidated financial statements accurately reflect the group's financial position and performance for the year ended December 31, 2023, in accordance with Hong Kong Financial Reporting Standards[3]. - The company is committed to adhering to the Hong Kong Companies Ordinance in the preparation of its financial statements[3]. - The independent auditor confirmed their independence and compliance with professional ethical requirements throughout the audit process[4]. - The company has revised its financial statements due to accounting treatment discrepancies related to share buyback transactions, necessitating a reissue of the consolidated financial statements[5]. - The company maintains a consistent accounting policy across all reporting periods, ensuring transparency and reliability in financial reporting[185]. Employee Costs and Remuneration - Employee costs increased to HKD 224,016,000 in 2023 from HKD 203,617,000 in 2022, driven by higher wages and retirement benefits[145]. - The total remuneration for the five highest-paid individuals in 2023 was HKD 11,733,000, an increase from HKD 9,388,000 in 2022, which is a 25% rise[156]. - The total remuneration for the directors and CEO amounted to HKD 9,688,000 in 2023, compared to HKD 9,773,000 in 2022, showing a slight decrease of 0.9%[151]. - The defined contribution plan contributions for Hong Kong employees increased to HKD 814,000 in 2023 from HKD 532,000 in 2022, representing a 53% increase[149]. Future Outlook - Future outlook includes potential new product launches and market expansion strategies to recover from the revenue decline[71]. - The company plans to continue expanding its retail and e-commerce platforms to enhance merchandise sales[73].

Interim Results Announcement This report presents the Goldlion Group's interim financial performance and operational review for the six months ended June 30, 2024 [Condensed Consolidated Interim Financial Statements](index=1&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents Goldlion Group's unaudited condensed consolidated interim financial statements, reflecting the Group's financial performance and position for the period [Condensed Consolidated Interim Income Statement](index=1&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E6%94%B6%E7%9B%8A%E8%A1%A8) Condensed Consolidated Interim Income Statement (HKD thousands) | Metric | For the six months ended June 30, 2024 (HKD thousands) | For the six months ended June 30, 2023 (HKD thousands) | Change (%) | | :------------- | :--------------------------------- | :--------------------------------- | :------- | | Turnover | 603,261 | 661,236 | -8.8% | | Cost of sales | (241,390) | (272,109) | -11.3% | | Gross profit | 361,871 | 389,127 | -7.0% | | Other losses | (19,818) | (22,856) | -13.2% | | Distribution and marketing costs | (207,764) | (207,278) | 0.2% | | Administrative expenses | (78,365) | (81,124) | -3.4% | | Operating profit | 55,924 | 77,869 | -28.2% | | Profit before tax | 68,139 | 90,288 | -24.5% | | Income tax expense | (9,899) | (11,680) | -15.3% | | Profit for the period | 58,240 | 78,608 | -26.0% | | Attributable to owners of the Company | 58,233 | 78,608 | -26.0% | | Earnings per share (HK cents) | 5.98 | 8.03 | -25.6% | [Condensed Consolidated Interim Statement of Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Condensed Consolidated Interim Statement of Comprehensive Income (HKD thousands) | Metric | For the six months ended June 30, 2024 (HKD thousands) | For the six months ended June 30, 2023 (HKD thousands) | | :------------------- | :--------------------------------- | :--------------------------------- | | Profit for the period | 58,240 | 78,608 | | Other comprehensive income | | | | - Revaluation of properties | 7,541 | 875 | | - Related income tax | (105) | (219) | | - Exchange differences | (74,436) | (72,717) | | Other comprehensive income for the period | (67,000) | (72,061) | | Total comprehensive income for the period | (8,760) | 6,547 | | Attributable to owners of the Company | (8,767) | 6,547 | [Condensed Consolidated Interim Balance Sheet](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B3%87%E7%94%A2%E8%B2%A0%E5%80%B5%E8%A1%A8) Condensed Consolidated Interim Balance Sheet (HKD thousands) | Metric | As at June 30, 2024 (HKD thousands) | As at December 31, 2023 (HKD thousands) | Change (%) | | :--------------- | :------------------------- | :-------------------------- | :------- | | Non-current assets | 2,964,255 | 3,015,860 | -1.7% | | Current assets | 2,196,920 | 2,265,896 | -3.0% | | Total assets | 5,161,175 | 5,281,756 | -2.3% | | Equity and reserves | 4,357,043 | 4,404,764 | -1.1% | | Non-controlling interests | 2,147 | - | N/A | | Total equity | 4,359,190 | 4,404,764 | -1.0% | | Non-current liabilities | 405,658 | 429,149 | -5.5% | | Current liabilities | 396,327 | 447,843 | -11.5% | | Total liabilities | 801,985 | 876,992 | -8.6% | | Total equity and liabilities | 5,161,175 | 5,281,756 | -2.3% | [Notes to the Financial Statements](index=4&type=section&id=%E9%99%84%E8%A8%BB) This section details the principal accounting policies underlying the Group's condensed consolidated interim financial information and provides comprehensive notes for understanding the financial statements [Principal Accounting Policies](index=4&type=section&id=1.%20%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) - The condensed consolidated interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and Appendix 16 of the Listing Rules, consistent with the accounting policies adopted for the annual financial statements for the year ended December 31, 2023[4](index=4&type=chunk) - Amendments to standards and new interpretations effective in 2024 but irrelevant to the Group, as well as new standards and amendments to standards issued but not yet effective, are not expected to have a significant impact on the Group's condensed consolidated financial statements[4](index=4&type=chunk)[5](index=5&type=chunk) [Turnover and Segment Information](index=6&type=section&id=2.%20%E7%87%9F%E6%A5%AD%E9%A1%8D%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) - The Group primarily engages in the distribution and manufacturing of apparel, leather goods, and accessories, trademark licensing, and property investment and development businesses[6](index=6&type=chunk) Revenue by Type (HKD thousands) | Revenue Type | For the six months ended June 30, 2024 (HKD thousands) | For the six months ended June 30, 2023 (HKD thousands) | Change (%) | | :------------------- | :--------------------------------- | :--------------------------------- | :------- | | Sales of goods | 439,332 | 481,238 | -8.7% | | Sales of properties | 28,334 | 43,046 | -34.1% | | Property management fees | 20,560 | 20,737 | -0.9% | | Income from grant of operating rights | 40,356 | 38,891 | 3.8% | | Sales of electricity | 380 | - | N/A | | Rental income from investment properties | 74,299 | 77,324 | -3.9% | | **Total Turnover** | **603,261** | **661,236** | **-8.8%** | Segment Turnover (HKD thousands) | Operating Segment | Segment Turnover for the six months ended June 30, 2024 (HKD thousands) | Segment Turnover for the six months ended June 30, 2023 (HKD thousands) | Change (%) | | :------------------- | :--------------------------------------------- | :--------------------------------------------- | :------- | | Apparel and accessories in Mainland China and Hong Kong SAR | 461,487 | 502,618 | -8.2% | | Apparel and accessories in Singapore | 18,535 | 17,703 | 4.7% | | Property investment and development | 129,043 | 146,408 | -11.9% | | Others and inter-segment sales | (5,804) | (5,493) | 5.7% | | **Total Turnover** | **603,261** | **661,236** | **-8.8%** | [Other Losses](index=8&type=section&id=3.%20%E5%85%B6%E4%BB%96%E虧%E6%90%8D) Other Losses (HKD thousands) | Metric | For the six months ended June 30, 2024 (HKD thousands) | For the six months ended June 30, 2023 (HKD thousands) | Change (%) | | :------------------- | :--------------------------------- | :--------------------------------- | :------- | | Fair value loss on investment properties | 19,818 | 22,856 | -13.2% | [Expenses by Nature](index=8&type=section&id=4.%20%E6%8C%89%E6%80%A7%E8%B3%87%E5%91%88%E5%A0%B1%E7%9A%84%E9%96%8B%E6%94%AF) Expenses by Nature (HKD thousands) | Expense Type | For the six months ended June 30, 2024 (HKD thousands) | For the six months ended June 30, 2023 (HKD thousands) | Change (%) | | :--------------------------- | :--------------------------------- | :--------------------------------- | :------- | | Cost of inventories sold | 189,561 | 218,044 | -13.0% | | Cost of properties sold | 21,079 | 31,030 | -32.1% | | Impairment provision for inventories | 12,350 | 4,441 | 178.1% | | Direct operating expenses for investment properties generating rental income | 17,596 | 18,209 | -3.4% | | Expenses relating to short-term leases and variable lease payments | 42,036 | 42,818 | -1.8% | | Depreciation of property, plant and equipment | 14,646 | 12,836 | 14.1% | | Depreciation of right-of-use assets | 10,528 | 8,699 | 21.0% | | Impairment of right-of-use assets | 2,245 | 127 | 1667.7% | | Impairment of property, plant and equipment | 227 | - | N/A | | Reversal of impairment loss on trade receivables, net | (10) | (737) | -98.6% | | Staff costs including directors' emoluments | 111,862 | 111,546 | 0.3% | | Advertising and promotion expenses | 38,424 | 46,514 | -17.4% | | Other expenses | 66,975 | 66,984 | -0.01% | | **Total** | **527,519** | **560,511** | **-5.9%** | [Income Tax Expense](index=9&type=section&id=5.%20%E6%89%80%E5%BE%97%E7%A8%85%E6%94%AF%E5%87%BA) - No Hong Kong profits tax provision was made for the period as the Group's estimated assessable profits were offset by tax losses brought forward from prior years[9](index=9&type=chunk) - China profits tax is calculated at **25%**, with subsidiaries qualifying for small and micro-profit enterprise policies taxed at a preferential rate of **5%**[9](index=9&type=chunk) Income Tax Expense (HKD thousands) | Metric | For the six months ended June 30, 2024 (HKD thousands) | For the six months ended June 30, 2023 (HKD thousands) | Change (%) | | :--------------- | :--------------------------------- | :--------------------------------- | :------- | | Current tax - China corporate income tax | 10,882 | 12,257 | -11.2% | | Deferred income tax | (983) | (577) | 70.4% | | **Total Income Tax Expense** | **9,899** | **11,680** | **-15.3%** | [Earnings Per Share](index=9&type=section&id=6.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) - Basic earnings per share were **5.98 HK cents**, a **25.5% decrease** from **8.03 HK cents** in the prior period[10](index=10&type=chunk) - No potentially dilutive ordinary shares were issued during the period, thus diluted earnings per share are the same as basic earnings per share[10](index=10&type=chunk) [Dividends](index=9&type=section&id=7.%20%E8%82%A1%E6%81%AF) Dividends (HKD thousands) | Metric | For the six months ended June 30, 2024 (HKD thousands) | For the six months ended June 30, 2023 (HKD thousands) | Change (%) | | :--------------- | :--------------------------------- | :--------------------------------- | :------- | | Interim dividend per ordinary share | 2.0 HK cents | 3.5 HK cents | -42.9% | | Total dividend payout | 19,477 | 34,245 | -43.1% | [Trade Receivables](index=10&type=section&id=8.%20%E6%A5%AD%E5%8B%99%E6%87%89%E6%94%B6%E8%B3%87%E9%A0%85) - Net trade receivables were **HKD 61,328 thousands**, a **38.5% decrease** from **HKD 99,729 thousands** at the end of 2023[12](index=12&type=chunk) Trade Receivables Ageing (HKD thousands) | Ageing | As at June 30, 2024 (HKD thousands) | As at December 31, 2023 (HKD thousands) | Change (%) | | :------------- | :------------------------- | :-------------------------- | :------- | | 1 to 30 days | 42,719 | 83,504 | -48.8% | | 31 to 90 days | 12,285 | 12,850 | -4.4% | | Over 90 days | 7,387 | 4,454 | 65.8% | | Total trade receivables | 62,391 | 100,808 | -38.1% | | Less: Impairment provision | (1,063) | (1,079) | -1.5% | | **Net Trade Receivables** | **61,328** | **99,729** | **-38.5%** | [Trade Payables](index=10&type=section&id=9.%20%E6%A5%AD%E5%8B%99%E6%87%89%E4%BB%98%E8%B3%87%E9%A0%85) - Total trade payables were **HKD 21,553 thousands**, a **37.7% decrease** from **HKD 34,605 thousands** at the end of 2023[13](index=13&type=chunk) Trade Payables Ageing (HKD thousands) | Ageing | As at June 30, 2024 (HKD thousands) | As at December 31, 2023 (HKD thousands) | Change (%) | | :------------- | :------------------------- | :-------------------------- | :------- | | 1 to 30 days | 15,920 | 29,351 | -45.8% | | 31 to 90 days | 4,258 | 3,654 | 16.5% | | Over 90 days | 1,375 | 1,600 | -14.1% | | **Total Trade Payables** | **21,553** | **34,605** | **-37.7%** | [Management Discussion and Analysis](index=11&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%AB%96%E8%BF%B0%E5%8F%8A%E5%88%86%E6%9E%90) This section provides a detailed analysis of the Group's operating results, business segment performance, market challenges, and future outlook for the review period [Operating Results](index=11&type=section&id=%E7%B6%93%E7%87%9F%E6%A5%AD%E7%B8%BE) [Turnover](index=11&type=section&id=%E7%87%9F%E6%A5%AD%E9%A1%8D) - Total turnover for the review period was **HKD 603,261 thousands**, a **9% year-on-year decrease**, primarily due to declining apparel and accessories sales in Mainland China[15](index=15&type=chunk) [Cost of Sales and Gross Profit](index=11&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC%E5%8F%8A%E6%AF%9B%E5%88%A9) - Total cost of sales was **HKD 241,390 thousands**, an **11.3% year-on-year decrease**, with apparel and accessories cost of sales falling by **13%**[16](index=16&type=chunk) - Gross profit margin, excluding inventory impairment, was **56.9%**, higher than **54.7%** in the prior period, mainly due to an increased proportion of self-operated retail sales[16](index=16&type=chunk) - Inventory impairment provision increased to **HKD 12,350 thousands**, up from **HKD 4,441 thousands** in the prior period[16](index=16&type=chunk) - Cost of properties sold decreased by **32%** year-on-year, with a gross profit margin of **25.6%**, slightly lower than the prior year[16](index=16&type=chunk) [Other Losses](index=11&type=section&id=%E5%85%B6%E4%BB%96%E虧%E6%90%8D) - Fair value loss on investment properties was **HKD 19,818 thousands**, a **13% year-on-year decrease**[17](index=17&type=chunk) [Operating Expenses](index=11&type=section&id=%E7%B6%93%E7%87%9F%E8%B2%BB%E7%94%A8) - Distribution and marketing costs were **HKD 207,764 thousands**, comparable to the prior period[18](index=18&type=chunk) - Administrative expenses were **HKD 78,365 thousands**, a **3% year-on-year decrease**[18](index=18&type=chunk) [Operating Profit](index=12&type=section&id=%E7%B6%93%E7%87%9F%E6%BA%A2%E5%88%A9) - Operating profit was **HKD 55,924 thousands**, a **28% year-on-year decrease**, with an operating profit margin of **9.3%**, lower than **11.8%** in the prior period[19](index=19&type=chunk) [Profit Attributable to Owners of the Company](index=12&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%BA%A2%E5%88%A9) - Net interest income was **HKD 12,215 thousands**, comparable to the prior period[20](index=20&type=chunk) - Income tax expense was **HKD 9,899 thousands**, a year-on-year decrease, with an effective tax rate of **16.5%**, lower than **17.9%** in the prior period[20](index=20&type=chunk) - Profit attributable to owners of the Company was **HKD 58,233 thousands**, a **26% year-on-year decrease**[20](index=20&type=chunk) - Excluding the after-tax net fair value loss on investment properties, profit for the period was **HKD 73,478 thousands**, a **21% year-on-year decrease**[20](index=20&type=chunk) [Business Review](index=12&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) [Apparel and Accessories Business](index=12&type=section&id=%E6%9C%8D%E8%A3%9D%E6%9C%8D%E9%A3%BE%E6%A5%AD%E5%8B%99) [Mainland China and Hong Kong SAR Markets](index=12&type=section&id=%E4%B8%AD%E5%9C%8B%E5%A4%A7%E9%99%B8%E5%8F%8A%E9%A6%99%E6%B8%AF%E7%89%B9%E5%8D%80%E5%B8%82%E5%A0%B4) - Weak domestic economy and declining consumption led to an approximate **9% year-on-year decrease** in overall apparel turnover in Mainland China (**8% decrease in RMB terms**)[20](index=20&type=chunk) - Wholesale business sales (in RMB) decreased by approximately **25%**, accounting for about **29%** of domestic apparel sales[20](index=20&type=chunk) - Self-operated retail sales (in RMB) decreased by approximately **3%** year-on-year, accounting for about **19%** of domestic apparel sales[20](index=20&type=chunk) - Outlet store sales (in RMB) increased by approximately **3%** (due to new store openings), while comparable store sales decreased by approximately **5%**[21](index=21&type=chunk) - As of period-end, there were approximately **810** domestic apparel product retail points, with **132** directly operated by the Group (including **37** outlet stores and **3** "Goldlion 3388" cultural lifestyle stores)[21](index=21&type=chunk) - The "Goldlion 3388" cultural lifestyle stores recorded an operating loss of approximately **HKD 8,931 thousands**[21](index=21&type=chunk) - E-commerce business sales (in RMB) remained flat year-on-year, accounting for about **30%** of domestic apparel sales[21](index=21&type=chunk) - Group customization business sales (in RMB) increased by approximately **80%** year-on-year[21](index=21&type=chunk) - Income from operating rights was **HKD 40,356 thousands**, an approximate **4% year-on-year increase**[21](index=21&type=chunk) [Singapore Market](index=13&type=section&id=%E6%96%B0%E5%8A%A0%E5%9D%A1%E5%B8%82%E5%A0%B4) - Apparel business sales were **HKD 18,535 thousands**, a **5% year-on-year increase**, but comparable store sales, excluding new store openings, decreased by **2%**[22](index=22&type=chunk) - Operates **5** Goldlion brand boutiques and **6** counters[22](index=22&type=chunk) - Gross profit margin was **54%**, slightly lower than **55%** in the prior period, due to higher discounts needed to stimulate sales[22](index=22&type=chunk) - Inventory impairment provision was **HKD 236 thousands**, lower than **HKD 1,218 thousands** in the prior year[22](index=22&type=chunk) - Recorded a loss of **HKD 2,337 thousands**, higher than the prior year's loss of **HKD 1,482 thousands**, mainly impacted by new store lease and renovation impairment provisions[22](index=22&type=chunk) [Property Investment and Development](index=13&type=section&id=%E7%89%A9%E6%A5%AD%E6%8A%95%E8%B3%87%E5%8F%8A%E7%99%BC%E5%B1%95) - The investment property portfolio's period-end value was approximately **HKD 2,641,849 thousands**, lower than **HKD 2,686,658 thousands** at the end of last year, primarily due to valuation declines and a weaker RMB exchange rate[23](index=23&type=chunk)[24](index=24&type=chunk) - Fair value loss on investment properties was **HKD 19,818 thousands**, a year-on-year decrease, mainly from Mainland China properties (especially Guangzhou "Goldlion Digital Network Tower") and Hong Kong properties[24](index=24&type=chunk) - Total rental and property management fee income decreased by approximately **3%** year-on-year, mainly due to an increase in vacant units[24](index=24&type=chunk) - Guangzhou "Goldlion Digital Network Tower" occupancy rate was approximately **81%**, lower than **83%** last year, with rental and property management fee income (in RMB) decreasing by approximately **4%**[24](index=24&type=chunk) - Rental and property management fee income (in RMB) for Guangzhou Yuancun property increased by approximately **3%**, and Shenyang "Goldlion Commercial Building" increased by **8%**[24](index=24&type=chunk) - Shatin "Goldlion Group Centre" rental and property management fee income decreased by approximately **9%** year-on-year, with an occupancy rate of approximately **89%**; To Kwa Wan Sunbeam Street No. 3 property income increased by approximately **4%**[24](index=24&type=chunk) - Sales of Meixian "Goldlion Garden" project were sluggish, with only **HKD 28,334 thousands** in property sales revenue and **HKD 7,255 thousands** in gross profit recognized, leaving approximately **668** units for sale[24](index=24&type=chunk) - The new energy company (photovoltaic business) completed approximately **HKD 9,071 thousands** in project investments in the first half, recording **HKD 380 thousands** in electricity sales revenue and a slight profit[24](index=24&type=chunk) [Outlook](index=14&type=section&id=%E5%B1%95%E6%9C%9B) - The domestic macroeconomic environment is expected to remain unstable, with weak consumer confidence and market momentum, indicating a very challenging operating outlook for the second half of 2024[25](index=25&type=chunk) - The Group will continue to enhance product quality, self-operated retail capabilities, and optimize sales channels for its domestic apparel business, while promoting brand concepts (e.g., building the Meizhou Brand Memorial Hall)[25](index=25&type=chunk) - The Singapore apparel business will strengthen its sales network to ensure continuous development[25](index=25&type=chunk) - The property investment business will improve leasing conditions for "Goldlion Digital Network Tower" and other properties, reduce vacancies, and market the remaining units of Meixian "Goldlion Garden" according to market conditions[26](index=26&type=chunk) [Financial Position](index=15&type=section&id=%E8%B2%A1%E6%94%BF%E7%8B%80%E6%B3%81) - The Group's cash and bank balances were approximately **HKD 1,076,271 thousands**, a decrease of **HKD 12,530 thousands** from the end of last year[27](index=27&type=chunk) - Net cash inflow from operating activities was **HKD 77,377 thousands** during the period, but cash decreased due to dividend payments, additions to fixed assets, lease payments, and exchange rate fluctuations[27](index=27&type=chunk) - The Group has no bank loans or overdrafts, resulting in a **zero debt-to-asset ratio**[27](index=27&type=chunk) - Current assets were **HKD 2,196,920 thousands**, current liabilities were **HKD 396,327 thousands**, and the current ratio was **5.5**[27](index=27&type=chunk) - There are no significant contingent liabilities; the Meixian "Goldlion Garden" project has authorized but uncontracted and contracted but unprovided property development expenditures[27](index=27&type=chunk) - Mortgage loan guarantees of **HKD 14,652 thousands** were provided for some property buyers, with the Board believing the net realizable value of the related properties is sufficient for repayment[27](index=27&type=chunk) - Foreign exchange risk does not constitute a significant risk, but exchange rate fluctuations will continue to be monitored[27](index=27&type=chunk) [Human Resources](index=15&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) - As of June 30, 2024, the Group employed approximately **1,740** staff members[28](index=28&type=chunk) - Staff costs (including directors' emoluments) amounted to **HKD 111,862 thousands**[28](index=28&type=chunk) - The Group ensures competitive remuneration packages for employees and provides other benefits and training[28](index=28&type=chunk) [Other Information](index=16&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section provides supplementary information on share transfer registration suspension, share dealings, corporate governance practices, audit committee, financial information review, and information dissemination [Suspension of Share Transfer Registration](index=16&type=section&id=%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98) - To ascertain the right to receive the proposed dividend, the Company will suspend share transfer registration on September 5 and September 6, 2024[29](index=29&type=chunk) - To be eligible for the interim dividend, all transfer documents must be lodged with the share registrar by 4:30 p.m. on September 4, 2024[29](index=29&type=chunk) [Purchase, Sale or Redemption of Shares](index=16&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E8%82%A1%E4%BB%BD) - Neither the Company nor any of its subsidiaries redeemed, purchased, or sold any of the Company's shares during the period[30](index=30&type=chunk) [Corporate Governance](index=16&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) - The Company complied with the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited throughout the review period[31](index=31&type=chunk) - Mr. Tsang Chi Ming serves concurrently as Chairman and Chief Executive Officer, an arrangement the Board believes provides more effective strategic planning and decision-making efficiency[31](index=31&type=chunk) - All Directors complied with the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules when dealing in the Company's securities[31](index=31&type=chunk) [Audit Committee](index=16&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) - The Audit Committee is responsible for reviewing and monitoring the Group's financial reporting process, risk management, and internal control systems[32](index=32&type=chunk) - The Committee comprises four members: Independent Non-executive Directors Mr. Li Ka Fai (Chairman), Dr. Liu Yu Hsin, and Ms. Law Wing Sze, and Non-executive Director Mr. Ng Ming Wah[32](index=32&type=chunk) [Review of Financial Information](index=16&type=section&id=%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E5%AF%A9%E9%96%B1) - The Audit Committee has reviewed the Group's unaudited interim financial information for the six months ended June 30, 2024[33](index=33&type=chunk) - External auditor PricewaterhouseCoopers has reviewed this interim financial information in accordance with Hong Kong Standard on Review Engagements 2410[33](index=33&type=chunk) [Information on Company and HKEX Websites](index=17&type=section&id=%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%AF%E4%BA%A4%E6%89%80%E7%B6%B2%E7%AB%99%E7%99%BB%E8%BC%89%E8%B3%87%E6%96%99) - This interim results announcement has been published on the Company's website (www.goldlion.com) and the HKEX website (www.hkexnews.hk)[35](index=35&type=chunk) - The 2024 interim report will be dispatched to shareholders and published on the aforementioned websites in due course[35](index=35&type=chunk) [Board of Directors](index=17&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) - The Board of Directors comprises Executive Director Mr. Tsang Chi Ming, Non-executive Director Mr. Ng Ming Wah, and Independent Non-executive Directors Dr. Liu Yu Hsin, Mr. Li Ka Fai, and Ms. Law Wing Sze[36](index=36&type=chunk)

Financial Performance - For the fiscal year 2023, Goldlion Holdings Limited reported a revenue of HKD 1,331,456,000, a decrease of 6.0% compared to HKD 1,415,709,000 in 2022[9] - The gross profit for the year was HKD 758,515,000, down 1.5% from HKD 769,790,000 in the previous year, resulting in a gross margin of 57.0%, an increase of 2.6 percentage points[9] - Operating profit decreased by 33.4% to HKD 101,774,000 from HKD 152,708,000, leading to an operating margin of 7.6%, down 3.2 percentage points[9] - Net profit for the year was HKD 116,164,000, a decline of 24.8% from HKD 154,462,000, with a net profit margin of 8.7%, down 2.2 percentage points[9] - Basic and diluted earnings per share fell by 24.5% to HKD 11.87 from HKD 15.73[9] Cash and Liquidity - The company maintained a cash and bank balance of approximately HKD 1,088,801,000, a decrease of 7.5% from HKD 1,176,876,000 at the end of the previous year[10] - The current ratio improved to 5.1 from 4.1, indicating a strong liquidity position[10] - The company has no bank loans or overdrafts, maintaining a zero debt ratio, which reflects a strong financial position[10] Share Repurchase and Capital Structure - The company repurchased 4,592,000 shares at an average price of HKD 1.054 per share, which were subsequently cancelled, reducing the total issued shares to 973,844,035[12] Asset and Liability Management - Total assets decreased by 3.8% to HKD 5,281,756,000 from HKD 5,490,787,000, while total liabilities fell by 15.9% to HKD 876,992,000[9] Revenue Breakdown - The total revenue for the year was HKD 1,331,456,000, a decrease of 6% compared to last year's HKD 1,415,709,000, with property sales and licensing revenue down by 33% and 17% respectively[23] - Domestic clothing sales amounted to HKD 916,390,000, a decrease of about 2%, but increased by approximately 3% when calculated in RMB due to a 4% depreciation of the RMB[35] - The wholesale sales to agents decreased by about 14%, accounting for approximately 34% of domestic clothing sales, while self-operated retail sales increased by about 39%, representing about 18% of domestic clothing sales[36] Dividend and Shareholder Returns - The board proposed a final dividend of HKD 0.04 per share, totaling approximately HKD 38,954,000, down from HKD 48,922,000 last year[34] Property and Investment Performance - The group recorded a fair value loss on investment properties of HKD 47,066,000, down 18% from last year's HKD 57,110,000[28] - The total value of the investment property portfolio at year-end was approximately HKD 2,686,658,000, down from HKD 2,775,582,000 at the end of last year[43] - Rental and property management fee income for the year was HKD 151,489,000 and HKD 42,150,000, respectively, a decrease of about 1% compared to last year[43] ESG and Corporate Governance - The company emphasizes its commitment to environmental, social, and governance (ESG) performance across its operations in China, Hong Kong, and Singapore[72] - The company has established a comprehensive governance framework to drive strategic development and sustainable business growth, emphasizing the importance of environmental, social, and governance (ESG) performance for long-term success[79] - A four-year development roadmap has been created to enhance climate adaptation capabilities, identifying areas for improvement based on gap analysis results[80] - The company has implemented internal policies to foster an ethical work culture and promote effective management, adhering to laws against bribery, extortion, fraud, and money laundering[82] Employee Engagement and Training - The company contributed HKD 42,815,000 to employee retirement funds during the reporting period[113] - The employee turnover rate for 2023 was 21%, up from 19% in 2022[121] - The percentage of trained employees increased to 79% in 2023 from 70% in 2022[130] - The average training hours per employee rose significantly to 55.5 hours in 2023 from 19.2 hours in 2022[130] Environmental Impact and Sustainability - The company aims to reduce greenhouse gas emissions by 28% per million HKD of revenue by 2030, compared to the 2020 baseline[150] - The company targets a 16.7% reduction in energy consumption per million HKD of revenue by 2030, compared to the 2020 baseline[149] - The company has achieved ISO 14001 environmental management system certification at its production base in Meizhou[148] - The company encourages employees to minimize business travel and promotes alternatives such as video conferencing to reduce air pollution[159] Community Engagement and Contributions - The company donated RMB 1,010,000 and HKD 108,000 to support various community projects during the reporting period[169] - The company contributed RMB 1,000,000 to the China Football Development Foundation for the 2023 "Xianzi Cup" National Youth Football Invitation Tournament[170] - The company donated over 20,000 clothing items, including down jackets and jeans, to support impoverished citizens in Tibet[172]

Revenue and Profit Performance - Revenue for 2023 was 1,331,456,000 HKD, a decrease from 1,415,709,000 HKD in 2022[1] - Gross profit for 2023 was 758,515,000 HKD, compared to 769,790,000 HKD in 2022[1] - Operating profit for 2023 was 101,774,000 HKD, down from 152,708,000 HKD in 2022[1] - Profit attributable to owners of the company for 2023 was 116,164,000 HKD, a 25% decrease from 154,462,000 HKD in 2022[25] - Net profit for the year was HKD 116,164,000, compared to HKD 154,462,000 in the previous year[69] - Operating profit fell by 33% to HKD 101,774,000, with an operating profit margin of 8%, down from 11% last year[118] Property Sales and Rental Income - The company delivered 99 residential units in 2023, generating sales revenue of 92,621,000 HKD, a 33% decrease from the previous year[31] - The company's rental and property management income in Guangzhou increased by 2% in RMB terms, with an overall occupancy rate of 83%[30] - The company's Meixian "Goldlion Garden" project has approximately 670 residential units and 47 low-rise units remaining for sale[31] - The occupancy rate of the company's "Golden Lion Group Centre" in Sha Tin was 94.3%, with overall rental and property management income decreasing by approximately 4%[48] - Rental and property management income for the year were HKD 151,489,000 and HKD 42,150,000, respectively, with a total decrease of about 1% compared to the previous year, mainly due to the depreciation of the RMB exchange rate[143] Clothing Business Performance - The company's Singapore clothing business recorded expenses of 21,012,000 HKD in 2023, up from 18,356,000 HKD in 2022[29] - The company's domestic clothing sales to agents decreased by approximately 14% in RMB terms, accounting for about 34% of domestic clothing sales[26] - Full-year cost of sales for apparel and accessories was HK$443,245,000, a 7% decrease from last year's HK$475,055,000[40] - Gross margin excluding inventory impairment was 53.3%, higher than last year's 50.8%, driven by a higher proportion of self-operated retail sales[40] - Inventory impairment provision for the year was HK$24,807,000, compared to HK$33,813,000 last year[40] - Group custom business sales in RMB decreased by approximately 52% compared to last year, though its contribution to overall domestic apparel sales was minimal[45] - Overall clothing sales in mainland China decreased by 2% to HKD 916,390,000, but increased by 3% in RMB terms due to a 4% depreciation of the RMB[92] - Outlet store sales in mainland China surged by 39% in RMB terms, accounting for 14% of the company's domestic clothing sales[93] - Franchise income declined by 17% to HKD 93,132,000 due to fee reductions in certain franchise agreements[94] - Self-operated retail sales in mainland China increased by 39% in RMB terms, contributing to 18% of domestic clothing sales[120] - E-commerce sales in mainland China grew by 9% in RMB terms, with 95% of sales coming from exclusive products, accounting for 29% of domestic clothing sales[121] - Singapore's clothing sales rose by 3% to HKD 35,674,000, but the segment recorded a loss of HKD 2,754,000 due to inventory impairment provisions and rising costs[122][123] Financial Position and Cash Flow - The company's cash and bank balances as of December 31, 2023, were approximately 1,088,801,000 HKD, a decrease of 88,075,000 HKD from the previous year[33] - As of December 31, 2023, the company had no bank loans or overdrafts, with a debt-to-equity ratio of zero[51] - The company's total issued shares as of December 31, 2023, were 973,844,035, compared to 978,436,035 in 2022[54] - Total non-current assets amounted to HKD 3,015,860,000, slightly lower than the previous year's HKD 3,070,818,000[70] - Net interest income rose by 20% to HKD 25,659,000, driven by higher average deposit rates[91] - As of December 31, 2023, the company provided guarantees of HKD 20,364,000 for mortgage loans of property buyers, a significant decrease from HKD 77,318,000 in 2022. The company believes the net realizable value of the properties is sufficient to cover the defaulted mortgage principal, accrued interest, and penalties, hence no provision was made in the financial statements[128] Costs and Expenses - Employee costs, including directors' remuneration, were HKD 224,016,000, up from HKD 203,617,000 in the previous year[80] - Advertising and promotion expenses increased to HKD 111,192,000 from HKD 98,235,000 in the previous year[80] - Distribution and marketing costs increased by 10% to HKD 447,488,000 compared to HKD 406,197,000 last year, due to the resumption of promotional activities that were previously canceled or delayed due to pandemic measures[90] - Direct operating expenses for investment properties for the year were HKD 37,684,000, a 2% decrease from HKD 38,483,000 in the previous year, mainly due to a 4% depreciation in the RMB exchange rate[136] - Administrative expenses for the year were HKD 162,187,000, a 5% increase from HKD 153,775,000 in the previous year, driven by non-sales staff costs, depreciation, amortization, impairment expenses, and other miscellaneous expenses[137] Share Repurchase and Earnings - The company repurchased a total of 4,592,000 shares in 2023 at a total cost of HK$4,838,510 (before expenses)[54] - Basic earnings per share were calculated based on a net profit attributable to shareholders of HKD 116,164,000 and a weighted average of 978,385,013 shares issued during the year[83] - The company repurchased 4,592,000 ordinary shares at a total cost of HKD 4,879,000 (including transaction costs and expenses of HKD 40,000), with an average price of HKD 1.054 per share. The repurchased shares were canceled, and the company believes this will improve earnings per share and return on assets, benefiting capital structure and shareholder equity[148] Investment Property and Valuation - Investment property fair value loss was HKD 47,066,000, down from HKD 57,110,000 in the previous year[79] - Investment property fair value loss decreased by 18% to HKD 47,066,000, primarily driven by valuation declines in domestic properties, particularly in Guangzhou[96][117] Environmental and Energy Initiatives - The company's Meizhou factory and Guangzhou Yuancun property have installed photovoltaic facilities to promote environmental protection and save electricity costs. A new energy company engaged in photovoltaic business was established domestically, with operations expected to further develop in 2024[126] Employee and Compensation - The company employed approximately 1,800 employees as of December 31, 2023, with total employee costs, including directors' remuneration, amounting to HKD 224,016,000. Competitive compensation is ensured based on job nature, market conditions, individual performance, qualifications, and experience[129] Tax and Provisions - The company's provision for Hong Kong profits tax was calculated at a rate of 16.5% on the estimated taxable profit for the year[82] - The company's gross margin, excluding inventory impairment changes, was 55%, higher than the previous year's 51%, due to the sale of higher-margin new products. Inventory impairment provisions for the year were HKD 1,019,000, compared to a reversal of HKD 3,746,000 in the previous year[142] Future Outlook and Challenges - The company expects the weak domestic economic situation to persist, making the operating environment in 2024 very challenging[49] - The company plans to improve the leasing situation of "Golden Lion Digital Network Building" and other properties to reduce vacancies and enhance leasing potential[50] Brand and Cultural Initiatives - The company operates three "Goldlion 3388" cultural life museums in Shanghai and Guangzhou, promoting the "Goldlion" brand culture and the new "3388" brand concept. The operating loss for the year, after accounting for various expenses and provisions, was approximately HKD 29,730,000[140] Domestic Clothing Sales Strategy - The company's domestic clothing sales continue to focus on wholesale business to agents in multiple provinces, self-operated retail and outlet stores in cities like Guangzhou, Shanghai, Beijing, Chongqing, Liaoning, Jilin, and Shandong, as well as e-commerce and group customization[139]