2025 (Stock Code 股份代號 : 00738) (incorporated in Bermuda with limited liability) (於百慕達註冊成立之有限公司) Report Annual 年 報 2025 lesaunda.com.hk C120915 annual report 2025 年報 CONTENTS 目錄 | Financial Highlights | 3 | 財務摘要 | | --- | --- | --- | | Corporate Information | 5 | 公司資料 | | Shareholder Information | 8 | 股東資料 | | Key Milestones | 10 | 重要大事紀 | | Chairman's Statement | 13 | 主席報告書 | | Management's Discussion and Analysis | 19 | 管理層討論及分析 | | Board of Directors and Senior Management | 37 | 董事會及高層管理人員 | | Corporate G ...

Financial Performance - Total revenue for the year ended February 28, 2025, was RMB 294.1 million, a decrease of 26.7% from RMB 401.4 million in the previous year[4]. - Gross profit for the same period was RMB 143.2 million, down 42.9% from RMB 250.8 million year-on-year[4]. - The company reported a loss attributable to equity holders of RMB 100.8 million, compared to a loss of RMB 23.5 million in the previous year[4]. - Basic and diluted loss per share was RMB 14.28, significantly higher than RMB 3.34 in the prior year[4]. - The company recorded a net loss for the year of RMB 103.3 million, compared to a loss of RMB 24.3 million in the previous year[6]. - Revenue from external customers in mainland China decreased to RMB 294,096 thousand in 2025 from RMB 394,164 thousand in 2024, representing a decline of approximately 25.4%[18]. - The total loss for the year ended February 28, 2025, was RMB 103,292 thousand, compared to a loss of RMB 24,326 thousand for the year ended February 29, 2024[15]. - Total revenue from government subsidies decreased to RMB 732,000 in 2025 from RMB 1,358,000 in 2024, a decline of 46.0%[19]. - The company reported a significant fair value loss on investment properties of RMB (9,244,000) in 2025, with no such loss reported in 2024[19]. - The company's total revenue for the fiscal year 2024/2025 decreased by 26.7% to RMB 294.1 million, compared to RMB 401.4 million in the previous fiscal year 2023/2024[28]. Assets and Liabilities - Total assets decreased to RMB 574.2 million from RMB 744.1 million year-on-year[7]. - Total liabilities reduced to RMB 90.8 million from RMB 126.0 million in the previous year[8]. - Total assets as of February 28, 2025, amounted to RMB 529,994 thousand, a decrease from RMB 693,135 thousand as of February 29, 2024[16]. - The total liabilities as of February 28, 2025, were RMB 76,475 thousand, compared to RMB 106,224 thousand as of February 29, 2024, indicating a reduction of approximately 28.0%[16]. - Cash and bank balances were RMB 327.9 million, down from RMB 364.7 million year-on-year[7]. - Trade receivables were reported at RMB 20.9 million for 2025, down from RMB 31.0 million in 2024, with a provision for impairment of RMB 946,000[26]. - Trade payables decreased to RMB 9.1 million in 2025 from RMB 18.6 million in 2024, indicating improved cash flow management[27]. - The company's total non-current assets (excluding deferred tax assets) decreased to RMB 92,936 thousand in 2025 from RMB 116,035 thousand in 2024[18]. - Non-current assets in mainland China decreased to RMB 25,922 thousand in 2025 from RMB 41,591 thousand in 2024, a decline of approximately 37.7%[18]. Operational Efficiency - The company implemented discount promotions to accelerate inventory turnover, which led to a significant decline in average selling prices and gross profit margins[40]. - The inventory turnover period for finished goods decreased from 432 days to 291 days[35]. - The company has optimized its logistics system to streamline operations, reduce inventory costs, and improve product turnover rates[40]. - A centralization of functions is being pursued to enhance operational efficiency and responsiveness to market changes, while reducing redundant positions[40]. - The group is implementing a series of optimization measures to enhance resilience against external market changes and improve operational efficiency, including streamlining company structure and integrating supply chains[36]. Market and Strategic Focus - The overall decline in revenue and gross profit reflects challenges in the market, necessitating strategic adjustments moving forward[28]. - The company plans to focus on enhancing product offerings and market expansion to recover from the current financial downturn[28]. - The retail environment remains weak, with consumer confidence not showing significant improvement, leading to cautious spending behavior among consumers[36]. - The group is actively reviewing and optimizing its offline distribution network, particularly focusing on stores that incur fixed rental costs and retaining only those contributing positively to the group[39]. - The group aims to maintain an appropriate distance between stores to improve the effectiveness of reaching target customer groups[39]. Employee and Governance - As of February 28, 2025, the company had a total of 595 full-time employees, a decrease from 927 employees as of February 29, 2024[46]. - Employee benefits expenses totaled RMB 124.7 million for the year, compared to RMB 121.7 million in the previous year, reflecting a 2.5% increase[46]. - The company has established comprehensive training programs for employees, enhancing skill development through external consultants[46]. - The company is committed to maintaining high standards of corporate governance and has adhered to the corporate governance code since October 2019[49]. - The audit committee consists of four independent non-executive directors, ensuring oversight of financial reporting and internal controls[47]. E-commerce and Brand Management - The group's e-commerce revenue declined by 8.8% year-on-year due to intense online brand competition and increased return rates in the industry[41]. - The group emphasizes effective online brand management to maintain brand image, rather than relying solely on price reduction strategies[41]. - The group is leveraging live streaming and product sharing events to engage potential customers and stimulate repurchase intentions[41]. - The group aims to strengthen partnerships with traditional e-commerce platforms and emerging social media platforms to drive online traffic[41]. - The group is focused on creating a synergistic effect between online and offline channels to boost overall sales performance[41]. Future Outlook - The World Bank estimates global economic growth to be 2.7% by 2025, but significant downside risks remain due to trade policy uncertainties and ongoing economic tensions[42]. - The company plans to enhance brand image through a new visual identity and packaging upgrades, including a refined gray gift box and a light purple brand logo, to improve customer experience[42]. - The company will continue to optimize offline sales channels and has opened its first flagship store in Shunde Wanxianghui, featuring a wide range of products and fast restocking capabilities[43].

Financial Performance - In the first half of fiscal year 2024/25, the total revenue of the Group decreased by 27.3% year-on-year to RMB149,600,000, down from RMB205,800,000 in 2023/24[9]. - Consolidated gross profit decreased by 41.1% year-on-year to RMB79,400,000, compared to RMB134,900,000 in the previous year[9]. - The overall gross profit margin was 53.1%, representing a decrease of 12.4 percentage points from 65.5% in the corresponding period of last year[11]. - The consolidated loss attributable to owners of the Company was RMB38,000,000, compared to a loss of RMB13,900,000 in 2023/24[9]. - The basic loss per share was RMB (5.39) cents, compared to RMB (1.96) cents in the previous year[11]. - Total revenue decreased by 27.3% year-on-year to RMB 149,600,000, with a consolidated gross profit down 41.1% to RMB 79,400,000, resulting in a gross margin of 53.1%, a decrease of 12.4 percentage points[15]. - The Group recorded a consolidated loss attributable to owners of RMB 38,000,000, compared to a loss of RMB 13,900,000 in the previous year, with a basic loss per share of RMB 5.39 cents[21]. - For the six months ended 31 August 2024, the total comprehensive loss was RMB 45,363,000, compared to a gain of RMB 2,706,000 in the same period last year[69]. - For the six months ended 31 August 2024, the loss attributable to owners of the Company was RMB 38,038,000, compared to RMB 13,853,000 for the same period in 2023, representing a significant increase in loss[133]. - The basic loss per share for the six months ended 31 August 2024 was RMB (5.39) cents, compared to RMB (1.96) cents for the same period in 2023, indicating a deterioration in financial performance[133]. Expenses and Cost Management - Selling and distribution expenses decreased by 22.9% year-on-year to RMB83,300,000, while the ratio of these expenses to total revenue increased by 3.2 percentage points to 55.7%[13]. - General and administrative expenses increased by 0.7% to RMB41,800,000, leading to a rise in the ratio of these expenses to total revenue by 7.8 percentage points to 28.0%[14]. - Sales and distribution expenses fell by 22.9% to RMB 83,300,000, with the expense ratio increasing by 3.2 percentage points to 55.7% due to one-time employee compensation and higher sales commissions[15]. - General and administrative expenses increased by 0.7% to RMB 41,800,000, leading to an expense ratio rise of 7.8 percentage points to 28.0%[16]. - The Group's total employee benefit expenses for the six months ended August 31, 2024, amounted to RMB 59,300,000, a decrease from RMB 63,200,000 in the previous year[62]. Retail Market Conditions - The Group's continuing sluggish retail market in Mainland China significantly impacted total retail sales, prompting higher retail discounts to clear slow-moving inventories[12]. - Same store sales declined by 19.5%, contrasting with a 13.5% increase in the previous year[33]. - Retail sales of garments, footwear, hats, and knitwear have shown signs of decline since April 2024, continuing negative growth until August 2024[39]. - Retail sales through department stores and brand specialty stores dropped by 3.3% and 1.9% year-on-year, respectively[39]. - The Chinese government's policies aimed at boosting domestic demand have not benefitted the entire retail and footwear industry[33]. Inventory and Cash Management - As of August 31, 2024, the Group's inventory balance was RMB 119,000,000, a significant decrease of approximately 38.1% from RMB 192,300,000 the previous year[25]. - The proportion of inventory aged less than one year decreased by 12.8 percentage points to 42.2%[26]. - The Group's cash and bank balances amounted to RMB 336,300,000, with a quick ratio of 3.9 times, indicating a strong liquidity position[28]. - The Group's cash and bank balances as of August 31, 2024, were RMB 336,300,000, down from RMB 364,700,000 on February 29, 2024[30]. - The current ratio was 3.9 times as of August 31, 2024, compared to 4.0 times on February 29, 2024[30]. - The Group plans to actively reduce excess off-season inventory to accelerate inventory turnover and strengthen cash flow, while avoiding low-priced selling strategies that could degrade brand value[54]. Strategic Initiatives - The Group aims to enhance its market position through strategic adjustments in response to the challenging retail environment[12]. - The Group plans to optimize supply chain management and improve procurement planning to enhance product quality and customer confidence[51]. - The Group aims to establish a better brand reputation by providing high-quality products that meet current footwear trends[50]. - The Group is consolidating its logistics chain to streamline procurement, transportation, and warehousing processes, reducing costs[51]. - The Group will continue to review brand positioning and introduce new sales and marketing plans to maintain market share in ladies' fashion footwear[50]. - The Group is enhancing its CRM system to better understand customer needs and improve sales success rates[47]. - The Group will explore new consumer product types to diversify its product portfolio and meet market demands[56]. Corporate Governance and Management - The Board is committed to maintaining high standards of corporate governance to protect shareholder interests[171]. - The Company emphasizes transparency and accountability in its corporate governance practices[171]. - The position of Chief Executive Officer has been vacant since October 2019, with responsibilities taken up by other executive Directors[172]. - The Audit Committee comprises four independent non-executive Directors, ensuring oversight of financial information and internal controls[173]. - The Audit Committee reviewed and recommended approval of the unaudited condensed consolidated interim financial information for the six months ended 31 August 2024[177]. - The Company has complied with the Corporate Governance Code, with a focus on transparency and accountability to enhance shareholder value[174]. - All Directors confirmed compliance with the Code of Conduct and the Model Code during the reporting period[186]. Shareholder Information - As of August 31, 2024, Mr. Li Wing Yeung holds a total of 60,920,200 shares, representing approximately 8.63% of the issued share capital of the company[155]. - Ms. Chui Kwan Ho holds 5,779,000 shares, accounting for about 0.81% of the issued share capital[155]. - Mr. Leung Wai Ki has an interest in 1,700,000 shares, which is approximately 0.24% of the issued share capital[155]. - Mr. Lee Tze Bun has a total interest of 371,661,000 shares, representing approximately 52.65% of the issued share capital[161]. - Stable Gain Holdings Limited holds 225,500,000 shares, accounting for about 31.94% of the issued share capital[161]. - The total number of Shares held by substantial shareholders and other persons is significant, indicating strong ownership concentration[164].

Financial Performance - Revenue for the six months ended August 31, 2024, was RMB 149.6 million, a decrease of 27.3% from RMB 205.8 million in the same period last year[1]. - Gross profit for the same period was RMB 79.4 million, down 41.1% from RMB 134.9 million year-on-year[1]. - The company reported a loss attributable to equity holders of RMB 38.0 million, compared to a loss of RMB 13.9 million in the previous year[1]. - Basic loss per share was RMB 5.39, significantly higher than RMB 1.96 in the prior period[1]. - The group reported a total loss of RMB 39,618 for the six months ending August 31, 2024, compared to a loss of RMB 14,248 for the same period in 2023, indicating a significant increase in losses[14]. - The consolidated gross profit fell by 41.1% to RMB 79.4 million, down from RMB 134.9 million year-on-year, resulting in a gross margin reduction of 12.4 percentage points to 53.1%[39]. - Basic loss per share increased from RMB 1.96 to RMB 5.39, reflecting a significant increase in losses attributable to equity holders[27]. Assets and Liabilities - Total assets as of August 31, 2024, amounted to RMB 655.5 million, down from RMB 744.1 million as of February 29, 2024[5]. - Current assets decreased to RMB 136.4 million from RMB 145.5 million in the previous reporting period[5]. - Cash and cash equivalents were RMB 336.3 million, a decline from RMB 364.7 million[5]. - Total liabilities were RMB 114.9 million, down from RMB 126.0 million[7]. - The total assets of the group as of August 31, 2024, were RMB 655,456, compared to RMB 744,082 as of February 29, 2024, indicating a decrease of approximately 11.9%[17]. - The group’s total liabilities as of August 31, 2024, were RMB 114,881, a decrease from RMB 125,971 as of February 29, 2024, representing a decline of approximately 8.6%[17]. Revenue Sources - For the six months ending August 31, 2024, external customer revenue from mainland China was RMB 149,591, a decrease from RMB 200,523 for the same period in 2023, representing a decline of approximately 25.3%[19]. - The group’s total revenue for the six months ending August 31, 2024, was RMB 149,591, with no revenue reported from Hong Kong and Macau during this period[19]. - E-commerce revenue decreased by 9.9% year-on-year due to insufficient economic recovery and declining consumer spending[53]. - Online retail sales of physical goods in mainland China grew by 8.1% year-on-year, down from 12.1% in the same period last year[53]. Expenses - Selling and distribution expenses decreased by 22.9% to RMB 83.3 million, but as a percentage of total revenue, it increased by 3.2 percentage points to 55.7%[40]. - General and administrative expenses increased by 0.7% to RMB 41.8 million, leading to an increase in its proportion of total revenue by 7.8 percentage points to 28.0%[41]. - Total expenses related to sales and distribution decreased from RMB 70,910 million to RMB 70,176 million, with advertising and promotional expenses dropping from RMB 7,733 million to RMB 5,850 million[22]. Inventory and Receivables - Inventory balance as of August 31, 2024, was RMB 119 million, a significant decrease of approximately 38.1% from RMB 192.3 million year-on-year[44]. - Trade receivables decreased from RMB 36,275 million to RMB 32,050 million, with receivables overdue by more than 90 days remaining minimal at RMB 46 million[32]. - Trade payables decreased from RMB 85,820 million to RMB 80,182 million, with the majority of payables due within 30 days[35]. Corporate Governance - The financial results are unaudited but have been reviewed by the company's audit committee[2]. - The audit committee consists of four independent non-executive directors, ensuring compliance with financial reporting and risk management standards[65]. - The company has adhered to corporate governance standards, although the CEO position has been vacant since October 2019, with responsibilities managed by other executive directors[67]. - The company confirms compliance with the standards for securities trading by directors as of August 31, 2024[68]. Dividends - The company did not declare an interim dividend, compared to a special interim dividend of HKD 5.0 in the previous year[1]. - The board does not recommend the distribution of interim dividends for the six months ending August 31, 2024, compared to a special interim dividend of 5.0 HKD cents per share in the previous year[62]. Employee and Operational Changes - The company employed a total of 805 employees as of August 31, 2024, down from 927 employees in the previous period, with 789 based in mainland China[63]. - The group closed 73 stores in mainland China, reducing the total number of stores to 224[49]. - The company aims to enhance operational efficiency by focusing resources on profitable key stores[52]. Market Conditions and Future Outlook - The retail environment in China showed a 3.7% increase in overall retail sales, but clothing and footwear categories experienced negative growth starting in April 2024[51]. - The company expects inflationary pressures to ease in the second half of 2024, which may boost consumer spending[56]. - The company plans to optimize supply chain management and logistics systems to enhance operational efficiency and reduce costs[57]. - The company is focused on reducing excess seasonal inventory and improving cash flow while maintaining brand value[58].

Financial Performance - Revenue for the year ended February 29, 2024, was RMB 401.4 million, a decrease of 2.9% compared to RMB 413.2 million for the year ended February 28, 2023[6]. - Consolidated loss attributable to owners of the company improved to RMB (23.5) million from RMB (50.3) million year-on-year[6]. - Basic losses per share decreased to RMB (3.34) cents from RMB (7.12) cents[6]. - Total equity as of February 29, 2024, was RMB 618.1 million, down 6.9% from RMB 663.6 million[6]. - Net cash balances were RMB 364.7 million, a slight decrease of 1.9% from RMB 371.6 million[6]. - Net asset value per share decreased to RMB 0.88 from RMB 0.94, reflecting a 6.9% decline[6]. - Consolidated gross profit decreased by 6.8% year-on-year to RMB 250,800,000, with a gross profit margin of 62.5%, down 2.7 percentage points from the previous year[75]. - Selling and distribution expenses decreased by 14.7% year-on-year to RMB 204,800,000, with the ratio of these expenses to total revenue decreasing by 7.1 percentage points to 51.0%[80]. - General and administrative expenses decreased by 3.3% to RMB 84,000,000 compared to RMB 86,900,000 in the previous year, with the ratio to total revenue decreasing by 0.1 percentage points to 20.9%[83]. - Other income fell by 58.1% year-on-year to RMB 2,300,000, down from RMB 5,500,000, primarily due to a sluggish retail market[84]. - The Group's overall retail revenue decreased by 2.9% to RMB 401,400,000 compared to RMB 413,200,000 in the previous year[106]. - Annual same store sales increased by 11.7%, a significant improvement from a decline of 27.7% in the previous year[106]. Market and Sales Strategy - The overall recovery pace of the market was slower than expected due to issues such as domestic real estate debts and rising unemployment rates among young people[43]. - The Group is investing more resources in CRM systems and mini app stores to improve customer relationship management and increase VIP member loyalty[51]. - The Group's marketing plans are designed to meet the diversified demands of its target customer base and improve brand loyalty[43]. - The Group is focusing on innovative operational management to meet changing customer design needs and strengthen brand influence[62]. - The Group is expanding its e-commerce presence on platforms like Douyin, WeChat, and Xiaohongshu to reach more potential consumers[48]. - The Group is scrutinizing the performance of existing stores, closing underperforming ones while renewing leases for profitable locations[50]. - The Group's long-term cooperation with JD.com has resulted in mutual benefits and won the "2023 Big Brand Outlet Award" from JD.com's fashion division, showcasing successful strategic synergy[127]. - The Group is actively reviewing e-commerce business expenses and reallocating resources to platforms with higher traffic and sales volume[124]. - The Group's overall revenue from e-commerce business declined by 8.6% year-on-year due to various challenges including sluggish consumer sentiment and rising product return rates[130]. Corporate Strategy and Governance - The Group's corporate strategy focuses on "striving for progress while ensuring stability" to consolidate its core advantages in shoe-making and further develop its brands[43]. - The Group's sustainable corporate strategies include green growth, technology development, innovative management, and staff development[56]. - The Group's management is committed to enhancing corporate governance practices to align with statutory and professional standards[186]. - The Board is focused on protecting the interests of shareholders and creating value through improved operational transparency[186]. - The management has established four main sustainable corporate strategies: green growth, technological development, innovative operational management, and employee development, which have been reviewed and approved by the board[197]. Employee and Operational Management - The Group aims to enhance employee development through customized training programs and a comprehensive promotion system[66]. - The Group's total employee benefit expenses for the twelve months ended 29 February 2024 amounted to RMB 121,700,000, a decrease from RMB 135,900,000 in the previous year[155]. - The Group had a full-time staff force of 927 people as of 29 February 2024, down from 1,120 people the previous year[155]. - The Group is committed to finding experienced talents and retaining outstanding employees to enhance its competitive advantage[145]. - The Group's management approach to corporate culture includes factors such as employee engagement, retention, training, and compliance with laws and regulations[195]. Future Outlook - The Chairman expressed optimism for 2024, highlighting the readiness to seize opportunities in a complex retail market[71]. - The Group is cautiously optimistic about future economic growth in Mainland China and will adjust marketing strategies based on domestic policy trends[135]. - The Group plans to utilize online and offline resources, along with its existing VIP member database, to create a controllable traffic system to enhance brand value[142].

Financial Performance - Revenue for the year ended February 29, 2024, was RMB 401.4 million, a decrease of 2.9% compared to RMB 413.2 million for the previous year[2]. - Gross profit for the same period was RMB 250.8 million, down 6.8% from RMB 269.2 million[2]. - The company reported a loss attributable to equity holders of RMB 23.5 million, an improvement from a loss of RMB 50.3 million in the previous year[2]. - Basic and diluted loss per share was RMB 3.34, compared to RMB 7.12 in the prior year[2]. - Total revenue for 2024 was RMB 401,428,000, a decrease of 2.0% from RMB 413,227,000 in 2023[53]. - Revenue from mainland China was RMB 394,164,000 in 2024, down from RMB 410,426,000 in 2023, reflecting a decline of 4.0%[53]. - Overall retail revenue declined by 2.9% to RMB 401.4 million, despite same-store sales increasing by 11.7%[90]. - The net loss for the year was RMB 24,326 thousand, significantly improved from a net loss of RMB 51,267 thousand in the prior year, representing a reduction of approximately 52.6%[150]. Dividends and Shareholder Returns - The company declared an interim special dividend of HKD 5.0 per share, compared to no dividend in the previous year[2]. - The company plans to declare a final special dividend of HKD 0.05 per share, totaling approximately RMB 32,173,000, as a reward for shareholders[41]. - The board has proposed a special dividend of HKD 0.05 per ordinary share for the year ending February 29, 2024, which is a new initiative compared to no special dividend in the previous year[110]. Assets and Liabilities - Total assets decreased to RMB 744.1 million from RMB 802.5 million year-over-year[19]. - The company’s total equity decreased to RMB 618.1 million from RMB 663.6 million[6]. - Total liabilities decreased to RMB 125,971 thousand from RMB 138,814 thousand, reflecting a reduction of approximately 9.2%[155]. - Current assets included cash and bank balances of RMB 364.7 million, slightly down from RMB 371.6 million[5]. - Non-current assets increased to RMB 76.0 million in investment properties from RMB 73.2 million[18]. Operational Efficiency - General and administrative expenses decreased by 3.3% to RMB 84,000,000 in 2024, compared to RMB 86,900,000 in 2023[48]. - The company has maintained a strict control over logistics costs, contributing to the reduction in general and administrative expenses[48]. - Sales and distribution expenses decreased by 14.7% to RMB 204.8 million, accounting for 51.0% of total revenue, down from 58.1% in the previous year[83]. - The company is actively controlling e-commerce expenses in response to revenue, emphasizing high-traffic and high-sales platforms[100]. Store Network and Retail Strategy - The retail network in mainland China consisted of 283 physical stores, with a net decrease of 38 self-operated stores during the year[77]. - The number of stores for the core brand le saunda decreased by 41 to 202, while the high-end brand LINEA ROSA saw a reduction of 1 store to 26[91]. - The company plans to reduce underperforming physical stores and focus on a mixed sales model that includes direct sales to optimize operations and reduce costs[125]. - The company is optimizing its store network, focusing on traditional department stores while adapting to the shift towards experiential shopping[99]. Market and Consumer Trends - The group maintains a cautiously optimistic outlook on future economic growth in mainland China, despite ongoing challenges in the retail market due to high interest rates and uncertain economic growth dynamics[105]. - Retail sales in mainland China dropped by 4.0% to RMB 394.2 million, reflecting weaker-than-expected consumer recovery[93]. - The company plans to focus resources on the footwear business in mainland China after closing its beauty business in Hong Kong due to changing consumer patterns[95]. Employee and Governance - The total employee benefits expenditure for the twelve months ending February 29, 2024, amounted to RMB 121,700,000, a decrease from RMB 135,900,000 in the previous year[112]. - The group has a total of 927 full-time employees as of February 29, 2024, down from 1,120 employees a year earlier, indicating a strategic adjustment in workforce management[112]. - The company has adhered to corporate governance codes and has ensured that the roles of chairman and CEO are not held by the same individual, maintaining a clear separation of responsibilities[117]. - The group aims to enhance corporate governance practices to align with business growth and regulatory compliance[147]. Future Initiatives - The group is integrating e-commerce and physical retail operations to enhance operational efficiency and customer interaction[94]. - The company is enhancing its CRM system and reforming the existing VIP membership program to support new marketing strategies[99]. - The group plans to leverage online and offline resources, along with its existing VIP member database, to create a controllable traffic system aimed at enhancing brand value and sales conversion rates[106]. - The company is conducting live-streaming sales events to engage with target customer groups and promote brand information[102].

Financial Performance - In the first half of fiscal year 2023/24, total revenue decreased by 2.5% year-on-year to RMB 205.8 million (2022/23: RMB 211.1 million) [17]. - Consolidated gross profit decreased by 1.5% to RMB 134.9 million (2022/23: RMB 137.0 million), with a gross profit margin of 65.5%, an increase of 0.6 percentage points compared to the previous year [17][21]. - Consolidated loss attributable to owners of the Company was RMB 13.9 million, an improvement from a loss of RMB 23.4 million in the same period last year [17][19]. - The overall financial performance reflects the ongoing challenges in consumer sentiment despite the lifting of COVID-19 restrictions [21]. - Revenue for the six months ended August 31, 2023, was RMB 205,820,000, a decrease of 2.0% from RMB 211,081,000 in the same period of 2022 [98]. - The loss for the period ended August 31, 2023, was RMB 14,248,000, compared to a loss of RMB 23,756,000 for the same period in 2022, indicating a reduction of 40.2% [153][155]. Expenses and Cost Management - Selling and distribution expenses decreased by 6.7% year-on-year to RMB 108.1 million, with the ratio to total revenue decreasing by 2.4 percentage points to 52.5% [22]. - General and administrative expenses decreased by 0.9% to RMB 41.5 million, with the ratio to total revenue increasing by 0.3 percentage points to 20.2% [23]. - Other income decreased by 78.4% year-on-year to RMB 800,000, primarily due to a reduction in government incentives [24]. - Total expenses for the six months were RMB 70,910,000 for cost of sales, down from RMB 74,073,000, a decrease of 4.4% [174]. Cash Flow and Liquidity - Cash and bank balances as of August 31, 2023, amounted to RMB 399,800,000, up from RMB 371,600,000 as of February 28, 2023, with a quick ratio of 3.7 times [43]. - The Group did not borrow any bank loans during the period and had no outstanding bank loans at the end of the financial period [43]. - For the six months ended August 31, 2023, net cash inflows from operating activities were RMB 30,376,000, an increase from RMB 16,904,000 in the same period of 2022, representing an increase of 79% [118]. - Net cash outflows from investing activities were RMB 42,704,000, compared to RMB 6,440,000 in the previous year, indicating a significant increase in investment spending [118]. - The cash and bank balances at August 31, 2023, were RMB 399,816,000, down from RMB 421,653,000 in the previous year [118]. Inventory and Sales Performance - As of August 31, 2023, inventory balance was RMB 192,300,000, a slight increase of 0.2% from RMB 191,900,000 the previous year [37]. - The proportion of inventory aged less than one year decreased by 15 percentage points to 55%, while inventory turnover days increased by 109 days to 498 days [40]. - The Group's total retail revenue decreased by 2.5% to RMB 205,800,000 compared to RMB 211,100,000 in the previous year, while same-store sales increased by 13.5% [49]. - In the first half of 2023, the Group's sales in Mainland China dropped by 4.7% year-on-year to RMB 200,500,000, while same-store sales increased by 12.1% [61]. Dividends and Shareholder Returns - The Company did not declare an interim dividend for this period, but announced a special interim dividend of 5.0 HK cents [19]. - An interim special dividend of HK5.0 cents per ordinary share has been declared for the six months ended August 31, 2023, compared to no interim special dividend in the previous year [90]. Employee and Operational Metrics - The total employee benefit expenses for the six months ended August 31, 2023, amounted to RMB 63,200,000, a decrease from RMB 67,900,000 in the previous year [91]. - The Group's workforce as of August 31, 2023, consisted of 1,017 employees, a reduction from 1,120 employees as of February 28, 2023 [91]. - The Group closed one physical cosmetic store during the review period while maintaining another to continue offering cosmetic and skin-care products [70]. Market and Strategic Initiatives - The retail market in China is expected to grow significantly in the third and fourth quarters of 2023 due to increased government stimulus measures [49]. - The Group has implemented a decentralized strategy for key specialty stores, department stores, and outlet malls to enhance market position and improve sales ranking [61]. - The Group aims to enhance brand value and expand market share despite the economic downturn, focusing on high-quality products and customer satisfaction [85]. - Additional resources will be invested in platform promotion by opening flagship stores on Tmall, Xiaohongshu, and Douyin to target emerging consumer groups [74]. Financial Position and Assets - Total assets as of August 31, 2023, increased to RMB 815,761,000 from RMB 802,450,000 as of February 28, 2023 [106]. - The total liabilities increased to RMB 149,419,000 as of August 31, 2023, from RMB 138,814,000 as of February 28, 2023, reflecting an increase of 7.5% [110]. - The Group's financial position remains robust, with no bank loans outstanding as of the end of the reporting period [45].

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 佈 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 佈 全 部 或 任 何 部 份 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任 。 （ 於 百 慕 達 註 冊 成 立 之 有 限 公 司 ） （ 股 份 代 號 ： 00738） 截至二零二三年八月三十一日止六個月之 中期業績公佈 財 務 概 要截至八月三十一日止 六個月 變動 二零二三年 二零二二年 變動 百分比 本公 司 權益 持 有人 應佔 虧 損 人民幣百萬元 (13.9) (23.4) 每股 基 本虧 損 人民幣分 (1.96) (3.31) 每股 股 息 - 中期 港仙 - - 收益 人民幣百萬元 205.8 211.1 (5.3) (2.5) 毛利 人民幣百萬元 134.9 137.0 (2.1) (1.5) - 中期 特 別 港仙 5.0 - *僅 供 識 別 1 萊 爾 斯 ...

(Stock Code 股份代號 : 00738) (incorporated in Bermuda with limited liability) (於百慕達註冊成立之有限公司) REPORT ANNUAL 2023 年報 CONTENTS 目錄 | Financial Highlights | 3 | 財務摘要 | | --- | --- | --- | | Corporate Information | 5 | 公司資料 | | Shareholder Information | 8 | 股東資料 | | Key Milestones | 10 | 重要大事紀 | | Chairman's Statement | 15 | 主席報告書 | | Management's Discussion and Analysis | 23 | 管理層討論及分析 | | Board of Directors and Senior Management | 41 | 董事會及高層管理人員 | | Corporate Governance Report | 45 | 企業管治報告 | | Environmental, So ...

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佈的內容概不負責，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佈全部或任何部份內 容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號：00738） 截至二零二三年二月二十八日止年度 全年業績公佈 財務概要 截至 截至 二零二三年 二零二二年 二月二十八日 二月二十八日 變動 止年度 止年度 變動 % 收益 百萬人民幣 413.2 569.0 (155.8) (27.4%) 毛利 百萬人民幣 269.2 357.9 (88.7) (24.8%) 本公司權益持有人 應佔（虧損）╱溢利 百萬人民幣 (50.3) 3.0 每股基本（虧損）╱ ...