Financial Performance - Total revenue for the first half of the fiscal year 2019/20 decreased by 18.2% to RMB 376.7 million, compared to RMB 460.4 million in the same period last year[14]. - Gross profit fell by 16.9% to RMB 241.2 million, while the overall gross margin slightly increased by 0.9 percentage points to 64.0%[18]. - The company reported a net profit attributable to equity holders of RMB 2.4 million, a turnaround from a net loss of RMB 9.6 million in the previous year[23]. - Total revenue decreased by 18.2% to RMB 376.7 million compared to RMB 460.4 million in the previous year[30]. - Same-store sales increased by 3.7%, contrasting with a decline of 10.2% in the previous year[30]. - The net profit for the six months was RMB 2,363,000, a significant recovery from a loss of RMB 9,031,000 in the previous year[47]. - The company reported a profit attributable to equity holders of RMB 2,388,000 for the six months ended August 31, 2019, compared to a loss of RMB 9,585,000 in the same period of 2018, resulting in a basic earnings per share of RMB 0.34, up from a loss of RMB 1.36[128]. Expenses and Cost Management - Selling and distribution expenses decreased by 27.0% to RMB 168.7 million, reducing their proportion of total revenue by 5.4 percentage points to 44.8%[22]. - General and administrative expenses fell by 7.7% to RMB 69.2 million, with their proportion of total revenue increasing by 2.1 percentage points to 18.4%[22]. - Employee benefits expenses for the six months totaled RMB 123,700,000, down from RMB 147,600,000 in the previous year[44]. - The group’s advertising and promotional expenses were RMB 11,859,000 for the six months ended August 31, 2019, down from RMB 22,053,000 in the same period of 2018, indicating a reduction of approximately 46.3%[123]. - The total depreciation and amortization expense for the six months ended August 31, 2019, was RMB 17,043,000, a decrease from RMB 16,651,000 in the same period of 2018[123]. Inventory and Assets - Inventory balance as of August 31, 2019, was RMB 330.4 million, a decrease of 7.2% from RMB 355.9 million in the previous year[26]. - Cash and bank balances as of August 31, 2019, were RMB 418 million, down from RMB 590.6 million as of February 28, 2019[28]. - The total assets as of August 31, 2019, were RMB 1,209,426,000, down from RMB 1,326,158,000 as of February 28, 2019[55]. - The total liabilities increased to RMB 218,493 thousand as of August 31, 2019, compared to RMB 139,992 thousand in the previous period, representing a growth of 56.2%[58]. - The total equity attributable to owners of the company was RMB 990,933 thousand as of August 31, 2019, down from RMB 1,186,166 thousand, a decrease of 16.4%[61]. Store Operations - Retail same-store sales showed low growth, but the number of retail stores significantly decreased due to the integration of inefficient outlets[18]. - The group closed 156 stores, reducing the total number of stores to 465, with a net decrease of 150 self-operated stores[31]. - The company plans to optimize underperforming stores and adopt a cautious approach to new store openings due to economic pressures[40]. Cash Flow and Financing - The net cash inflow from operating activities for the six months ended August 31, 2019, was RMB 31,064 thousand, down from RMB 44,062 thousand in the same period last year, a decrease of 29.5%[71]. - The company’s financing activities resulted in a net cash outflow of RMB 167,526 thousand, significantly higher than the RMB 48,250 thousand outflow in the same period last year, indicating increased financing needs[71]. - The company has provided guarantees for bank financing with a maximum limit of RMB 227,800,000 as of August 31, 2019, an increase from RMB 212,900,000 as of February 28, 2019[152]. Taxation and Other Income - The effective tax rate for the group was 28.5%, compared to 27.6% in the previous year[24]. - Other income decreased by 62.1% to RMB 4.1 million, primarily due to reduced government subsidies[23]. - The group’s other income, including rental income and government subsidies, was RMB 4,055,000 for the six months ended August 31, 2019, compared to RMB 10,704,000 in the same period of 2018, a decline of about 62.1%[120]. Shareholder Information - As of August 31, 2019, Mr. Li Zibin holds a total of 371,661,000 shares, representing 52.65% of the company's issued share capital[161]. - Stable Gain Holdings Limited holds 225,500,000 shares, representing approximately 31.94% of the company's issued share capital[178]. - The charity fund established by Mr. Lee holds 55,000,000 shares, accounting for about 7.79% of the company's issued share capital[165]. - The company has a total of 1,625,000 stock options outstanding as of August 31, 2019, with an average exercise price of HKD 2.185[147]. Corporate Governance - The audit committee consists of three independent non-executive directors, ensuring compliance with the relevant professional qualifications and financial management knowledge[198]. - The audit committee's primary responsibilities include overseeing the truthfulness of financial information and the effectiveness of financial controls and risk management systems[200]. - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange, with a noted deviation regarding the attendance of non-executive directors at the annual general meeting[196].

Financial Performance - Revenue for the year ended February 28, 2019, was RMB 908.8 million, a decrease of 19.6% compared to RMB 1,130.6 million for the previous year[7]. - The company reported a loss attributable to equity holders of RMB (28.0) million, compared to a profit of RMB 59.7 million in the previous year[7]. - Basic loss per share was RMB (3.97), down from a profit of RMB 8.45 per share in the previous year[7]. - Total equity as of February 28, 2019, was RMB 1,186.2 million, a decrease of 4.6% from RMB 1,242.8 million in the previous year[7]. - Net cash balance was RMB 590.6 million, down 2.1% from RMB 603.1 million in the previous year[7]. - Gross profit fell by 23.3% to RMB 570.2 million, compared to RMB 743.5 million in the previous year, with a gross margin decline of 3.1 percentage points to 62.7%[41][46]. - Selling and distribution expenses were reduced by 20.4% to RMB 436.7 million, improving the ratio of these expenses to total revenue by 0.4 percentage points to 48.1%[46]. - General and administrative expenses decreased by 9.6% to RMB 161 million, but the ratio to total revenue increased by 1.9 percentage points to 17.7%[46]. - Retail revenue decreased by 19.6% to RMB 908.8 million, compared to RMB 1,130.6 million in the previous year[59]. - Same-store sales recorded a decline of 13.2%, compared to an 11.3% decline in the previous year[59]. - Retail sales in mainland China fell by 20.4% to RMB 850.9 million, down from RMB 1,068.7 million the previous year[65]. - Sales in Hong Kong and Macau decreased by 6.5% to RMB 57.8 million, down from RMB 61.8 million the previous year[68]. Operational Efficiency - Inventory turnover days increased to 326 days from 305 days in the previous year[7]. - The current ratio improved to 5.9 from 5.5 in the previous year[7]. - The company is committed to optimizing its store network and closing unprofitable retail locations to improve overall efficiency[34]. - The company plans to focus on franchise, wholesale, and outlet business models in key regions and high-growth cities[35]. - The group aims to improve single-store sales to enhance overall store performance after a period of store closures, believing the current store structure is healthier[75]. - The group plans to enhance store efficiency and reduce underperforming stores while opening new locations in suitable areas[68]. - The company has reported a 5% reduction in operational costs due to improved efficiency measures implemented in the last quarter[92]. E-commerce and Market Strategy - The company emphasized the importance of e-commerce and plans to expand its customer base through collaborations with video bloggers and social media influencers[35]. - E-commerce revenue increased by 8.1% year-on-year, reflecting stable growth in the online business[69]. - The establishment of the official online store for le saunda in Hong Kong aims to extend the brand's reach in the growing online shopping market[70]. - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of $100 million allocated for this purpose[92]. - The management team has emphasized a strategic shift towards e-commerce, aiming for a 40% increase in online sales[91]. - The e-commerce market still has significant growth potential, and the group will continue to invest in e-commerce, utilizing social media for marketing and collaborating with influencers to attract new customers[78]. Corporate Governance - The board consists of three executive directors, two non-executive directors, and three independent non-executive directors as of February 28, 2019[109]. - The board held a total of eight meetings during the year and passed two written resolutions[118]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee various aspects of the business[109]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange, with one independent non-executive director possessing appropriate professional qualifications[117]. - The board aims to maximize shareholder value as a long-term goal[119]. - The company has implemented measures to ensure compliance with regulatory standards and professional guidelines[107]. - The company has arranged suitable directors and officers liability insurance to cover costs, expenses, losses, and liabilities incurred during business operations[124]. Risk Management - The company has adopted a continuous risk management approach to identify and assess inherent risks affecting its objectives, utilizing a risk model to determine risk ratings (L = low risk; M = medium risk; H = high risk)[179]. - The board has established internal control and risk management systems to ensure adequate and effective risk management, with annual reviews conducted to assess their effectiveness[174]. - The audit committee reviews the company's financial reporting system, internal control system, and risk management system annually for adequacy and effectiveness[181]. - The company has implemented a risk register to track and record identified risks, assess and rate risks, and develop and continuously update risk response procedures[179]. - The audit committee is satisfied with the implementation of internal audit recommendations, indicating no significant deficiencies in risk management and internal control systems during the year[181]. Shareholder Engagement - The company emphasizes fair treatment of all shareholders and provides various means for them to exercise their rights[189]. - The annual general meeting provides a platform for shareholders to engage with the board and raise questions regarding their responsibilities[194]. - The board of directors is committed to maintaining ongoing dialogue with shareholders through various communication methods, including one-on-one meetings and factory visits[194]. - The company aims to enhance transparency by providing accurate and timely information through various reports and media releases[194]. Future Outlook - The company expressed confidence in pursuing stable growth despite uncertainties in the business environment for 2019[35]. - Future outlook remains positive, with expectations of sustained growth driven by new market strategies and product innovations[92]. - The company has set a revenue guidance for the next quarter, projecting an increase of 10% compared to the current quarter[92].