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 ...

Financial Performance - Revenue for the year ended February 28, 2023, was RMB 413.2 million, a decrease of 27.4% compared to RMB 569.0 million for the previous year[5]. - The consolidated loss attributable to owners of the company was RMB (50.3) million, compared to a profit of RMB 3.0 million in the previous year[5]. - Basic losses per share were RMB (7.12) cents, down from earnings of RMB 0.42 cents per share in the previous year[5]. - Total equity decreased by 5.9% to RMB 663.6 million from RMB 705.3 million[5]. - Net cash balances fell by 12.2% to RMB 371.6 million, down from RMB 422.4 million[5]. - Net asset value per share decreased to RMB 0.94, a decline of 5.9% from RMB 1.00[5]. - Net cash per share was RMB 0.53, down 12.2% from RMB 0.60[5]. - Consolidated gross profit decreased by 24.8% year-on-year to RMB 269,200,000, with a gross profit margin of 65.2%, an increase of 2.3 percentage points compared to the previous year[71][76]. - Selling and distribution expenses decreased by 7.3% year-on-year to RMB 240,200,000, but the ratio of these expenses to total revenue increased by 12.5 percentage points to 58.1%[77]. - General and administrative expenses decreased by 6.9% to RMB 86,900,000, but the ratio to total revenue increased by 4.6 percentage points to 21.0%[80]. - The Group recorded a net loss attributable to equity holders of RMB 50,300,000 (2021/22: profit of RMB 3,000,000), with basic loss per share at RMB 7.12 (2021/22: profit of RMB 0.42)[85]. - The Group's annual retail revenue decreased by 27.4% year-on-year to RMB 413,200,000 (2021/22: RMB 569,000,000) with same store sales declining by 27.7%[99]. - Retail sales in Mainland China decreased by 26.8% to RMB 410,400,000, compared to RMB 560,700,000 in the previous year[109]. Operational Changes - The Group centralized inventory management and closed small local warehouses to improve cost-efficiency in warehouse logistics[43]. - The Group closed low-performing stores and prudently opened new ones to enhance sales channel efficiency and improve cost structure[43]. - The Group optimized its supply chain by centralizing warehouse management and closing local small warehouses to improve inventory allocation speed[114]. - The Group negotiated with property owners to limit lease periods to two years or less, enhancing flexibility in its store network[114]. - The Group is expanding its customer base by planning to open a store in Macau, in addition to its existing operations in Hong Kong[52]. - The Group's retail network comprised 328 stores at the end of the year, with a net decrease of 56 self-owned stores and 5 franchised stores[103]. Marketing and E-commerce Strategy - The Group launched its official e-shop in Hong Kong on November 2, 2022, extending thousands of products and quality services from offline to online[33]. - The Group is actively developing an omni-channel operation strategy, with the "Omni-Channel Middle Platform Project" expected to be implemented by the end of 2023[46]. - The Group launched a series of new promotion materials on social e-commerce platforms in the first quarter of 2023 to enhance brand influence[46]. - The Group's "Light Chaser" theme was launched on the online channel, offering various series of products to meet the needs of targeted customer groups[36]. - The Group continues to invest in social e-commerce platforms and launched a marketing campaign themed "Light Chaser" to enhance brand influence[120]. - The Group aims to enhance brand power through marketing strategies on social e-commerce platforms such as Douyin, Xiaohongshu, and Weibo, aiming to broaden the target customer base and increase market share[130]. - The Group's overall revenue of the e-commerce business increased by 1.4% year-on-year despite weak domestic consumer sentiment and strict lockdown measures[120]. Employee and Corporate Governance - The Group was honored as a "Happy Company" for more than 5 years consecutively, reflecting its commitment to creating a pleasant working environment[35]. - The Group has implemented a comprehensive occupational health management framework to protect employees' physical and mental health[61]. - Total employee benefit expenses for the twelve months ended 28 February 2023 were RMB 135,900,000, down from RMB 147,900,000 in the previous year[150][151]. - The group had a full-time staff force of 1,120 employees as of 28 February 2023, a decrease from 1,342 employees a year earlier[150][151]. - The Group's board is committed to maintaining high standards of corporate governance, focusing on independence, accountability, and transparency to protect shareholder interests[175]. - The Group emphasizes a corporate culture based on teamwork, respect, ethics, and innovation, guided by core values of Supreme Quality, Innovative Thinking, and Mutual Respect[182]. - The Board believes that adherence to its vision and mission, along with sustainable corporate strategies, will enable the Group to cope with external challenges and achieve stable development[65][66]. Future Outlook - The Group aims to return sales to pre-pandemic levels in the medium to long term, with ongoing efforts to enhance operational efficiency and reduce costs through digital tools[138]. - The Chinese economy is expected to gradually improve post-pandemic, with support for domestic demand and stabilization of prices[127]. - The Group believes that the Chinese economy will gradually improve post-pandemic, with enhanced domestic productivity and consumer spending, leading to growth in both physical and online sales[128]. - The Group plans to implement an "Omni-Channel Middle Platform Project" by the end of 2023 to improve marketing efficiency and customer interaction[47].

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）╱ ...

Financial Performance - In the first half of fiscal year 2022/23, total revenue decreased by 24.5% year-on-year to RMB211,100,000, compared to RMB279,500,000 in 2021/22[21] - Consolidated gross profit decreased by 18.5% year-on-year to RMB137,000,000, down from RMB168,000,000 in the previous year[21] - The consolidated loss attributable to owners of the Company was RMB23,400,000, compared to a loss of RMB2,200,000 in 2021/22[21] - Basic loss per share was RMB(3.31) cents, compared to RMB(0.32) cents in the previous year[24] - Total revenue decreased by 24.5% year-on-year to RMB 211,100,000 (2021/22: RMB 279,500,000) due to the impact of COVID-19 lockdown measures[30] - Consolidated gross profit decreased by 18.5% to RMB 137,000,000 (2021/22: RMB 168,000,000), with a gross profit margin increase of 4.8 percentage points to 64.9%[30] - The consolidated loss attributable to owners of the Company was RMB 23,400,000 (2021/22: loss of RMB 2,200,000), with a basic loss per share of RMB 3.31 cents (2021/22: loss of RMB 0.32 cent)[34] - Operating loss increased to RMB 25,228,000 from RMB 1,192,000, indicating a significant deterioration in operational performance[102] - Loss for the period attributable to owners of the Company was RMB 23,357,000, compared to RMB 2,230,000 in the previous year, marking an increase of over 950%[102] - Total comprehensive loss for the period was RMB 10,921,000, compared to RMB 2,730,000 in 2021, representing a substantial increase[109] Expenses and Cost Management - Selling and distribution expenses decreased by 6.3% year-on-year to RMB 115,800,000 (2021/22: RMB 123,600,000), but the ratio to total revenue increased by 10.7 percentage points to 54.9%[30] - General and administrative expenses decreased by 11.9% to RMB 41,900,000 (2021/22: RMB 47,600,000), with the ratio to total revenue increasing by 2.9 percentage points to 19.9%[34] - Total employee benefit expenses for the six months ended August 31, 2022, amounted to RMB 67,900,000, a decrease from RMB 72,300,000 in the previous year[95] - Selling and distribution expenses were RMB 115,849,000, slightly reduced from RMB 123,637,000, indicating cost management efforts[102] Inventory and Cash Management - As of 31 August 2022, the Group's inventory balance was RMB 191,900,000, an increase of 7.6% compared to RMB 178,400,000 from the previous year[36] - Inventory turnover of finished goods increased by 101 days to 389 days (31 August 2021: 288 days) due to significant revenue decline[38] - Cash and bank balance amounted to RMB 421,700,000 as of 31 August 2022 (28 February 2022: RMB 442,600,000), with a quick ratio of 3.4 times[42] - The Group had no outstanding bank loan as of the end of the financial period, having repaid a bank loan of RMB 20,200,000 during the period[42] - Cash and cash equivalents at 31 August 2022 stood at RMB 401,153,000, down from RMB 434,156,000 in 2021, representing a decrease of approximately 7.6%[143] - The total net decrease in cash and cash equivalents was RMB (25,092,000), a substantial improvement from RMB (307,998,000) in the previous year, indicating better cash management[143] Market and Operational Impact - Operations were significantly impacted by strict COVID-19 precautionary measures, leading to temporary store closures in some areas[28] - The Group's retail revenue decreased by 24.5% year-on-year to RMB 211,100,000, while same-store sales declined by 26.5%[50] - The total number of physical stores in Mainland China and Hong Kong was 381, representing a net reduction of 8 stores compared to the previous year[51] - The Group's sales in Mainland China dropped by 23.6% year-on-year to RMB 210,400,000, with same-store sales also declining by 26.5%[63] - The Group organized promotional events featuring celebrities to boost sales as lockdown measures were gradually lifted[63] Strategic Initiatives - The Group aims to enhance its market presence through new product lines and expansion strategies[20] - The Group plans to launch the "Omni-Channel Middle Platform Project" to enhance the integration of online and offline channels[80] - The Group will continue to focus on the development of the e-commerce market, particularly on high-traffic platforms like T-Mall, Douyin, Weibo, and Xiaohongshu, to enhance its social e-commerce business[84] - The Group aims to enhance brand value and provide a unique consumption experience amid the evolving digital landscape[80] - The Group is preparing for market recovery with the resumption of normal traveler clearance between China, Hong Kong, and Macau[86] Financial Position - Total assets decreased to RMB 882,883,000 from RMB 888,086,000, indicating a slight decline in asset base[112] - Total equity as of 31 August 2022 was RMB 694,197,000, down from RMB 705,339,000, reflecting a decrease in shareholder equity[115] - The company had retained earnings of RMB 526,633,000, reflecting the accumulated profits over time[118] - The company maintained a liquidity risk management strategy by ensuring sufficient cash flow generated from operations and maintaining available credit facilities[165] Employee and Workforce Changes - The Group's workforce decreased to 1,296 employees as of August 31, 2022, from 1,342 employees as of February 28, 2022[100] - The number of self-owned stores decreased by 6, while franchised stores decreased by 2 during the review period[51]

Financial Performance - Revenue for the year ended February 28, 2022, was RMB 594.2 million, a decrease of 4.2% compared to RMB 569.0 million for the previous year[9]. - Consolidated profit attributable to owners of the company dropped to RMB 3.0 million, a significant decline of 97.2% from RMB 106.2 million in the prior year[9]. - Basic earnings per share fell to RMB 0.42, down 97.2% from RMB 15.04 in the previous year[9]. - Total equity decreased to RMB 705.3 million, representing a 30.0% decline from RMB 1,007.9 million[10]. - Net cash balances were reported at RMB 442.6 million, a decrease of 41.4% from RMB 754.9 million[10]. - Net assets value per share dropped to RMB 1.00, down 30.1% from RMB 1.43[10]. - Net cash per share decreased to RMB 0.60, a decline of 43.9% from RMB 1.07[10]. - For the financial year 2021/22, the total revenue decreased by 4.2% year-on-year to RMB 569,000,000[49]. - The consolidated gross profit increased by 0.7% year-on-year to RMB 357,900,000, with a gross profit margin of 62.9%, up 3.1 percentage points from the previous year[49][52]. - Selling and distribution expenses increased by 8.1% year-on-year to RMB 259,200,000, with the ratio to total revenue rising to 45.6%[54]. - General and administrative expenses decreased by 36.6% to RMB 93,300,000, resulting in a reduction of 8.4 percentage points in the expense ratio to 16.4%[58]. - Other income decreased by 47.6% year-on-year to RMB 4,600,000, primarily due to the absence of one-off incentives from local governments[60]. - Income tax expense decreased by 66.2% year-on-year to approximately RMB 20,900,000, attributed to provisions related to relocation compensation[65][68]. Inventory and Cash Management - As of February 28, 2022, the Group's inventory balance was RMB 186,300,000, representing an increase of 22.1% compared to the previous year[66][69]. - As of February 28, 2022, the finished goods inventory amounted to RMB 186.3 million, representing a year-on-year increase of 22.1% from RMB 152.6 million[71]. - The proportion of inventory aged one year or less increased to 71.4% as of February 28, 2022, compared to 47.2% on February 28, 2021[74]. - The inventory turnover for finished goods decreased by 24 days to 293 days for the year ended February 28, 2022, down from 317 days in 2021[74]. - The Group's cash and bank balances decreased by 41.4% year-on-year to RMB 442.6 million as of February 28, 2022, down from RMB 754.9 million[75]. - The quick ratio at the end of the financial year was 3.8 times, a decrease from 7.2 times on February 28, 2021[75]. - The Group borrowed a bank loan of RMB 40.4 million during the year, with a remaining balance of RMB 20.2 million as of February 28, 2022[75]. - The Group maintains sufficient cash flow despite the retail market not returning to pre-pandemic levels, with adequate financial resources for future development needs[79]. - The Group has adopted a prudent inventory management strategy, actively clearing off-season items to reduce their proportion in ending inventory[74]. - The Group's financial position remains strong, with access to banking facilities for working capital if necessary[75]. Retail Performance and Strategy - Annual retail revenue decreased by 4.2% year-on-year to RMB 569,000,000, compared to RMB 594,200,000 in the previous year[86]. - Same store sales declined by 0.2%, an improvement from the previous year's decline of 10.5%[86]. - Retail sales in Mainland China decreased by 3.9% to RMB 560,700,000, down from RMB 583,600,000 in the previous year[94]. - The Group maintained a retail network of 389 stores in Mainland China, with a net increase of 6 self-owned stores and a net decrease of 6 franchise stores[89]. - As of February 28, 2022, there were 297 core brand le saunda stores, unchanged from the previous year, while LINEA ROSA stores decreased by 6 to 34[89]. - The retail environment remains challenging due to pandemic-related restrictions, impacting consumer spending and store performance[94]. - The Group is enhancing online sales and customer interaction while reviewing the physical store network to improve efficiency and same-store sales growth[95]. - The Group's proactive measures included expanding online sales channels through livestream shopping and upgrading the membership system to WeChat Mini Program[86]. - Revenue from the e-commerce business decreased by 4.8% year-on-year due to the impact of new infections and natural disasters[101]. - Sales in Hong Kong and Macau decreased by 21.8% year-on-year to RMB 8,300,000, down from RMB 10,600,000 in the previous year[106]. Marketing and Brand Development - The Group strategically expanded its store network in promising areas while closing inefficient ones to enhance efficiency and focus on brand management and product development[36]. - The Group adopted a live-streaming sales model as part of its marketing strategy to enhance brand influence and encourage offline consumption[38]. - The Group aims to maintain its leading position in mid-to-high-end women's footwear by capitalizing on market rebounds as retail activities in Mainland China pick up[37]. - The Group is focused on integrating online and offline operations to adapt to the evolving retail landscape shaped by the pandemic[38]. - The Group continues to explore new online channels to meet the shopping habits of the new generation[38]. - The Group emphasizes the importance of high-quality services in its physical stores to enhance customer experience[42]. - The Group is committed to optimizing operational efficiency to meet consumer needs and improve shopping experiences[44]. - The Group aims to enhance its online and offline channel integration and optimize the supply chain to ensure stable online supply[105]. - The Group plans to focus on social e-commerce and collaborate with internet celebrities to promote products and increase brand awareness[112]. - The Group will enhance membership services through the VIP Mini Program to increase customer loyalty and improve interaction[112]. - The Group expects profitability to improve in the coming year due to a gradually improving marketing environment and accelerated turnover of goods[120]. Corporate Governance and Management - The Company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee various affairs[160]. - The Chief Executive Officer position has been vacant since October 2019, with responsibilities currently handled by other Executive Directors[153]. - The Company has complied with the Corporate Governance Code, except for the separation of the roles of Chairman and Chief Executive Officer[153]. - The Group is committed to enhancing corporate governance practices to align with statutory and professional standards[154]. - The Board comprises independent non-executive directors with extensive backgrounds in finance and management, enhancing corporate governance[144][145]. - The Board will continue to review and enhance governance practices in line with business growth[157]. - Independent Non-Executive Directors represent not less than one-third of the Board, ensuring checks and balances for safeguarding shareholder interests[170]. - The Company ensures that all Directors have the required character, integrity, and familiarity with the Group's business and culture[169]. - The Board is responsible for overall strategies, policies, and monitoring the Group's financial and operational performance[176]. - Each Director is entitled to seek independent professional advice at the Company's expense under appropriate circumstances[175]. - The Company has arranged directors' and officers' liability insurance to cover costs and liabilities arising from corporate activities[194].

Revenue and Profitability - In the first half of fiscal year 2021/22, total revenue increased by 7.2% year-on-year to RMB 279.5 million (2020/21: RMB 260.7 million) [18] - Consolidated gross profit rose by 2.6% year-on-year to RMB 168 million (2020/21: RMB 163.8 million) [18] - The overall gross profit margin was 60.1%, a decrease of 2.7 percentage points compared to the same period last year [18] - The consolidated loss attributable to owners of the Company was RMB 2.2 million, significantly improved from a loss of RMB 29.8 million in the previous year [18] - Basic loss per share improved to RMB (0.32) from RMB (4.22) year-on-year [21] - The Group's total revenue increased by 7.2% year-on-year to RMB 279,500,000 (2020/21: RMB 260,700,000) due to gradual improvement in retail sales per store in China [28] - Consolidated gross profit rose by 2.6% to RMB 168,000,000 (2020/21: RMB 163,800,000), with a gross margin decrease of 2.7 percentage points to 60.1% [28] - The Group's retail revenue increased by 7.2% year-on-year to RMB 279,500,000 for the period, compared to RMB 260,700,000 in the previous year [51] - Same-store sales rose by 14.2%, recovering from a decline of 24.2% in the previous year [51] Expenses and Cost Management - Selling and distribution expenses increased by 8.0% year-on-year to RMB 123,600,000 (2020/21: RMB 114,400,000), with the ratio to total revenue rising by 0.3 percentage points to 44.2% [28] - General and administrative expenses decreased by 43.5% to RMB 47,600,000 (2020/21: RMB 84,300,000), representing a reduction in percentage of total revenue by 15.3 percentage points to 17.0% [30] - Total employee benefit expenses decreased to RMB 72,300,000 from RMB 107,100,000, reflecting a reduction in operational costs [95] Inventory and Cash Management - As of August 31, 2021, the Group's inventory balance was RMB 178,400,000, a decrease of 20.1% from RMB 223,200,000 the previous year, with finished goods inventory turnover decreasing by 108 days to 288 days [40] - 65% of the Group's finished goods inventory aged less than one year as of August 31, 2021, compared to 54% the previous year [43] - As of August 31, 2021, the Group's cash and bank balance amounted to RMB 504,900,000, down from RMB 754,900,000 as of February 28, 2021 [47] - Current assets decreased to RMB 769,859,000 from RMB 1,005,755,000, representing a decline of approximately 23.4% [110] - Cash and bank balances significantly decreased to RMB 504,920,000 from RMB 754,882,000, a reduction of about 33.0% [110] Market and Operational Strategy - The Group maintained a substantially similar year-on-year store number, contributing to improved single retail store sales in the PRC [26] - The Group's major proprietary brands include le saunda, le saunda MEN, LINEA ROSA, PITTI DONNA, and CNE, targeting diverse customer groups [17] - The management remains focused on enhancing retail performance and expanding brand presence in the market [26] - The Group plans to consider further downsizing its operations in Hong Kong and Macau due to the lack of recovery signs in the retail market [76] - The Group aims to enhance customer experience by strengthening membership services through VIP mini-programs [82] - The Group will focus on social commerce platforms like Douyin, Taobao Live, Xiaohongshu, and Weibo to promote and sell products [83] - The Group is accelerating the integration of online and offline channels to improve customer access to products [82] - The Group's strategy includes repositioning as a solely brand operator, focusing on product design and brand management [78] Financial Position and Liabilities - The Group had a gearing ratio of 5.8% as of August 31, 2021, compared to nil as of February 28, 2021 [47] - The company’s total liabilities as of August 31, 2021, included trade and other payables of RMB 100,334,000 and lease liabilities of RMB 37,821,000 [163] - The company’s financial liabilities due within one year totaled RMB 161,281,000 as of August 31, 2021 [163] - Total liabilities as of August 31, 2021, amounted to RMB 218,861,000, compared to RMB 147,131,000 as of February 28, 2021, indicating an increase of approximately 49% [184][193] Loss and Comprehensive Loss - The company reported a loss for the period of RMB (2,482,000), a significant improvement compared to a loss of RMB (29,890,000) in the same period last year, reflecting a reduction of approximately 91.7% [106] - Total comprehensive loss for the period was RMB (2,730,000), down from RMB (37,783,000) year-over-year, indicating a decrease of about 92.8% [106] - The total comprehensive loss for the period ended 31 August 2021 was RMB (2,730,000) [116] Economic and Market Conditions - Retail sales of consumer goods in China grew by 23% year-on-year for the first six months of 2021, with a two-year average growth rate of 4.4% [65] - Hong Kong's real GDP growth was 8.0% and 7.6% in the first and second quarters of 2021, but the retail market remains under pressure due to reduced visitor numbers [76] - The Group anticipates that the pandemic will be under control with the popularization of vaccination, allowing for improved market conditions [82]

Financial Performance - Revenue for the year ended 28 February 2021 was RMB 594.2 million, a decrease of 19.3% compared to RMB 736.4 million for the year ended 29 February 2020[10] - Consolidated profit attributable to owners of the company was RMB 106.2 million, down from a profit of RMB 30.5 million in the previous year[10] - Basic earnings per share decreased to RMB 15.04 cents, a decline of RMB 4.32 cents compared to the previous year[10] - Gross profit fell by 22.2% to RMB 355.3 million, with a gross profit margin of 59.8%, a decrease of 2.2 percentage points compared to the prior year[85] - The Group's total revenue for the financial year 2020/21 decreased by 19.3% year-on-year to RMB594,200,000, down from RMB736,400,000 in 2019/20[77] - The profit attributable to owners of the Company for the year amounted to RMB106,200,000, a significant recovery from a loss of RMB30,500,000 in the previous year[70] Cash and Equity - Total equity increased to RMB 1,007.9 million, reflecting a growth of 4.8% from RMB 961.7 million[10] - Net cash balances rose significantly to RMB 754.9 million, an increase of 48.4% from RMB 508.6 million[10] - Net cash per share increased to RMB 1.07, representing a 48.6% rise from RMB 0.72[10] - Cash and bank balances increased by 48.4% year-on-year to RMB 754,900,000, with a quick ratio of 7.2 times[108] Operational Efficiency - Stock turnover days improved to 317 days, down from 369 days[10] - Quick ratio increased to 7.2 times, compared to 5.4 times in the previous year[10] - Selling and distribution expenses were reduced by 28.5% year-on-year to RMB 239.8 million, improving the ratio of these expenses to total revenue by 5.1 percentage points to 40.4%[86] - General and administrative expenses decreased by 3.9% to RMB 147.3 million, despite a one-off employee compensation expense of approximately RMB 37.4 million due to factory closure[91] - The Group's operational efficiency has significantly improved due to the integration and optimization of its physical store network and operational structure[63] Impact of COVID-19 - The financial year ended on February 28, 2021, was significantly impacted by the COVID-19 pandemic, leading to a recession in the global economy[56] - The Group implemented strategic adjustments, including ceasing production in its Shunde factory and shifting to external procurement, to mitigate the pandemic's impact[57] - The Group maintained its market share in the mid-to-high-end women's footwear segment through effective marketing strategies as economic activities began to recover in China[57] Product and Market Strategy - The company is focused on expanding its retail business and enhancing product offerings to drive future growth[10] - The Group has actively expanded e-commerce channels to social platforms to attract a younger customer base, launching the le saunda Y collection featuring trendy styles[62] - The Group plans to open new physical stores in various locations as the domestic economy recovers and consumption-stimulating measures are anticipated[63] - The Group's strategy includes focusing on product quality and leveraging its market knowledge to provide fashionable products to a diverse customer base[71] - The Group is focusing on enhancing customer engagement through a balanced development of online and offline channels[136] Corporate Social Responsibility - The Group was recognized as a "Top 100 Guangdong E-commerce Enterprises" at the 2021 New Year Meeting, highlighting its social influence and growth potential[43] - The Group was awarded the "15 Years Plus Caring Company Logo" for its commitment to corporate social responsibility through charity and environmental activities[43] - The Group continued to participate in the "No Fakes Pledge" Scheme, ensuring the sale of genuine goods and protecting intellectual property rights[46] - Le Saunda was recognized as a "Happy Company" for the fifth consecutive year, reflecting its commitment to employee satisfaction and a positive work environment[50] Dividends - The final dividend declared was HK 15.0 per ordinary share and a special dividend of HK 35.0 per ordinary share, marking a return to dividend payments after the previous year had none[97] - The board has recommended a final dividend of HK 15.0 cents and a final special dividend of HK 35.0 cents per ordinary share for the year ended February 28, 2021[172] - The interim special dividend declared for the six months ended August 31, 2020, was HK 5.0 cents per ordinary share[173] Workforce and Management - The total employee benefit expenses for the twelve months ended February 28, 2021, amounted to RMB 196,700,000, a decrease from RMB 247,500,000 in the previous year[174] - The group had a workforce of 1,403 employees as of February 28, 2021, down from 2,394 employees a year earlier[174] - The company emphasizes leadership and management strategies through its board structure, which includes various committees for remuneration and nominations[187] - The independent non-executive directors bring a wealth of knowledge from various industries, which can facilitate strategic partnerships and market opportunities[199]