Financial Performance - In the first half of fiscal year 2020/21, total revenue decreased by 30.8% year-on-year to RMB 260.7 million (2019/20: RMB 376.7 million) [15] - Consolidated gross profit dropped by 32.1% year-on-year to RMB 163.8 million (2019/20: RMB 241.2 million) [15] - The overall gross profit margin decreased by 1.2 percentage points to 62.8% compared to the same period last year [15] - The Group transitioned from a profit of RMB 2.4 million in 2019/20 to a loss of RMB 29.8 million in 2020/21 [15] - Basic loss per share was RMB (4.22) cents, compared to earnings of RMB 0.34 cents per share in the previous year [17] - The consolidated loss attributable to owners of the Company was RMB 29.8 million [15] - The Group reported a consolidated loss attributable to owners of RMB 29,800,000, compared to a profit of RMB 2,400,000 in the previous year, with a basic loss per share of RMB 4.22 cents [29] - The group reported revenue of RMB 260,713,000 for the six months ended August 31, 2020, a decrease of 30.8% compared to RMB 376,724,000 in the same period of 2019 [92] - Gross profit for the same period was RMB 163,787,000, down 32.1% from RMB 241,191,000 in 2019 [92] - The group incurred a loss of RMB 29,890,000 for the period, compared to a profit of RMB 2,363,000 in the previous year [92] - Total comprehensive loss for the period amounted to RMB 37,783,000, a stark contrast to the total comprehensive income of RMB 22,599,000 in the previous year [100] Impact of COVID-19 - The retail markets in Mainland China and Hong Kong and Macau were severely impacted by the COVID-19 pandemic [21] - The Group's total revenue decreased by 30.8% year-on-year to RMB260,700,000 (2019/20: RMB376,700,000) due to the impact of the COVID-19 pandemic [23] - Same-store sales declined by 24.2% during the review period, a significant drop from a 3.7% increase in the previous year [49] - Sales in Hong Kong and Macau dropped by 74.6% year-on-year to RMB 5.1 million, down from RMB 20 million in the previous year [65] - The unemployment rate in Hong Kong reached 6.2% in Q2 2020, the highest level in over 15 years [65] Cost Management - Selling and distribution expenses decreased by 32.2% to RMB114,400,000, resulting in a ratio of selling and distribution expenses to total revenue of 43.9%, down 0.9 percentage points [22] - General and administrative expenses increased by 21.8% to RMB84,300,000, with these expenses representing 32.3% of total revenue, up 13.9 percentage points [27] - The Group implemented a 25% pay cut for all directors for six months starting from March 2020 to reduce daily expenses [47] Inventory and Cash Management - The Group's inventory balance decreased by 32.4% to RMB223,200,000, with finished goods inventory turnover increasing by 18 days to 396 days [35] - As of 31 August 2020, the Group's cash and bank balance was RMB563,900,000, up from RMB508,600,000 as of 29 February 2020, maintaining a quick ratio of 5.4 times [41] - The company’s cash and bank balances at 31 August 2020 totaled RMB 563,909,000, up from RMB 418,042,000 in 2019, showing a strong liquidity position [124] Strategic Focus - The Group aims to appeal to diversified target customer groups with distinctive product lines [14] - The Group plans to focus on developing certain own brands and invest more in athleisure footwear markets due to increasing consumer health consciousness [76] - The Group will enhance its online presence by investing more in social media marketing and emerging social e-commerce platforms [77] - The Group aims to open new stores in appropriate community malls to attract consumers back to offline shopping [77] - The Group believes that optimizing operational structures and enhancing brand value will help respond to future market changes [78] Workforce and Operations - The group has reduced its workforce to 1,541 employees as of August 31, 2020, down from 2,394 employees in February 2020 [86] - The production in the Shunde factory has halted and has been entirely outsourced, allowing the Group to focus on product development and design [76] Financial Position - The company's total assets decreased to RMB 1,079,091,000 as of August 31, 2020, down from RMB 1,105,663,000 as of February 29, 2020, reflecting a reduction of approximately 2.4% [103] - Current liabilities increased to RMB 155,170,000, compared to RMB 143,959,000 in the previous audited period, representing an increase of about 7.9% [107] - The company's inventories decreased to RMB 223,214,000 from RMB 273,093,000, showing a decline of approximately 18.3% [103] - The equity attributable to owners of the company decreased to RMB 923,921,000 from RMB 961,704,000, indicating a decline of about 3.9% [107] - The company reported a total equity of RMB 923,921,000 as of August 31, 2020 [110] Risk Management - The Group's liquidity risk management strategy includes maintaining sufficient cash generated from operating cash flow and having access to committed credit facilities [147] - The Group's financial risk exposure includes market risk (foreign currency and interest rate risk), liquidity risk, and credit risk, with no changes in risk management policies since February 29, 2020 [142][143]

Financial Performance - Revenue for the year ended 29 February 2020 was RMB 736.4 million, a decrease of 19.0% compared to RMB 908.8 million for the year ended 28 February 2019[5] - Consolidated loss attributable to owners of the company was RMB (30.5) million, compared to RMB (28.0) million in the previous year[5] - Basic losses per share were RMB (4.32) cents, an increase from RMB (3.97) cents in the prior year[5] - Total equity decreased to RMB 961.7 million, down 18.9% from RMB 1,186.2 million[5] - Net cash balances were RMB 508.6 million, a decline of 13.9% from RMB 590.6 million[5] - Net assets value per share was RMB 1.36, down 19.0% from RMB 1.68[5] - Consolidated gross profits fell by 19.9% year-on-year to RMB 456,500,000, with a slight decrease in overall gross profit margin by 0.7 percentage points to 62.0%[70] - Selling and distribution expenses dropped by 23.3% to RMB 335,200,000, while general and administrative expenses decreased by 4.8% to RMB 153,200,000[70] - Other income fell by 50.2% year-on-year to RMB 7.6 million (2018/19: RMB 15.2 million), primarily due to local government incentives[80] - The income tax expense for the year was approximately RMB 9.0 million (2018/19: RMB 13.9 million), representing a decrease of 34.9% year-on-year[90] - The group did not recommend declaring a final dividend for the year (2018/19: no final dividend per ordinary share and final special dividend of HK 35.0 cents) [90] Market Challenges - The financial year ended 29 February 2020 was challenging due to the Sino-US trade dispute and economic slowdown in Mainland China, leading to weakened consumer and investment sentiments[48] - Hong Kong experienced negative economic growth for the third and fourth quarters of 2019, marking the first annual drop since 2009[48] - The COVID-19 pandemic caused severe impacts on the retail sector in Hong Kong and China, particularly affecting physical store sales due to a drastic drop in customer traffic[48] - The outbreak of COVID-19 led to a significant decline in retail and tourism sectors, marking an extremely challenging period for the company[48] - The group faced challenges due to the Sino-US trade conflicts and the COVID-19 outbreak, leading to negative year-on-year growth in total sales and same-store sales [74] Strategic Initiatives - The company is focusing on market expansion and new product development strategies[5] - Future outlook includes potential mergers and acquisitions to enhance market position[5] - The Group plans to focus on e-commerce development, aiming to make it a major business unit within the next two to three years[52] - The medium-to-long-term goal for e-commerce includes expanding into lower-tier cities in Mainland China, which have a population of approximately 1 billion[53] - The Group aims to utilize digital tools for data collection and analysis to improve management efficiency across various channels[60] - The Group plans to actively develop e-commerce channels to merge with offline operations to reach young customers and explore new markets[146] - The Group will strengthen cooperation with e-commerce platforms and focus on developing low-tier markets as a new growth engine[157] Corporate Social Responsibility - Le Saunda was awarded "2019 Top 100 Guangdong E-commerce Enterprises," recognizing its outstanding social influence and growth potential[32] - The company participated in the "Happiness-at-Work Promotion Scheme 2020" and was recognized as a "Happy Company," reflecting its commitment to employee satisfaction[40] - The company continued to foster corporate social responsibility through various charitable activities and environmental initiatives[35] - The Group received the "10 Years Plus Caring Company Logo" and "Happy Company" award, demonstrating its commitment to corporate social responsibility[154] Operational Adjustments - The Group will cease all production at its Shunde factory and shift to outsourcing production to enhance product development and design[60] - Cost reduction and operational efficiency improvements are planned, including reducing the number of stores in certain regions and not opening new stores in the near future[60] - The Group plans to further reduce the number of physical stores and focus on improving service and operational efficiency[138] - The Group aims to improve sales performance by introducing new experiential shopping services in physical stores[156] Management and Governance - The Company is led by a board of directors with extensive experience in accounting, financial management, and auditing, including members with over 30 years of experience in their respective fields[185][187] - The chairman of the board, James Ngai, is a certified public accountant with over 30 years of experience in accounting, auditing, and taxation matters[185] - The Company aims to enhance corporate governance practices to align with statutory and professional standards[196] - The Board's leadership is focused on acting in good faith in the best interests of the Company and its shareholders[197] - The Company has established three Board committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee different areas of the Company's affairs[198]

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].