Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 40,206 thousand, representing an increase of 79.0% compared to HKD 22,468 thousand for the same period in 2023[3] - Gross profit for the same period was HKD 5,308 thousand, up from HKD 2,210 thousand, indicating a significant improvement in profitability[3] - The net loss for the six months ended September 30, 2024, was HKD 10,194 thousand, a reduction from a net loss of HKD 14,665 thousand in the previous year, reflecting a 30.5% improvement[9] - Basic and diluted loss per share decreased to HKD 1.2 from HKD 1.7, showing a positive trend in earnings per share[10] - The company reported a loss attributable to owners of HKD 10,194,000 for the six months ended September 30, 2024, compared to a loss of HKD 14,665,000 in the same period of 2023[57] - The group recorded a loss of approximately HKD 10,200,000 for the six months ended September 30, 2024, compared to a loss of approximately HKD 14,700,000 for the same period in 2023[97] Revenue Breakdown - The sales of bridesmaid dresses reached HKD 25,758,000, up 144.5% from HKD 10,514,000 in the previous year[39] - Revenue from the United States market was HKD 26,466,000, a substantial increase of 178.5% compared to HKD 9,490,000 in the same period last year[40] - Revenue from major customers included HKD 18,343,000 from Customer A, which was not applicable in the previous year[48] - Revenue from the United States accounted for approximately 65.9% of total revenue for the six months ended September 30, 2024, up from 42.2% for the same period in 2023[80] Cost Management - The company reported a decrease in administrative expenses to HKD 9,601 thousand from HKD 10,905 thousand, suggesting improved cost control measures[3] - Selling and distribution expenses rose from approximately HKD 2,700,000 to approximately HKD 3,000,000, an increase of about 11.1%[92] - Administrative expenses decreased from approximately HKD 10,900,000 to approximately HKD 9,600,000, a reduction of about 11.9%[93] - Financing costs increased from approximately HKD 460,000 to approximately HKD 850,000, an increase of about 84.8%[95] Assets and Liabilities - Total assets as of September 30, 2024, were HKD 58,598 thousand, down from HKD 69,189 thousand as of March 31, 2024[16] - Current liabilities increased to HKD 57,392 thousand from HKD 58,658 thousand, indicating a slight improvement in liquidity management[16] - Trade receivables from third parties amounted to HKD 7,031,000 as of September 30, 2024, compared to HKD 4,618,000 as of March 31, 2024[60] - As of September 30, 2024, trade payables amounted to HKD 6,948,000, an increase from HKD 3,817,000 as of March 31, 2024[68] - The company had total borrowings of HKD 14,361,000 as of September 30, 2024, down from HKD 16,599,000 as of March 31, 2024[70] - The company’s bank overdraft was HKD 5,782,000 as of September 30, 2024, slightly down from HKD 5,876,000 as of March 31, 2024[72] Operational Focus - The company continues to focus on its core business of garment manufacturing and trading, with ongoing efforts to enhance operational efficiency[31] - The company has established long-term relationships with major bridesmaid dress customers, becoming their exclusive supplier[79] - The company continues to face challenges due to ongoing U.S.-China trade disputes and global economic uncertainties[80] Shareholder Information - The company did not recommend an interim dividend for the six months ended September 30, 2024, consistent with the previous year[55] - The company completed a placement of 168,486,000 new shares at a price of HKD 0.0315 per share, raising approximately HKD 4,900,000 for general working capital and repayment of existing loans[110] - The board proposed a share consolidation, merging every 20 shares of HKD 0.01 into one share of HKD 0.20, which was approved by shareholders on October 29, 2024[112] Employee and Governance - The total employee cost for the six months ended September 30, 2024, was approximately HKD 13,600,000, an increase from HKD 12,800,000 for the same period in 2023[115] - The total number of employees decreased from 227 to 216 as of September 30, 2024[115] - The board of directors consists of five executive directors and three independent non-executive directors[129] - The company maintained compliance with the corporate governance code, except for the separation of the roles of Chairman and CEO[121] Miscellaneous - The company has no significant investments or capital commitments as of September 30, 2024[107][116] - There were no significant contingent liabilities as of September 30, 2024[117] - The interim financial results announcement has been published on the company's website and the Hong Kong Stock Exchange website[128] - The interim report for the six months ending September 30, 2024, will be available on the company's and the Hong Kong Stock Exchange's websites at an appropriate time[128] - The group has no foreign currency hedging policy but monitors foreign exchange risks and may consider hedging significant risks as needed[105] - The group sold a wholly-owned subsidiary for a consideration of HKD 5,500,000 during the six months ended September 30, 2024[106]

Financial Performance - KNT Holdings Limited reported a revenue of HKD 1.2 billion for the fiscal year ending March 31, 2024, representing a 15% increase compared to the previous year[14]. - The company achieved a net profit of HKD 250 million, which is a 20% increase year-over-year, indicating strong operational efficiency[14]. - Future guidance estimates revenue growth of 10-15% for the next fiscal year, driven by new product launches and market expansion efforts[14]. - The company recorded a loss of approximately HKD 24,400,000 for the year ended March 31, 2024, an improvement from a loss of approximately HKD 31,300,000 for the year ended March 31, 2023[138]. - Revenue for the year ended March 31, 2024, decreased by approximately HKD 17,400,000 or 24.3% to approximately HKD 54,300,000 from HKD 71,700,000 for the year ended March 31, 2023[125]. - The gross profit margin increased from 12.3% for the fiscal year ending March 31, 2023, to 13.8% for the fiscal year ending March 31, 2024[109]. - Administrative expenses decreased by approximately HKD 4,600,000 or 17.0% to approximately HKD 22,500,000 for the year ended March 31, 2024, primarily due to reduced employee costs[142]. - The company's bank balance and cash as of March 31, 2024, was approximately HKD 4,400,000, with bank overdrafts of approximately HKD 5,900,000[139]. - The debt-to-equity ratio increased to 48.3% as of March 31, 2024, compared to 21.0% as of March 31, 2023, due to increased borrowings and a decrease in total equity[140]. Market Expansion and Strategy - KNT Holdings plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[14]. - The company is investing HKD 100 million in new product development, focusing on innovative technologies to enhance customer experience[14]. - KNT Holdings has initiated a strategic partnership with a leading tech firm to enhance its digital capabilities, aiming for a 40% improvement in operational efficiency[14]. - The company has completed the acquisition of a local competitor, which is expected to contribute an additional HKD 300 million in annual revenue[14]. - The company is actively seeking new business opportunities to diversify its revenue sources and mitigate risks due to the unprecedented business environment[104]. - The company is negotiating with a well-known discount retailer in China to develop procurement and distribution business, aiming to expand its customer base in China[112]. Corporate Governance - The company is committed to high ethical standards in governance to enhance long-term shareholder value[33]. - The board consists of a balanced mix of executive and independent non-executive directors, ensuring strong independent judgment[40]. - The chairman and CEO roles are held by the same individual, which the board believes provides effective leadership for strategic planning and business development[49][56]. - The board held a total of 10 meetings during the reporting period, with all executive directors attending all meetings[55]. - The company has adopted the corporate governance code as a basis for its governance practices, ensuring compliance with applicable rules[42]. - There were no reported incidents of employees violating the code of conduct during the reporting period[38]. - The board is responsible for setting strategies and overseeing their implementation, ensuring effective internal controls and risk management systems[58]. - Independent non-executive directors contribute valuable business experience and ensure high standards of regulatory reporting[59]. - The board retains decision-making authority on significant matters, including policies, strategies, and major transactions[60]. - The board has established a mechanism to assess its independence, ensuring strong independent elements for effective shareholder protection[61]. - All non-executive directors are appointed for a specific term of three years and must seek re-election at the annual general meeting[62]. - The audit committee consists of four independent non-executive directors, with all members attending 100% of meetings held[74][84]. - The remuneration committee held three meetings during the reporting period to review the company's remuneration policies and structures[83]. - The company has a remuneration policy based on skills, knowledge, responsibilities, and the depth of involvement in company affairs[80]. - Directors are required to disclose details of other positions held, ensuring transparency[64]. - The company provides appropriate insurance coverage for directors and senior management against legal actions arising from corporate activities[68]. - New directors receive a comprehensive orientation to understand the company's operations and their responsibilities under listing rules[68]. Sustainability and ESG Initiatives - KNT Holdings is committed to sustainability, with plans to reduce carbon emissions by 30% over the next five years through various initiatives[14]. - The company has implemented a zero-tolerance policy against bribery, fraud, and money laundering, ensuring strict adherence to ethical standards and legal regulations[172]. - The company has not reported any incidents of non-compliance with integrity-related laws and regulations during the reporting period, indicating a commitment to reducing corruption risks[175]. - The company is actively monitoring and evaluating its ESG initiatives, focusing on product quality and customer service as key operational priorities[176]. - The company aims to increase the use of biodegradable materials and minimize waste, aligning with market trends towards sustainability[177]. - The company has established an ESG governance framework to achieve sustainable development and engage stakeholders in identifying important ESG issues[177]. - The company has committed to complying with all relevant environmental laws and regulations, with no reported incidents of non-compliance during the reporting period[183]. - The company promotes a green office concept and encourages employee participation in environmental protection and energy conservation initiatives[183]. - The company has established an ESG committee to oversee and implement sustainable development measures, with meetings held every six months to ensure proper execution[192]. - The company is committed to monitoring emissions levels closely to minimize environmental impact and reduce its carbon footprint[187]. - The company aims to gradually reduce emission density by 2030 or earlier, with ongoing planning for emission reduction measures[199]. - The total amount of non-hazardous waste generated during the reporting period was 1.4 tons, an increase from 1.3 tons in the previous year[200]. - The density of non-hazardous waste per million HKD revenue increased to 0.025 from 0.018 year-on-year[200]. Challenges and Risks - The ongoing U.S.-China trade disputes and the impact of COVID-19 have created a challenging business environment for the company[104]. - Cost control measures have been implemented to cope with prolonged business setbacks[105]. - The company aims to leverage its strong track record and experienced management team to enhance long-term growth potential and protect shareholder interests[105]. - The company is negotiating with a well-known discount retailer in China to develop procurement and distribution business, aiming to expand its customer base and revenue in the Chinese market[132]. - The company has engaged external professionals to assess environmental impacts, ensuring compliance with safety standards for emissions[188].

Financial Performance - Revenue for the year ended March 31, 2024, was approximately HKD 54.3 million, a decrease of 24.3% from HKD 71.7 million in 2023[2] - Gross profit for the same period was approximately HKD 7.5 million, down from HKD 8.8 million in 2023, reflecting a decline of 15.3%[2] - The net loss for the year was approximately HKD 24.4 million, an improvement from a net loss of HKD 31.3 million in 2023, representing a reduction of 22.5%[2] - Basic and diluted loss per share was approximately HKD 2.9 cents, compared to HKD 3.7 cents in 2023, indicating a decrease of 21.6%[2] - The company reported a loss attributable to owners of HKD 24,444,000 for 2024, compared to a loss of HKD 31,284,000 in 2023, representing a decrease in loss of approximately 22.5%[33] - Total employee costs decreased to HKD 26,318,000 in 2024 from HKD 33,973,000 in 2023, reflecting a reduction of about 22.6%[31] - Other income decreased by approximately 63.6% from HKD 1.1 million to HKD 0.4 million, primarily due to reductions in government subsidies, rental income, and interest income from receivables[57] Assets and Liabilities - Total assets decreased to HKD 69.2 million in 2024 from HKD 65.7 million in 2023, an increase of 5.7%[7] - Current liabilities increased significantly to HKD 58.7 million in 2024 from HKD 36.0 million in 2023, a rise of 62.4%[7] - The company’s equity decreased to HKD 46.5 million in 2024 from HKD 72.6 million in 2023, a decline of 36.0%[8] - Total borrowings increased to HKD 16,599,000 in 2024 from HKD 9,260,000 in 2023, marking an increase of approximately 79.5%[39] - The current ratio decreased from approximately 1.8 times as of March 31, 2023, to about 1.2 times as of March 31, 2024, mainly due to increases in other payables and borrowings[67] - The debt-to-equity ratio increased to 48.3% as of March 31, 2024, compared to 21.0% as of March 31, 2023, due to increased borrowings and a decrease in total equity[67] Revenue Breakdown - Sales of bridal gowns amounted to HKD 4,285,000 in 2024, down from HKD 6,320,000 in 2023, representing a decline of 32.4%[24] - Revenue from the United States market was HKD 22,548,000 in 2024, a decrease of 23.4% from HKD 29,482,000 in 2023[25] - Major customer A contributed HKD 11,002,000 in revenue for 2024, down 24.3% from HKD 14,498,000 in 2023[29] - Revenue from the sale of bridesmaid dresses decreased by approximately HKD 9.8 million, while revenue from special occasion dresses and accessories decreased by approximately HKD 3.8 million and HKD 3.5 million, respectively[51] Corporate Governance - The board did not recommend a final dividend for the year, consistent with the previous year[2] - The company has not declared or recommended any dividends for the years ended March 31, 2024, and 2023[31] - The board believes that good corporate governance standards are essential for protecting shareholder interests and enhancing corporate value[83] - The audit committee reviewed the group's audited financial performance for the year ended March 31, 2024, including accounting principles and internal controls[88] - The board of directors consists of four executive directors and four independent non-executive directors, indicating a balanced governance structure[94] - The presence of both executive and independent directors suggests a commitment to corporate governance and accountability[94] - The governance structure may facilitate effective oversight of financial performance and risk management[94] Strategic Initiatives - The group is actively seeking new business opportunities to diversify its revenue sources and reduce risks due to the ongoing US-China trade disputes and the impact of COVID-19[48] - The group is negotiating with a well-known discount retailer in China to develop procurement and distribution businesses, aiming to expand its customer base and revenue in the Chinese market[48] - The company is focused on maintaining a strong leadership team to drive strategic initiatives and performance[94] - The company is positioned to leverage its leadership team for market expansion and innovation[94] Operational Insights - The company’s operations are primarily focused on garment manufacturing and trading, with no independent financial information provided beyond overall performance[26] - The company has established long-term relationships with major bridesmaid dress customers, becoming their exclusive supplier, which supports its market position in China[44] - The company has not applied any new financial reporting standards that have been issued but are not yet effective, indicating no significant impact on the consolidated financial statements[17] - The company expects that the application of the revised accounting standards will not lead to a reclassification of liabilities as of March 31, 2024[20] - The company has clarified that the classification of liabilities should be based on rights existing at the reporting date, not management's intentions[19] - The revised accounting standards will take effect for annual periods beginning on or after January 1, 2024, allowing for early application[20] Employee and Cost Management - The total employee cost for the year ended March 31, 2024, was approximately HKD 26,300,000, a decrease from HKD 34,000,000 for the year ended March 31, 2023, with a total of 227 employees as of March 31, 2024, compared to 246 employees a year earlier[75] - The company implemented cost control measures throughout the year to cope with prolonged business setbacks[48] - The company’s depreciation of right-of-use assets increased to HKD 2,753,000 in 2024 from HKD 1,146,000 in 2023, an increase of approximately 140.5%[31] Future Outlook - The company is expected to provide further insights into its operational strategies in future announcements[94] - The announcement date is June 28, 2024, which may align with upcoming financial reporting or strategic updates[94] - The company will hold its annual general meeting on August 26, 2024[79] - The group did not engage in any significant acquisitions or disposals of subsidiaries or associates during the year ended March 31, 2024[71] - There were no significant investments held by the group as of March 31, 2024, consistent with the previous year[72] - The group has no major capital commitments as of March 31, 2024, unchanged from the previous year[76] - There were no significant contingent liabilities as of March 31, 2024, similar to the previous year[77] - The company entered into a subscription agreement on May 23, 2024, for the issuance of 168,480,000 subscription shares at a price of HKD 0.1 per share[74]

Revenue Performance - The company recorded revenue of approximately HKD 22,500,000 for the six months ended September 30, 2023, a decrease of about 39.7% compared to HKD 37,300,000 for the same period in 2022[6] - Revenue for the six months ended September 30, 2023, was HKD 22,468,000, a decrease of 39.7% compared to HKD 37,294,000 in the same period of 2022[64] - Revenue from the United States accounted for approximately 42.2% of total revenue for the six months ended September 30, 2023, down from 46.6% in the same period of 2022[6] - Revenue from the United States market fell to HKD 9,490,000, down 45.3% from HKD 17,369,000 in the previous year[84] - Sales of bridesmaid dresses decreased from HKD 19,500,000 to HKD 10,500,000, with the quantity sold dropping from 62,200 units to 33,400 units[10] - Sales of special occasion dresses fell from HKD 5,800,000 to HKD 2,000,000, with the quantity sold decreasing from 10,100 units to 3,700 units[10] - Sales of ready-made garments to Veromia Limited amounted to HKD 1,450 million for the six months ended September 30, 2023, down from HKD 4,221 million in the same period last year, representing a decline of approximately 65.6%[110] Profitability and Loss - The company incurred a loss of approximately HKD 14,700,000 for the six months ended September 30, 2023, an improvement of about 18.8% compared to a loss of HKD 18,100,000 for the same period in 2022[6] - The net loss for the period narrowed to HKD 14,665,000, compared to a loss of HKD 18,146,000 in the previous year, representing a 19.5% improvement[66] - Total comprehensive loss for the period was HKD 14,826,000, compared to HKD 18,586,000 in the same period last year, indicating a 20.0% reduction[66] - The group recorded a loss of approximately HKD 14,700,000 for the six months ended September 30, 2023, compared to a loss of approximately HKD 18,100,000 for the same period last year, reflecting a decrease in losses[20] Cost Management - Cost of sales decreased from HKD 33,800,000 to HKD 20,300,000, a reduction of approximately 39.9%, aligning with the revenue decline[12] - The gross profit margin increased from 9.4% for the six months ended September 30, 2022, to 9.8% for the same period in 2023, despite a decrease in gross profit from HKD 3,500,000 to HKD 2,200,000[13] - The total employee cost for the six months ended September 30, 2023, was approximately HKD 12,800,000, down from approximately HKD 18,500,000 for the same period last year[31] - Administrative expenses decreased by approximately HKD 3,500,000 or 24.3% to about HKD 10,900,000 for the six months ended September 30, 2023, primarily due to cost control measures[17] - Sales and distribution expenses decreased by approximately HKD 600,000 or 18.2% to about HKD 2,700,000 for the six months ended September 30, 2023, mainly due to a decrease in employee and transportation costs[16] - Financing costs decreased by approximately HKD 20,000 or 4.2% to about HKD 460,000 for the six months ended September 30, 2023, mainly due to a reduction in average bank borrowings[18] Business Strategy and Opportunities - The company is actively seeking new business opportunities to diversify its revenue sources and reduce risks due to the ongoing US-China trade disputes and the impact of COVID-19[8] - The company is in discussions with a well-known discount retailer in China to develop procurement and distribution business, aiming to expand its customer base in China[8] - The company has implemented cost control measures to navigate the prolonged business downturn and is prepared to seize future growth opportunities[9] Share Capital and Dividends - The company did not recommend an interim dividend for the six months ended September 30, 2023, consistent with the previous year[21] - The issued and paid-up share capital remained at 842,432,607 shares, valued at HKD 8,424 million as of September 30, 2023[109] - The total number of shares available for issuance under the share option plan is capped at 52,000,000 shares, equivalent to 6.17% of the issued shares as of the mid-term report date[42] Compliance and Governance - The controlling shareholders confirmed compliance with the non-competition agreement for the six months ended September 30, 2023[53] - The company has established a governance framework to monitor compliance with the non-competition agreement, including annual reviews by independent non-executive directors[54] - The audit committee reviewed the unaudited condensed consolidated financial results for the six months ended September 30, 2023[62] Financial Position - The group had a current ratio of approximately 1.4 times as of September 30, 2023, down from 1.8 times as of March 31, 2023, primarily due to an increase in other payables and accrued expenses[23] - The debt-to-equity ratio increased to 26.2% as of September 30, 2023, compared to 21.0% as of March 31, 2023, mainly due to increased losses reducing total equity[24] - The total equity decreased to HKD 57,747,000 from HKD 72,573,000, a decline of 20.4%[69] - Current liabilities increased to HKD 46,854,000 from HKD 36,005,000, marking a significant rise of 30.0%[68] Cash Flow and Investments - The net cash used in operating activities for the six months ended September 30, 2023, was HKD (5,246,000), a significant improvement from HKD (40,910,000) in the same period of 2022[73] - The net cash generated from investing activities was HKD 68,000, compared to a net cash used of HKD (5,760,000) in the prior year[73] - The net cash generated from financing activities was HKD 6,669,000, a recovery from a net cash used of HKD (7,576,000) in the previous year[73] - The company reported a net increase in cash and cash equivalents of HKD 1,491,000, compared to a decrease of HKD (54,246,000) in the same period last year[75] - The company's cash and cash equivalents improved to HKD 4,598,000 from HKD 3,155,000, an increase of 45.6%[67] Asset Management - Non-current assets decreased to HKD 45,263,000 from HKD 48,431,000, reflecting a decline of 4.5%[67] - Current assets slightly decreased to HKD 64,862,000 from HKD 65,675,000, a reduction of 1.2%[68] - The company’s non-current assets located in China were fully impaired as of September 30, 2023[88] - Trade receivables from third parties decreased to HKD 3,700,000 as of September 30, 2023, from HKD 7,742,000 as of March 31, 2023, reflecting a decline of approximately 52.2%[101] Share Options and Incentives - The company has adopted a share option plan to incentivize contributions from qualified individuals[38] - The share option plan includes employees, suppliers, customers, and other contributors to the company's growth[39] - The maximum number of unexercised share options that can be issued at any time cannot exceed 30% of the total issued shares[49] - No stock options were granted, exercised, canceled, or lapsed under the stock option plan during the six months ended September 30, 2023[50]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 KNT HOLDINGS LIMITED * 嘉 藝 控 股 有 限 公司 （於開曼群島註冊成立的有限公司） 1025 （股份代號： ） 截至二零二三年九月三十日止六個月 中期業績公告 嘉藝控股有限公司（「本公司」）董事會（「董事會」）欣然公佈本公司及其附屬公司（統稱 「本集團」）截至二零二三年九月三十日止六個月的未經審核簡明綜合業績，連同截 至二零二二年九月三十日止六個月的比較數字。 簡明綜合損益表 截至二零二三年九月三十日止六個月 截至九月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 （未經審核） （未經審核） 4 22,468 37,294 收益 (20,258) (33,782) 銷售成本 ...

Financial Performance - For the fiscal year ending March 31, 2023, the group recorded revenue of approximately HKD 71.7 million, a decrease of about 10.4% compared to HKD 80 million for the fiscal year ending March 31, 2022[7]. - Revenue from the United States accounted for approximately 46.2% and 39.7% of total revenue for the fiscal years ending March 31, 2022, and March 31, 2023, respectively[14]. - The net losses for the fiscal years ending March 31, 2022, and March 31, 2023, were approximately HKD 25.1 million and HKD 31.3 million, respectively[14]. - Revenue decreased from approximately HKD 80,000,000 to approximately HKD 71,700,000, a decline of about 10.4%[17]. - Other income decreased from approximately HKD 4,200,000 to approximately HKD 1,100,000, a decline of about 73.8%[23]. - Administrative expenses rose from approximately HKD 24,900,000 to approximately HKD 27,100,000, an increase of about 8.8%[26]. - The company recorded a loss of approximately HKD 31,300,000 for the year, compared to a loss of approximately HKD 25,100,000 in the previous year[30]. Sales and Product Performance - The group sold approximately 142,800 products, including about 113,700 bridesmaid dresses, 6,000 wedding dresses, and 23,100 special occasion garments[7]. - Sales of bridesmaid dresses dropped from approximately HKD 39,800,000 to approximately HKD 35,000,000, primarily due to a decrease in volume from 121,700 units to 113,700 units[17]. - Sales of special occasion dresses increased from approximately HKD 8,300,000 to approximately HKD 13,500,000, with volume rising from 13,300 units to 23,100 units[18]. Cost Management and Profitability - The gross profit margin increased from 5.0% for the fiscal year ending March 31, 2022, to 12.3% for the fiscal year ending March 31, 2023[14]. - Gross profit increased from approximately HKD 4,000,000 to approximately HKD 8,800,000, resulting in a gross margin improvement from 5.0% to 12.3%[22]. - The current ratio decreased from approximately 2.4 times to 1.8 times, primarily due to a reduction in cash and cash equivalents[33]. - The debt-to-equity ratio improved from 23.8% to 21.0% as bank loans decreased despite an increase in losses[33]. Business Strategy and Opportunities - The ongoing US-China trade disputes and the impact of COVID-19 have created a challenging business environment for the group[10]. - The company is actively seeking new business opportunities to diversify its revenue sources and reduce risks[10]. - Discussions are ongoing with a well-known discount retailer in China to develop procurement and distribution businesses, aiming to expand the customer base in China[10]. - The management team is prepared to seize opportunities for long-term growth and enhance shareholder value[10]. Investments and Capital Management - The company completed an investment of HKD 4,000,000 to acquire a 40% stake in Vantage Zone Investments Limited, expanding its restaurant business in Hong Kong[38]. - The company established Green Path Enterprises Limited with a 40% stake, aimed at expanding into the pharmacy business in Hong Kong[38]. - The company raised approximately HKD 63,840,000 through a share placement at HKD 0.38 per share, with net proceeds expected to be around HKD 62,000,000 for general working capital[41]. - The company completed a rights issue, raising approximately HKD 57,400,000, fully utilized for general working capital and developing the discount store business[49][50]. Governance and Compliance - The company has confirmed compliance with its own code of conduct regarding securities trading by all directors during the reporting period[70]. - The board consists of a balanced mix of executive and independent non-executive directors, ensuring strong independent judgment[72]. - The company has adopted the principles and code provisions of the Corporate Governance Code as the basis for its governance practices[68]. - The board is responsible for leading and monitoring the company, ensuring decisions are made in the best interest of the company[72]. Employee Management and Training - As of March 31, 2023, the total number of employees in the company was 246, comprising 244 full-time and 2 part-time employees, a decrease from 262 employees in the previous year[174]. - The overall employee turnover rate for the company was 10.2% for the year ending March 31, 2023, down from 14.1% in the previous year[176]. - The company provides competitive compensation packages that meet or exceed local minimum wage standards, along with various benefits including medical insurance and long service awards[177]. - The employee training programs aim to enhance knowledge, skills, and organizational capabilities, contributing to continuous growth and development[171]. Health and Safety Measures - Employee vaccination rate reached 98%, with only 4 employees exempt due to medical reasons[191]. - The company implemented systematic reporting mechanisms for COVID-19 cases to ensure timely action and employee protection[186]. - All employees were provided with protective equipment, including masks and disposable gloves, during the pandemic[191]. - The company maintained compliance with all relevant occupational health and safety laws and regulations, with no violations reported during the period[182]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable development through an ESG governance framework and aims to increase the use of biodegradable materials while minimizing waste[152]. - The ESG committee meets biannually to ensure proper execution of ESG measures and may hire external sustainability experts for performance enhancement[158]. - The company actively engages with stakeholders through various communication channels, including annual reports, meetings, and community outreach[159]. - The company aims to improve its environmental and community impact by providing responsible products and excellent services[154].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 KNT HOLDINGS LIMITED * 嘉 藝 控 股 有 限 公司 （於開曼群島註冊成立的有限公司） 1025 （股份代號： ） 截至二零二三年三月三十一日止年度 全年業績公告 財務摘要 截至二零二三年三月三十一日止年度 • 71,700,000 80,000,000 收益約為 港元（二零二二年：約 港元）。 • 8,800,000 4,000,000 毛利約為 港元（二零二二年：約為 港元）。 • 31,300,000 25,100,000 年內虧損約為 港元（二零二二年：約 港元）。 • 3.7 3.9 每股基本及攤薄虧損約為 港仙（二零二二年： 港仙）。 ...

Financial Performance - The company recorded revenue of approximately HKD 37,300,000 for the six months ended September 30, 2022, a decrease of about 0.5% compared to HKD 37,500,000 for the same period in 2021[14]. - Revenue from the United States accounted for approximately 46.6% of total revenue for the six months ended September 30, 2022, down from 50.1% in the same period of 2021[14]. - The gross profit margin decreased from 13.7% for the six months ended September 30, 2021, to 9.4% for the same period in 2022[14]. - The company reported a loss of approximately HKD 18,100,000 for the six months ended September 30, 2022, an increase of about 141.3% compared to a loss of HKD 7,500,000 for the same period in 2021[14]. - The company reported a loss attributable to shareholders of HKD 18,146,000 for the six months ended September 30, 2022, compared to a loss of HKD 7,537,000 for the same period in 2021, indicating a significant increase in losses[124]. - Basic loss per share was HKD 2.2, compared to HKD 1.4 in the previous year[88]. - The company incurred a loss before tax of HKD 18,127,000, compared to a loss of HKD 7,575,000 in the previous year, representing an increase in loss of 139.5%[88]. Revenue Breakdown - Sales of special occasion apparel increased from approximately HKD 2,300,000 to HKD 5,700,000, driven by an increase in sales volume from 2,900 units to 10,100 units[19]. - The sales of bridal gowns increased to HKD 3,548,000 from HKD 3,063,000, representing a growth of 15.9% year-on-year[110]. - The sales of special occasion wear surged to HKD 5,729,000, up 152.5% from HKD 2,268,000 in the previous year[110]. - Revenue from the United States market was HKD 17,369,000, down 7.7% from HKD 18,811,000 in the prior year[112]. - Revenue from Europe increased significantly to HKD 5,801,000, compared to HKD 2,962,000 in the previous year, marking a growth of 96.5%[112]. Cost and Expenses - The cost of sales increased by approximately 4.3% to HKD 33,800,000 for the six months ended September 30, 2022, primarily due to rising labor costs[21]. - Selling and distribution expenses increased by approximately HKD 100,000 or 3.1% to about HKD 3,300,000 for the six months ended September 30, 2022, mainly due to rising employee costs and advertising expenses[25]. - Administrative expenses rose by approximately HKD 4,200,000 or 41.2% to about HKD 14,400,000 for the six months ended September 30, 2022, attributed to increased employee costs following prior cost control measures[26]. - Financing costs decreased by approximately HKD 100,000 or 16.7% to about HKD 500,000 for the six months ended September 30, 2022, due to a reduction in average bank borrowings[27]. Business Strategy and Opportunities - The company is actively seeking new business opportunities to diversify its revenue sources and reduce risks due to ongoing challenges from U.S.-China trade disputes and COVID-19[17]. - The company is negotiating with a well-known discount retailer in China to develop procurement and distribution business, aiming to expand its customer base in China[17]. - The management team is prepared to seize opportunities for long-term growth and safeguard shareholder interests[18]. Financial Position - The company's current ratio was approximately 2.1 times as of September 30, 2022, down from 2.4 times as of March 31, 2022, primarily due to a decrease in cash and cash equivalents[33]. - The debt-to-equity ratio was 21.7% as of September 30, 2022, down from 23.8% as of March 31, 2022, mainly due to a decrease in bank loans and increased losses[34]. - The company's equity decreased to HKD 85,537,000 as of September 30, 2022, from HKD 104,123,000 as of March 31, 2022, reflecting a decline of approximately 17.8%[94]. - Total assets decreased to HKD 91,273,000 as of September 30, 2022, from HKD 110,060,000 as of March 31, 2022, representing a decline of approximately 17.0%[94]. Shareholder Information - Major shareholders include Strategic Elite Limited, holding 28.008% of shares, and Total Clarity Investments Limited, holding 14.250% of shares[53]. - The total issued shares as of September 30, 2022, were 842,432,607[53]. - The total number of shares available for issuance under the stock option plan, along with the percentage of issued shares as of the date of this interim report, is capped at 30% of the total issued shares[63]. - The maximum number of shares that can be granted under the stock option plan and any other stock option plans is limited to 52,000,000 shares, which represents 6.17% of the issued shares as of the interim report date[63]. Corporate Governance - The company has adopted the principles and code provisions of the Corporate Governance Code as a basis for its corporate governance practices[82]. - The audit committee reviewed the unaudited condensed consolidated financial results for the six months ended September 30, 2022[86]. - Independent non-executive directors review compliance with the non-competition agreement annually[77]. - The controlling shareholders have confirmed compliance with the non-competition agreement as of September 30, 2022[75].

Financial Performance - The group recorded revenue of approximately HKD 80,000,000 for the year ended March 31, 2022, an increase of about 27.6% compared to HKD 62,700,000 for the previous year[9]. - The group sold approximately 142,800 products, including about 121,700 bridesmaid dresses, 7,700 wedding dresses, and 13,300 special occasion garments[9]. - Revenue from the United States accounted for approximately 46.2% of total revenue for the year ended March 31, 2022, down from 78.6% in the previous year[9]. - The gross profit margin improved from a gross loss margin of 8.4% for the year ended March 31, 2021, to a gross profit margin of 5.0% for the year ended March 31, 2022[9]. - The net loss for the year ended March 31, 2022, was approximately HKD 25,100,000, a significant reduction from a loss of HKD 44,700,000 in the previous year[9]. - Other income increased by approximately 223.1% to HKD 4,200,000 for the year ended March 31, 2022, primarily due to government subsidies and recovery of previously written-off debts[24]. - Sales and distribution expenses rose by approximately 22.0% to HKD 6,100,000 for the year ended March 31, 2022, driven by increased advertising and promotion costs[26]. - Financing costs decreased by approximately 31.2% to HKD 1,100,000 for the year ended March 31, 2022, due to a reduction in average bank borrowings[28]. - As of March 31, 2022, the group's cash and cash equivalents were approximately HKD 52.8 million, a significant increase from HKD 0.5 million on March 31, 2021[31]. - The current ratio improved to approximately 2.4 times as of March 31, 2022, compared to 0.8 times on March 31, 2021, primarily due to increased cash and reduced bank loans[32]. - The debt-to-equity ratio decreased to 23.8% as of March 31, 2022, down from 78.8% a year earlier, attributed to reduced bank loans and increased equity from share placements[32]. Business Strategy and Opportunities - The group is actively seeking new business opportunities to diversify its revenue sources and reduce risks due to ongoing trade disputes and the impact of COVID-19[12]. - The company is negotiating with a well-known discount retailer in China to develop procurement and distribution business, aiming to expand its customer base in China[12]. - The company has started developing an online business platform for selling fashion apparel since November 2020[16]. - The group has launched accessory sales business during the year ended March 31, 2022[16]. Corporate Governance - The board of directors consists of experienced members, including independent non-executive directors with over 16 years and 30 years of experience in direct sales and insurance management respectively[64][65]. - The company has adopted the corporate governance code as a basis for its governance practices, ensuring compliance with all applicable provisions during the reporting period[72]. - The board holds at least four regular meetings annually, with all directors actively participating either in person or via electronic communication[83]. - The financial director has over 15 years of experience in accounting and auditing, ensuring robust financial management and reporting[68]. - The company has a structured approach to governance, aimed at protecting shareholder interests and enhancing corporate value[72]. - The board is committed to regular reviews of directors' contributions and time commitments to ensure effective governance[79]. - The company has established a code of conduct for securities trading, ensuring compliance among directors and employees[73]. - The board includes a diverse range of expertise, with members holding significant positions in various sectors, enhancing strategic decision-making[80]. - The company emphasizes transparency and accountability in its operations, aligning with best practices in corporate governance[72]. - The independent non-executive directors play a crucial role in overseeing the company's strategic decisions and performance[78]. - The board of directors attended 10 out of 10 meetings, with the chairman and CEO, Mr. Zhuang Shuo, present at all meetings[84]. - The audit committee held two meetings during the reporting period, reviewing the annual performance and interim financial results[97]. - All independent non-executive directors confirmed their independence according to the listing rules[89]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific written terms of reference[96]. - The audit committee consists of four independent non-executive directors, ensuring compliance with financial reporting and internal control systems[97]. - The remuneration committee is chaired by Mr. Liu Guanyie, comprising four independent non-executive directors[99]. - The company maintains appropriate insurance coverage for directors and senior management against legal actions arising from corporate activities[93]. - All directors are required to undergo continuous professional development to fulfill their responsibilities effectively[93]. - The company’s governance practices align with the corporate governance code, ensuring a minimum of three independent non-executive directors on the board[89]. - The board believes that the dual role of chairman and CEO held by Mr. Zhuang Shuo provides strong leadership for effective business decision-making[87]. - The compensation committee held two meetings during the reporting period to review the company's compensation policies and structures, as well as the remuneration of directors and senior management[104]. - The company has adopted a board diversity policy, recognizing that a diverse board can enhance corporate governance and board effectiveness[111]. - The nomination committee evaluated the independence of independent non-executive directors and made recommendations regarding their re-election[109]. - The board is aware that all members are of a single gender and plans to appoint at least one director of a different gender by December 31, 2024, to comply with listing rules[112]. - The nomination committee will report annually on the composition of the board based on diversity perspectives and measurable targets[112]. - The company has established a director nomination policy to ensure a balanced board in terms of skills, experience, and diversity perspectives[114]. - The compensation committee's responsibilities include reviewing and approving compensation arrangements for executive directors and senior management[104]. - The company aims to ensure that any compensation payments are fair and reasonable, particularly in cases of termination or dismissal[104]. - The nomination committee consists of one executive director and four independent non-executive directors, with the chairman also serving as the committee chair[107]. Risk Management and Compliance - The company has established a risk management framework involving the board, audit committee, and risk management working group to oversee risk management and internal control systems[120]. - The audit fees paid to Deloitte for the reporting period totaled HKD 1,789,000, which includes HKD 1,100,000 for audit services and HKD 412,000 for non-audit services related to rights issues[127]. - The board has conducted an annual review of the effectiveness of the risk management and internal control systems, covering financial, operational, and compliance monitoring[121]. - The company has a clear governance structure and policies to manage various operational risks[120]. - The company has adopted risk management policies to identify, assess, and manage significant risks[120]. - The company has established a shareholder communication policy to ensure that shareholder views and concerns are appropriately addressed[134]. - The board of directors has reviewed the effectiveness of the shareholder communication policy during the reporting period[134]. - The company has a policy for handling and disclosing inside information in compliance with the Securities and Futures Ordinance and listing rules[123]. - The board is responsible for preparing the financial statements and overseeing the financial reporting process[124]. Employee Welfare and Training - The total employee cost for the year ending March 31, 2022, was approximately HKD 32.2 million, an increase from HKD 29.3 million in the previous year[38]. - As of March 31, 2022, the total number of employees in the group was 262, all of whom were full-time employees, a decrease from 295 employees in the previous year[170]. - The overall employee turnover rate was 14.1%, with a breakdown of 11.9% for males and 16.0% for females[172]. - The turnover rate for employees aged 25 or below was 60.0%, while for those aged 40 to 49, it was 7.7%[172]. - The group has implemented a comprehensive internal human resources policy to regulate recruitment, dismissal, promotion, and other employee benefits[168]. - The company has signed formal labor contracts with all employees to protect their rights and interests, ensuring compliance with local labor laws[172]. - The group emphasizes employee welfare by providing competitive compensation packages that exceed local minimum wage standards[173]. - The company has a total of 240 employees in mainland China, down from 276 the previous year, while the number of employees in Hong Kong increased from 19 to 22[170]. - The group has established rigorous policies to ensure fair treatment of all employees, promoting diversity and inclusion in the workplace[168]. - The company strictly adheres to all relevant occupational health and safety laws, with no violations reported during the reporting period[178]. - The group is committed to continuous investment in employee training and development opportunities to enhance their skills and organizational capabilities[170]. - The COVID-19 vaccination rate among employees reached 98%, with only 4 employees exempted for medical reasons[187]. - The company implemented regular disinfection of facilities as part of its COVID-19 measures[187]. - There were no reported incidents of work-related injuries or fatalities over the past three fiscal years[182]. - The company has established a systematic reporting mechanism for employees to report safety-related issues[182]. - A comprehensive training program was conducted to enhance employees' awareness of health and safety regulations[188]. - The company provided various training courses to improve employees' skills in production processes and quality control[191]. - All employees are required to wear personal protective equipment, such as masks, during their shifts[181]. - The company conducted a fire drill to assess workers' ability to respond to emergencies[188]. - An internal pandemic response team was established to monitor the COVID-19 situation and implement necessary measures[186]. - The company encourages employees to report any suspected workplace hazards to management for timely action[182]. - 100% of employees participated in the training program, with male employees at 45.0% and female employees at 55.0%[193]. - The average training hours per employee was 11.6 hours, with male employees averaging 14.7 hours and female employees averaging 9.1 hours[195]. - The average training hours for employees aged 25 or below increased from 20.2 hours to 28.1 hours year-on-year[195]. - The training hours for employees aged 40 to 49 remained stable at 10.1 hours[195]. Sustainability and ESG Initiatives - The company aims to improve the accuracy of ESG data disclosure and enhance transparency in ESG performance[139]. - The board is committed to monitoring ESG matters, including health and safety, product responsibility, and compliance[144]. - The company emphasizes the importance of sustainable materials and designs in response to increasing consumer demand for sustainability[145]. - The company will continue to actively address identified ESG issues, including product quality and customer service[145]. - The company aims to increase the use of biodegradable materials and minimize waste generation[145]. - The company expects to enhance its impact on the environment and community by providing responsible products and excellent services[149]. - The ESG committee is responsible for assessing and determining ESG-related risks and opportunities, with a focus on effective risk management and internal controls[150]. - The committee meets formally every six months to ensure the proper execution of ESG measures within specified timelines[152]. - The company emphasizes stakeholder engagement and has established multiple channels for effective communication with stakeholders, including shareholders, employees, suppliers, and the community[153]. - An importance assessment was conducted to identify sustainability issues that may impact the company, utilizing feedback from both internal and external stakeholders[158]. - Key sustainability issues identified include packaging material usage, energy consumption and efficiency, and employee recruitment and dismissal[165]. Supplier Management - The total number of suppliers identified by the company is 139, with 62 suppliers located in China[199]. - The company has established a supplier code of conduct that includes multiple environmental and social risk indicators[200]. - The number of suppliers in the United States is 10, while there are 4 suppliers in South Korea[199]. - The company aims to ensure supplier compliance with sustainable and ethical practices through a series of pre-qualification assessments[200]. - The company plans to explore the feasibility of incorporating internationally recognized standards into supplier evaluation criteria[200].

Revenue Performance - For the six months ended September 30, 2021, the company recorded revenue of approximately HKD 37,500,000, a decrease of about 8.8% compared to HKD 41,100,000 for the same period in 2020[7]. - Revenue from the United States accounted for approximately 50.1% of total revenue for the six months ended September 30, 2021, down from 79.6% in the same period of 2020[7]. - Revenue from special occasion garments decreased from approximately HKD 7,500,000 for the six months ended September 30, 2020, to approximately HKD 2,300,000 for the six months ended September 30, 2021, primarily due to a drop in sales volume from 40,600 units to 2,900 units[13]. - Revenue for the six months ended September 30, 2021, was HKD 37,532,000, a decrease of 8.5% from HKD 41,104,000 in 2020[84]. - The sales of bridesmaid dresses amounted to HKD 19,198,000, down 30.9% from HKD 27,834,000 in the previous year[106]. - Revenue from the United States was HKD 18,811,000, a decrease of 42.5% from HKD 32,682,000 in the previous year[107]. - Revenue from Hong Kong increased significantly to HKD 12,891,000 from HKD 1,487,000, marking a growth of 767.5%[107]. Profitability and Loss - The company reported a loss of approximately HKD 7,500,000 for the six months ended September 30, 2021, a reduction of about 54.5% compared to a loss of HKD 16,500,000 for the same period in 2020[7]. - The net loss for the period was HKD 7,537,000, significantly improved from a net loss of HKD 16,489,000 in the previous year[85]. - The loss for the six months ended September 30, 2021, was approximately HKD 7,500,000, with the reduction in loss primarily due to decreased administrative expenses and financing costs[22]. - For the six months ended September 30, 2021, the company reported a loss attributable to shareholders of HKD 7,537,000, compared to a loss of HKD 16,489,000 for the same period in 2020, representing a 54.3% improvement in loss[116]. Cost Management - Cost control measures have been implemented since April 2020 to cope with prolonged business downturns[10]. - Cost of sales reduced by approximately HKD 3,500,000 or about 9.5% from approximately HKD 37,000,000 for the six months ended September 30, 2020, to approximately HKD 33,500,000 for the six months ended September 30, 2021[14]. - Administrative expenses decreased by approximately HKD 1,400,000 or about 10.2% from approximately HKD 13,700,000 to approximately HKD 12,300,000, attributed to cost control measures[19]. - The company reported a financial cost of HKD 573,000, down from HKD 1,007,000, representing a decrease of 43.1%[84]. - The company's total financial costs decreased to HKD 573,000 from HKD 1,007,000, reflecting a reduction of 43.1% year-over-year[114]. Business Strategy and Opportunities - The company is actively seeking new business opportunities to diversify revenue sources and reduce risks due to ongoing trade disputes and the impact of COVID-19[10]. - Discussions are ongoing with a well-known discount retailer in China to develop procurement and distribution business, aiming to expand the customer base in China[10]. - The company aims to leverage its strong track record and experienced management team to seize growth opportunities in the future[10]. Financial Position - The company's current ratio decreased to approximately 0.7 times as of September 30, 2021, from approximately 0.8 times as of March 31, 2021, mainly due to a decrease in cash and cash equivalents[25]. - The company's debt-to-equity ratio increased to 83.8% as of September 30, 2021, from 78.8% as of March 31, 2021, primarily due to losses reducing total equity[25]. - The company's total equity as of September 30, 2021, was HKD 37,089,000, down from HKD 44,819,000 as of March 31, 2021[88]. - The company's bank overdrafts and loans totaled HKD 31,076,000 as of September 30, 2021, down from HKD 35,313,000 as of March 31, 2021, a reduction of 11.8%[125]. Shareholder Information - Major shareholders include Strategic Elite Limited with 235,950,000 shares (45.375%) and Total Clarity Investments Limited with 154,050,000 shares (29.625%) as of September 30, 2021[42][46]. - The company has issued and fully paid 520,000,000 shares with a par value of HKD 0.01 each as of September 30, 2021[128]. - The total number of issued shares remained unchanged at 520,000,000 shares from April 1, 2020, to September 30, 2021[128]. Employee and Training - As of September 30, 2021, the group had a total employee cost of approximately HKD 14,200,000, an increase from HKD 13,200,000 for the same period in 2020[35]. - The company has a total of 260 employees as of September 30, 2021, down from 295 employees as of March 31, 2021[35]. - The company has provided training for new employees to acquire necessary skills, while existing employees can enhance their production skills[35]. Corporate Governance - The company has adopted the principles and code provisions of the Corporate Governance Code as its corporate governance practices[78]. - The audit committee, consisting of four independent non-executive directors, reviewed the unaudited condensed consolidated financial results for the six months ended September 30, 2021[82]. - The company has implemented corporate governance measures to monitor compliance with non-competition agreements[66]. - The company believes that the dual role of the chairman and CEO, held by Mr. Zhuang, provides strong leadership for effective business decision-making[78]. Capital Expenditure and Commitments - The company plans to allocate HKD 22.1 million for acquiring properties and facilities in Hong Kong for logistics purposes, with HKD 21.5 million already utilized by September 30, 2021[41]. - The company has allocated HKD 3.7 million for developing an online business platform, with HKD 3.3 million already utilized by September 30, 2021[41]. - The company has no significant capital commitments or contingent liabilities as of September 30, 2021[36][37]. Compliance and Conduct - No incidents of employees violating the company's code of conduct were reported during the six-month period[80]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ended September 30, 2021[81]. - The controlling shareholders have confirmed compliance with non-competition commitments, ensuring no engagement in competing businesses in Hong Kong, Macau, or other jurisdictions[64].