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].

Financial Performance - The company recorded revenue of approximately HKD 62.7 million for the year ended March 31, 2021, a decrease of about 62.8% compared to HKD 168.5 million for the year ended March 31, 2020[9]. - Revenue from the United States accounted for approximately 87.6% and 78.6% of total revenue for the years ended March 31, 2020, and March 31, 2021, respectively[9]. - The gross profit margin declined from 7.6% for the year ended March 31, 2020, to a gross loss margin of 11.0% for the year ended March 31, 2021[9]. - The company reported losses of approximately HKD 47 million and HKD 44.7 million for the years ended March 31, 2020, and March 31, 2021, respectively[9]. - The company recorded a revenue decrease of approximately 105,800,000 HKD or about 62.8%, from approximately 168,500,000 HKD for the year ended March 31, 2020, to approximately 62,700,000 HKD for the year ended March 31, 2021[22]. - Revenue from special occasion dresses decreased from approximately 84,100,000 HKD to approximately 8,700,000 HKD, a decline attributed to a drop in sales volume from 610,700 units to 42,800 units[23]. - Revenue from bridesmaid dresses decreased from approximately 79,800,000 HKD to approximately 44,100,000 HKD, with sales volume dropping from 274,000 units to 152,600 units[23]. - The company reported a gross loss of approximately 6,900,000 HKD for the year ended March 31, 2021, compared to a gross profit of approximately 12,800,000 HKD for the previous year, resulting in a gross loss margin of 11.0%[25]. - The company recorded a loss of approximately 44,700,000 HKD for the year ended March 31, 2021, a decrease from a loss of approximately 47,000,000 HKD in the previous year[28]. Cost Control and Business Strategy - The ongoing US-China trade disputes and the impact of COVID-19 have created a challenging business environment, affecting overall performance[12]. - The company has implemented cost control measures since April 2020 to address prolonged business setbacks[12]. - Management is actively seeking new business opportunities to diversify revenue sources and reduce risks[12]. - The company has begun developing an online business platform to sell fashion apparel since November 2020[16]. - The company aims to leverage its strong track record and experienced management team to seize growth opportunities in the future[12]. - The company will continue to review its existing business and take appropriate measures to respond to any potential impacts[12]. Financial Position and Ratios - As of March 31, 2021, the company's cash and cash equivalents were approximately 500,000 HKD, down from approximately 32,700,000 HKD a year earlier[33]. - The current ratio decreased to approximately 0.8 times as of March 31, 2021, compared to approximately 1.7 times a year earlier, primarily due to a reduction in cash and cash equivalents[33]. - The company's debt-to-equity ratio was 78.8% as of March 31, 2021, down from 82.8% a year earlier, mainly due to a decrease in bank borrowings[33]. - Administrative expenses decreased by approximately 16,700,000 HKD or about 36.7%, from approximately 45,500,000 HKD to approximately 28,800,000 HKD, primarily due to cost control measures[26]. - Financing costs decreased by approximately 500,000 HKD or 23.8%, from approximately 2,100,000 HKD to approximately 1,600,000 HKD, mainly due to a reduction in average bank borrowings[26]. Corporate Governance - The board of directors is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[64]. - The company has adopted the principles and code provisions of the Corporate Governance Code as set out in the Listing Rules of the Hong Kong Stock Exchange[64]. - During the reporting period, the company complied with the code provisions of the Corporate Governance Code, except for provision A.2.1[65]. - The board consists of capable directors, including executive and independent non-executive directors, ensuring a balanced governance structure[72]. - The chairman and CEO roles are currently held by the same individual, Mr. Zhuang Shuo, who is a co-founder with extensive industry experience[77]. - The board held a total of 9 meetings during the reporting period, with full attendance from all directors[76]. - Independent non-executive directors account for at least one-third of the board, ensuring compliance with the Listing Rules[80]. - The company has established a code of conduct for securities trading, which all directors confirmed adherence to during the reporting period[68]. - The board is responsible for setting strategies and overseeing their implementation, ensuring effective internal controls and risk management systems[81]. Employee Welfare and Training - As of March 31, 2021, the total number of employees in the group was 295, with 19 in Hong Kong and 276 in mainland China[144]. - The group maintained a gender distribution of 19 males and 11 females in Hong Kong, while in mainland China, there were 121 males and 155 females[144]. - The group emphasizes employee welfare by providing competitive compensation packages that exceed local minimum wage standards[145]. - The group has implemented a rigorous policy to ensure fair treatment of all employees, promoting diversity and equal opportunities[142]. - The group has invested in employee training and development opportunities to enhance knowledge and skills[141]. - The group has adhered to all relevant labor laws and regulations in both Hong Kong and mainland China without any violations reported[141]. - The group has established a comprehensive employee handbook detailing HR policies, including compensation, benefits, and dismissal procedures[145]. - The group aims to create a safe and healthy work environment to boost productivity and employee satisfaction[141]. - 100% of employees participated in training programs, with an average training time of 11.7 hours per employee, totaling 3,456 hours across 295 employees[158]. - Employee training participation by gender: 43.7% male and 56.3% female[158]. - Employee training participation by job level: 3.7% management, 38.3% administrative staff, and 58.0% production staff[158]. - Employee training participation by location: 6.4% in Hong Kong and 93.6% in mainland China[158]. - Average training hours by job level: 3.1 hours for management, 7.3 hours for administrative staff, and 15.2 hours for production staff[158]. Environmental and Social Responsibility - The company has committed to improving the accuracy of its ESG reporting and enhancing transparency of its ESG performance[127]. - The company has established an ESG committee involving the board, senior management, and employees to assess and manage ESG-related risks and opportunities[132]. - The ESG committee meets formally every six months to ensure timely execution of ESG measures[132]. - The company aims to provide responsible products and services while fulfilling its environmental and social responsibilities[130]. - The company actively participates in community initiatives, including donations and volunteer services, to create social value in local communities[190]. - The company has implemented various COVID-19 measures, including daily temperature checks and mandatory mask-wearing for all employees[154]. - The company has maintained a zero fatality rate since the start of its annual ESG reporting, with no significant work-related injuries reported during the period[153]. - The company has not reported any non-compliance incidents related to environmental laws and regulations during the reporting period[168]. - The company has initiated a partnership to install a solar renewable energy system on the rooftop of its Hong Kong office, which will sell generated electricity back to the grid, contributing to renewable energy efforts in Hong Kong[189]. - The company plans to procure biodegradable plastic bags for packaging in the near future to reduce environmental impact[187]. Risk Management - The board has established a risk management framework to identify, assess, and manage significant risks affecting the achievement of the group's objectives[110]. - The board conducted an annual review of the effectiveness of the risk management and internal control systems, concluding they are effective[111]. - The company emphasizes the importance of maintaining confidentiality regarding inside information before public disclosure[113]. - The company continues to manage and mitigate identified environmental risks associated with its operations, implementing effective monitoring measures[188].

Revenue Performance - For the six months ended September 30, 2020, KNT Holdings Limited recorded revenue of approximately HKD 41.1 million, a decrease of about 55.6% compared to HKD 92.6 million for the same period in 2019[7]. - Revenue from the United States accounted for approximately 79.6% of total revenue for the six months ended September 30, 2020, down from 90.5% in the same period of 2019[7]. - The company's revenue for the six months ended September 30, 2020, was HKD 41,104,000, a decrease of 55.7% compared to HKD 92,647,000 for the same period in 2019[75]. - Revenue from the United States market was HKD 32,682,000, a decline of 61.0% from HKD 83,810,000 in the previous year[95]. - Sales of special occasion dresses generated revenue of approximately HKD 7.5 million, down from HKD 47.3 million, with sales volume dropping from 336,400 units to 40,600 units[10]. - Sales of bridesmaid dresses decreased from approximately HKD 43.5 million to HKD 27.8 million, with sales volume declining from 144,000 units to 96,800 units[11]. Profitability and Loss - The company reported a loss of approximately HKD 16.5 million for the six months ended September 30, 2020, an increase of about 10.0% compared to a loss of HKD 15.0 million for the same period in 2019[7]. - Gross profit for the same period was HKD 4,144,000, down from HKD 9,804,000 in 2019, reflecting a significant decline in profitability[75]. - The company reported a pre-tax loss of HKD 36,960,000 for the six months ended September 30, 2020, compared to HKD 82,843,000 in 2019[101]. - The net loss for the period was HKD 16,489,000, compared to a net loss of HKD 15,021,000 in 2019, showing a continued trend of losses[76]. - The basic loss per share was HKD 3.2, compared to HKD 2.9 in the previous year, reflecting increased losses on a per-share basis[75]. Cost Management - The company has implemented cost control measures since April 2020 to address prolonged business downturns[9]. - Administrative expenses decreased by approximately HKD 11,200,000 or about 45.0% to approximately HKD 13,700,000, attributed to cost control measures and reduced travel expenses due to COVID-19[17]. - Financing costs increased by approximately HKD 200,000 or about 25.0% to approximately HKD 1,000,000, primarily due to an increase in average bank borrowings[18]. Assets and Liabilities - The company's cash and cash equivalents were approximately HKD 22,700,000 as of September 30, 2020, down from approximately HKD 32,700,000 as of March 31, 2020[24]. - Current assets decreased to HKD 77,203,000 from HKD 121,822,000, with cash and cash equivalents dropping to HKD 36,538,000 from HKD 48,669,000[77]. - Total liabilities decreased to HKD 60,334,000 from HKD 70,916,000, with bank borrowings slightly increasing to HKD 52,191,000 from HKD 49,235,000[78]. - The company's net asset value increased to HKD 69,604,000 as of September 30, 2020, up from HKD 59,481,000 as of March 31, 2020[78]. Shareholder Information - Major shareholders include Strategic Elite Limited holding 45.375% and Total Clarity Investments Limited holding 29.625% of the shares[40]. - The total issued shares as of September 30, 2020, is 520 million[40]. - The stock option plan allows for a maximum of 52,000,000 shares to be issued, representing 10% of the total issued shares as of the mid-term report date[49]. Business Environment and Strategy - The ongoing US-China trade disputes and the impact of COVID-19 have created a challenging business environment, affecting overall performance[8]. - Management is actively seeking new business opportunities to diversify revenue sources and mitigate risks[9]. - The establishment of the sales office in the U.S. has been postponed to the end of 2021 due to the impact of the U.S.-China trade war and COVID-19[39]. Impairment and Receivables - The company reported an impairment loss on trade receivables of HKD 7,524,000, indicating challenges in collecting outstanding debts[75]. - The company recognized an impairment provision for trade receivables amounting to HKD 14,575,000, resulting in net trade receivables of HKD 3,842,000 as of September 30, 2020[105]. Investments and Financing - The company secured a trade financing and revolving loan facility totaling HKD 28,000,000 from Bank A, along with a 16-month term loan of approximately HKD 1,300,000[63]. - A non-revolving term loan facility of HKD 5,000,000 was approved by Bank B, increasing from HKD 4,000,000, with the controlling shareholder providing an unconditional personal guarantee[65]. - The company made investments totaling HKD (18,236,000) in property, plant, and equipment during the six months ended September 30, 2020[83].

Financial Performance - The company reported revenue of approximately HKD 168.5 million for the year ended March 31, 2020, a decrease of about 25.3% from HKD 225.6 million for the year ended March 31, 2019[11]. - Revenue decreased from approximately HKD 225.6 million for the year ended March 31, 2019, to approximately HKD 168.5 million for the year ended March 31, 2020, a decline of about 25.3%[21]. - The company recorded a loss of approximately HKD 47 million for the year ended March 31, 2020, compared to a profit of approximately HKD 12.2 million for the year ended March 31, 2019[28]. - Gross profit fell from approximately HKD 65.3 million to approximately HKD 12.8 million, representing a decrease of about 80.4%[23]. - The gross profit margin decreased from 28.9% for the year ended March 31, 2019, to 7.6% for the year ended March 31, 2020[11]. - Administrative expenses increased by approximately 99.6% from approximately HKD 22.8 million to approximately HKD 45.5 million, primarily due to higher employee costs and professional fees[27]. - Cash and cash equivalents decreased to approximately HKD 32.7 million as of March 31, 2020, down from approximately HKD 97.2 million as of March 31, 2019[32]. - The current ratio declined to approximately 1.7 times as of March 31, 2020, compared to approximately 3.8 times as of March 31, 2019[32]. - The debt-to-equity ratio increased to 82.8% as of March 31, 2020, from 20.0% as of March 31, 2019, due to increased bank borrowings and losses[32]. Business Operations - The company sold approximately 877,100 products, including about 274,000 bridesmaid dresses, 2,400 wedding dresses, and 610,700 special occasion garments[11]. - Revenue from the United States accounted for approximately 93.6% and 87.6% of total revenue for the years ended March 31, 2019, and March 31, 2020, respectively[11]. - The average selling price of bridesmaid dresses decreased from HKD 316 to HKD 291, contributing to the revenue decline[21]. - The company recognized impairment losses totaling approximately HKD 13.4 million on trade receivables, properties, plant and equipment, and right-of-use assets[12]. - The ongoing US-China trade dispute and the impact of COVID-19 have created a challenging business environment, affecting overall performance[13]. - The company is actively seeking new business opportunities to diversify revenue sources and reduce risks[13]. - Cost control measures have been implemented since April 2020 to address the ongoing business downturn[13]. - The company aims to leverage its strong track record and experienced management team to seize growth opportunities in the future[13]. Governance and Management - The company has adopted the principles and code provisions of the Corporate Governance Code as a foundation for its governance practices[62]. - The independent non-executive directors confirmed their independence in accordance with the listing rules, ensuring a balanced board composition[77]. - The chairman and CEO roles are held by the same individual, which the board believes provides strong leadership for effective business decision-making[75]. - The company has established a robust internal control and risk management system to monitor operational and financial performance[78]. - The board is responsible for setting strategies and overseeing their implementation, ensuring accountability and transparency[78]. - The company has committed to regular reviews of board members' contributions and time commitment to their responsibilities[68]. - All directors are required to retire and seek re-election at the annual general meeting, promoting accountability[77]. - The company has established three committees: the audit committee, remuneration committee, and nomination committee, each with specific written terms of reference[84]. - The audit committee consists of four independent non-executive directors, ensuring oversight of the company's financial reporting system and internal control procedures[85]. - Continuous professional development for directors is emphasized, with internal briefings and relevant reading materials provided[82]. Environmental, Social, and Governance (ESG) Initiatives - The company established an ESG committee involving the board, senior management, and employees to assess and manage ESG-related risks and opportunities[129]. - A materiality assessment was conducted to identify significant ESG issues impacting the business and stakeholders, focusing on product responsibility and employee welfare[135]. - The company maintains a strong reputation by providing high-quality products and services, adhering to international standards and local regulations[137]. - The company is committed to protecting personal data and complies with relevant privacy laws, ensuring confidentiality of stakeholder information[140]. - The group emphasizes the importance of sustainable supply chain management, ensuring suppliers adhere to ethical and environmental standards[158]. - The group is committed to reducing its environmental impact while balancing business growth, adhering to all relevant environmental laws and regulations[161]. - Total greenhouse gas emissions (Scope 1 and 2) decreased from 778.9 tCO2e in 2019 to 714.4 tCO2e in 2020, a reduction of approximately 8.3%[166]. - The company will continue to monitor and improve its waste management policies to increase recycling rates and reduce landfill waste[171]. - The company actively plans green activities for employees as part of its sustainable development strategy[129]. Community Engagement - The company made a total of approximately HKD 87,000 in charitable donations during the fiscal year ending March 31, 2020[195]. - The company has actively participated in community activities, including donations and volunteer services, to support local community development[178]. - The company continues to support community initiatives and fulfill its social responsibilities[179]. - The company has evaluated the financial status of charitable organizations before making donations to prevent misuse of funds[178].

Financial Performance - For the six months ended September 30, 2019, KNT Holdings recorded revenue of approximately HKD 92.6 million, a decrease of about 39.8% from HKD 153.9 million for the same period in 2018[7]. - The gross profit margin fell from 24.1% for the six months ended September 30, 2018, to 10.6% for the same period in 2019[7]. - The company reported a loss of approximately HKD 15 million for the six months ended September 30, 2019, compared to a profit of approximately HKD 16.7 million for the same period in 2018[7]. - Gross profit decreased by approximately HKD 27.2 million or 73.5% to HKD 9.8 million, with gross margin dropping from 24.0% to 10.6% due to declines in both sales volume and average selling price[16]. - The company reported a loss before tax of HKD 14,936,000, compared to a profit of HKD 21,141,000 in the previous year[74]. - The net loss for the period was HKD 15,021,000, compared to a profit of HKD 16,676,000 in the prior year[75]. - Basic and diluted loss per share was HKD (2.9), compared to earnings of HKD 4.0 per share in the previous year[74]. - The company reported a tax expense of HKD 85,000 for the six months ended September 30, 2019, a significant decrease from HKD 4,465,000 in the same period of 2018[121]. Revenue Breakdown - Revenue from the sale of special occasion dresses decreased by approximately HKD 34.2 million, while revenue from bridesmaid dresses decreased by approximately HKD 22.3 million[11]. - Sales volume of special occasion dresses dropped from 563,000 units to 336,400 units, and the average selling price decreased from HKD 145 to HKD 141[12]. - Sales volume of bridesmaid dresses decreased from 207,600 units to 144,000 units, with the average selling price dropping from HKD 317 to HKD 302[12]. - The geographical revenue breakdown showed the United States contributing HKD 83,810,000, down 42.5% from HKD 145,759,000 year-on-year[116]. - Revenue for the six months ended September 30, 2019, was HKD 92,647,000, a decrease of 39.7% compared to HKD 153,906,000 for the same period in 2018[74]. - Sales of bridesmaid dresses amounted to HKD 43,535,000, down 33.8% from HKD 65,787,000 year-on-year[114]. Expenses and Costs - Administrative expenses rose by approximately HKD 14.4 million or 137.1% to HKD 24.9 million, driven by salary increases, higher professional fees post-IPO, and increased travel expenses[19]. - Financing costs decreased by approximately HKD 500,000 or 38.5% to HKD 800,000, mainly due to a reduction in average bank borrowings[20]. - The company incurred finance costs of HKD 770,000, down from HKD 1,317,000 in the previous year, indicating improved cost management[74]. - The foreign exchange loss for the period was HKD 2,076,000, compared to a loss of HKD 2,998,000 in the previous year, showing a slight improvement in currency exposure[75]. Cash Flow and Liquidity - As of September 30, 2019, the company's cash and cash equivalents were approximately HKD 63 million, down from HKD 97.2 million as of March 31, 2019, with a current ratio of 1.9, down from 3.8[26]. - Net cash used in operating activities for the six months ended September 30, 2019, was (41,989) thousand HKD, compared to (15,782) thousand HKD in 2018, indicating a significant increase in cash outflow[84]. - Net cash used in investing activities was (9,589) thousand HKD for the six months ended September 30, 2019, compared to a cash inflow of 13,720 thousand HKD in 2018, reflecting a negative shift in investment cash flow[84]. - Total cash and cash equivalents decreased by 34,131 thousand HKD during the six months ended September 30, 2019, compared to a decrease of only 1,333 thousand HKD in 2018, indicating a more challenging liquidity position[85]. - Cash and cash equivalents at the end of the period were 63,033 thousand HKD, significantly up from 9,249 thousand HKD in the previous year, showing a recovery in cash reserves despite the net decrease[85]. - The company reported a bank balance and cash of 71,734 thousand HKD at the end of the period, compared to 18,938 thousand HKD in 2018, indicating a strong improvement in cash management[85]. Shareholder and Capital Structure - Major shareholders include Strategic Elite Limited holding 45.375% and Total Clarity Investments Limited holding 29.625% of the issued shares[44]. - The company’s issued and paid-up capital increased to 520,000,000 shares as of September 30, 2019, reflecting a significant capital increase[139]. - A total of 104,000,000 ordinary shares were issued at an offering price of HKD 0.98 per share, raising total proceeds of HKD 101,920,000[142]. Corporate Governance - The company has adopted the principles and code provisions of the Corporate Governance Code as a basis for its corporate governance practices[66]. - The board confirms compliance with the Corporate Governance Code, except for the separation of roles between the chairman and CEO[68]. - The company has implemented corporate governance measures to monitor compliance with the non-competition agreement by controlling shareholders[63]. - The board believes that the dual role of the chairman and CEO held by Mr. Zhuang enhances effective business decision-making and strategy implementation[68]. Future Plans and Strategies - KNT Holdings aims to strengthen its market position by exploring new customer sources and expanding into new markets[10]. - The company plans to enhance its design and development capabilities to improve its overall competitiveness and market share[10]. - KNT Holdings will continuously assess its business strategies in response to market challenges for sustainable development[10]. - The company will continuously evaluate its business objectives and plans based on market conditions to align with growth and long-term interests[38]. Accounting and Reporting Changes - The company has adopted new accounting standards, including HKFRS 16 on leases, which may impact future financial reporting and asset management strategies[90]. - The company confirmed additional right-of-use assets equivalent to the amount of lease liabilities upon the initial application of HKFRS 16 on April 1, 2019, with a weighted average incremental borrowing rate of 4.0% applied[108]. - The total lease liabilities recognized on April 1, 2019, amounted to HKD 4,643,000, which includes current liabilities of HKD 2,180,000 and non-current liabilities of HKD 2,463,000[109]. - The company has made adjustments to the lease liabilities based on revised discount rates when lease terms change or purchase options are assessed[102].