本交易涉及其他关联方：DJE Kapital AG、Ehrhardt Dr.Jens Alfred Karl。 香港联交所最新数据显示，8月18日，DJE Investment S.A.减持信星集团(01170)26.8万股，每股作价0.55 港元，总金额为14.74万港元。减持后最新持股数目为4012.8万股，持股比例为5.97%。 ...

[Financial Highlights](index=4&type=section&id=Financial%20Highlights) In FY2025, the company's performance significantly declined, with total revenue decreasing by 9.2% to HK$626 million, turning a profit of HK$20.22 million into a loss of HK$33.89 million, and gross margin shifting from 4.2% to -1.8% [Financial Highlights Summary](index=4&type=section&id=Financial%20Highlights_Summary) In FY2025, the company's performance significantly declined, with total revenue decreasing by 9.2% to HK$626 million, turning a profit of HK$20.22 million into a loss of HK$33.89 million, and gross margin shifting from 4.2% to -1.8% Key Financial Indicators for FY2025 | Indicator | FY2025 | FY2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | HKD 625.9 million | HKD 689.3 million | -9.2% | | **Gross Profit/(Loss)** | (HKD 11.38 million) | HKD 29.11 million | N/A | | **Gross Profit/(Loss) Margin** | (1.8)% | 4.2% | -6.0 percentage points | | **Profit/(Loss) Attributable to Equity Holders** | (HKD 33.89 million) | HKD 20.22 million | N/A | | **Basic Earnings/(Loss) Per Share** | (5.05) HK cents | 3.00 HK cents | N/A | | **Total Dividends Per Share for the Year** | 4.0 HK cents | 9.0 HK cents | -55.6% | - As of the end of FY2025, the company held cash and cash equivalents of approximately **HK$353 million**[11](index=11&type=chunk) - In terms of geographical distribution, Europe's revenue contribution increased from 26.4% to **35.2%** in FY2025, becoming the largest market, while the US market share decreased from 26.5% to **24.4%**[21](index=21&type=chunk)[25](index=25&type=chunk) [Chairman's Statement](index=6&type=section&id=Chairman%27s%20Statement) The Chairman's Statement addresses global economic uncertainties, strategic responses, and future outlook, emphasizing resilience and sustainable growth [Macroeconomic Discussion and Outlook](index=8&type=section&id=Chairman%27s%20Statement_Macroeconomic_Discussion) The global economic outlook remains highly uncertain due to US tariff policies, geopolitical risks, and low market sentiment, leading to volatile retail stocking and increased costs - Global economic visibility has decreased from low to extremely limited, with US tariff policies and geopolitical uncertainties creating significant variables for retail and manufacturing industries[34](index=34&type=chunk) - Brand customers are increasingly adopting short lead-time, small-batch order patterns, which will reduce manufacturing efficiency and increase production costs[36](index=36&type=chunk) - In the short term, the 90-day tariff reprieve stimulated inventory replenishment by retailers, leading to order growth for the group in Q1 FY2026, primarily from the more cost-competitive Cambodian factory[37](index=37&type=chunk)[38](index=38&type=chunk) [Strategies and Prospects](index=8&type=section&id=Chairman%27s%20Statement_Strategies) The group focuses on six key strategies including customer development, capacity optimization, operational excellence, cost control, talent development, and financial stability with ESG integration - The company will prioritize six strategic action plans to adapt to the rapidly changing operating environment[45](index=45&type=chunk) - Expertise in high-value athletic and fashion footwear is central to the company's value growth strategy, with continuous investment in labor skills and production equipment upgrades[43](index=43&type=chunk) - There are no immediate plans for factory expansion; instead, the focus will be on optimizing the utilization of existing facilities in Vietnam and Cambodia to enhance economies of scale[47](index=47&type=chunk)[48](index=48&type=chunk) - Cost inflation pressure will be mitigated through lean manufacturing, automation processes, and stringent cost control to maintain competitive advantage amidst market adversity[53](index=53&type=chunk) - Financial strength is the foundation of business resilience, with continued strict control over cash flow and capital expenditure, while integrating sustainability (ESG) as a core pillar of operations[61](index=61&type=chunk)[62](index=62&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a detailed review of the group's financial performance, operational highlights, and financial position for the fiscal year [Financial Results](index=15&type=section&id=Management%20Discussion%20and%20Analysis_Financial_Results) The group faced significant challenges this fiscal year, with revenue declining 9.2% to HK$626 million and a net loss of HK$34 million, primarily due to reduced sales volume, lower average selling prices, and increased labor costs Financial Results Summary | Indicator | FY2025 | FY2024 | | :--- | :--- | :--- | | **Turnover** | HKD 626 million | HKD 689 million | | **Gross Loss/Profit** | (HKD 11 million) | HKD 29 million | | **Net Loss/Profit** | (HKD 34 million) | HKD 20 million | | **Basic Loss/Earnings Per Share** | (5.05) HK cents | 3.00 HK cents | - Performance decline was primarily attributed to: - Reduced economies of scale due to lower revenue - Increased labor wages, with direct labor costs rising from **19.3% to 27.1%** of revenue[93](index=93&type=chunk) - Lower average selling prices due to sluggish retail market conditions[94](index=94&type=chunk) - Expanded fair value loss from investment property revaluation to approximately **HK$16 million**[93](index=93&type=chunk) Key Financial Ratios | Indicator | FY2025 | FY2024 | | :--- | :--- | :--- | | **Inventory Turnover Days** | 95 days | 109 days | | **Net Cash on Hand** | HKD 353 million | HKD 416 million | | **Gearing Ratio** | 0% | 0% | | **Current Ratio** | 2.7 | 3.2 | | **Quick Ratio** | 2.3 | 2.8 | [Operational Review](index=18&type=section&id=Management%20Discussion%20and%20Analysis_Operational_Review) The group navigated a challenging year with weak demand and rising costs, maintaining skilled labor, expanding customer base, and optimizing manufacturing operations while benefiting from stable investment property income - To address macroeconomic challenges, the group maintained stability in its skilled labor force while actively developing new customers, adding **three new European fashion and athletic brands** this year[103](index=103&type=chunk)[104](index=104&type=chunk)[106](index=106&type=chunk) [Manufacturing Operations](index=19&type=section&id=Management%20Discussion%20and%20Analysis_Operational_Review_Manufacturing) The group operates 21 production lines in Vietnam and Cambodia with an annual capacity of approximately 7 million pairs of shoes, utilizing 55.7% of capacity this year, while diversifying market presence with Europe becoming the largest market Production and Market Distribution | Indicator | FY2025 | FY2024 | | :--- | :--- | :--- | | **Number of Production Lines** | 21 lines | - | | **Annual Production Capacity** | Approx. 7 million pairs | - | | **Capacity Utilization Rate** | 55.7% | 57.5% | | **US Market Revenue Share** | 24.4% | 26.5% | | **Europe Market Revenue Share** | 35.2% | 26.4% | | **Other Markets Revenue Share** | 40.4% | 47.1% | Product Category Revenue Contribution | Product Category | FY2025 Share | FY2024 Share | | :--- | :--- | :--- | | **Casual Footwear** | 75.9% | 78.6% | | **Premium Casual Footwear** | 16.8% | 15.2% | | **Infant and Toddler Footwear** | 7.3% | 6.2% | [Investments in Associates](index=21&type=section&id=Management%20Discussion%20and%20Analysis_Operational_Review_Associates) The 40%-owned associate in Vietnam, producing footwear for leading brands, saw increased turnover to HK$1.339 billion but a slight decrease in profit contribution due to higher R&D and trial production costs Associate Performance Contribution | Indicator | FY2025 | FY2024 | | :--- | :--- | :--- | | **Associate Turnover** | Approx. HKD 1.339 billion | Approx. HKD 1.024 billion | | **Group's Share of Profit** | Approx. HKD 23 million | Approx. HKD 24 million | - The associate anticipates strong orders and plans to expand capacity in phases over the next two to three years, with capital expenditures primarily funded by internal resources[131](index=131&type=chunk) [Investment Properties](index=22&type=section&id=Management%20Discussion%20and%20Analysis_Operational_Review_Investment_Properties) The investment property portfolio generated stable rental income of approximately HK$26 million this year, slightly down from the previous year, with successful leasing of the Zhuhai plant - This year, the investment property portfolio generated total rental income of approximately **HK$26 million**, a decrease from HK$28 million in FY2024[135](index=135&type=chunk) [Financial Review](index=23&type=section&id=Management%20Discussion%20and%20Analysis_Financial_Review) The group maintains a robust financial position with HK$353 million in cash and no interest-bearing bank borrowings, supported by strong liquidity ratios and share repurchases to enhance shareholder value Liquidity and Financial Resources | Indicator | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | **Cash and Cash Equivalents** | Approx. HKD 353 million | Approx. HKD 416 million | | **Interest-Bearing Bank Borrowings** | None | None | | **Gearing Ratio** | 0% | 0% | | **Current Ratio** | 2.7 | 3.2 | Share Repurchase Details | Period | Shares Repurchased | Total Consideration (Excl. Transaction Costs) | | :--- | :--- | :--- | | April 2024 | 3,222,000 | HKD 2.655 million | | January 2025 | 204,000 | HKD 0.129 million | | February 2025 | 4,036,000 | HKD 3.173 million | | March 2025 | 1,462,000 | HKD 1.208 million | | **Total** | **8,924,000** | **HKD 7.165 million** | - As of March 31, 2025, the group had approximately **6,400 employees**, with remuneration policies based on market levels and individual performance, complemented by share option and share award schemes[160](index=160&type=chunk) [Environmental, Social and Governance Report](index=26&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) This report details the group's commitment to sustainability, outlining its governance structure, social performance, and environmental initiatives [ESG Governance and Strategy](index=29&type=section&id=ESG_Governance_and_Strategy) The group has established a multi-tiered ESG governance structure, from the Board to working groups, and identified 16 key ESG issues through materiality assessment to guide its sustainability strategy - The group has established a top-down ESG governance structure, with the Board bearing ultimate responsibility, supported by a Sustainability Committee and working groups, ensuring ESG factors are integrated into strategic decisions[175](index=175&type=chunk)[178](index=178&type=chunk)[181](index=181&type=chunk) - Through materiality assessment, the group identified **16 key ESG issues**, with "Energy Consumption," "Packaging Materials," "Health and Safety," and "Development and Training" deemed the most significant to stakeholders and the company[194](index=194&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk) [Social Performance](index=35&type=section&id=ESG_Social_Performance) The group employs 6,050 staff across Vietnam and Cambodia, adheres to labor laws, provides training, manages 304 suppliers, and contributes to the community, while reporting 18 work-related injuries this year Workforce Statistics (As of March 31, 2025) | Category | 2024/25 Period | 2023/24 Period | | :--- | :--- | :--- | | **Total Employees** | 6,050 | 6,100 | | **Female Employee Ratio** | 78.1% | 80.3% | | **Vietnam Employee Ratio** | 51.4% | 49.2% | | **Cambodia Employee Ratio** | 48.6% | 50.8% | | **Total Employee Turnover Rate** | 13% | 13% | Health and Safety Data | Indicator | 2024/25 Period | 2023/24 Period | | :--- | :--- | :--- | | **Number of Work Injuries** | 18 | 19 | | **Lost Workdays** | 163 | 54 | Employee Training Data (2024/25 Period) | Category | Percentage of Employees Trained | Average Training Hours Per Employee | | :--- | :--- | :--- | | **Total** | 53.6% | 24.3 hours | | **Male** | 24.5% | 13.4 hours | | **Female** | 75.5% | 12.9 hours | - This year, the group donated **HK$162,000** to the community to fulfill its social responsibilities[283](index=283&type=chunk)[287](index=287&type=chunk) [Environmental Performance](index=52&type=section&id=ESG_Environmental_Performance) The group's total GHG emissions increased to 7,899.6 tonnes CO2e, energy consumption rose by 24%, and water usage by 12%, but hazardous and non-hazardous waste generation significantly decreased by 39.6% and 24.1% respectively Greenhouse Gas Emissions (tonnes of CO2e) | Scope | 2024/25 Period | 2023/24 Period | | :--- | :--- | :--- | | **Scope 1 (Direct)** | 166.8 | 153.4 | | **Scope 2 (Indirect - Electricity)** | 7,293.3 | 6,584.0 | | **Scope 3 (Other Indirect)** | 439.5 | 24.5 | | **Total Emissions** | 7,899.6 | 6,761.9 | Resource Consumption and Waste Generation | Indicator | Unit | 2024/25 Period | 2023/24 Period | Change | | :--- | :--- | :--- | :--- | :--- | | **Total Energy Consumption** | kWh | 14,781,110.6 | 11,965,023.7 | +23.5% | | **Total Water Consumption** | Cubic Meters | 338,166.0 | 301,431.0 | +12.2% | | **Hazardous Waste** | kg | 57,683.5 | 95,536.5 | -39.6% | | **Non-Hazardous Waste** | kg | 540,447.9 | 712,170.4 | -24.1% | - The group identified physical risks from climate change (e.g., extreme weather leading to supply chain disruptions) and transition risks (e.g., increased costs due to climate regulation changes), and has developed corresponding response strategies[364](index=364&type=chunk)[366](index=366&type=chunk)[368](index=368&type=chunk) [Corporate Governance Report](index=101&type=section&id=Corporate%20Governance%20Report) This report details the company's adherence to high corporate governance standards, including board structure, committee functions, and risk management practices [Corporate Governance Practices](index=102&type=section&id=Corporate_Governance_Practices) The company maintained high corporate governance standards, fully complying with the HKEx Listing Rules' Corporate Governance Code throughout the review period, with the Audit Committee overseeing governance responsibilities - The company applied and complied with all code provisions of the Corporate Governance Code throughout the entire review period[426](index=426&type=chunk) - The company has adopted a code of conduct for directors' securities transactions that does not deviate from the Model Code, and all directors have confirmed compliance upon inquiry[427](index=427&type=chunk) [Board of Directors](index=104&type=section&id=Board_of_Directors) The Board comprises 9 members, including 3 executive, 3 non-executive, and 3 independent non-executive directors, ensuring clear responsibilities, independent oversight, and continuous professional development - The Board consists of **9 members**, including **3 executive directors**, **3 non-executive directors**, and **3 independent non-executive directors**, meeting the Listing Rules' requirements for the number of independent non-executive directors[430](index=430&type=chunk)[432](index=432&type=chunk)[433](index=433&type=chunk)[434](index=434&type=chunk) - The roles of Chairman (Ms. Wong Sau Ngan) and Chief Executive Officer (Mr. Chan Yik Mo) are separate, with clearly defined responsibilities, in compliance with Corporate Governance Code provision C.2.1[434](index=434&type=chunk) - All directors participate in continuous professional development, and newly appointed independent non-executive director Mr. Lo Ka Kin has received legal training on the responsibilities of listed company directors[452](index=452&type=chunk)[454](index=454&type=chunk) [Board Committees](index=110&type=section&id=Board_Committees) The company has established Remuneration, Nomination, and Audit Committees to assist the Board in overseeing executive compensation, board composition and diversity, and financial reporting and internal controls, respectively - The Remuneration Committee comprises **1 executive director** and **3 independent non-executive directors**, responsible for reviewing and approving remuneration packages for directors and senior management, including share options and share awards[467](index=467&type=chunk)[468](index=468&type=chunk)[472](index=472&type=chunk) - The Nomination Committee is responsible for reviewing the Board's structure, size, and composition, and has adopted a Board Diversity Policy and Nomination Policy to ensure a balanced mix of skills and experience on the Board[478](index=478&type=chunk)[479](index=479&type=chunk)[486](index=486&type=chunk) - The Audit Committee consists of **1 non-executive director** and **3 independent non-executive directors**, responsible for reviewing financial statements, internal control systems, and fulfilling corporate governance duties[499](index=499&type=chunk)[500](index=500&type=chunk)[503](index=503&type=chunk) [Risk Management and Internal Controls](index=118&type=section&id=Risk_Management_and_Internal_Controls) The Board is responsible for maintaining robust risk management and internal control systems, reviewed annually, employing a 'three lines of defense' framework to address key risks like global economic uncertainty and rising operational costs - The group adopts a "three lines of defense" corporate governance structure, including daily monitoring by operational management, risk oversight by the finance and compliance team, and independent internal audit by external professional institutions[532](index=532&type=chunk) Key Risk Identification | Risk Area | Primary Risks | | :--- | :--- | | **Strategic Risk** | Increasingly uncertain global economic outlook | | **Operational Risk** | Increased operational cost pressure | | **Financial Risk** | No significant risks identified | | **Compliance Risk** | No significant risks identified | - The Board, through the Audit Committee, conducted an annual review of the risk management and internal control systems and deemed them effective and adequate for FY2025[518](index=518&type=chunk)[539](index=539&type=chunk) [Report of the Directors](index=143&type=section&id=Report%20of%20the%20Directors) This report provides an overview of the group's business activities, financial position, and corporate affairs for the fiscal year, including share repurchases and significant customer concentration [Business Overview and Financial Review](index=144&type=section&id=Directors_Report_Overview) The report details the group's footwear manufacturing and property investment activities, noting a loss for the year, a proposed special final dividend, share repurchases, and high customer concentration with 91.8% of sales from the top five clients - The Board recommends a special final dividend of **2.0 HK cents per share**, bringing the total annual dividend to **4.0 HK cents per share** when combined with the interim dividend already paid[617](index=617&type=chunk) - During the year, sales to the **top five customers accounted for 91.8%** of total sales, with the largest customer contributing as much as **71.5%**, indicating significant customer concentration risk[642](index=642&type=chunk) Annual Share Repurchase Summary | Period | Shares Repurchased | Total Consideration (HKD thousand) | | :--- | :--- | :--- | | April 2024 | 3,222,000 | 2,655 | | January 2025 | 204,000 | 129 | | February 2025 | 4,036,000 | 3,173 | | March 2025 | 1,462,000 | 1,208 | | **Total** | **8,924,000** | **7,165** | [Directors' and Chief Executives' Interests in Shares](index=152&type=section&id=Directors%27%20and%20Chief%20Executives%27%20Interests%20in%20Shares) As of March 31, 2025, the Chairman, Ms. Wong Sau Ngan, held 39.37% of the company's shares, with King Strike Limited as a major shareholder, and all disclosures comply with SFO requirements - The Chairman of the Board, Ms. Wong Sau Ngan, held a total of **264,460,041 shares**, representing **39.37%** of the issued shares, through personal holdings and controlled corporations, including King Strike Limited[667](index=667&type=chunk)[669](index=669&type=chunk) - King Strike Limited, as a substantial shareholder, held **263,960,041 shares**, representing **39.29%** of the company's issued share capital[687](index=687&type=chunk) - Other than the disclosed information, no other interests or short positions in shares, underlying shares, or debentures were required to be recorded by the company's directors and substantial shareholders under the Securities and Futures Ordinance[673](index=673&type=chunk)[689](index=689&type=chunk) [Audited Financial Statements](index=157&type=section&id=Audited%20Financial%20Statements) This section presents the group's audited financial statements, including the independent auditor's report, consolidated statements, and detailed notes, providing a comprehensive view of financial performance and position [Independent Auditor's Report](index=157&type=section&id=Independent_Auditor's_Report) Ernst & Young issued an unmodified opinion on the consolidated financial statements for the year ended March 31, 2025, highlighting key audit matters such as investment property fair value, tax provisions, and non-financial asset impairment assessments - The auditor believes that the consolidated financial statements truly and fairly reflect the group's financial position and performance in accordance with Hong Kong Financial Reporting Standards, and have been properly prepared[698](index=698&type=chunk) - Key audit matters include: - **Estimation of fair value of investment properties**: Involves judgments highly dependent on estimates and assumptions regarding rental values and market yields[701](index=701&type=chunk)[706](index=706&type=chunk) - **Taxation**: The determination of tax provisions involves complex judgments due to the group's operations across multiple tax jurisdictions[712](index=712&type=chunk) - **Impairment assessment of non-financial assets**: The assessment of recoverable amounts for property, plant, and equipment and right-of-use assets involves significant judgments on future cash flows, growth rates, and discount rates[719](index=719&type=chunk) [Consolidated Financial Statements](index=166&type=section&id=Consolidated_Financial_Statements) As of March 31, 2025, the group reported total assets of HK$1.394 billion, total liabilities of HK$323 million, and total equity of HK$1.072 billion, with a net loss attributable to equity holders of HK$33.89 million [Consolidated Statement of Profit or Loss](index=166&type=section&id=Consolidated_Statement_of_Profit_or_Loss) For the year, the group reported revenue of HK$625.9 million, a gross loss of HK$11.38 million, and a loss attributable to equity holders of HK$33.89 million, primarily due to sales costs exceeding revenue and other expenses Consolidated Statement of Profit or Loss Summary (HKD thousand) | Item | FY2025 | FY2024 | | :--- | :--- | :--- | | **Revenue** | 625,876 | 689,269 | | **Gross Profit/(Loss)** | (11,384) | 29,106 | | **Profit/(Loss) Before Tax** | (44,424) | 12,622 | | **Profit/(Loss) for the Year Attributable to Owners of the Company** | (33,890) | 20,221 | [Consolidated Statement of Financial Position](index=168&type=section&id=Consolidated_Statement_of_Financial_Position) As of March 31, 2025, total assets were HK$1.394 billion, with non-current assets at HK$778 million (including HK$467 million in investment properties), total liabilities at HK$323 million, and net assets of HK$1.072 billion, indicating strong short-term solvency Consolidated Statement of Financial Position Summary (HKD thousand) | Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | **Total Non-Current Assets** | 778,213 | 788,325 | | **Total Current Assets** | 616,004 | 721,120 | | **Total Assets** | **1,394,217** | **1,509,445** | | **Total Current Liabilities** | 225,904 | 226,197 | | **Total Non-Current Liabilities** | 96,728 | 97,648 | | **Total Liabilities** | **322,632** | **323,845** | | **Total Equity** | **1,071,585** | **1,185,600** | [Consolidated Statement of Cash Flows](index=172&type=section&id=Consolidated_Statement_of_Cash_Flows) Net cash from operating activities significantly decreased to HK$4.03 million, while investing activities generated HK$67.35 million, and financing activities resulted in a net outflow of HK$75.14 million, leading to a net decrease in cash and cash equivalents of HK$3.76 million Consolidated Statement of Cash Flows Summary (HKD thousand) | Item | FY2025 | FY2024 | | :--- | :--- | :--- | | **Net Cash Flows from Operating Activities** | 4,031 | 45,041 | | **Net Cash Flows from Investing Activities** | 67,354 | 2,907 | | **Net Cash Flows Used in Financing Activities** | (75,141) | (28,816) | | **Net Increase/(Decrease) in Cash and Cash Equivalents** | (3,756) | 19,132 | [Notes to Financial Statements](index=175&type=section&id=Notes%20to%20Financial%20Statements) The notes provide detailed explanations of the financial statements' basis of preparation, accounting policies, key judgments, and estimates, with in-depth analysis of segment information, revenue, investment property valuation, and receivables - **Segment Information**: The group operates in two main segments: "Manufacturing and Sales of Footwear Products" and "Property Investment," with footwear contributing the vast majority of revenue but incurring a loss, while property investment provides stable rental income and profit[968](index=968&type=chunk)[972](index=972&type=chunk) - **Investment Properties**: As of March 31, 2025, investment properties had a fair value of **HK$467 million**, with a revaluation fair value loss of **HK$15.57 million** recorded for the year[1068](index=1068&type=chunk) - **Trade Receivables**: Net trade receivables decreased from HK$167 million to **HK$112 million**, with the vast majority of balances aged within 90 days, indicating good collection performance[1091](index=1091&type=chunk)[1094](index=1094&type=chunk)

[Financial Highlights & Results Announcement](index=1&type=section&id=Financial%20Highlights%20%26%20Results%20Announcement) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) For the year ended March 31, 2025, the Group's revenue decreased by 9.2% to HK$626 million, shifting from profit to a HK$33.89 million loss, with gross margin turning negative and total dividends per share decreasing by 55.6% to 4.0 HK cents FY2025 Financial Highlights | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue (HK$ thousand) | 625,876 | 689,269 | -9.2% | | Gross Profit / (Loss) (HK$ thousand) | (11,384) | 29,106 | N/A | | Gross Profit Margin / (Loss Margin) (%) | (1.8)% | 4.2% | -6.0 percentage points | | Profit / (Loss) Attributable to Owners of the Company for the Year (HK$ thousand) | (33,890) | 20,221 | N/A | | Basic Earnings / (Loss) Per Share (HK cents) | (5.05) | 3.00 | N/A | | Total Dividends Per Share for the Year (HK cents) | 4.0 | 9.0 | -55.6% | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements for the year show the Group shifted from profit to loss, primarily due to decreased revenue and cost of sales pressure leading to negative gross profit, alongside reduced net assets and cash and cash equivalents [Consolidated Income Statement](index=2&type=section&id=Consolidated%20Income%20Statement) This year's revenue was HK$626 million, down 9.2%, resulting in a HK$11.38 million gross loss compared to last year's gross profit, and an annual loss of HK$36.67 million, with HK$33.89 million attributable to owners and a basic loss per share of 5.05 HK cents Consolidated Income Statement Key Figures | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 625,876 | 689,269 | | Gross Profit / (Loss) | (11,384) | 29,106 | | Profit / (Loss) Before Tax | (44,424) | 12,622 | | Profit / (Loss) for the Year | (36,666) | 20,057 | | Loss Attributable to Owners of the Company | (33,890) | 20,221 | | Basic Loss Per Share (HK cents) | (5.05) | 3.00 | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive expense for the year was HK$43.86 million, a significant increase from HK$3.47 million last year, primarily due to the annual loss and exchange differences from translating foreign operations - Total comprehensive expense for the year was **HK$43.86 million**, significantly higher than **HK$3.47 million** last year, primarily impacted by the annual loss and exchange differences[7](index=7&type=chunk) [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2025, the Group's net assets decreased to HK$1.072 billion from HK$1.186 billion last year, with net current assets reducing and cash and cash equivalents decreasing from HK$416 million to HK$353 million Consolidated Balance Sheet Summary | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Non-Current Assets | 778,213 | 788,325 | | Total Current Assets | 616,004 | 721,120 | | Total Current Liabilities | 225,904 | 226,197 | | Net Assets | 1,071,585 | 1,185,600 | | Cash and Cash Equivalents | 352,694 | 415,580 | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) The financial statements are prepared under Hong Kong Financial Reporting Standards, with the Group's business divided into 'Manufacturing and Sale of Footwear Products' and 'Property Investment' segments, where the footwear business recorded a loss, dividend policy became conservative, and accounts receivable days outstanding slightly increased [Basis of Preparation & Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20%26%20Accounting%20Policies) The financial statements are prepared on a historical cost basis, with several revised Hong Kong Financial Reporting Standards adopted for the first time, which the Group assessed had no significant impact on its financial position or performance - The Group has adopted HKFRS 16 and amendments to HKAS 1 and HKAS 7 for the first time, but assessed that these revisions had no impact on its financial statements[15](index=15&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) [Operating Segment Information](index=9&type=section&id=Operating%20Segment%20Information) The Group's core 'Manufacturing and Sale of Footwear Products' segment loss expanded to HK$55.43 million, while 'Property Investment' segment profit decreased to HK$5.91 million; European market revenue grew, while US, Asia, and other regions declined, with sales to largest customer A decreasing and customer B no longer a major client Segment Results (HK$ thousand) | Segment | 2025 Results | 2024 Results | | :--- | :--- | :--- | | Manufacturing and Sale of Footwear Products | (55,425) | (19,346) | | Property Investment | 5,912 | 21,655 | Revenue by Geographical Region (HK$ thousand) | Region | 2025 | 2024 | | :--- | :--- | :--- | | United States of America | 152,412 | 182,333 | | Europe | 220,527 | 182,133 | | Asia | 124,975 | 133,634 | | Others | 127,962 | 191,169 | - Sales to the largest customer A decreased from **HK$534 million** to **HK$448 million** - Customer B, which accounted for over 10% last year, had sales below the 10% disclosure threshold this year, indicating a shift in customer concentration[26](index=26&type=chunk) [Dividends](index=16&type=section&id=Dividends) The Board recommended a special final dividend of 2.0 HK cents per share, with no final dividend, bringing the total dividend for the year to 4.0 HK cents per share, a significant decrease from 9.0 HK cents last year Proposed Dividend Details | Dividend Type | 2025 (Per Share) | 2024 (Per Share) | | :--- | :--- | :--- | | Final Dividend | Nil | 0.2 HK cents | | Special Final Dividend | 2.0 HK cents | 6.8 HK cents | [Accounts Receivable & Payable](index=16&type=section&id=Accounts%20Receivable%20%26%20Payable) At year-end, total accounts receivable decreased from HK$167 million to HK$112 million, with most balances within 90 days, while total accounts payable increased from HK$102 million to HK$111 million, maintaining a healthy aging structure - Accounts receivable are primarily related to a few well-known customers, with credit terms typically ranging from **30 to 90 days**, and the Group implements strict credit risk control[36](index=36&type=chunk) Accounts Receivable and Payable Aging Analysis (Within 90 Days) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Accounts Receivable (Within 90 Days) | 109,257 | 121,214 | | Accounts Payable (Within 90 Days) | 92,227 | 66,030 | [Chairman's Statement & Management Discussion and Analysis](index=19&type=section&id=Chairman%27s%20Statement%20%26%20MD%26A) [Chairman's Statement](index=19&type=section&id=Chairman%27s%20Statement) The Chairman's Statement highlights severe manufacturing challenges this year, but the Group demonstrated competitive advantages and resilience through robust financials, cross-regional production, and advanced footwear technology; looking ahead, the Group will focus on six strategic action plans to navigate the complex market [Macroeconomic Discussion](index=20&type=section&id=Macroeconomic%20Discussion) The global economic outlook remains uncertain with extremely low market visibility; US tariff measures, geopolitical uncertainties, and Middle East tensions introduce significant variables for retail and manufacturing, disrupting retailers' inventory strategies, leading to continued conservative ordering by brand clients with short lead times and small batches - US government's reciprocal tariff measures and escalating geopolitical uncertainties have led to chaotic retailer inventory strategies and conservative purchasing behavior[43](index=43&type=chunk) - In the short term, the **ninety-day tariff reprieve** stimulated inventory replenishment, leading to a temporary surge in orders, but the Group remains conservative, preparing for market volatility after the buffer period ends[43](index=43&type=chunk) [Strategy and Outlook](index=20&type=section&id=Strategy%20and%20Outlook) The Group will focus on advancing six strategic action plans to respond to market changes, with no short-term expansion plans, instead optimizing existing facilities in Vietnam and Cambodia; the core strategy involves continued investment in labor skills and equipment upgrades, focusing on high-value footwear R&D and production, actively developing new clients, implementing strict cost control, and promoting ESG initiatives - The Group will focus on advancing six strategic action plans: enhancing business momentum, capacity planning, pursuing operational excellence, mitigating cost inflation, talent development, and resilience and sustainability[45](index=45&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk)[53](index=53&type=chunk) - There are no short-term plans for factory expansion; instead, the focus will be on optimizing existing facilities in **Vietnam and Cambodia**, while considering long-term expansion to other production bases to address tariff issues[47](index=47&type=chunk) - To address cost pressures, the Group will maintain competitive advantages through lean manufacturing, automation, and strict cost control, but acknowledges that direct labor costs remain high in the short term due to the need to maintain quick turnaround capabilities[50](index=50&type=chunk) [Management Discussion and Analysis](index=27&type=section&id=Management%20Discussion%20and%20Analysis) Management provided an in-depth analysis of this year's performance, noting a financial shift from profit to loss due to decreased revenue and increased costs; operationally, the Group actively addressed weak market demand and rising production costs through geographical diversification and new client acquisition, maintaining a robust financial position with no bank borrowings and continuing share repurchases to enhance shareholder value [Financial Performance Review](index=27&type=section&id=Financial%20Performance%20Review) This year's turnover decreased by 9.2% to HK$626 million, primarily due to a 6.5% decline in business volume and a 5.9% drop in average selling price, resulting in a HK$11 million gross loss due to reduced economies of scale, rising labor wages, and lower average selling prices, and a net loss attributable to owners of approximately HK$34 million compared to last year's net profit of HK$20 million - Turnover decreased by **9.2%** to approximately **HK$626 million**, with business volume (pairs) decreasing by **6.5%** and average selling price recording a **5.9%** drop[60](index=60&type=chunk) - Shifted from profit to a net loss of approximately **HK$34 million**, primarily due to gross profit turning into gross loss, and the fair value loss on investment properties expanding to approximately **HK$16 million**[62](index=62&type=chunk)[64](index=64&type=chunk) Key Financial Ratios Changes | Ratio | 2025 | 2024 | | :--- | :--- | :--- | | Accounts Receivable Days Turnover (days) | 82 | 80 | | Accounts Payable Days Turnover (days) | 100 | 123 | | Inventory Days Turnover (days) | 95 | 109 | | Gearing Ratio (%) | 0% | 0% | [Operational Review](index=30&type=section&id=Operational%20Review) The Group's production bases in Vietnam and Cambodia addressed challenges of weak demand and rising costs; to diversify risk, three new European brand clients were added this year, reducing major clients' share of total turnover from 95% to 74.5%, with production centered in Vietnam (51.1% output) and Cambodia (48.9%), and investment in an associate contributing HK$23 million in profit - To diversify the market, three new European fashion and sports brands were added this year, reducing the proportion of major clients (Cat, Dr. Martens, etc.) in total turnover from **95.0%** to **74.5%**[67](index=67&type=chunk)[72](index=72&type=chunk) - The revenue contribution from the European market increased from **26.4%** to **35.2%**, while the US market share decreased from **26.5%** to **24.4%**[70](index=70&type=chunk) - The **40%**-owned Vietnamese associate showed strong business performance, with turnover increasing to approximately **HK$1.339 billion**, contributing approximately **HK$23 million** in share of profit to the Group[75](index=75&type=chunk) [Financial Review](index=35&type=section&id=Financial%20Review) The Group maintained a robust financial position, holding approximately HK$353 million in cash at year-end, with no interest-bearing bank borrowings and a zero gearing ratio, and a current ratio of 2.7; the Group adopted a conservative foreign exchange risk management policy and repurchased 8.924 million shares during the year for approximately HK$7.17 million - As of March 31, 2025, the Group's cash and cash equivalents were approximately **HK$353 million**, with no interest-bearing bank borrowings and a **zero** gearing ratio[77](index=77&type=chunk) - During the year, the company repurchased **8,924,000** ordinary shares on the Stock Exchange for a total consideration of approximately **HK$7.17 million**, aiming to enhance net assets per share and earnings per share[80](index=80&type=chunk)[81](index=81&type=chunk) [Corporate Governance & Other Matters](index=18&type=section&id=Corporate%20Governance%20%26%20Other%20Matters) [Dividends and Share Repurchase](index=18&type=section&id=Dividends%20and%20Share%20Repurchase) The Group announced a special final dividend of 2.0 HK cents per share, with no final dividend; additionally, the company actively conducted share repurchases during the year, buying back and canceling 8,924,000 ordinary shares to enhance shareholder returns - The Directors recommended a special final dividend of **2.0 HK cents** per ordinary share for the year, with no final dividend[39](index=39&type=chunk) - During the fiscal year, **8,924,000** ordinary shares were repurchased at prices ranging from **HK$0.63 to HK$0.88** per share, considered a constructive action to enhance shareholder returns[39](index=39&type=chunk)[80](index=80&type=chunk) [Employee and Remuneration Policy](index=37&type=section&id=Employee%20and%20Remuneration%20Policy) As of March 31, 2025, the Group employed approximately 6,400 staff; remuneration policy is based on market levels and individual performance, with share option and share award schemes to incentivize and retain talent, and during the year, the trustee purchased shares for the share award scheme, granting some award shares and share options - As of March 31, 2025, the Group employed approximately **6,400** staff[82](index=82&type=chunk) - During the year, the trustee of the share award scheme purchased **8,884,000** shares, and **3,744,000** award shares were granted; additionally, the Group granted **2,800,000** share options[82](index=82&type=chunk) [Corporate Governance](index=38&type=section&id=Corporate%20Governance) The company complied with the Corporate Governance Code in the Stock Exchange Listing Rules during the year; the Audit Committee, comprising three independent non-executive directors and one non-executive director, reviewed the annual consolidated results, deeming them prepared in accordance with accounting standards and adequately disclosed, and all directors confirmed compliance with the standard code for securities transactions - The Directors confirmed that the company complied with the Corporate Governance Code set out in Appendix C1 to the Listing Rules during the year[83](index=83&type=chunk) - The Audit Committee reviewed the annual results with management and external auditor Ernst & Young, expressing satisfaction with their compliance and adequacy[84](index=84&type=chunk) [Publication of Announcement and Report](index=39&type=section&id=Publication%20of%20Announcement%20and%20Report) The financial figures in this preliminary results announcement have been agreed with the draft financial statements by the company's auditor, Ernst & Young; the full annual report will be dispatched to shareholders in due course and published on the Stock Exchange and company website - The full-year results announcement and annual report will be available for review on the Stock Exchange website (www.hkex.com.hk) and the company's website[87](index=87&type=chunk)

Group 1 - The company, Xinxing Group, is experiencing a downward trend in revenue for the first half of the fiscal year ending September 30, 2024, which is expected to continue into the remaining period of the fiscal year ending March 31, 2025 [1] - The anticipated loss for the period is estimated to be between approximately HKD 33 million and HKD 38 million, compared to a profit in the previous year [1] - The revenue is projected to decrease by approximately 10% year-on-year, leading to reduced economies of scale, alongside significant increases in labor costs compared to the same period last year [1] Group 2 - The company plans to continue strategic investments to strengthen production capabilities, including retaining a skilled labor force to demonstrate operational reliability [1] - The company aims to optimize its product mix by collaborating with specific clients to focus on higher average selling price products, thereby advancing its value growth strategy [1] - The company will adhere to capital management and cost control programs to maintain financial resilience [1] Group 3 - The U.S. government announced reciprocal tariff measures to be implemented globally starting April 2, 2025, which is expected to exacerbate existing challenges and uncertainties for the company [2] - The company anticipates that the order pipeline will remain uncertain due to evolving U.S. tariff policies on footwear products from Vietnam and Cambodia [2] - Despite the expected short-term cost increases from these strategic measures, the company believes they will strengthen its long-term advantages and recovery capabilities [2]

Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 326,065,000, a decrease of 14.9% compared to HKD 383,032,000 in the same period of 2023[2] - Gross profit for the same period was HKD 2,956,000, representing a significant decline of 86.5% from HKD 21,819,000, with a gross margin of 0.9% compared to 5.7%[2] - The loss attributable to equity holders of the company was HKD 12,967,000, compared to a profit of HKD 21,909,000 in the previous year[2] - Basic and diluted earnings per share were both HKD (1.93), down from HKD 3.24 in the prior year[8] - The total comprehensive loss for the period was HKD 5,893,000, compared to a comprehensive income of HKD 9,396,000 in the same period last year[10] - The adjusted loss before tax for the manufacturing and sales of footwear products was HKD (25,108) for the six months ended September 30, 2024, compared to a loss of HKD (1,821) in the same period of 2023[23] - The group’s net loss for the six months ended September 30, 2024, was HKD (13,582), compared to a profit of HKD 22,062 in the same period of 2023[23] - Revenue for the period was approximately HKD 326,100,000, down 14.9% year-on-year from HKD 383,000,000, primarily due to an 8.5% decrease in business volume and a 7.4% drop in average selling price[53] - Gross profit fell by 86.5% to approximately HKD 3,000,000, down from HKD 21,800,000 in the previous year, attributed to reduced economies of scale and increased labor costs[56] Assets and Liabilities - Total assets as of September 30, 2024, amounted to HKD 1,441,662, a decrease from HKD 1,509,445 as of March 31, 2024[23] - Total liabilities as of September 30, 2024, were HKD 312,365, down from HKD 323,845 as of March 31, 2024[23] - Non-current assets totaled HKD 794,254,000, slightly up from HKD 788,325,000 as of March 31, 2024[12] - Current assets decreased to HKD 647,408,000 from HKD 721,120,000, primarily due to a reduction in cash and cash equivalents[12] - Current liabilities were HKD 213,094,000, down from HKD 226,197,000, indicating improved liquidity management[14] Cash and Liquidity - Total cash and cash equivalents amounted to approximately HKD 323,000,000 as of September 30, 2024[2] - The company maintained a healthy liquidity position with net cash of approximately HKD 323,000,000 as of September 30, 2024, compared to HKD 416,000,000 as of March 31, 2024[59] - The group's current ratio was approximately 3.0 and the quick ratio was about 2.6 as of September 30, 2024, compared to 3.2 and 2.8 respectively as of March 31, 2024[80] - The group has no interest-bearing bank borrowings as of September 30, 2024, maintaining a leverage ratio of zero[80] - The group secured a total bank credit of approximately HKD 40 million as of September 30, 2024, with none utilized[80] Dividends - The company declared a special interim dividend of HKD 2.0 per share, compared to HKD 0.5 in the previous year[2] - The board proposed a special interim dividend of HKD 0.02 per share, up from HKD 0.005 per share in the previous year, while no interim dividend was recommended for this period[60] - The board declared a special interim dividend of HKD 0.02 per ordinary share, amounting to approximately HKD 13.6 million, to be paid on January 27, 2025[86] Operational Highlights - The group operates 21 production lines with an annual capacity of approximately 7 million pairs of footwear, with a utilization rate of 58.3%, down from 60.1% in the previous year[64] - The group added two new brands to its customer portfolio during the period, focusing on high average selling price activewear brands[65] - The group’s production center in southern Vietnam contributed 52.6% of total output, while the Cambodian facility accounted for 47.4%[67][68] - The company faced challenges in its main export markets, leading to a weak order pipeline during the reporting period[52] - The company’s joint venture in Central Vietnam reported a decrease in profit contribution to approximately HKD 5,800,000, down from HKD 13,600,000 in the previous year[57] Employee and Sustainability Initiatives - The total number of employees increased to approximately 6,400 as of September 30, 2024, compared to about 6,200 a year earlier[92] - The group is actively enhancing employee skills and upgrading facilities to meet the increasingly complex and diverse production demands[77] - The group is committed to sustainable production practices and has implemented new measures to reduce its carbon footprint[77] Governance and Compliance - The audit committee consists of three independent non-executive directors and one non-executive director, responsible for reviewing and supervising the financial reporting process and internal control systems of the group[95] - The committee has reviewed the unaudited interim condensed consolidated financial information for the six months ending September 30, 2024, and confirmed that the preparation complies with applicable accounting standards and regulations[96] - All directors confirmed compliance with the standards set out in the code of conduct for securities transactions by directors during the six months ending September 30, 2024[96] - The interim report containing all information required by the listing rules will be sent to shareholders and is available on the Hong Kong Stock Exchange website and the company's website[98]

[Corporate Information](index=2&type=section&id=Corporate%20Information) [Corporate Information](index=2&type=section&id=Corporate%20Information) This section provides core corporate information, including board members, key dates, and listing details - The company's Executive Directors include Ms. Wong Hsiu-Tuen, Mr. Wong Ha-Chio, and Mr. Chan Yik-Mo[4](index=4&type=chunk) - The company's shares are listed on the Hong Kong Stock Exchange with the stock code 01170[8](index=8&type=chunk) - Key dates include the Annual General Meeting (August 28, 2024) and the proposed final and special final dividend payment date (around September 30, 2024)[9](index=9&type=chunk)[11](index=11&type=chunk) [Financial Highlights](index=4&type=section&id=Financial%20Highlights) [Financial Highlights](index=4&type=section&id=Financial%20Highlights) The Group's revenue and profit declined significantly in FY2024, though it maintained a strong cash position and doubled its annual dividend **Key Financial Indicators for FY2024** | Indicator | FY2024 | FY2023 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | HK$689 million | HK$1,062 million | -35.1% | | **Gross Profit** | HK$29.11 million | HK$89.62 million | -67.5% | | **Gross Margin** | 4.2% | 8.4% | -4.2pp | | **Profit Attributable to Equity Holders** | HK$20.22 million | HK$53.41 million | -62.1% | | **Basic Earnings Per Share** | 3.00 HK Cents | 7.92 HK Cents | -62.1% | | **Total Dividend Per Share for the Year** | 9.0 HK Cents | 4.5 HK Cents | +100% | - As of the end of FY2024, the company held approximately **HK$416 million in cash and cash equivalents**[12](index=12&type=chunk) - Geographically, the revenue contribution from the **US market decreased from 37.3% to 26.5%**, while the shares from Europe and Asia & other regions increased[23](index=23&type=chunk)[24](index=24&type=chunk) [Chairman's Statement](index=6&type=section&id=Chairman's%20Statement) [Chairman's Statement](index=6&type=section&id=Chairman's%20Statement_Summary) The Chairman's report highlights the Group's resilience amid macroeconomic challenges, focusing on six strategic areas for future growth and recovery - FY2024 marked the company's **30th anniversary** of listing on the Main Board of the Hong Kong Stock Exchange[31](index=31&type=chunk) - The Group built operational resilience by optimizing its supply chain and maintaining healthy financial fundamentals amid weak consumption in key markets like the US and Europe[35](index=35&type=chunk)[36](index=36&type=chunk) - The Group will continue to focus on six strategic action areas: enhancing business momentum, capacity planning, pursuing operational excellence, mitigating cost inflation, talent development, and resilience and sustainability[41](index=41&type=chunk) - Looking ahead to the second half of FY2025, customer procurement is expected to gradually recover as retail inventory levels improve, leading to a more positive outlook[37](index=37&type=chunk)[79](index=79&type=chunk) [Strategies and Outlook](index=8&type=section&id=Strategies%20and%20Outlook) The Group's core strategy focuses on value over volume growth, supported by initiatives in R&D, capacity optimization, operational excellence, and cost control - **Business and R&D**: Relocated R&D facilities from Zhuhai to the southern Vietnam production base and established an outsole operation to provide one-stop product development services, successfully adding new brands to the portfolio[43](index=43&type=chunk)[44](index=44&type=chunk) - **Capacity and Capability**: Prudently adjusted capacity utilization in Vietnam and Cambodia and increased investment in facility automation to enhance efficiency and quality[45](index=45&type=chunk)[46](index=46&type=chunk) - **Operational Excellence**: Transformed manufacturing processes with most production lines adopting a small-line model to handle small-batch, quick-turnaround orders, and continuously upgraded the Manufacturing Execution System (MES)[51](index=51&type=chunk)[52](index=52&type=chunk) - **Cost Control**: Implemented lean manufacturing, reduced unskilled labor, and focused resources on training skilled workers to manage costs[53](index=53&type=chunk)[54](index=54&type=chunk) - **Talent Development**: Offers competitive remuneration and share incentive schemes, and is committed to cultivating local management teams[55](index=55&type=chunk)[61](index=61&type=chunk) - **Sustainability and Asset Management**: Adheres to sustainable manufacturing and considers disposing of underutilized investment properties such as factory buildings, office assets, and industrial land[64](index=64&type=chunk)[75](index=75&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) [Financial Results](index=15&type=section&id=Financial%20Results) FY2024 revenue and net profit fell due to weak retail sentiment, but the Group maintained a zero gearing ratio and increased its total annual dividend **Financial Performance Summary** | Indicator | FY2024 | FY2023 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | HK$689 million | HK$1,062 million | -35.1% | | **Gross Profit** | HK$29 million | HK$90 million | -67.5% | | **Gross Margin** | 4.2% | 8.4% | -4.2pp | | **Net Profit** | HK$20 million | HK$53 million | -62.1% | | **Earnings Per Share** | 3.00 HK Cents | 7.92 HK Cents | -62.1% | **Key Financial Ratios** | Indicator | FY2024 | FY2023 | | :--- | :--- | :--- | | **Accounts Receivable Turnover Days** | 80 days | 60 days | | **Accounts Payable Turnover Days** | 123 days | 86 days | | **Inventory Turnover Days** | 109 days | 109 days | | **Net Cash on Hand** | HK$416 million | HK$393 million | | **Gearing Ratio** | 0% | 0% | | **Current Ratio** | 3.2 | 2.8 | - To celebrate its 30th listing anniversary, the Board proposed a **special final dividend of 6.8 HK cents per share**, bringing the total annual dividend to 9.0 HK cents, a 100% year-on-year increase[104](index=104&type=chunk) [Operational Review](index=18&type=section&id=Operational%20Review) The Group operated 21 production lines with a 57.5% utilization rate, saw an increased output contribution from Cambodia, and added two new brands - The Group has a total of **21 production lines** in southern Vietnam and Cambodia, with an annual capacity of approximately 7 million pairs and a utilization rate of **57.5%** for the year (2023: 73.5%)[115](index=115&type=chunk) - The output contribution from the **Cambodian production center increased to 52.7%** from 41.2%, while the contribution from southern Vietnam decreased to 47.3% from 58.8%[124](index=124&type=chunk)[127](index=127&type=chunk) - Major customers (Cat, Chaco, Dr. Martens, Merrell, Wolverine) contributed **95.0% of total revenue**, with two new brands, Axion and Palladium, added during the year[122](index=122&type=chunk) - The associate company in central Vietnam (a joint venture with Apache Group) saw its revenue **increase by 7.0% year-on-year** to HK$1.024 billion, contributing HK$23.9 million in profit to the Group[133](index=133&type=chunk) - The investment property portfolio (excluding the newly vacated Zhuhai factory) was fully leased, generating a total rental income of approximately **HK$27.8 million** for the year[141](index=141&type=chunk)[144](index=144&type=chunk) [Financial Review](index=23&type=section&id=Financial%20Review) The Group maintained a strong financial position with zero gearing, HK$416 million in cash, and initiated share buybacks and employee incentive schemes **Liquidity and Financial Resources (as of March 31, 2024)** | Indicator | Amount | | :--- | :--- | | **Cash and Cash Equivalents** | Approx. HK$416 million | | **Interest-bearing Bank Borrowings** | Zero | | **Gearing Ratio** | Zero | | **Available Banking Facilities** | Approx. HK$40 million | | **Current Ratio** | 3.2 | - Shareholders' equity decreased slightly to **HK$1.173 billion** from HK$1.205 billion in the prior year[158](index=158&type=chunk) - During the year, the company repurchased **194,000 shares** in March 2024 for a total consideration of approximately HK$153,000, which have since been cancelled[162](index=162&type=chunk)[165](index=165&type=chunk) - As of March 31, 2024, the Group had approximately 6,300 employees and granted **2.8 million share options** and **3.598 million award shares** to incentivize staff[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk) [Environmental, Social and Governance Report](index=26&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) [ESG Governance and Strategy](index=27&type=section&id=ESG%20Governance%20and%20Strategy) The Group has established a three-tiered ESG governance structure and identified 16 material ESG topics through stakeholder engagement and materiality assessment - The ESG reporting scope covers manufacturing plants in Vietnam and Cambodia, consistent with the previous year[177](index=177&type=chunk)[180](index=180&type=chunk) - The Group has established a three-tiered ESG governance structure: the Board provides oversight, an ESG working group (comprising executive directors and senior management) handles implementation and monitoring, and responsible units in Vietnam and Cambodia manage daily execution[189](index=189&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk) - Through a materiality assessment, the Group identified 16 key ESG topics, with "Energy Consumption," "Labor Standards," "Anti-corruption," and "Environment and Natural Resources" deemed most significant to stakeholders and the company[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk) [Social Performance](index=33&type=section&id=Social%20Performance) The Group employed approximately 6,100 staff, improved workplace safety by reducing work-related injuries, and strictly prohibited child or forced labor **Employee Profile (as of March 31, 2024)** | Category | 2023/24 | 2022/23 | | :--- | :--- | :--- | | **Total Employees** | 6,100 | 6,300 | | **Female Employees** | 4,900 (80.3%) | 5,000 (79.4%) | | **Total Turnover Rate** | 13% | 10% | **Occupational Health and Safety** | Indicator | 2023/24 | 2022/23 | 2021/22 | | :--- | :--- | :--- | :--- | | **Work-related Fatalities** | 0 | 0 | 0 | | **Number of Work-related Injuries** | 19 | 51 | 37 | | **Lost Days due to Injury** | 54 | 182 | 120 | - The Group strictly prohibits child and forced labor and has established special protection policies for young workers aged 15 to 18[265](index=265&type=chunk)[266](index=266&type=chunk) - During the year, the Group donated HK$162,000 to World Vision Hong Kong to sponsor children in need[293](index=293&type=chunk) [Environmental Performance](index=50&type=section&id=Environmental%20Performance) The Group's total GHG emissions and resource consumption decreased due to lower business volume, though consumption intensity per product unit increased **Greenhouse Gas Emissions (GHG)** | Scope | 2023/24 (tonnes CO2e) | 2022/23 (tonnes CO2e) | | :--- | :--- | :--- | | **Scope 1 (Direct)** | 153.4 | 21.2 | | **Scope 2 (Indirect - Electricity)** | 6,584.0 | 9,362.9 | | **Scope 3 (Other Indirect)** | 24.5 | 38.5 | | **Total Emissions** | 6,761.9 | 9,543.3 | | **Total Emission Intensity (tonnes/pair of shoes)** | 0.002 | 0.002 | **Resource Consumption** | Indicator | 2023/24 | 2022/23 | | :--- | :--- | :--- | | **Total Energy Consumption (kWh)** | 11,965,023.7 | 13,857,306.0 | | **Energy Intensity (kWh/pair of shoes)** | 3.2 | 2.3 | | **Total Water Consumption (m³)** | 301,431.0 | 325,271.0 | | **Water Intensity (m³/pair of shoes)** | 0.08 | 0.05 | **Waste Generation** | Indicator | 2023/24 (kg) | 2022/23 (kg) | | :--- | :--- | :--- | | **Total Hazardous Waste** | 95,536.5 | 92,237.0 | | **Total Non-hazardous Waste** | 712,170.4 | 1,947,276.0 | - The Group has identified and developed strategies to address climate-related risks (both physical and transitional), such as establishing safety management systems and implementing energy-saving measures[362](index=362&type=chunk)[364](index=364&type=chunk)[367](index=367&type=chunk) [Corporate Governance Report](index=73&type=section&id=Corporate%20Governance%20Report) [Board and Committees](index=74&type=section&id=Board%20and%20Committees) The company complied with all Corporate Governance Code provisions, maintaining a balanced board structure and three key committees led by independent directors - The company complied with all code provisions of the Corporate Governance Code throughout the review year[389](index=389&type=chunk) - The Board comprises 9 members, including 3 Executive Directors, 3 Non-executive Directors, and 3 Independent Non-executive Directors, meeting Listing Rules requirements, with the roles of Chairman (Ms. Wong Hsiu-Tuen) and Chief Executive Officer (Mr. Chan Yik-Mo) being separate[396](index=396&type=chunk)[400](index=400&type=chunk) - The company has an Audit Committee, a Remuneration Committee, and a Nomination Committee, chaired by Mr. Tam King Ching, Kenny, Mr. Wong Hin Wing, and Ms. Wong Hsiu-Tuen, respectively[395](index=395&type=chunk)[437](index=437&type=chunk)[465](index=465&type=chunk)[471](index=471&type=chunk) - The Audit Committee is responsible for corporate governance duties, including reviewing company policies, director training, compliance, and adherence to the Corporate Governance Code[472](index=472&type=chunk)[473](index=473&type=chunk) [Risk Management and Internal Controls](index=87&type=section&id=Risk%20Management%20and%20Internal%20Controls) The Board oversees a robust risk management system, utilizing a three-lines-of-defense model and an external professional firm for internal control reviews - The company has appointed an external independent professional firm, CHK Corporate-Pro Services Limited (the operating entity of TMF Hong Kong), for internal control reviews and risk assessments[487](index=487&type=chunk)[489](index=489&type=chunk) - The Group adopts a "Three Lines of Defence" corporate governance structure and follows the COSO Enterprise Risk Management framework[503](index=503&type=chunk)[493](index=493&type=chunk) - Key identified risks include economic recession, political instability in production locations, customer concentration, rising operating costs, and inflation/deflation risks[501](index=501&type=chunk) - The company has established a dividend policy, aiming to distribute approximately 30% to 60% of the annual consolidated net profit attributable to shareholders, with the possibility of special dividends[512](index=512&type=chunk) [Shareholder Relations](index=92&type=section&id=Shareholder%20Relations) The company maintains active communication with shareholders through various channels and provides clear procedures for shareholder participation and inquiries - The company communicates with shareholders and investors through various channels including meetings, roadshows, reports, and its website (www.kingmaker-footwear.com)[519](index=519&type=chunk)[524](index=524&type=chunk) - The report specifies the procedures and requirements for shareholders to nominate directors, propose resolutions at general meetings, and convene special general meetings[530](index=530&type=chunk)[531](index=531&type=chunk)[532](index=532&type=chunk) - Shareholders can send inquiries to the Company Secretary by post or email (kingmkra@netvigator.com)[537](index=537&type=chunk) - In accordance with the Listing Rules, all resolutions at general meetings are put to a vote by poll[538](index=538&type=chunk) [Directors and Senior Management Profiles](index=97&type=section&id=Directors%20and%20Senior%20Management%20Profiles) [Directors and Senior Management Profiles](index=97&type=section&id=Directors%20and%20Senior%20Management%20Profiles) This section details the extensive experience of the company's directors and senior management in the footwear industry, finance, and corporate governance - Executive Director Ms. Wong Hsiu-Tuen, a co-founder of the Group, has over 47 years of experience in the footwear industry and is responsible for formulating the Group's overall business strategy[550](index=550&type=chunk) - Executive Director and Chief Executive Officer Mr. Chan Yik-Mo joined the Group in 2016 and is responsible for executing the Group's strategic planning and corporate development[553](index=553&type=chunk) - The senior management team possesses decades of industry experience in finance, operations, marketing, and production management, providing strong support for the Group's stable operations[585](index=585&type=chunk)[588](index=588&type=chunk)[590](index=590&type=chunk) [Report of the Directors](index=113&type=section&id=Report%20of%20the%20Directors) [Business and Financial Summary](index=113&type=section&id=Business%20and%20Financial%20Summary) The report outlines the Group's principal activities, a profit of HK$20.1 million, a proposed dividend, and a five-year financial performance summary - The company's principal activity is investment holding, while its subsidiaries are mainly engaged in footwear manufacturing and trading, and property investment[593](index=593&type=chunk) - The Board recommends a final dividend of 0.2 HK cents per share and a special final dividend of 6.8 HK cents per share, payable on or about September 30, 2024[603](index=603&type=chunk) **Five-Year Performance Summary (HK$ million)** | Fiscal Year | 2024 | 2023 | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 689.3 | 1,062.0 | 842.7 | 804.7 | 1,050.1 | | **Profit/(Loss) for the Year** | 20.1 | 53.9 | (19.8) | 79.8 | (53.0) | [Share Capital and Interests](index=118&type=section&id=Share%20Capital%20and%20Interests) The report details changes in share capital, share buybacks, major shareholders' interests, and the operation of employee incentive schemes - During the year, the company repurchased **194,000 shares** in March 2024 at prices ranging from HK$0.78 to HK$0.80 per share, which have since been cancelled[621](index=621&type=chunk)[624](index=624&type=chunk) - As of March 31, 2024, the company's distributable reserves amounted to **HK$499 million**[627](index=627&type=chunk) - The five largest customers accounted for **98.4% of total sales**, with the largest customer representing 77.5%, while the five largest suppliers accounted for less than 27% of total purchases[629](index=629&type=chunk) **Major Shareholders' Interests (as of March 31, 2024)** | Shareholder Name | Number of Shares | Percentage of Shareholding | | :--- | :--- | :--- | | King Strike Limited | 263,960,041 | 38.78% | | Mr. David Michael Webb | 47,986,000 | 7.05% | | DJE Investment S.A. | 44,907,000 | 6.60% | | Mr. Lee Chi Keung | 35,198,000 | 5.17% | | Fat Tat Assets Limited | 34,507,500 | 5.07% | [Independent Auditor's Report](index=127&type=section&id=Independent%20Auditor's%20Report) [Auditor's Opinion and Key Audit Matters](index=127&type=section&id=Auditor's%20Opinion%20and%20Key%20Audit%20Matters) The auditor, Ernst & Young, issued an unqualified opinion on the financial statements and highlighted three key audit matters for attention - The auditor, Ernst & Young, issued an **unqualified opinion** on the financial statements, concluding that they give a true and fair view of the Group's financial position[690](index=690&type=chunk) - **Key Audit Matter 1: Provision for inventories**: Due to significant management judgment in estimating inventory provisions (recoverability, marketability), the auditor tested the inventory aging analysis and assessed the reasonableness of the provisions[700](index=700&type=chunk)[702](index=702&type=chunk) - **Key Audit Matter 2: Fair value estimation of investment properties**: As investment properties constitute 60% of total non-current assets, their valuation is highly dependent on assumptions; the auditor engaged internal valuation specialists to assess the methodology and key parameters[706](index=706&type=chunk)[708](index=708&type=chunk) - **Key Audit Matter 3: Taxation**: The determination of tax provisions involves complexity and judgment due to the Group's operations across multiple tax jurisdictions; the auditor involved tax specialists to review the provisions and assess management's judgment[713](index=713&type=chunk)[715](index=715&type=chunk) [Audited Financial Statements](index=136&type=section&id=Audited%20Financial%20Statements) [Consolidated Financial Statements](index=136&type=section&id=Consolidated%20Financial%20Statements) The Group's revenue and profit declined, but its financial structure remained solid with total assets of HK$1.51 billion and net assets of HK$1.19 billion **Consolidated Statement of Profit or Loss Summary (HK$)** | Item | FY2024 | FY2023 | | :--- | :--- | :--- | | **Revenue** | 689,269,000 | 1,061,974,000 | | **Gross Profit** | 29,106,000 | 89,623,000 | | **Profit Before Tax** | 12,622,000 | 50,320,000 | | **Profit for the Year** | 20,057,000 | 53,936,000 | **Consolidated Statement of Financial Position Summary (HK$)** | Item | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | **Total Non-current Assets** | 788,325,000 | 817,226,000 | | **Total Current Assets** | 721,120,000 | 770,733,000 | | **Total Assets** | 1,509,445,000 | 1,587,959,000 | | **Total Current Liabilities** | 226,197,000 | 271,883,000 | | **Total Non-current Liabilities** | 97,648,000 | 101,420,000 | | **Total Liabilities** | 323,845,000 | 373,303,000 | | **Net Assets** | 1,185,600,000 | 1,214,656,000 | **Consolidated Statement of Cash Flows Summary (HK$)** | Item | FY2024 | FY2023 | | :--- | :--- | :--- | | **Net Cash Flows from Operating Activities** | 45,041,000 | 136,580,000 | | **Net Cash Flows from/(used in) Investing Activities** | 2,907,000 | (213,757,000) | | **Net Cash Flows used in Financing Activities** | (28,816,000) | (45,970,000) | | **Net Increase/(Decrease) in Cash and Cash Equivalents** | 19,132,000 | (123,147,000) | [Notes to Financial Statements](index=145&type=section&id=Notes%20to%20Financial%20Statements) The notes detail key accounting policies, judgments, and estimates, with a focus on segment information, revenue, related parties, and financial risk management - The Group operates in two reportable segments: manufacturing and sale of footwear products, and property investment, with footwear sales being the primary source of revenue, accounting for over 96% of the total[1003](index=1003&type=chunk)[1006](index=1006&type=chunk)[1009](index=1009&type=chunk) - Revenue is primarily generated from the sale of footwear to external customers, with the United States, Europe, and Asia being the main markets, and two major customers contributing over 90% of sales revenue[1017](index=1017&type=chunk)[1022](index=1022&type=chunk) - The company has implemented a share option scheme and a share award scheme, granting 2.8 million share options and exercising 150,000 during the year, while also granting 698,000 award shares and vesting 3.598 million[1217](index=1217&type=chunk)[1277](index=1277&type=chunk) - The Group's main financial risks include foreign exchange risk (particularly RMB and VND), credit risk (high customer concentration), and liquidity risk, which are managed through continuous monitoring and prudent financial policies[1316](index=1316&type=chunk)[1319](index=1319&type=chunk)[1327](index=1327&type=chunk)[1341](index=1341&type=chunk)

Financial Performance - Revenue for the fiscal year ended March 31, 2024, was HKD 689,269,000, a decrease of 35.1% compared to HKD 1,061,974,000 in the previous year[2] - Gross profit fell to HKD 29,106,000, down 67.5% from HKD 89,623,000, resulting in a gross margin of 4.2%, a decline of 4.2 percentage points[2] - Profit attributable to equity holders of the company was HKD 20,221,000, a decrease of 62.1% from HKD 53,410,000[2] - Basic earnings per share decreased to HKD 3.00 from HKD 7.92, reflecting a 62.1% decline[2] - The overall profit for the year was HKD 20,057,000, a significant decline from HKD 53,936,000 in the previous year[28] - The company reported a pre-tax profit of HKD 12,622,000, down from HKD 50,320,000 in the previous year[13] - The company reported a basic earnings per share of HKD 20,221,000 for the year, compared to HKD 53,410,000 in the previous year, with a weighted average of 675,144,718 shares outstanding[59] - The company's gross profit decreased by 67.5% to approximately HKD 29,000,000, with a gross margin narrowing to about 4.2%[138] - Net profit attributable to equity holders was approximately HKD 20,000,000, down 62.1% from HKD 53,000,000 in the previous year[139] Dividends - Total dividends for the year increased by 100% to HKD 9.0 per share, compared to HKD 4.5 per share in the previous year[2] - The company has proposed a final dividend of HKD 0.2 per share, down from HKD 2.0 per share in the previous year[61] Assets and Liabilities - Total assets decreased to HKD 1,509,445,000 in 2024 from HKD 1,587,959,000 in 2023[28] - Total liabilities also decreased to HKD 323,845,000 in 2024 from HKD 373,303,000 in 2023[28] - The net asset value for the company was HKD 1,185,600,000 in 2024, a decrease from HKD 1,214,656,000 in 2023[37] - Cash and cash equivalents amounted to approximately HKD 416,000,000[2] - The company’s cash and cash equivalents increased to HKD 415,580,000 in 2024 from HKD 392,648,000 in 2023[36] - The company maintained a healthy cash level with net cash of approximately HKD 416 million, up from HKD 393 million in the previous year[118] Revenue Breakdown - Revenue from manufacturing and sales of footwear products for the year ended March 31, 2024, was HKD 689,269,000, a decrease of 35% compared to HKD 1,061,974,000 in 2023[28] - The company reported a loss of HKD 19,346,000 in the footwear segment for 2024, compared to a profit of HKD 40,712,000 in 2023[28] - The contribution of high-value footwear to total revenue increased to 78.6%, while the contribution from infant footwear decreased to 6.2%[147] - The group reported a revenue of HKD 654,738,000 for 2024, a decrease of 35.3% from HKD 1,011,615,000 in 2023[84] - The company's revenue decreased by 35.1% year-on-year to approximately HKD 689 million, down from HKD 1,062 million in the previous year, with business volume declining by 33.4%[114] Expenses and Costs - The cost of goods sold was HKD 423,414,000, down from HKD 636,119,000, reflecting a reduction of 33.5%[57] - Direct labor costs decreased by 28.1% to approximately HKD 133 million, but the proportion of direct labor costs to revenue increased to 19.3% from 17.5%[115] - Administrative expenses decreased slightly to HKD 72,491,000 from HKD 74,852,000[13] - The company has implemented strict cost control measures across its operations, including sales, marketing, and administrative functions, to better respond to the challenging business environment[125] Strategic Initiatives - The company plans to optimize its product mix and continue investing in workforce skills enhancement and facility upgrades to meet complex manufacturing demands[74] - The company is focusing on supply chain optimization and maintaining a healthy operational foundation to build resilience in the manufacturing sector[72] - The group plans to continue enhancing manufacturing execution systems (MES) to improve order fulfillment capabilities[104] - The group aims to strengthen partnerships with footwear brands by focusing on flexibility, reliability, and value-added services[101] - The group is committed to sustainable manufacturing practices, reducing carbon footprints, and prioritizing sustainability in business decisions[81] - The group has implemented lean manufacturing systems to reduce waste and achieve cost savings[105] - The company is focusing on six strategic action areas to strengthen its capabilities and adapt to the rapidly changing operating environment[122] Market and Customer Insights - The group's major customers, including Cat, Chaco, Dr. Martens, Merrell, and Wolverine, collectively accounted for 95.0% of total revenue, slightly down from 95.3% in 2023[177] - In the current year, the contribution of the US market to the group's revenue was 26.5%, down from 37.3% in 2023, while Europe contributed 26.4%, up from 22.5% in 2023, and other markets accounted for 47.1%, up from 40.2% in 2023[176] - The group has expanded its customer portfolio by adding two new brands, Axion and Palladium, during the year[177] Operational Metrics - The group operated 21 production lines with a total annual capacity of approximately 7 million pairs of footwear, with a utilization rate of 57.5%[145] - Accounts receivable increased to HKD 172,403,000 in 2024 from HKD 141,216,000 in 2023, reflecting a rise of 22.0%[91] - Accounts receivable turnover days increased to 80 days from 60 days, while accounts payable turnover days increased to 123 days from 86 days[118] Future Outlook - The group anticipates a gradual recovery in customer procurement in the second half of the fiscal year 2025 as retail inventory levels improve[100] - The group plans to adopt a more cautious approach to capacity management and business development in the next fiscal year due to ongoing macroeconomic uncertainties[154] - The board remains confident in the long-term development of its centers and has implemented measures to mitigate short-term order fluctuations[181]

Financial Performance - For the six months ended September 30, 2023, the profit attributable to equity holders of the Company was HK$21,909,000, a decrease of 23.5% compared to HK$28,804,000 for the same period in 2022[12]. - The basic earnings per share for the period was HK3.24 cents, down from HK4.28 cents in the previous year, reflecting a decline of 24.4%[32]. - Total comprehensive income for the period was a loss of HK$9,396,000, compared to a profit of HK$29,079,000 in the previous year[60]. - Profit for the period attributable to equity holders of the Company was HK$21,909,000, a decline of 23.9% from HK$28,804,000 in 2022[103]. - Profit before tax increased to HK$26.7 million, up 29.9% from HK$20.6 million in the previous year[114]. - The Group's share of profits from associates was HK$13.6 million, compared to HK$17.5 million in the previous year[114]. - The Group reported a net fair value gain of approximately HK$12.7 million for the period, compared to a loss of approximately HK$21.5 million in 2022[1]. Revenue and Profitability - Revenue for the six months ended September 30, 2023, was HK$383,032,000, a decrease of 40.1% compared to HK$639,175,000 in 2022[103]. - Gross profit for the same period was HK$21,819,000, down 61.9% from HK$57,285,000 in the previous year[103]. - The business volume decreased by 41.9%, which was slightly offset by a 4.1% improvement in the average selling price[178]. - The Group maintained a gross profit margin of 5.7% for the Period, compared to 9.0% in 2022[181]. Assets and Liabilities - As of September 30, 2023, the net assets of the Company were HK$1,193,853,000, a slight decrease from HK$1,214,656,000 as of March 31, 2023[37]. - Non-current liabilities totaled HK$105,470,000, an increase from HK$101,420,000 as of March 31, 2023, primarily due to deferred tax liabilities[37]. - Total current assets decreased to HK$728.9 million from HK$770.7 million as of March 31, 2023[114]. - Total non-current assets amounted to HK$803.4 million, down from HK$817.2 million as of March 31, 2023[114]. - Total current liabilities decreased to HK$233 million from HK$271.9 million as of March 31, 2023[114]. Cash Flow and Liquidity - The cash and cash equivalents net amount was approximately HK$430,000,000, providing a solid liquidity position for the Company[28]. - The net cash flows from operating activities for the six months ended September 30, 2023, were HK$57,914,000, an increase from HK$32,996,000 in the same period of 2022[80]. - Cash and cash equivalents at the end of the period stood at HK$35,398,000, up from HK$20,894,000 at the end of September 2022[80]. - The Group maintained a healthy liquidity position with net cash in hand of approximately HK$430 million as of September 30, 2023, up from approximately HK$393 million on March 31, 2023[1]. - The current ratio was approximately 3.1 as of September 30, 2023, compared to 2.8 as of March 31, 2023[147]. Dividends - The company declared a special final dividend of HK$1,350,000 for 2023, alongside a final dividend of HK$13,496,000[60]. - Proposed interim dividend per share is HK$1.5, down from HK$1.8 in the previous year, representing a 16.7% decrease[103]. - Total dividends per share for the period decreased to HK$2.0 from HK$2.3, a reduction of 13.0%[103]. - The Board declared an interim dividend of HK1.5 cents per ordinary share, down from HK1.8 cents in 2022, and a special interim dividend of HK0.5 cents[1]. Market and Operational Insights - The Company has been focusing on enhancing its product offerings and market expansion strategies, although specific new products or technologies were not detailed in the report[29]. - Future outlook remains cautious, with management indicating potential challenges in the market environment affecting performance[29]. - The Group's order book remained weak due to challenging business conditions, including weak demand and lack of visibility in the order pipeline[178]. - The Group continued to enhance operational efficiency to strengthen its cost advantage amid high uncertainty in the market[178]. - The Group is confident in its production capability, which is expected to help secure client trust as the market regains momentum[178]. Share Options and Equity - The company issued shares from the exercise of share options, resulting in an increase of HK$116,000 in share capital[80]. - During the period, 150,000 share options were exercised at an exercise price of HK$0.772[137]. - The share option scheme has 10,570,000 options outstanding as of 30 September 2023, down from 11,070,000 options as of 1 April 2023[159]. - The trustee of the share award scheme purchased 2,622,000 shares during the period, holding a total of 6,732,000 shares as of 30 September 2023[159]. - The number of awarded shares available for grant under the share award scheme decreased from 60,105,544 to 59,407,544 shares from 1 April 2023 to 30 September 2023[159]. Foreign Exchange and Financial Management - The Group adopts a conservative approach to foreign exchange exposure management, monitoring market conditions for potential hedging needs[148]. - The Group's treasury policies aim to mitigate the impact of foreign currency fluctuations and minimize financial risks[148]. - The management of currency risk is centralized at the Group's headquarters in Hong Kong[148]. - The Group generally finances its operations with internal resources and bank facilities provided by banks in Hong Kong[148].

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之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就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之任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） 01170 （股份代號： ） 截至二零二三年九月三十日止六個月之 中期業績公告 財務摘要 截至九月三十日 止六個月 二零二三年 二零二二年 變動 千港元 千港元 383,032 639,175 -40.1% 收益 21,819 57,285 -61.9% 毛利 5.7% 9.0% -3.3 毛利率 個百分點 21,909 28,804 -23.9% 本公司權益持有人應佔期內溢利 （港仙） （港仙） ...

Financial Performance - Revenue for the year increased to approximately HKD 90 million, up from HKD 25 million in the previous year, with a gross margin expanding to about 8.4% from 3.0%[37] - Gross profit increased to approximately HK$90 million for the Year, compared to approximately HK$25 million in 2022, resulting in a gross profit margin expansion to approximately 8.4% from 3.0%[58] - The Group's major customers contributed 95.3% of total revenue for the Year, up from 89.6% in 2022[67] - The associated company in Vietnam recorded a revenue of approximately HK$957 million, a year-on-year growth of 6.9%[69] - The rugged-shoe category contributed 73.7% of total revenue, with shipment volume exceeding pre-pandemic levels, while premium casual footwear's contribution increased to 15.4%[94] Market and Operational Strategy - The company plans to relocate its outsole factory to southern Vietnam to enhance manufacturing efficiency, following the cessation of operations at the partnership factory in Cambodia[15][18] - The Group is focused on enhancing operational excellence and product innovation to meet evolving customer design requirements[19] - The Group's strategic focus is on business growth and enhancing its revenue profile by prioritizing value over volume in its operations[29] - The Group plans to take a more cautious stance towards capacity management and business development in the coming financial year due to macroeconomic uncertainties[100] Financial Position and Management - The company maintains a zero gearing ratio, indicating no bank borrowings against total equity, compared to 1.2% in the previous year[38] - As of March 31, 2023, the Group's cash and cash equivalents were approximately HK$393 million, up from approximately HK$304 million in 2022, with total bank borrowings reduced to Nil[80] - The current ratio improved to approximately 2.8 in 2023 from approximately 2.5 in 2022, indicating better liquidity management[81] - The Group's gearing ratio was Nil as of March 31, 2023, compared to 1.2% in 2022, reflecting a strong financial position[80] - The Group had available banking facilities amounting to approximately HK$40 million as of March 31, 2023, down from approximately HK$55 million in 2022, with no utilization reported for the current year[110] Employee and Talent Management - The group employed approximately 6,700 employees as of March 31, 2023, with remuneration policies based on market salary levels and individual performance[118] - The Group plans major expansion in Vietnam and Cambodia over the next two to three years, indicating adequate liquidity to meet current and future working capital requirements[112] - The group granted 3,000,000 share options to certain directors and employees in accordance with its share option scheme adopted on August 26, 2022[119] Sustainability and ESG Initiatives - The company is committed to sustainability and contributing to the United Nations Sustainable Development Goals through its operations[25] - The Group is committed to sustainability and has aligned its efforts with the UN's Sustainability Development Goals[47] - The Group aims to improve its environmental and social performance as part of its ESG initiatives, with no changes in the reporting scope from the previous year[126] - The Group has implemented a safety management system to address acute physical risks from extreme weather conditions, which may reduce revenue and increase costs[162] - The Group is continuously monitoring regulatory changes related to climate and has adopted measures to mitigate compliance costs[164] Waste Management and Environmental Compliance - Total hazardous waste increased from 76,856 kg in 2021/22 to 92,237 kg in 2022/23, while total non-hazardous waste decreased from 2,937,663 kg to 1,947,276 kg[177] - The Group aims to maintain hazardous and non-hazardous waste intensity between 90% and 120% of the baseline year ended March 31, 2023, for the next reporting period[175] - The Group has complied with all relevant environmental laws and regulations, with no confirmed non-compliance incidents noted during the reporting period[180] - The Group actively promotes a green and sustainable working environment, adhering to environmental protection laws in Vietnam and Cambodia[179] Risk Management - The Group actively manages foreign currency exposure through natural hedges, forward contracts, and options, with centralized management of currency risk at its Hong Kong headquarters[85] - The Group's treasury policies aim to mitigate financial risks from foreign currency fluctuations and utilize derivatives for risk management purposes[85] Shareholder Returns - A final dividend of HK2.0 cents per ordinary share and a special final dividend of HK0.2 cent per ordinary share were declared, bringing total dividends for the year to HK4.5 cents per ordinary share, up from HK4.0 cents in 2022[88] - The group repurchased 1,446,000 ordinary shares at a total cost of approximately HK$1,554,000 during the year, aiming to enhance net asset value and earnings per share for shareholders[86]