[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]

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： ） 截至二零二三年三月三十一日止年度之 全年業績公告 財務摘要 二零二三年 二零二二年 變動 千港元 千港元 1,061,974 842,687 +26.0% 收益 89,623 25,199 +255.7% 毛利 8.4% 3.0% +5.4 毛利率 個百�� 53,410 (18,035) 本公司權益持有人應佔年內溢利╱（虧損） 不適用 港仙 港仙 7.92 (2.69) 每股基本盈利╱（虧損） 不適用 港仙 港仙 ...

Financial Performance - Revenue for the six months ended September 30, 2022, was HK$639.2 million, an increase of 68.5% compared to HK$379.4 million in 2021[9]. - Gross profit for the same period was HK$57.3 million, compared to a gross loss of HK$12.7 million in 2021, resulting in a gross profit margin of 9.0%[9]. - Profit attributable to equity holders of the Company for the period was HK$28.8 million, a significant recovery from a loss of HK$15.5 million in the previous year[9]. - Basic earnings per share for the period was HK$4.28, compared to a loss of HK$2.30 per share in 2021[9]. - Profit before tax for the period was HK$20.6 million, recovering from a loss of HK$25.4 million in the previous year[14]. - Total comprehensive income for the period was a loss of HK$28,347,000, compared to a loss of HK$7,881,000 in the prior year[23]. - The profit for the period ended September 30, 2022, was HK$28,804,000, compared to HK$29,079,000 for the previous period, indicating a slight decline[32]. - The overall profit for the period was HK$29,079,000, compared to a loss of HK$17,438,000 in the same period last year[70]. Dividends and Shareholder Returns - Proposed interim dividend per share is HK$1.8, with a total dividend per share for the period of HK$2.3, reflecting a 15.0% increase from HK$2.0 in 2021[9]. - Dividends paid during the period amounted to HK$13,486,000, a decrease from HK$18,824,000 in the same period of 2021, showing a reduction in shareholder returns[41]. - The company declared a special final dividend of HK$8,740,000 for the year 2021, reflecting ongoing shareholder returns despite the losses reported[37]. - An interim dividend of HK$0.018 per ordinary share was declared for the six months ended September 30, 2022, compared to no interim dividend in 2021[108]. - A special interim dividend of HK$0.005 per ordinary share was declared for the six months ended September 30, 2022, down from HK$0.020 in 2021[108]. Cash Flow and Liquidity - Net cash and cash equivalents as of September 30, 2022, were approximately HK$296.9 million[9]. - Cash and cash equivalents at the end of the period were HK$20,894,000, down from HK$68,580,000 in the previous year, indicating a decrease of 69%[44]. - For the six months ended 30 September 2022, net cash flows from operating activities increased to HK$32,996,000, compared to HK$8,507,000 in the same period of 2021, representing a significant increase of 287%[41]. - The company’s cash and bank balances decreased to HK$20,894,000 from HK$68,580,000, a decline of 69% year-over-year[46]. - The Group's cash and cash equivalents were approximately HK$311.1 million, compared to approximately HK$304 million as of March 31, 2022[200]. - The Group's total bank borrowings were approximately HK$14.2 million, with a gearing ratio of approximately 1.2%[200]. Assets and Liabilities - Non-current assets decreased to HK$789,159,000 from HK$856,893,000 as of March 31, 2022[25]. - Current assets increased to HK$818,584,000 from HK$800,439,000 as of March 31, 2022[25]. - Total assets as of 30 September 2022 were HK$1,607,743,000, a decrease from HK$1,657,332,000 as of 31 March 2022[73]. - Total liabilities as of 30 September 2022 were HK$429,201,000, down from HK$437,591,000 as of 31 March 2022[73]. - Total equity attributable to equity holders of the company decreased to HK$1,169,354,000 from HK$1,210,828,000[28]. - The total non-current liabilities decreased to HK$106,299,000 from HK$112,848,000 as of March 31, 2022[28]. Operational Performance - The Group's performance for the six months ended 30 September 2022 showed a recovery in the global footwear retail sector, with uninterrupted production leading to increased shipment volume and higher capacity utilization[145]. - Shipment volume increased by 41.8%, while the average selling price (ASP) rose by 16.2% during the same period[149]. - The Group's consolidated production capacity reached approximately 8,700,000 pairs of footwear with a utilization rate of 83.3% as of September 30, 2022, up from 78.6% in 2021[163]. - The rugged-shoe category contributed 72.2% of total revenue, an increase from 65.4% in 2021, while premium casual footwear's contribution rose to 14.2% from 11.4%[166]. - The southern Vietnam manufacturing site contributed 61.3% to total volume output, rebounding from 55.0% in 2021, following a robust order pipeline[169]. Market and Customer Insights - Revenue from the United States for the six months ended 30 September 2022 was HK$269,732,000, up from HK$157,041,000 in the same period of 2021[76]. - Revenue from Europe for the six months ended 30 September 2022 was HK$176,412,000, an increase from HK$102,896,000 in the same period of 2021[76]. - Major customers, including Cat, Chaco, Dr. Martens, Merrell, and Wolverine, accounted for 96.0% of total revenue during the period, slightly down from 96.2% in 2021[167]. Strategic Outlook - The Group remains cautiously optimistic about its full-year results despite headwinds from interest rate hikes and rising inflation, which are expected to slow demand growth[191]. - The Group is focusing on six strategic action areas to enhance its revenue portfolio and operational excellence[192]. - The Group is implementing a conservative cash flow management policy and strict cost controls to sustain financial strength amid macroeconomic uncertainties[198]. - The Group anticipates a moderation in second-half orders due to lower visibility in the business pipeline[191]. - The Group's management is cautious about increasing geopolitical tensions and their impact on inflation and economic uncertainty[145].

Financial Performance - Revenue for 2022 was HK$842.7 million, representing a 4.7% increase from HK$804.7 million in 2021[14]. - Gross profit decreased to HK$25.2 million, a decline of 34.1% from HK$38.2 million in the previous year, resulting in a gross profit margin of 3.0%[14]. - The company reported a loss attributable to equity holders of HK$18.0 million, compared to a profit of HK$88.1 million in 2021[14]. - Basic loss per share was HK(2.69) cents, a significant drop from earnings of HK13.05 cents per share in 2021[14]. - Total dividends per share for the year decreased by 20% to HK$4.0 from HK$5.0 in the previous year[14]. - The Group's revenue increased by 4.7% year on year to approximately HK$843 million, compared to approximately HK$805 million in 2021, despite a 0.3% decrease in footwear business volume[77]. - The gross profit for the Year was approximately HK$25 million, down from approximately HK$38 million in 2021, resulting in a gross profit margin of approximately 3.0%[82]. - The Group recorded a net loss attributable to equity holders of approximately HK$18 million, compared to a net profit of HK$88 million in 2021, primarily due to the absence of a one-off fair value gain from investment properties[86]. - The total dividends for the Year were HK4.0 cents per ordinary share, down from HK5.0 cents in 2021[89]. Operational Strategy - The company aims to become the leading lifestyle footwear company trusted by premium brands for value creation and innovation[27]. - The mission includes partnering with leading brands to create the best lifestyle products in footwear[28]. - The Group aims to achieve overall top-line growth in financial year 2023 through six strategic action areas, including recovering new income avenues and promoting operational excellence[33]. - Average selling price (ASP) improvements have been achieved over the past two years, focusing on products with higher profit margins[36]. - The Group is actively managing its clientele portfolio, focusing on customers with positive market performance and growth prospects[36]. - The Group's ongoing strategy focuses on pursuing higher-profit-margin business growth to enhance its revenue profile[77]. Market and Geographic Insights - Revenue by geography showed that Asia accounted for 44.4%, Europe 24.3%, the United States 18.2%, and others 13.1% in 2022[23]. - Revenue from the United States grew significantly to 44.4% of total revenue, up from 21.2% in 2021[100]. - The rugged shoes category contributed 71.3% to the Group's revenue, an increase from 49.9% in 2021[101]. - The premium casual footwear category's contribution dropped to 8.6% from 31.0% in 2021[101]. Production and Capacity - Capacity in Cambodia will be expanded to meet medium-term demand growth, with adjustments in southern Vietnam based on client procurement plans[39]. - The Group's production capacity was around 7 million pairs of shoes, with a utilization rate of 78.0%[98]. - The southern Vietnam manufacturing site contributed 55.0% to total volume output in the Year, down from 69.2% in 2021, due to temporary production halts caused by COVID-19[109]. - The Cambodia site significantly increased its output contribution to 45.0% in pairs, up from 30.8% in 2021, primarily driven by organic growth and improved capacity[111]. - The Cambodia center maintained normal production throughout the Year, with minor breaks for employee vaccinations, and added two stitching lines to support client sourcing plans[112]. Financial Position and Liquidity - Net cash and cash equivalents stood at approximately HK$290 million[9]. - The Group maintained strong liquidity with net cash of approximately HK$290 million as of March 31, 2022, down from HK$378 million in 2021[89]. - The gearing ratio was approximately 1.2% due to a temporary bank loan, compared to nil in 2021[89]. - The current ratio as of March 31, 2022, was approximately 2.5, down from 2.9 in 2021, while the quick ratio was approximately 1.8, compared to 2.3 in 2021[133]. - Shareholders' equity decreased to approximately HK$1,211 million as of March 31, 2022, from approximately HK$1,245 million in 2021[142]. Cost Management and Inflation - Stringent cost control measures are in place to mitigate inflationary pressures, including lean manufacturing and enterprise resource planning systems[45]. - The Group is implementing strict measures to alleviate inflationary pressures, focusing on lean production and enterprise resource planning to control costs[48]. - Increased material costs were attributed to rising prices of raw materials and higher usage of leather for new product development[85]. - Direct labor wages increased to approximately HK$187 million, representing 22.2% of revenue, up from 21.0% in 2021[82]. ESG and Sustainability - Sustainability initiatives are being prioritized, including efforts to reduce the carbon footprint of production and ensure employee and community safety[58]. - The Group aims to improve its performance in environmental, social, and governance aspects and contribute more significantly to the communities where it operates[163]. - The ESG report covers the environmental and social performance of manufacturing facilities located in Vietnam and Cambodia, with no changes in the reporting scope compared to the previous year[164]. - The Group has established ESG goals and objectives with action plans aligned with determined ESG strategies[172]. - The Group integrates sustainability into operations by implementing measures to reduce carbon footprints and mitigate environmental impacts[188]. Workforce and Talent Management - The Group employed approximately 7,700 employees as of March 31, 2022, across its subsidiaries in Hong Kong, Taiwan, the PRC, Vietnam, and Cambodia[155]. - The Group recognizes employees as valuable assets and offers attractive remuneration and training opportunities to retain talent[191]. - The majority of the Group's employees in Vietnam and Cambodia are female, highlighting the importance of gender diversity in operations[200]. - The Group strictly complies with the Labor Law Code of Vietnam and Cambodia, ensuring adherence to employment protection and benefits laws[197]. Risk Management - The operating environment is clouded by uncertainties due to global inflation, increasing interest rates, and geopolitical tensions, necessitating a strong financial position[65]. - The Group remains cautiously optimistic amid ongoing risks associated with COVID-19, including rising logistics and material costs, and labor supply pressures[64]. - The Group's commitment to ESG governance is crucial for fostering sustainable business operations and building resilience against ESG-related risks[171].

Financial Performance - Revenue for the six months ended September 30, 2021, was HK$379,373,000, a decrease of 3.1% from HK$391,565,000 in 2020[20]. - Gross loss for the period was HK$12,685,000, compared to a gross profit of HK$21,056,000 in the same period last year[20]. - Profit attributable to equity holders of the Company was a loss of HK$15,462,000, down from a profit of HK$65,564,000 in 2020[20]. - Basic loss per share was HK(2.30), compared to earnings per share of HK$9.70 in the previous year[20]. - Other income and gains for the period were HK$11,516,000, down from HK$125,587,000 in the previous year[20]. - The Company reported a loss before tax of HK$25,377,000, compared to a profit of HK$88,113,000 in the previous year[20]. - For the six months ended September 30, 2021, the company reported a loss of HK$17,438,000 compared to a profit of HK$58,138,000 in the same period of 2020, representing a significant decline[30]. - Total comprehensive income for the period was a loss of HK$7,881,000, compared to a gain of HK$82,820,000 in the previous year[31]. - The total tax expense for the period was HK$7,939,000, a significant decrease from HK$29,975,000 in 2020[99]. - The group reported a loss attributable to equity holders of HK$15,462,000 for the six months ended September 30, 2021, compared to a profit of HK$65,564,000 in the same period of 2020[102]. Cash Flow and Liquidity - Cash and cash equivalents amounted to approximately HK$364,000,000[14]. - Net cash flows from operating activities for the six months ended 30 September 2021 were HK$8,507,000, compared to a net outflow of HK$2,813,000 in the same period of 2020[50]. - Cash and cash equivalents at the end of the period were HK$68,580,000, up from HK$48,278,000 at the end of the same period in 2020[54]. - The Group's cash and bank balances increased to HK$68,580,000 from HK$48,278,000 year-on-year[54]. - The Group's net decrease in cash and cash equivalents for the period was HK$17,003,000, compared to a decrease of HK$30,985,000 in the prior year[51]. - The Group maintained a healthy liquidity position with net cash of approximately HK$364 million as of September 30, 2021[155]. Dividends - Total dividends per share for the period were HK$2.0, a decrease of 9.1% from HK$2.2 in 2020[15]. - The company declared a special final dividend of HK$8,740,000 for the year 2021[40]. - The group declared a special interim dividend of HK2.0 cents per ordinary share for the period, compared to HK0.7 cents in 2020[110]. - Dividends paid during the period totaled HK$18,824,000, compared to HK$13,518,000 in the previous year[51]. Assets and Liabilities - Non-current assets increased to HK$850,919,000 as of September 30, 2021, from HK$836,847,000 as of March 31, 2021[34]. - Current assets decreased to HK$701,279,000 from HK$806,558,000, primarily due to a reduction in accounts receivable[34]. - Total current liabilities decreased to HK$212,776,000 from HK$280,270,000, indicating improved liquidity management[34]. - The company's total equity as of September 30, 2021, was HK$1,230,014,000, a decrease from HK$1,255,252,000 as of March 31, 2021[37]. - Total assets decreased to HK$1,552,198,000 as of September 30, 2021, down from HK$1,643,405,000 as of March 31, 2021[83]. Operational Challenges - The factory in Thuan An, Vietnam, paused production from mid-July 2021 due to a resurgence of COVID-19, impacting revenue and operating results[144]. - The Group's operations were significantly affected by COVID-19 variants across Southeast Asia, particularly impacting the July-to-September quarter[143]. - The production halt in southern Vietnam since July 2021 significantly impacted operations, leading to a high labor-to-revenue ratio[152]. - The Group will remain vigilant regarding challenges related to production continuity and cost factors amid ongoing global uncertainties[164]. Market Performance - Revenue from the United States increased significantly to HK$157,041,000 in 2021 from HK$50,685,000 in 2020, marking a growth of 209.5%[87]. - Revenue from Europe decreased to HK$102,896,000 in 2021 from HK$131,688,000 in 2020, a decline of 22%[87]. - Revenue from Asia dropped to HK$53,568,000 in 2021 from HK$175,122,000 in 2020, a decrease of 69.4%[87]. - Revenue contribution from European markets decreased to 27.1% (2020: 33.6%), while revenue from the US increased significantly to 41.4% (2020: 12.9%), with other markets accounting for 31.5% (2020: 53.5%)[172]. Production and Capacity - The Group operates two core manufacturing bases in southern Vietnam and Cambodia, with a combined production scale of 27 processing lines and an annual capacity of approximately 6.5 million pairs of shoes, achieving a utilization rate of 78.6% during the Period[170][172]. - The southern Vietnam manufacturing site contributed 55.0% to total volume output during the Period, down from 74.3% in 2020, due to production halts caused by COVID-19[178][182]. - The Cambodian manufacturing site contributed 45.0% of output in pairs during the Period, up from 25.7% in 2020, benefiting from redirected orders from southern Vietnam[187][192]. - The Group plans to prudently expand capacity at the Cambodian site as it matures and gains efficiency in manufacturing more sophisticated models[189]. Strategic Initiatives - The Group has actively worked with customers to reschedule order fulfillments and manage inventory shipments during production disruptions[185]. - The Group has discontinued all manufacturing activities in Mainland China and relocated them to other Asian centers[194]. - The Group's asset enhancement program aims to optimize the use of idle properties and generate additional stable income[199]. - The Board anticipates improved operational efficiency and competitiveness due to scaling up and increased automation in the associated company[197].

信 KINGMAKER (於百慕達註冊成立之有限公司) Stock Code 股份代號：01170 KINGMAKER FOOTWEAR HOLDINGS LIMITED 星 鞋 紫 集 團 有 限 公 司 (Incorporated in Bermuda with limited liability) PERFILLE ANNUAL REPORT 2021年報 ( 275 Contents 目錄 Contents 目錄 Contents 目錄 信星鞋業集團有限公司 年報 2021 1 Corporate Information 公司資料 2 Financial Highlights 財務摘要 4 Chairman's Statement 主席報告 6 Management Discussion and Analysis 管理層討論及分析 15 Environmental, Social and Governance Report 環境、社會及管治報告 28 Corporate Governance Report 企業管治報告 51 Directors and Senior Management Profil ...