Financial Performance - For the fiscal year ending March 31, 2022, the Group recorded revenue of HK$499,849,000, a decrease of 3.4% compared to HK$517,246,000 in 2021[50] - The cosmetics business generated revenue of HK$342,099,000, down 2.7% from HK$351,570,000 in the previous year, accounting for 68.4% of total revenue[50] - The fashion business revenue was HK$157,750,000, representing a decline of 4.8% from HK$165,676,000 in 2021[50] - The Group reported a loss of HK$53,366,000 for the year, an improvement of 71.1% compared to a loss of HK$184,882,000 in 2021[51] - The overall revenue decline was attributed to reduced consumer spending amid ongoing health concerns[51] Impact of COVID-19 - The COVID-19 pandemic continued to impact retail operations, particularly affecting sales in the last quarter of the fiscal year[51] - The decline in sales was particularly pronounced in the fashion segment due to the pandemic's effects[51] - The Group's performance reflects ongoing challenges in the retail environment caused by the pandemic[51] - The Group aims to enhance its product offerings and market strategies to recover from the pandemic's impact in the upcoming fiscal year[51] Segment Performance - The Group's total revenue from the cosmetics segment was 68.4%, slightly up from 68.0% in the previous year[50] - The cosmetics business segment reported a loss of HK$25,554,000, significantly improved from a loss of HK$104,898,000 in the previous year, representing a 75.7% reduction in loss[54] - The fashion business segment recorded a loss of HK$26,041,000, down from a loss of HK$34,318,000 in 2021, reflecting a 24.2% improvement[59] - The turnover of the cosmetics business was HK$342,099,000, a slight decrease of 2.7% from HK$351,570,000 in the previous year[57] - The turnover of the fashion business was HK$157,750,000, representing a decrease of 4.8% compared to HK$165,676,000 in 2021[60] Financial Position - The Group's bank balance and cash position improved by over 50% as of May 31, 2022, compared to March 31, 2022, due to government subsidies and other financial measures[66] - As of 31st March 2022, the Group's cash and bank balances amounted to HK$10,259,000, a decrease from HK$47,114,000 as of 31st March 2021[74] - The outstanding bank borrowings were HK$375,505,000, down from HK$389,494,000 as of 31st March 2021[74] - The current ratio decreased to 0.37 from 0.54, while the gearing ratio improved slightly to 1.88 from 1.98[75] - The Group's properties were valued at approximately HK$717,565,000 as of 31st March 2022, providing financial support[70] Corporate Governance - The Company has complied with all applicable laws and regulations during the year, with no material breaches reported[104] - The Company is committed to maintaining a high standard of corporate governance to safeguard shareholder interests and enhance corporate value[198] - The Company has complied with all code provisions of the then Corporate Governance Code throughout the year ended March 31, 2022[200] - The Company continues to review its corporate governance practices to meet rising expectations of shareholders and comply with regulatory requirements[200] Management and Directors - The Group's chairman, Mr. Cheng Chung Man, has over 38 years of experience in manufacturing and retail, having established the Group in 1984[124] - The CEO, Ms. Lam Yuk Sum, has over 35 years of experience in fashion design and retail, responsible for day-to-day management[125] - Mr. Lam Man Tin has been an independent non-executive director since February 2, 2016, with over 30 years of experience in the retail and service industries[128] - Mr. Au-Yeung Hau Cheong has extensive experience in the property leasing industry since 1970, previously serving as general manager at Sun Hung Kai Real Estate Agency Limited[132] - Mr. Yeung Wing Kay has over 25 years of experience as a Certified Public Accountant and has been an independent non-executive director since September 17, 2004[134] Shareholder Information - The Company did not enter into any new or existing equity-linked agreements during the year ended March 31, 2022[141] - The share option scheme approved on August 30, 2013, has a remaining life of one year and five months as of March 31, 2022[142] - No share options were granted to directors or substantial shareholders during the year, and there are no outstanding options under the share option scheme[144] - As of March 31, 2022, Mr. Cheng Chung Man, the founder, holds 1,393,347,737 shares, representing 62.69% of the issued share capital[152] - Ms. Lam Yuk Sum, the Chief Executive Officer, holds 1,666,263,750 shares, representing 66.17% of the issued share capital[152] Sustainability and Development - The Group's commitment to sustainable development includes adherence to environmental protection laws and effective policies[103] - The Company recognizes employees, customers, suppliers, and business partners as key stakeholders for corporate sustainability[111] Audit and Compliance - Ernst & Young was appointed as the auditor of the Company after Deloitte Touche Tohmatsu resigned during the year[192] - The emolument policy for senior management is based on merit, qualifications, and competence, with recommendations made by the Remuneration Committee[182] Other Information - There were no material subsequent events undertaken by the Company or the Group after March 31, 2022, up to the date of the annual report[191] - The Company maintained a sufficient public float throughout the year ended March 31, 2022, as required under the Listing Rules[189] - The aggregate purchases from the Group's five largest suppliers accounted for 47.8% of total purchases for the year, with the largest supplier contributing 22.6%[175] - The aggregate sales from the Group's five largest customers were less than 30% of the Group's total sales for the year[179]

Financial Performance - For the six months ended September 30, 2021, Veeko reported a revenue of HKD 264,468,000, representing an increase of 15.4% compared to HKD 229,091,000 for the same period in 2020[4] - The gross profit for the same period was HKD 106,368,000, with a gross margin of approximately 40.1%, compared to HKD 93,521,000 in 2020[4] - The company recorded a loss before tax of HKD 21,687,000, an improvement from a loss of HKD 90,300,000 in the previous year[4] - Basic and diluted loss per share improved to HKD 0.886 from HKD 3.629 in the prior year[4] - Total comprehensive income for the period was HKD 7,760,000, compared to HKD 4,345,000 in the same period last year[4] - For the six months ended September 30, 2021, the company reported a net loss of HKD 22,320,000 compared to a net loss of HKD 91,388,000 for the same period in 2020[16] - The total comprehensive income for the period was a loss of HKD 22,320,000, which includes other comprehensive income of HKD 7,760,000[16] - The group recorded a revenue of HKD 264,468,000 for the six months ended September 30, 2021, representing a 15.4% increase compared to HKD 229,091,000 in the same period last year[58] - The group reported a loss of HKD 22,320,000, a 75.6% reduction from a loss of HKD 91,388,000 in the previous year[58] Assets and Liabilities - Non-current assets as of September 30, 2021, amounted to HKD 522,478,000, an increase from HKD 509,275,000 as of March 31, 2021[6] - Current liabilities increased to HKD 549,540,000 from HKD 558,772,000, indicating a slight improvement in the company's liquidity position[6] - The company’s net current liabilities as of September 30, 2021, were HKD 294,562,000, indicating a need for careful cash flow management[16] - The group’s current ratio was 0.46, compared to 0.54 as of March 31, 2021, indicating a decrease in liquidity[66] - The group’s total bank borrowings amounted to HKD 392,068,000, slightly up from HKD 389,494,000 as of March 31, 2021[66] Cash Flow - Cash and cash equivalents decreased by HKD 10,062,000, resulting in a balance of HKD 37,839,000 as of September 30, 2021[14] - The net cash generated from operating activities was HKD 56,166,000, while cash used in investing activities was HKD (474,000) and cash used in financing activities was HKD (65,754,000)[12] - The group’s cash and bank balances were HKD 37,839,000 at the end of the reporting period, down from HKD 47,114,000 as of March 31, 2021[66] Revenue Segmentation - Revenue from cosmetics sales was HKD 184,562,000, while revenue from women's fashion was HKD 79,906,000, totaling HKD 264,468,000 for the period[21] - The cosmetics segment generated revenue of HKD 184,562,000, up 19.2% from HKD 154,858,000, accounting for 69.8% of total revenue[60] - The fashion segment's revenue reached HKD 79,906,000, a 7.6% increase from HKD 74,233,000[61] Operational Developments - The company plans to focus on market expansion and new product development in the upcoming quarters[4] - Veeko is exploring potential mergers and acquisitions to enhance its market presence and operational capabilities[4] - The company continues to assess market conditions and operational needs to ensure ongoing financial stability[16] - The group plans to continue focusing on online and offline business growth through partnerships with major e-commerce platforms[63] Shareholder Information - As of September 30, 2021, the total number of issued ordinary shares is 1,578,566,964, representing 62.69% of the company's total issued share capital[80] - The major shareholder, Silver Crown, holds 1,393,347,737 shares, accounting for 55.34% of the issued ordinary shares[86] - No share options were granted to directors or major shareholders during the reporting period, and there were no unexercised share options[73] Governance and Compliance - The audit committee reviewed the unaudited results for the six months ending September 30, 2021, which have not been reviewed by the independent auditor[91] - The company has complied with all provisions of the Corporate Governance Code during the reporting period[89] - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers and all directors confirmed compliance during the reporting period[90] Employee and Stakeholder Relations - The company expressed gratitude to all employees for their loyalty and contributions, as well as to shareholders, customers, suppliers, and business partners for their support[92]

Financial Performance - For the year ended March 31, 2021, the Group recorded revenue of HK$517,246,000, a decrease of 50.4% compared to HK$1,042,397,000 in 2020[25][26]. - Revenue from the cosmetics business was HK$351,570,000, down 57.9% year-on-year, accounting for 68.0% of total revenue[25][26]. - The fashion business generated revenue of HK$165,676,000, representing a decrease of 19.7% compared to the previous year[25][26]. - The Group reported a loss of HK$184,882,000, which is a 28.5% reduction from the loss of HK$258,448,000 in 2020[27][29]. - The cosmetics segment recorded a loss of HK$104,898,000, while the fashion segment incurred a loss of HK$34,318,000[28]. - The loss for the fiscal year, excluding non-cash impairment provisions, was approximately HK$94,155,000, narrowing by 49.1% from HK$185,098,000 in 2020[28]. Impairment and Provisions - The Group made impairment provisions totaling approximately HK$61,798,000 for the year, similar to the previous year's provision of HK$61,643,000[28]. - The Group recognized provisions totaling HK$47,166,000 for the cosmetics business, down from HK$49,516,000 in the previous year[33]. - Excluding non-cash impairments, the cosmetics business loss would be approximately HK$57,732,000, a 53.5% decrease from HK$124,202,000 in the previous year[33]. Government Support - The Group recognized government subsidies related to pandemic relief amounting to HK$43,066,000 during the year[28]. - The Group recognized HK$43,066,000 in government anti-epidemic allowances and subsidies during the year[30]. Sales Performance - In April and May 2021, same-store sales for the fashion business in Hong Kong and Macau increased by approximately 15%, while sales in China rose by over 55%[40]. - Same-store sales for the cosmetics business in Hong Kong and Macau increased by approximately 65% in April and May 2021 compared to the same period last year[40]. Financial Position - The Group's cash and bank balances at the end of the reporting period amounted to HK$47,114,000, an increase from HK$26,476,000 as of 31st March 2020[45]. - Outstanding bank borrowings decreased to HK$389,494,000 from HK$420,059,000 as of 31st March 2020[45]. - The current ratio was 0.54, down from 0.72 as of 31st March 2020, while the gearing ratio increased to 1.98 from 1.19[46]. - The Group's properties were valued at approximately HK$677,474,000 as of 31st March 2021, providing financial support[43]. - The Group had banking facilities amounting to HK$479,571,000, with HK$395,166,000 utilized as of 31st March 2021[48]. Operational Strategies - The Group plans to continue collaborating with e-commerce platforms to enhance brand awareness and increase turnover[43]. - The Group has implemented measures to negotiate rent reductions and control costs to cope with challenges ahead[43]. Human Resources - The number of employees decreased to approximately 1,100 from 1,300 as of 31st March 2020[58]. Corporate Governance - The Company has complied with all code provisions as set out in the Corporate Governance Code throughout the year ended March 31, 2021[183]. - The roles of Chairman and Chief Executive Officer are clearly divided and performed by different individuals to ensure a balanced distribution of power and authority[200]. - The Board currently comprises six members, including two executive directors, one non-executive director, and three independent non-executive directors[192]. - The Company has established written guidelines for securities transactions by employees likely to possess inside information, with no incidents of non-compliance noted[186]. Share Options and Equity - The Company has adopted a share option scheme as an incentive for directors and eligible employees[166]. - The total number of shares available for issue under the share option scheme is 145,534,764, representing approximately 5.78% of the issued share capital of the Company as at the date of this report[130]. - The Company granted 19,300,000 share options during the year, with an exercise price of HK$0.0534 per share[128]. - As of 31st March 2021, there were 45,220,000 outstanding share options[128]. Director Information - The biographical information of the directors is detailed in the annual report, providing insights into their backgrounds and expertise[195]. - The Company emphasizes the importance of stakeholders, including employees, customers, and suppliers, for corporate sustainability[74].

Financial Performance - For the six months ended September 30, 2020, the company reported a revenue of HKD 229,091,000, a decrease of 61.9% compared to HKD 601,843,000 in the same period last year[6] - The gross profit for the same period was HKD 93,521,000, down 59.3% from HKD 229,986,000 year-on-year[6] - The company recorded a loss before tax of HKD 90,300,000, compared to a loss of HKD 108,920,000 in the previous year, indicating a 17.1% improvement[6] - The net loss for the period was HKD 91,388,000, a decrease of 18.5% from HKD 112,273,000 in the prior year[6] - Total comprehensive loss for the period was HKD 87,043,000, compared to HKD 115,909,000 in the same period last year, reflecting a 25% reduction[6] - The basic and diluted loss per share was HKD 3.629, an improvement from HKD 4.459 in the previous year[6] - The company did not declare any dividends for the current period, compared to HKD 2,518,000 in the same period last year[6] - The company reported a pre-tax loss of HKD 90,300,000 for the period, reflecting ongoing challenges in the market[21] - The company reported a net loss attributable to shareholders of HKD 91,388,000 for the six months ended September 30, 2020, compared to a net loss of HKD 112,273,000 for the same period in 2019, representing a 18.5% improvement[45] - The group recorded a revenue of HKD 229,091,000 for the six months ended September 30, 2020, a decrease of 61.9% compared to HKD 601,843,000 in the same period last year[60] - The cosmetics segment generated revenue of HKD 154,858,000, down 68.6% from HKD 493,295,000 in the previous year, accounting for 67.6% of total revenue[62] - The fashion segment's revenue was HKD 74,233,000, a decline of 31.6% from HKD 108,548,000 in the prior year[63] - The group reported a loss of HKD 91,388,000, which is an 18.6% improvement from a loss of HKD 112,273,000 in the previous year[60] Assets and Liabilities - The company's non-current assets decreased to HKD 570,697,000 from HKD 665,072,000, a decline of 14.2%[7] - Current assets were reported at HKD 409,671,000, down from HKD 464,458,000, representing a decrease of 11.8%[7] - The company's total liabilities increased to HKD 624,671,000 from HKD 646,522,000, a slight decrease of 3.4%[8] - The company has a net current liability position of HKD 215,000,000, which raises concerns regarding liquidity and future cash flow management[14] - The total liabilities as of September 30, 2020, included trade payables of HKD 13,054,000, down from HKD 20,257,000 as of March 31, 2020, showing a 35.4% decrease[54] - The company’s total assets pledged to banks for financing facilities amounted to HKD 423,069,000 as of September 30, 2020, compared to HKD 439,360,000 as of March 31, 2020[56] - The company provided guarantees totaling HKD 733,059,000 for certain bank financing facilities of its subsidiaries as of September 30, 2020, compared to HKD 729,582,000 as of March 31, 2020[73] Cash Flow and Expenditures - The net cash generated from operating activities for the six months ended September 30, 2020, was HKD 95,177,000, a significant increase from HKD 22,753,000 in the same period last year[11] - Cash and cash equivalents increased by HKD 18,223,000 during the reporting period, compared to a decrease of HKD 22,012,000 in the previous year[11] - The total cash and cash equivalents at the end of the reporting period stood at HKD 45,008,000, up from HKD 33,462,000 a year earlier[11] - The group has cash and bank balances of HKD 45,008,000 as of the end of the reporting period, up from HKD 26,476,000 on March 31, 2020[69] - The group’s current ratio was 0.66, down from 0.72 on March 31, 2020, while the debt ratio increased to 1.59 from 1.19[69] - The company is considering potential actions to reduce cash expenditures or increase credit facilities in response to market conditions[14] - The group will focus on cost control measures, including negotiating rent reductions and reducing inventory levels to strengthen cash flow[68] Operational Performance - The operating loss for the cosmetics segment was HKD 58,114,000 and for the fashion segment was HKD 10,268,000, totaling an overall operating loss of HKD 68,382,000 for the six months ended September 30, 2020[23] - The loss in the cosmetics segment was HKD 58,114,000, compared to a loss of HKD 60,075,000 last year, including an impairment of HKD 23,920,000 related to loss-making retail stores[62] - The fashion segment recorded a loss of HKD 10,268,000, improved from a loss of HKD 24,036,000 in the previous year[63] - The company has identified potential downward factors affecting operations and is actively assessing its cash flow forecasts[14] - The decline in investment property fair value was reported at HKD 16,003,000, contributing to the overall financial challenges faced[21] Taxation and Government Support - The income tax expense for the six months ended September 30, 2020, was HKD 1,088,000, compared to HKD 3,353,000 for the same period in 2019[36] - The company has implemented a two-tier profit tax system in Hong Kong, with a tax rate of 8.25% on the first HKD 2 million of assessable profits and 16.5% on profits exceeding that amount[37] - The company received cash subsidies totaling HKD 31,551,000 from the Hong Kong SAR government under various relief programs during the reporting period[50] Employee and Governance - The group employed approximately 1,300 employees as of September 30, 2020, consistent with the number as of March 31, 2020[74] - The total number of stock options held by employees as of September 30, 2020, was 18,280,000, after accounting for cancellations[77] - The company did not purchase, sell, or redeem any of its listed securities during the six months ending September 30, 2020[90] - The board confirmed compliance with all provisions of the Corporate Governance Code during the six months ending September 30, 2020[90] - The audit committee reviewed the unaudited results for the six months ending September 30, 2020, which included all three independent non-executive directors[91] - The company has not granted any stock options to directors or major shareholders during the reporting period[76] - The major shareholder, Silver Crown, holds 1,393,347,737 shares, representing 55.34% of the issued share capital[88] - The company expressed gratitude to all employees for their loyal service and contributions during the reporting period[92]

Financial Performance - For the year ended March 31, 2020, the Group recorded a revenue of HK$1,042,397,000, a decrease of 38.4% compared to HK$1,693,426,000 in 2019[15]. - The cosmetics business generated revenue of HK$836,040,000, down 40.6% from HK$1,408,287,000 in the previous year, accounting for 80.2% of total revenue[16]. - The fashion business revenue was HK$206,357,000, representing a decrease of 27.6% from HK$285,139,000 in 2019[16]. - The Group recorded a loss of HK$258,448,000 for the year, compared to a loss of HK$79,351,000 in 2019, primarily due to a weak retail environment and the impact of COVID-19[17][18]. - The cosmetics business generated revenue of HK$836,040,000, representing a 40.6% decrease from HK$1,408,287,000 in 2019, with a segment loss of HK$173,718,000 compared to a loss of HK$52,884,000 in the previous year[20][24]. - The fashion business revenue was HK$206,357,000, down 27.6% from HK$285,139,000 in 2019, with a segment loss of HK$57,202,000 compared to a loss of HK$29,797,000 in 2019[24][26]. - The overall loss, excluding non-cash provisions, would have been approximately HK$185,097,000 for the financial year, compared to HK$64,409,000 in 2019[18]. Impairment and Provisions - The Group made provisions for impairment totaling approximately HK$61,643,000, including HK$49,516,000 for the cosmetics segment and HK$12,127,000 for the fashion segment[18][20][26]. - The Group's total provisions for the year included HK$36,021,000 in 2019, indicating an increase in financial strain due to the pandemic[18][20]. - The loss for the year included a decrease in fair value of investment properties amounting to HK$11,707,000, compared to an appreciation of HK$21,079,000 in 2019[18]. Liquidity and Financial Position - The Group's cash and bank balances at the end of the reporting period amounted to HK$26,476,000, down from HK$56,064,000 as of March 31, 2019[35]. - Outstanding bank borrowings increased to HK$420,059,000 as of March 31, 2020, compared to HK$265,590,000 as of March 31, 2019[35]. - The current ratio decreased to 0.72 from 1.61 as of March 31, 2019, indicating a decline in liquidity[37]. - The gearing ratio rose to 1.19 from 0.42 as of March 31, 2019, reflecting increased financial leverage[37]. - The amount of assets pledged to secure banking facilities increased to HK$439,360,000 as of March 31, 2020, from HK$329,104,000 as of March 31, 2019[42]. Cost Management and Operational Challenges - Management implemented cost-reduction measures, including lowering inventory levels and negotiating rent concessions, to improve liquidity[23][25]. - The Group's operational challenges were exacerbated by social unrest in Hong Kong and the impact of the COVID-19 epidemic on consumer sentiment[20][24]. - The fashion business sales in Hong Kong and Macau increased by over 70% in May 2020 compared to April 2020[28]. Employee and Corporate Governance - As of March 31, 2020, the Group had approximately 1,300 employees, a decrease from approximately 1,700 employees as of March 31, 2019[46]. - The Company has distributable reserves amounting to HK$53,135,000 and retained profits of HK$1,478,000 as of March 31, 2020, compared to HK$6,663,000 in retained profits in 2019[57]. - No interim or final dividends were declared for the year ended March 31, 2020[53]. - The Company recognizes employees, customers, suppliers, and business partners as key stakeholders for corporate success[50]. - The Company has implemented a reward scheme for staff based on individual performance, including share options for key employees[46]. Board and Management Structure - The Board currently comprises six members, consisting of two executive directors, one non-executive director, and three independent non-executive directors[141]. - The roles of Chairman and Chief Executive Officer are clearly divided and performed by different individuals to ensure a balanced distribution of power[149]. - The Company has formalized written terms on the division of functions between the Board and management[162]. - Day-to-day management is delegated to the Chief Executive Officer and senior management, with Board approval required for significant transactions[163]. - Directors receive formal induction and continuous professional development to ensure they are informed about their responsibilities[174][175]. Corporate Governance Practices - The Company has complied with all code provisions as set out in the Corporate Governance Code throughout the year ended March 31, 2020[135]. - The Company continues to review its corporate governance practices to enhance standards and comply with regulatory requirements[135]. - The Audit Committee and the majority of the Remuneration and Nomination Committees are composed of independent non-executive directors, enhancing corporate governance[190]. - The Company has adopted a Board Diversity Policy, recognizing that increasing diversity at the Board level is essential for maintaining competitive advantage[198]. Share Options and Director Interests - The total number of shares to be issued upon exercise of the outstanding options is 19,080,000, representing approximately 0.8% of the issued share capital of the Company as of the report date[103]. - The interests of Mr. Cheng Chung Man, the founder, and Ms. Lam Yuk Sum, the Chief Executive Officer, in the shares of the Company are 1,393,347,737 and 272,916,013 respectively, representing 62.69% and 66.17% of the issued share capital[105]. - The Company has not entered into any arrangements that would allow directors to benefit from purchasing shares or debentures of the Company or any other company during the year[108].

Financial Performance - Revenue for the six months ended September 30, 2019, was HKD 4,601,843, a decrease from HKD 869,799 in the same period of 2018[5] - Gross profit for the period was HKD 229,986, down from HKD 323,390 year-on-year, reflecting a decline in profitability[5] - The company reported a loss before tax of HKD 108,920, compared to a loss of HKD 16,309 in the previous year[5] - Basic and diluted loss per share was HKD 4.459, significantly higher than HKD 0.775 in the same period last year[6] - Total comprehensive loss for the period was HKD 115,909, compared to a loss of HKD 25,291 in the previous year[6] - The company recorded a loss of HKD 112,273,000 for the six months ended September 30, 2019, indicating financial challenges during this period[16] - The company reported a total loss before tax of HKD 108,920,000 for the period, compared to a loss of HKD 16,309,000 in the same period of the previous year[69] - The group incurred a loss of HKD 112,273,000, significantly higher than the loss of HKD 19,049,000 in the previous year, primarily due to declining sales in the retail market[93] Revenue Breakdown - Total revenue for the six months ended September 30, 2019, was HKD 601,843,000, a decrease from HKD 869,799,000 in the same period of 2018, representing a decline of approximately 30.8%[75] - Revenue from cosmetics amounted to HKD 493,295,000, while revenue from women's fashion was HKD 108,548,000, indicating that cosmetics accounted for approximately 81.9% of total revenue[68] - Revenue from Hong Kong and Macau was HKD 592,946,000, which constituted about 98.5% of total revenue, while revenue from other regions in China was HKD 8,897,000[75] - The cosmetics segment generated revenue of HKD 493,295,000, down 33.0% year-on-year, accounting for 82.0% of total revenue[93] Assets and Liabilities - Non-current assets increased to HKD 638,248 from HKD 425,478 as of March 31, 2019, indicating growth in long-term investments[7] - Current assets totaled HKD 564,777, a slight decrease from HKD 597,373 as of March 31, 2019[7] - The company’s total liabilities increased to HKD 566,498 from HKD 371,503, indicating a rise in financial obligations[9] - As of September 30, 2019, the company's current liabilities exceeded current assets by HKD 1,721,000, raising concerns about liquidity[16] - The company had undrawn borrowing facilities of approximately HKD 69,703,000 as of September 30, 2019, which may support future financial obligations[16] Cash Flow - The company reported a net cash inflow from operating activities of HKD 22,753,000 for the six months ended September 30, 2019, compared to a net outflow of HKD 24,042,000 in the previous year[14] - The net cash outflow from investing activities was HKD 109,684,000, significantly higher than the HKD 6,442,000 recorded in the same period last year[14] - The net cash inflow from financing activities was HKD 64,919,000, a substantial increase from HKD 2,703,000 in the prior year[14] - The cash and cash equivalents decreased by HKD 22,012,000 during the period, ending with HKD 33,462,000 as of September 30, 2019[14] Dividends - The company declared a dividend of HKD 2,518, down from HKD 12,288 in the previous year, reflecting a conservative approach amid losses[6] - The company declared a final dividend of HKD 0.1 per share for the year 2019, totaling HKD 2,518,000, down from HKD 12,288,000 in 2018[82] Accounting Standards - The company adopted new accounting standards, including HKFRS 16 on leases, which may impact future financial reporting[19] - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards and relevant disclosure requirements[16] - The company applied the new Hong Kong Financial Reporting Standard 16 retrospectively, confirming cumulative effects on the initial application date without restating comparative information[42] - The company will measure lease liabilities at the present value of unpaid lease payments as of the lease commencement date[32] Operational Changes - The company is focusing on expanding its product offerings and market presence to drive future growth[6] - The group plans to adjust market strategies and explore e-commerce platforms to drive growth in the cosmetics business[98] - The group has closed 8 underperforming cosmetics stores, reducing the total to 80 stores as of September 30, 2019[95] - The fashion segment reported a loss of HKD 24,036,000, compared to a loss of HKD 13,521,000 in the previous year, with total stores reduced to 81[96] Employee and Shareholder Information - The group employed approximately 1,500 staff as of September 30, 2019, down from about 1,700 staff as of March 31, 2019[105] - The company’s major shareholder, Silver Crown, holds 1,393,347,737 shares, representing 55.34% of the issued share capital[111] - The CEO, Lin Yusen, holds a total of 1,666,263,750 shares, which is 66.17% of the issued share capital[108] Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code during the reporting period[113] - The audit committee reviewed the unaudited results for the six months ending September 30, 2019[114] - The company has adopted the standard code for securities transactions by directors as per the listing rules[113]

Financial Performance - For the fiscal year ending March 31, 2019, the group recorded a revenue of HKD 1,693,426,000, a decrease of 12.2% compared to HKD 1,928,320,000 in 2018[18] - The cosmetics segment generated revenue of HKD 1,408,287,000, down 10.5% year-on-year, accounting for 83.2% of total revenue[18] - The fashion segment's revenue was HKD 285,139,000, reflecting a decline of 19.6% from HKD 354,453,000 in the previous year[18] - The group reported a loss of HKD 79,351,000 for the year, compared to a profit of HKD 5,262,000 in 2018, primarily due to a cautious consumer market[19] - The cosmetics division incurred a loss of HKD 52,884,000, while the fashion division recorded a loss of HKD 29,797,000[19] - The group experienced a notable decline in sales during the second half of the fiscal year, particularly in the cosmetics and fashion categories[19] Inventory and Provisions - Inventory write-offs and provisions for slow-moving stock amounted to approximately HKD 17,533,000 for the year[19] - Provisions related to loss-making stores totaled about HKD 33,700,000 as of March 31, 2019[19] Market Conditions - The retail environment was impacted by the US-China trade war and fluctuations in the global financial market, leading to a cautious consumer sentiment[18] Gross Profit Margins - The gross profit margin for the cosmetics business decreased by 0.6 percentage points to 31.1%[24] - The gross profit margin for the fashion business decreased by 3.3 percentage points to 66.8%[28] Strategic Plans - The Group plans to strategically adjust its product portfolio and explore new products to enhance competitiveness and meet changing customer demands[31] - The Group is actively exploring e-commerce platforms to drive growth in the cosmetics business and expand its customer base[31] Financial Position - The Group's working capital decreased from HK$311,550,000 as of March 31, 2018, to HK$225,870,000 at the end of the reporting period[42] - Cash and bank balances amounted to HK$56,064,000, down from HK$65,168,000 as of March 31, 2018[43] - Outstanding bank borrowings were HK$265,590,000, slightly reduced from HK$269,206,000 as of March 31, 2018[43] - The current ratio decreased to 1.61 times from 1.84 times as of March 31, 2018, while the gearing ratio increased to 0.42 from 0.37[44] - The Group's banking facilities increased to HK$429,240,000 from HK$357,810,000 as of March 31, 2018, with HK$282,555,000 utilized[46] Procurement Costs - Approximately 34% of the Group's procurement costs were in foreign currencies, up from 22% in the previous year[47] Property Acquisition - The Group acquired a property for HK$117,500,000, with total costs including transaction costs around HK$128,458,000, aimed at generating rental income[37] Market Focus - The Hong Kong and Macau market accounted for 92.9% of the total revenue of the fashion business, with a focus on optimizing product design and closing underperforming stores[35] Dividends - The Group declared an interim dividend of HK$0.2 cents per share, amounting to HK$5,036,000, settled in cash[78] - The directors recommended a final dividend of HK$0.1 cents per share, amounting to HK$2,518,000, pending shareholder approval[78] Corporate Governance - The Company has maintained high standards of corporate governance to enhance transparency and accountability in the interests of shareholders[1] - The Company has complied with all code provisions of the Corporate Governance Code throughout the year ended 31st March, 2019[3] - The roles of Chairman and Chief Executive Officer are clearly divided and held by different individuals to ensure a balanced distribution of power[155] - The Company continues to review its corporate governance practices to meet rising expectations of shareholders and investors[1] Board Composition and Meetings - The Board comprises six members, including two executive directors, one non-executive director, and three independent non-executive directors[149] - The Company conducts at least four regular Board meetings annually, with additional meetings arranged as needed to discuss significant issues[167] - The Audit Committee held six meetings during the year ended March 31, 2019, with the Chairman and CEO attending five of them[190] Risk Management - The Company confirmed that there are no significant uncertainties regarding its ability to continue as a going concern[199] - The effectiveness of the financial reporting and internal control systems, including risk management functions, was reviewed by the Audit Committee[190] Directors' Responsibilities - The directors acknowledge their responsibility for preparing the consolidated financial statements for the year ended March 31, 2019[200] - The consolidated financial statements are prepared in accordance with statutory requirements and applicable accounting standards[200] - The directors ensure that the financial statements give a true and fair view of the state of affairs of the Group[200]