Financial Performance - Total comprehensive loss for the period ended September 30, 2023, was HK$142,055,000, compared to a profit of HK$124,463,000 in the previous period[14]. - For the six months ended September 30, 2023, the company reported a total revenue of HK$11,942,000, compared to HK$3,116,000 for the same period in 2022, representing a significant increase of 283%[31]. - Profit attributable to equity holders of the Company was HK$124.5 million, a decrease of approximately 49.8% compared to HK$248.2 million for the same period in 2022[53]. - The decrease in profit was primarily due to a 16.9% drop in sales revenue, higher fixed costs per unit from lower production facility utilization, and an impairment loss of approximately HK$10.0 million from an investment in Teejay Lanka PLC[53]. - Profit for the period attributable to equity holders of the Company was HK$124,463,000, compared to HK$248,179,000, representing a decline of 50%[68]. - The company reported a profit for the period of HK$124,463,000, compared to a profit of HK$128,248,000 in the previous period, indicating a slight decrease of 2.2%[73]. Revenue and Sales - Revenue for the six months ended September 30, 2023, was HK$2,294,749,000, a decrease of 16.8% compared to HK$2,761,191 in the same period of 2022[143]. - Revenue from Vietnam increased to HK$1,246,914,000 compared to HK$811,215,000 as of March 31, 2023, reflecting a significant growth[172]. - The Group's total revenue for the period was HK$2,336,902,000, up from HK$1,960,608,000 for the previous period[172]. Expenses and Costs - The Group's cost of sales was HK$2,080.8 million, representing a decrease of approximately 14.4% from HK$2,432.0 million in the previous year, consistent with the revenue decline[53]. - Selling and distribution expenses slightly decreased to HK$19.0 million from HK$21.5 million in 2022[54]. - Administration expenses decreased to HK$82.8 million from HK$90.3 million in 2022[54]. - Finance costs increased by approximately 68.8% to HK$34.6 million from HK$20.5 million in 2022[54]. - General and administrative expenses decreased to HK$82,826,000 from HK$90,261,000, reflecting a reduction of approximately 8%[68]. Assets and Liabilities - Total assets as of 30 September 2023 were HK$5,375.2 million, a decrease of approximately 2.8% from HK$5,529.3 million on 31 March 2023[54]. - Current liabilities were HK$2,150.2 million and non-current liabilities were HK$221.7 million as of 30 September 2023[56]. - The company’s inventories rose from HK$964,821,000 to HK$990,101,000, an increase of about 2.6%[71]. - Total liabilities decreased from HK$2,440,740,000 to HK$2,371,936,000, indicating a reduction of approximately 2.8%[72]. Cash Flow and Financing - Cash and cash equivalents decreased from HK$1,187,110,000 to HK$808,782,000, a decline of approximately 31.8%[71]. - Net cash inflow from operating activities was HK$269,925,000, down from HK$421,961,000, reflecting a decrease of 36%[99]. - Net cash outflow from financing activities was HK$259,500,000, compared to an outflow of HK$67,554,000 in the same period last year, representing an increase in outflow of 284.5%[99]. Borrowings and Debt - As of September 30, 2023, the Group's bank borrowings amounted to HK$1,154,827,000, a decrease from HK$1,320,277,000 as of March 31, 2023, representing a reduction of approximately 12.5%[20]. - The Group's total borrowings secured by corporate guarantees provided by the Company were HK$676,104,000 as of September 30, 2023, down from HK$910,511,000 as of March 31, 2023, indicating a decrease of approximately 25.7%[28]. - The Group's borrowings included in current liabilities were HK$1,154,827,000 as of September 30, 2023, compared to HK$1,320,277,000 as of March 31, 2023, indicating a decrease of approximately 12.5%[20]. Investments and Capital Expenditure - Capital expenditure contracted but not yet incurred as of September 30, 2023, is HK$462,636,000, down 22.6% from HK$597,487,000 as of March 31, 2023[8]. - The Group's total capital expenditure increased by approximately 667.4% to HK$624.9 million from HK$81.4 million in 2022, mainly for the construction of a second factory in Vietnam[56]. Dividends and Share Capital - Dividends paid during the period amounted to HK$56,120,000, reflecting a reduction in cash outflow[14]. - The company declared an interim dividend of HK$0.07 per share for the six months ended September 30, 2023, down from HK$0.15 per share in 2022[33]. - The issued share capital of the company was reduced by the par value of the repurchased shares, which were subsequently cancelled on August 2, 2023[35]. Operational Highlights - The new factory in Vietnam is expected to reach a maximum production capacity of 34 million pounds per year in the first phase, with trial runs scheduled for January 2024 and full production anticipated in Q2 2024[62]. - The management expects a rebound in profitability in the financial year 2024/25 when the new Vietnam factory is in full production[62]. - The Group's existing factory in Vietnam is operating at close to full capacity, but its ability to take on further sales orders is limited by current design constraints[87]. Risk Management and Compliance - The Group's activities are exposed to various financial risks, including market risk, credit risk, and liquidity risk, with no changes in risk management policies since March 31, 2023[106][109]. - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34, ensuring compliance with relevant regulations[66].

[Interim Financial Information](index=1&type=section&id=Interim%20Financial%20Information) This section presents the condensed consolidated financial statements, including profit or loss, balance sheet, and detailed notes, for the interim period [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended September 30, 2023, the Group reported a 16.9% revenue decline to HKD 2.29 billion and a 49.8% decrease in profit attributable to owners of the Company to HKD 124 million Performance Summary for the Six Months Ended September 30, 2023 | Metric | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 2,294,749 | 2,761,191 | -16.9% | | Gross Profit | 213,945 | 329,239 | -35.0% | | Operating Profit | 165,124 | 257,583 | -35.9% | | Profit for the Period | 128,248 | 248,901 | -48.5% | | Profit Attributable to Owners of the Company | 124,463 | 248,179 | -49.8% | | Basic Earnings Per Share (HKD) | 0.09 | 0.18 | -50.0% | [Condensed Consolidated Balance Sheet](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) As of September 30, 2023, the Group's total assets slightly decreased by 2.8% to HKD 5.38 billion, with total equity at HKD 3.00 billion and total liabilities at HKD 2.37 billion Balance Sheet Summary (September 30, 2023 vs March 31, 2023) | Metric | September 30, 2023 (HKD thousands) | March 31, 2023 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 2,653,838 | 2,296,109 | +15.6% | | Current Assets | 2,721,353 | 3,233,208 | -15.8% | | **Total Assets** | **5,375,191** | **5,529,317** | **-2.8%** | | Current Liabilities | 2,150,187 | 2,190,965 | -1.9% | | Non-current Liabilities | 221,749 | 249,775 | -11.2% | | **Total Liabilities** | **2,371,936** | **2,440,740** | **-2.8%** | | **Total Equity** | **3,003,255** | **3,088,577** | **-2.8%** | [Notes to the Condensed Consolidated Interim Financial Information](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) These notes detail the basis of preparation, accounting policies, segment information, revenue and expense breakdown, EPS calculation, dividend policy, and balance sheet items, highlighting the Group's single operating segment, regional revenue distribution, an HKD 10 million impairment loss, and an interim dividend of HKD 0.07 per share - All of the Group's business operations are related to the manufacturing and trading of textile products, managed and reviewed as a single operating segment[17](index=17&type=chunk) - The Board declared an interim dividend of **HKD 0.07 per share**, a significant decrease from **HKD 0.15 per share** in the prior period[26](index=26&type=chunk)[49](index=49&type=chunk) - An impairment loss of **HKD 10 million** was recognized on the investment in associate Teejay Lanka PLC, as its recoverable amount was below carrying value[51](index=51&type=chunk)[27](index=27&type=chunk) Revenue by Geographical Region (For the Six Months Ended September 30) | Region | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Southeast Asia | 1,255,195 | 1,508,351 | -16.8% | | China | 607,578 | 659,558 | -7.9% | | Bangladesh | 141,583 | 180,343 | -21.5% | | Sri Lanka | 81,153 | 130,575 | -37.9% | | Hong Kong | 86,440 | 105,935 | -18.4% | | Others | 122,800 | 176,429 | -30.4% | | **Total** | **2,294,749** | **2,761,191** | **-16.9%** | [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business and financial performance, liquidity, financial resources, capital structure, and future outlook [Business and Financial Review](index=13&type=section&id=Business%20and%20Financial%20Review) During the review period, the Group faced challenging financial performance with revenue declining by 16.9% due to lower sales volume and average selling prices, and profit attributable to owners of the Company significantly decreasing by 49.8% to HKD 124.5 million - Revenue decreased by **16.9%** to **HKD 2.295 billion**, resulting from a **7.4%** decline in sales volume and a **10.3%** decrease in average selling price[32](index=32&type=chunk) - Profit attributable to owners of the Company decreased by **49.8%** to **HKD 124.5 million**; excluding the **HKD 10 million** impairment loss, profit still declined by **45.8%**[33](index=33&type=chunk)[34](index=34&type=chunk) Key Financial Ratios (For the Six Months Ended September 30) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Gross Profit Margin | 9.3% | 11.9% | | Return on Equity | 4.3% | 7.8% | | Interest Coverage Ratio | 5.5 times | 19.5 times | [Liquidity, Financial Resources and Capital Structure](index=15&type=section&id=Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) The Group maintained prudent financial management, with net debt increasing to HKD 466 million due to higher capital expenditure of HKD 625 million for new factory construction, while the debt-to-equity ratio remained at 79.0% - Total capital expenditure significantly increased by **667.4%** year-over-year to **HKD 625 million**, primarily for the construction of the second factory in Vietnam[87](index=87&type=chunk) - Net debt increased from **HKD 99.4 million** to **HKD 465.5 million**, mainly due to advance payments for the new factory construction in Vietnam[86](index=86&type=chunk) Key Liquidity Ratios | Metric | September 30, 2023 | March 31, 2023 | | :--- | :--- | :--- | | Current Ratio | 1.3 | 1.5 | | Quick Ratio | 0.8 | 1.0 | | Gearing Ratio | 42.8% | 47.0% | | Debt-to-equity Ratio | 79.0% | 79.0% | [Prospects and Outlook](index=17&type=section&id=Prospects%20and%20Outlook) Management anticipates an uncertain short-term economic outlook but remains optimistic about medium-term growth, implementing strategies like sales team enhancement and production optimization, with the new Vietnam plant expected to boost capacity and profitability upon full operation in Q2 2024 - Construction of the new Vietnam plant is progressing well, with trial production scheduled for **January 2024** and full operation by **Q2 2024**, reaching a maximum annual production capacity of **34 million pounds** in its first phase[98](index=98&type=chunk) - Despite short-term economic uncertainties influenced by geopolitics, interest rates, and slowing growth in key markets, management remains optimistic about the Group's medium-term growth and expects profitability to rebound in the **2024/25 fiscal year**[124](index=124&type=chunk) - To enhance competitiveness, the Group is implementing several measures, including strengthening the sales team, developing new product lines to expand into the China market, and optimizing production processes and cost management[122](index=122&type=chunk)[97](index=97&type=chunk) [Corporate Governance and Other Information](index=18&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers the Group's dividend policy, share repurchase activities, and adherence to corporate governance principles [Dividends and Share Repurchase](index=18&type=section&id=Dividends%20and%20Share%20Repurchase) The Board declared an interim dividend of HKD 0.07 per share payable on December 20, 2023, and the company repurchased 5,513,000 shares for approximately HKD 10.45 million to enhance net asset value and earnings per share - An interim dividend of **HKD 0.07 per share** was declared for the six months ended September 30, 2023[99](index=99&type=chunk) Share Repurchase Details (For the Six Months Ended September 30, 2023) | Month of Repurchase | Number of Shares Repurchased | Highest Price Per Share (HKD) | Lowest Price Per Share (HKD) | Total Consideration (HKD) | | :--- | :--- | :--- | :--- | :--- | | June 2023 | 800,000 | 1.94 | 1.85 | 1,505,500 | | July 2023 | 4,713,000 | 1.97 | 1.78 | 8,942,700 | [Corporate Governance](index=19&type=section&id=Corporate%20Governance) The company largely complied with the Corporate Governance Code, with the only deviation being the combined roles of Chairman and CEO, a structure the Board believes maintains adequate checks and balances, and the Audit Committee has reviewed the interim results - The company complied with the Corporate Governance Code under the Listing Rules, with a deviation where the roles of Chairman and Chief Executive Officer are combined[128](index=128&type=chunk)[101](index=101&type=chunk) - The company has established an Audit Committee, comprising four independent non-executive directors, responsible for overseeing financial reporting and internal control systems, and has reviewed these interim results[104](index=104&type=chunk)[130](index=130&type=chunk)

Financial Performance - The Group's revenue for the fiscal year was approximately HK$5,018.7 million, a decrease of 17.3% compared to HK$6,066.3 million in 2022, driven by a 24.5% drop in sales volume and a 9.6% increase in average sales price[41]. - Profit attributable to equity holders was approximately HK$268.6 million, representing a decrease of 53.1% from HK$572.7 million in 2022, primarily due to lower sales revenue and higher fixed cost absorption[41]. - For the year ended 31 March 2023, the Group's gross profit margin decreased to 9.8% from 12.8% in 2022[27]. - The return on equity for the year ended 31 March 2023 was 8.9%, down from 16.9% in 2022[27]. - The Group's total cash and bank balances as of 31 March 2023 were HK$1,347.5 million, a decrease from HK$1,545.1 million in 2022[28]. - The Group's distributable reserves as of March 31, 2023, amounted to approximately HK$1,939 million, a decrease from HK$2,346 million in 2022[134]. - The average effective tax rate increased to approximately 13.7%, up from 10.3% in 2022, attributed to non-deductible exchange losses[45]. Assets and Liabilities - The Group's total assets as of March 31, 2023, amounted to HKD 5,529.3 million, a decrease of approximately 7.0% from HKD 5,944.2 million in 2022[26]. - Non-current assets totaled HKD 2,296.1 million as of March 31, 2023, compared to HKD 2,124.4 million in 2022[26]. - Current assets were reported at HKD 3,233.2 million as of March 31, 2023, down from HKD 3,819.8 million in 2022[26]. - As of 31 March 2023, the Group's net debt position increased to HK$99.4 million compared to HK$34.8 million in 2022[28]. - The Group had bank loans of HK$1,320.3 million as of 31 March 2023, down from HK$1,453.7 million in 2022[28]. - The Gearing Ratio increased to 47.0% in 2023 from 46.6% in 2022, and the Debt to Equity Ratio rose from 73.3% to 79.0%[54]. Operational Developments - The Group is expecting the opening of a new factory in Vietnam soon, which is anticipated to enhance production capacity and provide favorable opportunities for business growth[16]. - Capital expenditure increased by 198.3% to HK$364.3 million, primarily for the construction of a second factory in Vietnam and environmental projects[52]. - The management expects a substantial growth in capacity to fulfill customer orders with the completion of the new factory in Vietnam by the end of the financial year 2023/24[88]. - The Group is actively expanding its domestic customer base, particularly in sportswear and high-quality synthetic fabrics[88]. Shareholder Information - The Board proposed a final dividend of HK4 cents per share for the 2023 Financial Year, down from HK14 cents in 2022, resulting in a total dividend of HK19 cents per share compared to HK35 cents in 2022[62]. - The Group's issued share capital includes significant holdings by various beneficial owners, with Fidelity Funds holding approximately 5.01%[1]. - A total of 2,687,000 shares were repurchased on the Stock Exchange at an aggregate consideration of HK$7,339,040, with the shares subsequently cancelled on 8 November 2022[111]. Management and Governance - The appointment of Ms. Ling Chi Wo Teresa as an Independent Non-executive Director is expected to enhance board diversity and bring new insights to the Group[15]. - The Group's management team includes experienced professionals with extensive backgrounds in textiles and engineering[99]. - Mr. Masaru Okutomi was appointed as Chairman and CEO of the Group on October 1, 2021, after serving as Vice Chairman since July 1, 2019[119]. - The Group's management team includes professionals with diverse backgrounds in finance, human resources, and procurement management, enhancing operational efficiency[126]. Market and Strategic Outlook - The financial year ended March 31, 2023, faced stagnant demand and fierce competition, with production costs rising but not fully reflected in sales prices[62]. - The management anticipates a rise in domestic consumption and demand for fabric with the economic recovery in mainland China[66]. - The Group aims to expand its customer base and explore new markets by launching innovative functional products and promoting sustainable textiles[41]. - The Group has established long-term relationships with strategic partners, including Toray, to support its global market penetration efforts[41]. Environmental and Social Responsibility - The Group has been recognized for its environmental efforts, receiving multiple awards for excellence in environmental protection[58][60]. - The total capital expenditure for environmental protection projects reflects the Group's commitment to sustainability[76]. - The Group is committed to exploring low-emission measures to support customers aiming for carbon neutrality by 2050[89].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 截 至2023年3月31日止財政年度 全年業績公告 下 列 人 士 應 佔 溢 利： 本公司權益持有人 268,572 572,677 非控制性權益 5,077 6,558 年度溢利 273,649 579,235 – 2 – | --- | --- | --- | --- | |-----------------------------------------|-------|-----------|-----------| | | | | | | 非流動資產 | | | | | 物 業、廠 房 及 設 備 | | 1,544,648 | 1,443,149 | | 使用權資產 | | 178,805 | 192,186 | | 於聯營公司之權益 | | 315,869 | 359,3 ...

Financial Performance - The Group's revenue for the period was approximately HK$2,761.2 million, a decrease of approximately 12.7% compared to HK$3,162.9 million in the previous year, driven by a 22.3% decrease in sales volume and a 12.4% increase in average sales price [7]. - Profit attributable to equity holders was HK$248.2 million, down approximately 28.6% from HK$347.7 million in the previous year, due to lower sales revenue and higher fixed cost absorption from reduced production facility utilization [7]. - Operating profit decreased to HK$257,583, down 31.1% from HK$374,146 in the previous year [37]. - Net profit attributable to equity holders decreased by 28.6% during the reporting period [29]. - Total comprehensive loss for the period was HK$44,118, compared to a comprehensive income of HK$405,971 in the same period last year [38]. - Earnings per share for the period was HK$0.18, down from HK$0.25 in the previous year [37]. - The company reported a profit of HK$248,179,000, a decrease from HK$347,662,000 in the same period of the previous year, representing a decline of approximately 29% [41]. Cost and Expenses - Cost of sales decreased to HK$2,432.0 million from HK$2,700.8 million, representing a decrease of approximately 10.0%, consistent with the decline in revenue [7]. - Selling and distribution expenses decreased to HK$21.5 million from HK$33.9 million, reflecting a reduction in costs [7]. - Administration expenses slightly increased to HK$90.3 million from HK$87.7 million, indicating a minor rise in operational costs [7]. - Finance costs surged by approximately 187.1% to HK$20.5 million, up from HK$7.1 million, primarily due to increased interest expenses and net foreign exchange losses on bank loans [7]. - Employee benefits expenses decreased to HK$248,666,000, down 13.8% from HK$288,338,000 in the prior year [64]. Assets and Liabilities - As of September 30, 2022, the Group's total assets increased by approximately 2.2% to HK$6,075.4 million compared to HK$5,944.2 million as of March 31, 2022 [10][13]. - Non-current assets amounted to HK$2,021.6 million, while current assets were HK$4,053.8 million as of September 30, 2022 [10][13]. - The Group's current ratio decreased to 1.5 as of September 30, 2022, down from 1.7 as of March 31, 2022 [19]. - The gearing ratio increased to 54.1% as of September 30, 2022, compared to 46.6% as of March 31, 2022 [19]. - Current liabilities rose to HK$2,886,285, an increase from HK$2,513,670 as of March 31, 2022 [40]. - Total borrowings amounted to HK$1,717,282,000, an increase from HK$1,579,901,000 as of 31 March 2022 [109]. Cash Flow and Investments - Cash generated from operations was HK$486,005,000, leading to a net cash inflow from operating activities of HK$421,961,000, significantly higher than HK$1,387,000 in the previous year [42]. - The company experienced a net cash outflow from investing activities of HK$285,894,000, compared to a net cash outflow of HK$111,415,000 in the prior year [42]. - Financing activities resulted in a net cash outflow of HK$67,554,000, contrasting with a net cash inflow of HK$92,829,000 in the same period last year [42]. - The Group's net cash position improved to HK$25.1 million as of September 30, 2022, compared to a net debt position of HK$34.8 million as of March 31, 2022 [18]. Capital Expenditure - Total capital expenditure increased by approximately 71.9% to HK$81.4 million during the review period, primarily for the construction of a second factory in Vietnam and environmental projects [18]. - The balance of property, plant, and equipment as of September 30, 2022, is HK$1,304,649,000, down from HK$1,414,619,000 in 2021, reflecting a decrease of approximately 7.7% [86]. - Additions to property, plant, and equipment for the six months ended September 30, 2022, amounted to HK$81,425,000, an increase of 74.8% compared to HK$46,554,000 in 2021 [86]. Taxation - The Group recorded an income tax expense of approximately HK$38.5 million during the period, with an effective tax rate of 13.4%, up from 9.1% in the previous period [9][12]. - The current income tax expense for the period was HK$45,078,000, an increase from HK$34,145,000 in the same period last year [67]. Employee and Management - As of September 30, 2022, the Group employed 4,564 full-time employees, a decrease from 4,697 on March 31, 2022 [27]. - The Group's remuneration package includes salary, bonuses, allowances, and retirement benefits, with no significant changes in policy [27]. - Key management compensation for the six months ended September 30, 2022, was HK$42,903,000, a decrease from HK$48,616,000 in 2021 [130]. Market and Strategic Outlook - The management remains optimistic despite short-term financial performance challenges due to stabilized material costs [29]. - Geopolitical factors, trade barriers, and inflation present uncertainties and challenges for the manufacturing business [29]. - The company plans to focus on cost reduction, flexible treasury management, and improving production efficiency [29]. - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share by the end of the year [164]. Awards and Recognition - The Company received multiple awards for new products, including the "Textile and Apparel Brand Competitiveness Enterprises of China in 2022" by CNTAC in May 2022 [22]. - A superfine denier warp knitted peach skin velvet fabric was awarded the 2022 first class award of excellent fabric by CDPA in September 2022 [24]. - The development of a superfine high-stretch peach skin velvet fabric received the "Textile Light" Innovation Contribution Award of Knitted Underwear by CNTAC [25]. Risk Management - The Group's financial risk exposure includes market risk, credit risk, and liquidity risk [48]. - The Group's risk management policies have remained unchanged since March 31, 2022 [48].

Financial Performance - The company reported a consolidated profit of HKD 1.2 billion for the fiscal year, representing a 15% increase compared to the previous year[9]. - The Group's revenue for the fiscal year was approximately HK$6,066.3 million, representing an increase of 12.7% compared to HK$5,384.9 million in 2021, driven by a 9.6% increase in average sales price[26]. - Profit attributable to equity holders decreased by 20.6% to approximately HK$572.7 million from HK$721.5 million in 2021, with a 7.9% decrease when excluding a one-time gain from property disposals[26]. - The gross margin improved to 35%, up from 32% in the previous year, due to cost optimization measures[10]. - The cash flow from operating activities was reported at HKD 800 million, indicating a strong liquidity position[13]. Revenue Growth and Market Expansion - User data showed a growth in customer base by 20%, reaching a total of 500,000 active users[3]. - The company anticipates a revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies[3]. - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share within the next two years[3]. - A strategic acquisition of a local textile manufacturer is expected to enhance production capacity by 30%[3]. - The Group aims to expand customer bases by developing high-quality functional fabrics and enhancing production capabilities, including establishing a new factory in Vietnam[26]. Research and Development - Investment in R&D increased by 25%, focusing on sustainable textile technologies and innovative fabric solutions[3]. - The Group is focusing on developing environmentally friendly and innovative functional fabrics, with seven products accredited as "Public list of Green Design Products" by the Ministry of Industry and Information Technology of China[56]. - The company has a strong focus on research and development, with key personnel having worked in laboratories across Japan, China, and the USA[68]. Cost Management and Financial Challenges - The cost of sales increased by 17.0% to approximately HK$5,290.0 million from HK$4,523.2 million in 2021, primarily due to inflation in raw materials and fuel costs[26]. - Finance costs rose by approximately 50.7% to HK$22.0 million from HK$14.6 million in 2021, mainly due to increased net exchange loss on USD bank loan revaluation[27]. - The financial year ended March 31, 2022, was marked by significant inflation in production costs, particularly for yarns, fuel, chemicals, and labor, with no expectation of returning to pre-inflation levels[51]. - Production costs have surged due to increases in yarn, fuel, chemicals, dyeing materials, and labor costs, making it difficult to revert to levels seen two years ago[55]. Corporate Governance - The Company has established an Audit Committee in compliance with the CG Code, with members including independent non-executive directors[124]. - The Company complied with applicable code provisions and best practices in corporate governance throughout the 2022 Financial Year[134]. - The Board is responsible for major decisions, including approving policies, strategies, budgets, and risk management frameworks, while day-to-day operations are managed by the executive team[141]. - The Company is committed to maintaining high standards of corporate governance to enhance transparency and accountability[133]. Management and Leadership - The Group has a strong management team with extensive experience across various industries, including textiles and telecommunications[64]. - The company aims to leverage its management expertise to drive growth and innovation in the textile sector[64]. - The management team has a diverse background in finance, operations, and engineering, enhancing the company's strategic decision-making[66]. - The company is focused on strategic planning and management to enhance operational efficiency and market competitiveness[62]. Employee and Workforce Management - As of March 31, 2022, the Group had 4,697 full-time employees, a decrease from 4,933 in 2021[48]. - The Group will continue to provide regular training and competitive remuneration packages to enhance employee motivation[49]. - The Company aims to improve gender diversity at the Board level, where currently all Directors are male, with a commitment to change this by December 31, 2024[175]. Risk Management - The Group identified key risks for the 2022 Financial Year, including business risk, strategic direction risk, and legal and compliance risk[75]. - The Group's risk management and internal control systems were assessed as effective and adequate for the year ended March 31, 2022[188]. - An independent consultancy firm was engaged to periodically appraise the adequacy and effectiveness of the Group's risk management and internal control systems[188]. Shareholder Communication - The Company maintains ongoing communication with shareholders through general meetings, with representatives present to address questions[191]. - The Company has a shareholders' communication policy that is regularly reviewed for effectiveness[190]. - Shareholders holding at least one-tenth of the paid-up capital can requisition an extraordinary general meeting[194].

Revenue and Profitability - The Group's revenue for the period was HK$3,162.9 million, representing an increase of approximately 29.0% compared to HK$2,452.7 million in the previous year[13]. - Profit attributable to equity holders decreased to HK$347.7 million, a decline of approximately 7.4% from HK$375.6 million, but increased by approximately 9.3% when excluding a one-time gain of HK$57.5 million from asset disposal[16]. - Revenue for the six months ended September 30, 2021, was HK$3,162,862,000, an increase from HK$2,452,658,000 in the same period of 2020, representing a growth of approximately 28.7%[54]. - Gross profit for the period was HK$462,058,000, compared to HK$429,977,000 in 2020, reflecting an increase of about 7.4%[54]. - Operating profit decreased to HK$374,146,000 from HK$424,297,000, a decline of approximately 11.8%[54]. - Profit for the period attributable to equity holders of the Company was HK$347,662,000, down from HK$375,556,000, indicating a decrease of around 7.4%[54]. - Basic earnings per share decreased to HK$0.25 from HK$0.27, reflecting a 7.4% decline year-over-year[89]. Costs and Expenses - Cost of sales increased to HK$2,700.8 million, up approximately 33.5% from HK$2,022.7 million, driven by higher sales and inflation in raw materials and fuel costs[15]. - Selling and distribution expenses slightly decreased to HK$33.9 million from HK$37.5 million[17]. - Administration expenses decreased to HK$87.7 million from HK$92.3 million[18]. - Finance costs decreased by approximately 52.1% to HK$7.1 million, down from HK$14.9 million, mainly due to a reduction in net exchange loss[19]. - Total cost of sales, distribution and selling expenses, and general and administrative expenses increased to HK$2,822,360,000, up from HK$2,152,517,000, representing a 31.1% increase year-over-year[81]. - Cost of raw materials and consumables used increased significantly to HK$2,385,477,000 from HK$1,778,378,000, a rise of 34.1%[81]. Assets and Liabilities - As of 30 September 2021, the total assets of the Group were HK$5,733.2 million, representing an increase of approximately 10% from HK$5,211.4 million as of 31 March 2021[29][32]. - Total liabilities amounted to HK$2,296,262,000, an increase of 23.6% from HK$1,857,739,000[57]. - The Group's net cash position as of 30 September 2021 was (HK$105.3 million), a decrease from HK$186.7 million as of 31 March 2021, primarily due to increased inventory and accounts receivables[37]. - The Group had bank loans amounting to HK$1,061.9 million as of 30 September 2021, up from HK$645.4 million as of 31 March 2021[37]. - The gearing ratio increased to 35.2% as of 30 September 2021, compared to 23.6% as of 31 March 2021[38]. Cash Flow - The cash generated from operations for the six months ended September 30, 2021, was HK$20,719,000, resulting in a net cash inflow from operating activities of HK$1,387,000[59]. - The net cash outflow from investing activities was HK$111,415,000, primarily due to the purchase of property, plant, and equipment[59]. - The net cash inflow from financing activities was HK$92,829,000, driven by the addition of borrowings amounting to HK$806,246,000[59]. Employee and Operational Metrics - As of September 30, 2021, the Group had 4,932 full-time employees, a slight decrease from 4,933 on March 31, 2021[50]. - Trade receivables turnover days were 59 days, while trade payables turnover days were 48 days[20]. - Inventories turnover days improved to 86 days from 102 days in 2020[74]. - Trade and bills receivables grew significantly to HK$1,188,680,000, a 37.7% increase from HK$863,552,000[56]. Market and Product Development - The Group is engaged in manufacturing and trading high-quality cotton and synthetic knitted fabrics[12]. - The Group plans to increase product variety, including recycled yarn fabrics and bio-based fabrics, while cautiously expanding its customer base without increasing credit risk exposure[52]. - A new factory in Vietnam is under construction, expected to be completed by the end of 2023, demonstrating management's confidence in the Group's business potential[52]. - There was a significant increase in sales to relevant customers, particularly in fabrics for sportswear and lingerie, due to rising consumer sentiment and marketing efforts[50]. Taxation - The Group recorded an income tax expense of approximately HK$35.4 million, with an average effective tax rate of approximately 9.1%, lower than the previous year's 9.4%[28]. - Current income tax expense for Hong Kong profits tax was HK$15,999,000, down from HK$18,630,000, a decrease of 8.8% year-over-year[87]. - Overseas corporate income tax increased to HK$18,146,000 from HK$12,272,000, marking a significant increase of 47.9%[87]. Corporate Governance and Compliance - The audit committee has reviewed the unaudited condensed consolidated results for the six months ended September 30, 2021, in conjunction with the management of the company[170]. - The company has established a remuneration committee responsible for reviewing and determining remuneration packages for directors and senior management, ensuring no director participates in discussions about their own remuneration[171]. - The nomination committee is responsible for making recommendations to the Board on the appointment of directors and planning for Board succession[171].

Financial Performance - The Group's revenue for the year was approximately HK$5,384.9 million, a decrease of 1.7% compared to HK$5,476.2 million in 2020 due to the impact of COVID-19[21]. - Profit attributable to equity holders was HK$721.5 million, representing a decrease of 3.0% from approximately HK$743.5 million in 2020, primarily due to a drop in sales revenue[21]. - The cost of sales was approximately HK$4,523.2 million, a decrease of 0.6% compared to HK$4,551.6 million in 2020, attributed to the decline in revenue[21]. - Total assets increased by 8.3% to HK$5,211.4 million as of March 31, 2021, up from HK$4,813.2 million in 2020, driven by increases in trade receivables and cash[25]. - The average effective tax rate was 12.3%, slightly higher than 11.8% in 2020, with an income tax expense of approximately HK$103.0 million for both years[24]. - Selling and distribution expenses rose to HK$86.3 million from HK$61.8 million in 2020, reflecting an increase in impairment loss on trade receivables[21]. - Finance costs increased by approximately 27.4% to HK$14.6 million, up from HK$11.4 million in 2020, mainly due to a rise in net exchange loss on cash and cash equivalents[22]. - Gross profit margin decreased to 16.0% from 16.9% in 2020, while return on equity fell to 21.9% from 25.6%[30]. - The Group's distributable reserves as of March 31, 2021, amounted to approximately HK$2,145 million, a decrease from HK$2,319 million in 2020[87]. - The Group incurred approximately HK$202 million in capital expenditure during the 2021 financial year, primarily to expand production capacity, compared to HK$153 million in 2020[87]. Operational Developments - The company is establishing a new textile mill in Nam Dinh Province, Vietnam, with a production capacity of 3 million pounds of fabrics per month[16]. - The new factory will implement high environmental protection standards with technical assistance from Toray[16]. - The Group is making progress in establishing a new textile factory in Vietnam, capable of producing 3 million pounds of fabric per month using efficient production technology[20]. - A new factory in Nam Dinh province, Vietnam, is expected to be completed in the second half of 2023 as part of the medium to long-term plan to expand production scale[46]. - The Group realized approximately HK$100 million from the disposal of two underutilized industrial premises in Hong Kong to enhance operational efficiency[46]. Market and Customer Insights - The demand for fabrics for lingerie and inner wear declined, while the demand for fabrics for sportswear increased due to changing customer preferences caused by COVID-19[14]. - Investment in research and development has expanded the customer base, partially offsetting profit margin declines[15]. - The Group is optimistic about the growth of the PRC domestic markets and is expanding its customer base, particularly in the leisure clothing and sportswear sectors[46]. - The number of new customers from both mainland China and overseas has been rising, particularly in the leisure clothing and sportswear sectors[46]. Risk Management - The Group identified key risks for the 2021 Financial Year, including business risk, strategic direction risk, and legal and compliance risk[75]. - The Group faced uncertainties due to slowing global economic growth and unstable foreign exchange and interest rates[66]. - Changes in governmental policies, such as environmental protection regulations, may lead to increased production costs[77]. - The ongoing tension in trade relations between China and the USA, along with the pandemic's impact in India, has led to increased material costs[46]. Corporate Governance - The Company has established an Audit Committee consisting of independent non-executive directors to enhance corporate governance practices[161]. - The Company maintained a public float of more than 25% of the issued shares as required under the Listing Rules[164]. - The Company complied with applicable code provisions and best practices in corporate governance throughout the 2021 Financial Year[172]. - The roles of Chairman and Chief Executive Officer were held by the same individual during the year, which did not comply with the CG Code provision A.2.1[173]. - The Board consists of four Executive Directors, one Non-executive Director, and three Independent Non-executive Directors, ensuring a balanced composition with diverse skills in textiles, management, and finance[185][186]. Employee and Community Engagement - The Group had 4,933 full-time employees as of March 31, 2021, down from 5,197 in 2020[45]. - The Group will continue to provide regular training and competitive remuneration packages to enhance employee motivation[45]. - The Group made charitable donations totaling approximately HK$1,697,000 in the review year, down from HK$2,090,000 in 2020[87]. Shareholder Information - The Board proposed a final dividend of HK22 cents per share for the 2021 Financial Year, compared to HK18 cents in 2020, with a total dividend of HK44 cents per share, unchanged from 2020[45]. - The Company declared an interim dividend of HK$0.22 per share for 2021, compared to HK$0.26 per share in 2020, and proposed a final dividend of HK$0.22 per share, up from HK$0.18 per share in 2020[85]. - Sales to the Group's five largest customers accounted for approximately 70.7% of total sales, with the largest customer contributing about 39.3%[96]. - Purchases from the Group's five largest suppliers represented approximately 47.5% of total purchases, with the largest supplier accounting for about 27.4%[96]. Strategic Outlook - Despite challenges, the management team adopted measures to ensure stable profit and business operations[14]. - The company remains optimistic about long-term development and believes the impact of COVID-19 will subside in the near future[15]. - The management team is focused on innovation to meet changing customer needs[15]. - The Group's management team is focused on overseeing production and operations while formulating business strategies to adapt to the changing global economic landscape[46].

Financial Performance - The revenue of Pacific Textiles Holdings Limited for the period was approximately HK$2,452.7 million, representing a decrease of 18.9% compared to HK$3,025.5 million in the same period last year[7]. - Profit attributable to equity holders was HK$375.6 million, reflecting a decrease of 8.8% from HK$412.0 million in the prior year[7]. - The Group's sales value dropped by 19% during the review period, with a 38% decrease in share of profit from associated companies and an increase in bad debt by approximately HK$8 million compared to the same period last year[23]. - Revenue for the six months ended September 30, 2020, was HK$2,452,658, a decrease of 18.9% compared to HK$3,025,462 for the same period in 2019[30]. - Gross profit for the period was HK$429,977, down 20.5% from HK$540,260 in the previous year[30]. - Operating profit decreased to HK$424,297, a decline of 4.6% from HK$444,630 in the prior year[30]. - Total comprehensive income for the period was HK$494,576, an increase of 65.7% compared to HK$298,482 in the previous year[31]. Expenses and Costs - The cost of sales decreased to approximately HK$2,022.7 million, down 18.6% from HK$2,485.2 million in the previous year[7]. - Selling and distribution expenses increased to HK$37.5 million, up from HK$32.4 million in the previous year[7]. - Administration expenses slightly increased to HK$92.3 million, compared to HK$91.9 million in the prior year[7]. - Finance costs surged by approximately 144.8% to HK$14.9 million, primarily due to increased interest expenses on bank loans[7]. Assets and Liabilities - Total assets as of 30 September 2020 were HK$5,174.5 million, an increase of 7.5% from HK$4,813.2 million as of 31 March 2020[9]. - Non-current assets amounted to HK$1,979.1 million, while current assets were HK$3,195.4 million, reflecting increases in trade receivables and cash balances[9]. - Total liabilities included current liabilities of HK$1,719.0 million and non-current liabilities of HK$237.8 million[16]. - The Group's liquidity position improved with a net cash level of HK$137.7 million as of September 30, 2020, compared to HK$66.5 million as of March 31, 2020[16]. Taxation - The Group recorded an income tax expense of approximately HK$40.0 million, down from HK$56.3 million in the previous year, with an effective tax rate of 9.4%[8]. - The Group's subsidiary in Vietnam benefited from a tax holiday, contributing to the lower effective tax rate[8]. Employee and Workforce - The Group had 4,839 full-time employees as of 30 September 2020, a decrease from 5,197 employees as of 31 March 2020[20]. - The management has streamlined production processes and reduced workforce to improve ongoing profitability amid an unstable operating environment[27]. Cash Flow and Investments - Cash generated from operations for the six months ended September 30, 2020, was HK$354,784,000, compared to HK$528,145,000 in the previous year, reflecting a decrease of approximately 32.8%[35]. - The company reported a net cash inflow from investing activities of HK$155,360,000, a significant improvement compared to a net outflow of HK$102,619,000 in the prior year[35]. - Total cash and bank balances reached HK$996.7 million, up from HK$928.8 million as of March 31, 2020[16]. Shareholder Information - The interim dividend declared was HK$22 cents per share, down from HK$26 cents per share in 2019, resulting in a total dividend payout of HK$310,466,000 compared to HK$375,525,000 in the previous year, a reduction of 17.3%[72]. - The company repurchased shares amounting to HK$7,739,000 during the period, compared to HK$10,196,000 in the previous year[35]. - The issued share capital of the company was reduced by the nominal value of the repurchased shares, with the premiums charged against the share premium account[88]. Market and Operational Outlook - The Group plans to expand its customer base, particularly in the sportswear sector, to mitigate potential declines in orders due to the pandemic[24]. - The Group is cautiously optimistic about the demand for functional textiles for sportswear, gym, and yoga outfits in the second half of the financial year[25]. - The number of sales orders at the end of the review period has caught up with the same period last year, showing a notable rebound[25]. Corporate Governance - The company complied with applicable corporate governance code provisions during the review period, although the roles of chairman and CEO were held by the same individual[130][131]. - Directors confirmed compliance with the Model Code regarding securities transactions throughout the review period[132].

Financial Performance - The Group reported consolidated financial results for the 2020 Financial Year, with a focus on strategic overview and business outlook[6]. - The Group's revenue for the year was approximately HK$5,476.2 million, a decrease of 10.5% compared to HK$6,119.1 million in 2019, primarily due to a temporary 3-week factory closure caused by COVID-19[9]. - Profit attributable to equity holders was HK$743.5 million, representing a decrease of 13.7% from HK$861.8 million in 2019 due to reduced sales revenue[9]. - The Group's Gross Profit Margin was 16.9% in 2020, down from 17.3% in 2019[18]. - Return on Equity decreased to 25.6% in 2020 from 26.6% in 2019[18]. - Total comprehensive income for the year was HK$605,612, a decrease of 7.9% from HK$657,525 in 2019[122]. - The company reported a profit for the year of HK$743,489, down from HK$861,780, indicating a decline of approximately 14%[126]. Cost and Expenses - The cost of sales decreased to approximately HK$4,551.6 million, down 10.0% from HK$5,058.2 million in 2019, aligning with the revenue decline[9]. - Selling and distribution expenses decreased to HK$64.0 million from HK$65.9 million in 2019, while administration expenses slightly decreased to HK$189.9 million from HK$192.0 million[9]. - Finance costs decreased by approximately 19.7% to HK$11.4 million from HK$14.2 million in 2019, mainly due to a reduction in exchange loss on cash and cash equivalents[10]. Assets and Liabilities - Total assets increased by 6.2% to HK$4,813.2 million from HK$4,530.2 million in 2019, driven by increases in inventory, accounts receivables, and cash[13]. - The Group's net cash position decreased to HK$66.5 million in 2020 from HK$274.7 million in 2019[19]. - Total liabilities increased to HK$1,816,118, up 44% from HK$1,260,598 in 2019[124]. - Current liabilities rose significantly to HK$1,613,402, compared to HK$1,051,550 in the previous year, marking a 53% increase[124]. Dividends - The Board proposed a final dividend of HK18 cents per share for the 2020 Financial Year, down from HK25 cents in 2019, resulting in a total dividend of HK44 cents per share for 2020, compared to HK57 cents in 2019[22]. - An interim dividend of HK26 cents was paid in December 2019, down from HK32 cents in 2018, and a final dividend of HK18 cents is recommended, down from HK25 cents in 2019[37]. Strategic Outlook - The company aims to enhance its market position through new product development and technological advancements[6]. - Future outlook includes expansion into new markets and potential mergers and acquisitions to drive growth[6]. - The Group plans to establish a new factory in Vietnam to expand production capacity and diversify production sites[8]. - The Group aims to increase market share in fabrics for sportswear and explore new business opportunities while maintaining disciplined budgetary control[8]. Risk Management - The Group's financial performance is impacted by macroeconomic factors, including potential trade barriers and the economic effects of COVID-19, leading to uncertainties in business operations[35]. - The Group identified risks related to strategic direction, including the success of future business depending on achieving strategic objectives such as acquisitions and joint ventures[35]. - Legal risks may arise from unenforceable contracts or lawsuits, potentially disrupting business operations and financial conditions[35]. Corporate Governance - The Group is committed to high standards of corporate governance to enhance transparency and accountability, safeguarding the interests of shareholders[77]. - The Company complied with applicable code provisions and best practices in corporate governance throughout the 2020 Financial Year[78]. - The roles of Chairman and Chief Executive Officer are held by Mr. Wan Wai Loi, which does not comply with code provision A.2.1 of the CG Code[78]. Shareholder Information - The Company maintains a website for public access to business developments, financial information, and corporate governance practices[102]. - Shareholders holding at least one-tenth of the paid-up capital can requisition an extraordinary general meeting to propose agenda items[103]. - Notice for annual general meetings must be sent at least 20 clear business days prior to the meeting[103]. Employee Information - As of March 31, 2020, the Group had 5,197 full-time employees, a decrease from 5,688 in 2019[22]. - The Group's remuneration package includes salary, bonuses, allowances, and retirement benefits, with no significant changes in policy[22]. Environmental and Social Responsibility - The Group continued to invest in environmental protection and received recognition, including the "Top 10 Energy-Saving Enterprises 2019" award[21]. - During the 2020 Financial Year, the Group made charitable donations totaling approximately HK$2,090,000, compared to HK$556,000 in 2019[39]. Financial Reporting and Compliance - The Group's consolidated financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards (HKFRS) issued by the HKICPA[131]. - The audit committee oversees the Group's financial reporting process, ensuring compliance with relevant standards[116]. - The auditor's objective is to obtain reasonable assurance that the consolidated financial statements are free from material misstatement, whether due to fraud or error[116].