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].

Financial Performance - The revenue for the period was approximately HK$3,025.5 million, representing a decrease of 11.1% compared to HK$3,402.7 million in the same period last year[5]. - Profit attributable to equity holders was HK$412.0 million, down 17.9% from approximately HK$501.6 million in the prior year[5]. - Gross profit for the period was HK$540,260, down 14.3% from HK$630,871 in the previous year[28]. - Operating profit decreased to HK$444,630, representing a decline of 21.1% from HK$563,542 in the prior year[28]. - The net profit margin for the period was 13.6%, down from 14.7% in the previous year[69]. - Profit attributable to equity holders for the six months ended September 30, 2019, was HK$412,009,000, a decrease of 17.8% from HK$501,568,000 in the same period of 2018[89]. Expenses and Costs - The cost of sales was approximately HK$2,485.2 million, a decrease of 10.3% from HK$2,771.9 million in the previous year[5]. - Selling and distribution expenses decreased to HK$32.5 million from HK$35.7 million in the previous year[5]. - Administration expenses slightly decreased to HK$91.9 million from HK$95.8 million in the prior year[5]. - Finance costs increased by approximately 79.4% to HK$6.1 million, primarily due to increased interest expenses and exchange losses on bank loans[5]. - Total cost of sales, distribution, and selling expenses, along with general and administrative expenses, amounted to HK$2,609,552, down from HK$2,903,333 in 2018, reflecting a decrease of about 10%[76]. Assets and Liabilities - As of September 30, 2019, total assets increased by 10.7% to HK$5,015.8 million from HK$4,530.2 million as of March 31, 2019, with current assets at HK$3,081.2 million and non-current assets at HK$1,934.6 million[8]. - Total liabilities increased to HK$1,818,667, up 44.2% from HK$1,260,598 as of March 31, 2019[31]. - The Group had bank loans of HK$502.4 million as of September 30, 2019, an increase from HK$300 million on March 31, 2019[13]. - The balance of borrowings included in current liabilities increased to HK$502,427,000 as of September 30, 2019, compared to HK$300,000,000 as of March 31, 2019, marking a 67% increase[119]. Cash Flow and Liquidity - The Group's liquidity position improved, with net cash increasing to HK$336.4 million as of September 30, 2019, compared to HK$274.7 million on March 31, 2019[13]. - Total cash and bank balances reached HK$984.9 million, up from HK$720.9 million, including HK$665.5 million in US dollars and HK$120.9 million in RMB[13]. - Cash generated from operations for the six months ended September 30, 2019, was HK$528,145,000, compared to HK$678,721,000 in the previous year, reflecting a decline of approximately 22.1%[33]. - Net cash inflow from operating activities was HK$529,157,000 for the six months ended September 30, 2019, down from HK$644,685,000 in 2018[33]. Shareholder Information - The interim dividend declared was HK$26 cents per share, compared to HK$32 cents per share in 2018, totaling HK$375,525,000, a decrease of 18.8% from HK$462,855,000[90]. - The company paid dividends totaling HK$361,606,000 during the six months ended September 30, 2019, compared to HK$267,588,000 in the same period of 2018[33]. - Basic earnings per share for the six months ended September 30, 2019, was HK$0.28, down from HK$0.35 in the previous year, reflecting a decline of 20%[89]. Employee and Operational Metrics - The Group employed 5,295 full-time employees as of September 30, 2019, a decrease from 5,688 as of March 31, 2019[19]. - The Group's salaries, bonuses, and allowances for the six months ended September 30, 2019, totaled HK$38,689,000, compared to HK$33,868,000 in the same period of 2018[142]. Market and Sales Performance - Sales of cold resistant fabrics declined by more than 20%, primarily due to customers reducing production volumes of thermal innerwear to manage overstocked inventory[21]. - Sales of fabrics for sportswear grew by more than 30% compared to the corresponding period last year, contributing approximately 11% to total sales, up from 8% in the previous year[21]. - Revenue from the PRC decreased to HK$645,557 from HK$730,565, a decline of about 12% year-over-year[73]. Corporate Governance and Compliance - The company complied with the corporate governance standards as per the CG Code throughout the reporting period[154]. - All current Directors confirmed compliance with the Model Code regarding securities transactions throughout the reporting period[156]. Awards and Recognition - The Company received multiple awards for innovative products, including a lightweight underwear fabric awarded the 2019 First Class Award by CDPA in April 2019[16]. - The Group has been recognized for its environmental efforts, receiving the "EcoChallenger" award in May 2019[15].

Financial Performance - The company recorded moderate growth in financial performance due to an improved product mix resulting from a change in business strategy[26]. - The Group's revenue for the year was approximately HK$6,119.1 million, representing an increase of 0.3% compared to HK$6,098.2 million in 2018[33]. - Profit attributable to equity holders increased by 15.8% to HK$861.8 million, up from approximately HK$744.0 million in 2018[33]. - The Group recorded moderate growth in gross profit, attributed to an improved product mix and the resumption of operations at the Vietnam factory, despite a slight decrease in sales volume due to lower demand for synthetic fabrics[52]. - Gross profit for the year was HK$1,060,901,000, representing a 12% increase from HK$947,162,000 in the previous year[128]. - Operating profit for the year was HK$983,542,000, an increase from HK$826,865,000 in 2018, indicating a growth of 18.9%[128]. - Total comprehensive income for the year was HK$657,525,000, down 32.6% from HK$975,947,000 in 2018 due to currency translation differences[129]. Production and Capacity - Production capacity at the Vietnam factory has been fully restored after overcoming unforeseen business interruptions[26]. - The company is seeking a new production site in Vietnam to support medium to long-term business growth[30]. - Medium to long-term organic growth will be targeted by expanding production lines within three to five years[30]. - The Group's production bases are located in the People's Republic of China and Vietnam, indicating a strategic focus on these markets for textile manufacturing[136]. Cost Management - Cost-saving and efficiency improvements will be pursued through disciplined budgetary control[30]. - Rising costs in labor, materials, and environmental protection are increasing production costs, prompting the Group to monitor expenses and implement cost-cutting measures[53]. - The cost of sales decreased by 1.8% to approximately HK$5,058.2 million, compared to HK$5,151.0 million in 2018[33]. Financial Position - Total assets as of March 31, 2019, were HK$4,530.2 million, a decrease of 6.6% from HK$4,852.7 million in 2018[37]. - The Group's total assets decreased by 6.6% to HK$4,530.2 million, with non-current assets at HK$2,001.3 million and current assets at HK$2,528.9 million[44]. - The current ratio improved to 2.4 from 2.1 in 2018, while the quick ratio rose to 1.5 from 1.3[45]. - The gearing ratio decreased to 14.3% from 14.4%, and the debt to equity ratio improved to 38.6% from 45.3%[45]. Cash Flow and Liquidity - As of March 31, 2019, the Group's net cash position was HK$274.7 million, an increase from HK$207.3 million in 2018[44]. - Total cash and bank balances amounted to HK$720.9 million, up from HK$666.7 million in 2018, with significant portions in USD (HK$391.3 million) and RMB (HK$225.9 million)[44]. - Cash generated from operations for the year ended March 31, 2019, was HK$1,221,162, an increase from HK$742,123 in 2018, representing a growth of 64.5%[135]. - The net cash flow from operating activities after interest and tax payments was HK$1,082,903, compared to HK$564,785 in the previous year, indicating a significant improvement[135]. Dividends - The Board proposed a final dividend of HK25 cents per share for the 2019 Financial Year, increasing from HK18.5 cents in 2018, resulting in a total dividend of HK57 cents per share for 2019, up from HK45 cents in 2018[52]. - An interim dividend of HK32 cents per share was paid on December 21, 2018, compared to HK26.5 cents in 2018, reflecting an increase of approximately 20.8%[60]. Corporate Governance - The Company is committed to high standards of corporate governance to enhance transparency and accountability[86]. - The Board is responsible for formulating strategic, management, and financial objectives to protect shareholders' interests[85]. - The Company maintained a public float of more than 25% of issued shares as required under the Listing Rules[81]. - The dual role of Chairman and CEO was held by Mr. Wan Wai Loi, which did not comply with the CG Code provision A.2.1, but provided strong leadership[84]. Risk Management - The Group identified key risks for the 2019 Financial Year, including business risk, strategic direction risk, and legal and compliance risk[59]. - The Group's financial condition may be impacted by fluctuating inflation and unstable foreign exchange rates[59]. - The Group's operations are geographically diversified, as detailed in the consolidated financial statements[59]. - The Group is exposed to various financial risks, including market risk, credit risk, and liquidity risk, with a focus on minimizing adverse effects on financial performance[187]. Leadership and Management - Mr. Masaru Okutomi will join the company as an executive director and vice chairman in July 2019, bringing valuable experience and insights[30]. - The Group has a strong leadership team with diverse expertise in textiles, finance, and corporate governance[54][55]. - The management team is focused on formulating business strategies and overseeing production and operations[54]. Awards and Recognition - The Company received multiple awards for innovative products, including a First Class Award for a quick-drying breathable yoga fabric in April 2018[47]. - The Group was recognized as one of the Top 10 Best Energy Saving Technologies by the National Development and Reform Commission[47]. - The Group's product development efforts were acknowledged with a Product Development Contribution Award from the China National Textile & Apparel Council in December 2018[47]. Accounting and Financial Reporting - The Group's financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards, ensuring compliance and transparency[136]. - The Group has adopted new accounting standards including HKFRS 9 and HKFRS 15, which are expected to enhance the accuracy of financial reporting[137]. - The Group applies the HKFRS 9 simplified approach to measure expected credit losses for trade and bills receivables, using a lifetime expected loss allowance[190]. Shareholder Engagement - The Company ensures that all Directors are aware of their voting rights and obligations regarding conflicts of interest at the start of each Board meeting[96]. - The Company allows Shareholders to appoint multiple proxies to attend and vote at general meetings, promoting shareholder engagement[108]. - The Company maintains a policy of timely disclosure regarding any appointment, resignation, or removal of Directors[94].