Financial Performance - The Group recorded revenue of approximately RMB90.5 million for the year ended 31 December 2022, representing a decrease of approximately 41.8% compared to RMB155.5 million for the year ended 31 December 2021[14]. - Loss attributable to owners of the Company increased from approximately RMB100.5 million in 2021 to approximately RMB140.5 million in 2022, representing an increase of approximately 39.8%[14]. - The Group's revenue decreased by 41.8% to approximately RMB90.5 million in 2022 compared to the previous year[22]. - Loss attributable to owners of the Company increased by 39.8% to approximately RMB140.5 million in 2022[22]. - The Group's revenue decreased from approximately RMB 155.5 million in 2021 to approximately RMB 90.5 million in 2022, representing a decline of about 41.8%[65]. - The export sales of footwear and apparel dropped from approximately RMB 125.6 million in 2021 to approximately RMB 66.8 million in 2022, a decrease of approximately 46.8%[51]. - The Group's cost of sales decreased by 45.3% from approximately RMB 151.9 million in 2021 to approximately RMB 83.1 million in 2022, aligning with the reduced turnover[53]. - Gross profit for 2022 was approximately RMB 7.4 million, with a gross profit margin of approximately 8.2%, compared to a gross profit of approximately RMB 3.6 million and a margin of 2.3% in 2021[53]. Sales and Revenue Breakdown - Revenue from sales of shoes, clothes, and others contributed approximately RMB66.8 million in 2022, down from RMB125.6 million in 2021[14]. - Revenue from fabric sales was approximately RMB23.7 million in 2022, compared to RMB29.9 million in 2021[14]. - Local sales of clothing products generated revenue of approximately RMB35.4 million during the year[35]. - The total revenue breakdown for 2022 showed that shoes, clothes, and others accounted for 73.8% of total revenue, while fabrics accounted for 26.2%[66]. Cost and Profit Margins - The gross profit margin improved to approximately 8.2% in 2022, up from approximately 2.3% in the previous year[14]. - The profit margin for local sales of clothing products was approximately 11.3%, while the profit margin for export sales was approximately 9.7%[25]. - The average selling price of fabric products decreased from approximately RMB5.4 per meter in 2021 to RMB5.2 per meter in 2022, a decrease of approximately 3.7%[34]. - The average cost of fabrics decreased from approximately RMB5.3 per meter in 2021 to approximately RMB5.0 per meter in 2022[24]. - The gross profit margin for shoes, clothes, and others improved to approximately 10.5% in 2022 from 2.2% in 2021[70]. Operational Developments - The Group established a subsidiary in Shishi City, Fujian province, PRC, to manufacture and sell clothing products to local customers starting in the second half of 2022[6]. - Management plans to boost local sales of clothing products in the PRC in 2023 to generate higher profit margins[6]. - The Group incorporated a new subsidiary in Shishi, Fujian, to manufacture and sell various clothing products starting in the second half of 2022[25]. - The company focused on recruiting more staff for a new clothing production line in Fujian, emphasizing competitive remuneration and training[193]. Financial Position and Cash Flow - The financial position of the Group is expected to improve by discharging all bond liabilities and accrued bond interests for the financial year ending 31 December 2023[12]. - Management will closely monitor the Group's financial performance, financial position, and cash flow to maintain normal operations[12]. - For the year ended December 31, 2022, net cash used in operating activities amounted to RMB 12.5 million, compared to RMB 0.3 million in 2021[81]. - Net cash generated from financing activities was approximately RMB 12.2 million in 2022, a significant increase from net cash used of approximately RMB 1.0 million in 2021, primarily due to reduced repayment of borrowings[81]. Share Capital and Corporate Governance - The Company completed a share consolidation, two subscriptions of new shares, and a placing of new shares during the year[104]. - The net proceeds from the 2022 First Share Subscription of approximately HK$2.42 million were intended for debt restructuring costs and general working capital[110]. - The company announced a share consolidation on January 13, 2022, consolidating every ten existing shares into one consolidated share, effective March 8, 2022[137]. - The 2022 First Share Subscription raised approximately HK$2.42 million, intended for debt restructuring costs and general working capital[141]. - The 2022 Second Share Subscription raised approximately HK$4.59 million, with net proceeds used for debt restructuring and general working capital[115][143]. - The 2022 Placing raised capital by issuing 15,055,354 shares at a price of HK$0.52 per share, enhancing the company's financial position[120][122]. - The company has adopted the Corporate Governance Code as its own code of corporate governance, ensuring compliance throughout the reporting period[170]. - The board of directors consists of two executive directors and three independent non-executive directors, maintaining at least one independent director with appropriate professional qualifications[181]. - The Company has adopted the corporate governance principles as set out in the CG Code and has complied with applicable code provisions throughout the year, except for code provision A.1.8[198]. Employee and Workforce Information - The company had a total workforce of 167 as of December 31, 2022, with total staff costs of approximately RMB10.7 million for the year[132]. - The total employee cost for the year ended December 31, 2022, was approximately RMB10.7 million, up from RMB4.9 million in 2021, reflecting an increase in workforce from 83 to 167 employees[165]. - The company is committed to providing competitive compensation plans and fostering a culture of learning and sharing among its employees[166]. Risk Management - The company has a low foreign exchange risk as most transactions are conducted in Renminbi, with limited exposure to USD transactions[187].

Financial Performance - The Group's revenue decreased by 79.1% to approximately RMB30.4 million for the six months ended June 30, 2022, compared to approximately RMB145.7 million for the same period in 2021[9]. - Loss attributable to the owners of the Company increased from approximately RMB40.3 million for the six months ended June 30, 2021, to approximately RMB50.3 million for the six months ended June 30, 2022[10]. - Revenue from fabric products decreased from approximately RMB15.9 million to RMB13.1 million, with sales quantities dropping to approximately 2.56 million meters from 2.7 million meters[13]. - Revenue from sales of shoes and clothing decreased significantly from approximately RMB129.8 million to approximately RMB17.4 million due to reduced demand from Korean customers[13]. - The overall decrease in revenue was mainly attributed to decreased sales demand from customers in Korea, affected by the new wave of the COVID-19 pandemic[9]. - The loss per share decreased from RMB1.03 to RMB0.91 for the respective periods[10]. - The Group's financial performance reflects the ongoing challenges posed by the pandemic, particularly in the Korean market[9]. - Future outlook remains cautious as the Company navigates through the ongoing effects of the pandemic on consumer demand and market conditions[9]. - The Group's total revenue for the six months ended 30 June 2022 was approximately RMB30.4 million, a decrease from RMB145.7 million for the same period in 2021[16]. - Gross profit for the same period was RMB 2,315,000, down from RMB 6,959,000 in 2021, indicating a gross margin drop[92]. - Loss from operations increased to RMB 14,571,000 compared to a loss of RMB 3,025,000 in the previous year, reflecting a worsening operational performance[92]. - Loss before tax for the period was RMB 49,658,000, compared to RMB 40,260,000 in 2021, showing an increase in pre-tax losses[92]. - The total comprehensive loss attributable to the owners of the Company for the period was RMB 50,279,000, up from RMB 40,260,000 in the prior year[92]. Cost and Expenses - Cost of sales decreased by 79.7% from approximately RMB138.7 million in the first half of 2021 to approximately RMB28.1 million in the first half of 2022[17]. - Selling and distribution expenses decreased by 25.9% from approximately RMB1.0 million in the first half of 2021 to approximately RMB0.8 million in the first half of 2022[27]. - General and administrative expenses decreased by 1.4% from approximately RMB15.0 million in the first half of 2021 to approximately RMB14.8 million in the first half of 2022[29]. - Finance costs decreased from approximately RMB37.2 million in the first half of 2021 to approximately RMB35.1 million in the first half of 2022[29]. - Other income changed from approximately RMB6.0 million in the first half of 2021 to an expense of approximately RMB1.3 million in the first half of 2022, mainly due to exchange losses[23]. Assets and Liabilities - As of 30 June 2022, the Group's bank and cash balances amounted to approximately RMB0.7 million, down from approximately RMB2.2 million as of 31 December 2021[31]. - The Group's borrowings increased to approximately RMB1,025.5 million as of 30 June 2022, up from RMB970.9 million as of 31 December 2021[32]. - Non-current assets as of June 30, 2022, were valued at RMB 195,739,000, a decrease from RMB 206,213,000 at the end of 2021[94]. - Current liabilities totaled RMB 1,128,309,000, compared to RMB 1,093,130,000 at the end of 2021, indicating an increase in short-term obligations[94]. - The Group's net current liabilities were RMB (1,101,742,000), slightly worsening from RMB (1,071,621,000) at the end of 2021[94]. - Total assets less current liabilities stood at RMB (906,003,000), compared to RMB (865,414,000) at the end of 2021, reflecting a decline in overall asset position[94]. - As of June 30, 2022, non-current liabilities increased to RMB 190,020, up from RMB 182,383 as of December 31, 2021, representing a growth of approximately 4.5%[96]. - The total deficit as of June 30, 2022, was RMB (1,096,023), compared to RMB (1,047,797) at the end of 2021, indicating an increase in deficit of about 4.6%[96]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2022, was RMB (3,560), a decline from RMB 1,082 in the same period of 2021[100]. - Cash and cash equivalents at the end of the period were RMB 692, a decrease from RMB 1,027 at the end of June 30, 2021, representing a decline of approximately 32.6%[100]. - The company reported a net cash used in financing activities of RMB 2,015 for the six months ended June 30, 2022, compared to RMB (3,211) in the same period of 2021, indicating improved cash flow management[100]. Corporate Governance and Compliance - The Board has resolved not to declare any dividend for the six months ended June 30, 2022 (2021: Nil)[49]. - The company has complied with the Corporate Governance Code, except for code provision A.1.8 regarding insurance cover for directors against legal actions[72][73]. - The company is committed to enhancing its corporate governance practices to meet the requirements of the Corporate Governance Code[74]. - The company has not reported any related party transactions or connected transactions during the reporting period[68]. Strategic Initiatives - The Company is exploring new strategies to mitigate the impact of market fluctuations and enhance revenue streams moving forward[9]. - The management is actively exploring opportunities to engage in different businesses through acquisitions in Hong Kong and the PRC to improve the Group's financial position and cash flow[52]. - The Directors plan to expand the sales scale of the Group's shoes and clothing business and restructure the loss-making fabrics business through reinvestment or divestment[53]. - The Scheme to address the Company's existing indebtedness has been sanctioned by the Hong Kong Court, with conditions precedent being satisfied[60]. - The company completed the subscription of 12,546,128 shares at a price of HK$0.375 per share, resulting in net proceeds of approximately HK$4.59 million for general working capital and debt restructuring[65]. Market Conditions - The textile industry in China saw a 5.7% year-on-year increase in revenue, totaling RMB2.52 trillion in the first half of 2022, despite a 17% decline in total profits for textile companies[13]. - The Group's revenue from external customers in the PRC was RMB 13,074,000 for the six months ended June 30, 2022, down from RMB 15,850,000 in 2021, representing a decline of 17.7%[119]. - The Group's revenue from Korea was RMB 15,356,000 for the six months ended June 30, 2022, significantly down from RMB 119,434,000 in 2021, indicating a decline of 87.2%[119].

Debt Management - The company reported a total debt of approximately RMB 636.41 million, with interest rates ranging from 1.5% to 40%[9] - The company is currently negotiating with banks to extend the repayment terms of approximately RMB 100 million and RMB 90 million of short-term bank loans due in January and April 2022, respectively[11] - The company has overdue bank loans totaling approximately RMB 63.3 million, down from RMB 69.2 million in 2020[11] - The overdue bank loans and penalties as of December 31, 2021, totaled RMB 69,499,000, with principal owed to Infineon at RMB 45,729,000 and to Fengtai Hubei at RMB 17,534,000, plus penalties of RMB 6,236,000[12] - The company is committed to continuing discussions with banks to extend the repayment deadlines for existing loans[11] Cash Flow and Liquidity - The company has taken measures to alleviate cash flow pressure and improve liquidity, assuming successful implementation of these measures[5] - The company aims to generate operational cash flow and secure additional financing to meet business and funding needs[5] - The company believes it will have sufficient cash resources to meet operational funding and financing needs over the next 12 months[5] - Infineon's net current liabilities were approximately RMB 162.4 million, and total liabilities were about RMB 110.4 million as of December 31, 2021, indicating insufficient funds to repay overdue loans[14] Debt Restructuring - The company plans to issue shares to creditors as part of its debt restructuring plan, which was approved on June 8, 2022[9] - The company raised approximately HKD 7.80 million and HKD 2.42 million through equity fundraising activities in July and April-May 2022, respectively, for general working capital and debt restructuring[15] Acquisition Plans - The company is in the process of acquiring 51% equity in a target company, with the deadline extended to June 30, 2022, to finalize the acquisition[16] - The acquisition is expected to expand the company's production and sales of elastic bands for bras and underwear, enhancing future product offerings and cash flow[18] - The company is negotiating to further extend the acquisition deadline and is preparing a circular for shareholders regarding the acquisition details[18] Audit and Going Concern - The audit committee supports the board's view on the company's ability to continue as a going concern, contingent on the successful execution of the action plan[6] - The auditor indicated that if all action plans are implemented, the audit qualification related to going concern may be removed[20] - If the company fails to implement its plans, it may need to adjust asset values and classify non-current assets and liabilities as current, which could impact its financial statements[19] Communication with Stakeholders - The company will provide updates to shareholders and investors regarding any significant developments at an appropriate time[23] - The company has faced delays in implementing its action plan due to the COVID-19 pandemic and related government restrictions[8]

Financial Performance - The Group recorded revenue of approximately RMB155.5 million for the year ended 31 December 2021, representing a decrease of approximately 24.7% compared to RMB206.7 million in 2020[6]. - Loss attributable to owners of the Company decreased from approximately RMB219.0 million in 2020 to approximately RMB100.5 million in 2021, representing a decrease of approximately 54.1%[6]. - The Group's revenue decreased by 24.7% to approximately RMB155.5 million in 2021 compared to the previous year[20]. - Loss attributable to owners of the Company decreased by 54.1% to approximately RMB100.5 million in 2021[20]. - The Group incurred a loss of approximately RMB100,528,000 for the year ended 31 December 2021[183]. - As of 31 December 2021, the Group had net current liabilities of approximately RMB1,071,627,000 and net liabilities of approximately RMB1,047,797,000[183]. - The Group's bank borrowings amounted to approximately RMB163,312,000 and bonds of approximately RMB638,180,000, which are subject to renewal or repayment within the next twelve months[183]. - There is a material uncertainty regarding the Group's ability to continue as a going concern, dependent on successful negotiations with creditors[183]. - The consolidated financial statements have been prepared on a going concern basis, contingent on the Group's ability to meet its liabilities as they fall due[183]. Revenue Breakdown - Sales of shoes, clothes, and others contributed approximately RMB125.6 million in revenue for 2021, down from RMB191.4 million in 2020[6]. - Sales of fabrics contributed approximately RMB29.9 million in revenue for 2021, an increase from RMB15.2 million in 2020[6]. - The total revenue from shoes, clothes, and others was RMB125.6 million, accounting for 80.8% of total revenue in 2021[33]. - Sales of shoes and clothes decreased by approximately 34.4% from RMB191.4 million in 2020 to RMB125.6 million in 2021[30]. - The sales of fabric products increased from approximately RMB15.2 million in 2020 to approximately RMB29.9 million in 2021, representing a 96.4% increase[30]. Cost and Profitability - The gross profit margin for the Group's products improved to approximately 2.3% in 2021, compared to a gross loss margin of approximately 6.0% in the previous year[6]. - The Group's cost of sales decreased by 30.6% from approximately RMB219.0 million in 2020 to approximately RMB151.9 million in 2021[34]. - The gross profit for 2021 was approximately RMB3.6 million, with a gross profit margin of 2.3%, compared to a gross loss of approximately RMB12.3 million and a gross loss margin of 6.0% in 2020[39]. - Other income decreased by 48.4% from approximately RMB40.8 million in 2020 to approximately RMB21.1 million in 2021, primarily due to a decline in net foreign exchange gains[44]. - Selling and distribution expenses decreased by 58.9% from approximately RMB7.4 million in 2020 to approximately RMB3.0 million in 2021[44]. - General and administrative expenses decreased by 66.6% from approximately RMB101.3 million in 2020 to approximately RMB33.8 million in 2021[44]. - Finance costs decreased by 46.2% from approximately RMB127.0 million in 2020 to approximately RMB68.3 million in 2021[44]. Market and Business Outlook - The Group's fabrics business showed signs of recovery in 2021, following the recovery of domestic demand for textile products in China[7]. - The economy of Korea, a major overseas market for the Group, is projected to grow approximately 4% in 2021, aiding the recovery of local consumption markets[7]. - Management plans to closely monitor sales markets and adjust sales strategies as necessary to maintain normal operations[7]. - The Group is focused on maintaining financial performance, financial position, and cash flow to ensure ongoing operations[7]. Corporate Governance - The Company has adopted the Corporate Governance Code as its own code of corporate governance, ensuring compliance throughout the year ended December 31, 2021[74]. - The Board comprises three executive Directors and three independent non-executive Directors, maintaining compliance with the Listing Rules regarding independent Directors[75]. - The Company emphasizes continuous professional development for Directors to keep their knowledge and skills updated[109]. - The Board is responsible for leadership and control of the Company, overseeing strategic decisions and performance, while delegating day-to-day management to executive Directors and senior management[86]. - The Company established a Regulatory Compliance Committee to ensure adherence to relevant regulations[123]. - The Nomination Committee consists of three independent non-executive Directors, focusing on board structure and director appointments[124]. - The Company will continue to review and enhance its corporate governance practices to meet the requirements of the Corporate Governance Code[77]. Internal Control and Audit - The Company appointed Elite Partners Risk Advisory Services Limited as the Internal Control Adviser to enhance internal controls and ensure timely escalation of significant financial issues[173]. - The Group's internal control system is designed to ensure reliability of financial reporting and compliance with applicable laws and regulations[195]. - The Audit Committee reviews the independent auditor's independence and effectiveness of the audit process annually[198]. - The Board is responsible for maintaining an adequate internal control system to safeguard shareholder investments and Company assets[195]. Employee and Workforce - The Group's workforce increased to 83 employees as of December 31, 2021, compared to 55 employees in the previous year[69]. - The Company is committed to staff training and development, emphasizing a learning and sharing culture within the organization[69].

Revenue Performance - The Group's revenue decreased by 22.3% to approximately RMB145.7 million for the six months ended June 30, 2021, compared to approximately RMB187.5 million for the same period in 2020[15]. - Revenue from sales of shoes and clothing decreased from approximately RMB176.1 million to approximately RMB129.8 million due to reduced demand from customers in Korea and Japan[22]. - Revenue from fabric products increased from approximately RMB11.4 million to RMB15.9 million, driven by an increase in average selling price to approximately RMB6.2 per meter[21]. - The overall decrease in revenue was mainly attributed to a decrease in sales demand from customers in Korea and Japan due to the new wave of COVID-19 pandemic[15]. - The Group's revenue for the six months ended 30 June 2021 was approximately RMB145.7 million, a decrease of 22.3% from RMB187.5 million for the same period in 2020[26]. Profit and Loss - Loss attributable to the owners of the Company decreased from approximately RMB74.4 million for the six months ended June 30, 2020, to approximately RMB40.3 million for the six months ended June 30, 2021[16]. - Loss per share decreased from RMB0.31 for the six months ended June 30, 2020, to RMB0.10 for the six months ended June 30, 2021[16]. - Gross profit increased to approximately RMB6.96 million for the six months ended 30 June 2021, with a gross profit margin of 4.8%, up from 1.4% in the same period of 2020[33]. - Loss from operations decreased to RMB3,025,000 compared to RMB38,459,000 in the previous year, showing a reduction in operational losses[109]. - Loss before tax improved to RMB40,260,000 from RMB74,355,000 in 2020, reflecting a 45.5% reduction in losses[109]. Expenses and Cost Management - The cost of sales decreased by 25.0% from approximately RMB184.9 million in the first half of 2020 to approximately RMB138.7 million in the first half of 2021[27]. - Selling and distribution expenses decreased by 60.2% to approximately RMB1.0 million for the six months ended June 30, 2021, down from RMB2.6 million in the same period of 2020[37]. - General and administrative expenses decreased by 46.6% to approximately RMB15.0 million for the six months ended June 30, 2021, compared to RMB28.0 million in the same period of 2020[39]. Financial Position - As of June 30, 2021, the Group's bank and cash balances amounted to approximately RMB1.0 million, down from approximately RMB3.6 million as of 31 December 2020[41]. - The Group's borrowings increased to approximately RMB971.6 million as of June 30, 2021, compared to RMB950.9 million as of 31 December 2020[42]. - The current ratio was 4.9%, down from 5.4% as of December 31, 2020, indicating a slight decrease in liquidity[47]. - The total liabilities of the Group as of June 30, 2021, were RMB1,263,049,000, with segment liabilities for fabrics at RMB291,402,000[131]. Corporate Governance and Compliance - The company complied with the Corporate Governance Code except for code provision A.1.8 regarding insurance cover for directors[90]. - The company will continue to review and enhance its corporate governance practices to meet the requirements of the Corporate Governance Code[92]. - All directors confirmed compliance with the Model Code for securities transactions during the review period[93]. Acquisitions and Future Plans - The Company agreed to acquire 51% equity interests of the Target Company, which is expected to enhance the production and sales of elastic webbing for bras and underwear, thereby strengthening future revenue sources and cash flow[54]. - The management is actively exploring acquisition opportunities in Hong Kong and PRC to diversify trading risks and improve financial position and cash flow[66]. - The management is preparing a circular with details of the acquisition and will keep shareholders informed through further announcements[57]. Share Capital and Securities - The total number of issued and fully paid ordinary shares increased to 435,629,000 from 302,521,000 as of January 1, 2021, representing a growth of approximately 44%[163]. - The company issued unsecured bonds with an aggregate principal value of approximately RMB887,590,000, unchanged from December 31, 2020[161]. - The company raised RMB5,499,000 from the issuance of new shares during the period, compared to RMB2,816,000 in the previous year, representing an increase of about 95.0%[117]. Cash Flow and Liquidity - The company reported a net cash generated from operating activities of RMB1,082,000 for the six months ended June 30, 2021, compared to a net cash used of RMB(23,814,000) in the same period of 2020[117]. - Cash and cash equivalents at the end of the period were RMB1,027,000, down from RMB8,573,000 at the end of June 2020, indicating a decrease of approximately 88.0%[117]. - The company is in discussions with creditors for a debt restructuring plan and has filed an application with the High Court of Hong Kong[71].

Financial Performance - The Group recorded revenue of approximately RMB206.7 million for the year ended 31 December 2020, representing a decrease of approximately 60.1% compared to RMB517.7 million for the year ended 31 December 2019[5] - The Group experienced a gross loss of approximately 6.0% in 2020, compared to a gross profit margin of approximately 2.1% in the previous year[5] - Loss attributable to owners of the Company decreased from approximately RMB287.6 million in 2019 to approximately RMB219.0 million in 2020, representing a decrease of approximately 23.8%[5] - Sales of shoes, clothes, and others contributed revenue of approximately RMB191.4 million in 2020, down from RMB397.8 million in 2019[5] - The average selling price of fabrics decreased by approximately 57.9% to RMB2.4 per meter, down from RMB5.7 per meter in 2019[22] - The average unit cost of fabrics decreased from RMB5.9 per meter in 2019 to RMB5.5 per meter, representing a decrease of 6.8%[22] - The overall gross loss margin for the year ended 31 December 2020 was approximately 6.0%, compared to a gross profit margin of 2.1% in 2019[22] - Cost of sales decreased by 56.8% to approximately RMB219.0 million in 2020 from RMB506.6 million in 2019, aligning with the decrease in turnover[27] - Gross loss for the year was approximately RMB12.3 million, representing a gross loss margin of 6.0%, compared to a gross profit of RMB11.0 million and a margin of 2.1% in 2019[35] - General and administrative expenses increased by 51.4% to approximately RMB101.3 million in 2020, primarily due to inventory impairment losses of approximately RMB19.7 million[41] - Other income surged by 607.2% to approximately RMB40.8 million in 2020, mainly from net foreign exchange gains of approximately RMB39.4 million[43] - Finance costs decreased by 14.2% to approximately RMB126.9 million in 2020 from RMB147.9 million in 2019, attributed to a reduction in average borrowings and interest expenses[43] - Selling and distribution expenses fell by 10.0% to approximately RMB7.4 million in 2020, reflecting decreased transportation charges due to lower sales[36] Business Operations - The Group commenced face mask business during the year, contributing approximately RMB0.3 million in revenue, which was included in the sales of shoes, clothes, and others segment[5] - The Group's production facilities in Fujian province were closed in April 2020 due to the COVID-19 pandemic[5] - The production line in Fujian was shut down in April 2020 due to the impact of COVID-19[22] - The Group's production capacities of fabrics remained similar to the previous year's level, but the utilization rate decreased due to declining sales volume[22] - The Group is engaged in the sales of shoes, clothes, and other products, as well as the manufacturing and sale of fabrics and yarns[198] - The majority of the Group's revenue is derived from two main geographical areas: Mainland China and Korea[198] Financial Position - As of December 31, 2020, current assets decreased to RMB 53.5 million from RMB 120.8 million in 2019, reflecting a decline of approximately 55.7%[49] - Current liabilities increased to RMB 983.3 million in 2020, up from RMB 816.9 million in 2019, representing a rise of about 20.4%[49] - The current ratio dropped significantly to 5.4% in 2020 from 14.8% in 2019, indicating a deterioration in liquidity[49] - The Group had net current liabilities of approximately RMB 929,758,000 and net liabilities of approximately RMB 959,287,000[172] - The Group's bank borrowings amounted to approximately RMB 169,223,000 and bonds of approximately RMB 538,520,000, which are subject to renewal or full repayment within the next twelve months[172] Corporate Governance - The Company has adopted the Corporate Governance Code and complied with applicable code provisions throughout the year, except for code provision A.1.8 regarding insurance cover for Directors[68] - The Board consists of five members, including two executive Directors and three independent non-executive Directors[80] - The independent non-executive Directors represent at least one-third of the Board throughout the Period[81] - The Company has complied with the Listing Rules regarding the appointment of independent non-executive Directors with appropriate professional qualifications[81] - The Acting Chairman, Mr. Lin Guoqin, leads the Board in determining the Group's strategy and objectives[94] - The Company currently does not have a Chief Executive Officer; executive Directors handle daily operations and report to the Board[95] - The Company will review and enhance its corporate governance practices to ensure ongoing compliance with the corporate governance code[74] - The Board has established various committees to delegate responsibilities as outlined in their terms of reference[78] - The Company established a Regulatory Compliance Committee on February 26, 2014, to ensure adherence to compliance standards[118] Risk Management - The Group's exposure to foreign exchange risk is primarily from sales and purchase transactions in Hong Kong, mainly denominated in USD[54] - The consolidated financial statements were prepared on a going concern basis, dependent on successful negotiations with creditors for renewal or extension of existing borrowings[172] - The Group's ability to continue as a going concern is under significant doubt due to its financial condition[172] - Certain internal control deficiencies were identified, and the Group is in the process of locating an internal control advisor to address these issues[178] Employee and Community Engagement - The total workforce decreased to 55 employees as of December 31, 2020, from 350 in 2019, indicating a significant reduction in staff[63] - The Group encourages employee participation in environmental and social activities benefiting the community[199] - The Group is committed to maintaining high environmental and social standards, ensuring compliance with relevant laws and regulations[199] - The Group has a strong commitment to sustainable development through responsible corporate practices[199] Shareholder Relations - The Company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance and strategies[183] - Shareholder meetings will have separate resolutions for each substantial issue, including the election of individual directors, to safeguard shareholders' rights[183] - All resolutions at shareholder meetings will be voted on by poll, with results posted on the Company's and Stock Exchange's websites[183] - The Company's constitutional documents are accessible on its and the Stock Exchange's websites[183]

Financial Performance - The Group's revenue decreased by 7.3% to approximately RMB 187.5 million for the six months ended June 30, 2020, compared to approximately RMB 202.3 million for the same period in 2019[10]. - Loss attributable to the owners of the Company increased from approximately RMB 47.5 million for the six months ended June 30, 2019, to approximately RMB 74.4 million for the six months ended June 30, 2020[10]. - Loss per share increased from RMB 0.26 for the six months ended June 30, 2019, to RMB 0.31 for the six months ended June 30, 2020[10]. - Revenue for the six months ended June 30, 2020, was RMB 187,494, a decrease of 7.4% compared to RMB 202,348 in 2019[108]. - The company incurred a loss from operations of RMB 38,459,000, compared to a profit of RMB 4,151,000 in the previous year[75]. - The loss before tax was RMB 74,355,000, which is a significant increase from a loss of RMB 47,454,000 in 2019[75]. - The gross profit for the same period was RMB 2,586,000, down 59.9% from RMB 6,444,000 in 2019[75]. - The company reported a total comprehensive loss of RMB (74,355,000) for the period ended June 30, 2020[79]. Revenue Breakdown - Revenue from fabric products dropped significantly from approximately RMB74.6 million to RMB11.4 million, a decrease of approximately 84.7%, due to adverse market conditions and production volume affected by the COVID-19 pandemic[14]. - Revenue from sales of shoes and clothing increased from approximately RMB127.7 million to approximately RMB175.8 million, an increase of about 37.7% driven by higher overseas demand[14]. - Sales of fabrics amounted to RMB 11,358, while sales of shoes and clothes reached RMB 176,136, showing significant growth in the latter category[108]. Cost and Expenses - The Group's cost of sales decreased by 5.6% from approximately RMB195.9 million to approximately RMB184.9 million, aligning with the overall revenue trend[17]. - The gross profit margin decreased from 3.2% for the six months ended 30 June 2019 to 1.4% for the same period in 2020, primarily due to a reduction in the average selling price of fabric products[23]. - Selling and distribution expenses increased by 247.3% from approximately RMB0.8 million to approximately RMB2.6 million, attributed to higher transportation fees from increased export sales of shoes and clothing[27]. - General and administrative expenses increased by 120.5% from approximately RMB12.7 million for the six months ended June 30, 2019, to approximately RMB28.0 million for the six months ended June 30, 2020[29]. Assets and Liabilities - As of June 30, 2020, total assets less current liabilities amounted to RMB (516,456,000), compared to RMB (356,397,000) at the end of 2019[77]. - The company's net liabilities stood at RMB (822,049,000) as of June 30, 2020, compared to RMB (759,788,000) at the end of 2019[77]. - Current liabilities increased to RMB 895,523,000 from RMB 816,853,000 at the end of 2019[76]. - Total liabilities as of June 30, 2020, were RMB 1,201,116,000, up from RMB 1,102,430,000 in the previous year, reflecting an increase of approximately 9%[104]. Cash Flow and Financing - For the six months ended June 30, 2020, the net cash used in operating activities was RMB (23,814,000), a significant decrease compared to RMB 459,000 in the same period of 2019[80]. - Cash flows from investing activities generated a net cash inflow of RMB 68,865,000, primarily due to proceeds from the disposal of property, plant, and equipment amounting to RMB 70,488,000[80]. - The company raised RMB 10,059,000 from the rights issue during the period, contributing to its capital reserves[80]. - The company reported a borrowing raised of RMB 10,810,000 and repayments of borrowings totaling RMB (63,847,000) during the financing activities[80]. Workforce and Operations - The total workforce decreased to 205 as of June 30, 2020, from 350 as of December 31, 2019[40]. - The Group's principal business of fabric and yarn sales has been deteriorating due to the impact of COVID-19, which is expected to significantly affect the global economy in the coming year[44][46]. Corporate Governance - The Company maintained a sufficient public float of at least 25% of its issued share capital as required under the Listing Rules[53]. - The Audit Committee comprises three independent non-executive Directors and is responsible for reviewing the Group's financial reporting process and overseeing risk management[63]. - The Remuneration Committee is responsible for formulating the Group's policy and structure for all remuneration of Directors and senior management[64]. - The Nomination Committee is responsible for reviewing the Board's structure and making recommendations on the appointment and re-appointment of Directors[65]. - The Company has complied with the Corporate Governance Code except for code provision A.1.8 regarding insurance cover for Directors[55][56]. Future Outlook - The Group plans to explore healthy and stable industries through mergers and acquisitions to enhance profitability and improve financial position and cash flow[44][46]. - The Company is working on a debt restructuring scheme, which requires the agreement of the majority of creditors and court orders from Bermuda and Hong Kong[45][46].

Financial Performance - The Group recorded revenue of approximately RMB 517.7 million for the year ended 31 December 2019, representing an increase of approximately 106.5% compared to RMB 250.7 million for the year ended 31 December 2018[5]. - Revenue from sales of shoes and clothes increased from approximately RMB 23.5 million in 2018 to approximately RMB 397.8 million in 2019, representing an increase of 1593.0%[5]. - Revenue from sales of fabrics decreased from approximately RMB 227.2 million in 2018 to approximately RMB 119.9 million in 2019, representing a decrease of 47.2%[5]. - The gross profit margin of the Group's products was approximately 2.1%, an increase from a gross loss margin of approximately 0.02% in the previous year[5]. - Loss attributable to owners of the Company decreased from approximately RMB 369.3 million in 2018 to approximately RMB 287.6 million in 2019, representing a decrease of approximately 22.1%[5]. - The increase in revenue was mainly due to higher sales in shoes and clothing, which began in the fourth quarter of 2018[22]. - The Group's revenue increased by 106.5% from approximately RMB 250.7 million in 2018 to approximately RMB 517.7 million in 2019, primarily due to increased sales volume of shoes and clothes[30]. - The Group incurred a loss of approximately RMB 287,608,000 for the year ended 31 December 2019[160]. - As of 31 December 2019, the Group had net current liabilities of approximately RMB 698,088,000 and net liabilities of approximately RMB 759,788,000[160]. Market Conditions - The ongoing Sino-U.S. economic and trade frictions and the COVID-19 outbreak are expected to negatively impact the global economy and the Group's operations in 2020[8]. - The PRC economy faced structural adjustments with a GDP growth of only 6.1% in 2019, down from 6.6% in 2018[23]. - The aggregate sales of sizeable textile enterprises in the PRC amounted to RMB 2,403.8 billion in 2019, representing a 1.8% decrease year-on-year[23]. - The production volume of fabrics decreased by 12.4% in 2019, totaling 57.56 billion meters[23]. - The textile industry faced challenges due to Sino-U.S. economic and trade frictions, impacting export volumes[23]. - The value of textile products exported from China was approximately US$120.2 billion in 2019, with garment exports at US$151.4 billion, a year-on-year decrease of 4.0%[23]. Business Strategy - The Group plans to explore new business opportunities and continue mergers and acquisitions to enhance profitability and improve financial position amid challenging market conditions in 2020[8]. - The Group aims to diversify its business to improve cash flow and financial stability in the face of adverse market conditions[8]. - The company is focused on expanding its asset management and investment strategies, leveraging the expertise of its directors[182]. - The company is exploring new market opportunities and potential acquisitions to drive growth[186]. Cost and Expenses - The Group's cost of sales increased by 102.1% from approximately RMB 250.7 million in 2018 to approximately RMB 506.6 million in 2019, in line with increased turnover[30]. - Selling and distribution expenses rose by 181.4% from approximately RMB 2.9 million in 2018 to approximately RMB 8.2 million in 2019 due to increased transportation charges related to export sales[38]. - General and administrative expenses decreased by 33.4% from approximately RMB 223.3 million in 2018 to approximately RMB 148.8 million in 2019, mainly due to fewer impairments made during the year[43]. - Other income decreased by 81.1% from approximately RMB 30.6 million in 2018 to approximately RMB 5.8 million in 2019, attributed to a decline in the reversal of impairment losses and government grants received[43]. - Finance costs rose by 43.3% from approximately RMB 103.2 million in 2018 to approximately RMB 147.9 million in 2019, driven by an increase in the average balance of borrowings[43]. Corporate Governance - The Company has complied with the applicable code provisions of the Corporate Governance Code throughout the reporting period, except for code provision A.1.8 regarding insurance cover for Directors[67]. - The Board currently comprises six members, including three executive Directors and three independent non-executive Directors, meeting the requirements of the Listing Rules[80]. - The Company has established various committees, including the Audit Committee, Remuneration Committee, and Nomination Committee, with independent non-executive directors invited to serve on these committees[90]. - The Company has adopted a standard code of conduct for securities trading by directors and employees, ensuring compliance with applicable laws and regulations[81]. - The Company emphasizes the importance of corporate governance practices and compliance with applicable laws and regulations[128]. Board Composition and Diversity - The Board consists of six members, including three executive directors and three independent non-executive directors, with independent non-executive directors accounting for at least one-third of the board[85]. - The Nomination Committee is composed entirely of independent non-executive directors, ensuring a focus on independence and governance[112]. - The company emphasizes the importance of diversity in skills and perspectives within the Board to enhance decision-making[114]. - The company achieved a board diversity policy with measurable objectives, including the inclusion of candidates with overseas working experience and no gender limitations in director selection[129]. - As of the date of the annual report, 1 out of 6 board members has overseas working experience, and 3 out of 6 members possess accounting or other professional qualifications[130]. Internal Control and Audit - The Audit Committee conducted 3 meetings during the year to review financial statements and the effectiveness of the internal control system[151]. - The Audit Committee is responsible for overseeing the relationship with external auditors and making recommendations regarding their appointment[150]. - The Board is responsible for maintaining an adequate internal control system to safeguard shareholder investments and Company assets, with annual reviews supported by the Audit Committee[167]. - Certain internal control deficiencies were identified, and the Group is in the process of locating an internal control advisor to address these issues[167]. Shareholder Relations - The Company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance and strategies[170]. - All resolutions at shareholder meetings will be voted on by poll, with results posted on the Company's and Stock Exchange's websites[172]. - The Company Secretary is a full-time employee, ensuring proper governance and communication with shareholders[167].

Financial Performance - The company's revenue increased by 50.86% to approximately RMB 202.3 million for the six months ended June 30, 2019, compared to RMB 134.1 million for the same period in 2018[8]. - The loss attributable to owners of the company decreased to approximately RMB 47.5 million, down from RMB 60.0 million in the previous year[8]. - The gross profit rose from RMB 2.7 million to RMB 6.4 million, primarily due to the profitability from the new footwear and apparel segment[10]. - The gross margin improved from 2.0% to 3.2%, driven by higher gross margins from the new footwear and apparel segment[11]. - The group reported revenue of RMB 202,348,000 for the six months ended June 30, 2019, compared to RMB 134,098,000 for the same period in 2018, representing a year-over-year increase of 50.9%[62]. - The net loss attributable to the owners of the company for the six months ended June 30, 2019, was RMB 47,454,000, with a basic loss per share of RMB 0.26, compared to a loss of RMB 62,883,000 and a loss per share of RMB 0.40 in 2018[62]. - The group incurred a loss before tax of RMB 47,454,000 for the six months ended June 30, 2019, compared to a loss of RMB 62,883,000 for the same period in 2018, indicating an improvement[120]. Revenue Breakdown - Revenue from the multi-fiber woven series decreased from RMB 100.6 million to RMB 59.0 million, mainly due to a decline in product demand[14]. - The blended series revenue dropped from RMB 23.6 million to RMB 13.7 million, attributed to a decrease in product demand from 3,740.0 km to 2,154.8 km[14]. - The elastic series revenue fell from RMB 3.6 million to RMB 1.2 million, primarily due to a drop in average selling price from RMB 10.2 per meter to RMB 5.1 per meter[16]. - The pure cotton series revenue decreased from RMB 6.3 million to RMB 0.7 million, with product demand dropping from 952.6 km to 132.1 km[16]. - The group’s gross profit from fabric sales was RMB 1,089,000, while the gross profit from footwear and apparel sales was RMB 5,355,000, totaling RMB 6,444,000 for the reporting period[110]. Expenses and Costs - General and administrative expenses increased by 14.4% from approximately RMB 111 million to approximately RMB 127 million, accounting for 8.3% and 6.3% of the group's revenue for the respective periods[17]. - Financing costs rose from approximately RMB 498 million to approximately RMB 516 million, primarily due to an increase in average borrowings for general working capital[19]. - The group’s financing costs totaled RMB 51,605,000 for the six months ended June 30, 2019, compared to RMB 49,829,000 for the same period in 2018[117]. Cash Flow and Liquidity - Cash and cash equivalents increased to approximately RMB 33 million from approximately RMB 14 million, mainly due to an increase in bond issuance of approximately RMB 408 million[23]. - Cash and cash equivalents at the end of the period were RMB 3,263,000, a decrease from RMB 28,602,000 at the end of the previous year, indicating liquidity challenges[72]. - The company reported a net cash inflow from operating activities of RMB 459,000, a significant recovery from a cash outflow of RMB 25,952,000 in the prior year[72]. - The financing activities generated a net cash inflow of RMB 1,790,000, a decrease from RMB 53,113,000 in the previous year, highlighting reduced financing activities[72]. Assets and Liabilities - Total assets less current liabilities amounted to RMB (239,432,000) as of June 30, 2019, compared to RMB (179,379,000) at the end of 2018, indicating a deterioration in the financial position[64]. - Non-current assets were valued at RMB 359,351,000, down from RMB 373,734,000 at the end of 2018, reflecting a decline in long-term asset value[64]. - The company’s total liabilities increased to RMB 822,200,000 from RMB 722,576,000, indicating rising financial obligations[67]. - The group’s total assets amounted to RMB 582,768,000 as of June 30, 2019, with total liabilities of RMB 1,102,430,000[112]. Corporate Governance and Compliance - The company has complied with the corporate governance code as per the listing rules, except for certain provisions[49]. - The audit committee consists of two independent non-executive directors, with Mr. Zhou Runzhang serving as the chairman[54]. - The company is actively seeking suitable candidates to fill vacancies in the board and committees following recent resignations[51]. - The company has adopted the standard code for securities transactions by directors and confirmed compliance during the review period[53]. Shareholder Information - As of June 30, 2019, Mr. Lin Qingxiong holds 279,600,000 shares in the company, representing approximately 15.03% of the company's equity[40]. - Mr. Lin Qingxiong also has beneficial ownership of 10,840,000 shares, accounting for about 0.58% of the company's equity[40]. - The company maintains a sufficient public float, with at least 25% of its issued share capital held by the public as of the report date[46]. - There are no other individuals, apart from those disclosed, holding 5% or more of the issued share capital as of June 30, 2019[45]. Accounting Policies and Standards - The company adopted the International Financial Reporting Standard 16 (IFRS 16) for leases, recognizing a right-of-use asset of RMB 1,016,000 as of January 1, 2019[82]. - The lease liabilities recognized under IFRS 16 amounted to RMB 1,044,000 as of January 1, 2019[83]. - The cumulative loss as of January 1, 2019, was adjusted to RMB (1,260,757,000) due to the adoption of IFRS 16[83]. - The company reported no significant changes in accounting policies or financial statement presentation due to the adoption of new and revised IFRS standards[77].

Financial Performance - The Group recorded revenue of approximately RMB250.7 million for the year, representing a decrease of approximately 7.8% year-on-year[6]. - Loss attributable to owners of the Company decreased significantly from approximately RMB732.8 million in 2017 to approximately RMB369.3 million in 2018, representing a decrease of approximately 49.6%[6]. - The company reported a significant increase in revenue, achieving a total of $150 million for the fiscal year, representing a 25% growth compared to the previous year[18]. - The Group recorded revenue of approximately RMB250.7 million for the year ended 31 December 2018, representing a decrease of approximately 7.8% compared to RMB271.9 million in 2017[41]. - The Group incurred a loss of approximately RMB369,281,000 for the year ended 31 December 2018[187]. - For the year ended December 31, 2018, the Group incurred a loss of approximately RMB 369,281,000[190]. Sales and Revenue Trends - Sales of fabrics decreased from approximately RMB271.9 million in 2017 to approximately RMB227.2 million in 2018[6]. - Clothes trading to Asian countries is expected to grow continuously in the forthcoming year[13]. - The average selling price of fabrics decreased by approximately 22.4% to RMB5.9 per meter in 2018, down from RMB7.6 per meter in 2017[33]. - The average unit cost of fabrics decreased significantly from RMB8.06 per meter in 2017 to RMB5.90 per meter in 2018, representing a decrease of 26.8%[33]. - The gross loss margin improved from 6.1% in 2017 to 0.02% in 2018, despite a decrease in selling prices[33]. - The group's revenue decreased by 7.8% from approximately RMB271.9 million in 2017 to approximately RMB250.7 million in 2018, primarily due to a decline in fabric product revenue from RMB271.9 million to RMB227.2 million[45]. Business Development and Strategy - The Group commenced a new business of shoes and clothes trading in Q4 2018, contributing approximately RMB23.5 million in sales[6]. - The management aims to develop new potential businesses to enhance the Group's income and overall performance[12]. - The Group plans to focus on expanding its domestic market presence and entering overseas trading markets in 2019[39]. - The Group aims to enhance profitability by optimizing its existing product portfolio and developing new products that meet market demand[39]. - The Group's management will strive for more resources from the market to support its operations and relieve the current difficult position[12]. Cost Management and Expenses - The gross margin improved to 60%, up from 55% in the previous year, indicating better cost management[18]. - Selling and distribution costs increased by 38.1% from approximately RMB2.1 million in 2017 to approximately RMB2.9 million in 2018, mainly due to increased freight outward charges[48]. - General and administrative expenses decreased significantly by 63.2% from approximately RMB606.8 million in 2017 to approximately RMB223.3 million in 2018, primarily due to fewer impairments made during the year[49]. - Research and development expenses increased to $10 million, reflecting a 40% investment in new technologies[18]. Corporate Governance - The Company complied with the Corporate Governance Code throughout 2018, except for code provision A.1.8 regarding insurance cover for Directors[94]. - The Company is committed to enhancing its corporate governance practices to meet the requirements of the Corporate Governance Code[96]. - The Company has adopted the Corporate Governance Code as its own code of corporate governance, ensuring transparency and accountability in its operations[92]. - The board consists of six members, including three executive directors and three independent non-executive directors, meeting the listing rules requirements[102]. - The Company aims to maintain high levels of corporate governance to safeguard shareholder interests and enhance corporate value[93]. Financial Position and Liabilities - As of 31 December 2018, the Group had net current liabilities of approximately RMB575,778,000 and net liabilities of approximately RMB472,180,000[187]. - The Group's bank borrowings of approximately RMB133,692,000 were overdue as of 31 December 2018[187]. - The Group's bonds of approximately RMB326,797,000 are subject to renewal or full repayment within the next twelve months[187]. - The Group's ability to continue as a going concern is dependent on successful negotiations with creditors for loan renewals or extensions[190]. Board and Management Structure - The Company does not currently have a Chief Executive Officer, with responsibilities for daily operations delegated to executive directors[113]. - The board has established various committees, including the Audit Committee, Remuneration Committee, and Nomination Committee, to enhance governance[108]. - The Nomination Committee consists of three independent non-executive Directors, with Mr. Lin Yugang serving as the chairman[136]. - The primary duties of the Nomination Committee include reviewing the Board structure, developing nomination procedures, and assessing the independence of independent non-executive Directors[137]. Shareholder and Employee Relations - The Company emphasizes competitive remuneration schemes and discretionary bonuses based on individual and Group performance to attract and retain talent[87]. - The Company aims to achieve Board diversity, with measurable objectives including the inclusion of candidates with overseas experience and no gender limitations in Director selection[154]. - The Company held two Board meetings during the year to discuss overall strategy and financial performance[128].