Retail Market Performance - The group reported a significant decline in the retail market, with a 6.5% year-on-year drop in sales of clothing, shoes, and textiles in China[11]. - The overall retail sales in China decreased by 0.2% year-on-year, reflecting weak consumer sentiment and economic pressure[11]. - The retail market in Hong Kong remained unstable, with slow recovery in consumer spending due to the lingering effects of COVID-19[11]. - The overall economic growth in China was only 3.0% in 2022, significantly below the expected 5.5%[11]. Financial Performance - The group's revenue for the reporting period was approximately HKD 61,051,000, an increase of about 2.77% compared to HKD 58,419,000 in the previous year[21]. - The revenue from apparel procurement was approximately HKD 59,726,000, representing a growth of about 6.34% from HKD 56,163,000 in the previous year[21]. - The gross profit margin decreased to approximately 3.11%, down by about 1.62 percentage points from 4.73% in the previous year[21]. - The group reported a loss attributable to shareholders of approximately HKD 2,150,000, an improvement from a loss of HKD 3,713,000 in the previous year[21]. - Revenue for the six months ended September 30, 2023, was HKD 61,051,000, an increase of 2.8% compared to HKD 58,419,000 for the same period in 2022[75]. - Gross profit decreased to HKD 1,900,000, down 31.2% from HKD 2,763,000 year-on-year[75]. - The company reported a loss before tax of HKD 2,150,000, an improvement from a loss of HKD 3,713,000 in the previous year, representing a 42.2% reduction in losses[75]. - The diluted loss per share improved to HKD 0.27 from HKD 0.47 year-on-year, reflecting a 42.6% reduction in loss per share[75]. - The operating loss for the six months ended September 30, 2023, was HKD 2,150,000, an improvement from an operating loss of HKD 3,713,000 in the previous year[89][90]. - The company reported a net loss attributable to shareholders of HKD 2,150,000 for the six months ended September 30, 2023, compared to a net loss of HKD 3,713,000 in the same period last year[97]. Asset and Liquidity Management - As of September 30, 2023, the group's total assets were approximately HKD 103,584,000, down from HKD 140,401,000 as of March 31, 2023[23]. - The current ratio improved to 7.32:1 as of September 30, 2023, compared to 2.85:1 as of March 31, 2023, indicating a healthy liquidity position[23]. - The group maintained a prudent financial management strategy, ensuring a stable liquidity position throughout the reporting period[24]. - The group has no bank or other borrowings as of September 30, 2023, resulting in a reported debt ratio of zero[23]. - Cash and cash equivalents increased to HKD 34,531,000 from HKD 32,110,000, reflecting a net increase of HKD 2,421,000 during the period[80]. - The company’s total equity as of September 30, 2023, was HKD 89,609,000, down from HKD 91,350,000, a decrease of 1.9%[77]. Strategic Initiatives - The group adjusted its sales strategy to a low-margin, high-volume approach, which helped stabilize business operations despite ongoing challenges[12]. - The group aims to diversify its revenue sources through financial services, particularly in the lending sector, which is expected to benefit shareholders[14]. - The group is focusing on selecting reputable suppliers to promote sustainable business growth amid challenging market conditions[9]. - The group is enhancing its financial product offerings to capture market opportunities in both Hong Kong and mainland China[14]. - The group aims to enhance operational standards in its two main businesses while seeking new opportunities to expand profit channels[20]. Lending and Credit Management - The group has not recorded any borrower defaults in its lending business for the six months ending September 30, 2023[14]. - The company has implemented a credit risk assessment policy for its lending business, requiring detailed financial information from potential borrowers, including income sources and outstanding loans[28]. - The company uses a Debt-to-Income (DTI) ratio as a decision-making tool, rejecting applications with a DTI over 80% unless approved by the board, and ensuring DTI does not exceed 90%[30]. - The company actively monitors loan repayments and conducts quarterly reviews to identify any overdue payments, reporting to the credit committee[31]. - The company evaluates potential borrowers using an internal credit rating system, considering historical credit information and repayment history[38]. Shareholder and Governance Information - The board did not recommend any interim dividend for the six months ended September 30, 2023, consistent with the previous year[8]. - Major shareholders include Mr. Wu Lianghao with 103,950,000 shares (13.23%) and Mr. Wu Zilun with 50,173,000 shares (6.38%) as of September 30, 2023[12]. - The company has complied with all provisions of the Corporate Governance Code during the reporting period, with some deviations noted[59]. - The audit committee consists of three independent non-executive directors, who reviewed the unaudited interim financial statements for the six months ending September 30, 2023[63]. - The company has not established an internal audit function due to considerations of scale and cost-effectiveness, but the audit committee reviews the internal control systems annually[59]. Legal and Contingent Liabilities - The company is required to pay a total amount of approximately RMB 48,400,000 (equivalent to about HKD 52,600,000) as per the judgment registered in the Hong Kong High Court[109]. - The company has been held responsible for 50% of the debt owed by the borrowers, amounting to RMB 12,000,000 and RMB 38,000,000, despite the guarantee being deemed invalid[107]. - The company filed an application to revoke the registration of the judgment within 30 days of notification, indicating ongoing legal proceedings[109]. - The company has no contingent liabilities as of September 30, 2023, indicating a stable financial position[39]. - The company has no mortgaged assets as of September 30, 2023, reflecting a strong asset base[37].

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。 HANG PIN LIVING TECHNOLOGY COMPANY LIMITED 杭 品 生 活 科 技 股 份 有 限 公 司 （於百慕達註冊成立的有限公司） （股份代號：1682） 中期業績公告 截至二零二三年九月三十日止六個月 未經審核中期業績 杭品生活科技股份有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈，本 公司及其不時之附屬公司（統稱「本集團」）於截至二零二三年九月三十日止六個月 （「報告期」）之未經審核綜合業績連同上一相應期間之比較數字。 ...

Economic Challenges - The company faced significant challenges in the garment procurement segment due to geopolitical tensions and high inflation, leading to a decrease in consumer spending power and overall demand for textiles [8]. - In 2022, China's GDP growth was only 3.0%, significantly below the expected 5.5%, impacting the retail market, with clothing and textile sales declining by 6.5% [12]. - The group anticipates that customer demand will remain weak in the short term due to economic uncertainties, including high inflation and geopolitical tensions [23]. Financial Performance - The group's revenue for the reporting period was approximately HKD 123,210,000, a slight increase of 0.71% from HKD 122,339,000 in 2022 [26]. - The gross profit margin decreased to approximately 4.48%, down by 0.53 percentage points from 5.01% in 2022 [26]. - The group reported a loss attributable to owners of approximately HKD 5,509,000, an improvement from a loss of HKD 12,673,000 in 2022 [26]. Operational Adjustments - The company adjusted its sales strategy to a low-margin, high-volume approach, which helped stabilize business conditions, resulting in overall sales improvement compared to the previous year [13]. - The financial services segment, including asset management and lending, was expanded to diversify revenue sources, with a focus on the Hong Kong and mainland China markets [14]. - The lending business, operated by a wholly-owned subsidiary, reported no defaults on interest or principal during the reporting period, indicating a stable credit environment [17]. Asset Management - As of March 31, 2023, total assets were approximately HKD 140,401,000, up from HKD 135,124,000 a year earlier [27]. - The current ratio was 2.85:1, indicating a healthy liquidity position, slightly down from 2.87:1 in 2022 [27]. - The group maintained no bank or other borrowings as of March 31, 2023, consistent with the previous year [27]. Employee and Administrative Costs - Administrative expenses increased by approximately 17.17% to HKD 13,373,000, compared to HKD 11,413,000 in 2022 [26]. - The total salary and related costs for employees amounted to approximately HKD 8,152,000 for the year ending March 31, 2023, an increase from HKD 5,898,000 in the previous year [45]. - The group employs approximately 25 staff members (excluding directors), indicating a relatively small workforce [45]. Investment Strategy - The group maintains a low-risk investment strategy aimed at generating stable returns and improving capital utilization [51]. - The fair value of the investment in SenseTime Group is HKD 2,660,000, representing 1.89% of total assets [46]. - The group continues to focus on diversifying investments to achieve stable returns [51]. Corporate Governance - The company has adhered to all corporate governance code provisions for the year ending March 31, 2023, with no significant violations reported [143]. - The company has not established an internal audit function due to considerations of scale and cost-effectiveness, relying instead on the audit committee to review internal control systems annually [135]. - The board of directors is committed to ensuring sufficient reserves for future development while allowing shareholders to share in the company's profits [79]. Risk Management - The risk management policy aims to enhance risk management and ensure business continuity while maintaining the company's healthy development [170]. - The company has established a risk assessment and management program to identify potential risks related to unrealized goals [176]. - The board is responsible for overseeing the internal control system to protect the company's assets and shareholders' interests [177]. Shareholder Communication - The company has a policy to facilitate effective communication between the company and its investors and shareholders [179]. - The board is satisfied with the effective implementation of the shareholder communication policy during the reporting period [182]. - Shareholders have the right to request the convening of a special general meeting under specified conditions [184]. Audit and Compliance - The independent auditor confirmed that the consolidated financial statements reflect the group's financial position and performance accurately as of March 31, 2023 [193]. - The audit identified the assessment of impairment of accounts receivable as a key audit matter due to its significance in the overall financial statements [198]. - The group must ensure compliance with the Hong Kong Companies Ordinance in preparing financial statements [193].

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。 HANG PIN LIVING TECHNOLOGY COMPANY LIMITED 杭品生活科技股份有限公司 （於百慕達註冊成立的有限公司） （股份代號：1682） 年度業績公告 截至二零二三年三月三十一日止年度 年度業績 杭品生活科技股份有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈，本 公司及其附屬公司（統稱「本集團」）於截至二零二三年三月三十一日（「報告期」）止 年度之經審核綜合業績連同去年之比較數字如下： 綜合損益及其他全面收益表 截至二零二三年三月三十一日止年度 二零二三年 二零二二年 附註 千港元 千港元 收入 4 123,210 122,339 銷售成本 (117,688) (116,211) 毛利 5,522 6,128 其他收入及其他收益 6 1,591 (3,922) ...

Economic Impact - The group reported a significant impact on business performance due to weak demand and delivery disruptions caused by COVID-19 and geopolitical tensions, leading to cautious ordering from wholesalers[9]. - In the first half of 2022, China's GDP growth was only 2.5%, with the second quarter showing a mere 0.4% growth, significantly lower than the 4.8% growth in the first quarter[11]. - The overall market conditions remain challenging due to global supply chain issues, despite some recovery in consumer retail sales in China since May 2022[11]. - The global economic growth rate is projected to decline from 6.0% in 2021 to 3.2% in 2022 and 2.7% in 2023, marking the weakest growth since 2001[23]. - China's growth rate is expected to drop from 8.1% in 2021 to 3.2% in 2022 and recover to 4.4% in 2023[23]. - Hong Kong's GDP contracted by 4.5% quarter-on-quarter in Q3 2022, with a year-to-date decline of 3.3%[24]. - Global inflation is expected to rise from 4.7% in 2021 to 8.8% in 2022, before decreasing to 6.5% in 2023 and 4.1% in 2024[23]. Business Strategy and Operations - The group has established a new supplier selection process to promote sustainable business growth by choosing reputable suppliers with strong financial health and good track records[9]. - The group has diversified its business by launching a lending service under its wholly-owned subsidiary, which has not recorded any loan defaults or write-offs during the reporting period[14]. - The group aims to enhance its financial services in both Hong Kong and mainland China, capitalizing on the growing demand in these markets[14]. - The company has adjusted its sales strategy to thin margins and increased sales volume to stabilize its business amid the crisis[12]. - The online retail business has seen growth due to the rise of "stay-at-home economy" during the pandemic, increasing customer expectations for speed, quality, and pricing[9]. - The group is focusing on expanding its product offerings and improving its financial service system to quickly scale its business[14]. - The company adopts a debt-to-income ratio (DTI) policy, rejecting applications with a DTI over 80% unless approved by the board, and ensuring DTI does not exceed 90%[18]. - The company is closely monitoring market conditions and assessing the impact of the pandemic on operations and financial performance[25]. - The company has shifted back to a light-asset business model, enhancing operational resilience in an uncertain market environment[25]. - The company aims to improve operational standards in its two main businesses while seeking new opportunities to expand profit channels[25]. - The company emphasizes strict supply chain quality control to ensure consistent product quality and meet consumer expectations[25]. - The company is committed to reducing inventory pressure and operational costs to enhance competitive advantages in the current economic environment[25]. Financial Performance - The group's revenue for the reporting period was approximately HKD 58,419,000, a decrease of about 1.96% compared to HKD 59,539,000 in the previous year[27]. - The gross profit margin was approximately 4.73%, down by 0.75 percentage points from 5.48% in the previous year[27]. - Administrative and operating expenses increased by approximately 19.28% to HKD 6,477,000 from HKD 5,430,000 in the previous year[27]. - The group reported a loss attributable to owners of approximately HKD 3,713,000, compared to a loss of HKD 1,616,000 in the previous year[27]. - As of September 30, 2022, the group's total assets were approximately HKD 122,925,000, down from HKD 135,124,000 as of March 31, 2022[28]. - The current ratio improved to 4.15:1 as of September 30, 2022, compared to 2.87:1 as of March 31, 2022, indicating a healthy liquidity position[28]. - The group had no bank or other borrowings as of September 30, 2022, resulting in a reported debt ratio of zero[28]. - The group realized a loss of approximately HKD 724,000 from the sale of 800,000 shares of China National Offshore Oil Corporation during the reporting period[42]. - Employee costs (excluding directors' remuneration) were approximately HKD 2,597,000, with the group employing around 22 staff members as of September 30, 2022[41]. - No interim dividend was recommended for the six months ended September 30, 2022, consistent with the previous year[44]. - Revenue for the six months ended September 30, 2022, was HKD 58,419,000, a decrease of 1.9% from HKD 59,539,000 in the same period of 2021[69]. - Gross profit for the same period was HKD 2,763,000, down 15.2% from HKD 3,260,000 year-on-year[69]. - The company reported a loss before tax of HKD 3,713,000, compared to a loss of HKD 1,616,000 in the previous year, indicating a significant increase in losses[69]. - Basic and diluted loss per share for the period was HKD 0.47, compared to HKD 0.21 in the prior year, reflecting a worsening financial performance[69]. - Non-current assets decreased from HKD 25,286,000 as of March 31, 2022, to HKD 861,000 as of September 30, 2022, primarily due to the write-off of receivables[71]. - Current assets increased to HKD 122,064,000 from HKD 109,838,000, driven by an increase in cash and cash equivalents[71]. - Current liabilities decreased from HKD 38,319,000 to HKD 29,424,000, improving the company's liquidity position[71]. - Net asset value as of September 30, 2022, was HKD 93,501,000, down from HKD 96,805,000 as of March 31, 2022[71]. - The company’s total comprehensive loss for the six months ended September 30, 2022, was HKD 54,061,000, compared to a loss of HKD 39,291,000 in the same period of 2021[74]. - The company reported a decrease in the fair value of financial assets measured at fair value through profit or loss, with a net change of HKD 202,000 compared to HKD 791,000 in the previous year[85]. - The company reported a loss of HKD 3,713,000 for the six months ended September 30, 2022, compared to a loss of HKD 1,616,000 for the same period in 2021, representing an increase in loss of approximately 129.5%[90]. - Total employee costs for the period amounted to HKD 3,737,000, up from HKD 3,097,000 in the previous year, indicating a year-over-year increase of about 20.7%[6]. - The cost of goods sold was HKD 55,606,000, slightly down from HKD 56,276,000 in the prior year, reflecting a decrease of approximately 1.2%[6]. - The company did not declare or recommend any dividends for the reporting period, consistent with the previous year[88]. - The average number of ordinary shares outstanding for the calculation of basic loss per share remained at 785,927,000 shares for both periods[90]. - As of September 30, 2022, the company had receivables of HKD 45,000,000, with an expected credit loss provision of HKD 1,271,000[93]. - Trade receivables aged 0 to 30 days amounted to HKD 12,351,000, while those aged 31 to 60 days were HKD 11,536,000, showing a decrease in total trade receivables from HKD 32,072,000 to HKD 23,887,000 year-over-year[94]. - The company has a loan receivable of HKD 25,000,000 with an annual interest rate of 10%, due in May 2023, and another loan of HKD 20,000,000 extended to 36 months from the original due date[94]. - Trade payables aged 0 to 60 days were reported at HKD 23,781,000, down from HKD 31,754,000 in the previous period[95]. - The company has terminated a lease agreement with a total rental of HKD 14,000,000, with no gain or loss recognized from this termination[91]. Governance and Management - The company complied with all provisions of the Corporate Governance Code during the reporting period, with some deviations noted regarding the separation of roles between the chairman and CEO[54]. - The board expressed gratitude to management and employees for their contributions during the reporting period[66].

Financial Performance - The group reported a loss attributable to owners of approximately HKD 12,673,000, compared to a loss of HKD 3,960,000 in the previous year[23]. - Revenue for 2022 was HKD 122,339,000, an increase of 1.9% from HKD 120,057,000 in 2021[197]. - Gross profit for 2022 was HKD 6,128,000, up from HKD 5,303,000 in 2021, reflecting a growth of 15.5%[197]. - The company reported a loss before tax of HKD 12,673,000 in 2022, compared to a loss of HKD 960,000 in 2021, indicating a significant increase in losses[197]. - The company’s total equity decreased to HKD 96,805,000 in 2022 from HKD 108,265,000 in 2021, a decline of 10.6%[199]. - The basic and diluted loss per share for 2022 was HKD 1.61, compared to HKD 0.60 in 2021, indicating a worsening of per-share performance[197]. - Other comprehensive income for the year was HKD 395,000 in 2022, compared to HKD 107,000 in 2021, reflecting an increase of 269.2%[197]. - Total assets decreased to HKD 109,838,000 in 2022 from HKD 69,091,000 in 2021, showing a decline in asset value[199]. - Cash and cash equivalents increased to HKD 34,462,000 in 2022, up from HKD 15,243,000 in 2021, representing a growth of 126.5%[199]. - The company’s net current assets improved to HKD 71,519,000 in 2022 from HKD 50,694,000 in 2021, an increase of 40.9%[199]. - The significant increase in administrative and operating expenses, which were HKD 11,413,000 in 2022 compared to HKD 12,017,000 in 2021[197]. Revenue Sources - The company recorded revenue of HKD 4.5 million from financial services, an increase from HKD 3.1 million in the previous year[13]. - Financial services revenue increased by approximately 44.28% to HKD 4,500,000, up from HKD 3,119,000 in the previous year, primarily due to the expansion of loan services[23]. - The garment procurement revenue was approximately HKD 117,839,000, reflecting a growth of about 0.77% from HKD 116,938,000 in the previous year[23]. - The overall sales performance improved compared to the previous year, despite conservative order placements due to intermittent pandemic outbreaks[12]. Business Challenges - The apparel procurement business faced significant challenges due to the ongoing COVID-19 pandemic, impacting sales and order placements[10]. - The global supply chain crisis led to significant increases in raw material costs and extended transportation times for goods[9]. - The retail environment remains challenging, particularly for non-essential goods like apparel, due to reduced consumer confidence and spending[10]. - The impact of trade tensions and the pandemic has led to cautious ordering behavior among wholesalers[10]. Strategic Initiatives - The company aims to diversify its business by expanding its financial services in both mainland China and Hong Kong, capitalizing on the growing demand in these markets[13]. - The company implemented a new supplier selection process to promote sustainable business growth, focusing on reputable and financially stable suppliers[10]. - The company is focused on enhancing its product offerings and financial service systems to quickly scale its business[13]. - The group maintained a prudent financial management strategy, ensuring sufficient liquidity to support its operations and development plans[26]. Risk Management - The company established a standardized risk management system to address credit risks inherent in its financial services business[15]. - The expected credit loss provision was approximately HKD 3,290,000, compared to a reversal of HKD 3,164,000 in the previous year, mainly due to impairment losses on receivables[23]. - The company recognized an impairment loss of approximately HKD 2.68 million on receivables from a former subsidiary, Best Keen International Limited, as of March 31, 2022[118]. - The assessment of impairment for receivables requires significant management judgment, considering customer credit history and current market conditions[182]. Corporate Governance - The company is committed to high standards of corporate governance and has established various committees, including the Nomination, Remuneration, and Audit Committees[145]. - The board currently has no intention to fill the vacant chairman position, believing collective decision-making will not adversely affect the company[141]. - Independent non-executive directors have a fixed term of three years, automatically renewing unless terminated with a month's notice[144]. - The board believes that the existing internal control system is effective and meets current requirements[166]. Shareholder Information - The company reported a reserve available for distribution to shareholders of HKD 39,346,000 as of March 31, 2022, down from HKD 41,210,000 in 2021[62]. - The board decided not to declare any final dividend for the year ending March 31, 2022, consistent with the previous year[61]. - Major shareholder Mr. Wu Lianghao owns 103,950,000 shares, accounting for 13.23% of the total shares[91]. - The company aims to allow shareholders to share in profits while retaining sufficient reserves for future development as part of its dividend policy[66]. Audit and Compliance - The independent auditor's report confirms that the consolidated financial statements of Hangpin Life Technology Co., Ltd. reflect a true and fair view of the group's financial position as of March 31, 2022, and for the year then ended[178]. - The auditor's opinion is based on compliance with Hong Kong Financial Reporting Standards and the Companies Ordinance disclosure requirements[178]. - The audit procedures included sampling tests of aging analysis and repayment terms from loan agreements[182]. - The total audit service fees paid to the external auditor amounted to HKD 530,000 for the reporting period[163].

Economic Performance - The group reported a significant improvement in operating conditions due to global vaccination efforts, leading to a gradual recovery in retailer performance [8]. - In the first quarter of 2021, China's economy grew by 18.3% year-on-year, but the growth rate slowed to 7.9% in the second quarter [8]. - The International Monetary Fund (IMF) projected global economic growth of 5.9% in 2021 and 4.9% in 2022, with China expected to grow by 8% and 5.6% respectively [12]. - Hong Kong's economy showed a solid recovery in the third quarter, with real GDP expanding by 5.4% year-on-year [13]. Business Strategy - The group adjusted its sales strategy to a low-margin, high-volume approach to mitigate challenges in the garment procurement business [8]. - The group has diversified its business by launching financial services, including asset management and financing leasing, since 2018 [10]. - The company aims to enhance product quality and optimize sales channels in the domestic garment business [12]. - The group is focused on reducing inventory pressure and operational costs while seeking new business opportunities to maximize shareholder returns [13]. - The company plans to allocate the remaining funds from the share placement primarily towards developing existing apparel procurement and general operations [52]. Financial Performance - The group's revenue for the reporting period was approximately HKD 59,539,000, a decrease of about 6.73% compared to HKD 63,683,000 in 2020 [15]. - The garment procurement revenue was approximately HKD 57,283,000, down about 8.72% from HKD 62,758,000 in 2020 [15]. - Financial services revenue increased by approximately 143.89% to HKD 2,256,000, up from HKD 925,000 in 2020, mainly due to the expansion of loan services [15]. - The gross profit margin improved to approximately 5.48%, an increase of about 3.38% from 2.10% in 2020 [15]. - The company reported a loss attributable to shareholders of approximately HKD 1,616,000, an improvement from a loss of HKD 2,059,000 in 2020 [15]. - The company reported a pre-tax loss of HKD 1,616,000 for the six months ended September 30, 2021, compared to a pre-tax loss of HKD 2,059,000 for the same period in 2020, indicating a 21.5% reduction in losses [69][78]. - The company’s basic loss per share for the six months ended September 30, 2021, was HKD 0.00206, compared to HKD 0.00314 for the same period in 2020, reflecting a 34.4% improvement [78]. Assets and Liabilities - As of September 30, 2021, total assets were approximately HKD 145,983,000, up from HKD 126,662,000 as of March 31, 2021 [16]. - The current ratio was 2.58:1, down from 3.76:1 as of March 31, 2021, indicating a decrease in liquidity [16]. - Cash and cash equivalents increased to HKD 33,724,000 as of September 30, 2021, compared to HKD 15,243,000 at the beginning of the period, reflecting a net increase of 121.5% [61]. - The company’s trade receivables increased to HKD 31,732,000 as of September 30, 2021, from HKD 11,838,000 as of March 31, 2021, indicating a significant rise in credit sales [81]. - The company’s total accounts payable as of September 30, 2021, amounted to HKD 31,241,000, a significant increase from HKD 11,606,000 as of March 31, 2021 [82]. Shareholder Information - The board of directors did not recommend any interim dividend for the six months ended September 30, 2021, consistent with the previous year [30]. - As of September 30, 2021, the major shareholder, Shengtu International Limited, held 322,409,404 shares, representing 41.02% of the issued shares [33]. - The total number of issued shares as of September 30, 2021, was 785,927,000 [31]. - The company has a stock option plan adopted on June 2, 2010, with options granted for 5,192,000 shares at an exercise price of HKD 0.854 per share [32]. - The number of issued and fully paid shares increased from 655,927,000 to 785,927,000 during the reporting period [82]. Operational Management - The company maintained a cautious financial management strategy to minimize credit risk and ensure liquidity [18]. - Employee costs for the reporting period amounted to approximately HKD 1,809,000, excluding director remuneration [29]. - The company encourages employee participation in training programs to enhance skills and knowledge [29]. - The company has not made any provisions for income tax during the reporting periods due to the absence of taxable profits [74]. Compliance and Governance - The audit committee consists of three independent non-executive directors, ensuring compliance with financial reporting standards [40]. - The company has complied with all applicable laws and regulations during the reporting period, with no significant violations reported [45]. - The company has not established an internal audit function due to considerations of scale and cost-effectiveness, but the audit committee reviews internal controls annually [39].

Impact of COVID-19 - The group faced significant challenges during the reporting period due to the COVID-19 pandemic, which severely impacted global economic growth and retail performance, particularly in the apparel sector[9]. - The group's apparel procurement business was notably affected, with a cautious ordering approach from wholesalers due to weak market conditions and reduced consumer demand[9]. - The ongoing U.S.-China trade tensions and pandemic-related restrictions have created significant uncertainties for the apparel manufacturing business, leading to a decision to terminate and sell certain operations[12]. - The management team faced operational challenges in overseeing production in China due to travel restrictions and pandemic measures[12]. - The group reported that the retail sales growth in mainland China has turned positive, but the apparel industry has not fully recovered compared to overall retail performance[9]. Financial Performance - The group's revenue for the reporting period was approximately HKD 120,057,000, a decrease of about 1.69% compared to HKD 122,097,000 in the previous year[21]. - The garment procurement revenue was approximately HKD 116,938,000, down by about 1.91% from HKD 119,216,000 in the previous year[21]. - Financial services revenue increased by approximately 8.26% to HKD 3,119,000, up from HKD 2,881,000 in the previous year, mainly due to the expansion of loan services[21]. - The gross profit margin improved to approximately 4.42%, an increase of about 0.52% from 3.90% in the previous year[21]. - Administrative expenses decreased by approximately 51.98% to HKD 11,998,000 from HKD 24,985,000 in the previous year, due to strict control over administrative costs[21]. - The company reported a loss attributable to owners of approximately HKD 3,960,000, significantly improved from a loss of HKD 24,002,000 in the previous year[21]. - The total comprehensive loss for the year was HKD 3,853,000, significantly lower than HKD 22,746,000 in the previous year, indicating improved financial health[172]. - The company reported a significant reduction in expected credit losses, with a reversal of HKD 3,164,000 in 2021 compared to a provision of HKD 4,118,000 in 2020[180]. Strategic Initiatives - The group adjusted its sales strategy to mitigate the crisis by adopting a low-margin, high-volume approach[9]. - The group plans to utilize proceeds from asset sales to further develop its core business, rather than incurring costs from manufacturing apparel products[12]. - The group is focusing on strategic expansion in both mainland China and Hong Kong markets for its financial services, anticipating strong demand in these regions[13]. - The company plans to continue its focus on developing its clothing procurement business and financial services as part of its growth strategy[106]. Corporate Governance - The company has complied with the listing rules regarding the reporting of its financial position, with key financial performance indicators including revenue, gross profit, and shareholder equity[57]. - The board of directors consists of five members, including two executive directors and three independent non-executive directors, ensuring compliance with corporate governance codes[115]. - The company has established a code of conduct for directors regarding securities trading, ensuring adherence to listing rules[114]. - The board has adopted a diversity policy aimed at achieving a diverse board composition, considering factors such as gender, age, and professional experience[129]. - The independent non-executive directors confirmed their independence in accordance with the listing rules[79]. Shareholder Information - The company reported a reserve available for distribution to shareholders of HKD 41,210,000 as of March 31, 2021, down from HKD 62,150,000 in the previous year[60]. - No final dividend was declared for the year ended March 31, 2021, consistent with the previous year[30]. - The company must compensate shareholders for any reasonable expenses incurred due to the board's failure to convene a meeting within the specified timeframe[148]. - Shareholders can request the company to issue notices regarding resolutions to be proposed at the next annual general meeting[152]. Compliance and Audit - The financial statements for the year ending March 31, 2021, were audited by Kaiyuan Xinde Accounting Firm, ensuring transparency and compliance[110]. - The audit committee reviewed the effectiveness of the risk management and internal control systems during the reporting period[137]. - The independent auditor's report confirmed that the consolidated financial statements reflect the group's financial position accurately as of March 31, 2021[154]. - The company ensured compliance with the listing rules regarding the appointment of independent non-executive directors, with at least three independent non-executive directors in place[135]. Environmental and Social Responsibility - The company has actively implemented measures to reduce negative environmental impacts, focusing on waste reduction and energy efficiency[109]. - The company is committed to enhancing its environmental performance and will regularly review its environmental policies[109].

Revenue Performance - For the six months ended September 30, 2020, the group's revenue was approximately HKD 63,683,000, an increase of about 6.4% compared to HKD 59,725,000 in 2019[15]. - The revenue from garment procurement was approximately HKD 62,758,000, representing a growth of about 10.17% from HKD 56,963,000 in 2019[15]. - Revenue from financial services decreased by approximately 66.51% to HKD 925,000, down from HKD 2,762,000 in 2019, primarily due to the sale of the P2P financial business[15]. - Revenue for the six months ended September 30, 2020, was HKD 63,683,000, an increase of 6.5% compared to HKD 59,725,000 in the same period of 2019[56]. - The company had total unallocated other income and gains of HKD 1,706,000 for the six months ended September 30, 2020, compared to HKD 574,000 in the same period of 2019[70][74]. Profitability and Loss - The group reported a loss attributable to owners of the company of approximately HKD 2,059,000, compared to a loss of HKD 5,742,000 in 2019[15]. - Gross profit decreased to HKD 2,153,000, down 37.2% from HKD 3,430,000 year-on-year[56]. - The company reported a net loss attributable to shareholders of HKD 2,059,000, compared to a loss of HKD 5,742,000 in the previous year, representing a 64.1% improvement[56]. - The operating loss for the six months ended September 30, 2020, was HKD 2,034,000, compared to an operating loss of HKD 5,717,000 for the same period in 2019, representing a 64.5% improvement[70][72]. - The company reported a pre-tax loss of HKD 2,059,000 for the six months ended September 30, 2020, down from a pre-tax loss of HKD 5,742,000 in the prior year, indicating a 64.1% reduction in losses[70][81]. Expenses and Cost Management - Administrative expenses were approximately HKD 5,793,000, a reduction of about 19.56% from HKD 7,202,000 in 2019, due to strict cost control measures[15]. - The cost of goods sold for the six months ended September 30, 2020, was HKD 61,530,000, compared to HKD 55,528,000 in the same period of 2019, reflecting an increase of 10.8%[77]. - The company reported a total employee cost of HKD 2,545,000 for the six months ended September 30, 2020, down from HKD 3,828,000 in the same period of 2019, representing a decrease of 33.5%[77]. Assets and Liabilities - As of September 30, 2020, the total assets of the group were approximately HKD 130,963,000, an increase from HKD 111,736,000 as of March 31, 2020[16]. - The cash and cash equivalents amounted to approximately HKD 26,968,000, up from HKD 21,736,000 as of March 31, 2020[16]. - The current ratio was 2.14:1 as of September 30, 2020, down from 4.91:1 as of March 31, 2020[16]. - The debt-to-equity ratio was 1.46% as of September 30, 2020, compared to 0.94% as of March 31, 2020, indicating a healthy level of leverage[16]. - Total assets decreased slightly to HKD 93,036,000 from HKD 94,894,000, while total liabilities increased to HKD 37,927,000 from HKD 16,842,000[58]. Business Strategy and Future Outlook - The group is focusing on diversifying its business and expanding its financial services in both mainland China and Hong Kong markets[10]. - The group aims to enhance the operational standards of its two main businesses while seeking new opportunities to expand profit channels[13]. - The company plans to continue focusing on product development and market expansion strategies to enhance future performance[64]. Shareholder Information - As of September 30, 2020, the total number of issued shares was 655,927,000, with major shareholders holding significant stakes: Shengtu International Limited and Mr. Zhi Hua each held 49.15%[34]. - Mr. Wu Lianghao held 15.85% of the shares, amounting to 103,950,000 shares, while Mr. Wu Zilun and Ms. Qiu Yuzhen each held 7.65%, totaling 50,173,000 shares[34]. - The average number of ordinary shares outstanding for the calculation of basic loss per share was 655,927,000 for both periods[81]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial statements for the six months ending September 30, 2020[43]. - The company confirmed compliance with all corporate governance code provisions during the reporting period[42]. - There were no significant legal or regulatory violations affecting the group's business operations during the reporting period[48]. Financing and Capital Management - A financing agreement was established on October 6, 2020, for a revolving loan facility of up to HKD 20,000,000[25]. - The company did not purchase, redeem, or sell any of its listed securities during the reporting period[41]. - No significant capital expenditures were made during the reporting period, and there were no major capital commitments as of September 30, 2020[20]. - The group has no contingent liabilities as of September 30, 2020[24]. Employee Information - The group employed approximately 9 employees as of September 30, 2020, with total employee costs (excluding directors' remuneration) of about HKD 1,257,000[28].

Financial Performance - The group's revenue for the reporting period was approximately HKD 122,097,000, a decrease of about 34.2% compared to HKD 185,668,000 in 2019[19]. - The apparel procurement revenue was approximately HKD 119,216,000, down approximately 30.35% from HKD 171,179,000 in 2019[19]. - The financial services revenue decreased by approximately 80.12% to HKD 2,881,000 from HKD 14,489,000 in 2019, primarily due to the sale of the P2P financial business[19]. - The gross profit margin was approximately 3.90%, a decrease of about 68.4% from 12.34% in 2019[19]. - The company reported a loss attributable to owners of approximately HKD 24,002,000 for the year, compared to a profit of HKD 476,000 in 2019[19]. - Administrative expenses increased by approximately 42.25% to HKD 24,985,000 from HKD 17,564,000 in 2019[19]. - The company reported a comprehensive financial performance reflecting its financial position as of March 31, 2020, in accordance with Hong Kong Financial Reporting Standards[164]. - The independent auditor confirmed that the financial statements present a true and fair view of the group's financial status and performance for the year ended March 31, 2020[164]. Economic Environment - The global economy is projected to contract by 3% in 2020 due to the COVID-19 pandemic, which is worse than the 2008-2009 financial crisis[12]. - China's GDP is expected to shrink by 6.8% in the first quarter of 2020, marking a significant economic downturn[12]. - Hong Kong's economic growth forecast for 2020 is projected to be between -4% and -7% due to the ongoing impact of the pandemic[12]. Business Strategy and Operations - The company is focusing on diversifying its business by expanding into financial services, including asset management and financing leasing[11]. - The company aims to enhance its operational efficiency by closing underperforming subsidiaries and negotiating rent reductions[8]. - The company is committed to controlling costs to improve its competitive advantage in a weak market environment[8]. - The company is actively responding to the economic challenges posed by the pandemic and is assessing its financial situation continuously[37]. - The company is committed to innovation and technology development to improve its product offerings and operational efficiency[38][45]. - The company aims to retain sufficient reserves for future development while allowing shareholders to share in profits through its dividend policy[63]. Shareholder Information - The company reported a reserve available for distribution to shareholders of HKD 62,150,000 as of March 31, 2020, down from HKD 91,637,000 in 2019[60]. - The board decided not to declare any final dividend for the year ended March 31, 2020, consistent with the previous year[27]. - Major shareholders include Shengtu International Limited with 49.15% and Mr. Wu Lianghao with 15.85% of shares[89]. - The top five customers accounted for 97.59% of total revenue, with the largest customer contributing approximately 45.05%[104]. Corporate Governance - The company has a management team with extensive experience in various sectors, including finance, technology, and garment manufacturing[38][39][42][45]. - The roles of the chairman and the CEO are separated, with the chairman being Mr. Zhi Hua and the CEO being Mr. Lin Ji Yang since September 13, 2017[128]. - The board of directors consists of six members, including three executive directors and three independent non-executive directors[122]. - The company has established a code of conduct for directors' securities trading, which complies with the standard code for listed issuers[121]. - The company has complied with the listing rules regarding the appointment of independent non-executive directors[141]. Risk Management - The company has faced various risks and uncertainties, which are described throughout the report, particularly in the financial risk section[57]. - The audit committee reviewed the effectiveness of risk management and internal control systems[143]. - The board is responsible for maintaining a robust internal control system to safeguard the company's assets and shareholders' interests[151]. Employee Information - The total number of employees as of March 31, 2020, was approximately 9, with total salaries and related costs amounting to HKD 13,951,000, up from HKD 7,964,000 in 2019[28]. - The company has ensured that all directors participated in continuous professional development to enhance their knowledge and skills[147]. Environmental Commitment - The company is committed to environmental sustainability and has implemented measures to reduce negative environmental impacts[114]. - The company will upload its independent environmental, social, and governance report within three months after the annual report publication[113].