香 港 交 易 及 結 算 所 有 限 公 司、香 港 聯 合 交 易 所 有 限 公 司 及 香 港 中 央 結 算 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 確表示概不就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。 Sterling Group Holdings Limited 美臻集團控股有限公司* （於 開 曼 群 島 註 冊 成 立 之 有 限 公 司） （股 份 代 號：1825） 截至二零二四年三月三十一日止年度的 經審核年度業績公告 | 財務摘要 | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | 截至三月三十一日止年度 | | | | | | | | | | | | | 二零二四年 | | 二零二三年 | | | 經營業績 | （千 港 | 元 ...

為遵守上市規則第14A.34條，於 本 公 告 日 期，本 公 司 正 與 三 泰 及JPO商討落實該 協 議 的 主 要 條 款，以 終 止 第 一 份 支 持 函 並 載 列(i)供 應 存 貨；及(ii)提供財務協助 的 條 款 及 條 件，包 括 利 率 及 可 供 確 保 三 泰 與JPO妥善履行其於該協議項下責任 的 抵 押 品。有 關 第 一 份 支 持 函 的 進 一 步 詳 情，請 參 閱 該 公 告。 遵守上市發行人董事進行證券交易的標準守則（「標 準 守 則」） 末期股息 – 32 – 我 們 認 為，綜 合 財 務 報 表 已 根 據 香 港 會 計 師 公 會（「香港會計師公會」）頒佈的香 港財務報告準則（「香港財務報告準則」）真實而公允地反映 貴集團於二零二四 年三月三十一日的綜合財務狀況以及截至該日止年度的綜合財務表現及綜合 現 金 流 量，並 已 遵 照 香 港 公 司 條 例 的 披 露 要 求 妥 為 編 製。 應用香港會計準則第1號及香港財務報告準則實務說明第2號之修訂會計政策的披 露的影響 香港財務報告準則實務說明第2號作出重大性判斷（「實 務 說 明」）亦 經 修 訂 ...

Financial Performance - The company's revenue for the six months ended September 30, 2023, was approximately HKD 322,182,000, a decrease of 4.6% compared to HKD 337,736,000 in the same period of 2022[5]. - Gross profit for the same period was HKD 51,105,000, with a gross margin of 15.9%, slightly up from 15.6% in the previous year[5]. - Operating profit decreased to HKD 7,161,000 from HKD 11,328,000 year-on-year, resulting in a net loss of HKD 7,960,000 compared to a profit of HKD 11,328,000 in the prior period[5][7]. - The company reported a net loss attributable to shareholders of HKD 7,960 for the six months ended September 30, 2023, compared to a profit of HKD 11,328 in 2022[77]. - Basic and diluted loss per share for the period was HKD (3.32), down from earnings of HKD 5.66 in the previous year[79]. Financing Costs - The company experienced a significant increase in financing costs, rising approximately 83.7% to HKD 8,082,000 from HKD 4,399,000 in the previous year[7]. - Financing costs rose by 83.7% to approximately HKD 8,082,000, compared to approximately HKD 4,399,000 in the same period last year, mainly due to rising interest rates[15]. - The actual interest rates for bank loans ranged from 5.38% to 7.69% as of September 30, 2023, compared to 1.70% to 7.70% as of March 31, 2023[102]. Assets and Liabilities - The total assets as of September 30, 2023, were HKD 287,673,000, a decrease from HKD 301,574,000 as of March 31, 2023[5]. - The asset-liability ratio as of September 30, 2023, was approximately 315.2%, up from 309.8% as of March 31, 2023, due to net losses attributed to expected credit losses on trade and other receivables[22]. - The company's current ratio was 0.77, slightly down from 0.80, indicating a decrease in liquidity[5]. - The company's net asset value decreased to HKD 40,324,000 as of September 30, 2023, from HKD 47,003,000 as of March 31, 2023[47]. - The total financial liabilities were HKD 239,389,000 as of September 30, 2023, down from HKD 246,153,000 as of March 31, 2023, indicating a reduction of 2.8%[108]. Cash Flow - The net cash generated from operating activities for the six months ended September 30, 2023, was HKD 19,396,000, a decrease of 70.4% compared to HKD 65,422,000 in the same period of 2022[19]. - Cash and cash equivalents decreased by HKD 6,867,000, ending at HKD 15,138,000 compared to HKD 31,494,000 at the end of the previous period[19]. - The company’s cash and cash equivalents decreased to HKD 15,138,000 as of September 30, 2023, from HKD 20,851,000 as of March 31, 2023, a decline of 27.5%[108]. Revenue Sources - For the six months ended September 30, 2023, the group's revenue was approximately HKD 322,182,000, with 99.4% coming from the United States, a slight decrease from HKD 337,736,000 in the same period of 2022[10]. - Outerwear contributed HKD 165,874,000 to revenue, with a sales volume increase of approximately 10.9%[9]. - Revenue from customer contracts for the six months ended September 30, 2023, was HKD 322,182, a decrease of 4.2% compared to HKD 337,736 in 2022[64]. Cost Management - The company maintained a focus on cost control, reducing sales and distribution expenses significantly from HKD 18,652,000 to HKD 12,914,000[6]. - Sales and distribution costs decreased by 30.8% to approximately HKD 12,914,000, down from approximately HKD 18,652,000 in the previous year[13]. - General and administrative expenses increased by 12.9% to approximately HKD 26,526,000, up from approximately HKD 23,495,000, with employee costs rising due to performance bonuses[14]. Employee and Management - As of September 30, 2023, the company employed approximately 1,364 full-time employees, a decrease from 1,444 employees as of March 31, 2023[24]. - The total compensation for key management personnel increased to HKD 6,910,000 for the six months ended September 30, 2023, compared to HKD 5,132,000 for the same period in 2022, representing a rise of 34.7%[106]. Corporate Governance - The company has adopted a standard code for securities trading, confirming compliance by all directors during the review period[29]. - The company has adhered to all applicable corporate governance codes, except for the separation of the roles of Chairman and CEO[30]. Market Outlook - The group anticipates that the shipment volume for the second half of the fiscal year ending March 31, 2024, will be lower than the same period last year due to intense competition in holiday sales[20]. - The company expects continued growth in sales performance in the U.S. retail market over the next four years[94].

香港交易及結算所有限公司、香港聯合交易所有限公司及香港中央結算有限 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 確表示概不就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。 Sterling Group Holdings Limited 美 臻 集 團 控 股 有 限 公 司* （於開曼群島註冊成立之有限公司） （股份代號：1825） 截 至 二 零 二 三 年 九 月 三 十 日 止 六 個 月 中 期 業 績 公 告 財務摘要 截至九月 三十日止六個月 二零二三年 二零二二年 經營業績（千港元） 收入 322,182 337,736 毛利 51,105 52,789 毛利率 15.9% 15.6% 銷售及分銷成本 (12,914) (18,652) 一般及行政開支 (26,526) (23,495) 經營溢利 7,161 11,328 貿易及其他應收款項確認預期信貸虧損淨額 （「預期信貸虧損」） (15,121) – 期內（虧損）╱溢利 (7,960) 11,328 ...

Financial Performance - The company reported a revenue of HKD 623,433,000 for the fiscal year ending March 31, 2023, representing a significant increase of 36.7% compared to HKD 455,970,000 in the previous year[6]. - Gross profit for the same period was HKD 107,184,000, with a gross margin of 17.19%, up from 13.39% in the prior year[6]. - The net profit for the year was HKD 19,927,000, a turnaround from a net loss of HKD 38,847,000 in the previous year, resulting in a net profit margin of 3.2%[6][8]. - The company achieved an EBITDA of HKD 47,103,000, compared to HKD 9,656,000 in the previous year, indicating a strong operational recovery[6]. - The company's revenue increased by approximately 36.7% from about HKD 455,970,000 in the previous year to approximately HKD 623,433,000[15]. - Gross profit margin improved significantly from 13.4% to 17.2%, indicating a notable enhancement in profitability[15]. - Net profit for the reporting period was approximately HKD 19,927,000, compared to a net loss of about HKD 38,847,000 in the previous year[15]. - Operating profit for the reporting period was approximately HKD 22,028,000, a recovery from an operating loss of HKD 1,174,000 in the previous year[16]. - EBITDA for the reporting period was HKD 45,002,000, a significant increase from a comparable EBITDA loss of approximately HKD 28,017,000 in the previous year[16]. Customer and Market Dynamics - The largest customer contributed to a 49.1% increase in sales compared to the previous year, highlighting the importance of this client to the company's revenue[8]. - The company is optimistic about maintaining stable sales from its largest customer in the upcoming fiscal year, despite potential slight declines compared to the strong performance reported[8]. - The company has diversified its customer base, reducing reliance on a single customer that previously accounted for over 95% of sales[10]. - The majority of revenue, approximately 97.9%, came from the United States, totaling HKD 609,905,000, compared to HKD 436,514,000 in the previous year[21]. - The group reported a rebound in sales revenue of approximately 68% compared to two years ago, but does not plan to achieve further sales growth for the fiscal year ending March 31, 2024[32]. - The group expects to maintain sales revenue similar to the previous year based on current orders from its largest customer, a prominent U.S. brand[32]. Operational Efficiency and Cost Management - The company has implemented cost-saving measures to enhance operational efficiency in its factories located in Panyu, China, and Sri Lanka[10]. - Sales and distribution costs rose by approximately 28.5% to about HKD 31,943,000, primarily due to increased tariffs and freight costs[25]. - Financing costs increased by approximately 147.0% to about HKD 11,205,000, mainly due to a sharp rise in interest rates[27]. - Other income for the reporting period was approximately HKD 10,655,000, up from HKD 7,661,000 in the previous year, driven by government subsidies and interest income[23]. Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange regulations throughout the reporting period[58]. - The board consists of a diverse group of directors, including three independent non-executive directors, ensuring compliance with independence guidelines[67]. - The company has implemented measures to assess and monitor its corporate culture, including employee feedback and turnover rates[57]. - The board has confirmed that all directors have adhered to the securities trading guidelines as stipulated by the listing rules[61]. - The company has a strong commitment to enhancing corporate governance and internal control systems to protect shareholder interests[56]. - The board has achieved its diversity goals and confirmed the independence of all independent non-executive directors[68]. - The company has conducted its annual general meeting and adhered to the principles and regulations set forth in the corporate governance code[65]. - The board of directors has established a three-year service contract for all executive directors, which can be terminated with a written notice of at least three months[69]. Risk Management and Internal Controls - The company has established a risk management and internal control system to minimize risks, with risk assessments conducted semi-annually[112]. - The board believes that the risk management and internal control systems are effective and sufficient[115]. - The group has engaged an independent professional internal control consultant to review its major business processes and internal control systems[115]. - The group has no internal audit department but will review the need for one at least annually[115]. - The group is exposed to foreign currency risk due to foreign currency transactions and borrowings, which it manages and monitors[131]. - The group will consider hedging against significant interest rate fluctuations as part of its risk management strategy[133]. Employee and Operational Structure - As of March 31, 2023, the group employed approximately 1,444 full-time employees, an increase from approximately 1,381 full-time employees as of March 31, 2022[36]. - The group has completed restructuring actions initiated in 2020, including downsizing its Hong Kong office and relocating sales functions to its factory in China, to reduce management costs and better respond to sales fluctuations[32]. - There are no significant labor disputes or strikes that disrupted operations during the year[169]. Shareholder Engagement and Financial Management - The company is committed to engaging with shareholders through annual general meetings to address their concerns and questions[104]. - The board will consider various factors, including the group's financial performance and cash flow, when deciding on dividend declarations[107]. - The company has no predetermined dividend payout ratio, and the declaration and payment of dividends are at the board's discretion[108]. - The group did not recommend paying a final dividend for the year ended March 31, 2023[123]. - The company has adopted a dividend policy effective from January 1, 2019, aiming to maintain sufficient reserves for future development while providing returns to shareholders[106]. Strategic Initiatives and Future Outlook - The company has actively expanded its customer base and product offerings, attracting several new clients, including a prestigious American fashion brand[14]. - The company plans to enhance its digital marketing efforts, with an investment of $K million to increase brand awareness and customer reach[46]. - The management team emphasized the importance of sustainability initiatives, aiming for a J% reduction in carbon footprint by the end of the fiscal year[46]. - Recent acquisitions are expected to enhance operational efficiency, projected to save the company $G million annually[46]. - The R&D budget has been increased by H%, focusing on developing new technologies and products[46]. Audit and Financial Reporting - The audit committee held four meetings during the fiscal year ending March 31, 2023, with attendance as follows: Mr. Cai Wei Xuan (2/2), Mr. Zeng Hao Xian (4/4), Ms. Zhang Ling Ling (4/4), and Mr. Chen Ji Xuan (2/2)[79]. - The audit committee reviewed the group's financial information, including accounting policies and compliance with accounting standards and listing rules[78]. - The independent auditor's report confirms that the consolidated financial statements fairly present the financial position of the group as of March 31, 2023, in accordance with Hong Kong Financial Reporting Standards[200].

香港交易及結算所有限公司、香港聯合交易所有限公司及香港中央結算有限 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。 Sterling Group Holdings Limited 美臻集團控股有限公司* （於開曼群島註冊成立之有限公司） （股份代號：1825） 截 至 二 零 二 三 年 三 月 三 十 一 日 止 年 度 的 經 審 核 年 度 業 績 公 告 財務摘要 截至三月三十一日止年度 二零二三年 二零二二年 經營業績（千港元） 收入 623,433 455,970 毛利 107,184 61,069 毛利率 17.19% 13.39% 銷售及分銷成本 (31,943) (24,863) 一般及行政費用 (49,061) (50,814) 經營溢利╱（虧損） 22,028 (1,174) 應收款項預期信貸虧損撥備 (2,101) (37,673) 年度溢利╱（虧損）淨額 19,927 (38,847) ...

Financial Performance - Revenue for the six months ended September 30, 2022, increased by 37.2% to HKD 337,736,000 from HKD 246,156,000 in the same period last year[7]. - Gross profit rose by 53.6% to HKD 52,789,000, with a gross margin of 15.6%, up from 14.0%[6]. - Net profit surged to HKD 11,328,000, compared to HKD 329,000 in the previous year, reflecting a strong recovery[8]. - EBITDA for the period was HKD 20,854,000, significantly higher than HKD 9,648,000 in the same period last year[8]. - Revenue for the six months ended September 30, 2022, was HKD 337,736,000, representing a 37.1% increase from HKD 246,156,000 in the same period of 2021[40]. - Gross profit increased to HKD 52,789,000, up 53.8% from HKD 34,366,000 year-on-year[40]. - Net profit for the period was HKD 11,328,000, a significant increase from HKD 329,000 in the previous year[40]. - The company reported a total comprehensive income of HKD 9,084,000 for the period, compared to a loss of HKD 24,000 in the previous year[40]. - The basic and diluted earnings per share for the six months ended September 30, 2022, were HKD 5.66, compared to HKD 0.06 for the same period in 2021, indicating a substantial increase[72]. Expenses and Costs - Sales and distribution expenses increased by 61.9% to HKD 18,652,000, primarily due to air freight costs incurred to meet delivery schedules[8]. - Interest expenses rose by 89.7% to HKD 4,399,000 due to increased rates and sales volume[8]. - General and administrative expenses decreased by 4.3% to approximately HKD 23,495,000, down from HKD 24,550,000, with employee costs also declining due to a reduction in administrative staff[15]. - Financing costs increased by 89.7% to approximately HKD 4,399,000 from HKD 2,319,000, attributed to rising interest rates during the period[16]. - Employee costs, including directors' remuneration, decreased to HKD 46,118,000 in the first half of 2022 from HKD 49,664,000 in the same period of 2021, reflecting a reduction of approximately 5.1%[66]. Assets and Liabilities - The company reported a current ratio of 0.74 and a quick ratio of 0.57 as of September 30, 2022[6]. - The company’s total assets decreased to HKD 306,753,000 from HKD 324,238,000 as of March 31, 2022[6]. - Cash and cash equivalents at the end of the period were HKD 31,494,000, down from HKD 33,391,000 at the beginning of the period[44]. - Inventory increased by approximately 12.6% to HKD 45,071,000 from HKD 40,024,000, driven by anticipated sales growth in the coming months[18]. - Trade receivables decreased to HKD 108,429,000 as of September 30, 2022, from HKD 124,311,000 as of March 31, 2022, a decline of about 12.8%[86]. - Trade payables rose to HKD 49,048,000 as of September 30, 2022, up from HKD 41,606,000 as of March 31, 2022, representing an increase of approximately 17.8%[90]. - Bank borrowings decreased to HKD 122,261,000 as of September 30, 2022, from HKD 161,863,000 as of March 31, 2022, a reduction of about 24.3%[91]. - The total financial liabilities were HKD 266,414,000 as of September 30, 2022, compared to HKD 292,962,000 as of March 31, 2022[100]. Revenue Breakdown - The apparel product categories contributing to revenue included outerwear (HKD 149,539,000), bottoms (HKD 125,808,000), tops (HKD 26,399,000), and others (HKD 35,990,000)[10]. - Revenue from garment sales for the six months ended September 30, 2022, was HKD 337,736,000, an increase of 37.1% compared to HKD 246,156,000 for the same period in 2021[58]. - The primary market for sales was the United States, generating HKD 322,352,000, which represents 95.4% of total revenue[58]. - Revenue from the US accounted for 95.4% of total revenue, increasing from 90.8% in the previous year, while revenue from Italy decreased significantly from 6.0% to 1.2%[11]. Corporate Governance and Shareholder Information - The board confirms compliance with the corporate governance code during the review period[30]. - The company did not recommend the distribution of an interim dividend to shareholders for the review period[37]. - The major shareholder, Moonlight Global Holdings Limited, holds 40,100,000 shares, representing 20.05% of the company[34]. - No shares of the company have been purchased, sold, or redeemed by the company or its subsidiaries since the listing date on October 19, 2018[28]. - The company has not granted any options under the share option scheme since its adoption[35]. Future Outlook - The company expects a rebound in profits for the second half of the fiscal year ending March 31, 2023, although the increase may be lower than the first half due to seasonal shipping patterns[20]. - The company anticipates continued growth in sales performance over the next four years, driven by a strong recovery in the U.S. retail market[84]. - The company plans to continue expanding its market presence in the United States, Italy, and the United Kingdom, focusing on apparel manufacturing and trading[45].

Financial Performance - Total sales increased by 22.8% from HKD 371,276,000 to HKD 455,970,000 for the fiscal year ending March 31, 2022[10]. - Gross profit rose to HKD 61,069,000, with a gross margin of 13.39%, compared to 11.81% in the previous year[7]. - EBITDA before expected credit losses improved to HKD 9,656,000 from a loss of HKD 7,266,000 in the prior year[11]. - The company reported a net loss of HKD 38,847,000, compared to a loss of HKD 33,253,000 in the previous year[7]. - Cash and bank balances decreased to HKD 33,391,000 from HKD 63,853,000 year-on-year[7]. - The ratio of net loss to sales improved slightly to -8.5% from -9.0%[7]. - For the fiscal year ending March 31, 2022, the group's revenue increased by approximately 22.8% to about HKD 455,970,000 from approximately HKD 371,276,000 in the previous year[15]. - The gross profit margin improved from 11.8% in the previous year to 13.4% in the review year, primarily due to effective cost control[15]. - The operating loss (before expected credit loss provisions) for the review year was HKD 1,174,000, compared to a loss of HKD 25,939,000 in the previous year, indicating an improvement of approximately HKD 30,164,000[16]. - The net loss for the review year was approximately HKD 38,847,000, compared to a loss of about HKD 33,253,000 in the previous year, largely due to significant expected credit loss provisions of HKD 37,673,000[16]. - EBITDA (excluding expected credit losses) for the review year was approximately HKD 9,656,000, compared to a comparable EBITDA loss of HKD 7,266,000 in the previous year[17]. Customer and Market Dynamics - The company aims to exceed pre-pandemic sales levels based on current order books, despite potential retail demand declines due to inflation and geopolitical concerns[10]. - Sales to the largest customer increased by 15.8%, but their share of total sales decreased from 74.7% to 70.3%[10]. - The majority of revenue (95.7%) came from the United States, totaling HKD 436,514,000, while Italy contributed HKD 17,708,000 (3.9%) and the UK contributed HKD 569,000 (0.1%) in the review year[21]. - The revenue contribution by product category showed that outerwear generated HKD 165,506,000, bottoms HKD 175,695,000, tops HKD 50,699,000, and other products HKD 63,415,000 in the review year[20]. Operational Efficiency - The company has streamlined operations and maintained optimal capacity at its Sri Lanka factory to mitigate seasonal demand fluctuations[11]. - The company has implemented cost control measures since early 2020, resulting in monthly savings of at least USD 1 million in rent and employee costs[34]. - The group continues to implement strategies to enhance market penetration across different regions to reduce reliance on specific markets, addressing economic conditions affecting consumer confidence and purchasing habits[131]. Governance and Management - The company has a strong governance structure with independent non-executive directors providing oversight on strategy, policy formulation, and resource allocation[50]. - The company is focused on expanding its market presence and enhancing product development through strategic initiatives led by its experienced management team[44][45]. - The board includes members with extensive experience in compliance, finance, and corporate governance, ensuring robust oversight of the company's operations[50]. - The company has established three board committees: the audit committee, the remuneration committee, and the nomination committee, to enhance governance[79]. - The board believes that all directors have committed sufficient time and attention to their roles, contributing valuable insights and characteristics to the company[75]. - The company has adopted a board diversity policy effective June 1, 2019, considering various factors such as skills, experience, and gender in board appointments[92]. Risk Management - The group has established a risk management system to identify, assess, and monitor specific financial, operational, and compliance risks, with evaluations submitted to the audit committee semi-annually[118]. - The group continues to monitor customer credit risk and will only extend credit to customers with good credit records, ensuring adequate impairment losses are recognized for uncollectible amounts[132]. - The group is exposed to foreign currency risk due to foreign currency transactions and borrowings, and it actively manages and monitors this risk to ensure timely and effective measures are taken[137]. - The board believes that the risk management and internal control systems are effective and sufficient, with ongoing evaluations based on recommendations from the audit committee and management[121]. Employee and Labor Relations - The group employed 1,381 full-time employees across Hong Kong, mainland China, and Sri Lanka as of March 31, 2022[174]. - The group contributes 5% of employee income to the Mandatory Provident Fund in Hong Kong, capped at HKD 1,500 per month[174]. - There were no difficulties in recruiting experienced skilled employees during the reporting period[174]. - The group has not experienced any significant labor disputes or strikes that disrupted operations during the reporting period[174]. Financial Stability and Capital Management - The company has no capital commitments as of March 31, 2022[41]. - The group aims to maintain sufficient levels of cash and cash equivalents to meet operational needs and reduce cash flow volatility, ensuring compliance with relevant loan covenants[135]. - The group has not paid any interim dividends for the six months ended September 30, 2021, reflecting a focus on financial stability[128]. - The group has not reported any serious violations of laws and regulations that would have a significant impact on its business and operations as of March 31, 2022[143]. Shareholder Relations - The group did not recommend any final dividend for the year ended March 31, 2022, maintaining a conservative approach to shareholder returns[129]. - The company has a significant shareholder, Moonlight Global Holdings Limited, holding 40,100,000 shares, representing 20.05% of the total shares[173]. - Wang Meihui, the Executive Director and CEO, holds 40,100,000 shares through spousal rights, also accounting for 20.05%[165]. - There are no arrangements in place for directors to benefit from acquiring shares of the company or any other corporate entity[167].

Revenue and Profitability - Revenue increased by 26.7% to approximately HKD 246,156,000 compared to HKD 194,272,000 in the same period last year[9] - Net profit for the period was HKD 329,000, compared to HKD 572,000 in the same period last year, influenced by prior government COVID-19 relief[11] - The company reported a net profit of HKD 329,000 for the six months ended September 30, 2021, compared to HKD 572,000 in the prior year, indicating a decline of 42.5%[43] - Gross profit for the same period was HKD 34,366,000, slightly down from HKD 34,525,000, resulting in a gross margin of approximately 13.9%[43] - The operating profit for the six months ended September 30, 2021, was HKD 329,000, a decrease of 42.5% compared to HKD 572,000 for the same period in 2020[71] Expenses and Cost Management - Gross profit margin decreased to 14.0% from 17.8% in the same period last year, reflecting lower trade margins from new customers[10] - EBITDA for the period was HKD 9,648,000, down from HKD 12,647,000 in the previous year[8] - Interest expenses decreased by approximately 43.1% to HKD 2,319,000 from HKD 4,077,000 in the same period last year[10] - Sales and distribution expenses reduced by approximately 11.1% to HKD 11,522,000 from HKD 12,969,000 in the previous year[10] - General and administrative expenses decreased by 3.4% to approximately HKD 24,550,000 from HKD 25,424,000 in the previous year[17] - The company implemented cost-cutting measures, including salary reductions and layoffs, which began to yield results during the reporting period[10] Assets and Liabilities - Total assets increased to HKD 444,862,000 from HKD 384,578,000 at the end of the previous reporting period[8] - Current ratio improved to 0.92 from 0.79 in the previous reporting period[8] - Current liabilities rose to HKD 346,465,000 from HKD 320,683,000, leading to a decrease in net current liabilities from HKD 66,829,000 to HKD 28,289,000[44] - The company’s debt-to-equity ratio was 333.5%, a decrease from 415.8% on March 31, 2021, primarily due to the waiver of shareholder loans amounting to USD 1.5 million during the review period[25] - Trade payables rose to HKD 45,585,000 as of September 30, 2021, compared to HKD 23,935,000 as of March 31, 2021, indicating an increase of 90.5%[89] Cash Flow and Financing - Cash and cash equivalents as of September 30, 2021, were approximately HKD 53,766,000, down from HKD 63,853,000 as of March 31, 2021[19] - The company reported a financing cash inflow of HKD 17,199,000 for the period, down from HKD 41,742,000 in the previous year[48] - The group obtained new bank loans amounting to HKD 344,388,000 for the six months ended September 30, 2021, compared to HKD 161,702,000 for the same period in 2020, and repaid HKD 352,337,000 during the same period[90] - The actual interest rates for the bank loans range from 0.51% to 2.37% per annum, down from 0.51% to 4.75% as of March 31, 2021[90] Inventory and Receivables - Inventory decreased by approximately 34.7% to about HKD 23,407,000 from HKD 35,849,000 as of March 31, 2021[19] - Trade receivables increased significantly to HKD 243,681,000 as of September 30, 2021, up 52.7% from HKD 159,523,000 as of March 31, 2021[84] - The provision for expected credit losses on trade receivables remained unchanged at HKD 16,920,000 as of both September 30, 2021, and March 31, 2021[86] - The aging analysis of trade receivables showed that amounts overdue by more than 365 days increased to HKD 48,830,000 as of September 30, 2021, compared to HKD 23,614,000 as of March 31, 2021[86] Shareholder and Corporate Governance - Shareholder loans of USD 1,500,000 were waived to strengthen the company's capital base during the reporting period[12] - The company confirmed compliance with the corporate governance code as per the listing rules during the review period[33] - The major shareholder, Moonlight Global Holdings Limited, holds 40,100,000 shares, representing 20.05% of the company[37] Operational Insights - The group anticipates that sales will significantly improve in the fiscal year 2021/2022, despite potential supply chain challenges and increased transportation costs[22] - The group plans to enhance logistics management to minimize disruptions and ensure timely delivery of products[21] - The company has not encountered any significant difficulties or liquidity issues due to foreign exchange fluctuations, despite facing foreign exchange risks primarily from the Euro, Renminbi, and Sri Lankan Rupee[29] - The company has not faced any significant labor disputes or strikes during the review period, ensuring operational efficiency[28] Other Financial Information - The company has not authorized any significant investments or acquisitions as of the mid-term report date[27] - The company has not reported any capital commitments or contingent liabilities as of September 30, 2021[30] - The company has not engaged in any hedging activities but will monitor exchange rate trends for potential future needs[29] - The company did not declare an interim dividend for the review period[40] - There were no significant events after the reporting period that would impact the company's operations or financial performance[41]

Financial Performance - Revenue for the year ended March 31, 2021, was HKD 371,276,000, a decrease of 37.1% from HKD 590,873,000 in 2020[5] - Gross profit for the same period was HKD 43,849,000, with a gross margin of 11.8%, down from 18.8% in the previous year[5] - The company reported a loss before tax of HKD 35,280,000, compared to a loss of HKD 59,471,000 in 2020[5] - Revenue for the fiscal year ended March 31, 2021, decreased by approximately 37.2% to about HKD 371,276,000 from approximately HKD 590,873,000 for the previous year[14] - Gross profit margin declined from 18.8% to 11.8% due to intermittent factory shutdowns during the first and second quarters[14] - The company reported a loss of approximately HKD 33,253,000 for the fiscal year, an improvement from a loss of approximately HKD 58,638,000 in the previous year[15] - EBITDA loss for the fiscal year was approximately HKD 14,580,000, compared to a loss of approximately HKD 30,450,000 in the previous year[16] - Total sales volume for the year was approximately 2,048,000 garments, down from approximately 2,750,600 garments in the previous year, primarily due to COVID-19[19] - Other income for the fiscal year was approximately HKD 11,513,000, up from HKD 3,830,000 in the previous year, mainly due to government subsidies[20] - Financing costs decreased by approximately 39.1% to about HKD 6,033,000 from approximately HKD 9,905,000 in the previous year[25] Assets and Liabilities - Total assets increased to HKD 384,578,000 from HKD 373,517,000 year-on-year[6] - Cash and bank balances rose to HKD 63,853,000, up from HKD 47,836,000 in the previous year[6] - Cash and cash equivalents increased to approximately HKD 63,853,000 from approximately HKD 47,836,000 in the previous year, primarily due to shareholder loans[27] - The company's bank borrowings amounted to approximately HKD 237.02 million as of March 31, 2021, compared to approximately HKD 231.44 million on March 31, 2020[35] - The company's debt-to-equity ratio was approximately 415.8% as of March 31, 2021, compared to 408.2% on March 31, 2020[36] Workforce and Cost Management - The company plans to reduce its workforce in China from 600 to approximately 100 employees by November 2021 to cut costs[8] - The company plans to reduce its workforce at the Panyu factory from about 300 employees to approximately 100, aiming to save about HKD 20 million annually[31] - The group employed approximately 1,584 full-time employees, a decrease from approximately 2,279 full-time employees as of March 31, 2020[40] - The group implemented a 30% salary reduction for all employees and directors for a three-month period starting April 1, 2020, and conducted layoffs to reduce personnel costs in Hong Kong[40] Strategic Initiatives - The company aims to diversify revenue by launching a direct-to-consumer business through an American apparel brand, targeting younger demographics[9] - The company is launching a sub-brand, JP by J. Peterman, to enter the online direct-to-consumer market, aiming to diversify its revenue base[32] - The company anticipates a shift towards more casual clothing orders due to changes in workplace attire preferences post-pandemic[31] - The company has identified a significant increase in e-commerce, with its share of total retail sales growing over three times compared to the previous five years[30] - The company plans to expand its product range in response to changing market demands post-pandemic[31] Corporate Governance - The company has adopted and complied with all provisions of the Corporate Governance Code as set out in the Main Board Listing Rules of the Hong Kong Stock Exchange[64] - The board is committed to developing and maintaining a robust corporate governance and effective internal control system, which is crucial for enhancing corporate value and accountability[64] - The company has a strong management team with extensive experience in various sectors, including procurement and finance, ensuring effective resource allocation and strategic decision-making[61][62] - The independent non-executive directors provide independent opinions on the group's strategy, policy formulation, and resource allocation, enhancing corporate governance[56][60] - The company has established various committees, including the Audit Committee and Remuneration Committee, to ensure accountability and effective management[56][60] Risk Management - The board confirmed its responsibility to establish and maintain effective risk management and internal control systems, with risk assessments conducted semi-annually[121] - The company has engaged an independent internal control consultant to review its key business processes and internal control systems, reporting findings to the audit committee[122] - The board and audit committee believe that the risk management and internal control systems are effective and sufficient[124] - The company has established an insider information policy to ensure compliance with the Securities and Futures Ordinance regarding the handling and disclosure of insider information[125] Shareholder Relations - Shareholder loans amounting to HKD 34,000,000 have been waived by the controlling shareholders to strengthen the company's financial position[9] - The company does not recommend declaring a final dividend for the fiscal year ended March 31, 2021[18] - The board will consider various factors, including the financial condition of the company and group, when deciding on dividend declarations, with no predetermined payout ratio[114] - The company has maintained sufficient public float as required by the Listing Rules throughout the year and up to the report date[200] Compliance and Regulations - The company has complied with the disclosure requirements of Chapter 14A of the Listing Rules regarding related party transactions[196] - The independent non-executive directors confirmed that the related party transactions were conducted under normal commercial terms and in the overall interest of shareholders[194] - The company has established multiple management systems and measures to ensure compliance with relevant laws and regulations[146]