Financial Performance - For the year ended December 31, 2023, the company achieved total sales revenue of approximately HK$4,200.7 million, a decrease of about 6.5% compared to approximately HK$4,492.8 million for the year ended December 31, 2022[7][15]. - The overall gross profit margin improved to approximately 23.9% for the year 2023, compared to approximately 18.9% for 2022, with gross profit increasing by about 18.1% to approximately HK$1,003.6 million[9][19]. - The net profit for the year ended December 31, 2023, was approximately HK$349.4 million, representing an increase of about 23.2% from approximately HK$283.5 million for the year ended December 31, 2022[28]. - For the year ended 31 December 2023, the Group achieved an EBITDA of approximately HK$883.6 million, an increase of about 15.4% compared to approximately HK$766.0 million for the year ended 31 December 2022[32]. - The Group's total gross profit for the year ended 31 December 2023 was approximately HK$1,003.6 million, up from approximately HK$849.9 million for the year ended 31 December 2022, reflecting improved capacity utilization and economies of scale[50]. - Other income for the year ended 31 December 2023 was approximately HK$51.4 million, an increase of about 4.0% from approximately HK$49.4 million for the year ended 31 December 2022[52]. Working Capital and Debt - The company’s net working capital increased to approximately HK$778.3 million as of December 31, 2023, compared to approximately HK$178.1 million as of December 31, 2022[29]. - As of 31 December 2023, the Group's net debt was approximately HK$498.8 million, a decrease from approximately HK$941.7 million as of 31 December 2022, resulting in a net debt to equity ratio of about 15.0%[32]. Expenses and Costs - The finance costs rose by approximately 53.3% from approximately HK$75.8 million in 2022 to approximately HK$116.2 million in 2023, primarily due to an increase in overall market lending interest rates[25]. - The company’s administrative expenses represented approximately 7.2% of total revenue in 2023, up from approximately 6.4% in 2022, attributed to increased employee benefit expenses[22]. Research and Development - The company’s R&D expenses accounted for approximately 2.0% of total revenue in 2023, down from approximately 2.3% in 2022, reflecting a strategic focus on innovation in lingerie and sportswear[24]. - The Group's research and development costs represented approximately 2.0% of total revenue for the year ended 31 December 2023, down from approximately 2.3% in the previous year[54]. - The Group is committed to enhancing its innovation and R&D capabilities to meet the growing demand for cutting-edge sports apparel and fabric products, positioning itself for future growth opportunities[75]. - The Group's commitment to innovation and technological advancements is aimed at enhancing research and development capabilities to meet increasing customer demand for innovative products[104]. Production and Operations - The company focused on optimizing production efficiencies and cost controls, which contributed to improved financial performance in its production sites in Sri Lanka[12][14]. - The company recorded a mid-single digit decrease in overall sales revenue from its Sri Lanka production sites for the year 2023, despite the textile and apparel export value in Sri Lanka declining by approximately 18.8%[12][14]. - The overall annual designed production capacities of elastic fabric, elastic webbing, and lace were approximately 250.7 million meters, 1,933.0 million meters, and 45.0 million meters, respectively, with a balanced production capacity distribution of 50:50 between China and overseas[76][78]. - The Group has implemented further enhancements in operational efficiencies at its overseas manufacturing sites in Vietnam and Sri Lanka to better serve customer interests[76][78]. Dividends - The Group declared a final dividend of HK$11.38 cents per ordinary share for the year ended 31 December 2023, compared to HK$4.22 cents per ordinary share for the year ended 31 December 2022[42]. - The proposed final dividend is set at HK$11.38 per ordinary share for the year ended December 31, 2023, compared to HK$4.22 per ordinary share for the previous year[114]. - The Group intends to maintain a long-term, stable dividend payout ratio of not less than 20% of the Group's distributable profit for the year, ensuring equitable returns for shareholders[81]. - An interim dividend of HK$5.3 cents per ordinary share was paid on November 30, 2023, down from HK$7.28 cents per ordinary share in 2022[100]. - An interim dividend of HK$5.3 cents per ordinary share was paid to shareholders on November 30, 2023, down from HK$7.28 cents per ordinary share in 2022[112]. Employee and Shareholder Information - The Group employed a total of 9,604 full-time employees as of 31 December 2023, an increase from 9,050 employees as of 31 December 2022[40]. - The Group's remuneration policy remains unchanged, providing competitive compensation packages based on employee performance, skills, and knowledge, along with additional benefits[70]. - The Group has introduced new share-based incentive schemes for employees, including executive and independent non-executive Directors, with revised service agreements[159]. - The remuneration of directors is determined based on their responsibilities, performance, and the group's overall performance[166]. Market Outlook - Looking ahead to 2024, the Group anticipates a stable global inflation environment and potential reductions in federal interest rates by the U.S. Federal Reserve, which may impact economic growth and investor confidence[72]. - The Group anticipates a global GDP growth of 3.1% by the end of 2024, indicating a gradual economic recovery despite current challenges[103]. - The anticipated political transitions and geopolitical tensions may impact global market stability and investor confidence, posing risks to economic growth[102]. Compliance and Governance - The Company is compliant with relevant laws and regulations in the jurisdictions it operates, including the Cayman Islands, China, Hong Kong, Vietnam, Sri Lanka, and the United States[137]. - The Group's operations are primarily conducted through subsidiaries in the PRC, Hong Kong, Vietnam, Sri Lanka, and the U.S., ensuring compliance with relevant laws and regulations[135]. - The Group's financial risk management objectives and policies are detailed in Note 36 of the consolidated financial statements, highlighting the importance of financial stability[131]. - The company confirmed compliance with non-competition agreements by its major shareholders for the year ended December 31, 2023[190]. - No directors had interests in any competing business with the company or its subsidiaries during the year[165]. Customer and Supplier Relationships - Sales to the Group's five largest customers accounted for approximately 39.8% of total sales for the year, with the largest customer contributing approximately 12.0%[145]. - Purchases from the Group's five largest suppliers accounted for approximately 33.9% of total purchases for the year, with the largest supplier contributing approximately 16.3%[145]. - The Group maintains stable relationships with customers and suppliers to ensure product competitiveness and material quality[138]. - The Group closely monitors market trends and customer demands to produce competitive products[138]. Shareholding Structure - As of December 31, 2023, Mr. Lu Yuguang holds a long position of 637,500,000 shares, representing approximately 61.30% of the company's total shares[174][182]. - The company’s major shareholders include FMR LLC with 103,876,900 shares (9.99%) and Mega Brilliant Enterprises Limited with 75,000,000 shares (7.21%)[182]. - The total shareholding of Mr. Lu Yuguang, including his controlled corporation, amounts to 640,500,000 shares, or 61.59%[195]. - 78,292,000 ordinary shares were held by Ms. Zheng, the Chief Operating Officer, and her controlled corporation, with Mr. Zhang, the CEO, deemed interested in these shares[196]. - 37,500,000 ordinary shares were held by Lakefront Capital Investment Limited, wholly owned by Mr. Wu Shaolun, who is also deemed interested in these shares[197].

Financial Performance - The group's revenue for the year ended December 31, 2023, was approximately HKD 4,200.7 million, a decrease of about 6.5% compared to the year ended December 31, 2022[2]. - The gross profit margin for the year ended December 31, 2023, was approximately 23.9%, an increase of about 5.0 percentage points from the previous year[2]. - The net profit margin for the year ended December 31, 2023, was approximately 8.3%, an increase of about 2.0 percentage points from the previous year[2]. - The group's profit for the year ended December 31, 2023, was approximately HKD 349.4 million, an increase of about 23.3% compared to the previous year[2]. - The EBITDA for the year ended December 31, 2023, was approximately HKD 883.6 million, an increase of about 15.4% from approximately HKD 766.0 million in the previous year[2]. - Basic earnings per share for the year ended December 31, 2023, were approximately HKD 33.36, an increase of about 15.9% from approximately HKD 28.77 in the previous year[2]. - The overall gross profit margin increased to 23.9% for the year ended December 31, 2023, compared to 18.9% for the previous year[47]. - The company reported a segment profit of HKD 507,053,000 for the year, compared to HKD 439,947,000 in the previous year, marking an increase of about 15.3%[139]. - The net profit for the fiscal year ending December 31, 2023, was approximately HKD 349.4 million, an increase of about 23.2% from approximately HKD 283.5 million in 2022, with a net profit margin of about 8.3%[188]. Revenue Breakdown - Revenue from the sale of elastic fabrics and laces for customer A was HKD 397.2 million, down from HKD 533.7 million in the previous year[16]. - Revenue from the sale of elastic bands for customer B was HKD 438.2 million, down from HKD 492.6 million in the previous year[16]. - Revenue from the mainland China market was HKD 1,466,545 thousand, down 10.5% from HKD 1,639,411 thousand in 2022[119]. - Revenue from Vietnam increased to HKD 890,740 thousand, up 6.3% from HKD 838,010 thousand in 2022[119]. - The company’s operations in mainland China generated revenue of HKD 861,642,000 in 2023, down from HKD 912,809,000 in 2022, a decrease of approximately 5.6%[142]. - The company’s operations in Hong Kong saw revenue decline to HKD 851,596,000 in 2023 from HKD 1,015,613,000 in 2022, a decrease of about 16.1%[142]. - The company’s revenue from Sri Lanka decreased to HKD 709,178,000 in 2023 from HKD 850,102,000 in 2022, representing a decline of approximately 16.6%[142]. Dividends and Shareholder Returns - The proposed final dividend per ordinary share for the year ended December 31, 2023, is HKD 11.38, compared to HKD 4.22 in the previous year[2]. - The company proposed a final dividend of 11.38 HKD cents per share, totaling approximately 118.3 million HKD, subject to shareholder approval[40]. - The interim dividend paid on November 30, 2023, was HKD 0.053 per ordinary share, down from HKD 0.0728 per ordinary share in 2022[77]. - The company plans to maintain a long-term stable dividend policy, distributing no less than 20% of the available profit for the year to shareholders[76]. - The board has proposed a final dividend of HKD 0.1138 per ordinary share for the year ended December 31, 2023, compared to HKD 0.0422 per share for the year ended December 31, 2022[89]. Costs and Expenses - Financing costs rose by approximately 53.3% to about 116.2 million HKD for the year ended December 31, 2023, primarily due to an increase in market borrowing rates[51]. - The cost of materials accounted for approximately 41.4% of total revenue for the year ended December 31, 2022, decreasing to about 35.6% in 2023[48]. - The company’s administrative expenses as a percentage of total revenue increased to approximately 7.2% for the year ended December 31, 2023, from 6.4% in the previous year[50]. - The total sales cost for the fiscal year ending December 31, 2023, was approximately HKD 3,197.1 million, a reduction of about HKD 445.8 million or 12.2% from the previous year[183]. Cash Flow and Working Capital - The company experienced a net cash outflow of approximately 872.0 million HKD from financing activities for the year ended December 31, 2023, compared to 377.5 million HKD in the previous year[55]. - For the fiscal year ending December 31, 2023, the net cash generated from operating activities was approximately HKD 999.7 million, an increase from HKD 773.6 million for the fiscal year ending December 31, 2022[63]. - The net cash used in investing activities for the fiscal year ending December 31, 2023, was approximately HKD 238.7 million, compared to HKD 174.2 million for the fiscal year ending December 31, 2022[64]. - The company's net working capital as of December 31, 2023, was approximately HKD 778.3 million, an increase of about HKD 600.2 million from approximately HKD 178.1 million in 2022[189]. Market Outlook and Strategy - The global economic outlook for 2024 is cautiously optimistic, with an expected GDP growth of 3.1% by the end of the year, despite challenges in China's economic recovery[84]. - The company anticipates an increase in sales orders from various customer segments, reflecting enhanced confidence in economic recovery[84]. - The company is actively evaluating the feasibility of expanding manufacturing capacity in Vietnam, capitalizing on the country's strong economic growth and competitive labor costs[72]. - The company plans to prepare for market recovery and seize new growth opportunities in the future[85]. - The company’s international business strategy has shown resilience and strength, with a focus on innovation, sustainability, and cost-risk management[171]. Employee and Compensation - As of December 31, 2023, the group employed a total of 9,604 full-time employees, an increase from 9,050 employees as of December 31, 2022, representing a growth of approximately 6.1%[198]. - The group continues to provide competitive compensation packages, including salaries, bonuses, allowances, and retirement benefits, based on employee performance, skills, and knowledge[199]. - The group has no significant changes in its compensation policy and will continue to offer regular training and additional benefits such as housing, meals, and medical insurance[199]. Research and Development - Research and development expenses decreased to HKD 85,320 thousand, down 15.7% from HKD 101,178 thousand in the previous year[105]. - Research and development expenses accounted for approximately 2.0% of total revenue for the fiscal year ending December 31, 2023, down from about 2.3% in 2022[187]. - The company emphasizes that innovation and technological advancement are key to ensuring future growth and success, with a strategic focus on enhancing R&D capabilities to meet the increasing demand for cutting-edge sports apparel and fabric products[85].

Financial Performance - The profit attributable to owners of the Company amounted to approximately HK$138.6 million for the Reporting Period, representing a decrease of approximately 17.7% compared to the six months ended 30 June 2022[33]. - The overall sales revenue and gross profit for the six months ended 30 June 2023 were HK$1,906.7 million and HK$401.0 million, respectively, representing decreases of 16.3% and 12.1% compared to the same period in 2022[46]. - Basic earnings per share for the six months ended June 30, 2023, was approximately HK$13.33, a decrease of about 17.7% from HK$16.19 for the same period in 2022[73]. - Revenue for the six months ended June 30, 2023, amounted to approximately HK$1,906.7 million, representing a decrease of approximately HK$371.8 million or 16.3% from HK$2,278.5 million for the same period in 2022[57][58]. - Gross profit decreased from approximately HK$456.1 million in the first half of 2022 to approximately HK$401.0 million in the first half of 2023[89]. - Net profit for the six months ended June 30, 2023, amounted to approximately HK$118.7 million, representing a decrease of approximately 29.3% compared to HK$167.9 million for the same period in 2022[125]. - The overall gross profit margin slightly increased by about 1 percentage point to 21.0% during the first half of 2023[46]. - The Group recorded a net profit margin of approximately 6.2% for the six months ended June 30, 2023, a decrease of approximately 1.2 percentage points from approximately 7.4% for the same period in 2022[125]. Revenue Breakdown - Sales revenue from lingerie elastic fabric totaled around HK$528.6 million, a decline of approximately HK$145.4 million or 21.6% compared to the same period in 2022[60]. - Revenue from elastic webbing amounted to approximately HK$387.0 million, indicating a decline of approximately HK$132.3 million or 25.5% compared to the same period in 2022[60]. - For the six months ended June 30, 2023, the Group's sales revenue from sportswear and apparel elastic fabric declined to HK$958.6 million, a decrease of approximately 8.4% from HK$1,046.7 million for the same period in 2022[114]. - Revenue from elastic fabric was HK$1,487.2 million, accounting for 78.0% of total revenue, while revenue from lingerie decreased by 21.6% to HK$528.6 million[85][86]. Liabilities and Equity - As of June 30, 2023, the company reported non-current liabilities of approximately HK$493,048,000, an increase from HK$233,264,000 as of December 31, 2022[22]. - The company's bank and other borrowings rose significantly to HK$367,722,000 from HK$105,515,000, indicating a substantial increase in leverage[22]. - The total equity attributable to owners of the company decreased to HK$3,029,486,000 from HK$3,040,215,000, reflecting a decline in shareholder equity[22]. - The net debt position as of June 30, 2023, was approximately HK$753.2 million, down from HK$941.7 million as of December 31, 2022, resulting in a net gearing ratio of 24.2%[101][104]. - The net asset liability ratio decreased to 24.2% as of June 30, 2023, down from 30.0% as of December 31, 2022[74]. Cash Flow and Expenses - The Company achieved stable net cash generated from operating activities of approximately HK$385.9 million for the six months ended June 30, 2023, compared to approximately HK$274.8 million for the same period in 2022[45]. - Net cash used in investing activities was approximately HK$59.2 million for the six months ended June 30, 2023, down from approximately HK$198.9 million for the same period in 2022[128]. - Finance costs increased by approximately 97.7% to HK$59.1 million for the six months ended June 30, 2023, compared to approximately HK$29.9 million for the same period in 2022[126]. - Selling and distribution expenses represented approximately 4.3% of total revenue for the six months ended June 30, 2023, up from 4.1% in the same period of 2022[93]. - Research and development costs accounted for approximately 2.1% of total revenue for the six months ended June 30, 2023, down from 2.4% in the same period of 2022[93]. Corporate Governance and Shareholder Information - The company has complied with the Corporate Governance Code throughout the six-month period ended June 30, 2023[8]. - The company did not purchase, redeem, or sell any of its listed securities during the six months ended June 30, 2023[17]. - The company has a controlling shareholder, Mr. Lu, who holds approximately 61.59% of the issued share capital[9]. - A total of 637,500,000 ordinary shares are held by Grandview Capital Investment Limited, wholly owned by Mr. Lu Yuguang, who is deemed to be interested in these shares[200]. - The Audit Committee consists of three independent non-executive directors who reviewed the financial statements and internal control procedures[197]. Market Conditions and Future Outlook - The textile and garment sector faced significant challenges due to market uncertainties and high inventories, leading to conservative order placements by international brand customers[42]. - Exports to the U.S. and Europe (excluding Russia) saw declines of 17.9% and 6.8%, respectively, during the first half of 2023 compared to the same period last year[43]. - The global GDP growth forecast for 2023 was downgraded to 2.8%, with a slight improvement expected in 2024 at 3.0%[141]. - The Group expects apparel brand customers to replenish their inventories more actively in the latter half of 2023, indicating a potential increase in demand for apparel products[143]. - The Group's order book is expected to return to a normal level in the coming months, reflecting a slow but steady recovery of the global economy[143]. Operational Efficiency and Capacity - The Group is committed to enhancing operational efficiencies at its overseas manufacturing sites in Vietnam and Sri Lanka, with plans for further capacity addition in Vietnam in the second half of 2023[171][173]. - The Group observed a contraction in sales revenue from elastic fabric sales to sportswear and apparel customers in the first half of 2023, but anticipates a recovery due to strong industry fundamentals[144]. - The capacity utilization of core manufacturing sites is expected to improve as sales orders have recently shown positive trends[147]. - The Group plans to strengthen its innovation and research and development capabilities to meet rising customer demand for innovative sportswear and apparel products[144]. Shareholder Returns - The Company declared an interim dividend of HK5.3 cents per ordinary share for the six months ended 30 June 2023, expected to be paid on 30 November 2023[193]. - A new Share Option Scheme and Share Award Scheme were adopted on June 27, 2023, which took effect on June 29, 2023, following approval from the Stock Exchange[185].

Financial Performance - For the six months ended June 30, 2023, revenue was approximately HKD 1,906.7 million, a decrease of about HKD 371.8 million or approximately 16.3% compared to HKD 2,278.5 million for the same period in 2022[31]. - The company's operating profit before tax was HKD 188.8 million for the six months ended June 30, 2023[14]. - The company's net profit attributable to shareholders for the six months ended June 30, 2023, was approximately HKD 138.6 million, a decrease of about 17.7% from HKD 168.4 million in the same period in 2022[61][72]. - The group's EBITDA for the six months ended June 30, 2023, was approximately HKD 387.7 million, down from HKD 403.1 million for the same period in 2022[41]. - The gross profit for the same period was approximately HKD 401.0 million, down about 12.1% from HKD 456.1 million, with a gross margin of approximately 21.0% compared to 20.0% in the previous year[94]. - The basic earnings per share for the six months ended June 30, 2023, was approximately HKD 0.1333, down about 17.7% from HKD 0.1619 for the same period in 2022[94]. Revenue Breakdown - Sales revenue for the largest business segment, sportswear and elastic fabric, decreased from HKD 1,046.7 million for the six months ended June 30, 2022, to HKD 958.6 million for the same period in 2023, a decline of approximately 8.4%[32]. - Revenue from elastic fabric sales reached HKD 1,487,165,000, while lace sales contributed HKD 32,578,000, totaling HKD 1,519,743,000 for the period[108]. - Sales revenue from elastic fabric materials for the underwear segment totaled approximately HKD 528.6 million, a decrease of about HKD 145.4 million or 21.6% compared to the same period in 2022[193]. - Revenue from elastic bands for the same six-month period was approximately HKD 387.0 million, down about HKD 132.3 million or 25.5% year-on-year[193]. Expenses and Costs - For the six months ended June 30, 2023, the group's cost of sales was approximately HKD 1,505.7 million, a decrease of about HKD 316.6 million or approximately 17.4% compared to the same period in 2022[33]. - The income tax expense for the six months ended June 30, 2023, was approximately HKD 19.3 million, compared to HKD 20.9 million for the same period in 2022, with an effective tax rate of approximately 14.0%[39]. - Administrative expenses accounted for approximately 6.5% of total revenue for the six months ended June 30, 2023, up from approximately 6.3% for the same period in 2022, primarily due to a decrease in business scale[199]. - Research and development expenses represented approximately 2.1% of total revenue for the six months ended June 30, 2023, down from approximately 2.4% for the same period in 2022[200]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.053 per ordinary share for the six months ended June 30, 2023, compared to HKD 0.0728 per ordinary share for the same period in 2022[20]. - The company declared a final dividend of HKD 43,880,000, compared to HKD 122,697,000 in the previous year, reflecting a decrease of approximately 64.2%[117]. Assets and Liabilities - The net asset liability ratio decreased to 24.2% as of June 30, 2023, down from 30.0% as of December 31, 2022[28]. - The group recorded a net debt of approximately HKD 753.2 million as of June 30, 2023, compared to HKD 941.7 million as of December 31, 2022[94]. - As of June 30, 2023, total assets decreased to HKD 3,600,836,000 from HKD 3,371,711,000 as of December 31, 2022, reflecting a decline of approximately 6.7%[99]. - Current liabilities decreased significantly to HKD 2,155,634,000 from HKD 2,900,945,000, a reduction of about 25.6%[99]. - The total amount of trade receivables and notes receivable as of June 30, 2023, was HKD 590.2 million, compared to HKD 654.7 million as of December 31, 2022[151]. Market Conditions and Challenges - The company faced significant challenges in the global business environment due to rising interest rates, persistent inflation, and geopolitical tensions[60]. - The International Monetary Fund has revised the global GDP growth forecast for 2023 down to 2.8%, indicating a challenging economic environment[48]. - The company’s subsidiaries in Sri Lanka recorded a decline in sales during the first half of 2023 due to the negative impact of global economic slowdown[30]. - The company has continued to face challenges in the market, leading to conservative order placements by international brand customers since the second half of 2022[125]. Operational Efficiency and Strategies - The group plans to further enhance operational efficiency in overseas production bases in Vietnam and Sri Lanka to align with customer interests[178]. - The group anticipates a recovery in order volumes in the coming months as apparel brand customers are expected to actively replenish inventory[177]. - The group has maintained a cautious approach to capital investments while focusing on international business strategies as a core advantage[178]. - The company has implemented strategies to manage high inventory levels amid ongoing market uncertainties[125].

Dividend and Financial Performance - The final dividend declared is HK4.22 cents per ordinary share for the year ended 31 December 2022, down from HK11.8 cents for the previous year[1]. - As of December 31, 2022, the company's distributable reserves amounted to approximately HK$687.8 million, with a proposed final dividend of approximately HK$43.9 million[32]. - In 2022, the overall sales revenue of the company decreased by 6.3% to approximately HK$4,492.8 million, compared to HK$4,792.7 million in 2021[194]. - The gross profit margin for the year ended December 31, 2022, was approximately 18.9%, a decrease of 4.3 percentage points from 23.2% in 2021[194]. - The net gearing ratio as of December 31, 2022, was 30.0%, compared to 28.9% in 2021, indicating a slight increase in leverage[195]. - The company generated net cash from operating activities of approximately HK$773.6 million for the year ended December 31, 2022, an increase of approximately HK$250.9 million from HK$522.7 million in 2021[195]. Economic Outlook - Global GDP is projected to fall to 2.9% in 2023 before rising to 3.1% in 2024, below the historical average of 3.8% from 2000 to 2019[1]. - Global GDP for 2022 was estimated at 3.4%, down 280 basis points from 6.2% in 2021, indicating a significant economic slowdown[186]. - Global inflation was reported to be 8.8% in 2022, leading to contractionary monetary policies adopted by most central banks[186]. - The U.S. federal funds target rate was raised 9 times consecutively in 2022, reaching between 4.75% and 5.00%, a 15-year high[186]. - The global inflation rate reached a record high of 8.8% in 2022, impacting consumer confidence and retail sales[191]. - The U.S. GDP decreased from 5.9% in 2021 to 2.0% in 2022, while the Euro area GDP fell from 5.3% to 3.5% in the same period[191]. Market and Industry Trends - Retail sentiment in China is expected to strengthen as COVID-related restrictions are relaxed, leading to a notable recovery in the sportswear and apparel market[4]. - Despite a contraction in sales revenue from elastic fabric to sportswear customers in 2022, the fundamentals of the sportswear and apparel industry remain strong, indicating potential long-term growth[11]. - The textile and garment sector faced challenges due to global economic headwinds, leading to reduced inventory levels and conservative order placements by international brand customers in the second half of 2022[54]. - Certain brand customers remained financially strong, but most retailers were expected to continue inventory optimization throughout the first half of 2023[54]. - The export value of textile products from China in the second half of 2022 was US$71.6 billion, representing a notable drop of US$5 billion or 6.5% compared to the same period in 2021[174]. - Export of textile and apparel products to the U.S. and Europe decreased by approximately 14% in the second half of 2022 compared to the corresponding period in 2021[174]. Operational Strategies - The Group plans to enhance operational efficiencies at its overseas manufacturing sites in Vietnam and Sri Lanka to better serve customer interests[3]. - The Group is committed to innovation and technological advancement to meet rising customer demand for innovative sportswear and apparel products[11]. - Best Pacific is committed to maintaining healthy cash flows and has implemented various measures, including cost controls and production efficiencies optimization[169]. - The company is focused on maintaining financial stability amid economic challenges by improving production efficiency and managing costs[176]. - The company is exploring potential adjustments to product pricing in collaboration with customers and partner brands[176]. - The international manufacturing footprint is a core competitive advantage, enabling the company to provide sustainable supply-chain solutions[177]. Supply Chain and Customer Relations - The Group is focused on maintaining strong relationships with supply chain partners to ensure quality products and services amid economic challenges[9]. - Recent improvements in inventory levels of core U.S. apparel brand customers are noted, with expectations for proactive replenishment in the second half of 2023[1]. - Sales to the group's five largest customers accounted for approximately 42.5% of total sales for the year, with the largest customer contributing approximately 13.5%[35]. - Purchases from the group's five largest suppliers represented approximately 35.1% of total purchases, with the largest supplier accounting for approximately 15.9%[35]. Investments and Future Plans - The company plans to continue investing in the second phase of its production facility in Panala, Sri Lanka, to achieve economies of scale[57]. - The company plans to expand production capacities in Vietnam in response to increased customer interest due to tightened geopolitics[199]. - The company will continue its investment in the development of phase two of its production facility in Sri Lanka as planned[200]. Employee and Community Engagement - The company emphasizes employee development through competitive compensation, performance evaluation systems, and internal promotion opportunities[30]. - The group made charitable and other donations amounting to approximately HK$659,000 during the year ended December 31, 2022[35].

Revenue Performance - For the year ended December 31, 2022, the total revenue from the sale of elastic fabric, lace, and elastic webbing was HKD 4,492,790,000, a decrease from HKD 4,792,661,000 in 2021, representing a decline of approximately 6.3%[12][15] - Total revenue for the year ended December 31, 2022, was HKD 3,171.73 million, a decrease from HKD 3,347.61 million in 2021, representing a decline of approximately 5.25%[36] - Total sales revenue for the year ended December 31, 2022, decreased by approximately 6.3% to about HKD 4,492.8 million, compared to HKD 4,792.7 million for the year ended December 31, 2021[57] - The group's revenue for the year ended December 31, 2022, was approximately HKD 4,492.8 million, a decrease of about 6.3% compared to the previous year[175] Profitability - The net profit attributable to the owners of the company for the year was HKD 299,199,000, down from HKD 401,794,000 in 2021, indicating a decrease of approximately 25.5%[26] - The company's operating profit for the year was HKD 343,161,000, compared to HKD 535,063,000 in the previous year, showing a decline of approximately 35.9%[15] - The overall gross profit decreased from approximately HKD 1,111.8 million in 2021 to about HKD 849.9 million in 2022, with a gross profit margin decline of approximately 4.3 percentage points[68] - The net profit margin for the year ended December 31, 2022, was approximately 6.3%, a decrease of about 2.1 percentage points from the previous year[175] Dividends - The company proposed a final dividend of HKD 0.0422 per share, totaling approximately HKD 43.9 million, subject to shareholder approval at the upcoming annual general meeting[25] - The company declared an interim dividend of HKD 0.0728 per share for 2022, compared to HKD 0.075 per share in 2021, reflecting a decrease of approximately 2.67%[42] - The board has proposed a final dividend of HKD 0.0422 per share for the year ended December 31, 2022, down from HKD 0.118 per share in 2021[154] Costs and Expenses - The cost of sales totaled HKD 3,642.9 million in 2022, a decrease of HKD 37.9 million or 1.0% compared to HKD 3,680.8 million in 2021[65] - Raw material costs accounted for 51.1% of total sales costs in 2022, up from 50.0% in 2021, reflecting a rise in material prices[65] - Selling and distribution expenses represented approximately 4.1% of total revenue in 2022, a slight decrease from 4.2% in 2021, due to better cost management[71] - Administrative expenses decreased to about 6.4% of total revenue in 2022 from 7.0% in 2021, attributed to improved cost management[72] Assets and Liabilities - Non-current liabilities decreased significantly from HKD 820,229,000 in 2021 to HKD 233,264,000 in 2022, a reduction of approximately 71.5%[5] - The total equity of the company as of December 31, 2022, was HKD 3,138,447,000, down from HKD 3,373,246,000 in 2021, reflecting a decrease of about 6.9%[5] - The company's total liabilities decreased to HKD 2,098.20 million in 2022 from HKD 2,160.40 million in 2021, a reduction of about 2.87%[30] - Total assets less current liabilities amounted to HKD 3,371.7 million as of December 31, 2022, compared to HKD 4,193.5 million in the previous year[178] Employee Costs - The company reported a total employee cost of HKD 862,819,000 for 2022, a decrease from HKD 918,704,000 in 2021, representing a reduction of approximately 6.1%[19] - The company employed a total of 9,050 full-time employees as of December 31, 2022, compared to 8,957 employees as of December 31, 2021[114] Cash Flow and Investments - Operating cash flow for the year ended December 31, 2022, was approximately HKD 773.6 million, an increase of about HKD 250.9 million from HKD 522.7 million for the year ended December 31, 2021[58] - The net cash used in investing activities was approximately HKD 174.2 million in 2022, down from HKD 414.3 million in 2021[107] - The company continues to invest approximately HKD 387.2 million in property, plant, and equipment to support long-term growth[107] Market Conditions - The macroeconomic environment is expected to remain challenging in 2023, with continued inventory optimization by most retailers[51] - The global inflation rate was reported at 8.8% in 2022, impacting overall economic conditions and consumer confidence[80] - The group expects global GDP growth to slow to 2.9% in 2023, with a rebound to 3.1% in 2024, below the historical average of 3.8%[147] Future Outlook - The company plans to continue focusing on cost control and optimizing production efficiency to combat current economic challenges[52] - The company plans to expand its production capacity in Hai Duong Province, Vietnam, due to increased customer interest[87] - The company plans to continue investing in innovation and R&D to meet the growing demand for innovative sportswear and apparel products[121]

Financial Performance - Best Pacific reported a sales revenue of approximately HK$2,278.5 million for the six months ended June 30, 2022, representing a growth of approximately 9.7% compared to the same period in 2021[13]. - Overall sales revenue for the first half of 2022 reached approximately HK$2,278.5 million, representing a growth of about 9.7% compared to the same period in 2021[15]. - Revenue for the six months ended June 30, 2022, was HK$2,278,466, an increase of 9.8% compared to HK$2,076,272 for the same period in 2021[160]. - Profit for the period attributable to owners of the Company was HK$168,384, down from HK$175,230 in the same period last year, representing a decrease of 3.8%[161]. - Basic earnings per share for the period was 16.19 HK cents, compared to 16.85 HK cents for the same period in 2021, reflecting a decline of 3.9%[160]. - The Group's gross profit for the reporting period amounted to approximately HK$456.1 million, a decrease of approximately 10.0% compared to the six months ended June 30, 2021[28]. - Gross profit for the period was HK$456,083, a decrease of 10.1% from HK$507,035 in the previous year[160]. - The net profit margin for the reporting period was approximately 7.4%, a decrease of approximately 0.7 percentage point compared to 8.1% for the same period in 2021[28]. Revenue Breakdown - Revenue from the sales of elastic fabric increased by approximately 11.4% to approximately HK$1,720.7 million, while revenue from elastic webbing sales rose by approximately 6.3% to approximately HK$519.3 million[27]. - Revenue for the six months ended June 30, 2022, included HK$1,720,740,000 from elastic fabric sales and HK$519,279,000 from elastic webbing sales[199]. - The revenue from elastic fabric for sportswear and apparel was HK$1,046,714,000, while lingerie sales contributed HK$674,026,000[199]. - Domestic sales revenue of the sportswear and apparel fabric segment achieved an encouraging growth of approximately 38.1%[27]. Cost and Profitability - The gross profit margin decreased by approximately 4.4 percentage points to approximately 20.0% for the reporting period[28]. - The significant increase in raw material costs has negatively impacted the Group's gross profit and gross profit margin for the reporting period[28]. - Cost of sales for the six months ended June 30, 2022, amounted to approximately HK$1,822.4 million, representing an increase of approximately HK$253.1 million or approximately 16.1% compared to the six months ended June 30, 2021[47]. - Raw materials cost increased by approximately 26.4%, contributing to 51.8% of the total cost of sales during the Reporting Period[47]. Economic Environment - The U.S. experienced a negative GDP growth of 1.6% and 0.6% in the first and second quarters of 2022, respectively, raising concerns about a potential recession[12]. - China's GDP growth was recorded at 4.8% and 0.4% for the first and second quarters of 2022, respectively, negatively impacted by lockdown measures due to the resurgence of COVID-19[12]. - The inflation rate in the U.S. reached 9.1% for the first half of 2022, driven by rising food and fuel prices due to geopolitical tensions[12]. - The macroeconomic environment in the first half of 2022 forced households to allocate a larger portion of disposable income to daily necessities[13]. - The textile and apparel sector faced volatility due to international geopolitical tensions and global economic headwinds[12]. Strategic Initiatives - Best Pacific is committed to further penetrating its existing customer base to sustain growth[13]. - The company continues to innovate and maintain high product quality to meet customer expectations[13]. - The Group plans to continue strengthening its innovation and R&D capabilities to meet rising customer demand for innovative apparel products[100]. - The Group aims to capture more market share, particularly in the sportswear and apparel business segment, leveraging its recent growth in domestic sales[100]. - The Group is committed to a multi-location manufacturing strategy and will explore opportunities for production capacity expansion both domestically and internationally[101]. - The Group emphasizes risk management and agility in response to ongoing market challenges, including elevated inflation and high living costs[99]. Cash Flow and Financial Position - Net cash generated from operating activities increased to approximately HK$274.8 million for the six months ended June 30, 2022, compared to approximately HK$255.9 million for the same period in 2021[82]. - Net cash used in investing activities rose to approximately HK$198.9 million for the six months ended June 30, 2022, from approximately HK$97.0 million for the same period in 2021, primarily for the purchase of property, plant, and equipment[83]. - Net cash used in financing activities increased to approximately HK$41.0 million for the six months ended June 30, 2022, compared to approximately HK$13.6 million for the same period in 2021, mainly for repayment of borrowings and interests[84]. - The Group's net gearing ratio was approximately 29.3% as of June 30, 2022, compared to approximately 28.9% as of December 31, 2021[85]. - The effective tax rate decreased to approximately 11.1% for the six months ended June 30, 2022, from approximately 13.6% for the same period in 2021, mainly due to increased profit contributions from overseas subsidiaries with better tax incentives[78]. Shareholding and Corporate Governance - As of June 30, 2022, Grandview Capital Investment Limited held 637,500,000 ordinary shares, representing approximately 61.30% of the company's total shareholding[122]. - The company has complied with the Corporate Governance Code throughout the six months ended June 30, 2022[135]. - The company entered into a facility agreement for a syndicated loan comprising HK$1.8 billion equivalent multicurrency term loan and revolving credit facilities, maturing in 42 months from the first drawdown[140]. - The company has adopted a securities dealing code for senior management and relevant employees to ensure compliance with the Model Code[139]. Dividend and Financial Reporting - The Board declared an interim dividend of HK7.28 cents per ordinary share for the six months ended 30 June 2022[145]. - The interim dividend is expected to be paid on 30 November 2022 to shareholders registered by 19 September 2022[145]. - The unaudited condensed consolidated results for the six months ended June 30, 2022 were reviewed by Deloitte Touche Tohmatsu[152]. - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34, ensuring compliance with relevant provisions[152].

Economic Performance - The global GDP was estimated to increase by 5.9% in 2021, compared to a decrease of 3.1% in 2020, indicating a strong economic recovery[11] - The GDP of advanced economies was estimated to increase by 5.0% and emerging markets by 6.5% in 2021, with the U.S. and China experiencing GDP growth of 5.7% and 8.1% respectively[18] - The IMF revised the projected global GDP growth for 2022 down by 0.5 percentage points to 4.4%, compared to an estimated 5.9% growth in 2021[126] - China's GDP growth is projected to slow from 8.1% in 2021 to 5.5% in 2022 due to pandemic-related disruptions and declining real estate investment[126] Company Performance - The overall Group's revenue increased by approximately 37.2% in 2021, reaching a historical high[22] - The company observed a strong rebound in market demands for consumer goods, particularly in sportswear and health products, driven by increased health consciousness among the public[11] - The company’s performance in the sportswear and fabric business segments has shown continuous growth, supported by the rising consumer demand[11] - Sales revenue of the sportswear and apparel fabric materials segment rose to approximately HK$2,438.9 million, representing a year-on-year growth of approximately 43.8%[22] - The elastic webbing segment recorded a year-on-year growth of approximately 44.2% in 2021[22] - For the year ended December 31, 2021, revenue amounted to approximately HK$4,792.7 million, representing an increase of approximately HK$1,298.4 million, or approximately 37.2%, from approximately HK$3,494.3 million for the year ended December 31, 2020[41] - Revenue from sales of elastic fabric amounted to approximately HK$3,622.7 million, representing an increase of approximately HK$961.8 million, or approximately 36.1%, compared to the previous year[46] - Sales revenue from the sportswear and apparel segment increased from approximately HK$1,696.0 million for the year ended December 31, 2020, to approximately HK$2,438.9 million for the year ended December 31, 2021, representing a year-on-year increase of approximately 43.8%[46] - Revenue from lingerie fabric materials increased from approximately HK$965.0 million for the year ended December 31, 2020, to approximately HK$1,183.8 million for the year ended December 31, 2021, representing a year-on-year increase of approximately 22.7%[47] - The Group recorded a net profit of approximately HK$401.3 million for the year ended 31 December 2021, representing an increase of approximately 61.0% compared to approximately HK$249.2 million for the year ended 31 December 2020[66] - The net profit margin for the year ended 31 December 2021 was approximately 8.4%, an increase of approximately 1.3 percentage points compared to the previous year[66] Cost and Expenses - The company faced cost pressures in 2021 due to nearly doubling fossil fuel prices and rising costs of oil by-products and chemical raw materials[36] - The overall production costs increased due to inflation and rising staff costs across different manufacturing locations[36] - The Group's cost of sales for the year ended 31 December 2021 amounted to approximately HK$3,680.8 million, representing an increase of approximately HK$1,029.9 million, or approximately 38.9%, compared to the year ended 31 December 2020[56] - The increase in cost of sales was primarily due to the increase in overall sales volume and rising prices of most commodities, including main raw materials[56] - The Group was able to partly digest increased costs through better economies of scale and cooperative discussions with customers on product price adjustments[56] Cash Flow and Financial Position - Net cash generated from operating activities decreased from approximately HK$754.2 million in 2020 to approximately HK$522.7 million in 2021[100] - Net cash used in investing activities increased to approximately HK$414.3 million in 2021 from approximately HK$212.7 million in 2020[100] - Net cash used in financing activities rose to approximately HK$363.9 million in 2021, compared to approximately HK$47.8 million in 2020[100] - The Group's net debt position was approximately HK$976.1 million as of December 31, 2021, down from approximately HK$1,107.4 million as of December 31, 2020[102] - The net gearing ratio improved to 28.9% as of December 31, 2021, from 36.7% as of December 31, 2020[102] Dividends and Shareholder Returns - The Board intends to maintain a long-term dividend payout ratio of not less than 20% of the Group's distributable profit for the year[123] - A final dividend of HK11.8 cents per ordinary share was declared for the year ended December 31, 2021, compared to HK7.4 cents for the previous year[123] - An interim dividend of HK7.5 cents per share was paid on November 30, 2021[123] - As of December 31, 2021, the company's distributable reserves amounted to approximately HK$713.7 million, with a proposed final dividend of approximately HK$122.7 million for the year[156] Operational Efficiency - The manufacturing site in Vietnam achieved a year-on-year revenue growth of approximately 26.9% in 2021 despite the Pandemic[32] - Operations in Sri Lanka observed a year-on-year revenue growth of approximately 98.5% in 2021, reflecting improved efficiencies and economies of scale[33] - Selling and distribution expenses represented approximately 4.2% of total revenue for the year ended 31 December 2021, down from 4.5% in 2020, reflecting economies of scale[79] - Administrative expenses accounted for approximately 7.0% of total revenue in 2021, a decrease from 7.3% in 2020, also due to economies of scale[80] - Research and development costs were approximately 2.1% of total revenue for the year ended 31 December 2021, down from 2.3% in 2020[81] Employee and Management - The Group employed a total of 8,957 full-time employees as of December 31, 2021, an increase from 7,825 in the previous year due to overseas expansion[117] - The Group has implemented a competitive remuneration package and performance appraisal system to reward and recognize employees[151] - The Company has implemented an additional performance incentive plan, allowing for monthly bonuses of up to 10% of basic salary for employees meeting key performance indicators[174] Environmental and Social Responsibility - The Group's environmental policies include compliance with applicable laws and regulations, and it has taken steps to minimize adverse environmental effects[143] - The Group's sewage treatment plants ensure that processed sewage meets chemical standards before discharge[143] - The Group's operating scale has expanded, leading to proportional increases in resource use, gas emissions, and waste disposal, all of which were under control during the review year[146] - The group made charitable and other donations amounting to approximately HK$2,762,000 during the year ended December 31, 2021[160] Risk Management and Future Outlook - The Group emphasizes the importance of risk management to navigate the changing market landscape due to geopolitical tensions and COVID-19[129] - The overall economic outlook remains positive despite challenges, with the Group confident in maintaining its leading position in the lingerie material market[129] - The Group plans to explore capacity expansion both domestically and overseas to meet growing customer demands[130] - The Group will implement relevant measures to address factors affecting profitability as it expands its operations[130]

Financial Performance - Sales revenue increased to approximately HK$2,076.3 million for the six months ended June 30, 2021, representing an increase of approximately 47.6% compared to the corresponding period last year[24]. - The Group's gross profit for the Reporting Period amounted to approximately HK$507.0 million, representing an increase of approximately 48.4%[42]. - Profit attributable to owners of the Company was approximately HK$175.2 million, representing an increase of approximately 105.2%[43]. - Basic earnings per share increased to approximately HK16.85 cents, up approximately 105.2% from the previous period[46]. - Net profit for the six months ended June 30, 2021, amounted to approximately HK$168.7 million, representing an increase of approximately 118.6% compared to approximately HK$77.2 million for the same period in 2020[70]. - Total comprehensive income for the period reached HK$211,817,000, compared to HK$17,818,000 in the previous year, marking a significant increase[189]. - Profit before taxation increased to HK$195,212,000, up from HK$87,025,000 in the previous year, marking a significant increase of approximately 124.8%[187]. Revenue Breakdown - Revenue from sales of elastic fabric increased by approximately 45.1% to approximately HK$1,544.2 million[41]. - Revenue from sales of elastic webbing increased by approximately 63.1% to approximately HK$488.4 million[41]. - Revenue from the sportswear and apparel fabric segment reached approximately HK$983.4 million, representing an increase of approximately 54.0%[41]. - The increase in overall revenue was mainly due to the rebound in sales orders from lingerie customers and continued growth in sportswear and apparel sales orders[49]. - The main contributors to the revenue increase were the elastic fabric and elastic webbing business segments[54]. Cost and Expenses - The Group's total cost of sales for the six months ended June 30, 2021, was approximately HK$1,569.2 million, an increase of approximately HK$504.2 million or 47.3% compared to the same period in 2020[61]. - Selling and distribution expenses represented approximately 4.9% of total revenue for the six months ended June 30, 2020, and approximately 4.7% for the six months ended June 30, 2021, indicating a decrease in the ratio due to economies of scale[78]. - Administrative expenses accounted for approximately 7.7% of total revenue for the six months ended June 30, 2020, and approximately 7.4% for the six months ended June 30, 2021, reflecting a reduction in the ratio due to economies of scale[79]. - Research and development costs represented approximately 2.5% of revenue for the six months ended June 30, 2020, and approximately 2.4% for the six months ended June 30, 2021, highlighting the company's commitment to innovation[83]. - Finance costs decreased by approximately 33.9% from HK$41.6 million for the six months ended June 30, 2020, to HK$27.5 million for the six months ended June 30, 2021, primarily due to lower average borrowings and decreased market interest rates[88]. Market and Economic Conditions - The global GDP was forecasted to be around US$142 trillion, which increased by US$10.3 trillion compared to 2020[23]. - The supportive fiscal and monetary policies from governments contributed to the market recovery observed in the first half of 2021[23]. - The U.S. real GDP recorded growth rates of 4.3%, 6.3%, and 6.5% in the fourth quarter of 2020, first quarter, and second quarter of 2021, indicating a recovery in the global economy[115]. - The GDP of the PRC increased by 12.7% in the first six months of 2021 compared to the same period in 2020, indicating a strong economic recovery[119]. - The overall economic recovery is influenced by geopolitical tensions, pandemic developments, and the ability to control the spread of new variants like Delta[117]. Strategic Initiatives - Strategic investments in international operations allowed the company to respond effectively to market upturns during the first half of 2021[32]. - The company has been a pioneer in making substantial investments in its internationalization plan[31]. - The Group aims to further penetrate the sportswear and apparel business segment by leveraging its innovation and research capabilities[116]. - Continuous strategic investments in personnel and capacity expansion are believed to underpin the Group's long-term sustainability and maximize shareholder value[121]. - The Group plans to adopt a more proactive approach to explore further capacity expansion in both the PRC and overseas, moving away from the conservative investment strategy of the previous year[120]. Shareholder Information - Grandview Capital Investment Limited holds 637,500,000 ordinary shares, representing approximately 61.30% of the total shareholding[144]. - FMR LLC has an interest in 91,518,800 ordinary shares, accounting for about 8.80% of the total shareholding[144]. - The total number of shares held by substantial shareholders indicates a strong ownership concentration within the company[144]. - The Company declared an interim dividend of HK$0.075 per ordinary share for the six months ended June 30, 2021[168]. - The Company has disclosed that all substantial shareholders' interests are in compliance with the Securities and Futures Ordinance[140]. Operational Metrics - As of June 30, 2021, net working capital was approximately HK$862.5 million, an increase of approximately HK$68.2 million compared to HK$794.3 million as of December 31, 2020[100]. - Bank balances and cash increased by approximately HK$179.3 million to approximately HK$1,272.2 million as of June 30, 2021, compared to December 31, 2020[100]. - Trade and bills receivables turnover days improved to approximately 67.4 days for the six months ended June 30, 2021, down from approximately 81.8 days for the year ended December 31, 2020[104]. - Inventory turnover days decreased to approximately 120.9 days for the six months ended June 30, 2021, compared to approximately 137.2 days for the year ended December 31, 2020, due to better inventory control[104]. - The Group's net gearing ratio was approximately 31.1% as of June 30, 2021, down from approximately 36.7% as of December 31, 2020[103].

Economic Impact - The global GDP in 2020 was projected to be around US$130 trillion, which was approximately US$9.6 trillion less compared to 2019[15]. - The real GDP of the U.S. decreased by around 3.5% in 2020, compared to an increase of around 2.2% in 2019, impacting global consumer markets and the Group's financial performance[22]. - Vietnam's GDP grew by around 2.9% in 2020, making it one of the few countries with positive growth during the pandemic[28]. - The textile and garment industry faced unprecedented challenges due to the COVID-19 pandemic and ongoing political and trade tensions between the PRC and the USA[13]. - The challenges faced by the industry led many affected companies to struggle for survival[13]. Company Performance - The Group achieved an encouraging growth of approximately 36.0% in sales of elastic fabric for sportswear and apparel during the year ended 31 December 2020[16]. - The Group's sales revenue for sportswear and apparel fabric materials segment increased to approximately HK$1,696.0 million for the year ended December 31, 2020, representing a year-on-year growth of approximately 36.0%[35]. - The Group recorded a year-on-year growth of approximately 36.0% in sales revenue of sportswear and apparel fabric materials despite the adverse impacts of COVID-19[52]. - For the year ended 31 December 2020, total revenue amounted to approximately HK$3,494.3 million, representing a decrease of approximately HK$143.5 million, or approximately 3.9%, from HK$3,637.8 million in 2019[47]. - Revenue from elastic fabric sales was approximately HK$2,660.9 million, an increase of approximately HK$19.9 million, or approximately 0.8%, compared to 2019[52]. Operational Adjustments - The Group successfully stabilized its production and operations despite the difficult business environment in 2020[16]. - The Group shifted production among different manufacturing plants globally during lockdowns to support customers[16]. - The textile and garment industry had to pause manufacturing and social activities at different times throughout 2020 due to the pandemic[13]. - Temporary suspensions of operations at various manufacturing sites were mandated by local authorities at different times throughout 2020[22]. - The Group's internationalization plan allowed for operational adjustments to cope with challenges from COVID-19 and U.S.-PRC trade tensions[23]. Financial Management - The Group secured a new syndication loan facility amounting to HK$1.8 billion in June 2020, contributing to financial and risk management[19]. - The Group's net profit margin improved to approximately 8.2% for the six months ended 31 December 2020, compared to 5.5% in the previous period[41]. - The Group's cost of sales for the year ended 31 December 2020 was approximately HK$2,650.9 million, a decrease of approximately HK$114.0 million, or 4.1%, compared to the previous year[62]. - The net profit for the year ended 31 December 2020 was approximately HK$249.2 million, representing a decrease of approximately 16.7% compared to HK$299.1 million in 2019[75]. - The net gearing ratio improved to 36.7% as of December 31, 2020, down from 59.1% as of December 31, 2019[107]. Cost Control Measures - The Group's proactive cost control measures included savings in human resources, sales, marketing, and administrative functions during the financial year 2020[35]. - The Group adopted various cost-saving measures in response to the COVID-19 pandemic to mitigate its adverse effects[63]. - Direct labor costs increased by approximately 10.7% for the year ended 31 December 2020, attributed to the expansion of overseas manufacturing bases in Vietnam and Sri Lanka[64]. - Selling and distribution expenses represented approximately 4.5% of total revenue in 2020, down from 4.7% in 2019[88]. - Administrative expenses increased to approximately 7.3% of total revenue in 2020 from 6.1% in 2019, primarily due to slower expansion impacted by COVID-19[89]. Future Outlook - The Group anticipates a strong sales rebound in 2021, driven by mass COVID-19 vaccination and improving market sentiment, particularly in the PRC retail market[130]. - The Group plans to continue capacity expansion both domestically and overseas to meet growing market demands[136]. - The company anticipates that sales revenue from the sportswear and fabric materials segment will continue to be a key growth driver in the near future due to the rising health consciousness and demand for innovative apparel products[137]. - The Group aims to differentiate itself by focusing on innovation and technology to cater to the rising demand for innovative apparel products, especially in the athleisure segment[135]. - The Group plans to explore further capacity expansion in Vietnam to meet the anticipated increase in market demand for innovative textile products[29]. Environmental and Social Responsibility - The Group's environmental policies include on-site sewage treatment plants that treat wastewater from production processes, ensuring compliance with chemical standards before discharge[158]. - The Group has ISO certification for its main manufacturing sites, indicating effective environmental and energy management throughout the manufacturing process[158]. - Charitable and other donations made by the Group during the year ended December 31, 2020 totaled approximately HK$2,468,000[174]. - Further details on the Group's environmental performance and key performance indicators will be disclosed in the upcoming Environmental, Social and Governance Report 2020[156]. - The Group has complied in material respects with relevant laws and regulations in the Cayman Islands, PRC, Hong Kong, Vietnam, Sri Lanka, and the U.S. for the year ended 31 December 2020[161].