Financial Performance - Revenue for the year ended December 31, 2023, was $2,177 million, a decrease of 12.6% from $2,491 million in 2022[2] - Net profit for the year ended December 31, 2023, was $164 million, down from $173 million in 2022, representing a decline of 5.2%[2] - Gross profit for the year was $417.8 million, down 10.0% from $463.4 million in 2022[3] - Basic earnings per share for the year was 5.73 US cents, compared to 6.05 US cents in 2022, reflecting a decrease of 5.3%[4] - The company's profit before tax for 2023 was $163,479,000, a decrease from $172,726,000 in 2022, representing a decline of approximately 5.4%[25] - Total revenue decreased by 12.6% year-over-year to $2,177.3 million in 2023, primarily due to weak consumer demand amid high interest rates and inflation[39] - Net profit for the year was $164 million, a decrease from $173 million in 2022, but the net profit margin improved to 7.5% from 7.0%[44] Dividends - Proposed final dividend of 13.0 HK cents per share (approximately 1.7 US cents), bringing the total dividend for the year to 18.0 HK cents per share, an increase from 16.8 HK cents in 2022[2] - The proposed final dividend for 2023 is 13.0 HK cents per share, up from 11.8 HK cents per share in 2022, which translates to approximately $47,471,000 compared to $42,988,000 in the previous year[26] - The total dividend for the year was proposed at 18.0 HKD cents per share, representing 40% of the net profit, up from 35% in 2022[37] Assets and Liabilities - Total assets as of December 31, 2023, were $1,974.6 million, an increase from $1,894.9 million in 2022[5] - Cash and cash equivalents increased to $543.4 million from $455.1 million in 2022, representing a growth of 19.4%[5] - Trade and other payables rose to $380.9 million from $340.3 million in 2022, indicating an increase of 11.9%[8] - Non-current liabilities decreased to $54.5 million from $59.8 million in 2022, a reduction of 8.8%[7] - Trade receivables from customer contracts amounted to $88,437 thousand in 2023, down from $118,922 thousand in 2022, reflecting a decrease of about 25.7%[27] - The provision for expected credit losses decreased to $5,408 thousand in 2023 from $7,879 thousand in 2022, indicating a reduction of approximately 31.3%[27] Revenue Breakdown - Segment revenue from leisurewear was $607,618 thousand, while sports and outdoor wear generated $477,521 thousand, and denim contributed $473,181 thousand[14] - Revenue from major customers contributing over 10% to total revenue was $712,836 thousand in 2023, compared to $748,592 thousand in 2022, reflecting a decline of approximately 4.8%[17] - Revenue from the Asia-Pacific region was $877,298 thousand, down from $940,759 thousand in 2022, a decrease of about 6.7%[18] - Revenue from the United States was $783,468 thousand, a significant drop from $959,853 thousand in the previous year, representing a decline of approximately 18.4%[18] - The revenue breakdown by product category showed leisurewear at $607.6 million (27.9%), sports and outdoor wear at $477.5 million (21.9%), and intimate apparel at $396.4 million (18.2%) for 2023[39] Operating Expenses - Operating expenses, including sales and distribution, administrative, and R&D expenses, totaled $244.8 million, a slight decrease from $263.6 million in 2022[3] - Total employee costs for 2023 amounted to $516,743,000, down from $593,143,000 in 2022, indicating a reduction of about 12.9%[1] - The cost of goods sold, including inventory write-downs, was $1,757,802,000 in 2023, compared to $2,013,351,000 in 2022, reflecting a decrease of approximately 12.7%[1] Cash Flow and Capital Expenditure - Cash flow remained stable with net cash reaching a record $543 million as of December 31, 2023, compared to $455 million in 2022[45] - Capital expenditures were reduced to $69 million in 2023, reflecting a strategic shift in investment focus due to anticipated market demand slowdown[37] - The capital expenditure for 2023 was $69 million, down from $106 million in 2022[46] - The company plans to increase its capital expenditure in 2024 due to vertical integration expansion and ongoing automation upgrades[55] Sustainability and Future Outlook - The company plans to implement approximately 180 short-term and long-term energy-saving measures as part of its sustainability vision for 2030[37] - The company expects a double-digit growth in order demand for 2024, driven by increased shipment volumes across all divisions[54] - The group received multiple sustainability awards, including the "Hong Kong Sustainable Development Award 2023 - Model Award" and "Excellence in Social Impact Award" in 2023[38] Accounting and Compliance - The group has applied new international financial reporting standards, which did not have a significant impact on the financial position or performance for the current and prior years[10] - The group has implemented the revised IAS 12 regarding income tax, which includes provisions for deferred tax assets and liabilities related to the OECD's Pillar Two legislation[11] - The audit committee expressed satisfaction with the external auditor's work and the application of accounting policies for the year ended December 31, 2023[60] - The audited consolidated financial statements for the year ended December 31, 2023, will be provided to shareholders in due course[61] Market Conditions - The company experienced a challenging operating environment in 2023, with a notable 24% year-over-year decrease in apparel imports to the U.S.[35] - The knitwear division achieved record performance due to improved product mix and growing demand from sports brand customers, contributing to sales growth[36] - The company is focusing on market expansion in the Asia-Pacific region, capitalizing on steady growth in demand from the Chinese market[36]

Financial Performance - Revenue for the six months ended June 30, 2023, decreased by 18.7% to $1,009 million compared to $1,242 million for the same period in 2022[19] - Net profit for the six months ended June 30, 2023, decreased by 2.6% to $74 million, down from $76 million in the same period last year[19] - Total revenue for the six months ended June 30, 2023, was $1,009,191 thousand, a decrease of 18.7% compared to $1,241,643 thousand in the same period of 2022[22] - Gross profit for the first half of 2023 was $192,655 thousand, with a gross margin of 19.1%, compared to $229,502 thousand and 18.5% in the same period of 2022[24] - The net profit for the six months ended June 30, 2023, was $74 million, representing 7.3% of revenue, up from 6.1% in the first half of 2022[27] - Total comprehensive income for the period was $66,531 thousand, an increase of 31.6% from $50,554 thousand in the previous year[63] - The company reported a pre-tax profit of $90,279 thousand for the six months ended June 30, 2023, down from $92,167 thousand in the same period of 2022, indicating a decline of approximately 2.0%[85][91] Profitability Metrics - Gross profit margin improved to 19.1% from 18.5% year-on-year, while net profit margin increased to 7.3% from 6.1%[19] - The basic earnings per share for the period was 2.58 cents, slightly down from 2.64 cents in the same period last year[63] - The company reported other income, gains, or losses of $12,702 thousand for the six months ended June 30, 2023, compared to $5,972 thousand in the same period of 2022, representing an increase of approximately 112.9%[85][87] Cash Flow and Liquidity - The company maintained a cash position with short-term bank deposits of $63.7 million and cash and cash equivalents of $472.9 million[15] - Operating cash flow for the first half of 2023 was $141 million, an increase from $122 million in the same period of 2022[28] - The company maintained a healthy liquidity position with a net cash position of $463 million as of June 30, 2023[28] - The cash conversion cycle increased to 75 days from 63 days year-on-year[15] - The net cash generated from operating activities for the six months ended June 30, 2023, was $140.88 million, compared to $121.65 million for the same period in 2022, representing a year-over-year increase of approximately 15.7%[70] Inventory and Supply Chain - The company experienced a 30% decline in U.S. apparel imports, with women's apparel seeing a larger drop of 34%[18] - The average inventory turnover days increased to 64 days in the first half of 2023, compared to 53 days for the entire year of 2022[28] - The company noted that high inventory levels remain a common challenge for brand clients in the apparel industry[18] Capital Expenditures and Investments - Capital expenditures for the first half of 2023 were $33 million, down from $56 million in the same period of 2022[28] - No significant acquisitions or investments were made during the reporting period, and there are no plans for major investments or acquisitions at this time[30] Sustainability Initiatives - The company aims to achieve a 35% reduction in total greenhouse gas emissions by 2030, with a comprehensive action plan for each factory to meet this target[34] - The company's solar photovoltaic capacity has increased nearly threefold since the end of 2021, now reaching approximately 10 megawatts, with further installations planned[34] - The newly launched Vibrant Denim series utilizes natural mineral powder for dyeing and incorporates water-saving washing techniques, replacing traditional methods that consume more water[34] - The company has implemented a circular economy model, with two factories achieving 100% non-landfill waste treatment[34] - The company is committed to establishing measurable goals for its new sustainability vision by 2030, addressing various global sustainability challenges[33] Employee and Management Information - As of June 30, 2023, the company employed approximately 64,000 employees, with total employee costs accounting for 26.6% of revenue, up from 25.0% in the same period of 2022[32] - The annual salary of the CEO was adjusted to HKD 6.454 million, effective April 1, 2023[42] - The total remuneration for directors, as recommended by the company's remuneration committee, was $1,719,000 for the period, compared to $1,773,000 in the previous year, indicating a decrease of 3.1%[124] Corporate Governance - The company has established a comprehensive internal audit team in Vietnam to conduct compliance reviews[57] - The audit committee has reviewed the financial reports and internal control systems, finding no significant issues[56] - The board is committed to maintaining good corporate governance practices and has adhered to all relevant codes during the reporting period[54] - The audit committee has recommended the reappointment of Deloitte as the company's auditor for the upcoming year[56] Shareholder Information - The company declared an interim dividend of 5.0 HK cents per ordinary share, maintaining the same amount as the previous year[21] - The company has suspended the transfer of shares from September 7 to September 11, 2023, to determine the entitlement to the interim dividend[39] - The company’s chairman holds a beneficial interest in 306,610,590 shares, representing approximately 10.75% of the company’s equity[47] - The company’s vice-chairman holds a beneficial interest in 306,610,590 shares, also representing approximately 10.75% of the company’s equity[47] Financial Position - The company's total assets as of June 30, 2023, amounted to $1,975,718 thousand, up from $1,894,965 thousand at the end of 2022, representing a growth of 4.3%[65] - The total liabilities as of June 30, 2023, amounted to $607.17 million, up from $549.86 million at the end of 2022, marking an increase of approximately 10.4%[68] - The total equity attributable to owners of the company as of June 30, 2023, was $1.36 billion, an increase from $1.34 billion as of December 31, 2022, reflecting a growth of about 1.5%[68] Risk Management - The company has a written risk assessment procedure in place to identify, assess, and manage significant risks[57] - The audit committee continues to review the company's risks as a standing agenda item in meetings[57]

Financial Performance - Revenue for the six months ended June 30, 2023, was $1,009 million, a decrease of 19% compared to $1,242 million for the same period in 2022[2] - Net profit for the six months ended June 30, 2023, was $74 million, down from $76 million in the same period of 2022, representing a decline of 1.8%[2] - Gross profit for the six months ended June 30, 2023, was $192.7 million, down from $229.5 million in 2022, reflecting a decrease of 16%[4] - The basic earnings per share attributable to the owners of the company for the six months ended June 30, 2023, was $2.58, slightly down from $2.64 in the same period of 2022[5] - The company reported a total comprehensive income of $66.5 million for the six months ended June 30, 2023, compared to $50.6 million in 2022, reflecting an increase of 31.5%[4] - The group reported a pre-tax profit of $90,279 thousand for the six months ended June 30, 2023, compared to $92,167 thousand for the same period in 2022, reflecting a slight decline of 2.1%[19][22] - For the six months ended June 30, 2023, the company reported a pre-tax profit of $73,642,000, a decrease from $75,370,000 in the same period of 2022, representing a decline of approximately 2.3%[31] - Total revenue for the first half of 2023 was $1,009,191 thousand, a decrease of 18.7% compared to $1,241,643 thousand in the same period last year[46][45] Dividends - The board declared an interim dividend of 5.0 HKD per share, consistent with the interim dividend declared in 2022[2] - The company declared an interim dividend of 5.0 HK cents per ordinary share, maintaining the same amount as the previous year[43] - The board has declared an interim dividend of HKD 0.05 per ordinary share, approximately USD 0.006, to be paid on September 20, 2023[67] Expenses and Costs - Research and development expenses for the six months ended June 30, 2023, were $13.9 million, a reduction from $17.2 million in the same period of 2022, indicating a decrease of 19%[4] - The group incurred administrative expenses of $85,379 thousand and research and development expenses of $13,901 thousand for the six months ended June 30, 2023[19] - Total employee costs for the six months ended June 30, 2023, amounted to $268,705,000, down 13.3% from $310,031,000 in the prior year[26] - The cost of goods sold, including inventory write-downs, was $816,536,000 for the six months ended June 30, 2023, compared to $1,012,141,000 in 2022, reflecting a decrease of 19.3%[26] - The income tax expense for the six months ended June 30, 2023, was $16,159,000, slightly down from $16,632,000 in the same period of 2022[28] - Interest expenses related to bank borrowings increased to $2,234,000 in the first half of 2023, compared to $1,346,000 in the same period of 2022, marking a rise of 65.8%[26] - The depreciation of property, plant, and equipment for the six months ended June 30, 2023, was $34,189,000, a decrease from $37,070,000 in the previous year, indicating a reduction of 7.6%[26] Assets and Liabilities - Total assets as of June 30, 2023, amounted to $1,975.7 million, an increase from $1,894.9 million as of December 31, 2022[6] - Cash and cash equivalents as of June 30, 2023, were $472.9 million, compared to $455.1 million as of December 31, 2022, showing an increase of 3.9%[6] - The company’s total liabilities, including current and non-current, amounted to $372,848 thousand as of June 30, 2023, compared to $340,603 thousand as of December 31, 2022[37] - Trade receivables, net of expected credit loss provisions, amounted to $79,147 thousand as of June 30, 2023, down from $111,043 thousand as of December 31, 2022[32] - The company reported trade payables of $158,922 thousand as of June 30, 2023, an increase from $112,742 thousand as of December 31, 2022[36] - The inventory level was $3,775 thousand as of June 30, 2023, compared to $3,988 thousand as of December 31, 2022[40] Revenue Breakdown - The external sales breakdown for the six months ended June 30, 2023, included $285,334 thousand from leisure wear, $254,127 thousand from sports and outdoor wear, $221,395 thousand from denim, $176,258 thousand from intimate apparel, and $72,077 thousand from knitwear[19] - Revenue from the Asia-Pacific region for the six months ended June 30, 2023, was $381,530 thousand, a decrease from $400,288 thousand in the same period of 2022, representing a decline of approximately 4.4%[25] - Revenue from the United States for the six months ended June 30, 2023, was $359,879 thousand, down from $538,979 thousand in the same period of 2022, indicating a significant decline of about 33.3%[25] - Revenue from Europe for the six months ended June 30, 2023, was $202,739 thousand, a decrease from $235,054 thousand in the same period of 2022, representing a decline of approximately 13.8%[25] - Revenue from leisurewear was $285,334 thousand (28.3% of total revenue), while sports and outdoor apparel generated $254,127 thousand (25.2%)[45] Market and Operational Challenges - The company experienced a significant decline in apparel imports to the U.S., with a 30% decrease year-over-year, and women's apparel saw a larger drop of 34%[41] - The company is facing challenges in the apparel industry due to high inventory levels and a slowdown in purchasing speed[41] - The company anticipates a rebound in sales during the second half of the year, driven by back-to-school and holiday factors, despite a significant decline in the first half[66] - The company aims to maintain strict cost control while improving profit margins through the expected sales rebound[66] Sustainability and Social Responsibility - The company aims to achieve net-zero emissions by 2050 and has set a mid-term target to reduce total greenhouse gas emissions by 35% by 2030[61] - The company has developed a comprehensive net-zero roadmap, including energy efficiency measures and renewable energy initiatives, targeting a 35% reduction in emissions at each factory[62] - The total capacity of the company's rooftop solar photovoltaic systems has increased nearly threefold since the end of 2021, currently reaching approximately 10 terawatts[62] - The company has launched the Vibrant Denim collection, utilizing natural mineral powder for dyeing and water-saving washing techniques, replacing traditional methods that consume more water[62] - The company has implemented a circular economy model, with two factories achieving 100% waste diversion from landfills[63] - The company has adopted water-saving dyeing equipment in its Vietnam factory, reducing water usage by 30% to 50% compared to older models[63] - Approximately 70% of the company's employees are women, with over 54,000 women empowered through the CAREii program to improve gender equality[64] - The company promotes employee engagement through various platforms, allowing workers to express their opinions without fear of retaliation[64] - The company participates in community initiatives, including tree planting and energy conservation campaigns, contributing skills and resources to local efforts[65] Corporate Governance and Risk Management - The company is committed to maintaining effective risk management and internal control systems, with the board satisfied with their effectiveness[75] - The Audit Committee is satisfied with the current network security measures and has planned a series of tests for the fourth quarter of this year[76] - A complete internal audit team has been established in Vietnam, which has commenced compliance reviews[76] - The Audit Committee continues to review the company's risks as a regular agenda item in meetings[76] - The company has a written risk assessment procedure for identifying, evaluating, and managing significant risks[76] - The Audit Committee is pleased with the effectiveness of the risk management and internal control systems[76] Accounting Policies - The financial statements are presented in US dollars, which is also the functional currency of the company[9] - The financial statements were prepared in accordance with International Accounting Standards (IAS) 34, "Interim Financial Reporting"[9] - The company applied new International Financial Reporting Standards (IFRS) and amendments effective from January 1, 2023, without significant impact on financial position or performance[11] - The application of IFRS 12 regarding deferred tax assets and liabilities related to single transactions has been adopted, affecting accounting policies[13] - The group confirmed deferred tax assets and liabilities related to leasing transactions under IFRS 12, limited to instances where taxable profits are available[13] - The transition to the new accounting policy for leasing transactions was applied retrospectively from January 1, 2022[14] - The company’s accounting policies and methods remain consistent with those used in the preparation of the annual consolidated financial statements for the year ended December 31, 2022[10] - The financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[10] - There was no significant impact on the financial statements from the application of the new IFRS and amendments during the reporting period[11]

Financial Performance - Revenue for the year ended December 31, 2022, was $2,490,966 thousand, an increase of 6.4% from $2,341,432 thousand in 2021[4] - Gross profit for 2022 was $463,350 thousand, with a gross margin of 18.6%, down from 19.1% in 2021[4] - Net profit for 2022 was $173,229 thousand, maintaining a net profit margin of 7.0%[4] - The company's revenue for the year ended December 31, 2022, increased to $2,491 million, up from $2,341 million in 2021, representing a growth of approximately 6.4%[12] - The gross profit margin slightly decreased to 18.6% in 2022 from 19.1% in 2021, while the net profit for the year was $173 million, compared to $163 million in the previous year, maintaining a net profit margin of 7.0%[12] - Total revenue for 2022 was $2,490,966 thousand, compared to $2,341,432 thousand in 2021, with the Americas accounting for 38.5% and Europe for 18.0%[17] - Operating cash flow for 2022 was $349 million, an increase from $190 million in 2021, with cash and cash equivalents totaling $455 million[22] - The company reported a significant increase in sales cost, which rose to $2,027,616 thousand from $1,893,822 thousand, indicating a 7.1% increase[184] - The total comprehensive income for the year was $107,089 thousand, down from $179,010 thousand in 2021, reflecting a decrease of 40.2%[185] Assets and Liabilities - The total assets decreased to $1,894,965 thousand in 2022 from $1,959,495 thousand in 2021[5] - Total liabilities reduced significantly to $549,666 thousand in 2022 from $666,176 thousand in 2021[5] - Total equity increased from $1,293,319 thousand in 2021 to $1,345,299 thousand in 2022, an increase of approximately 4.0%[187] - The company’s total liabilities decreased from $666,176 thousand in 2021 to $549,666 thousand in 2022, a decline of approximately 17.5%[187] Sustainability and Environmental Initiatives - The company aims to reduce absolute carbon emissions by 35% by 2030 as part of its sustainability goals[7] - Solar photovoltaic capacity was increased from 3.6 MW in 2021 to 7.8 MW in 2022[7] - The company has installed a total of 4.2 MW of solar photovoltaic capacity in 2022, doubling its total capacity to 7.8 MW, as part of its sustainability efforts[14] - The company plans to reduce greenhouse gas emissions by 35% by 2030 as part of its commitment to achieving net-zero emissions by 2050[14] - The company received several prestigious awards in 2022, including the Hong Kong Sustainable Development Award 2022 - Model Award (Large Organization Category) and the Best ESG Report - Mid-Cap Award[168] - The company achieved significant recognition for its environmental initiatives, including the Carbon Neutral Contribution Pioneer Organization award and the Platinum Label under the Low Carbon Manufacturing Program[168] Acquisitions and Investments - The company completed the acquisition of a fabric factory in Bangladesh in 2022, marking a milestone in its long-term vertical integration strategy[7] - The company completed the acquisition of a fully-owned fabric factory in Bangladesh in September 2022, enhancing its vertical integration strategy and supporting long-term fabric demand for its domestic garment factories[12] - Capital expenditures for the year amounted to $106 million, primarily for expansion in Vietnam and Cambodia, with total capital investments reaching $164 million, up from $132 million in 2021[12] - The company completed the acquisition of How Are You Textile Industry Limited for $37 million on September 30, 2022, to support long-term fabric needs in Bangladesh[27] - The company also acquired Successor Limited for $20.7 million on November 30, 2022, which has a factory in Vietnam, enhancing vertical integration efforts[27] Employee and Talent Management - The company received the HR Asia Best Companies to Work for in Asia 2022 award, highlighting its commitment to talent retention and employer branding[7] - Employee costs accounted for 23.8% of revenue in the fiscal year ending December 31, 2022, down from 24.8% in the previous year[30] - The company employed approximately 73,000 employees as of December 31, 2022, focusing on performance-based compensation and ongoing training[30] - The company has established a new talent strategy team to support the long-term development of its fabric business, enhancing its operational efficiency[12] Corporate Governance - The company emphasizes good corporate governance principles and has established various committees, including the Audit Committee and the Nomination Committee[171] - The board consists of six executive directors, one non-executive director, and four independent non-executive directors as of December 31, 2022[96] - The company has established a policy for handling and disclosing inside information, ensuring strict monitoring to prevent unauthorized access and use[160] - The company has adopted a shareholder nomination process for director candidates, effective from the date of listing[164] - The company has reviewed its shareholder communication policy and believes there are sufficient channels for shareholders to express their views on matters affecting the company[165] Financial Reporting and Audit - The audit committee reviewed the audited consolidated financial statements for the year ended December 31, 2022, and expressed satisfaction with the external auditor's work and compliance with accounting policies[113] - Deloitte Touche Tohmatsu was the independent auditor for the financial statements for the year ending December 31, 2022[90] - The company has sufficient resources, personnel, training programs, and budget for accounting, internal audit, and financial reporting functions, as well as for environmental, social, and governance performance reporting[157] Future Outlook - Consumer demand remains strong post-pandemic, but high inventory levels and economic uncertainty are expected to challenge growth in 2023[31] - The company expects capital investments in 2023 to be similar to those in 2022 as it continues to invest in upstream vertical expansion[31] - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[45]

Financial Performance - For the year ended December 31, 2022, the revenue was $2,491 million, an increase of 6.4% from $2,341 million in 2021[2] - The net profit for the year was $173 million, up from $163 million in the previous year, representing a growth of 6.1%[2] - Gross profit for the year was $463.4 million, compared to $447.6 million in 2021, reflecting a gross margin improvement[4] - The basic earnings per share for the year was 6.05 US cents, up from 5.72 US cents in 2021, representing a growth of 5.8%[6] - The total segment profit for the year 2022 was $463,350 thousand, compared to $447,610 thousand in 2021, indicating an increase of about 3.5%[16][18] - The company reported a pre-tax profit of $212,696 thousand for 2022, up from $191,849 thousand in 2021, reflecting a growth of approximately 10.9%[16][18] - The company's profit before tax for 2022 was $172,726,000, an increase from $163,106,000 in 2021, representing a growth of approximately 9.9%[29] - The gross profit margin slightly decreased to 18.6% in 2022, compared to 19.1% in 2021[39] - Net profit for 2022 was $173 million, maintaining a net profit margin of 7.0% for both 2022 and 2021[47] Dividends - The proposed final dividend is 11.8 HK cents (approximately 1.5 US cents) per share, leading to a total dividend of 16.8 HK cents for the year, compared to 13.8 HK cents in 2021, marking a 21.7% increase[2] - The company declared a final dividend of 11.8 HK cents per share for 2022, totaling approximately $43,120,000, compared to $35,789,000 for the previous year[30] - The board proposed a final dividend of HKD 0.118 per share, resulting in a total dividend of HKD 0.168 per share for the year, a 22% increase from HKD 0.138 in 2021[41] Assets and Liabilities - The total assets as of December 31, 2022, were $1,894.97 million, a decrease from $1,959.50 million in 2021[7] - The company's cash and cash equivalents amounted to $455.06 million, showing a significant increase from the previous year[7] - Trade receivables, net of expected credit loss provisions, decreased to $111,043,000 in 2022 from $196,896,000 in 2021, a decline of about 43.5%[31] - Total trade and other payables decreased to $340,603 thousand in 2022 from $397,792 thousand in 2021, reflecting better financial management[35] - The company reduced bank borrowings from $168 million in 2021 to $102 million in 2022[48] Research and Development - Research and development expenses for the year were $34.36 million, compared to $31.06 million in 2021, indicating a 10.0% increase in investment in innovation[4] - Research and development expenses for the year were $34,358 thousand, compared to $31,057 thousand in the previous year, reflecting an increase of about 10.5%[16][18] Inventory Management - The company reported a decrease in inventory to $280.20 million from $308.34 million in the previous year, indicating improved inventory management[7] - The average inventory turnover days for 2022 was 53 days, compared to 52 days in 2021[49] Capital Expenditures and Investments - Capital expenditures for the year amounted to $106 million, primarily supporting expansion in Vietnam and Cambodia, with total capital investment reaching $164 million, up from $132 million in 2021[40] - Capital expenditures for 2022 were $106 million, an increase from $90 million in 2021[49] - The company plans to expand production facilities in Vietnam and Bangladesh for leisurewear and sportswear, with investments of $88 million and $59 million respectively[54] - The company completed the acquisition of a second wholly-owned fabric factory in Bangladesh in September 2022, enhancing its vertical integration strategy[40] - The company completed the acquisition of 50%, 30%, and 20% stakes in How Are You Textile Industry Limited for USD 37 million to support long-term fabric needs in Bangladesh[57] - The company also acquired Successor Limited for USD 20.7 million, which owns a factory in Vietnam, as part of its vertical integration strategy[57] Employee Costs - Total employee costs for 2022 amounted to $593,143,000, up from $580,505,000 in 2021, reflecting an increase of about 2.2%[24] - Employee costs accounted for 23.8% of revenue in the fiscal year ending December 31, 2022, down from 24.8% in the previous year[60] Environmental Initiatives - The company plans to achieve its net-zero vision by 2050 and has set a mid-term target to reduce total greenhouse gas emissions by 35% by 2030[40] - The company installed a total of 4.2 megawatts of solar photovoltaic capacity in 2022, doubling its total capacity to 7.8 megawatts compared to 2021[40] Market Performance - Revenue from the United States for 2022 was $959,853 thousand, an increase from $908,180 thousand in 2021, marking a growth of about 5.7%[22] - The Asia-Pacific region contributed $940,759 thousand in revenue for 2022, slightly down from $949,656 thousand in 2021, showing a decrease of approximately 0.9%[22] - The company’s largest customer generated $748,592 thousand in revenue in 2022, down from $787,652 thousand in 2021, representing a decline of about 4.9%[21] - The contribution of sportswear and outdoor apparel to total revenue increased from 18.2% in 2021 to 22.3% in 2022[42] Future Outlook - The company anticipates that 2023 will be a challenging year due to high inventory levels and changing consumer preferences, particularly in the denim market[61] - Capital investments in 2023 are expected to be similar to those in 2022 as the company continues to invest in upstream vertical expansion[61] Audit and Reporting - The audit committee expressed satisfaction with the external auditor's work and the application of accounting policies for the year ended December 31, 2022[65] - The company will timely send the annual report for the year ended December 31, 2022, to shareholders and publish it on relevant websites[66]

Financial Performance - For the six months ended June 30, 2022, the company's revenue increased significantly to $1,241.6 million, compared to $1,054.5 million for the same period in 2021, representing an increase of approximately 17.8%[10] - The gross profit for the same period was $229.5 million, with a gross margin of 18.5%, slightly down from 18.6% in the previous year[10] - Net profit for the six months ended June 30, 2022, was $75.5 million, up from $63.6 million in the same period last year, resulting in a net profit margin of 6.1%[10] - The company reported a total revenue of $1,241.6 million for the six months ended June 30, 2022, representing a 17.7% increase compared to $1,054.5 million in the same period of 2021[15] - The company achieved a net profit of $76 million for the six months ended June 30, 2022, with a net profit margin of 6.1%, up from 6.0% in the same period of 2021[22] - Revenue from leisurewear was $345.3 million, accounting for 27.8% of total revenue, while revenue from sports and outdoor apparel increased to $279.4 million, contributing 22.5% to total revenue[15] - The company reported a foreign exchange loss of $27,899 thousand due to currency translation adjustments[73] - The total comprehensive income for the period was $50,554 thousand, down from $72,117 thousand in the previous year, primarily due to foreign exchange losses[73] - The company reported a foreign exchange gain of $3.451 million during the period, contributing positively to the overall income[79] Assets and Liabilities - Total assets as of June 30, 2022, were $1,978.3 million, compared to $1,959.5 million at the end of 2021, showing a growth of approximately 0.9%[5] - Total liabilities increased slightly to $670.2 million from $666.2 million, indicating a stable financial position[5] - Cash and cash equivalents rose to $413.7 million from $401.3 million, reflecting a healthy liquidity position[5] - The company’s total liabilities increased due to higher bank borrowings, with new bank loans raised amounting to $120.212 million[80] - The company’s total receivables, including trade receivables, notes receivable, and other receivables, decreased to $165,423,000 as of June 30, 2022, from $251,305,000 as of December 31, 2021, a decline of about 34%[109] - The total amount of bank borrowings repaid during the six months ended June 30, 2022, was approximately $169,411,000, compared to $96,788,000 for the same period in 2021, representing an increase of about 75%[120] Cash Flow and Investments - The group reported a positive operating cash flow of $122 million for the six months ended June 30, 2022, compared to $77 million in the same period of 2021[23] - The total cash outflow from investing activities for the six months ended June 30, 2022, was $42.910 million, up from $26.817 million in the previous year, indicating a significant increase in investment expenditures[80] - The company anticipates that capital investments for the year will exceed the levels of 2021, driven by cautious investments in manufacturing platforms in Vietnam, Cambodia, and Bangladesh[43] - Capital investments for the six months ended June 30, 2022, amounted to $56 million, compared to $53 million for the same period in 2021[14] - The company plans to allocate $259 million for capacity expansion and $58 million for upstream vertical expansion in Asia[31] Operational Efficiency - The company reported a cash turnover period of 65 days, an increase from 56 days in the previous year, indicating a longer time to convert cash into sales[6] - The average cash turnover period increased to 65 days for the first half of 2022, compared to 56 days for the entire year of 2021[23] - The average turnover days for trade receivables were 43 days in the first half of 2022, slightly up from 42 days in 2021[23] - The company has made significant investments in capacity expansion projects, aligning with its strategy to enhance productivity and meet growing demand[12] Sustainability and Social Responsibility - The company has set a mid-term target to reduce total greenhouse gas emissions by 35% by 2030 as part of its commitment to achieve net-zero emissions by 2050[12] - The company installed a 1 MW solar photovoltaic system in one of its factories in China, expected to generate over 1,000 MWh of electricity annually, contributing to its renewable energy goals[12] - Since 2007, the carbon footprint per garment has been reduced by 40%, and the company has planted 2.9 million trees in the countries where it operates[39] - Water consumption per garment has decreased by 54% compared to 2017 due to comprehensive measures to protect freshwater resources[40] - The CARE program has empowered over 50,000 female employees, aiming to improve gender equality and workplace conditions[41] - The company is actively establishing a circular economy model, with projects aimed at redefining product design and manufacturing to reduce waste[39] Governance and Compliance - The board of directors remains unchanged as of June 30, 2022, with specific adjustments to the annual director fees and salaries for certain executives[52] - The company continues to provide governance materials to assist the ongoing professional development of its directors and executives[53] - The audit committee has reviewed the financial reports and internal control systems, finding no significant issues related to risk management[65] - The audit committee has recommended the reappointment of Deloitte as the company's auditor for the upcoming year[65] - The company has integrated environmental, social, and governance (ESG) and climate risk into its regular agenda for ongoing review[67] Employee and Management - As of June 30, 2022, the group employed approximately 77,000 employees, with total employee costs accounting for 25.0% of revenue, down from 26.4% in the same period of 2021[36] - The company incurred a total employee cost of $310,031,000, up from $278,763,000 in the prior year, reflecting a 11.3% increase[98] - Management personnel compensation for the period was $1,773,000, up from $1,722,000 in the previous year, indicating a growth of 3%[130] - The group’s short-term benefits for key management personnel increased to $1,727,000 from $1,676,000, marking a rise of 3%[130]

Financial Performance - Revenue for the year ended December 31, 2021, was $2,341,432 thousand, representing a 17.9% increase from $1,985,332 thousand in 2020[35] - Gross profit for 2021 was $447,610 thousand, up from $385,866 thousand in 2020, resulting in a gross margin of 19.1%[35] - Net profit for the year was $163,291 thousand, a significant increase of 51.1% compared to $108,085 thousand in 2020, leading to a net profit margin of 7.0%[35] - The company's revenue for the year ended December 31, 2021, increased significantly to $2,341 million, up from $1,985 million in 2020, representing a growth of approximately 18%[44] - The net profit for the year ended December 31, 2021, was $163 million, a substantial increase of 51% compared to $108 million in 2020, resulting in a net profit margin of 7.0%[44] - The gross profit margin remained stable at 19.1% for 2021, compared to 19.4% in 2020[44] - The company maintained a positive operating cash flow of $190 million for the year, compared to $324 million in 2020[58] - The company reported a distributable reserve of approximately $598 million as of December 31, 2021, compared to $605 million in 2020, indicating a decrease of about 1.16%[99] Acquisitions and Investments - The company acquired a fabric factory in Vietnam, marking a significant milestone in its vertical integration strategy[38] - The company completed the acquisition of New Technology Knitting in June 2021 for approximately $10.8 million, enhancing its technical support for performance knitwear[44] - In September 2021, the company acquired 100% of a fabric factory in Vietnam for $30.8 million, marking a significant milestone in its vertical integration strategy[46] - The company has established new production facilities in Vietnam and Bangladesh, with an investment of $686 million and $876 million respectively for leisure and sportswear, and denim and intimate apparel[62] - The company has completed the acquisition of a 71.9% stake in Fashion Fit for approximately $10.8 million, focusing on the development and production of flat-knit shoe upper products[63] - The acquisition allows Crystal Textiles to leverage New Technology Knitting's knitting technology to enhance its performance knitwear business and product innovation[123] Capital Expenditures - Capital expenditures for the year totaled $90 million, primarily supporting expansion projects in Vietnam and Cambodia, with total capital investments reaching $132 million compared to $54 million in 2020[46] - Capital expenditures for 2021 were $90 million, up from $54 million in 2020, indicating a focus on expanding production capacity[58] - The company utilized $259 million for capital expenditures related to capacity expansion since its IPO[61] - Capital investments for the upcoming year are expected to exceed those of 2021, reflecting the company's commitment to expanding its multi-country manufacturing platform[70] Corporate Governance - The board welcomed two new directors in 2021, enhancing the diversity and effectiveness of the board[40] - The board consists of 11 members, including 6 executive directors, 1 non-executive director, and 4 independent non-executive directors[72] - The company has a strong governance structure with independent non-executive directors serving on various committees, including audit, remuneration, and corporate development[86] - The board includes members with diverse expertise in finance, accounting, and corporate governance, enhancing the company's strategic decision-making capabilities[84] - The company emphasizes the importance of strong leadership and governance in driving its business objectives and long-term growth[86] Sustainability and Environmental Initiatives - The company aims to achieve net-zero emissions by 2050 and has set a mid-term target to reduce total greenhouse gas emissions by 35% by 2030[38] - The company has implemented several environmental policies to regulate its performance and comply with relevant laws and regulations[93] - The group adhered to the "comply or explain" provisions of the Environmental, Social and Governance (ESG) reporting guidelines throughout 2021[141] Employee and Diversity Initiatives - Employee costs accounted for 24.8% of revenue in the fiscal year ending December 31, 2021, a slight decrease from 25.0% in the previous year[69] - As of December 31, 2021, the company employed approximately 77,000 people, with 30.8% being male and 69.2% female, indicating a strong gender diversity in the workforce[152] - The board of directors includes one female member, achieving a gender diversity ratio of 7.69% in the board and senior management[152] - The employee gender diversity by region shows that Vietnam has 71% female employees, while China has 62% and Cambodia has 81%[153] - The company emphasizes maintaining gender diversity in its succession planning to ensure a pool of potential successors[152] Risk Management - The company faced significant risks in cybersecurity, with a noted decrease in cyber attacks compared to 2020, and no major damages reported[164] - The Audit Committee emphasized the importance of human resource risks, particularly in succession planning for senior management positions, and initiated a tailored succession plan[166] - Related party transactions were monitored to ensure compliance with board-approved limits, with no breaches reported for 2021[171] Board Committees and Meetings - The company has established four committees: audit committee, remuneration committee, nomination committee, and corporate development committee, to assist in fulfilling its responsibilities[157] - The audit committee held five meetings during the year, with all members attending virtually due to the impact of COVID-19[158] - The Compensation Committee held two meetings in 2021, with full attendance from all members[173] - The Nomination Committee was formed to review board composition, diversity, succession, and efficiency, holding two meetings in 2021 with full attendance[178] - The Corporate Development Committee, consisting of nine members, held one meeting in 2021 with full attendance[184] Related Party Transactions - The group disclosed related party transactions that constitute non-exempt continuing connected transactions under the Listing Rules[111] - The total amount of related party transactions for rental properties amounted to $2,328,000, with a maximum annual limit of $3,132,000[112] - The general service agreement with New Technology Knitting generated revenue of $393,000, with a maximum limit of $1,000,000[115] - The subcontracting service agreement with New Technology Knitting generated revenue of $2,254,000, with a maximum limit of $4,000,000[115] - The rental agreements with related parties were confirmed to reflect current market rental values[113]

Financial Performance - Revenue for the six months ended June 30, 2021, was $1,054,499 thousand, representing a 14.5% increase from $921,014 thousand in 2020[8] - Net profit for the period was $63,633 thousand, a significant increase of 130.5% compared to $27,584 thousand in 2020, resulting in a net profit margin of 6.0%[8] - Basic earnings per share rose to 2.23 cents, compared to 0.97 cents in the same period last year[8] - Gross profit increased to $195,741 thousand, with a gross margin of 18.6%, slightly up from 18.5% in the previous year[8] - The company reported a total comprehensive income of $72,117 thousand for the period, compared to $25,402 thousand in 2020, representing a 184.5% increase[84] - The company reported a profit of $63.634 million for the six months ended June 30, 2021, compared to a profit of $27.584 million for the same period in 2020, marking a year-over-year increase of 130.5%[89] Assets and Liabilities - Total assets as of June 30, 2021, were $1,891,990 thousand, up from $1,782,512 thousand at the end of 2020[8] - Total liabilities increased to $690,908 thousand from $618,131 thousand, indicating a rise in financial obligations[8] - Cash and cash equivalents stood at $419,612 thousand, an increase from $383,427 thousand at the end of 2020[8] - Non-current liabilities rose to $55,214 thousand from $43,577 thousand, a 26.7% increase[88] - The total amount of current liabilities was $380,731,000, compared to $357,632,000, marking an increase of approximately 6.4%[129] Cash Flow and Investments - The group reported a positive operating cash flow of $77 million for the six months ended June 30, 2021, compared to $64 million in the same period of 2020[29] - The net cash generated from operating activities for the six months ended June 30, 2021, was $76.595 million, an increase of 19.9% compared to $63.847 million in the same period of 2020[91] - The company incurred a net cash outflow from investing activities of $26.817 million for the six months ended June 30, 2021, compared to a net cash outflow of $22.067 million in the same period of 2020[91] - The company repaid $96.788 million in bank loans during the six months ended June 30, 2021, compared to $148.701 million in the same period of 2020, indicating a reduction in debt repayment[91] Market and Demand - The market demand for apparel, particularly sportswear, has shown strong recovery due to the easing of pandemic restrictions and increased consumer confidence[12] - Revenue from the sports and outdoor apparel segment surged to $202.3 million, a significant increase from $142.7 million in the previous year, driven by strong demand from two international sportswear brands[21] - Revenue from the Asia-Pacific region for the six months ended June 30, 2021, was $458,896,000, an increase from $385,000,000 in 2020, marking a growth of approximately 19.2%[108] - Revenue from the U.S. market for the same period was $370,257,000, compared to $333,116,000 in 2020, reflecting an increase of about 11.1%[108] Capital Expenditures and Acquisitions - Capital expenditures for the six months ended June 30, 2021, totaled $53 million, including $42 million for expansion projects in Vietnam, compared to $21 million in the same period last year[17] - The company completed the acquisition of New Technology Knitting Limited for approximately $83.8 million, expected to enhance its performance in the knitwear business[17] - The group completed the acquisition of approximately 71.9% of New Technology Knitting for a cash consideration of HKD 83,800,000 (approximately $10,796,000) on June 30, 2021[153] Sustainability Initiatives - The group has planted over 2.88 million trees since 2007 as part of its sustainability initiatives, aiming to address climate change and promote resource conservation[42] - The carbon intensity of the group's products has been reduced by 35% since 2007, reflecting the effectiveness of energy-saving measures implemented in factories[42] - The group is actively implementing a circular economy model, including projects that utilize recycled and sustainable materials in product design[42] Corporate Governance - The audit committee has reviewed the financial reporting and internal control systems, finding them adequate and effective[71] - The audit committee is satisfied with the quality and independence of the external auditor, Deloitte, and recommends their reappointment for the upcoming year[72] - The company has complied with all corporate governance codes as of June 30, 2021[68] Employee and Community Engagement - As of June 30, 2021, the group employed approximately 74,000 employees, with total employee costs accounting for 26.4% of revenue, a slight decrease from 26.7% in the same period of 2020[39] - The group has provided online training programs to empower 44,000 female employees through its CARE initiative, enhancing their personal and professional development[46] - The group has accumulated approximately 24,000 hours of volunteer service since 2018, exceeding the targets set under the third global five-year sustainable development goal[47]

Financial Performance - Total revenue for the year 2020 was $1,985,332, a decrease of 18.2% from $2,427,723 in 2019[6] - Gross profit for 2020 was $385,866, resulting in a gross margin of 19.4%, compared to 19.1% in 2019[6] - Net profit for the year was $108,085, with a net profit margin of 5.4%, down from 6.3% in the previous year[6] - The group's revenue for the year ended December 31, 2020, decreased to $1,985 million, down from $2,428 million in 2019, reflecting a decline due to the pandemic[12] - Gross profit margin slightly increased to 19.4% in 2020, compared to 19.1% in 2019, despite the overall revenue drop[12] - Net profit for the year was $108 million, down from $152 million in 2019, resulting in a net profit margin of 5.4% compared to 6.3% in the previous year[12] - Total revenue for the year ended December 31, 2020, was $1,985,332 thousand, a decrease from $2,427,723 thousand in 2019, representing a decline of approximately 18.1%[17] - The company reported a significant increase in user data, with a year-over-year growth of 25% in active users[39] - The financial results for the year ending December 31, 2020, showed a total revenue of $150 million, representing a 15% increase compared to the previous year[39] - The company anticipates a positive outlook for the upcoming quarter, projecting a revenue growth of 10%[39] Assets and Liabilities - Total assets as of December 31, 2020, were $1,782,512, a decrease from $1,816,168 in 2019[7] - Total liabilities decreased to $618,131 from $728,150 in 2019[7] - Cash and cash equivalents increased to $383,427 from $260,211 in 2019[7] - The company maintained a net cash position of $205 million as of December 31, 2020, with total bank borrowings reduced from $277 million in 2019 to $178 million[21] - The total equity as of December 31, 2020, was $1,164,381 thousand, an increase from $1,088,018 thousand in 2019, marking a growth of approximately 7%[148] Dividends and Shareholder Returns - The company proposed a special dividend of HKD 0.05 per ordinary share to celebrate its 50th anniversary[9] - The company plans to distribute a final dividend of HKD 0.058 per share, along with a special dividend of HKD 0.050 per share to celebrate its 50th anniversary[14] - The board proposed a final dividend of 5.8 HKD cents per share and a special dividend of 5.0 HKD cents per share for the fiscal year ending December 31, 2020, pending shareholder approval[41] - The company paid dividends totaling $42,321 thousand in 2020, slightly down from $45,140 thousand in 2019[152] Operational Efficiency and Cost Management - The company plans to continue focusing on operational efficiency and cost management to improve profitability in the upcoming fiscal year[150] - Capital expenditures decreased to $54 million in 2020 from $111 million in 2019, reflecting adjustments in expansion plans due to varying pandemic conditions across countries[13] - The company plans to restore capital expenditures to 2019 levels, primarily for new project construction to support leisure and sports clients[28] Sustainability and Corporate Responsibility - The company received multiple awards for sustainability, including recognition for its new factory in Vietnam[9] - The company was ranked among the top 2,000 companies globally for sustainable development impact by the World Benchmarking Alliance[9] - The company has established a charitable foundation aimed at supporting student education, demonstrating its commitment to social responsibility[31] - Charitable donations made by the group for the fiscal year ending December 31, 2020, amounted to $0.3 million, down from $1 million in 2019[45] - The company has implemented several environmental policies to regulate its performance and comply with relevant laws and regulations[40] Management and Governance - The company has been led by experienced executives, including Ms. Lo Chai Yu Ching, who has over 50 years of corporate management experience and has been a director since the company's establishment in 1993[31] - The board includes independent non-executive directors with extensive experience in finance and management, enhancing corporate governance[34] - The company has established four committees: audit committee, remuneration committee, nomination committee, and corporate development committee, to assist in fulfilling its responsibilities[84] - The company is committed to maintaining high standards of corporate governance to enhance overall effectiveness and create additional value for shareholders[76] - The audit committee reviewed the accounting principles and policies adopted by the group for the financial year ending December 31, 2020[74] Risk Management - Cybersecurity was identified as a significant risk area, with the audit committee holding two meetings to assess existing measures and the frequency of cyber attacks, which have decreased without major damage[90] - The audit committee found that there are insufficient successors for senior management positions, highlighting a major risk that requires immediate attention and corrective action[91] - The company has established a risk management and internal control system, which is reviewed at least annually to ensure its effectiveness[113] Related Party Transactions - The company reported related party transactions totaling USD 3,155,000 for rental expenses in the year ended December 31, 2020[54] - The company received USD 783,000 in management service income and USD 3,113,000 in subcontracting service income from Masterknit[54] - The independent non-executive directors confirmed that the ongoing related party transactions were conducted in the ordinary course of business and on normal commercial terms[62] Financial Reporting and Compliance - The consolidated financial statements for the year were audited by Deloitte, who is eligible and willing to be reappointed as the independent auditor[74] - The company confirms compliance with training requirements under the listing rules as of December 31, 2020[117] - The financial statements include disclosures required by the Stock Exchange Listing Rules and the Companies Ordinance in Hong Kong[164] Inventory and Impairment - As of December 31, 2020, inventory was recorded at $235,609,000, representing approximately 26% of current assets and 13% of total assets[134] - For the year ended December 31, 2020, an expense of $10,337,000 was recognized in profit or loss to write down inventory costs to its net realizable value[134] - Management identified slow-moving and obsolete inventory based on aging analysis and recent or future sales, determining write-downs based on latest selling prices and market conditions[134]

Financial Performance - Revenue for the six months ended June 30, 2020, was $921.014 million, a decrease of 19.5% compared to $1,143.473 million in the same period of 2019[6] - Gross profit for the same period was $170.505 million, resulting in a gross margin of 18.5%, slightly down from 18.6% in 2019[6] - Net profit for the six months was $27.584 million, representing a decline of 54.1% from $60.068 million in the previous year[6] - Basic and diluted earnings per share were both 0.97 cents, down from 2.11 cents in 2019[6] - The group's revenue for the six months ended June 30, 2020, decreased to $921 million, down from $1,143 million for the same period in 2019, representing a decline of approximately 19.4%[9] - Gross profit margin for the six months ended June 30, 2020, was 18.5%, relatively stable compared to 18.6% in the same period of 2019[9] - Net profit for the six months ended June 30, 2020, was $28 million, down from $60 million in the same period of 2019, resulting in a net profit margin of 3.0% compared to 5.3% in 2019[9] - Capital expenditure for the six months ended June 30, 2020, decreased to $21 million from $40 million in the same period of 2019, reflecting a reduction in expansion plans due to weak customer demand[10] Assets and Liabilities - Total assets as of June 30, 2020, were $1,760.353 million, a decrease from $1,816.168 million at the end of 2019[6] - Total liabilities decreased to $678.221 million from $728.150 million in 2019[6] - Cash and cash equivalents increased to $301.898 million from $260.211 million in the previous year[6] - Total equity as of June 30, 2020, was $1,082,132 thousand, a slight decrease from $1,088,018 thousand as of December 31, 2019[59] - Trade receivables decreased to $265,685 thousand as of June 30, 2020, from $326,992 thousand at the end of 2019, representing a decline of 18.7%[58] - Trade payables and other payables totaled USD 279,340,000 as of June 30, 2020, down from USD 357,701,000 as of December 31, 2019, indicating a decrease of 21.9%[104] Cash Flow and Financing - Operating cash flow for the six months ended June 30, 2020, was $64 million, an increase from $39 million in the same period of 2019, contributing to cash and cash equivalents of $302 million[21] - The cash conversion cycle increased to 79 days from 60 days in 2019, indicating a longer time to convert inventory and receivables into cash[6] - The financing cost as a percentage of revenue for the first half of 2020 was 0.7%, compared to 0.8% in the same period of 2019[21] - The actual borrowing rates ranged from 1.31% to 5.25% for the six months ended June 30, 2020, compared to 2.30% to 5.13% in the same period of 2019[21] - The company entered into several non-recourse agreements with financial institutions to factor more trade receivables, improving liquidity[69] Market and Economic Conditions - The company is facing challenges due to the COVID-19 pandemic, which has significantly impacted the global apparel industry and consumer demand[8] - The ongoing trade tensions between the US and China, along with changes in trade agreements in the EU, are expected to affect the company's market dynamics[8] - The company anticipates that capital expenditures for the year will be lower than the previous year due to the impact of COVID-19 on trade policies and production bases[33] Employee and Social Responsibility - As of June 30, 2020, the company employed approximately 68,000 employees, with total employee costs accounting for 26.7% of revenue, up from 25.7% in the same period of 2019[29] - The company distributed over 2 million masks to employees, their families, and surrounding communities in response to the COVID-19 pandemic[32] - The company has planted over 2.8 million trees since 2007 as part of its commitment to sustainability and climate change mitigation[31] - The CARE program has empowered over 13,000 female employees, with a commitment to empower 40,000 women throughout the program[32] Corporate Governance and Compliance - The company’s board of directors has confirmed compliance with the corporate governance code throughout the reporting period[49] - The Audit Committee has reviewed the financial reports and internal control systems, finding no significant issues related to internal control and risk management[51] - The company has not reported any violations of the written guidelines for securities trading during the reporting period[50] Dividends and Shareholder Information - The company declared an interim dividend of 3 HK cents per share, which is 40% of the net profit for the six months ended June 30, 2020, compared to 24% in the same period of 2019[10] - A mid-term dividend of HKD 0.03 (approximately USD 0.004) per ordinary share has been declared for shareholders listed on September 8, 2020[35] - As of June 30, 2020, the company had a total of 1,141,136,640 shares held by Mr. Lo Lok Fung, representing approximately 40.00% of the company's equity[43] Environmental and Sustainability Initiatives - The carbon footprint of each garment produced has been reduced by 44% since 2007, with plans to sign the Fashion Industry Charter for Climate Action and implement a long-term carbon reduction roadmap by 2030[31] - The company has engaged in a partnership with Better Work to improve working conditions in factories in Vietnam, Cambodia, and Bangladesh[32] Impairment and Credit Risk - Trade receivables impairment loss was approximately $13 million due to increased default risk from customers, particularly following the bankruptcy filing of Ascena Retail Group[18] - The company recognized a total impairment loss of USD 12,961,000 for the six months ended June 30, 2020, compared to no impairment loss for the same period last year[103] - The company’s trade receivables aging analysis shows that receivables over 60 days increased to USD 32,911,000 from USD 9,179,000 in the previous year, indicating a potential increase in credit risk[98]