Financial Performance - For the six months ended June 30, 2019, the company's revenue decreased to $1,143 million from $1,200 million for the same period in 2018, representing a decline of approximately 4.8%[5]. - Net profit for the six months was $60 million, resulting in a net profit margin of 5.3%. Excluding one-time costs related to the redistribution plan, net profit would have been approximately $74 million, equating to a net profit margin of 6.5%[13]. - Total revenue for the first half of 2019 was $1,143,473 thousand, down from $1,200,286 thousand in the same period of 2018, representing a decrease of approximately 4.7%[18]. - Net profit decreased from $71 million in the first half of 2018 to $60 million in the first half of 2019, with net profit margin dropping from 5.9% to 5.3%[30]. - The company reported a total comprehensive income of $62,145 thousand for the six months ended June 30, 2019, compared to $65,584 thousand for the same period in 2018[91]. - The company's profit attributable to shareholders for the six months ended June 30, 2019, was USD 60,068,000, a decrease of 14.7% from USD 70,503,000 in the same period of 2018[150]. Revenue Breakdown - Revenue from leisurewear increased to $484,956 thousand (42.4%) in the first half of 2019, compared to $473,677 thousand (39.5%) in the first half of 2018[18]. - Revenue from denim decreased to $280,446 thousand (24.6%) in the first half of 2019 from $304,650 thousand (25.4%) in the same period of 2018[18]. - Revenue contribution from the production base in China decreased from 14% in 2018 to 9% in the first half of 2019[14]. - The revenue contribution from overseas production capacity increased from 64% in the first half of 2018 to 73% in the first half of 2019[16]. - Revenue from the Asia-Pacific region for the six months ended June 30, 2019, was $429,521,000, down from $478,840,000 in 2018, a decline of about 10.3%[139]. - Revenue from the U.S. market decreased to $429,220,000 in the six months ended June 30, 2019, from $448,055,000 in 2018, representing a decrease of approximately 4.5%[139]. Costs and Expenses - Gross profit margin for the period was 18.6%, down from 19.0% in the previous year, reflecting the impact of costs associated with the accelerated expansion of non-China production facilities[13]. - Sales and distribution expenses were controlled at 1.3% of revenue in the first half of 2019, down from 1.7% in the same period of 2018[27]. - The company successfully reduced regular administrative costs, with administrative expenses (excluding one-time costs) accounting for 9.9% of revenue in the first half of 2019, down from 10.4% in the same period of 2018[27]. - The company incurred a total employee cost of $307,862,000 for the six months ended June 30, 2019, compared to $293,416,000 in the same period of 2018, an increase of about 4.9%[145]. - The company recognized a severance compensation of $11,941,000 as part of its restructuring plan during the six months ended June 30, 2019[142]. - The financing costs for the six months ended June 30, 2019, amounted to $8,988,000, compared to $8,394,000 in the same period of 2018, indicating an increase of approximately 7.1%[142]. Assets and Liabilities - Total assets as of June 30, 2019, were $1,867,810 thousand, an increase from $1,839,952 thousand as of December 31, 2018[5]. - Total liabilities stood at $853,852 thousand, slightly up from $853,513 thousand at the end of 2018[5]. - The company's net debt to equity ratio increased to 15.6% from 13.4% in the previous year, indicating a rise in leverage[5]. - Cash and cash equivalents decreased to $232,825 thousand from $299,891 thousand at the end of 2018, reflecting cash flow challenges[5]. - Inventory increased to $314,786 thousand from $277,807 thousand, reflecting a rise of 13.3%[79]. - The company's cash and cash equivalents decreased to $234,075 thousand from $302,326 thousand, a decline of 22.6%[79]. Dividends and Shareholder Returns - The company declared an interim dividend of 4 HK cents per ordinary share, which represents 24% of the net profit for the period, compared to 21% for the same period in 2018[13]. - The board declared an interim dividend of HKD 0.04 per share, totaling approximately HKD 114,113,000 (equivalent to about USD 14,601,000) for the six months ended June 30, 2019, compared to USD 14,496,000 for the same period in 2018[149]. Strategic Initiatives - The company is accelerating its capacity redistribution plan from China to non-China production bases, particularly in Vietnam, in response to increasing demand[11]. - The ongoing trade tensions between the US and China continue to pose significant uncertainties for the company's operations[10]. - The company plans to reduce exports of Chinese products to the U.S. in response to impending tariffs, which may negatively impact revenue and profitability[44]. - The company aims to enhance its product portfolio while maintaining a diversified product range, focusing on core categories and reducing non-core categories[44]. - The company has established a new customer relationship with an international sportswear brand, indicating a strategic focus on the sportswear market[44]. Governance and Compliance - The audit committee, composed of three independent non-executive directors, reviewed the financial reports and found no significant issues regarding internal controls and risk management[67]. - The company has established a risk management and internal control system, which is reviewed at least annually to ensure its effectiveness[69]. - The company has maintained good corporate governance practices throughout the reporting period[65]. - The company has adopted a written guideline for securities trading for relevant employees, ensuring compliance with the standard code[66]. IFRS 16 Adoption - The company has adopted IFRS 16 "Leases" for the first time, replacing IAS 17 "Leases" and related interpretations[96]. - The transition to IFRS 16 did not have a significant impact on the financial performance and position of the group[96]. - As of January 1, 2019, the company recognized lease liabilities of $29,440,000 and right-of-use assets of $64,753,000 due to the adoption of IFRS 16[112]. - The total impact on assets was an increase from $375,478,000 to $400,262,000 after the adoption of IFRS 16[126].

Company Operations - The company operates approximately 20 production facilities across five countries: Vietnam, China, Cambodia, Bangladesh, and Sri Lanka[12]. - The company has established a diversified production platform across five countries, enhancing its competitive advantage in the apparel manufacturing industry[33]. - The company is expanding its production capacity in Southeast Asia to meet increasing customer demand, benefiting from lower operational costs[53]. Product Portfolio - The company has a diversified product portfolio, primarily consisting of casual wear, denim, intimate apparel, knitwear, and sports and outdoor wear, all of which hold leading market positions[12]. - The contribution of different product categories to revenue in 2018 was as follows: Denim (38%), Underwear (10%), Sports and Outdoor (25%), Sweaters (10%), and Casual Wear (17%)[47]. - Casual wear was the largest contributor to revenue growth, with a growth rate of 19.2% in 2018[48]. Financial Performance - The company's total revenue for 2018 reached $2.50 billion, representing a 14.6% increase compared to $2.18 billion in 2017[32]. - Gross profit for 2018 was $469.72 million, with a gross margin of 18.8%, down from 20.3% in 2017[32]. - Net profit attributable to shareholders was $149.19 million, with basic earnings per share of 5.24 cents, a decrease from 6.20 cents in the previous year[32]. - The group's revenue increased by 14.6% to $2,496 million in 2018, compared to $2,178 million in 2017[42]. - The overall gross profit margin decreased from 20.3% in 2017 to 18.8% in 2018, with gross profit totaling $469.722 million[66]. Sustainability and Innovation - The company is committed to sustainable development and aims to produce suitable products at reasonable costs in a rapidly changing industry environment[12]. - The company aims to leverage advanced technologies such as AI and IoT in its operations to enhance product development and efficiency[12]. - The company has established a third global environmental plan for the next five years to monitor its environmental performance[12]. Corporate Governance - The board of directors consists of 9 members, including 5 executive directors and 4 independent non-executive directors, responsible for strategic planning and financial oversight[87]. - The company has a robust audit committee led by experienced professionals, ensuring financial integrity and compliance with regulations[100]. - The company is committed to maintaining high standards of corporate governance based on the principles outlined in the listing rules[186]. Employee Management - The company emphasizes continuous training opportunities for employees to enhance their skills and knowledge of industry quality standards[84]. - The increase in employee costs was primarily due to the appreciation of the RMB and increased incentives to factory workers to address labor shortages[84]. - The company plans to continue relocating production facilities to low-cost countries to counteract rising labor costs[84]. Dividends and Shareholder Information - The company plans to pay a final dividend of 8.4 HK cents per share, in addition to an interim dividend of 4 HK cents, totaling 12.4 HK cents for the year[32]. - The board proposed a final dividend of HKD 0.084 per share, totaling a dividend payout of 30% of the group's net profit for the year[43]. - The company reported a final dividend of HKD 0.084 per ordinary share, totaling approximately HKD 239,279,000 (equivalent to about USD 30,548,000) for the fiscal year ending December 31, 2018[121]. Market Presence and Strategy - The company expanded its business into the fast-growing sportswear and outdoor apparel markets through an acquisition in December 2016[35]. - The company aims to leverage industry consolidation opportunities arising from external challenges, positioning itself for long-term growth[29]. - The company is focused on innovation and development in the textile and garment sector, with board members involved in research and development initiatives[95]. Awards and Recognition - The company was ranked 17th in Fortune's 2016 list of "Change the World" companies, recognizing its significant contributions to social and environmental issues[12]. - The company received multiple awards in 2018, including the UNIQLO Quality Supplier Award, highlighting its commitment to quality and sustainability[56]. Related Party Transactions - The company has entered into multiple lease agreements with related entities, with a total rental expense of $3,124,000 for the year[148]. - The transactions with Masterknit are classified as continuing connected transactions, with applicable percentage ratios exceeding 0.1% but below 5%, thus exempt from independent shareholder approval[165]. - Independent non-executive directors have reviewed the continuing connected transactions and confirmed compliance with the relevant regulations[168].