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]

Financial Performance - Revenue for the year ended December 31, 2019, was $2,427.7 million, a decrease of 2.7% from $2,495.97 million in 2018[9] - Gross profit margin improved to 19.1% in 2019 from 18.8% in 2018, indicating better cost management[9] - Net profit for the year was $151.9 million, up 1.1% from $149.2 million in the previous year[9] - The company's revenue for the year ended December 31, 2019, was $2,428 million, a slight decrease from $2,496 million in 2018[14] - Gross profit for the year was $463 million, with a gross margin of 19.1%, compared to 18.8% in 2018[14] - Net profit increased to $152 million, resulting in a net profit margin of 6.3%, up from 6.0% in 2018[25] - The total assets decreased to $1,816.2 million in 2019 from $1,839.9 million in 2018[9] - The net debt to equity ratio improved significantly to 1.0% from 13.4% in the previous year, reflecting stronger financial health[9] - The group's operating cash flow for 2019 was $313 million, an increase from $231 million in 2018[26] - Total comprehensive income for the year was $130,809 thousand, down from $149,192 thousand in 2018, indicating a decline of approximately 12.3%[152] Production and Capacity Management - The company plans to accelerate the redistribution of production capacity from China to non-China bases to mitigate trade tensions[11] - The company reduced its production capacity in China, leading to 74% of its capacity located outside China as of December 31, 2019, compared to 66% in 2018[15] - The company aims to optimize and expand its manufacturing platform and acquire new clients in the sportswear and outdoor apparel sectors[11] Market and Client Development - A new international sportswear and outdoor apparel client has been introduced, expected to drive future revenue growth[11] - The company is focusing on expanding its product portfolio, particularly in the sportswear and outdoor apparel markets, to drive growth[31] - The company has begun supplying products to a new internationally recognized sportswear brand, aiming to strengthen strategic relationships[31] Corporate Governance and Management - The board consists of 9 members, including 5 executive directors and 4 independent non-executive directors, responsible for strategy, business plans, and financial approvals[33] - The company emphasizes corporate culture, business ethics, and sustainability, as highlighted in Mr. Lo's book published in 2016[34] - The company has received multiple awards recognizing its contributions to industrial development and social responsibility[34] - The board's responsibilities include convening shareholder meetings and implementing resolutions passed at those meetings[33] COVID-19 Impact and Response - The ongoing COVID-19 pandemic has prompted the company to take measures to minimize impacts on employees and operations[11] - The outbreak of COVID-19 is expected to negatively impact the global economy and the company's revenue and profit in 2020, though the financial impact could not be estimated at the time of the report[28] - The company has taken measures to mitigate the adverse effects of the COVID-19 outbreak on its operations and personnel[48] Shareholder and Dividend Information - The board proposed a final dividend of HKD 0.085 per share, bringing the total dividend for the year to HKD 0.125, which is 30% of the net profit[14] - The company reported a final dividend of HKD 0.085 per share, totaling approximately HKD 242,490,000 (equivalent to about USD 31,137,000) for the year ended December 31, 2019[49] - The company has adopted a dividend policy approved by the board on December 5, 2018, allowing for dividends to be distributed in cash or other means deemed appropriate by the board[50] Employee and Compensation Information - Employee costs accounted for 24.7% of revenue in 2019, slightly down from 24.8% in 2018, with approximately 80,000 employees[29] - The Executive Directors received a total remuneration of 6,638 thousand USD for the year ended December 31, 2019, which includes performance bonuses of 3,301 thousand USD[112] - The five highest-paid individuals in the group received a total of 7,120 thousand USD, which includes performance bonuses of 4,225 thousand USD[114] Risk Management and Internal Controls - The company maintained a strong focus on internal controls to ensure the accuracy of financial reporting, as highlighted in the auditor's report[145] - The audit committee reviewed internal audit reports regarding the implementation of internal controls across all departments, focusing on sales and general management expenses[99] - The company has established effective risk management and internal control systems, with no significant deficiencies identified during the annual review[123] Related Party Transactions - The company has entered into multiple leases with related parties, with rental payments reflecting market rates as confirmed by the property valuer, and the annual rent is determined based on normal commercial terms[65] - Independent non-executive directors reviewed the ongoing related party transactions, confirming they were conducted in the ordinary course of business and on normal commercial terms[75] Financial Reporting and Compliance - The audit committee reviewed the accounting principles and policies adopted by the group for the financial year ending December 31, 2019[84] - The group adhered to the "comply or explain" provisions of the Environmental, Social, and Governance (ESG) reporting guidelines throughout 2019[85] - The company has adopted the corporate governance code principles as outlined in the stock exchange's listing rules[86] Asset Management - The goodwill and indefinite-lived intangible assets have a carrying value of $74,941,000 and $31,777,000 respectively as of December 31, 2019[141] - Inventory is recorded at $275,539,000, representing approximately 31% of total current assets and 15% of total assets as of December 31, 2019[142] - The company’s total liabilities decreased from $853,513 thousand in 2018 to $728,150 thousand in 2019, a reduction of approximately 14.7%[149] Future Outlook - The company plans to maintain a similar level of capital expenditure in the coming year as in 2019[30] - The company anticipates that the COVID-19 pandemic will negatively impact global economic conditions and its revenue and profit for 2020, although the financial impact could not be estimated at the time of the report[48]

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].