Financial Performance - The company's revenue for the year increased by 0.6% to HKD 4,074,700,000, compared to HKD 4,051,100,000 in the previous year[2] - The gross profit margin decreased from 18.7% to 18.4%, while the net profit margin attributable to shareholders fell to 6.5%[2] - The annual profit attributable to shareholders was HKD 263,500,000, a decline of 10.0% from HKD 292,600,000 in the previous year[2] - The total comprehensive income for the year was HKD 187,042,000, down from HKD 195,429,000[9] - The adjusted profit before tax was HKD 380,779,000, compared to HKD 399,444,000 in the previous year[23] - Basic and diluted earnings per share attributable to the company’s shareholders were HKD 49.3, down from HKD 54.8 in the previous year[23] - The total sales for the year amounted to HKD 4,074,700,000, a slight increase of HKD 23,600,000 (or 0.6%) compared to last year's total sales of HKD 4,051,100,000[108] - The gross profit for the year decreased by 1.0% to HKD 748,700,000, with a gross profit margin slightly declining from 18.7% to 18.4%[108] - The pre-tax profit decreased by 4.7% to HKD 380,800,000, resulting in a pre-tax profit margin decline from 9.9% to 9.3%[108] - The net profit attributable to shareholders was HKD 263,500,000, a decrease of HKD 29,100,000 (or 10.0%) from last year's HKD 292,600,000[111] Revenue Sources - Revenue from mainland China reached HKD 2,332,360,000, up from HKD 1,964,572,000, with a profit of HKD 458,933,000 compared to HKD 267,590,000 last year[19] - Sales from mainland China increased to 57.2% of total sales (2024) from 48.5% (2023), a rise of 8.7%[85] - Sales revenue from sportswear and apparel was HKD 4,071,097 thousand in 2024, slightly up from HKD 4,040,529 thousand in 2023, reflecting a growth of approximately 0.8%[64] - The sales from the three major markets (Mainland China, the US, and Europe) accounted for approximately 87% of total sales in the review year, compared to 86% in 2023[61] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.08 per share, consistent with the previous year[2] - The company plans to declare a final dividend of HKD 0.08 per share, maintaining the same as last year, with a total annual dividend of HKD 0.38 per share[111] - The proposed final dividend for the fiscal year ending March 31, 2024, is HKD 0.08 per share, consistent with the previous year, leading to a total dividend of HKD 0.38 per share[120] Assets and Liabilities - The total assets less current liabilities amounted to HKD 1,959,319,000, an increase from HKD 1,832,814,000[12] - The net asset value decreased to HKD 1,634,416,000 from HKD 1,682,246,000[13] - The total non-current assets increased to HKD 1,518,222 thousand in 2024 from HKD 1,412,551 thousand in 2023, representing a growth of approximately 7.5%[31] - Current assets decreased slightly to HKD 1,652,265 thousand in 2024 from HKD 1,662,196 thousand in 2023, a decline of about 0.6%[31] - The total liabilities decreased from HKD 1,241,933 thousand in 2023 to HKD 1,211,168 thousand in 2024, a reduction of approximately 2.5%[31] - The bank loan amount as of March 31, 2024, was HKD 1,486,300,000, an increase from HKD 1,132,000,000 in the previous year[112] - The debt ratio as of March 31, 2024, was 25.7%, significantly up from 6.4% the previous year[113] Operational Developments - The company completed the acquisition of industrial land and factory in Indonesia, covering approximately 93,500 square meters, with production expected to start in 2026[59] - The Vietnam Long An plant, integrated into the group in 2022, has completed renovation and optimization, officially commencing production in April 2024[104] - The company has introduced advanced automation equipment and systems to enhance production efficiency and precision, contributing to sustainable development[92] Foreign Exchange and Financial Management - The company reported a net foreign exchange loss of HKD 7,836 thousand in 2024, down from HKD 26,473 thousand in 2023, indicating an improvement in foreign exchange management[49] - The company faced foreign exchange risk primarily from transactions in USD and RMB, and will use financial instruments to manage potential risks[114] - The company continues to monitor foreign exchange risks and manage them appropriately[91] Other Financial Metrics - The company reported a net employee benefit expense of HKD 1,052,636 thousand in 2024, up from HKD 1,042,700 thousand in 2023, indicating a rise of about 1%[49] - Inventory levels rose to HKD 704,869 thousand in 2024 from HKD 677,184 thousand in 2023, an increase of approximately 4%[31] - Bank interest income increased to HKD 5,502,000 (2024) from HKD 3,806,000 (2023), representing a growth of 44.6%[68] - Total revenue decreased to HKD 19,855,000 (2024) from HKD 22,722,000 (2023), a decline of 12.3%[68] - Tax expenses rose to HKD 108,746,000 (2024) from HKD 98,501,000 (2023), an increase of 10.4%[74] - The actual tax rate increased to 28.6% (2024) from 24.7% (2023), a rise of 3.9%[87] - Other income and gains amounted to HKD 19,900,000 (2024), down from HKD 22,700,000 (2023)[88] Outlook and Strategy - The board maintains a cautiously optimistic outlook for the business in the fiscal year 2025, emphasizing strict cost control measures and further optimization of diversified production bases[118] - No significant acquisitions or disposals of subsidiaries occurred in the fiscal year ending March 31, 2024, with the last major acquisition being the purchase of assets from the Vietnam Long An factory in April 2022[116] - The company has no significant contingent liabilities as of March 31, 2024[117]

Revenue Performance by Region - Revenue from mainland China increased to 1,474,210 thousand HKD in 2023, up from 1,195,852 thousand HKD in 2022, representing a growth of 23.3%[4] - Revenue from the US decreased to 413,577 thousand HKD in 2023, down from 574,996 thousand HKD in 2022, a decline of 28.1%[4] - Revenue from Europe decreased to 335,336 thousand HKD in 2023, down from 457,970 thousand HKD in 2022, a decline of 26.8%[4] - Revenue from Japan decreased to 48,757 thousand HKD in 2023, down from 64,685 thousand HKD in 2022, a decline of 24.6%[4] - Revenue from other regions decreased slightly to 250,037 thousand HKD in 2023, down from 254,052 thousand HKD in 2022, a decline of 1.6%[4] - The company's sales in Mainland China increased by HKD 278,400,000, accounting for 58.5% of total sales, up 11.6% from the previous year[28] - Sales in the US and European markets decreased by HKD 161,400,000 and HKD 122,600,000, respectively, with their share of total sales dropping by 6.2% and 4.7%[28] Overall Financial Performance - Total revenue for the group decreased to 2,521,917 thousand HKD in 2023, down from 2,547,555 thousand HKD in 2022, a decline of 1.0%[4] - Profit before tax decreased to 326,585 thousand HKD in 2023, down from 331,587 thousand HKD in 2022, a decline of 1.5%[4] - Net profit for the period decreased to 236,211 thousand HKD in 2023, down from 245,857 thousand HKD in 2022, a decline of 3.9%[4] - Basic earnings per share decreased to 0.43 HKD in 2023, down from 0.45 HKD in 2022, based on a net profit attributable to owners of 229,225 thousand HKD and 533,800,000 issued ordinary shares[11] - The company's profit attributable to owners for the six months ended September 30, 2023, was HK$229,200,000, a decrease of HK$9,900,000 (or 4.1%) compared to HK$239,100,000 in the same period last year[56] - The profit margin attributable to owners decreased from 9.4% to 9.1% during the review period[56] - Total sales for the period remained stable at HKD 2,521,900,000 (2022: HKD 2,547,600,000), with a decrease of HKD 25,700,000 (or 1.0%)[76] - Gross profit slightly decreased by HKD 5,900,000 (or 1.1%) to HKD 517,900,000 (2022: HKD 523,800,000), with a gross margin decline of 0.1% from 20.6% to 20.5%[76] - Pre-tax profit slightly decreased by HKD 5,000,000 (or 1.5%) to HKD 326,600,000 (2022: HKD 331,600,000), with a pre-tax profit margin decline of 0.1% from 13.0% to 12.9%[76] - Revenue for the six months ended September 30, 2023, was HKD 2,521,917 thousand, a slight decrease from HKD 2,547,555 thousand in the same period last year[111] - Gross profit for the period was HKD 517,863 thousand, down from HKD 523,788 thousand in the previous year[111] - Profit before tax for the six months ended September 30, 2023, was HKD 326,585 thousand, compared to HKD 331,587 thousand in the same period last year[111] - Net profit attributable to the company's owners was HKD 229,225 thousand, down from HKD 239,111 thousand in the previous year[111] - Basic earnings per share for the period were 42.94 HK cents, compared to 44.79 HK cents in the same period last year[111] Dividend and Shareholder Information - The company declared an interim dividend of 0.30 HKD per share for the six months ended September 30, 2023[10] - The company declared an interim dividend of HKD 0.30 per share, totaling HKD 160,140,000, unchanged from the previous year[33] - The company declared an interim dividend of HK$0.30 per share for the six months ended September 30, 2023, with a payout ratio of 69.9%[56] - The company declared an interim dividend of HKD 0.30 per share for the six months ended September 30, 2023, unchanged from the previous year[97] - The company's major shareholders include Time Easy Investment Holdings Limited with a 13.61% stake and Excel Skill with a 6.05% stake[65] Financial Position and Cash Flow - The company's interest expenses increased by HKD 13,700,000 (179.1%) due to higher loan interest rates and increased bank loans for capacity expansion[29] - Bank loan interest and lease liability interest totaled HKD 21,397,000, a significant increase from HKD 7,667,000 in the previous year[31] - The company's depreciation of property, plant, and equipment decreased to HKD 46,560,000 from HKD 50,014,000 in the previous year[31] - Exchange losses decreased significantly to HKD 6,355,000 from HKD 26,925,000 in the previous year[31] - Accounts receivable within 30 days increased to HKD 570,416,000 from HKD 268,080,000 in the previous period[39] - Bank loans supported by corporate guarantees increased to HKD 760,201,000 from HKD 622,823,000 in the previous period[42] - As of September 30, 2023, the company held cash and bank balances of HK$646,800,000, an increase from HK$515,400,000 as of March 31, 2023[57] - The company's committed but not provided amounts for factory renovations, machinery, and equipment purchases were HK$95,948,000 as of September 30, 2023, slightly down from HK$96,780,000 as of March 31, 2023[49] - The company's debt ratio as of September 30, 2023, was 6.5% (March 31, 2023: 6.4%)[81] - The company's bank loan utilization as of September 30, 2023, was HKD 760,200,000 (March 31, 2023: HKD 622,800,000)[80] - Total non-current assets decreased to HKD 1,365,602K as of September 30, 2023, compared to HKD 1,412,551K on March 31, 2023[138] - Total current assets increased to HKD 1,928,178K as of September 30, 2023, from HKD 1,662,196K on March 31, 2023[138] - Net current assets rose to HKD 706,989K as of September 30, 2023, up from HKD 420,263K on March 31, 2023[138] - Total assets minus current liabilities increased to HKD 2,072,591K as of September 30, 2023, compared to HKD 1,832,814K on March 31, 2023[138] - Net cash flow from operating activities was HKD 174,181K for the six months ended September 30, 2023, up from HKD 167,903K in the same period in 2022[143] - Net cash used in investing activities decreased to HKD 60,733K for the six months ended September 30, 2023, from HKD 103,652K in the same period in 2022[143] - Net cash from financing activities was HKD 58,920K for the six months ended September 30, 2023, compared to a net cash used of HKD 26,440K in the same period in 2022[143] - Cash and cash equivalents at the end of the period increased to HKD 646,820K as of September 30, 2023, from HKD 452,100K as of September 30, 2022[143] - Total equity attributable to owners of the company increased to HKD 1,700,402K as of September 30, 2023, from HKD 1,629,452K on March 31, 2023[139] - Non-current liabilities increased to HKD 315,760K as of September 30, 2023, from HKD 150,568K on March 31, 2023[139] Operational and Strategic Developments - The company has diversified its production bases across Mainland China, Indonesia, and Vietnam to mitigate risks and enhance operational flexibility[77] - The company's new factories in Foshan (Mainland China), Bandung (Indonesia), and Long An (Vietnam) are expected to increase production capacity and reduce policy and business environment risks[74] - The company employed approximately 15,000 staff as of September 30, 2023 (March 31, 2023: approximately 15,000)[85] - The company received government subsidies in Mainland China and Hong Kong to promote the manufacturing industry and maintain employment rates[125] Tax and Other Financial Metrics - The effective tax rate rose to 27.7%, up 1.8% from the previous year, due to a higher proportion of profits from Mainland China, which has a higher tax rate[29] - Other income and gains amounted to HKD 8,800,000 (2022: HKD 13,700,000), including HKD 5,000,000 from government incentives or subsidies (2022: HKD 10,300,000) and HKD 1,600,000 from bank interest income (2022: HKD 1,100,000)[78] - Other comprehensive income for the period was a loss of HKD 86,894 thousand, compared to a loss of HKD 136,560 thousand in the previous year[112] - Total comprehensive income for the period was HKD 149,317 thousand, up from HKD 109,297 thousand in the same period last year[112] - The company did not have any potentially dilutive ordinary shares issued during the periods ended September 30, 2023, and 2022[132] - The company's financial statements were prepared in accordance with historical cost convention, except for financial assets measured at fair value through profit or loss[123] Risk Management and Outlook - The company faces foreign exchange risks primarily from USD and RMB transactions, which are partially offset by matching sales and purchases in the same currency[60] - The company's management remains cautiously optimistic about the business outlook despite an uncertain economic environment and soft consumer demand[57] - The company has no significant seasonal impact on its borrowing needs and believes its current financial resources are sufficient for operational and expansion plans[58] - The company's directors and CEO held no registered interests or short positions in the company or any related corporations as of September 30, 2023[63]

[Cover and Financial Highlights](index=1&type=section&id=cover_and_highlights) [Financial Highlights](index=1&type=section&id=financial_highlights) The company's operating revenue slightly decreased by 1.0% to HKD 2.52 billion, with profit attributable to owners declining 4.1% to HKD 229 million, while gross margin remained stable and interim dividend per share was maintained 2023/24 Interim Financial Performance Summary | Indicator | For the six months ended September 30, 2023 | Prior Year Period | Year-on-year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (HKD) | 2,521,900,000 | 2,547,600,000 | -1.0% | | Gross Profit Margin (%) | 20.5% | 20.6% | -0.1 percentage points | | Profit Attributable to Owners of the Company (HKD) | 229,200,000 | 239,100,000 | -4.1% | | Interim Dividend (HKD per share) | 0.30 | 0.30 | Flat | [Condensed Consolidated Interim Financial Statements](index=2&type=section&id=condensed_consolidated_interim_financial_statements) [Condensed Consolidated Income Statement](index=2&type=section&id=condensed_consolidated_income_statement) The Group's operating revenue slightly decreased by 1.0% to HKD 2.522 billion, with gross profit declining 1.1% and profit for the period decreasing 3.9% to HKD 236 million due to higher finance costs and tax expenses Condensed Consolidated Income Statement (For the six months ended September 30) | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,521,917 | 2,547,555 | -1.0% | | Gross Profit | 517,863 | 523,788 | -1.1% | | Profit Before Tax | 326,585 | 331,587 | -1.5% | | Profit for the Period | 236,211 | 245,857 | -3.9% | | Profit Attributable to Owners of the Company | 229,225 | 239,111 | -4.1% | Earnings Per Share | Item | 2023 | 2022 | | :--- | :--- | :--- | | Basic Earnings Per Share (HK cents) | 42.94 | 44.79 | | Diluted Earnings Per Share (HK cents) | 42.94 | 44.79 | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=condensed_consolidated_statement_of_comprehensive_income) Total comprehensive income for the period increased to HKD 149 million, influenced by profit for the period and exchange losses of HKD 84.14 million from overseas operations - Total comprehensive income for the period was **HKD 149 million**, primarily impacted by profit for the period of **HKD 236 million** and exchange losses from overseas operations of **HKD 84.14 million**[27](index=27&type=chunk)[28](index=28&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=condensed_consolidated_statement_of_financial_position) As of September 30, 2023, total assets reached HKD 3.29 billion and net assets HKD 1.76 billion, with net current assets significantly increasing to HKD 710 million, while interest-bearing bank borrowings also rose Condensed Consolidated Statement of Financial Position Summary | Item (HKD thousands) | September 30, 2023 (Unaudited) | March 31, 2023 (Audited) | | :--- | :--- | :--- | | Total Non-current Assets | 1,365,602 | 1,412,551 | | Total Current Assets | 1,928,178 | 1,662,196 | | Total Current Liabilities | 1,221,189 | 1,241,933 | | **Net Current Assets** | **706,989** | **420,263** | | Total Non-current Liabilities | 315,760 | 150,568 | | **Net Assets** | **1,756,831** | **1,682,246** | [Notes to the Financial Statements](index=6&type=section&id=notes_to_the_financial_statements) The notes provide detailed information on the basis of preparation, accounting policy changes, segment performance, revenue, finance costs, taxation, dividends, earnings per share, and asset/liability specifics, with new HKFRS adoption having no material impact [3. Operating Segment Information](index=7&type=section&id=3.%20Operating%20Segment%20Information) The Group's business is segmented by customer location, with Mainland China revenue growing 23.3% to become the largest contributor at 58.5% of total revenue, while US, European, and Japanese markets saw significant declines - The Group's operating segments are classified by customer location (destination of sales) into Mainland China, the United States, Europe, Japan, and other regions[22](index=22&type=chunk) Operating Revenue by Segment (For the six months ended September 30) | Region | 2023 (HKD thousands) | 2022 (HKD thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Mainland China | 1,474,210 | 1,195,852 | +23.3% | | United States | 413,577 | 574,996 | -28.1% | | Europe | 335,336 | 457,970 | -26.8% | | Japan | 48,757 | 64,685 | -24.6% | | Other Regions | 250,037 | 254,052 | -1.6% | | **Total** | **2,521,917** | **2,547,555** | **-1.0%** | [5. Finance Costs](index=8&type=section&id=5.%20Finance%20Costs) Total finance costs surged by 179% to HKD 21.4 million, primarily driven by a substantial increase in bank loan interest from HKD 7.4 million to HKD 21.25 million Finance Costs Details (For the six months ended September 30) | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | | :--- | :--- | :--- | | Interest on bank borrowings | 21,246 | 7,396 | | Interest on lease liabilities | 151 | 271 | | **Total** | **21,397** | **7,667** | [8. Interim Dividend](index=10&type=section&id=8.%20Interim%20Dividend) The Board declared an interim dividend of HKD 0.30 per share for the six months ended September 30, 2023, consistent with the prior year, totaling approximately HKD 160 million - The Board declared an interim dividend of **HKD 0.30 per share**, consistent with the prior year period[42](index=42&type=chunk) [9. Earnings Per Share](index=10&type=section&id=9.%20Earnings%20Per%20Share) Basic earnings per share are calculated based on HKD 229 million profit attributable to owners and 534 million ordinary shares, with diluted earnings per share being identical due to no dilutive effects - Basic earnings per share were **HKD 0.4294**, calculated based on profit for the period of **HKD 229,225,000** and **533,800,000** ordinary shares in issue[43](index=43&type=chunk) [12. Interest-bearing Bank Borrowings](index=12&type=section&id=12.%20Interest-bearing%20Bank%20Borrowings) As of September 30, 2023, total interest-bearing bank borrowings increased to HKD 760 million, with HKD 510 million current and HKD 250 million non-current, at interest rates ranging from 4.93% to 6.13% Interest-bearing Bank Borrowings Summary | Item (HKD thousands) | September 30, 2023 | March 31, 2023 | | :--- | :--- | :--- | | Current bank borrowings | 509,641 | 544,323 | | Non-current bank borrowings | 250,560 | 78,500 | | **Total** | **760,201** | **622,823** | [Management Discussion and Analysis](index=13&type=section&id=management_discussion_and_analysis) [Business Review](index=13&type=section&id=business_review) Despite a challenging market with declining consumer demand and high inventory, the Group maintained stable performance, driven by a significant HKD 278 million sales increase in Mainland China, while actively diversifying production bases in China, Indonesia, and Vietnam - The market environment is severe, impacted by both declining consumer demand and high inventory adjustments[51](index=51&type=chunk) - Sales in the Mainland China market significantly increased by **HKD 278 million**, with its sales contribution rising from **46.9% to 58.5%**, while sales in European and American markets decreased due to high interest rates[54](index=54&type=chunk) - The Group continues to expand capacity, with the Foshan factory integrated into the system, the Bandung factory in Indonesia commenced production, and the Long An factory in Vietnam completed renovation and is ready for production[71](index=71&type=chunk) [Financial Performance Review](index=14&type=section&id=financial_performance_review) Total sales and gross margin remained stable, but profit before tax margin slightly decreased to 12.9%, with sales and distribution expenses down 16.5%, administrative expenses up 3.8%, and finance costs surging 179.1% due to increased borrowings and rising interest rates - Total sales, gross profit, and profit before tax remained largely consistent with the prior year period, with a profit before tax margin of **12.9%**[91](index=91&type=chunk) - Sales and distribution expenses decreased by **16.5%**, administrative expenses increased by **3.8%**, and other operating expenses significantly decreased by **76.9%** due to reduced exchange losses[75](index=75&type=chunk) - Finance costs surged by **179.1%** year-on-year due to increased bank borrowings and rising interest rates[75](index=75&type=chunk) - The effective tax rate increased from **25.9% to 27.7%**, primarily due to a higher proportion of profit derived from Mainland China, which has a higher tax rate[75](index=75&type=chunk) [Liquidity and Financial Resources](index=16&type=section&id=liquidity_and_financial_resources) The Group maintained robust liquidity with HKD 647 million in cash and bank balances, a low gearing ratio of 6.5%, and ample bank loan facilities, with HKD 760 million utilized - As at September 30, 2023, the Group held cash and bank balances of **HKD 647 million**, an increase from **HKD 515 million** at the beginning of the period[78](index=78&type=chunk) - The gearing ratio (net debt/total capital) was **6.5%**, largely consistent with **6.4%** at the beginning of the period, maintaining a healthy level[94](index=94&type=chunk) - As at the end of the reporting period, bank loan facilities amounted to **HKD 1.106 billion**, with **HKD 760 million** utilized[108](index=108&type=chunk) [Outlook](index=16&type=section&id=outlook) Despite an uncertain economic environment and weak consumer demand, the Board remains cautiously optimistic, with management focusing on market monitoring, cost control, and optimizing production base layout to navigate challenges and capitalize on opportunities - Facing economic uncertainty and weak demand, the Board maintains a cautiously optimistic outlook on business prospects[94](index=94&type=chunk) - Management will address risks and challenges and achieve higher-level development through continuous market monitoring, cost control, and optimization of production bases[94](index=94&type=chunk)[90](index=90&type=chunk) [Other Information](index=17&type=section&id=other_information) [Employees and Remuneration Policy](index=17&type=section&id=employees_and_remuneration_policy) As of September 30, 2023, the Group employed approximately 15,000 staff, with remuneration based on performance, experience, and industry practice, complemented by statutory pension schemes - As at September 30, 2023, the Group employed approximately **15,000** staff[109](index=109&type=chunk) - Employee remuneration is determined based on performance, experience, and industry practice, with statutory pension schemes provided[81](index=81&type=chunk) [Corporate Governance](index=18&type=section&id=corporate_governance) The company complied with the Corporate Governance Code, with a deviation where the Chairman and CEO roles are combined, which the Board believes does not affect power balance, and the Audit Committee has reviewed the interim financial statements - The company complied with the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer are held by the same person (**Mr. Chung Yuk Sing**)[83](index=83&type=chunk)[98](index=98&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed these unaudited condensed consolidated interim financial statements[100](index=100&type=chunk) [Interim Dividend and Closure of Register](index=19&type=section&id=interim_dividend_and_closure_of_register) The company announced an interim dividend of HKD 0.30 per share, payable on December 11, 2023, with shareholder registration suspended from November 24 to 28, 2023, to determine eligibility - An interim dividend of **HKD 0.30 per share** was declared, payable on **December 11, 2023**[85](index=85&type=chunk) - Shareholder registration will be suspended from **November 24 to November 28, 2023**[85](index=85&type=chunk)

Financial Performance - The company's revenue increased by 10.4% to HKD 4,051,100,000, compared to HKD 3,668,400,000 in the previous year[2] - The profit attributable to owners for the year was HKD 292,600,000, up 6.6% from HKD 274,600,000 in the previous year[2] - The company's pre-tax profit for the year was HKD 399,444,000, an increase from HKD 363,938,000 in the previous year[3] - Total comprehensive income for the year amounted to HKD 195,429,000, down from HKD 343,882,000 in the previous year[10] - The net profit attributable to the company's owners for 2023 was HKD 300,943 thousand, up from HKD 282,581 thousand in 2022, reflecting a growth of 6.4%[36] - The group achieved a record total sales of HKD 4,051,100,000, an increase of HKD 382,700,000 (10.4%) compared to last year's sales of HKD 3,668,400,000[78] - Gross profit increased by 16.3% to HKD 755,900,000, with the gross profit margin rising from 17.7% to 18.7%[78] - The group recorded a pre-tax profit of HKD 399,400,000, representing a 9.8% increase from HKD 363,900,000 in the previous year, with a stable pre-tax profit margin of 9.9%[78] Dividends - The board proposed a final dividend of HKD 0.08 per share and a special dividend of HKD 0.06 per share, compared to HKD 0.14 and HKD 0.00 respectively in the previous year[2] - The proposed final dividend is HKD 0.08 per share, down from HKD 0.14 in 2022, with an additional special dividend of HKD 0.06 per share, marking a total dividend of HKD 0.44 for the fiscal year, compared to HKD 0.36 in 2022[98] - The company plans to propose a final dividend of HKD 0.08 per share for 2023, down from HKD 0.14 per share in 2022, while a special dividend of HKD 0.06 will be proposed for the first time[50] Assets and Liabilities - Non-current assets totaled HKD 1,412,551,000, slightly up from HKD 1,404,279,000 in the previous year[11] - Current assets decreased to HKD 1,662,196,000 from HKD 1,721,123,000 in the previous year[11] - The total capital value decreased to HKD 1,682,246,000 from HKD 1,721,689,000 in the previous year[13] - Non-current liabilities totaled HKD 150,568 thousand in 2023, significantly higher than HKD 75,283 thousand in 2022, indicating an increase of 99.8%[22] - The company’s net asset value decreased to HKD 1,682,246 thousand in 2023 from HKD 1,721,689 thousand in 2022, a decline of 2.3%[22] Expenses - The company reported a total tax expense of HKD 98,501 thousand for 2023, which is an increase of 21.1% from HKD 81,357 thousand in 2022[48] - Employee benefit expenses rose to HKD 863,326 thousand in 2023, compared to HKD 841,980 thousand in 2022, marking an increase of 2.5%[47] - The cost of sold inventory and subcontracted services rose to HKD 3,295,189,000 in 2023, compared to HKD 3,018,152,000 in 2022, indicating an increase of about 9.2%[110] - The company reported a significant increase in interest expenses by HKD 16,500,000 (321.8%) due to rising loan rates amid the U.S. interest rate hike[140] - The overall tax expense increased by HKD 17,100,000 (21.1%) in line with the rise in profits, resulting in an effective tax rate of 24.7%[140] Cash and Liquidity - The group maintained a strong liquidity position, holding cash and bank balances of HKD 515,400,000 as of March 31, 2023, up from HKD 455,800,000 a year earlier[61] - The debt ratio decreased to 6.4% as of March 31, 2023, down from 11.2% the previous year, indicating improved financial stability[62] - As of March 31, 2023, the group's bank loan facilities amounted to HKD 1,132,000,000, an increase from HKD 990,000,000 in 2022[142] - The total utilized bank loan facilities as of March 31, 2023, were HKD 622,800,000, a decrease from HKD 648,600,000 in the same period of 2022[142] Foreign Exchange and Risk Management - The group faced foreign exchange risks primarily from transactions in USD and RMB, and utilized financial instruments to manage potential risks[63] - The company continues to monitor its foreign exchange risk and employs appropriate tools to manage and mitigate this risk[144] - The company reported a net foreign exchange loss of HKD 26,473,000 in 2023, compared to a net foreign exchange gain of HKD 3,921,000 in 2022[110] Governance and Corporate Structure - The company’s board consists of seven executive directors and four independent non-executive directors, ensuring a diverse governance structure[96] - The company has complied with the corporate governance code as per the listing rules, with minor deviations noted[100] - The annual general meeting is scheduled for August 22, 2023, to approve the proposed dividends[99] Strategic Initiatives - The group plans to focus on diversifying production bases and enhancing talent development to strengthen core competitiveness amid economic uncertainties[85] - The group is set to continue its strategic initiatives in response to the evolving market landscape, emphasizing high-quality development and operational stability[85] - The company has established new production bases in Vietnam, enhancing production efficiency and operational flexibility[136] - The group expanded its production capacity through the acquisition of two factories, which contributed to record sales and enhanced operational flexibility[59] Receivables and Collection Efficiency - The company’s receivables decreased to HKD 345,113 thousand in 2023 from HKD 393,843 thousand in 2022, a decline of 12.4%[50] - Accounts receivable from the top three customers accounted for 64%, 12%, and 22% of total accounts receivable, respectively, compared to 51%, 24%, and 22% in 2022, showing a significant increase in reliance on the largest customer[116] - Accounts receivable decreased to HKD 345,113,000 from HKD 393,843,000, indicating improved collection efficiency[132]

Revenue and Profit Growth - Revenue for the six months ended September 30, 2022, increased to HKD 2,547,555 thousand, up 26.2% from HKD 2,018,830 thousand in the same period last year[2] - Gross profit rose to HKD 523,788 thousand, a 41.7% increase compared to HKD 369,672 thousand in the prior year period[2] - Profit before tax grew to HKD 331,587 thousand, up 44.0% from HKD 230,242 thousand in the previous year[2] - Net profit attributable to owners of the company increased to HKD 239,111 thousand, a 42.6% rise from HKD 167,676 thousand in the same period last year[2] - Basic earnings per share increased to 44.79 HK cents, up from 31.52 HK cents in the prior year period[2] - Net profit for the period was 245,857 thousand HKD, up 41.4% YoY from 173,875 thousand HKD[13] - Total sales increased by 26.2% to a record HKD 2,547,600,000, with a gross profit increase of 41.7% to HKD 523,800,000 and a gross margin rise from 18.3% to 20.6%[46] - Pre-tax profit surged by 44.0% to HKD 331,600,000, with the pre-tax profit margin increasing from 11.4% to 13.0%[46] - The company's net profit attributable to owners rose by 42.6% to HKD 239,100,000, with a net profit margin increase from 8.3% to 9.4%[49] Regional Revenue Performance - Revenue from mainland China increased to 1,195,852 thousand HKD, up 10.2% YoY from 1,084,721 thousand HKD[13] - Revenue from Europe grew significantly to 574,996 thousand HKD, a 63.3% increase YoY from 352,033 thousand HKD[13] - US revenue rose to 457,970 thousand HKD, up 41.8% YoY from 323,055 thousand HKD[13] - Total revenue from sportswear and apparel sales reached 2,547,555 thousand HKD, a 26.2% increase YoY from 2,018,830 thousand HKD[15] Financial Position and Cash Flow - Total assets increased to HKD 1,823,431 thousand as of September 30, 2022, compared to HKD 1,796,972 thousand as of March 31, 2022[5] - Net cash generated from operating activities was HKD 167,903 thousand, a decrease of 18.3% from HKD 205,471 thousand in the prior year period[9] - Cash and cash equivalents at the end of the period stood at HKD 452,100 thousand, compared to HKD 464,213 thousand at the end of the previous year[9] - Accounts receivable increased to HKD 855,164 thousand as of September 30, 2022, compared to HKD 393,843 thousand as of March 31, 2022, with 80.5% of receivables within 30 days[25][26] - Accounts payable stood at HKD 322,892 thousand as of September 30, 2022, with 93.0% due within 90 days[27] - Bank loans increased to HKD 701,615 thousand as of September 30, 2022, from HKD 648,557 thousand as of March 31, 2022, with interest rates ranging from 2.61% to 4.42%[29][30] - The company held cash and bank balances of HKD 452,100,000 as of September 30, 2022, compared to HKD 455,800,000 as of March 31, 2022[50] - The company's bank loan facility was HKD 992,100,000 as of September 30, 2022, with HKD 701,600,000 utilized, up from HKD 648,600,000 utilized as of March 31, 2022[50] - The company's debt-to-equity ratio increased to 14.2% as of September 30, 2022, from 11.2% as of March 31, 2022[51] Expenses and Costs - Sales and distribution expenses increased by 27.6% to HKD 4,800,000, while administrative expenses rose by 36.0% to HKD 46,300,000 due to wage adjustments and increased staffing[48] - Interest expenses increased by 204.6% to HKD 5,200,000 due to higher loan interest rates and increased bank borrowings for capacity expansion[48] - The company benefited from the depreciation of non-USD currencies (RMB, IDR, VND), which reduced manufacturing costs[47] Dividends and Shareholder Information - Interim dividend per share increased to 0.30 HKD, up 36.4% YoY from 0.22 HKD[21] - Basic earnings per share rose to 0.45 HKD, up 42.6% YoY from 0.32 HKD[22] - The company declared an interim dividend of HKD 0.30 per share, up from HKD 0.22 per share in the previous year[49] - The company declared an interim dividend of 30 HK cents per share for the six months ended September 30, 2022, compared to 22 HK cents in the same period last year[76] - The company's issued share capital remained unchanged at 533,800,000 shares with a nominal value of HKD 0.01 per share, totaling HKD 5,338 thousand[31] - The company's major shareholder, Pou Hing Industrial Co. Ltd., holds 192,000,000 shares, representing 35.96% of the issued share capital[60] - The company's executive director, Mr. Chung Yu-sing, holds 72,650,000 shares through Time Easy Investment Holdings Limited, representing 13.61% of the issued share capital[57] - The company's executive director, Mr. Wong Wing-biu, holds 32,320,000 shares through Excel Skill International Limited, representing 6.05% of the issued share capital[57] - The company's executive director, Mr. Chan Siu-ying, holds 36,500,800 shares, representing 6.84% of the issued share capital[57] - The company's executive director, Mr. Chung Chi-kit, holds 8,500,000 shares, representing 1.59% of the issued share capital[57] Corporate Governance and Compliance - The company's audit committee reviewed the unaudited condensed interim financial statements for the six months ended September 30, 2022, including accounting principles, risk management, and internal control matters[72] - The company's remuneration committee consists of two independent non-executive directors and one executive director, with Mr. Chan Cheuk Ho as the chairman[73] - The company's nomination committee consists of two independent non-executive directors and one executive director, with Mr. Chung Yu Sing as the chairman[74] - The company's chairman, Mr. Chung Yu Sing, has been serving as both the chairman and CEO since June 30, 2013, which is a deviation from the corporate governance code[69] - The company's directors confirmed that they have complied with the standard code of conduct for securities transactions during the six months ended September 30, 2022[70] - The company's directors have no interests in any businesses that directly or indirectly compete with the company's business, except for the disclosed interests[66] - The company's interim report is available on its website and the Hong Kong Exchanges and Clearing Limited's issuer website[78] Acquisitions and Related Party Transactions - The company acquired 100% equity of Beyond Top Co., Ltd. for USD 6,692,000 (approximately HKD 52,500,000), with identifiable net assets at fair value of HKD 52,500 thousand[32] - Related party transactions included rental expenses of HKD 4,144 thousand and service fees of HKD 4,670 thousand with Pouyuen Vietnam, a company indirectly controlled by a major shareholder[33] - The company recognized a right-of-use asset of HKD 11,514 thousand and a lease liability of HKD 11,682 thousand related to a lease with a related party as of September 30, 2022[34] - Payables to Pouyuen Vietnam decreased to HKD 3,159 thousand as of September 30, 2022, from HKD 4,121 thousand as of March 31, 2022, and were unsecured, interest-free, and repayable on demand[36] Operational Performance and Expansion - The Vietnam production base outperformed, with sales and revenue significantly surpassing pre-pandemic levels[42] - The company expanded production capacity by acquiring factories in West Java, Indonesia, Foshan, China, and Long An, Vietnam[43] - The company employed approximately 15,000 staff as of September 30, 2022, unchanged from March 31, 2022[55] Government Subsidies and Other Income - Government subsidies increased to 10,284 thousand HKD, up 93.2% YoY from 5,322 thousand HKD[16] - The company received government incentives and subsidies totaling HKD 10,300,000, contributing to other income and gains[49] Contingent Liabilities and Share Capital Activities - The company has no significant contingent liabilities as of September 30, 2022[54] - The company did not engage in any share capital fundraising activities during the six months ended September 30, 2022[67] - The company did not purchase, redeem, or sell any of its listed securities during the six months ended September 30, 2022[68] Comprehensive Income and Foreign Exchange Impact - Total comprehensive income for the period decreased to HKD 109,297 thousand, down 44.4% from HKD 196,570 thousand in the previous year due to foreign exchange losses[4]

Financial Performance - Revenue for the fiscal year ended March 31, 2022, was HKD 3,668 million, an increase of 12.9% from HKD 3,249 million in the previous year[34] - Profit attributable to owners of the company for the fiscal year was HKD 275 million, down 12.4% from HKD 314 million in the previous year[34] - Basic earnings per share decreased to HKD 0.515 from HKD 0.589, representing a decline of 12.6%[34] - Gross profit decreased by 0.3% to HKD 650,200,000, with a gross profit margin dropping from 20.1% to 17.7%[45] - The company's profit before tax fell by 13.8% to HKD 363,900,000, resulting in a profit before tax margin decline from 13.0% to 9.9%[45] - Net profit attributable to shareholders was HKD 274,600,000, down HKD 39,000,000 (12.4%) from HKD 313,600,000 last year, with a net profit margin decreasing from 9.7% to 7.5%[50] - The company achieved a record total sales of HKD 3,668,400,000, an increase of HKD 419,500,000 (12.9%) compared to last year's sales of HKD 3,248,900,000[45] - The company reported a total of 72,650,000 shares held by Time Easy Investment Holdings Limited, representing 13.61% of the issued share capital[97] - The major shareholder 宝成 holds 192,000,000 shares, which is 35.97% of the issued share capital[100] Assets and Liabilities - Total assets increased to HKD 3,125 million, up 21.5% from HKD 2,573 million in the previous year[34] - Non-current assets increased to HKD 1,404,279,000 from HKD 1,124,131,000 in the previous year, reflecting a growth of 24.8%[80] - Current assets rose to HKD 1,721,123,000, while current liabilities increased to HKD 1,328,430,000, resulting in a net current asset value of HKD 392,693,000[80] - Total liabilities increased to HKD 1,796,972,000 from HKD 1,616,262,000, which is an increase of about 11.2%[184] - Equity attributable to owners of the Company grew to HKD 1,673,649,000, up from HKD 1,512,667,000, reflecting an increase of approximately 10.7%[185] Cash Flow and Dividends - The company plans to maintain a high dividend payout ratio of 69.9% for the year, with a proposed final dividend of HKD 0.14 per share[50] - The company paid dividends totaling HKD 197,050,000, compared to HKD 102,362,000 in the previous year, representing an increase of about 93%[190] - The final dividend for 2021 was HKD 63,840,000, while the interim dividend for 2022 was HKD 117,040,000[187] - Cash and bank balances stood at HKD 455,841,000, compared to HKD 442,395,000, showing a slight increase of about 3.0%[184] Operational Developments - The company acquired factories in China and Indonesia to enhance production capacity, aiming to meet the demands of international sportswear brands[38] - The introduction of an intelligent automated warehouse management system has improved logistics efficiency and real-time tracking capabilities[40] - The company reported a significant increase in domestic sales proportion, leveraging local production strategies to reduce logistics costs and time[36] - The company is focusing on expanding production capacity and optimizing its diversified production base configuration for future growth[38] - Research and development investments are being accelerated at the Hong Kong headquarters to drive future growth through high-end product design and innovation[41] Governance and Management - The company has a diverse board with members experienced in various sectors, including finance, law, and management[66][67][68][69] - The company’s leadership team includes individuals with significant experience in human resources management and business development[66] - The company has implemented appropriate insurance arrangements for its directors and senior officers against legal actions[134] - The board believes that all independent non-executive directors maintain their independence and have confirmed their status[89] - The company has arranged appropriate directors' and officers' liability insurance for its board and senior management[95] Market Position and Strategy - The company aims to maintain a strong response capability to market challenges through diversified production strategies[38] - The company plans to enhance its international competitiveness through improved information management systems connecting various production bases[40] - The company has no significant competition concerns due to independent management teams across different groups[106] - The company operates primarily in the manufacture and trading of sportswear and garments across its subsidiaries[197] Compliance and Risk Management - The company has complied with all relevant laws and regulations that significantly impact its operations during the review period[125] - The company has established a risk management and internal control system aimed at preventing significant misstatements or losses, and ensuring effective communication of residual risks to the board[155] - The auditor issued an unqualified opinion regarding the company's disclosed related party transactions[120] Shareholder Engagement - The company has adopted a shareholder communication policy since March 2012, utilizing announcements and reports as primary communication channels[161] - The company’s annual general meeting serves as an effective platform for direct communication between shareholders and the board[161] - Shareholders holding at least 10% of the paid-up capital can request a special general meeting by submitting a written request to the board[158]

Financial Performance - For the six months ended September 30, 2021, the company reported revenue of HKD 2,018,830 thousand, an increase of 4.9% compared to HKD 1,923,855 thousand in the same period of 2020[2] - Gross profit for the same period was HKD 369,672 thousand, down 14.5% from HKD 432,444 thousand year-on-year[2] - The company recorded a profit before tax of HKD 230,242 thousand, a decrease of 25% from HKD 306,862 thousand in the previous year[2] - Net profit for the period was HKD 173,875 thousand, representing a decline of 26.7% compared to HKD 237,395 thousand in the prior year[3] - Basic earnings per share for the company was HKD 31.52, down 27.4% from HKD 43.39 in the same period last year[2] - Total sales increased by 4.9% to HKD 2,018,800,000, compared to HKD 1,923,900,000 in the same period last year, reflecting a growth of HKD 94,900,000[44] - Gross profit decreased by 14.5% to HKD 369,700,000, down from HKD 432,400,000, resulting in a gross margin decline from 22.5% to 18.3%[44] - Profit before tax fell by 25.0% to HKD 230,200,000, with a profit margin decrease from 16.0% to 11.4%[44] - Net profit attributable to shareholders dropped by 27.4% to HKD 167,700,000, down from HKD 230,800,000, leading to a decrease in net profit margin from 12.0% to 8.3%[46] Assets and Liabilities - Total assets as of September 30, 2021, amounted to HKD 3,335,477 thousand, an increase from HKD 2,764,637 thousand as of March 31, 2021[4] - The company’s total liabilities increased to HKD 1,651,674 thousand from HKD 1,413,564 thousand as of March 31, 2021[5] - The company’s net asset value as of September 30, 2021, was HKD 1,683,803 thousand, compared to HKD 1,551,073 thousand as of March 31, 2021[5] - Accounts receivable increased to HKD 489,982,000 as of September 30, 2021, from HKD 348,046,000 as of March 31, 2021, indicating a significant rise in receivables[26] - Bank loans as of September 30, 2021, totaled HKD 371,806,000, down from HKD 428,438,000 as of March 31, 2021, with all loans due within one year[31] Cash Flow - The company's cash and cash equivalents at the end of the period were HKD 464,213 thousand, up from HKD 371,334 thousand at the end of the previous year[8] - The company reported a net cash inflow from operating activities of HKD 205,471 thousand, down from HKD 228,345 thousand in the same period last year[8] - As of September 30, 2021, the company held cash and bank balances of HKD 464,200,000, an increase from HKD 442,400,000 as of March 31, 2021[49] - The company's bank loan facilities amounted to HKD 977,800,000 as of September 30, 2021, with HKD 371,800,000 drawn down[49] - The company maintains a net cash position, with no applicable debt ratio as of September 30, 2021[50] Dividends - The company declared an interim dividend of HKD 0.22 per share, compared to HKD 0.30 per share in the previous year, totaling HKD 117,040,000[22] - The company plans to pay an interim dividend of HKD 0.22 per share, down from HKD 0.30 per share in the previous year[46] Operational Challenges - The company faced significant challenges due to COVID-19, with production in Vietnam halted for over two months due to government restrictions[40] - Labor and global freight costs have risen, negatively impacting profitability during the reporting period[40] Strategic Focus - The company is focusing on enhancing domestic production capacity in China to capitalize on the growing demand for high-quality sports apparel[41] - Investment in digitalization and innovative capabilities is being prioritized to establish a robust foundation for big data operations[42] - The company is actively exploring strategic investments in new business models and technologies to improve responsiveness to changing customer sales patterns[42] Acquisitions - The company has agreed to acquire PT Gelindo Garmentama for an initial consideration of $1,500,000, with an additional $5,000,000 to be injected into the target company's bank account for share subscription[47] Employee and Governance - The company has approximately 13,000 employees as of September 30, 2021, consistent with the number as of March 31, 2021[53] - The company believes it has complied with the corporate governance code as per the listing rules during the six months ended September 30, 2021, with a noted deviation regarding the roles of the chairman and CEO[67] - The company has a three-member audit committee consisting of independent non-executive directors, ensuring proper oversight of financial matters[70] - The company has established a remuneration committee in accordance with listing rules, comprising independent non-executive directors[71] - The company has established a nomination committee as per listing rules, also comprising independent non-executive directors[72] Sustainability - The company is committed to sustainable development and aims to implement best practices that align with global standards to improve environmental conditions and achieve carbon reduction goals[48]

Financial Performance - Revenue for the fiscal year ended March 31, 2021, was HKD 3,249 million, an increase of 7.7% from HKD 3,017 million in 2020[5] - Profit attributable to owners of the company for the fiscal year was HKD 314 million, representing a 40.8% increase from HKD 223 million in the previous year[5] - Basic earnings per share increased to HKD 0.589 from HKD 0.420, reflecting a growth of 40.2%[5] - The company's total sales increased by 7.7% to HKD 3,248,900,000, compared to HKD 3,017,100,000 in the previous year, representing an increase of HKD 231,800,000[16] - Gross profit rose by 21.3% to HKD 652,400,000, with a gross profit margin increasing from 17.8% to 20.1%[16] - The company's profit before tax increased by 43.1% to HKD 422,400,000, with a profit before tax margin rising from 9.8% to 13.0%[16] - Net profit attributable to shareholders was HKD 313,600,000, up 40.3% from HKD 223,500,000, with a net profit margin increasing from 7.4% to 9.7%[18] - Total comprehensive income for the year was HKD 435,949, significantly up from HKD 136,157 in 2020[139] Assets and Liabilities - Total assets as of March 31, 2021, amounted to HKD 2,573 million, up from HKD 2,374 million in 2020, indicating an 8.4% increase[5] - The company's bank loan amount was HKD 975,900,000, an increase from HKD 873,300,000 in the previous year, with utilized loans at HKD 428,400,000[19] - Total liabilities increased to HKD 1,551,073,000 in 2021 from HKD 1,322,604,000 in 2020, an increase of 17.3%[43] - Current assets increased to HKD 1,448,506,000 in 2021, up from HKD 1,235,763,000 in 2020, representing a growth of 17.2%[43] - The net current asset value rose significantly to HKD 492,131,000 in 2021, compared to HKD 246,492,000 in 2020, marking a 99.7% increase[43] Dividends and Shareholder Returns - The company plans to pay a final dividend of HKD 0.12 per share, up from HKD 0.09 per share last year, resulting in a total dividend payout ratio of 71.3%[18] - The board's dividend policy aims to balance shareholder expectations with sufficient capital retention for business development and operations[120] - The interim dividend for 2021 was HKD 159,600,000, following a final dividend of HKD 47,880,000 for 2020[146] Production and Operational Strategies - The company aims to enhance production techniques in down and seamless/sealed production over the next five years[6] - The company has been focusing on local production strategies to increase sales in mainland China[6] - The R&D team is committed to optimizing production technology and enhancing product design to meet market demands[8] - The company continues to invest in advanced production equipment and employee training to optimize production processes and reduce labor dependency[15] Corporate Governance and Compliance - The company emphasizes high levels of corporate governance, adhering to the Corporate Governance Code as per the listing rules[89] - The independent non-executive directors have confirmed their independence annually, ensuring compliance with the relevant listing rules[89] - The company has established appropriate insurance arrangements for its directors and senior officers against potential legal actions[92] - The company provides ongoing professional development for its directors, including briefings and training to enhance their knowledge and skills[92] Risk Management - The group continues to monitor and manage foreign exchange risks associated with transactions primarily in USD and RMB, utilizing financial instruments as necessary[22] - The company is committed to maintaining effective risk management and internal control systems to prevent significant misstatements or losses[112] - The audit committee and independent professionals deemed the company’s risk management and internal control systems effective and adequate[115] Related Party Transactions - The company confirmed that all related party transactions were conducted in the ordinary course of business and on normal commercial terms[78] - The independent non-executive directors reviewed the related party transactions and confirmed their fairness and reasonableness[78] - The company’s auditor issued an unqualified opinion regarding the disclosed related party transactions[79] Employee and Workforce Management - Employee benefits expenditure totaled HKD 836,100,000 for the year, slightly increasing from HKD 836,000,000 in the previous year, indicating stable employee compensation[24] - The group employed approximately 13,000 employees as of March 31, 2021, consistent with the previous year, suggesting stable workforce levels[24] Environmental and Social Responsibility - The company has received awards for green and low-carbon office initiatives, reflecting its commitment to corporate social responsibility[9] - The company has established a comprehensive environmental protection policy to comply with applicable environmental laws in various regions[83] Financial Reporting and Audit - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance and transparency[161] - The consolidated financial statements include all subsidiaries for the year ended March 31, 2021, reflecting the company's comprehensive financial position[162] - The audit report emphasizes the responsibility of the board of directors to prepare financial statements that are true and fair in accordance with applicable financial reporting standards[131]

Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 1,923,855 thousand, an increase of 1.7% compared to HKD 1,891,994 thousand in the same period of 2019[3] - Gross profit for the same period was HKD 432,444 thousand, representing a gross margin of approximately 22.5%, up from HKD 361,972 thousand in 2019[3] - Profit before tax increased to HKD 306,862 thousand, a rise of 43.3% from HKD 214,254 thousand in the previous year[3] - Net profit for the period was HKD 237,395 thousand, compared to HKD 161,847 thousand in 2019, reflecting a year-on-year growth of 46.7%[4] - Basic earnings per share for the period was HKD 43.39 cents, significantly higher than HKD 29.90 cents in the same period last year[3] - Total comprehensive income for the period was HKD 289,314 thousand, compared to HKD 76,031 thousand in 2019, indicating a substantial increase[4] - The operating profit for the six months ended September 30, 2020, was HKD 413,272,000, compared to HKD 321,093,000 for the same period in 2019, reflecting a growth of about 28.7%[14] - The company’s net profit attributable to shareholders increased by 45.1% to HKD 230,800,000, with a profit margin rising from 8.4% to 12.0%[48] Cash Flow and Assets - Cash flow from operating activities was HKD 228,345 thousand, compared to HKD 204,807 thousand in the previous year, showing a growth of 11.5%[9] - Total assets as of September 30, 2020, were HKD 2,554,569 thousand, up from HKD 2,374,347 thousand as of March 31, 2020[5] - The company reported a net asset value of HKD 1,564,207 thousand, an increase from HKD 1,322,604 thousand at the end of the previous fiscal year[6] - The company’s cash and cash equivalents at the end of the period were HKD 371,334 thousand, compared to HKD 250,637 thousand in the same period last year[9] - Cash and bank balances as of September 30, 2020, amounted to HKD 371,300,000, up from HKD 341,200,000 as of March 31, 2020[51] Revenue Sources - Revenue from the China market reached HKD 906,994,000, a rise from HKD 806,253,000 in 2019, marking an increase of about 12.5%[14] - The proportion of orders from China reached a new high of 47.1%, driven by the recovery of the economy and increased health awareness[42] - Total sales increased by 1.7% to HKD 1,923,900,000 compared to HKD 1,892,000,000 in the same period last year[46] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.30 per share, compared to HKD 0.20 per share in 2019, representing a 50% increase[21] - The board declared an interim dividend of HK$0.30 per share for the six months ended September 30, 2020, compared to HK$0.20 per share in 2019[76] Expenses and Costs - The group’s tax expense for the period was HKD 69,467,000, up from HKD 52,407,000 in the previous year, reflecting an increase of about 32.5%[20] - Operating costs were reduced due to government relief measures, leading to a decrease in financing costs by HKD 6,800,000 (or 67.1%) compared to the previous year[47] - The company incurred rental expenses of HKD 3,401,000 for the six months ended September 30, 2020, compared to HKD 3,341,000 in the previous year[32] Debt and Liabilities - The company had bank loans of HKD 372,853,000 with interest rates ranging from 0.87% to 1.05% as of September 30, 2020, down from HKD 530,800,000 with rates of 1.48% to 2.60% as of March 31, 2020[28] - The debt-to-capital ratio significantly improved to 0.1% from 14.3% as of March 31, 2020[52] - As of September 30, 2020, the group had no significant contingent liabilities[55] Employee and Management Information - The group employed approximately 13,000 employees as of September 30, 2020, maintaining the same number as of March 31, 2020[56] Risk Management - The group faces foreign exchange risk primarily from transactions in USD and RMB, and will continue to monitor and manage this risk using appropriate financial instruments[53] - The company reported no overdue or impaired accounts receivable, indicating effective credit risk management[25] - The company’s management continues to monitor overdue balances regularly to minimize credit risk[24] Corporate Governance - Major shareholders include Time Easy with 72,650,000 shares (13.66% of issued share capital) and Excel Skill with 32,320,000 shares (6.08% of issued share capital) as of September 30, 2020[61] - The group has no registered interests or short positions in shares or related shares by any person other than those disclosed for directors and the CEO as of September 30, 2020[63] - Directors hold interests in competitive businesses, including Guangdong Dalian Garment Co., Ltd., which reported total revenue exceeding RMB 78 million for the year ended December 31, 2019[65] - The group will continue to ensure that any potential conflicts of interest are managed appropriately by directors involved in competitive businesses[65] Outlook - The outlook remains cautiously optimistic despite global economic uncertainties, with a focus on collaboration with high-end clients and efficient production coordination[50]

Financial Performance - For the fiscal year ending March 31, 2020, the company reported a revenue of HKD 3,017 million, an increase of 11.7% from HKD 2,701 million in 2019[6]. - The profit attributable to owners of the company was HKD 223 million, representing a 59.3% increase compared to HKD 140 million in the previous year[6]. - Basic earnings per share rose to HKD 0.42, up from HKD 0.28 in 2019, reflecting a growth of 51.8%[6]. - The company's total sales reached HKD 3,017,100,000, an increase of HKD 316,300,000 or 11.7% compared to last year's sales of HKD 2,700,800,000[19]. - Gross profit increased by 28.7% to HKD 537,900,000, with a gross profit margin rising from 15.5% to 17.8%[19]. - The company's pre-tax profit rose by 61.6% to HKD 295,100,000, with the pre-tax profit margin increasing from 6.8% to 9.8%[19]. - The company's profit attributable to owners for the year ended March 31, 2020, was HKD 223.5 million, an increase of HKD 83.1 million (or 59.2%) from HKD 140.4 million in the previous year[23]. - The net profit margin increased from 5.2% to 7.4%, while the operating net profit rose by HKD 38.4 million (or 28.9%) to HKD 171.2 million[23]. - The company reported a significant increase in user data, with a growth rate of 25% year-over-year in active users[40]. - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[40]. Dividends and Shareholder Returns - The interim dividend per share was increased to HKD 0.20 from HKD 0.14, while the final dividend per share rose to HKD 0.09 from HKD 0.06[6]. - The company declared a final dividend of HKD 0.09 per share, compared to HKD 0.06 per share in the previous year, resulting in a total dividend payout ratio of 69.0%[23]. - The company aims to balance shareholder expectations with sufficient capital retention for business development and operations in its dividend policy[126]. Assets and Liabilities - The total assets of the company decreased slightly to HKD 2,374 million from HKD 2,434 million in 2019, a decline of 2.5%[6]. - The company reported interest-bearing bank loans of HKD 531 million, down from HKD 572 million in 2019, a reduction of 7.2%[6]. - The net asset value per share attributable to owners was HKD 2.44, slightly down from HKD 2.45 in the previous year[6]. - As of March 31, 2020, total non-current assets were HKD 1,138,584,000, a decrease from HKD 1,206,960,000 in the previous year[49]. - Current assets stood at HKD 1,235,763,000, slightly up from HKD 1,226,784,000 in the prior year[49]. - The debt-to-equity ratio as of March 31, 2020, was 14.3%, down from 28.6% the previous year[25]. Operational Efficiency and Strategy - The company aims to enhance production efficiency at its newly acquired production bases in Vietnam and Hubei, China, to increase profitability in the competitive sportswear market[9]. - The company plans to increase the proportion of sales in mainland China by implementing a local production strategy to reduce costs and shorten production cycles[9]. - The company has focused on systematizing processes and mechanizing production to adapt to the challenges posed by the global pandemic[9]. - The company plans to optimize processes and enhance operational efficiency in response to anticipated challenges in the retail and manufacturing sectors[14]. - The company has completed several strategic acquisitions, enhancing its product portfolio and operational capabilities[40]. Governance and Compliance - The company is committed to maintaining high standards of corporate governance and compliance, as evidenced by its independent board members[39]. - The board of directors has maintained a high level of corporate governance, emphasizing transparency, accountability, and independence[92]. - The independent non-executive directors have confirmed their independence annually, and the group believes all such directors meet the independence criteria[94]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all directors throughout the year[98]. - The audit committee conducted three meetings, including two with external auditors, to review the company's annual report and interim reports, ensuring the integrity of financial reporting[106]. Risk Management and Internal Controls - The group has established a risk management and internal control system to reasonably prevent significant misstatements or losses, focusing on environmental, social, and governance-related risks[120]. - The independent professional firm conducted a risk assessment and internal control review, identifying no significant risks or control deficiencies[122]. Financial Reporting and Audit - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local accounting regulations[164]. - The auditor's fees for the year ending March 31, 2020, amounted to HKD 3,873,000, with HKD 3,779,000 for audit services and HKD 94,000 for non-audit services[123]. - The auditor issued an unqualified opinion regarding the related party transactions disclosed by the company[83]. - The company is responsible for preparing financial statements that are true and fair in accordance with Hong Kong Financial Reporting Standards[136]. Subsidiaries and Investments - The company operates in the manufacture and trading of sportswear and garments across its subsidiaries, indicating a focused business strategy[162]. - The company has a total of 8 subsidiaries, all of which are indirectly held by the company, significantly impacting the group's annual performance and net assets[162]. - The company's principal subsidiaries are located in Hong Kong and Mainland China, focusing on the sportswear and garments sector, with a consistent equity percentage of 100% across major subsidiaries[159].