Financial Performance - Revenue from continuing operations decreased by 24.7% to HKD 3,073,686,000 compared to HKD 4,084,162,000 in the previous year[4] - Gross profit fell by 38.7%, with a gross margin of 16.4%, down 3.7 percentage points from 20.1%[4] - The company reported a net loss of HKD 382,608,000 for the year, compared to a profit of HKD 23,631,000 in the previous year[9] - The production business revenue decreased by 30.7% to HKD 2,466,000,000, primarily due to excess inventory in the sportswear market[6] - The high-end fashion retail business saw a revenue increase of 15.5% to HKD 607,700,000, despite ongoing challenges[6] - Revenue for the year ended December 31, 2023, was HKD 3,073,686 thousand, a decrease of 24.8% compared to HKD 4,084,162 thousand in 2022[16] - Gross profit decreased to HKD 504,136 thousand, down 38.8% from HKD 822,451 thousand in the previous year[16] - The operating loss for the year was HKD 231,371 thousand, compared to an operating profit of HKD 107,964 thousand in 2022[16] - The net loss attributable to equity holders of the company for continuing operations was HKD 255,181 thousand, compared to a profit of HKD 67,681 thousand in 2022[16] - Total comprehensive loss for the year was HKD 412,584 thousand, compared to a total comprehensive income of HKD 83,640 thousand in the previous year[17] - Total revenue for the year ended December 31, 2023, was approximately HKD 1,670,127,000, a decrease of 32.4% from HKD 2,473,096,000 in 2022[28] - Revenue from the production segment was HKD 1,880,216,000, while the high-end fashion retail segment generated HKD 607,726,000, contributing to total revenue of HKD 3,073,686,000 for continuing operations[30] - The production segment reported an operating loss of HKD 187,726,000, while the high-end fashion retail segment incurred a loss of HKD 47,105,000, leading to a total operating loss of HKD 231,371,000 for continuing operations[30] - The company recorded a net loss attributable to equity holders of HKD 120,110,000 for the year, compared to a loss of HKD 57,611,000 in 2022[51] - The company recorded a post-tax loss of HKD 120,100,000 for the year ending December 31, 2023, compared to a loss of HKD 57,600,000 in 2022[65] Assets and Liabilities - Non-current assets decreased to HKD 1,154,857 thousand from HKD 1,272,836 thousand in 2022, reflecting a decline of 9.2%[19] - Current assets decreased to HKD 1,675,186 thousand, down from HKD 2,192,348 thousand, a reduction of 23.5%[19] - Total liabilities decreased to HKD 1,389,262 thousand from HKD 1,605,419 thousand, indicating a reduction of 13.5%[19] - The equity attributable to equity holders of the company decreased to HKD 1,461,686 thousand from HKD 1,866,137 thousand, a decline of 21.6%[20] - Total assets as of December 31, 2023, amounted to HKD 2,830,043,000, down from HKD 3,465,184,000 in the previous year, reflecting a decrease of 18.4%[34] - Total liabilities as of December 31, 2023, were HKD 1,389,262,000, compared to HKD 1,605,419,000 in 2022, indicating a reduction of 13.5%[34] Cash Flow and Financing - Cash and bank balances as of December 31, 2023, were HKD 209,500,000, down from HKD 370,500,000 in the previous year[9] - The net debt-to-asset ratio improved to 18.4% from 22.8% year-on-year[9] - Financing costs increased to HKD 47,884,000 in 2023 from HKD 39,696,000 in 2022, representing a rise of 20.5%[38] - The financing costs increased by HKD 6,900,000 to HKD 44,900,000, primarily due to an increase in bank borrowing interest[53] - As of December 31, 2023, the company had cash and bank balances of HKD 209,500,000, down from HKD 370,500,000 in 2022, but increased to HKD 298,000,000 by February 29, 2024, following the sale proceeds[73] - The net debt-to-equity ratio as of December 31, 2023, was 18.4%, a decrease from 22.8% in 2022, indicating improved financial stability[73] Market Outlook and Future Expectations - Future revenue for the production business is expected to significantly increase in the first half of 2024 as inventory issues improve[10] - The high-end fashion retail business will continue to focus on the mainland China market, facing uncertain recovery prospects[10] - The company expects revenue for the first half of 2024 to grow by over 20% compared to the same period in 2023, driven by improved customer orders in Western markets[69] - The company anticipates continued challenges due to geopolitical tensions, high interest rates, and inflation, but believes its diversified business model will support sustainable development[68] Corporate Governance and Shareholder Information - The company plans to retain financial resources and will not recommend a dividend due to the challenging outlook[13] - The company did not recommend the payment of a dividend for the year ended December 31, 2023, consistent with 2022[49] - The company plans to closely monitor market conditions and review its dividend policy periodically[55] - The board of directors did not recommend the payment of a dividend for the year ending December 31, 2023[84] - The company has adhered to the principles and provisions of the corporate governance code as per the listing rules during the year[86] - The annual report for the year ending December 31, 2023, will be sent to shareholders and published on the company's website[87] - The audit committee has reviewed the internal controls and financial reporting matters related to the consolidated financial statements for the year ending December 31, 2023[88] - The preliminary announcement of the consolidated profit and loss statement has been agreed upon by the auditors, confirming alignment with the audited financial statements[90] - The annual general meeting is scheduled for June 13, 2024, with further details to be provided in the notice to shareholders[91] - The board of directors consists of both executive and independent non-executive members, ensuring a diverse governance structure[92] Operational Changes - The company completed the sale of the "Champion" fashion brand inventory and retail assets, resulting in the reclassification of related business as discontinued operations[29] - The total number of stores decreased to 123 as of December 31, 2023, down from 222 in 2022, primarily due to the completion of the sale of the "Champion" brand[66] - The company has approximately 16,000 employees as of December 31, 2023, down from about 19,000 in 2022[77] - The company has pledged bank deposits of HKD 1,200,000 and properties valued at HKD 71,300,000 as collateral for bank financing[78] - The company does not have any significant contingent liabilities or major litigation as of December 31, 2023[79]

Financial Performance - The company's revenue for the six months ended June 30, 2023, was HKD 1,667,320,000, a decrease of 26.3% compared to HKD 2,261,973,000 in the same period of 2022[10]. - Gross profit fell to HKD 298,212,000, down 43.4% from HKD 526,653,000, with a gross margin of 17.9%, down from 23.3%[10][12]. - Operating loss recorded was HKD 172,050,000, compared to a profit of HKD 31,253,000 in the previous year[10][14]. - The net loss attributable to equity holders was HKD 163,214,000, compared to a profit of HKD 20,522,000 in the same period last year[10]. - Basic and diluted loss per share was HKD 12.7, compared to earnings of HKD 1.6 per share in the prior year[50]. - Total comprehensive loss for the period was HKD 209,640, compared to a total comprehensive income of HKD 32,965 in 2022[51]. - Cash generated from operating activities was HKD 273,812, an increase of 144.4% from HKD 111,945 in the previous year[56]. - The company reported a decrease in sales costs to HKD 1,369,108, down 21.1% from HKD 1,735,320 in 2022[50]. Business Segments - The sportswear production business revenue decreased by HKD 552.7 million to HKD 954.1 million, a decline of 36.7% due to reduced consumer demand and inventory buildup[19]. - The operating loss for the sportswear production business reached HKD 115.9 million, compared to a profit of HKD 63.4 million in the same period last year[19]. - The high-performance outdoor apparel production business revenue decreased by HKD 58.7 million to HKD 221.3 million, a decline of 21.0%, primarily due to reduced orders from Europe and mainland China[21]. - The operating loss for the high-performance outdoor apparel production business was HKD 9.3 million, compared to a profit of HKD 4.4 million in the previous year[21]. - The high-end fashion retail business revenue increased by HKD 16.8 million to HKD 492.0 million, a slight increase of 3.5%[23]. - The operating loss for the high-end fashion retail business was HKD 46.9 million, compared to a loss of HKD 36.5 million in the same period last year[23]. Liquidity and Financial Position - The net debt to equity ratio improved to 11.7% from 22.8% at the end of 2022[10]. - The current ratio increased to 1.6 from 1.5, indicating improved liquidity[10]. - The company anticipates stable cash inflows from operations and has sufficient liquidity to meet its operational costs for the next twelve months[32]. - The group expects stable cash inflows from operations and additional cash inflows from liquidating assets to meet future operational costs and financial obligations[64]. - The group has maintained sufficient cash and bank balances to support its operations despite ongoing challenges from COVID-19 and macroeconomic factors[64]. Inventory and Procurement - The company faced challenges due to excess inventory, particularly in the sportswear market, impacting overall business performance[17]. - Inventory turnover period was 133 days, slightly up from 131 days in the previous year[10]. - Procurement costs were approximately 83.5% in USD, 13.0% in RMB, and 2.1% in HKD during the same period[33]. Employee and Operational Changes - The company had approximately 16,000 employees as of June 30, 2023, down from about 19,000 employees as of December 31, 2022[35]. - The total number of stores decreased to 208 from 248, with 180 located in mainland China[24]. Shareholder and Governance - The company did not recommend an interim dividend for the six months ended June 30, 2023, due to challenging market conditions[15]. - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2023[124]. - The audit committee has reviewed the unaudited interim financial information for the six months ended June 30, 2023[128]. - The company has adhered to the corporate governance code as per the listing rules during the six months ended June 30, 2023[127]. Foreign Currency and Risk Management - The company continues to monitor foreign currency risks closely to maintain net risk at an acceptable level[33]. - The company may use appropriate financial instruments to mitigate foreign currency risks based on future operational and investment needs[33]. Capital and Assets - The company's total assets pledged by the company amounted to HKD 1,200,000 for bank deposits and HKD 72,600,000 for land and properties as of June 30, 2023[36]. - The company's net assets were reported at HKD 1,643,725,000 as of June 30, 2023, compared to HKD 1,859,765,000 as of December 31, 2022[47]. - The company's total equity decreased from HKD 1,866,137,000 as of December 31, 2022, to HKD 1,671,852,000 as of June 30, 2023[47]. - Total assets as of June 30, 2023, amounted to HKD 2,911,541, down from HKD 3,465,184 as of December 31, 2022, representing a decrease of 16%[75]. - Total liabilities decreased to HKD 1,267,816 as of June 30, 2023, from HKD 1,605,419 at the end of 2022, a reduction of 21%[75]. Stock Options and Shareholding - The company has a stock option plan that allows for the issuance of up to 10% of the issued share capital as of the listing date, subject to shareholder approval for any excess[110]. - The new stock option plan, effective from June 20, 2016, allows for the issuance of up to 128,440,000 shares, equivalent to 10% of the company's issued share capital as of the mid-term report date[114]. - The total number of stock options under the stock option plan as of June 30, 2023, is 31,000,000[117]. - Mr. Li Guodong holds 743,769,967 shares, representing 57.91% of the company's total issued shares of 1,284,400,000[103]. - Mr. Li Guodong controls 70% of Quinta Asia Limited, which is considered as part of his equity in the company[104].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任 何損失承擔任何責任。 Win Hanverky Holdings Limited 永 嘉 集 團 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：3322） 截至二零二三年六月三十日止六個月的 中期業績公告 財務摘要 未經審核 截至六月三十日止六個月 二零二三年 二零二二年 變動 千港元 千港元 % 收益 1,667,320 2,261,973 –26.3% 毛利 298,212 526,653 –43.4% 毛利率 17.9% 23.3% –5.4個百分點 經營（虧損）╱溢利 (172,050) 31,253 不適用 期內（虧損）╱溢利 (177,150) 21,288 不適用 每股基本（虧損）╱盈利（港仙） (12.7) 1.6 不適用 營運摘要 ...

Financial Performance - The company's revenue for 2022 was HKD 4,449,790,000, representing a growth of 7.6% compared to HKD 4,136,603,000 in 2021[11]. - The production business generated revenue of HKD 3,558,000,000, an increase of 21.5% from HKD 2,928,200,000 in the previous year[11]. - The high-end fashion retail business reported revenue of HKD 891,800,000, a decrease of 26.2% from HKD 1,208,400,000 in 2021[11]. - The gross profit for 2022 was HKD 989,076,000, slightly down from HKD 998,991,000 in 2021[9]. - The operating profit for the year was HKD 54,718,000, recovering from an operating loss of HKD 50,877,000 in 2021[9]. - The net profit attributable to equity holders was HKD 10,070,000, compared to a loss of HKD 66,416,000 in the previous year[9]. - The group's revenue for the year ended December 31, 2022, was HKD 4,449,800,000, an increase of 7.6% compared to HKD 4,136,600,000 in 2021, primarily due to increased customer orders in the production business[18]. - The gross profit margin decreased to 22.2% from 24.2% in 2021, a decline of 2.0 percentage points, mainly due to changes in the business mix[18]. - The group recorded a net profit after tax of HKD 23,600,000 for the year ended December 31, 2022, compared to a loss of HKD 69,600,000 in 2021[21]. - The operating profit was HKD 54,700,000, a turnaround from a loss of HKD 50,900,000 in 2021[21]. Assets and Financial Health - The total assets decreased to HKD 3,465,184,000 from HKD 3,945,257,000 in 2021[9]. - The current ratio improved to 1.5 from 1.4 in the previous year, indicating better short-term financial health[9]. - The group had cash and bank balances of HKD 370.5 million as of December 31, 2022, down from HKD 415.8 million in 2021[37]. - The net debt-to-equity ratio was 22.8% as of December 31, 2022, compared to 27.3% in 2021[37]. - The company aims to create stable returns for shareholders, with a dividend policy that considers financial performance and future growth reserves[114]. - The board will review the dividend policy regularly and retains the discretion to update it at any time[115]. Market Challenges and Strategies - The company faced challenges due to macroeconomic conditions, including inflation and the impact of COVID-19, particularly in the Chinese market[10]. - The company aims to leverage its diversified business structure to navigate the complex operating environment[10]. - The group anticipates a slowdown in order trends due to excess inventory issues in the sportswear market, which may take several quarters to resolve[14]. - The high-end fashion retail business will continue to focus on the mainland China market, with expectations of recovery supported by recent easing of COVID-19 restrictions[14]. - The sportswear production business is expected to face short-term impacts due to inventory backlog and reduced consumer demand in major Western markets[32]. Corporate Governance and Management - The company has a strong management team with over 45 years of experience in the garment industry, led by co-founders Li Guodong and Li Qingping[46][47]. - The CEO, Li Guoliang, has been with the company for over 30 years and is responsible for overall management and strategic planning[47]. - The CFO, Wang Zhiqiang, has over 30 years of accounting and financial experience, previously serving as CFO for several listed companies[48]. - The company emphasizes good corporate governance and risk management to ensure compliance and ethical business practices[57]. - The company has established three core values: pursuit of excellence, innovation, and collaboration for mutual success[60]. - The company is committed to sustainable development and long-term growth through a strong corporate culture[57]. - The management team includes experienced professionals from various sectors, enhancing the company's strategic capabilities[55]. - The company has a clear vision and mission focused on quality and value in its operations[58]. - The company adheres to the corporate governance code as per the listing rules, ensuring transparency and accountability[61]. - The company has a diversified board with independent directors bringing extensive industry experience[51][52]. - The board consists of four executive directors and three independent non-executive directors, ensuring a balanced composition with relevant knowledge and experience[65]. - The company has adopted a board diversity policy, achieving a gender diversity ratio of approximately 22.9% male and 77.1% female employees as of December 31, 2022[79]. - Independent non-executive directors are responsible for making independent judgments on the company's development, performance, and risk management, with a term of three years[75]. - The board has established a clear distinction between the roles of the chairman and the CEO to ensure a balance of power and authority[68]. - The company has implemented a standard code of conduct for securities trading by directors, ensuring compliance with regulations[71]. - The nomination committee evaluates candidates based on reputation, industry experience, and commitment of time, ensuring suitable candidates for board positions[77]. - The company has arranged training for board members to enhance their knowledge and skills, ensuring they can contribute effectively[73]. - The board is responsible for approving significant business matters, including dividend declarations and changes in the board's structure[74]. - The company has a policy for insider information to ensure timely and fair disclosure to the public[80]. - The management team is accountable to the board for the group's operations and is empowered to execute daily operations[70]. - The board recognizes the benefits of diversity in enhancing effectiveness and achieving high levels of corporate governance[81]. Audit and Compliance - The audit committee was established on April 18, 2006, with responsibilities including monitoring the fairness of financial statements and reviewing risk management systems[82]. - The audit committee reviewed the consolidated financial statements for the year ended December 31, 2021, and the unaudited interim financial information for the six months ended June 30, 2022[84]. - The company adopted Hong Kong Financial Reporting Standards in preparing its financial statements[104]. - The board is satisfied with the effectiveness and adequacy of the group's risk management and internal control systems[102]. - The company identified and managed risks related to its business activities and environmental, social, and governance performance[96]. - The internal control system aims to provide reasonable assurance against material misstatements or losses[100]. - The audit report confirmed that the consolidated financial statements fairly reflect the group's financial position and performance as of December 31, 2022[174]. - The audit was conducted by PwC, which will be reappointed for the fiscal year ending December 31, 2023[173]. - The audit included comparing forecasted sales performance with approved budgets and assessing the reasonableness of business plans against past performance and market trends[188]. Employee and Community Engagement - The company has provided comprehensive benefits to attract and retain employees, maintaining an acceptable turnover rate[128]. - The group made charitable and other donations totaling HKD 574,000 during the review year[139]. - The group participates in defined contribution retirement plans covering eligible employees in mainland China, Vietnam, and Cambodia, as well as mandatory provident fund schemes for Hong Kong employees[168]. Shareholder Information - As of December 31, 2022, the company's distributable reserves amounted to HKD 961,100,000, an increase from HKD 952,900,000 in 2021[132]. - The board of directors did not recommend the payment of dividends for the year ended December 31, 2022[136]. - The largest customer accounted for 55.6% of the group's sales, while the top five customers represented 70.2% of total sales[171]. - The group maintained sufficient public float as per listing rules prior to the report's publication date[172]. - The company's issued share capital was 1,284,400,000 shares, with the largest shareholder holding 57.91%[152]. - The new share option plan allows for the issuance of up to 128,440,000 shares, equivalent to 10% of the company's issued share capital as of the report date[162]. - The total number of share options under the existing plan as of December 31, 2022, is 31,000,000, with no options granted under the new share option plan prior to this date[166]. - The exercise price for share options ranges from HKD 0.946 to HKD 1.562, with various exercise periods extending until 2024 and 2025[166].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任 何損失承擔任何責任。 Win Hanverky Holdings Limited 永 嘉 集 團 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：3322） 截至二零二二年十二月三十一日止年度 全年業績公告 財務摘要 二零二二年 二零二一年 變動 千港元 千港元 % 收益 4,449,790 4,136,603 +7.6% 毛利 989,076 998,991 –1.0% 毛利率 22.2% 24.2% –2.0個百分點 經營溢利╱（虧損） — 計及出售收益前 (14,605) (50,877) –71.3% — 出售收益 69,323 — 不適用 54,718 (50,877) 不適用 年內溢利╱（虧損） 23,631 (69,634) 不適用 每股基本盈利╱（虧損（）港仙） 0.8 (5.2) 不適用 營運摘要 ...

Financial Performance - The company's revenue for the six months ended June 30, 2022, was HKD 2,261,973,000, representing an increase of 8.4% compared to HKD 2,087,391,000 in the same period of 2021[15]. - Gross profit decreased to HKD 526,653,000, down 3.7% from HKD 547,098,000 in the previous year, primarily due to reduced revenue from the high-end fashion retail business[15][18]. - The gross profit margin fell to 23.3%, a decrease of 2.9 percentage points from 26.2% in the prior year, attributed to a change in the business mix[15][17]. - Operating profit was HKD 31,253,000, down from HKD 49,252,000 in the same period last year[15]. - Profit attributable to equity holders was HKD 20,522,000, compared to HKD 33,033,000 in the previous year[15]. - Basic earnings per share decreased to HKD 1.6 from HKD 2.6 in the prior year[15]. - The company reported a net profit of HKD 21,288 for the six months ended June 30, 2022, down from HKD 27,343 in the same period of 2021[93]. - Total assets as of June 30, 2022, were HKD 2,365,772 thousand, a decrease of 4.9% from HKD 2,488,284 thousand at the end of 2021[58]. - Total liabilities decreased to HKD 1,648,989 thousand from HKD 1,781,008 thousand, representing a reduction of 7.4%[60]. - Cash and bank balances as of June 30, 2022, were HKD 336,650 thousand, down 19.0% from HKD 415,819 thousand at the end of 2021[60]. Operational Metrics - Trade receivables turnover period improved to 42 days from 44 days in the previous year[15]. - Inventory turnover period improved to 139 days from 143 days in the previous year[15]. - The operating cash flow for the six months ended June 30, 2022, was HKD 116,175 thousand, compared to HKD 101,751 thousand for the same period in 2021, representing a 14.8% increase[70]. - The net cash from operating activities increased to HKD 111,945 thousand from HKD 91,227 thousand, reflecting a growth of 22.7% year-over-year[70]. - The company reported a total cash and cash equivalents balance of HKD 336,650 thousand at the end of the period, down from HKD 681,661 thousand at the end of the previous year[70]. Business Segments - Revenue from the sportswear production business increased by HKD 216,700,000 to HKD 1,506,800,000, representing a growth of 16.8%[23]. - The high-performance outdoor clothing production business saw revenue rise by HKD 127,300,000 to HKD 280,000,000, a strong growth of 83.4%[25]. - The high-end fashion retail business experienced a revenue decline of HKD 169,400,000 to HKD 475,200,000, a decrease of 26.3%[26]. - The company recorded an operating loss of HKD 36,500,000 for the high-end fashion retail business, compared to a profit of HKD 37,600,000 last year[27]. Strategic Initiatives - The company plans to maintain financial resources and will not recommend an interim dividend for the six months ending June 30, 2022[19]. - The company plans to focus on new product development and market expansion strategies to enhance future growth prospects[56]. - The company plans to continue offering shopping promotions to stimulate local consumption post-COVID-19 restrictions[37]. - The company aims to negotiate further rent reductions with landlords to alleviate profit pressure[37]. - The company anticipates a recovery in its high-end fashion retail business in mainland China following the easing of COVID-19 restrictions[37]. Market and Economic Outlook - The company remains cautiously optimistic about long-term demand for sportswear products despite short-term economic challenges[33]. - Approximately 69.4% of the company's revenue was denominated in USD, while 26.9% was in RMB, and 2.2% in HKD during the reporting period[44]. - The company continues to maintain sufficient liquidity and financial resources to meet its operational costs and financial obligations over the next twelve months[79]. Corporate Governance - The Audit Committee consists of independent non-executive directors and is responsible for reviewing the financial reporting process and internal control systems[171]. - The company has adhered to the corporate governance code as per the listing rules during the six months ended June 30, 2022[178]. - The Remuneration Committee is responsible for recommending remuneration policies for directors and senior management, with a majority of independent non-executive directors[172]. - The Nomination Committee is tasked with recommending candidates for directorships, ensuring appropriate professional knowledge and industry experience[173]. Employee and Shareholder Information - The company has approximately 20,000 employees as of June 30, 2022, an increase from about 19,000 employees on December 31, 2021[45]. - As of June 30, 2022, the company had a total of 1,284,400,000 shares issued, with the largest shareholder holding 57.91% of the equity[152]. - The company did not declare an interim dividend for the six months ended June 30, 2022, consistent with the previous year[131].

Financial Performance - The company's revenue from continuing operations reached HKD 4,136,603,000 in 2021, representing a 2.9% increase from HKD 4,021,402,000 in 2020[15] - The gross profit for the year was HKD 998,991,000, with a gross margin of 24.2%[12] - The company reported an operating loss of HKD 50,877,000 for 2021, compared to a loss of HKD 47,068,000 in 2020[12] - The net loss attributable to equity holders was HKD 66,416,000, a significant improvement from a loss of HKD 233,821,000 in the previous year[12] - The overall net loss after tax for the year was HKD 69,600,000, an improvement from a loss of HKD 188,500,000 in the previous year[25] - The operating loss for the year was HKD 50,900,000, compared to a loss of HKD 47,100,000 in the previous year[24] - The company maintained a stable gross margin of 24.2%, slightly up from 24.0% in the previous year[17] Revenue Breakdown - The production business generated revenue of HKD 2,928,200,000, an increase of 5.3% from HKD 2,781,600,000 in the previous year[16] - The high-end fashion retail business reported revenue of HKD 1,208,400,000, a decrease of 2.5% from HKD 1,239,800,000 in the previous year[16] - Revenue from the sportswear production business increased by HKD 22.6 million to HKD 2,413.2 million, a growth of 0.9%, primarily due to increased customer orders, especially in the US market[30] - Revenue from the high-end functional outdoor clothing production business rose by HKD 124 million to HKD 515 million, representing a growth of 31.7%, driven by significant domestic customer order growth in mainland China[33] - The high-end fashion retail business saw a revenue decrease of HKD 31.4 million to HKD 1,208.4 million, a decline of 2.5%, impacted by the resurgence of COVID-19 variants in mainland China[34] Assets and Liabilities - Total assets amounted to HKD 3,945,257,000, while total liabilities were HKD 2,002,606,000, resulting in total equity of HKD 1,942,651,000[12] - The net debt to equity ratio increased to 27.3% from 10.2% in 2020[12] - As of December 31, 2021, the company had cash and bank balances of HKD 415.8 million, down from HKD 695.1 million in 2020[43] Corporate Strategy and Future Outlook - The company plans to continue focusing on its production and high-end fashion retail businesses despite ongoing challenges from the COVID-19 pandemic[15] - Future strategies may include market expansion and potential new product development to adapt to changing consumer demands[15] - The company plans to focus on the mainland China market for its high-end fashion retail business despite recent COVID-19 measures[19] - The company anticipates that the demand for sportswear products will increase in the long term due to rising global health awareness and the return of major sporting events[39] - The company plans to resume development of a new factory in Vietnam to meet medium to long-term customer needs[39] - The company remains cautiously optimistic about future business opportunities despite the complex operating environment[19] Governance and Compliance - The board consists of four executive directors and three independent non-executive directors, ensuring a balanced composition with relevant knowledge and experience[67] - The company has adopted the corporate governance code principles as per the listing rules, ensuring compliance with applicable provisions[64] - The company emphasizes the importance of good corporate governance for risk management and internal control processes[63] - The board is responsible for setting the business strategy and management objectives, as well as monitoring the group's performance[65] - The company confirmed compliance with the disclosure requirements of the listing rules regarding related party transactions[189] Shareholder Information - The company aims to create stable returns for shareholders and considers various factors, including financial performance and future expansion plans, when determining dividend payouts[124] - The board retains the right to review and amend the dividend policy at any time, with no guarantee of specific dividend amounts for any period[126] - The company did not recommend the payment of dividends for the fiscal year ending December 31, 2021[147] - The company's distributable reserves as of December 31, 2021, amounted to HKD 952,900,000, an increase from HKD 938,500,000 in 2020[143] Employee and Operational Insights - The total number of retail stores increased to 264 as of December 31, 2021, up from 233 in 2020, with 228 stores located in mainland China[35] - The employee turnover rate is at an acceptable level, indicating good employee relations[139] - As of December 31, 2021, the company had approximately 19,000 employees, consistent with the previous year[46] Environmental and Social Responsibility - The company has implemented energy-saving measures and encourages the recycling of office supplies to minimize environmental impact[136] - The group has complied with relevant local laws and regulations in all significant aspects during the fiscal year ending December 31, 2021[138] - The group made charitable donations totaling HKD 172,000 during the review year[150] Audit and Risk Management - The audit committee was established in April 2006, with responsibilities including monitoring the fairness of financial statements and reviewing risk management systems[83] - The internal control system aims to provide reasonable assurance against material misstatements and to ensure compliance with applicable laws and regulations[110] - The audit committee reviews the effectiveness of the group's risk management and internal control systems at least once a year, and the board is satisfied with their adequacy[112] Share Option Plan - The company has established a share option plan to incentivize and reward eligible participants for their contributions to the group's long-term success[179] - The total number of shares that can be issued under the new share option plan is capped at 128,440,000 shares, equivalent to 10% of the company's issued share capital as of the report date[180] - The new share option plan allows the board to grant options to eligible participants, including directors and employees, with a non-refundable acceptance fee of HKD 10[180]

Financial Performance - The company reported revenue of HKD 2,087,391,000 for the six months ended June 30, 2021, representing a 7.4% increase from HKD 1,942,825,000 in the same period of 2020[23]. - Gross profit increased by HKD 108,900,000 to HKD 547,098,000, a growth of 24.8% compared to HKD 438,206,000 in the previous year, with a gross margin of 26.2%[23][27]. - Operating profit from continuing operations was HKD 49,252,000, a significant recovery from a loss of HKD 95,437,000 in the same period last year[23][28]. - The net profit attributable to equity holders was HKD 33,033,000, compared to a loss of HKD 166,281,000 in the prior year[23]. - Total comprehensive income for the six months ended June 30, 2021, was HKD 37,440,000, recovering from a loss of HKD 227,102,000 in the same period last year[68]. - The company reported a net profit of HKD 27,343 for the six months ended June 30, 2021[92]. Financial Ratios and Health - The company achieved a net debt to equity ratio of 11.5%, up from 10.2% at the end of 2020[23]. - The current ratio improved to 1.5 from 1.4, indicating better short-term financial health[23]. - Trade receivables turnover days decreased to 39 days from 49 days, reflecting improved collection efficiency[23]. - Inventory turnover days slightly decreased to 136 days from 138 days, indicating stable inventory management[23]. - The group maintained a stable financial position despite challenges posed by the COVID-19 pandemic, focusing on cash flow management and strict cost control measures[48]. Cost Management - The company has successfully reduced selling and distribution costs by HKD 23,400,000 to HKD 291,900,000, primarily due to the absence of further impairment losses on retail store assets[28]. - General and administrative expenses decreased by HKD 18,100,000 to HKD 209,100,000, attributed to ongoing cost-cutting measures[28]. - Financing costs for the six months ended June 30, 2021, were HKD 15,444,000, compared to HKD 20,297,000 for the same period in 2020, showing a reduction of approximately 23.5%[123]. Business Segments Performance - The sportswear production business reported revenue of HKD 1,290,100,000, an increase of HKD 53,100,000 or 4.3% compared to the same period last year[34]. - The high-performance outdoor clothing production business experienced a revenue decrease of HKD 10,600,000 to HKD 152,700,000, a decline of 6.5% due to reduced orders from an outdoor brand[37]. - The high-end fashion retail business saw revenue increase by HKD 102,100,000 to HKD 644,600,000, an 18.8% rise, primarily due to recovery from the COVID-19 impact in mainland China[38]. - Operating profit for the high-end fashion retail business was HKD 37,600,000, a significant turnaround from a loss of HKD 40,700,000 in the previous year[39]. Market and Operational Challenges - The production business's revenue from the Vietnam factory accounted for 48.2% of total production revenue, which is expected to impact growth in the second half of the year due to COVID-19 challenges[42]. - The company plans to postpone large capital expenditure projects for the second half of the year due to uncertainties from the new COVID-19 variant in Vietnam[43]. - The spread of COVID-19 variants in Southeast Asia is expected to negatively affect the operating environment, revenue, cash flow, and operational performance for the remainder of 2021[851]. - The supply chain for raw materials and logistics for finished products has faced challenges due to the COVID-19 outbreak in Vietnam and surrounding areas[851]. Shareholder and Governance - The company did not recommend an interim dividend for the six months ended June 30, 2021, consistent with the previous year[131]. - The audit committee has reviewed the unaudited interim financial information for the six months ended June 30, 2021, and recommended approval to the board[197]. - The company has complied with the corporate governance code as per the listing rules during the six months ended June 30, 2021[196]. - The company expressed gratitude to all directors and staff for their contributions and support from customers, shareholders, and business partners[199]. Employee and Management Information - The group employed around 19,000 employees as of June 30, 2021, consistent with the number from December 31, 2020[51]. - Total compensation for key management personnel increased to 9,681 thousand HKD from 8,776 thousand HKD in the previous year[150].

Financial Performance - The revenue from continuing operations for the year 2020 was HKD 4,021,400,000, a decrease of 20.1% compared to HKD 5,034,400,000 in 2019[14]. - Revenue from the production business was HKD 2,781,600,000, down 15.2% from HKD 3,281,300,000 in 2019[14]. - Revenue from the high-end fashion retail business was HKD 1,239,800,000, a decrease of 29.3% from HKD 1,753,000,000 in 2019[14]. - The net loss attributable to equity holders for 2020 was HKD 233,821,000, compared to a profit of HKD 64,214,000 in 2019[11]. - The overall net loss for the year ended December 31, 2020, was HKD 188,500,000, compared to a profit of HKD 73,700,000 in 2019[26]. - The group recorded a net loss of HKD 83,800,000 from continuing operations for the year ended December 31, 2020, compared to a profit of HKD 125,100,000 in 2019[26]. - The company recorded an operating loss of HKD 59.9 million for the year, compared to a profit of HKD 98.2 million in the previous year[33]. - The company implemented cost-cutting measures, leading to an operating loss of HKD 15.2 million in the second half of 2020, despite a significant reduction in sales orders[33]. Assets and Liabilities - The total assets as of December 31, 2020, were HKD 3,819,030,000, down from HKD 4,343,925,000 in 2019[11]. - The cash and bank balances increased to HKD 695,088,000 from HKD 486,623,000 in 2019[11]. - The net debt to equity ratio decreased to 10.2% in 2020 from 25.5% in 2019[16]. - The company reported a distributable reserve of HKD 938,500,000 as of December 31, 2020, compared to HKD 923,200,000 in 2019, indicating a slight increase of approximately 1.4%[155]. Operational Challenges - The company faced significant challenges due to the COVID-19 pandemic, impacting both production and retail operations[14]. - The gross profit margin for continuing operations was 24.0%, down from 28.9% in 2019[11]. - The inventory turnover period increased to 138 days from 105 days in 2019[11]. - The sportswear production business revenue decreased by HKD 449 million to HKD 2,390.6 million, a decline of 15.8% due to COVID-19 impacting order numbers, particularly in the US market[31]. - The high-end functional outdoor clothing production business revenue decreased by HKD 50.8 million to HKD 391 million, a decline of 11.5%, with operational losses of HKD 8.9 million for the year[34]. - The high-end fashion retail business revenue decreased by HKD 513.2 million to HKD 1,239.8 million, a decline of 29.3%, primarily due to store closures and reduced customer traffic caused by COVID-19[35]. Strategic Plans - The group plans to cautiously implement cost control measures and monitor the recovery of the market environment[20]. - The group intends to restart a moderate store expansion plan in mainland China for its high-end fashion retail business[20]. - The company plans to focus resources on core business operations after exiting the e.dye business, which was deemed non-core and underperforming[39]. - The company aims to enhance production efficiency and cost control in the high-performance outdoor apparel segment, particularly in the mainland China market[43]. - The company plans to resume moderate store expansion in mainland China, particularly for the "New Era" retail network, capitalizing on the market's recovery from COVID-19[46]. Corporate Governance - The company emphasizes the importance of good corporate governance for managing risk and internal control procedures[67]. - The board is responsible for formulating business strategies and management objectives, as well as monitoring the company's performance[69]. - The company adheres to the corporate governance code as outlined in the listing rules[68]. - The audit committee, established in April 2006, is responsible for monitoring the fairness of the group's financial statements and reviewing financial control, risk management, and internal control systems[89]. - The company has adopted an insider information policy to ensure timely and fair disclosure of material information to the public[88]. - The nomination committee evaluates candidates based on reputation, achievements, experience, and diversity factors, including gender and age[85]. - The company has a total of four executive directors and four independent non-executive directors on its board[71]. Employee and Community Relations - The company maintains good relationships with employees, suppliers, and customers, with an acceptable employee turnover rate[151]. - The group made charitable donations totaling HKD 124,000 during the review year[163]. - The company has approximately 19,000 employees as of December 31, 2020, down from about 21,000 in 2019, indicating a reduction in workforce[51]. Environmental Responsibility - The company has implemented energy-saving measures and encourages recycling to minimize environmental impact[148].

Financial Performance - The company's revenue for the six months ended June 30, 2020, was HKD 1,962,700,000, a decrease of 13.4% compared to HKD 2,265,292,000 in the same period of 2019[16] - Gross profit decreased by HKD 255,700,000 to HKD 435,856,000, resulting in a gross margin of 22.2%, down from 30.5% in 2019, reflecting increased retail discounts[16] - Operating loss recorded was HKD 187,705,000, compared to an operating profit of HKD 84,253,000 in the previous year[16] - The net loss attributable to equity holders was HKD 166,281,000, compared to a profit of HKD 27,642,000 in the same period last year[16] - The company reported a significant increase in cash and bank balances to HKD 669,752, up 37.5% from HKD 486,623 in 2019[61] - Total comprehensive income for the period was HKD (227,102,000), down from HKD 19,556,000 in the previous year, indicating a substantial decrease in overall financial performance[64] - The company reported a net loss of HKD 210,850 for the six months ended June 30, 2020, compared to a profit of HKD 37,497 in 2019[61] - Basic and diluted loss per share was HKD 12.9, compared to earnings of HKD 2.2 per share in the previous year[61] Dividend and Shareholder Equity - The company decided not to declare an interim dividend for the six months ended June 30, 2020, compared to HKD 0.01 per share in 2019[21] - The company’s equity attributable to shareholders decreased to HKD 1,843,898,000 as of June 30, 2020, from HKD 2,023,324,000 a year earlier, indicating a decline in shareholder equity[67] - The weighted average number of ordinary shares issued was 1,284,400,000 for the six months ended June 30, 2020, unchanged from the previous year[133] Operational Challenges - The sportswear manufacturing business reported a revenue decrease of HKD 36,200,000 to HKD 1,237,000,000, a decline of 2.8% due to reduced orders from a major client starting May 2020, particularly in the US market[23] - The high-end fashion retail business experienced a revenue drop of HKD 284,400,000 to HKD 542,500,000, a decline of 34.4%, primarily due to store closures from COVID-19[28] - The company has implemented cost-cutting measures, including applying for government subsidies and negotiating rent reductions, to preserve operational funds amid the COVID-19 pandemic[36] - The company incurred a one-time non-cash impairment of HKD 73,800,000 related to the e.dye business, which was sold in August 2020[17] - The company has decided to exit the e.dye business due to poor performance and a bleak outlook, resulting in an estimated total loss of HKD 133,800,000, including an impairment loss of HKD 73,800,000 for the six months ended June 30, 2020[160] Cash Flow and Financial Position - The cash and bank balance as of June 30, 2020, was HKD 669.8 million, an increase from HKD 486.6 million on December 31, 2019[43] - The company reported a net cash outflow from investing activities of HKD (38,360,000), compared to HKD (109,196,000) in the previous year, suggesting reduced investment expenditures[72] - The company’s total liabilities increased, with bank borrowings amounting to HKD 718,413,000, compared to HKD 938,166,000 in the previous year, indicating a shift in financing strategy[72] Employee and Operational Adjustments - The group has approximately 20,000 employees as of June 30, 2020, down from about 21,000 employees on December 31, 2019[46] - The group will continue to adjust its operational model and suspend capital expenditure projects in response to market uncertainties[37] - The group has suspended the development of a new factory in Vietnam due to the ongoing challenges in the market[37] Market and Future Outlook - The company plans to focus on market expansion and new product development to recover from the revenue decline experienced in the first half of 2020[99] - The sportswear production business is expected to see a revenue decline of approximately 20% for the full year 2020 due to the impact of COVID-19 and reduced consumer demand[37] Corporate Governance and Compliance - The audit committee has reviewed the unaudited interim financial information for the six months ended June 30, 2020, and recommended its approval to the board[192] - The company has complied with the corporate governance code and principles as per the listing rules during the six months ended June 30, 2020[191] - The company has confirmed that all directors have complied with the standards of the code regarding securities transactions during the six months ended June 30, 2020[189]