Financial Performance - Total revenue from continuing operations for 2019 was HKD 5,069,700,000, an increase of 22.5% compared to HKD 4,137,900,000 in 2018[12] - Revenue from the production business was HKD 3,316,700,000, up 13.7% from HKD 2,917,300,000 in 2018[12] - Revenue from the high-end fashion retail business reached HKD 1,753,000,000, representing a significant year-on-year increase of 43.6% from HKD 1,220,700,000[13] - Profit attributable to equity holders for 2019 was HKD 64,200,000, a 52.0% increase from HKD 42,300,000 in 2018[14] - Operating profit for 2019 was HKD 163,560,000, slightly down from HKD 165,805,000 in 2018[10] - Gross profit increased by HKD 297,800,000 to HKD 1,442,300,000, a 26.0% increase compared to HKD 1,144,500,000 in 2018, with a gross margin of 28.4%[21] - Operating profit remained stable at HKD 163,600,000, slightly down from HKD 165,800,000 in 2018, impacted by rising operating costs and one-time items[22] Retail Expansion - The number of retail stores increased to 252 by the end of 2019, up from 181 in 2018, with 206 located in mainland China[13] - The total number of physical stores increased to 252, up from 181, with 206 located in mainland China[33] Financial Position - The total assets amounted to HKD 4,343,925,000, an increase from HKD 3,394,490,000 in 2018[10] - Current liabilities increased to HKD 1,810,505,000 from HKD 1,198,331,000 in 2018[10] - The net debt to equity ratio for 2019 was 25.5%, up from 5.9% in 2018[10] - As of December 31, 2019, the group's cash and bank balances amounted to HKD 486.6 million, an increase from HKD 355.1 million in 2018[46] - The group had floating-rate bank borrowings of HKD 1,021.1 million as of December 31, 2019, compared to HKD 478.9 million in 2018, resulting in a net debt-to-equity ratio of 25.5%[46] Dividend Policy - The company declared an interim dividend of HKD 0.01 per share for 2019, with a total payout of HKD 12,800,000, but did not recommend a final dividend due to uncertain market conditions[18] - The company aims to maintain a flexible dividend policy while preserving financial resources in light of the uncertain market conditions[18] - The company aims to create stable returns for shareholders, with a dividend policy that considers financial performance, retained earnings, and future expansion plans[122] Market Challenges - The Hong Kong market revenue declined by 29.3% due to external negative factors, including a drop in tourist numbers[33] - The company plans to continue investing in the mainland China retail market and expand its retail network in strategic cities despite the challenging business environment[21] - The company will implement cost-cutting measures and streamline operations to navigate the difficult business landscape ahead[21] Corporate Governance - The board consists of four executive directors and four independent non-executive directors, ensuring a balanced composition with relevant knowledge and experience[69] - The company has adopted the corporate governance code principles and complied with its provisions as per the listing rules[66] - The chairman and CEO roles are clearly separated to ensure a balance of power and authority within the board[72] - The company has established a nomination committee to recommend suitable candidates for directorships to the board[81] - The Nomination Committee evaluates candidates based on reputation, industry achievements, commitment of time, and diversity factors including gender and age[82] Risk Management - The group is committed to identifying, monitoring, and managing risks associated with its business activities, having adopted a risk management policy[102] - The internal audit department was established to assist the board in evaluating the effectiveness of the internal control system, operating independently from daily operations[110] - The risk management process includes identifying risks that may impact the group's business and operations, assessing their potential impact, and prioritizing them for management[106] - The group has implemented a continuous risk management philosophy in its operational and management processes[103] Environmental and Social Responsibility - The company has implemented energy-saving measures and encourages recycling to minimize environmental impact, adhering to relevant environmental regulations[135] - The company made charitable donations totaling HKD 724,000 during the review year[148] Shareholder Information - As of December 31, 2019, the company had 1,284,400,000 shares issued, with the largest shareholder, Mr. Li Guodong, holding 743,769,967 shares, representing 57.91% of the total[162] - Major shareholder Quinta holds 743,769,967 shares, representing 57.91% of the company's equity as of December 31, 2019[171] - The company has established a new share option plan effective from June 20, 2016, with a validity of ten years[176] Audit and Compliance - The financial statements for the year ended December 31, 2019, were audited by PricewaterhouseCoopers[189] - The company confirmed compliance with the disclosure requirements of the listing rules regarding related party transactions[184] - The company adhered to the disclosure requirements set forth by the Hong Kong Companies Ordinance[195]

Financial Performance - The company's revenue from continuing operations for the six months ended June 30, 2019, was HKD 2,265,292,000, representing a 21.4% increase compared to HKD 1,865,884,000 for the same period in 2018[26]. - Gross profit increased by HKD 186,200,000 to HKD 691,577,000, with a gross margin of 30.5%, up from 27.1% in the previous year, indicating a 36.8% year-on-year growth[29]. - Operating profit decreased by HKD 32,300,000 to HKD 84,253,000, primarily due to the absence of a significant gain from the sale of a subsidiary in 2018, which was HKD 123,800,000 before tax[30]. - Profit attributable to equity holders decreased by HKD 35,900,000 to HKD 27,642,000, with a normalized profit of HKD 12,216,000 after excluding the impact of subsidiary sales[31]. - Net profit attributable to equity holders of the company was HKD 27,642 thousand, a decline of 56.7% compared to HKD 63,467 thousand in the prior year[66]. - Total comprehensive income for the period was HKD 19,556 thousand, significantly lower than HKD 50,249 thousand in the previous year[72]. Dividends and Shareholder Returns - The company proposed an interim dividend of HKD 0.01 per share, down from HKD 0.03 per share in the previous year[31]. - Basic earnings per share for continuing operations was HKD 0.022, down from HKD 0.066 in the same period last year[69]. - The interim dividend declared was HKD 0.01 per share, down from HKD 0.03 per share in the previous year, reflecting a reduction of 66.7%[159]. Debt and Leverage - The net debt-to-equity ratio increased to 20.6% from 5.9% in the previous year, indicating a significant rise in leverage[27]. - The group had floating-rate bank borrowings of HKD 833.5 million as of June 30, 2019, up from HKD 478.9 million as of December 31, 2018, indicating increased leverage[49]. - The total liabilities increased to HKD 2,106.8 million as of June 30, 2019, from HKD 1,409.8 million as of December 31, 2018, highlighting a rise in financial obligations[62]. Operational Changes - The company has ceased its sportswear retail network in Hong Kong, with all retail stores closed by the end of 2018, eliminating any financial impact in 2019[30]. - The strong growth in the premium fashion retail business contributed positively to the overall operating performance despite the decline in operating profit[30]. - The company plans to enhance production efficiency at the new factory in mainland China and the renovated facility in Vietnam to achieve optimal levels[45]. Revenue Segmentation - The revenue from the sportswear production business increased by HKD 118.1 million to HKD 1,273.2 million, representing a growth of 10.2%[34]. - The revenue from the high-end fashion retail business surged by HKD 277.6 million to HKD 826.9 million, marking a 50.5% increase[39]. - The revenue from the high-end functional outdoor clothing production business rose by HKD 4.5 million to HKD 151.4 million, but the operating loss increased to HKD 39.9 million[37]. - The revenue from the e.dye business decreased by HKD 0.8 million to HKD 13.8 million, with an operating loss of HKD 24.1 million[38]. Cash Flow and Liquidity - As of June 30, 2019, the group's cash and bank balances increased to HKD 389.8 million from HKD 355.1 million as of December 31, 2018, primarily due to cash generated from operating activities and bank borrowings[49]. - The net cash outflow from operating activities for the six months ended June 30, 2019, was HKD 116,132,000, compared to HKD 68,749,000 in 2018[80]. - The cash and cash equivalents at the end of the period were HKD 389,835,000, down from HKD 565,082,000 at the end of June 30, 2018[80]. Employee and Operational Capacity - The group employed approximately 21,000 employees as of June 30, 2019, an increase from 19,000 employees as of December 31, 2018, indicating growth in operational capacity[52]. - Total compensation for key management personnel was HKD 10,109,000 in 2019, a slight increase from HKD 10,011,000 in 2018[186]. Asset Management - Non-current assets totaled HKD 1,745.7 million as of June 30, 2019, compared to HKD 1,317.8 million as of December 31, 2018, showing a significant increase in asset base[62]. - Current assets amounted to HKD 2,539.2 million as of June 30, 2019, up from HKD 2,046.4 million as of December 31, 2018, reflecting improved liquidity[62]. - Total assets as of June 30, 2019, amounted to HKD 4,284,993, up from HKD 3,394,490 at the end of 2018, reflecting a growth of approximately 26.3%[117]. Risks and Legal Position - The group had no significant contingent liabilities or major litigation as of June 30, 2019, indicating a stable legal and financial position[54]. - The company faced various financial risks, including market risk, credit risk, and liquidity risk, which are detailed in the annual financial statements[102].

Financial Performance - The revenue from continuing operations for the year 2018 was HKD 4,137,900,000, representing an increase of 18.3% compared to HKD 3,496,500,000 in 2017[13]. - The production business generated revenue of HKD 2,924,700,000, an increase of 11.6% from HKD 2,620,900,000 in the previous year[13]. - The high-end fashion retail business achieved revenue of HKD 1,220,700,000, marking a significant growth of 38.0% from HKD 884,700,000 in 2017[13]. - The company's revenue from continuing operations for the year ended December 31, 2018, was HKD 4,137,900,000, an increase of 18.3% compared to HKD 3,496,500,000 in 2017, primarily driven by the acquisition of the high-end functional outdoor apparel production business and rapid expansion in the retail network in mainland China[21]. - The gross profit margin for 2018 decreased to 27.7%, down from 27.8% in 2017, due to higher production capacity and labor costs, although this was partially offset by strong growth in the high-end fashion retail business[21]. - Operating profit increased by HKD 71,200,000 to HKD 165,800,000 in 2018, mainly due to a gain of HKD 123,800,000 from the sale of a subsidiary owning land in China[22]. - The e.dye business revenue increased by HKD 13,100,000 to HKD 28,400,000, representing an 85.6% growth, but incurred an operating loss of HKD 48,800,000[29]. - The high-end fashion retail business revenue rose by HKD 336,000,000 to HKD 1,220,700,000, a 38.0% increase, primarily due to rapid expansion in the mainland China retail network[32]. - Operating profit for the high-end fashion retail business reached a record high of HKD 137,100,000, up 116.9% from HKD 63,200,000[33]. - The sportswear retail business revenue decreased by HKD 95,700,000 to HKD 132,100,000, a decline of 42.0%, with an operating loss of HKD 47,400,000[34]. Retail Expansion - The number of retail stores increased to 181 by the end of 2018, up from 150 in 2017, with 133 stores located in mainland China[13]. - The company remains optimistic about opportunities in the mainland China market and plans to expand its retail network in strategic cities[17]. - The retail network for high-end fashion increased to 181 stores by December 31, 2018, up from 150 stores in 2017, with 133 located in mainland China[31]. - The company continues to focus on expanding its e-commerce channels to tap into the rapidly growing online market[42]. Asset Management - The total assets amounted to HKD 3,394,490,000, compared to HKD 2,955,258,000 in the previous year[9]. - The current ratio was reported at 1.7, down from 2.7 in 2017, indicating a decrease in liquidity[9]. - The company's distributable reserves as of December 31, 2018, amounted to HKD 733,500,000, a decrease from HKD 798,100,000 in 2017[135]. - The group had floating-rate bank borrowings of HKD 478.9 million as of December 31, 2018, compared to HKD 177.1 million in 2017, with an unused bank financing amount of HKD 152.5 million[46]. - The debt-to-equity ratio as of December 31, 2018, was 22.1%, up from 8.0% in 2017, indicating increased leverage[46]. Corporate Governance - The board of directors is responsible for the overall management of the group, including formulating business strategies and management objectives[66]. - The company has adopted the corporate governance code principles as per the listing rules, ensuring compliance with its provisions[65]. - The board consists of four executive directors and four independent non-executive directors, maintaining a balanced composition[68]. - The company has received confirmations of independence from its independent non-executive directors, ensuring their impartiality[80]. - The Nomination Committee evaluates candidates based on factors such as reputation, achievements in the industry, time commitment, and diversity aspects including gender and age[82]. - The Audit Committee is responsible for overseeing the fairness of the group's financial statements and reviewing financial controls and risk management systems[85]. - The company has adopted a diversity policy for board members, which includes annual reviews of the board's structure and composition[88]. - The company has implemented a training program for directors to enhance their knowledge and skills, ensuring they are well-informed to contribute effectively[77]. Risk Management - The company has adopted risk management policies and conducted risk assessments to identify significant risks associated with its business activities[99]. - The company’s internal control aims to provide reasonable assurance to avoid significant misstatements or losses[104]. - The board is responsible for establishing and maintaining the risk management and internal control systems of the group[98]. - The company has implemented a continuous process for identifying, assessing, and managing significant risks[101]. - The audit committee is satisfied with the effectiveness and adequacy of the company's risk management and internal control systems as of the end of the fiscal year 2018[106]. Employee Relations - The group employed approximately 19,000 employees as of December 31, 2018, an increase from approximately 16,000 employees in 2017[47]. - The group has established employee benefits including retirement benefits, insurance, medical allowances, and stock option plans[47]. - The company participates in defined contribution retirement plans for eligible employees in mainland China, Vietnam, and Cambodia, as well as mandatory provident fund schemes for employees in Hong Kong[173]. Environmental Responsibility - The company has implemented energy-saving measures and encourages recycling to minimize environmental impact[128]. Shareholder Engagement - The company has established a shareholder communication policy to ensure effective engagement with shareholders[111]. - The company aims to ensure that remuneration policies are based on skills, knowledge, responsibilities, and company performance[90]. - The company’s dividend policy is subject to review and may be updated at the board's discretion[117]. Audit and Compliance - The independent auditor's report confirmed that the consolidated financial statements fairly present the group's financial position and performance for the year ended December 31, 2018, in accordance with Hong Kong Financial Reporting Standards[182]. - The auditor evaluated the appropriateness of the valuation methods used by management and assessed the quality of the forecasts against actual performance from previous years[191]. - The audit included comparisons of forecasted sales performance against approved budgets and business plans[197].