同得仕(集团)(00518) - 2025 - 年度财报

Company Information Board of Directors and Committee Composition The company's board of directors comprises executive and independent non-executive directors, with independent directors chairing or serving on key committees to ensure governance independence and professionalism - The Board of Directors consists of three executive directors and four independent non-executive directors, with Mr. Tung Hiu Man serving as Chairman[8] - The Audit, Remuneration, and Nomination Committees all include independent non-executive directors, ensuring the independence of corporate governance[8] - Ms. Kwan Shuk Ki is the Company Secretary, and the registered office is located at Unit A, 26/F, EGL Plaza, 83 Hung To Road, Kwun Tong, Kowloon, Hong Kong[8] Chairman's Statement Annual Operating Review The Group achieved a 29.5% revenue growth to HKD 669.5 million despite a complex operating environment, but reported a HKD 9.9 million loss attributable to owners due to H1 supply chain disruptions - The operating environment for the year was complex, facing challenges such as geopolitical tensions, trade protectionism, and cautious consumers[9] - Total Revenue Comparison | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Growth Rate | | :--- | :--- | :--- | :--- | | Total Revenue | 669,500 | 516,800 | 29.5% | - Loss attributable to owners of the company was HKD 9.9 million, primarily due to supply chain disruptions at the Asian production center and production cost pressures in the first half of the year[9] Strategy and Outlook The Group is implementing a comprehensive feedback strategy focusing on cost optimization, operational efficiency, and customer-centricity, while advancing digitalization and ESG principles for sustainable growth - Implementation of a comprehensive feedback strategy, focusing on cost optimization, operational efficiency, and customer-centric execution[10] - Environmental, Social, and Governance (ESG) principles guide the strategy, expanding the use of eco-friendly materials, improving energy efficiency, and enhancing operational traceability[10] - Looking ahead, the Group will continue to pursue market expansion, accelerate product innovation, enhance digitalization capabilities, and seek long-term sustainable growth[10] Management Discussion and Analysis Operating Results and Financial Review Total revenue increased by 29.5% to HKD 669.5 million, driven by international exports and domestic sales, while gross margin declined and loss per share narrowed - Revenue Comparison | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 669,450 | 516,783 | - Total revenue increased by 29.5% year-on-year, driven by sales growth in international export markets, the China domestic market, and retail business[14] - Distribution Expenses Comparison | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Advertising and Promotion Fees | 19,073 | 15,960 | 3,113 | 19.5% | | Freight and Handling Fees | 6,515 | 3,160 | 3,355 | 106.2% | | Store Management Fees | 14,637 | 8,824 | 5,813 | 65.9% | | Store Rent and Operating Expenses | 8,586 | 10,296 | (1,710) | (16.6%) | | Staff Costs | 12,017 | 12,069 | (52) | (0.4%) | | Other Distribution Expenses | 4,999 | 4,998 | 1 | 0.0% | | Total | 65,827 | 55,307 | 10,520 | 19.0% | - Gross profit margin decreased by 2.2 percentage points to 18.3%, primarily due to pricing pressure in the manufacturing segment and increased production and procurement costs[17] - Administrative Expenses Comparison | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Auditor's Remuneration | 1,127 | 1,096 | 31 | 2.8% | | Depreciation and Amortisation | 3,411 | 5,509 | (2,098) | (38.1%) | | Entertainment and Travel Expenses | 3,362 | 2,941 | 421 | 14.3% | | Exchange Loss | 2 | 715 | (713) | (99.7%) | | Legal and Professional Fees | 2,535 | 2,976 | (441) | (14.8%) | | Staff Costs | 52,384 | 53,380 | (996) | (1.9%) | | Office Expenses | 4,232 | 3,875 | 357 | 9.2% | | Other Administrative Expenses | 6,346 | 6,306 | 40 | 0.6% | | Total | 73,399 | 76,798 | (3,399) | (4.4%) | - Key Profitability Indicators Comparison | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | EBITDA | 2,851 | 1,561 | | Loss Before Tax | (9,872) | (13,310) | | Loss Per Share (HK cents) | (2.2) | (2.8) | - Operating Efficiency Indicators Comparison | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Inventory Turnover Days | 58 days | 71 days | | Trade Receivables Turnover Days | 57 days | 61 days | Business Review The Group demonstrated resilience through customer-centric strategies, achieving sales growth in North America and other markets despite production cost increases in Vietnam and supply chain challenges - The Group demonstrated resilience through customer-centric and value-oriented business strategies, leveraging sustained demand in North America and strategically shifting focus to Canada and other lower-risk international markets[29] - Vietnam operations faced capacity constraints and order backlogs due to inefficient logistics in the first half, incurring additional air freight costs, while rising minimum wages increased production costs[29] - China's domestic manufacturing services secured new business from emerging local brands by adopting a flexible small-batch production model, with sales increasing by 30.9% to HKD 74.1 million[30][32] - Sales by Market Comparison | Market | 2025 (HKD thousands) | 2024 (HKD thousands) | Growth Rate | | :--- | :--- | :--- | :--- | | Asia Market | 332,500 | 277,700 | 19.7% | | North America Market | 311,900 | 220,875 | 41.2% | | Europe and Other Markets | 25,100 | 18,196 | 37.9% | - Total retail business sales increased by 15.8% to HKD 233.6 million, primarily driven by online sales growth, with retail segment operating profit rising to HKD 9.6 million (2024: HKD 8.5 million)[36][37] Outlook The Group plans to enhance core capabilities, strengthen customer relationships, and expand beyond the US market, leveraging its dual-base manufacturing model and digital-first retail strategy for sustainable growth - Facing macroeconomic headwinds, the Group will enhance core capabilities, strengthen customer relationships, and strategically expand into markets beyond the United States[38] - The dual-base manufacturing model (China and Vietnam) provides flexible strategic adjustment capabilities, with plans to strengthen the local procurement network in Vietnam, maintain cost control, and improve operational efficiency[38] - Internationally, the Group will strengthen business development in the Asia-Pacific region (Japan and Australia) and Europe; domestically, it will continue to explore growth opportunities in the Greater China market and refine its digital-first retail model, prioritizing live streaming and social commerce[38][39] - Domestic production and sales capabilities will be repositioned towards higher-margin and value-added services, such as design and vertically integrated solutions[39] Capital Expenditure and Financial Resources Capital expenditure for the year was HKD 3.1 million, with the Group maintaining a sound financial position, HKD 240.5 million in cash, and a 19.6% gearing ratio - Capital Expenditure Comparison | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Capital Expenditure | 3,100 | 2,100 | - Liquidity and Financial Resources Comparison | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Cash Level | 240,500 | 269,300 | | Pledged Bank Deposits | 104,000 | 101,100 | | Total Bank Borrowings | 74,100 | 51,400 | | Gearing Ratio | 19.6% | N/A | - The Group adopts a prudent policy to hedge exchange rate and interest rate risks, and regularly reviews net foreign exchange exposure to manage the impact of currency fluctuations[43][44] - Interest rate risk primarily arises from interest-bearing borrowings, which the Group monitors regularly to avoid excessively significant volatility risks[45] Human Resources and Litigation The Group employs approximately 1,500 staff with HKD 136 million in employee benefits, and is involved in one ongoing litigation detailed in note 33 to the consolidated accounts - The Group employs approximately 1,500 staff, with total annual employee benefits expenses of HKD 136 million (2024: HKD 127.3 million)[46] - The company is committed to attracting and retaining talented employees, offering career development opportunities, job satisfaction, and competitive remuneration packages[46] - The current year involves one litigation, with specific details provided in Note 33 to the consolidated accounts[47] Corporate Governance Report A. Directors The Board is responsible for strategy and oversight, holding at least four annual meetings, with distinct roles for Chairman, Vice Chairman, and Managing Director to ensure power balance - The Board of Directors holds at least four meetings annually, with six board meetings and one general meeting held during the current year[50] - The positions of Chairman, Vice Chairman, and Managing Director are held by different individuals, ensuring a balance of power and effective execution of board decisions[52] - The composition of the Board is regularly reviewed to ensure appropriate professional knowledge, skills, and experience, and confirmations of independence have been received from independent non-executive directors[53][54] - All directors comply with the Model Code for Securities Transactions by Directors of Listed Issuers and receive continuous professional development training[55] B. Delegation of Board Authority The Board delegates specific responsibilities to the Audit, Remuneration, and Nomination Committees, each with defined written terms of reference to ensure effective oversight - The Board has established an Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific areas, each with defined written terms of reference[59] - The Audit Committee is authorized to perform corporate governance functions, including formulating and reviewing corporate governance policies, overseeing director and senior management training, and ensuring compliance with laws and regulations[60] C. Nomination Committee Chaired by Mr. Tung Hiu Man, the Nomination Committee reviews board structure, identifies potential directors, assesses independence, and recommends appointments, re-election, and succession plans - The Nomination Committee is chaired by Mr. Tung Hiu Man, with two independent non-executive directors as members[61] - Its primary responsibilities include reviewing the board structure, identifying and nominating potential director candidates, assessing the independence of independent non-executive directors, and making recommendations on director appointments, re-election, and succession planning[65] - A board diversity policy has been adopted, considering factors such as gender, age, ethnicity, educational background, skills, and professional experience, with its effectiveness reviewed annually[62] - The Nomination Committee held two meetings during the year, with all members attending[66] D. Remuneration Committee Chaired by independent non-executive director Mr. Cheung Chung Ki, the Remuneration Committee advises on and determines remuneration policies for directors and senior management based on responsibilities and market conditions - The Remuneration Committee is chaired by independent non-executive director Mr. Cheung Chung Ki, with executive director Mr. Tung Hiu Man and independent non-executive director Ms. Li Siu Mei as members[66] - Its main responsibilities are to advise the Board on the remuneration policy and structure for all directors and senior management, and to determine the remuneration packages for individual executive directors and senior management[66] - Remuneration is determined by reference to functional responsibilities, industry experience, prevailing market conditions, and the Group's performance, ensuring no director or their associates participate in determining their own remuneration[66] - The Remuneration Committee held one meeting during the year, with all members attending[67] - Senior Management Remuneration Bands (Excluding Directors) | Remuneration Band | Number of Individuals | | :--- | :--- | | HKD 500,001 to HKD 1,000,000 | 2 | | HKD 1,000,001 to HKD 1,500,000 | 2 | E. Audit Committee Composed entirely of independent non-executive directors and chaired by Mr. Yuen Ki Lok, the Audit Committee oversees financial reporting, risk management, and internal controls, meeting three times annually - All members of the Audit Committee are independent non-executive directors, with Mr. Yuen Ki Lok, who possesses recognized accounting professional qualifications and extensive experience, serving as Chairman[70] - Its primary functions are to oversee the Group's financial reporting system, risk management, and internal control systems, and to review financial information and the reporting process[70] - The Audit Committee held three meetings during the year and conducted three independent meetings with the external auditor, reviewing financial statements, accounting principles, regulatory compliance, risk management, and internal controls[70] F. Accountability and Audit The Board is responsible for fair financial statements and effective internal controls, annually reviewing risk management and internal control systems, and ensuring timely disclosure of inside information - Directors confirm their responsibility to present true and fair financial statements reflecting the Group's position and ensure appropriate accounting policies are adopted[72] - The Board annually reviews the effectiveness of the Group's risk management and internal control systems, covering financial, operational, and compliance controls[74] - The Group has established an information disclosure policy and taken reasonable measures to handle and disseminate inside information, including restricting access, prohibiting unauthorized use, and prompt disclosure[75][80] - External Auditor's Remuneration | Services Provided | Fees (HKD thousands) | | :--- | :--- | | Audit Services | 850 | | Non-Audit Services | 277 | G. Communication with Shareholders The company maintains a shareholder communication policy, providing comprehensive information through reports and its website, enabling shareholders to raise inquiries and request general meetings - The company has adopted a shareholder communication policy, providing clear and comprehensive Group information through interim and annual reports, circulars, notices, and the company website[79] - Shareholders may request general meetings or circulate resolutions in accordance with the Companies Ordinance and may submit written questions to the Board[82][83] - All resolutions will be voted on by poll, with results published on the company's and the Stock Exchange's websites[84] - The company has adopted a dividend policy aimed at allowing shareholders to share in profits while retaining sufficient reserves and liquidity for future business development[85] H. Company Secretary Ms. Kwan Shuk Ki was appointed Company Secretary on October 1, 2024, and completed over 15 hours of professional training during the fiscal year - Ms. Kwan Shuk Ki was appointed Company Secretary effective October 1, 2024, and received no less than 15 hours of relevant professional training during the fiscal year[86] Directors' Report Principal Business and Financial Performance The company, an investment holding entity, primarily engages in garment manufacturing, sales, and retail, with the Board recommending a final dividend of HKD 0.5 cents per share - The company is an investment holding company, with its principal subsidiaries engaged in the manufacturing and sale of garment products, and retail of garment products[90] - The largest customer and the five largest customers accounted for 22% and 52% of total sales respectively for the year[91] - The Board recommends a final dividend of HKD 0.5 cents per share for the year ended March 31, 2025 (2024: HKD 0.5 cents per share)[92] - Distributable Reserves | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Accumulated Profits | 100,213 | 88,450 | Key Risks and Uncertainties The Group faces risks from economic climate, key personnel loss, credit, liquidity, currency, and interest rates, mitigated by market diversification, talent retention, and hedging strategies - Key risks include economic climate and market performance (affecting consumer confidence and purchasing habits), and loss of key personnel (lack of experienced talent may hinder strategic objectives)[98][99] - Customer credit risk is managed through credit limits, approval processes, and overdue debt collection procedures; liquidity risk is managed by monitoring cash and cash equivalents levels and bank borrowing utilization[101][103] - Currency risk (foreign currency transactions and borrowings) is hedged through foreign currency forward contracts; interest rate risk (floating-rate borrowings) is managed through regular monitoring and hedging measures[105][107] Compliance and Responsibilities The Group is committed to complying with relevant laws and regulations, including the Listing Rules and Corporate Governance Code, and engages with stakeholders to ensure responsible operations - The Group is committed to complying with relevant laws and regulations, including the Companies Ordinance, Listing Rules, Securities and Futures Ordinance, and Corporate Governance Code[109] - The Model Code for Securities Transactions by Directors of Listed Issuers has been adopted, and strict compliance with employment, human rights, labor rights, supply chain management, product liability, and anti-corruption regulations is maintained[109] - The Group regularly collects feedback from customers, employees, suppliers, and other stakeholders to ensure responsible operations and align with all parties' interests[110] - During the year, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[112] Directors and Senior Management The Board comprises executive and independent non-executive directors, with details on their backgrounds and shareholdings, and a rotation policy for re-election - For the current year and up to the report date, the Board of Directors included executive directors Tung Hiu Man (Chairman), Tung Chung Man (Vice Chairman), Tung Wai Man (Managing Director), and independent non-executive directors Cheung Chung Ki, Yuen Ki Lok, Yu Wing Sang, and Li Siu Mei[114] - Mr. Tung Hiu Man, Mr. Cheung Chung Ki, and Mr. Yu Wing Sang will retire by rotation at the upcoming Annual General Meeting and are eligible for re-election[114] - The report provides detailed backgrounds, experience, and responsibilities of each director and senior management member, including Group Financial Controller Kwan Shuk Ki, Group Chief Financial Officer Cheung Yiu Shan, and Sales Director Li Ka Ki[116][117][118][119][120][121][122][123][124][125][127][128] - Directors' Interests in the Company's Shares | Director Name | Capacity | Number of Issued Ordinary Shares Held | Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Tung Hiu Man | Beneficial Owner | 1,604,000 | 0.36% | | Tung Chung Man | Beneficial Owner | 3,052,400 | 0.68% | | Tung Wai Man | Beneficial Owner | 360,000 | 0.08% | | Cheung Chung Ki | Beneficial Owner | 3,844,760 | 0.85% | Major Shareholders and Share Option Scheme Major shareholders include Corona Investments Limited and Webb David Michael, while the share option scheme, valid until 2028, aims to incentivize participants, with no options granted this year - Major Shareholder Holdings | Shareholder Name | Capacity | Number of Issued Ordinary Shares Held | Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Corona Investments Limited | Beneficial Owner | 150,059,268 | 33.27% | | Mr. Tung Wah Wing | Interest in Controlled Corporation | 150,059,268 | 33.27% | | Ms. Wong Fung Lin | Interest in Controlled Corporation | 150,059,268 | 33.27% | | Preferable Situation Assets Limited | Beneficial Owner | 35,778,200 | 7.93% | | Member One Limited | Beneficial Owner | 25,391,800 | 5.63% | | Webb David Michael | Interest in Controlled Corporation | 61,170,000 | 13.56% | - The company continues to operate a share option scheme designed to incentivize or reward eligible participants for their contributions to the Group, which remains effective until August 30, 2028[139] - The total number of shares that may be allotted and issued upon exercise of all options granted under the share option scheme shall not exceed 10% of the company's issued share capital on the adoption date of the scheme (i.e., 46,407,755 shares)[139] - The total number of shares issued and to be issued upon exercise of all options granted to any single participant within any 12-month period shall not exceed 1% of the company's issued share capital from time to time[140] - During the year, no share options were granted, vested, exercised, cancelled, or lapsed[144] Other Disclosures The company confirms no management contracts, independent non-executive director independence, compliance with the Corporate Governance Code, and sufficient public float, with charitable donations of HKD 21,000 - During the year, the company did not enter into or maintain any contracts concerning the management or administration of its whole business or any significant part thereof[145] - The company has received annual confirmations of independence from each independent non-executive director and considers all independent non-executive directors to be independent[146] - The company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules throughout the financial year[147] - The company maintains a sufficient public float, which is not less than 25% of its issued shares[149] - During the year, the Group's charitable and other donations amounted to approximately HKD 21,000[150] - Deloitte Touche Tohmatsu Certified Public Accountants LLP served as the auditor for the current year and will retire, being eligible for re-election at the Annual General Meeting[151] Independent Auditor's Report Opinion and Basis The independent auditor issued an unmodified opinion on the consolidated financial statements, confirming their fair presentation in accordance with HKFRS and the Hong Kong Companies Ordinance - The auditor issued an unmodified opinion on the consolidated financial statements, deeming them to present fairly, in all material respects, the Group's financial position, performance, and cash flows[153] - The audit was conducted in accordance with Hong Kong Standards on Auditing issued by the Hong Kong Institute of Certified Public Accountants and complied with professional ethical requirements[155] Key Audit Matters Key audit matters include inventory valuation and impairment of property, plant, and equipment, involving significant management judgment and auditor assessment of estimates - Inventory valuation was identified as a key audit matter due to management's judgment and estimation involved in inventory provisions[154] - Inventory Carrying Value and Provision | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Inventory Carrying Value | 105,881 | 99,643 | | Inventory Provision/(Reversal) | 540 | (3,921) | - Impairment of production equipment and machinery, furniture, fixtures and equipment, leasehold improvements, and right-of-use assets was identified as a key audit matter due to its materiality and the high degree of management judgment involved[158] - Based on management's assessment, no impairment losses were recognized for production equipment and machinery, furniture, fixtures and equipment, leasehold improvements, and right-of-use assets for the years ended March 31, 2025 and 2024[159] Directors' and Auditor's Responsibilities Directors are responsible for preparing fair financial statements and internal controls, while the auditor aims for reasonable assurance against material misstatement, exercising professional judgment and skepticism - Directors are responsible for preparing consolidated financial statements that give a true and fair view in accordance with Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance, and for internal controls[161] - The auditor's objective is to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error[164] - The auditor exercises professional judgment, maintains professional skepticism, and communicates with those charged with governance regarding the planned scope, timing of the audit, and significant audit findings[164] - The auditor evaluates the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors[164] Consolidated Statement of Profit or Loss Profit or Loss Performance For the year ended March 31, 2025, the Group reported revenue of HKD 669.45 million and a loss of HKD 11.07 million, with loss attributable to owners narrowing to HKD 9.931 million - Consolidated Statement of Profit or Loss Key Data | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 669,450 | 516,783 | | Cost of Sales | (547,205) | (410,964) | | Gross Profit | 122,245 | 105,819 | | Other Income and Gains | 10,621 | 12,978 | | Distribution Expenses | (65,827) | (55,307) | | Administrative Expenses | (73,399) | (76,798) | | Finance Costs | (3,814) | (3,326) | | Loss Before Tax | (9,872) | (13,310) | | Loss for the Year | (11,070) | (13,989) | | Loss Attributable to Owners of the Company | (9,931) | (12,796) | | Loss Per Share (HK cents) | (2.2) | (2.8) | Consolidated Statement of Profit or Loss and Other Comprehensive Income Comprehensive Income Performance The Group reported a loss of HKD 11.07 million, with total comprehensive expense for the year significantly reduced to HKD 6.117 million, driven by revaluation gains and foreign exchange differences - Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Loss for the Year | (11,070) | (13,989) | | Exchange Differences on Translation of Foreign Operations | 446 | (2,446) | | Gain on Revaluation of Property Transferred from Property, Plant and Equipment to Investment Properties | 4,507 | – | | Other Comprehensive Income/(Expense) for the Year | 4,953 | (2,446) | | Total Comprehensive Expense for the Year | (6,117) | (16,435) | | Total Comprehensive Expense Attributable to Owners of the Company | (4,978) | (15,242) | Consolidated Statement of Financial Position Financial Position Overview The Group's total assets less current liabilities stood at HKD 378.479 million, with total equity at HKD 377.705 million, reflecting a mix of investment properties, inventory, and bank balances - Consolidated Statement of Financial Position Key Data | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Non-Current Assets | | | | Investment Properties | 33,022 | 28,017 | | Property, Plant and Equipment | 44,101 | 45,817 | | Right-of-use Assets | 6,769 | 10,670 | | Investment in an Associate | 404 | 451 | | Current Assets | | | | Inventories | 105,881 | 99,643 | | Trade and Other Receivables | 122,000 | 103,896 | | Pledged Bank Deposits | 103,964 | 101,114 | | Bank Balances and Cash | 136,583 | 168,162 | | Current Liabilities | | | | Trade and Other Payables | 86,978 | 107,785 | | Contract Liabilities | 10,905 | 5,076 | | Bank Borrowings | 74,071 | 51,392 | | Capital and Reserves | | | | Equity Attributable to Owners of the Company | 392,195 | 399,428 | | Non-Controlling Interests | (14,490) | (13,351) | | Total | 377,705 | 386,077 | Consolidated Statement of Changes in Equity Equity Changes Overview Total equity attributable to owners decreased to HKD 392.195 million, influenced by the year's loss, property revaluation gains, and foreign exchange differences, alongside dividend payments - Consolidated Statement of Changes in Equity Key Data | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company at Beginning of Year | 399,428 | 416,925 | | Loss for the Year | (9,931) | (12,796) | | Exchange Differences on Translation of Foreign Operations | 446 | (2,446) | | Gain on Revaluation of Property Transferred from Property, Plant and Equipment to Investment Properties | 4,507 | – | | Dividends Recognized as Distributed | (2,255) | (2,255) | | Equity Attributable to Owners of the Company at End of Year | 392,195 | 399,428 | - Property revaluation reserve represents the difference between the net carrying amount and the fair value, net of deferred tax, of properties transferred from property, plant and equipment to investment properties[174] - Statutory reserve represents amounts transferred from post-tax profits by PRC subsidiaries in accordance with relevant PRC laws, until it reaches 50% of their registered capital[175] Consolidated Statement of Cash Flows Cash Flow Overview Net cash used in operating activities was HKD 44.294 million, while investing and financing activities generated HKD 0.755 million and HKD 12.263 million respectively, leading to a year-end cash balance of HKD 136.583 million - Consolidated Statement of Cash Flows Key Data | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (44,294) | (17,708) | | Net Cash From Investing Activities | 755 | 15,161 | | Net Cash From/(Used in) Financing Activities | 12,263 | (13,403) | | Net Decrease in Cash and Cash Equivalents | (31,276) | (15,950) | | Cash and Cash Equivalents at End of Year | 136,583 | 168,162 | Notes to the Consolidated Financial Statements 1. General Information The company is a public limited company incorporated in Hong Kong, listed on the HKEX, operating as an investment holding company with its primary business in garment manufacturing and sales - The company is a public limited company incorporated in Hong Kong and listed on The Stock Exchange of Hong Kong Limited, primarily engaged in investment holding[179][181] - The functional currency is US dollars, but the consolidated financial statements are presented in Hong Kong dollars for the convenience of shareholders[180] 2. Application of New and Revised Hong Kong Financial Reporting Standards ("HKFRSs") Several HKFRS amendments were applied this year with no material impact on financial position, while new standards like HKFRS 18 are expected to broadly affect presentation and disclosure without altering recognition or measurement - Several amendments to Hong Kong Financial Reporting Standards were applied for the first time this year, but they had no material impact on the Group's financial position and performance[182] - New HKFRS 18, issued but not yet effective, is expected to have widespread effects on presentation and disclosure in the financial statements, but will not affect the recognition or measurement of items[184] 3. Significant Accounting Policies This section details the Group's significant accounting policies for preparing consolidated financial statements, covering historical cost, fair value measurement, consolidation, revenue, leases, and financial instruments - The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, the Listing Rules, and the Hong Kong Companies Ordinance, using the historical cost convention, with certain properties and financial instruments measured at fair value[185] - The basis of consolidation is detailed, including the assessment of control, consolidation of subsidiary accounts, and allocation of non-controlling interests[187][189] - The equity method of accounting for investments in associates is explained, covering initial recognition, subsequent adjustments, and impairment testing[190][191][192] - Revenue recognition is based on the satisfaction of performance obligations, with revenue recognized when control of goods is transferred, involving refund liabilities and principal versus agent judgments[193][194][195] - Lease accounting policies cover both lessees (right-of-use assets, lease liabilities, short-term lease exemptions) and lessors (lease classification, rental income recognition)[196][197][199][202][205][211][212][213][214] - Foreign currency translation policies include the translation of foreign currency transactions, recognition of exchange differences on monetary items, and presentation of financial statements of overseas operations[216][218] - Tax policies cover the calculation of current and deferred income tax expenses, recognition of temporary differences, and assessment of uncertainties in income tax treatment[225][226][227][228] - Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, investment properties are measured at fair value, and asset impairment is assessed[229][230][231][232][233][234] - Classification, measurement, and impairment assessment (expected credit loss model) of financial instruments are core policies, including the recognition and derecognition of financial assets and financial liabilities[238][241][242][243][244][245][246][247][248][249][250][251][252][253][254][255][256][257][258][259][260] 4. Critical Accounting Judgments and Key Sources of Estimation Uncertainty Key judgments and estimation uncertainties involve expected credit loss provisions for trade receivables, inventory provisions, and impairment of property, plant, and equipment, which are susceptible to future events - Key accounting judgments and sources of estimation uncertainty primarily arise from expected credit loss provisions for trade and bills receivables, inventory provisions, and impairment of production equipment and machinery, furniture, fixtures and equipment, leasehold improvements, and right-of-use assets[262][263][264][265] - Inventory provisions are based on the assessment of net realizable value, considering aging analysis, market trends, and subsequent sales information[264] - Asset impairment assessment requires management to estimate the higher of an asset's fair value less costs of disposal and its value in use, involving judgments on future cash flow forecasts and discount rates[265][266] - For the year ended March 31, 2025, inventory provisions amounted to HKD 0.54 million, and no impairment losses were recognized for production equipment and right-of-use assets[264][267] 5. Revenue The Group's revenue, primarily from garment manufacturing, sales, and retail, totaled HKD 669.45 million, with significant contributions from China, the US, and Canada, all recognized at a point in time - Revenue by Business and Region (2025) | Business/Region | Production and Sale of Garment Products (HKD thousands) | Retail of Garment Products (HKD thousands) | Total (HKD thousands) | | :--- | :--- | :--- | :--- | | Total | 435,867 | 233,583 | 669,450 | | China | 74,887 | 233,583 | 308,470 | | United States | 176,066 | – | 176,066 | | Canada | 135,829 | – | 135,829 | | Other | 49,085 | – | 49,085 | - Revenue from the production and sale of garment products is recognized when control of the goods is transferred, i.e., when goods are shipped to the customer's designated location[269] - Revenue from the retail of garment products is recognized when control of the goods is transferred, i.e., when customers purchase the goods[270] - All revenue from contracts with customers is recognized within one year or less[271] 6. Segment Information The Group operates in three segments: Asia, North America, and Europe & Other, with total revenue of HKD 669.45 million and segment profit of HKD 14.362 million, primarily from China, the US, and Canada - The Group is organized into three operating segments: Asia, North America, and Europe & Other, with principal activities being the production and sale of garment products, and retail of garment products[272] - Segment Revenue and Profit/(Loss) (2025) | Segment | Revenue (HKD thousands) | Segment Profit/(Loss) (HKD thousands) | | :--- | :--- | :--- | | Asia | 332,464 | 13,279 | | North America | 311,895 | 1,668 | | Europe and Other | 25,091 | (585) | | Consolidated | 669,450 | 14,362 | - Geographical Segment Revenue | Region | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | China | 308,470 | 258,911 | | United States | 176,066 | 135,620 | | Canada | 135,829 | 85,255 | | Other | 49,085 | 36,997 | | Total | 669,450 | 516,783 | - Non-Current Assets by Location | Location | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | China | 37,146 | 34,167 | | Hong Kong | 33,688 | 35,906 | | Vietnam | 13,058 | 14,431 | | Total | 83,892 | 84,504 | - For the year ended March 31, 2025, one external customer in North America contributed over 10% of the Group's total sales (approximately HKD 149 million)[282] 7. Other Income and Gains Total other income and gains amounted to HKD 10.621 million, mainly comprising bank interest income of HKD 6.257 million and government grants of HKD 2.677 million - Other Income and Gains Comparison | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Bank Interest Income | 6,257 | 8,043 | | Government Grants | 2,677 | 3,623 | | Rental Income Net of Expenses | 889 | 938 | | Other Income | 798 | 365 | | Gain on Lease Termination | – | 9 | | Total | 10,621 | 12,978 | - Government grants primarily include special fund subsidies for brand development, upgrading and transformation, and domestic market expansion (HKD 0.163 million) and subsidies provided by the Chinese government (HKD 2.514 million)[283] 8. Finance Costs Total finance costs for the year were HKD 3.814 million, primarily consisting of interest on bank borrowings of HKD 3.623 million and lease liabilities of HKD 0.191 million - Finance Costs Comparison | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest on Bank Borrowings | 3,623 | 2,981 | | Interest on Lease Liabilities | 191 | 345 | | Total | 3,814 | 3,326 | 9. Net Impairment Losses Recognised on Financial Assets Net impairment losses recognized on financial assets amounted to HKD 0.038 million, primarily from trade and bills receivables impairment losses of HKD 0.041 million - Net Impairment Losses/(Reversals) on Financial Assets Comparison | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade and Bills Receivables | (41) | 1,025 | | Other Receivables | 3 | (6) | | Total | (38) | 1,019 | 10. Loss Before Tax The Group's loss before tax was HKD 9.872 million, after deducting directors' emoluments of HKD 8.507 million and other employee benefits of HKD 135.976 million - Loss Before Tax Major Deductions Comparison | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Total Directors' Emoluments | 8,507 | 10,453 | | Total Other Employee Benefits Expenses | 135,976 | 127,322 | | Auditor's Remuneration (Audit Services) | 850 | 820 | | Auditor's Remuneration (Non-Audit Services) | 277 | 276 | | Inventory Expenses Recognized as Expense | 547,205 | 410,964 | | Depreciation of Property, Plant and Equipment | 4,266 | 6,631 | | Depreciation of Right-of-use Assets | 4,643 | 4,914 | | Net Exchange Loss | 2 | 715 | 11. Directors' and Chief Executive's Emoluments Total emoluments for directors and the chief executive were HKD 8.507 million, a decrease from the prior year, with executive directors receiving salaries, benefits, and performance bonuses, and independent non-executive directors receiving fees - Total Directors' and Chief Executive's Emoluments Comparison | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Total Emoluments | 8,507 | 10,453 | - Executive Directors' Emoluments (2025) | Director Name | Fees (HKD thousands) | Salaries and Other Benefits (HKD thousands) | Performance Bonus (HKD thousands) | Retirement Benefit Scheme Contributions (HKD thousands) | Total (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Tung Hiu Man | 190 | 2,275 | 188 | 36 | 2,689 | | Tung Chung Man | 100 | 2,210 | 188 | 36 | 2,534 | | Tung Wai Man | 100 | 2,210 | 188 | 36 | 2,534 | - Independent Non-Executive Directors' Emoluments (2025) | Director Name | Fees (HKD thousands) | | :--- | :--- | | Cheung Chung Ki | 208 | | Yau Ming Kin (Retired) | 92 | | Yuen Ki Lok | 190 | | Yu Wing Sang | 100 | | Li Siu Mei | 160 | - Performance bonuses are determined based on the Group's operating results, individual performance, and prevailing market conditions[287] 12. Emoluments of Five Highest Paid Individuals Excluding directors, the two highest-paid employees received total emoluments of HKD 2.123 million, primarily from salaries and benefits, with no performance bonuses paid this year - Emoluments of Five Highest Paid Employees (Non-Directors) Comparison | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Salaries and Other Benefits | 2,105 | 2,139 | | Performance-Related Bonuses | – | 228 | | Retirement Benefit Scheme Contributions | 18 | 26 | | Total | 2,123 | 2,393 | - The five highest-paid individuals in the Group include three directors, with the remaining two employees having remuneration in the range of HKD 1,000,001 to HKD 1,500,000[291] - In both years, the Group did not pay any joining or leaving compensation to any director, chief executive, or the five highest-paid employees[291] 13. Income Tax Expense Total income tax expense was HKD 1.198 million, mainly from Hong Kong profits tax and PRC corporate income tax, with PRC subsidiaries benefiting from preferential tax rates for small-profit enterprises - Income Tax Expense Comparison | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Current Tax (Hong Kong) | (1,081) | (873) | | Current Tax (China) | (201) | (196) | | Over-provision in Prior Years | 108 | 227 | | Deferred Tax | (24) | 163 | | Total | (1,198) | (679) | - Hong Kong profits tax is calculated at a rate of 16.5%, with eligible entities' first HKD 2 million of assessable profits taxed at 8.25%[292] - The tax rate for most Chinese subsidiaries remains at 25%, with eligible small-profit enterprises enjoying preferential tax treatment[293][294] - Reconciliation of Income Tax Expense to Loss Before Tax (2025) | Item | HKD thousands | | :--- | :--- | | Loss Before Tax | (9,872) | | At Hong Kong Profits Tax Rate of 16.5% | 1,629 | | Tax Effect of Non-Deductible Expenses for Taxable Profit Calculation | (1,966) | | Tax Effect of Non-Taxable Income for Taxable Profit Calculation | 1,610 | | Tax Effect of Unrecognized Tax Losses | (5,662) | | Utilisation of Previously Unrecognized Tax Losses | 2,260 | | Over-provision in Prior Years | 108 | | Effect of Different Tax Rates Used by Subsidiaries Operating in Other Jurisdictions | 656 | | Effect of Two-Tiered Profits Tax Regime | 165 | | Tax Concession | 2 | | Income Tax Expense | (1,198) | 14. Dividends The Group recognized a final dividend of HKD 0.5 cents per share, totaling HKD 2.255 million, proposed for approval and payable on September 22, 2025 - Dividends Recognized as Distributed Comparison | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Final Dividend (HKD 0.5 cents per share) | 2,255 | 2,255 | - The Board recommends a final dividend of HKD 0.5 cents per share for the year ended March 31, 2025, which, subject to shareholders' approval, will be paid on September 22, 2025[297] 15. Basic and Diluted Loss Per Share Basic and diluted loss per share attributable to owners narrowed to HKD 2.2 cents, with no diluted loss per share presented due to the absence of potential ordinary shares - Loss Per Share Comparison | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the Year Attributable to Owners of the Company (HKD thousands) | (9,931) | (12,796) | | Weighted Average Number of Ordinary Shares in Issue During the Year | 451,067,557 | 451,067,557 | | Basic and Diluted Loss Per Share (HK cents) | (2.2) | (2.8) | - As there were no potential ordinary shares in issue for the years ended March 31, 2025 and 2024, diluted loss per share is not presented[298] 16. Property, Plant and Equipment Net book value of property, plant, and equipment was HKD 44.101 million, with additions of HKD 3.122 million and transfers to investment properties of HKD 1.723 million, and no impairment losses recognized - Property, Plant and Equipment Net Book Value Comparison | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Net Book Value | 44,101 | 45,817 | - Additions to property, plant and equipment amounted to HKD 3.122 million, and transfers to investment properties amounted to HKD 1.723 million during the year[299] - As of March 31, 2025, the Group pledged buildings with a net book value of HKD 31.32 million (2024: HKD 32.791 million) to secure general banking facilities[300] - Depreciation is calculated on a straight-line basis at annual rates ranging from 4% to 33.3%[300] - Based on management's assessment, no impairment losses were recognized for property, plant and equipment and right-of-use assets for the years ended March 31, 2025 and 2024[302] 17. Right-of-use Assets Net book value of right-of-use assets decreased to HKD 6.769 million, with additions of HKD 0.101 million and reductions due to lease terminations of HKD 4.554 million - Right-of-use Assets Net Book Value Comparison | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Net Book Value | 6,769 | 10,670 | - Additions to right-of-use assets amounted to HKD 0.101 million, reductions due to lease terminations amounted to HKD 4.554 million, and transfers to investment properties amounted to HKD 0.231 million during the year[303] - The Group leases various retail shops, offices, and warehouses, with lease terms ranging from 2 to 5 years[303] - Short-term lease expenses not included in the measurement of lease liabilities for the year amounted to HKD 1.398 million (2024: HKD 0.939 million)[303] 18. Investment Properties Fair value of investment properties increased to HKD 33.022 million, with fair value gains recognized in profit or loss and other comprehensive income, valued by independent professionals using the income approach - Investment Properties Fair Value Comparison | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Fair Value | 33,022 | 28,017 | - Fair value gains of HKD 0.387 million were recognized in profit or loss, and HKD 4.507 million in other comprehensive income during the year[310] - Investment properties are located in Zhongshan City, Guangdong Province, China, currently used as factories and offices, held under medium-term leasehold land[310] - Fair value is determined by independent professional valuers using the income approach, with the key input being the rental value per square meter[311][312] 19. Investment in an Associate Investment in an associate totaled HKD 0.404 million, representing a 25% stake in Hengli Garment Technology Company Limited in Vietnam, with the Group's share of loss at HKD 0.047 million - Investment in an Associate Comparison | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Cost of Investment in an Associate | 776 | 776 | | Share of Post-Acquisition Losses | (372) | (325) | | Total | 404 | 451 | - The Group holds a 25% interest in Hengli Garment Technology Company Limited, an associate located in Vietnam, primarily engaged in garment manufacturing and processing[313] - The Group's share of loss from the associate for the year was HKD 0.047 million (2024: profit of HKD 0.018 million)[314] 20. Particulars of Principal Subsidiaries of the Company The company's principal subsidiaries, including Starwin (Hong Kong) Limited and Zhongshan Tungtex Silk Garment Co., Ltd., are wholly-owned and engage in property investment, garment trading, production, and retail - Principal Subsidiaries Details | Subsidiary Name | Place of Incorporation/Registration and Operation | Percentage of Equity Interest Held by the Company (2025) | Principal Business | | :--- | :--- | :--- | :--- | | Starwin (Hong Kong) Limited | Hong Kong | 100% (Indirect) | Property Investment | | Tungtex International Limited | Hong Kong | 100% (Indirect) | Garment Trading | | Tungtex Trading Limited | Hong Kong | 100% (Direct) | Garment Trading | | Zhongshan Tungtex Silk Garment Co., Ltd. | China | 100% (Indirect) | Garment Production | | Shenzhen Baiduoer Fashion Co., Ltd. | China | 100% (Indirect) | Garment Retail | | Ningbo Yuntu Fashion Co., Ltd. | China | 100% (Indirect) | Garment Retail | | Ningbo Yunshang Fashion Co., Ltd. | China | 100% (Indirect) | Garment Retail | | Tungtex Fashions (Vietnam) Limited | Vietnam | 100% (Indirect) | Garment Production | - Ningbo Yunshang Fashion Co., Ltd. was incorporated during the year, primarily engaged in garment retail[315] 21. Deferred Taxation Deferred tax liabilities amounted to HKD 0.389 million, primarily from accelerated tax depreciation, with unrecognised deferred tax assets for unused tax losses of HKD 405 million due to uncertain future profitability - Deferred Tax Liabilities Comparison | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Deferred Tax Liabilities | (389) | (365) | - The Group has approximately HKD 405 million (2024: HKD 410 million) of unused tax losses available to offset future profits, but no deferred tax assets have been recognized due to the unpredictable trend of future profits[318] - Unrecognized tax losses include those that can be carried forward for one to five years and up to twenty years, with approximately HKD 39 million of losses expiring in the current year[318] - No deferred tax provision has been made for the accumulated profits of PRC subsidiaries, as the Group controls the timing of the reversal of temporary differences[319] 22. Inventories Total inventories amounted to HKD 105.881 million, primarily comprising finished goods of HKD 72.823 million, raw materials of HKD 24.133 million, and work-in-progress of HKD 8.925 million - Inventory Composition Comparison | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Raw Materials | 24,133 | 25,146 | | Work-in-Progress | 8,925 | 9,296 | | Finished Goods | 72,823 | 65,201 | | Total | 105,881 | 99,643 | 23. Trade and Other Receivables Total trade and other receivables were HKD 122 million, with trade and bills receivables at HKD 104.196 million, and credit terms ranging from 14 to 90 days - Trade and Other Receivables Comparison | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade and Bills Receivables (Net of Provision) | 104,196 | 86,379 | | Deposits, Prepayments and Other Receivables | 17,804 | 17,517 | | Total | 122,000 | 103,896 | - The Group grants credit periods to customers ranging from 14 days to 90 days[322] - Aging Analysis of Trade and Bills Receivables (2025) | Aging | HKD thousands | | :--- | :--- | | 0–30 Days | 87,794 | | 31–60 Days | 2,433 | | 61–90 Days | 12,897 | | Over 90 Days | 1,072 | | Total | 104,196 | - As of March 31, 2025, the balance of trade and bills receivables included overdue receivables totaling HKD 10.498 million, of which HKD 0.497 million were overdue for 90 days or more but not considered in default[323] - Foreign Currency Trade and Other Receivables Comparison | Currency | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | HKD | 91 | 77 | | EUR | 14 | 15 | | RMB | – | 5 | | Total | 105 | 97 | 24. Pledged Bank Deposits and Bank Balances and Cash Pledged bank deposits totaled HKD 103.964 million, and bank balances and cash were HKD 136.583 million, with interest rates ranging from 0.1% to 5.25% per annum - Pledged Bank Deposits and Bank Balances and Cash Comparison | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Pledged Bank Deposits | 103,964 | 101,114 | | Bank Balances and Cash | 136,583 | 168,162 | - Market interest rates for bank deposits ranged from 0.1% to 5.15% per annum, and for pledged bank deposits from 1.9% to 5.25% per annum[325] - The Group's credit risk on bank balances is limited, and no credit loss provisions have been made[326] - Foreign Currency Bank Balances and Cash Comparison | Currency | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | HKD | 34,440 | 34,903 | | RMB | 7,154 | 28,447 | | USD | 661 | 1,808 | | GBP | 19 | 19 | | EUR | 10 | 10 | | Total | 42,284 | 65,187 | 25. Trade and Other Payables Total trade and other payables were HKD 86.978 million, including trade and bills payables of HKD 57.487 million, with average credit terms for purchases ranging from 30 to 60 days - Trade and Other Payables Comparison | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade and Bills Payables | 57,487 | 66,440 | | Other Payables, Accruals and Advance Receipts | 29,491 | 41,345 | | Total | 86,978 | 107,785 | - Aging Analysis of Trade and Bills Payables (2025) | Aging | HKD thousands | | :--- | :--- | | 0–30 Days | 34,485 | | 31–60 Days | 5,292 | | 61–90 Days | 4,091 | | Over 90 Days | 13,619 | | Total | 57,487 | - The average credit period for purchases ranges from 30 to 60 days[329] - Foreign Currency Trade and Other Payables Comparison | Currency | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | HKD | 5,141 | 7,068 | | RMB | 13 | – | | Total | 5,154 | 7,068 | 26. Contract Liabilities Contract liabilities significantly increased to HKD 10.905 million, with HKD 4.988 million recognized as revenue during the year, and the remaining balance expected to be recognized within one year - Contract Liabilities Comparison | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Production, Sales and Retail of Garment Products | 10,905 | 5,076 | - Contract liabilities recorded at the beginning of the year, amounting to HKD 4.988 million (2024: HKD 5.34 million), were recognized as revenue during the year[331] - Management expects the remaining balance to be recognized as revenue within approximately one year from March 31, 2025[331] 27. Lease Liabilities Total lease liabilities amounted to HKD 2.156 million, with HKD 1.771 million due within one year, and a weighted average incremental borrowing rate of 4.21% - Lease Liabilities Maturity Profile Comparison | Maturity Period | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Within One Year | 1,771 | 4,661 | | Over One Year but Not Exceeding Two Years | 180 | 1,138 | | Over Two Years but Not Exceeding Five Years | 205 | 385 | | Total | 2,156 | 6,184 | - The weighted average incremental borrowing rate applied to lease liabilities was 4.21% (2024: 4.02%)[332] 28. Bank Borrowings Total bank borrowings were HKD 74.071 million, all secured, floating-rate, and due within one year, with effective interest rates ranging from 2.95% to 7.09% per annum - Bank Borrowings Composition Comparison | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Bank Loans | 22,667 | 20,011 | | Trust Receipt Loans | 16,748 | 13,232 | | Import Trade Loans | 34,656 | 18,149 | | Total | 74,071 | 51,392 | - All bank bo