YGM Trading : ANNOUNCEMENT OF THE INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

YGM TRADING LIMITED

(Incorporated in Hong Kong with limited liability)

(Stock Code : 00375)

ANNOUNCEMENT OF THE INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021

The Board of Directors of YGM Trading Limited ("the Company") hereby announces the unaudited interim results of the Company and its subsidiaries (together referred to as "the Group") for the six months ended 30 September 2021 as follows. The interim results have not been audited, but have been reviewed by the Company's Audit Committee.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS - UNAUDITED (Expressed in Hong Kong dollars)

		Six months ended 30 September
		2021	2020
	Note	$'000	$'000
Revenue	3 & 4	102,974	90,386
Cost of sales and direct costs		(38,823)		(45,955)
Gross profit		64,151	44,431
Other net income		172	15,110
Distribution costs		(49,592)	(42,102)
Administrative expenses		(26,805)	(30,222)
Other operating expenses		(2,354)		(2,422)
Loss from operations		(14,428)	(15,205)
Net gain on disposal of investment properties	9(a)	30	-
Finance costs	5(a)	(1,242)		(1,570)
Loss before taxation	5	(15,640)	(16,775)
Income tax	6	239		(713)
Loss for the period		(15,401)	(17,488)
Attributable to :
Equity shareholders of the Company		(14,720)	(16,568)
Non-controlling interests		(681)		(920)
Loss for the period		(15,401)	(17,488)
Loss per share	8
Basic and diluted		(8.9 cents)		(10.0 cents)

Details of dividends payable to equity shareholders of the Company attributable to the period are set out in note 7.

1

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - UNAUDITED (Expressed in Hong Kong dollars)

	Six months ended 30 September
	2021	2020
	$'000	$'000
Loss for the period	(15,401)	(17,488)
Other comprehensive income for the period
(after tax and reclassification adjustments)
Item that may be reclassified subsequently to profit or loss:
Exchange differences on translation of financial
statements of subsidiaries outside Hong Kong	(2,555)		3,056
Other comprehensive income for the period	(2,555)	3,056
Total comprehensive income for the period	(17,956)	(14,432)
Attributable to :
Equity shareholders of the Company	(17,534)	(13,512)
Non-controlling interests	(422)		(920)
Total comprehensive income for the period	(17,956)	(14,432)

2

CONSOLIDATED STATEMENT OF FINANCIAL POSITION - UNAUDITED (Expressed in Hong Kong dollars)

		30 September		31 March
		2021	2021
	Note	$'000	$'000
Non-current assets		177,565
Investment properties	9	265,024
Other property, plant and equipment		55,760		48,532
		233,325	313,556
Intangible assets		133,442	133,442
Rental deposits		3,886	7,950
Deferred tax assets		274		243
		370,927	455,191
Current assets		17,101
Trading securities		16,475
Inventories		38,998	35,443
Investment properties held for sale	9(b)	32,100	-
Trade and other receivables	10	46,046	40,476
Current tax recoverable		496	654
Cash and cash equivalents		157,118		142,423
		291,859	235,471
Current liabilities		8,029
Bank overdrafts		8,864
Trade and other payables and contract liabilities	11	43,570	37,579
Lease liabilities		35,499	39,766
Dividends payable	7	16,586	-
Current tax payable		797	602
Provisions	12	9,570		9,570
		114,051		96,381
Net current assets		177,808		139,090
Total assets less current liabilities		548,735	594,281
Non-current liabilities		33,673
Lease liabilities		33,990
Deferred tax liabilities		900		1,363
		34,573	35,353
NET ASSETS		514,162		558,928
CAPITAL AND RESERVES		383,909
Share capital		383,909
Reserves		120,857	154,977
Total equity attributable to equity shareholders		504,766
of the Company		538,886
Non-controlling interests		9,396	20,042
TOTAL EQUITY		514,162		558,928

3

Notes:

(Expressed in Hong Kong dollars unless otherwise indicated)

1. Basis of preparation
   This interim financial results have been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("Stock Exchange"), including compliance with Hong Kong Accounting Standard ("HKAS") 34, Interim financial reporting, issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"). It was authorised for issue on 29 November 2021.
   The interim financial results have been prepared in accordance with the same accounting policies adopted in the annual financial statements of the Group for the year ended 31 March 2021, except for the accounting policy changes that are expected to be reflected in the annual financial statements of the Group for the year ending 31 March 2022. Details of these changes in accounting policies are set out in note 2.
   The preparation of this interim financial results in conformity with HKAS 34 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses on a year to date basis. Actual results may differ from these estimates.
   This interim financial results contain consolidated statement of financial position as at 30 September 2021 and the related consolidated statement of profit or loss and consolidated statement of profit or loss and other comprehensive income for the six months period then ended and selected explanatory notes. The notes include an explanation of events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the annual financial statements of the Group for the year ended 31 March 2021. This interim financial results do not include all of the information required for a full set of financial statements prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs").
   The interim financial results are unaudited, but have been reviewed by the Company's audit committee.
   The financial information relating to the financial year ended 31 March 2021 that is included in the interim financial results as comparative information does not constitute the Company's statutory annual consolidated financial statements for that financial year but is derived from those financial statements. Further information relating to these statutory financial statements disclosed in accordance with section 436 of the Hong Kong Companies Ordinance (Cap.622) (the "Companies Ordinance") is as follows:
   The Company has delivered the financial statements for the year ended 31 March 2021 to the Registrar of Companies as required by section 662(3) of, and Part 3 of Schedule 6 to, the Companies Ordinance.
   The Company's auditor has reported on these financial statements for the year ended 31 March 2021. The auditor's report was unqualified; did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying its report; and did not contain a statement under section 406(2), 407(2) or (3) of the Companies Ordinance.
2. Changes in accounting policies
   The HKICPA has issued a number of amendments to HKFRSs that are first effective for the current accounting period of the Group. None of these developments has had a material effect on how the Group's results and financial position for the current or prior periods have been prepared or presented in this interim financial report.
   The Group has not applied any new standard or interpretation issued by HKICPA that is not yet effective for the current accounting period.

4

3. Segment reporting

The Group manages its businesses by divisions, which are organised by business lines. In a manner consistent with the way in which information is reported internally to the Group's most senior executive management for the purposes of resource allocation and performance assessment, the Group has presented the following four reportable segments. No operating segments have been aggregated to form the following reportable segments:

• Sales of garments: the wholesale and retail of garments.
• Licensing of trademarks: the management and licensing of trademarks for royalty income.
• Printing and related services: the provision of security printing and sale of printed products.
• Property rental: the leasing of properties to generate rental income.

(a) Information about profit or loss, assets and liabilities

Information regarding the Group's reportable segments as provided to the Group's most senior executive management for the purposes of resource allocation and assessment of segment performance for the period is set out below:

					Licensing		Printing and
	Sales of garments		of trademarks		related services		Property rental		Total
For the six months ended	2021	2020	2021	2020	2021	2020	2021	2020	2021			2020
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000			$'000
Revenue from external customers	74,862	63,724	8,808	7,669	16,455	15,554	2,849	3,439	102,974			90,386
Inter-segment revenue	-		-		2,127		2,100		80		62		1,212		1,212		3,419			3,374
Reportable segment revenue	74,862	63,724	10,935	9,769	16,535	15,616	4,061	4,651	106,393			93,760
Reportable segment (loss)/profit
(adjusted EBITDA)	(3,108)	(4,872)	2,526	626	3,416	4,537	2,712	320	5,546			611
As at 30 September / 31 March
Reportable segment assets	489,118	462,114	138,726	147,764	15,281	22,604	223,098	251,815	866,223			884,297
Reportable segment liabilities	457,549	448,649	11,326	19,726	5,556	7,166	19,295	14,653	493,726			490,194

The measure used for reporting segment profit or loss is "adjusted EBITDA", i.e. "adjusted earnings before interest, taxes, depreciation and impairment loss on non-current assets", where "interest" is regarded as including investment income. To arrive at adjusted EBITDA, the Group's earnings/losses are further adjusted for items not specifically attributed to individual segments, such as other head office or corporate administration costs.

(b) Reconciliations of reportable segment profit or loss

	Six months ended 30 September
	2021	2020
	$'000	$'000
Reportable segment profit	5,546	611
Elimination of inter-segment profits	(1,912)	(1,400)
Reportable segment profit/(loss) derived from
the Group's external customers	3,634	(789)
Other net income/(loss)	94	(292)
Depreciation	(17,060)	(17,146)
Net gain on disposal of investment properties	30	-
Finance costs	(1,242)	(1,570)
Unallocated head office and corporate (expenses)/income	(1,096)		3,022
Consolidated loss before taxation	(15,640)	(16,775)

5