截至二零零六年三月三十一日止.pdfVIP

hairman’s Statement ! C !#$ Business Review Prospects ! Business Review As at 31st March, 2006, the Group recorded a turnover of HK$581,315,000 581,315,000 (2005: HK$509,208,000), representing an increase of 14.2% compared with the 509,208,000 corresponding period last year. The year’s gross profit margin decreased by 6.2% 14.2% from last year, mainly due to the dilution of gross profit margin by the cosmetics 6.2% business. Profit for the year was HK$49,490,000 (2005 restated: HK$73,672,000), representing a decrease of 32.8% compared with the corresponding period last 49,490,000 year. The decrease in results for the year was mainly attributable to the increasing 73,672,000 rental and labour costs. 32.8% ! Fashion Business As at 31st March, 2006, the turnover from fashion business amounted to 497,665,000 HK$497,665,000, which was about the same as last year, accounting for 85.6% 85.6% of the Group’s total turnover. The fashion business remained the key contributor to the Group’s turnover and profit. As for the segment result, the segment result of the fashion business amounted to HK$52,798,000, representing a decrease of 52,798,000 39.8% from HK$87,756,000 last year. 87,756,00039.8% !#$%() Fashion Business – Hong Kong and Macau Markets As at 31st March, 2006, the Group had altogether 63 outlets in Hong Kong and 63 Macau (2005: 61 outlets). During the period under review, the local economic 61 continued to improve and the unemployment rate declined. Nevertheless, such a prosperous market atmosphere resulted in a keener competition, and the over- optimistic expectation of the economic benefit from the opening of Hong Kong Disneyland