YGM Trading : ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 MARCH 2022

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 RESULTS

FOR THE YEAR ENDED 31 MARCH 2022

The Board of Directors (the "Board") of YGM Trading Limited (the "Company") hereby announces the consolidated results of the Company and its subsidiaries (collectively the "Group") for the year ended 31 March

2022 together with comparative figures for the corresponding year and selected explanatory notes as follows:

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

	Note	2022			2021
			$'000			$'000
Revenue	3, 4		211,489			216,181
Cost of sales and direct costs			(77,021)			(80,003)
Gross profit			134,468			136,178
Other net gain			7,317			26,462
Distribution costs			(106,656)			(100,290)
Administrative and other operating expenses			(50,518)			(69,310)
Loss from operations			(15,389)			(6,960)
Net valuation gains on investment properties			6,405			3,178
Net gain on disposal of investment properties			13,336			-
Finance costs	5(a)	(2,379)			(3,182)
Profit/(loss) before taxation	5		1,973			(6,964)
Income tax credit/(expenses)	6		167			(4,718)
Profit/(loss) for the year			2,140			(11,682)
Attributable to:
Equity shareholders of the Company			3,284			(11,740)
Non-controlling interests			(1,144)			58
Profit/(loss) for the year			2,140			(11,682)
Earnings/(loss) per share	8
Basic and diluted	$	0.02	$	(0.07)

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

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

		2022	2021
		$'000	$'000
Profit/(loss) for the year	2,140	(11,682)
Other comprehensive income for the year
(after tax and reclassification adjustment of $Nil)
Item that may be reclassified subsequently to profit or loss:
Exchange differences on translation of financial
statements of subsidiaries outside Hong Kong		(5,884)			12,813
Other comprehensive income for the year			(5,884)	12,813
Total comprehensive income for the year	(3,744)	1,131
Attributable to:
Equity shareholders of the Company	(2,835)	791
Non-controlling interests		(909)		340
Total comprehensive income for the year	(3,744)	1,131

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

	Note	2022	2021
		$'000	$'000
Non-current assets
Investment properties		186,806	265,024
Other property, plant and equipment		53,042		48,532
		239,848	313,556
Intangible assets		133,442	133,442
Rental deposits		4,415	7,950
Deferred tax assets		281		243
		377,986	455,191
Current assets
Trading securities		17,119		16,475
Inventories		38,917		35,443
Trade and other receivables	9	41,801		40,476
Current tax recoverable		317		654
Cash and cash equivalents		132,788		142,423
		230,942		235,471
Current liabilities
Bank overdrafts		7,049		8,864
Trade and other payables and contract liabilities	10	36,904		37,579
Lease liabilities		26,657		39,766
Current tax payable		319		602
Provisions	11	-		9,570
		70,929		96,381
Net current assets		160,013		139,090
Total assets less current liabilities		537,999	594,281
Non-current liabilities
Lease liabilities		29,325		33,990
Deferred tax liabilities		1,004		1,363
		30,329		35,353
NET ASSETS		507,670	558,928
CAPITAL AND RESERVES
Share capital		383,909	383,909
Reserves		115,089		154,977
Total equity attributable to equity shareholders of the Company	498,998	538,886
Non-controlling interests		8,672		20,042
TOTAL EQUITY		507,670	558,928

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NOTES:

(Expressed in Hong Kong dollars unless otherwise indicated)

1. Basis of preparation of the financial statements
   The financial information relating to the years ended 31 March 2022 and 2021 included in this preliminary announcement of annual results does not constitute the Company's statutory annual consolidated financial statements for these years but is extracted from those financial statements. Further information relating to these statutory financial statements required to be disclosed in accordance with section 436 of the Hong Kong Companies Ordinance is as follows:
   The financial statements for the year ended 31 March 2022 have yet to be reported on by the Company's auditor and will be delivered to the Registrar of Companies in due course.
   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 Hong Kong Companies Ordinance.
   The Company's auditor has reported on the statutory financial statements of the Company 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 sections 406(2), 407(2) or (3) of the Hong Kong Companies Ordinance.
   The Company's statutory annual financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ("HKFRSs"), which collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards ("HKASs") and Interpretations issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"), accounting principles generally accepted in Hong Kong and the requirements of the Hong Kong Companies Ordinance. These financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").
   The measurement basis used in the preparation of the statutory annual financial statements is the historical cost basis except that investment properties and trading securities are stated at their fair values.
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 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.
3. Revenue
   The principal activities of the Group are garment wholesaling and retailing, trademark ownership and licensing, property investment and provision of security printing, general business printing and trading of printing products.
4. 1. Disaggregation of revenue
      Disaggregation of revenue from contracts with customers by significant category of revenue is as follows:

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	2022	2021
	$'000	$'000
Revenue from contracts with customers
within the scope of HKFRS 15
Sales of garments	158,844	160,402
Royalty and related income	18,518	17,820
Income from printing and related services	28,689		30,403
	206,051	208,625
Revenue from other sources
Gross rentals from investment properties - lease payments that are
fixed or depend on an index or a rate	5,438		7,556
	211,489	216,181

The Group's customer base is diversified and no individual customer with whom transactions have exceeded 10% of the Group's revenue for the years ended 31 March 2022 and 2021.

1. Revenue expected to be recognised in the future arising from contracts with customers in existence at the reporting date

The Group has applied the practical expedient in paragraph 121 of HKFRS 15 and therefore the information about the remaining performance obligation is not disclosed for contracts that have an original expected duration of one year or less and also for those performance obligations which are regarded as satisfied as invoiced.

4. Segment reporting

1. Segment results, assets and liabilities
   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 resources 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.
2. • Sales of garments: wholesaling and retailing of garments
   • Licensing of trademarks: management and licensing of trademarks for royalty income
   • Printing and related services: provision of security printing and sale of printed products
   • Property rental: leasing of properties to generate rental income

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 years ended 31 March 2022 and 2021 is set out below:

					Licensing		Printing and
	Sales of garments		of trademarks		related services		Property rental		Total
	2022	2021	2022	2021	2022	2021	2022	2021	2022			2021
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000			$'000
Revenue from external customers	158,844	160,402	18,518	17,820	28,689	30,403	5,438	7,556	211,489			216,181
Inter-segment revenue	-		-		2,100		4,331		136		188		2,433		2,433		4,669			6,952
Reportable segment revenue	158,844		160,402		20,618		22,151		28,825		30,591		7,871		9,989	216,158			223,133
Reportable segment (loss)/profit
(adjusted EBITDA)	(4,422)	22,071	6,282	1,338	3,325	8,431	390	8,627	5,575			40,467
Reportable segment assets	498,612	447,093	140,228	141,126	14,190	14,197	199,729	278,327	852,759			880,743
Reportable segment liabilities	455,622	427,319	11,522	15,065	4,336	5,939	16,223	15,037	487,703			463,360

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