Bossini International : Second Results Announcement

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.

BOSSINI INTERNATIONAL HOLDINGS LIMITED

堡 獅 龍 國 際 集 團 有 限 公 司 *

(Incorporated in Bermuda with limited liability)

(Stock Code: 592)

ANNOUNCEMENT OF SECOND INTERIM RESULTS FOR THE TWELVE MONTHS ENDED 30 JUNE 2021

FINANCIAL RESULTS

The board of directors (the "Board") of Bossini International Holdings Limited (the "Company") announces the unaudited condensed consolidated second interim results of the Company and its subsidiaries (the "Group" or "Bossini") for the twelve months ended 30 June 2021, together with the audited comparative figures for the twelve months ended 30 June 2020, as follows:

Condensed consolidated statement of profit or loss and other comprehensive income

		Twelve months ended
		30 June
		2021			2020
		(Unaudited)	(Audited)
	Notes	HK$'000	HK$'000
Continuing operations		847,962
Revenue	4			1,091,631
Cost of sales		(416,473)		(557,514)
Gross profit		431,489			534,117
Other income	4	38,368			32,033
Selling and distribution expenses		(371,981)		(521,270)
Administrative expenses		(179,069)		(204,908)
Other operating expenses, net		(61,741)		(159,103)
Loss from operating activities		(142,934)		(319,131)
Finance costs	5	(10,763)		(16,182)
Loss before tax from continuing operations	6	(153,697)		(335,313)
Income tax expense	7	(1,046)		(12,183)
Loss for the period from continuing
operations		(154,743)		(347,496)
Discontinued operation
Loss for the period from a discontinued		(403)
operation	8		(20,239)
Loss for the period attributable to
owners of the Company		(155,146)		(367,735)

• For identification purposes only

1

Condensed consolidated statement of profit or loss and other comprehensive income (continued)

		Twelve months ended
		30 June
		2021		2020
		(Unaudited)	(Audited)
	Note	HK$'000	HK$'000
Other comprehensive income/(loss)
Items that may be reclassified to profit or loss in
subsequent periods:
Change in fair value of a financial asset		-	1,367
Reclassification adjustment for a foreign
operation deregistered during the period		-	932
Exchange differences on translation of foreign
operations		12,677		(13,151)
Net other comprehensive income/(loss)		12,677		(10,852)
Total comprehensive loss for the period
attributable to owners of the Company		(142,469)	(378,587)
Loss per share attributable to ordinary equity
holders of the Company	10			(restated)
Basic
- For loss for the period		(HK8.35 cents)	(HK21.83 cents)
- For loss from continuing operations		(HK8.33 cents)	(HK20.63 cents)
Diluted
- For loss for the period		(HK8.35 cents)	(HK21.83 cents)
- For loss from continuing operations		(HK8.33 cents)	(HK20.63 cents)

2

Condensed consolidated statement of financial position

		At 30 June		At 30 June
		2021	2020
		(Unaudited)		(Audited)
	Notes	HK$'000		HK$'000
Non-current assets		17,995
Property, plant and equipment		25,520
Investment property		15,008	16,776
Right-of-use assets		96,806	164,732
Trademark		-	1,164
Deferred tax assets		386	386
Deposits		29,093	35,766
Total non-current assets		159,288	244,344
Current assets
	154,717
Inventories		209,679
Debtors	11	19,052	48,441
Tax recoverable		-	4,484
Prepayments, deposits and other receivables		73,058	90,141
Financial assets at fair value through profit or loss		254	593
Pledged bank deposits		1,903	56
Cash and cash equivalents		370,866	176,339
Total current assets		619,850	529,733
Current liabilities
	126,450
Trade creditors, other payables and accruals	12	118,686
Contract liabilities		3,096	3,584
Bills payable		25,258	12,277
Tax payable		1,774	7,739
Due to a fellow subsidiary		405		-
Due to related companies		-	71
Lease liabilities		95,759	154,068
Financial liabilities at fair value through profit or loss		-	7
Interest-bearing bank borrowings		-	59,721
Total current liabilities		252,742	356,153
Net current assets		367,108	173,580
Total assets less current liabilities		526,396	417,924
Non-current liabilities
	1,254
Deferred tax liabilities		773
Lease liabilities		82,341	133,016
Other payables		3,159	2,675
Total non-current liabilities		86,754	136,464
Net assets		439,642	281,460
Equity
	246,575
Issued capital	13	164,134
Reserves		193,067	117,326
Total equity		439,642	281,460

3

Notes to the condensed consolidated interim financial statements

1. Basis of preparation and accounting policies

These condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange").

The basis of preparation and accounting policies adopted in the preparation of the interim financial statements are consistent with those used in the annual financial statements for the year ended 30 June 2020, except in relation to the following revised Hong Kong Financial Reporting Standards ("HKFRSs") (which also include HKASs and Interpretations) that affect the Group and are adopted for the first time for the current period's financial statements:

HKAS 1 and HKAS 8	Amendments to HKAS 1 and HKAS 8 - Definition of Material
Amendments
HKAS 39, HKFRS 7 and	Amendments to HKAS 39, HKFRS 7 and HKFRS 9 - Interest
HKFRS 9 Amendments	Rate Benchmark Reform
HKFRS 3 Amendments	Amendments to HKFRS 3 - Definition of a Business
Conceptual Framework for	Revised Conceptual Framework for Financial Reporting
Financial Reporting 2018

The adoption of the above revised standards has had no significant financial effect on the interim financial information.

The Group has not early applied any new and revised HKFRSs that have been issued but are not yet effective in the unaudited condensed consolidated second interim financial statements. However, the Group is in the process of making an assessment of the impact of the new and revised HKFRSs upon initial application, but is not yet in a position to state whether these new and revised HKFRSs would have a significant impact on the Group's results of operations and financial position.

2. Change of financial year end date

On 25 February 2021, the Company has resolved to change the financial year end date of the Company from 30 June to 31 December. The forthcoming financial year end date of the Company will be 31 December 2021 and the next audited consolidated financial statements of the Company will cover a period of 18 months from 1 July 2020 to 31 December 2021. Accordingly, the condensed consolidated second interim financial statements of the Company covers the twelve months ended 30 June 2021 with comparative figures cover the twelve months ended 30 June 2020.

4

3. Operating segment information

For management purposes, the Group is organised into business units that offer products to customers located in different geographical areas and has three reportable operating segments as follows:

1. Hong Kong and Macau
2. Mainland China
3. Singapore

The Group has discontinued the business in Taiwan segment. Accordingly, certain segment information related to the Taiwan segment is classified as "loss for the period from a discontinued operation" in the condensed consolidated statement of profit or loss and other comprehensive income.

Management monitors the results of the Group's operating segments separately for the purpose of making decisions about resources allocation and performance assessment. Segment performance is evaluated based on reportable segment profit/loss, which is a measure of adjusted loss before tax from continuing operations. The adjusted loss before tax from continuing operations is measured consistently with the Group's loss before tax from continuing operations except that interest income and non-lease-related finance costs are excluded from such measurement.

Segment assets exclude deferred tax assets and tax recoverable as these assets are managed on a group basis.

Segment liabilities exclude deferred tax liabilities, tax payable and interest-bearing bank borrowings as these liabilities are managed on a group basis.

Intersegment sales and transfers are transacted with reference to the selling prices used for sales made to third parties at the then prevailing market prices.

5