I T : ANNOUNCEMENT OF FINAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2019

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.

I.T LIMITED

(Incorporated in Bermuda with limited liability)

(Stock Code: 999)

ANNOUNCEMENT OF FINAL RESULTS

FOR THE YEAR ENDED 28 FEBRUARY 2019

FINANCIAL HIGHLIGHTS

• Total turnover of the Group increased by 5.4% to HK$8,832.2 million.
• Total retail sales in Hong Kong and Macau increased by 2.5% to HK$3,363.6 million. Comparable store sales growth rate registered at 2.4% (FY17/18: -0.9%). Total trading area is reduced by 3.0%.
• Total retail sales in Mainland China increased by 6.4% to HK$4,082.7 million on the back of growth in trading area of 8.3% and positive comparable store sales growth rate at 1.7% (FY17/18: 0.2%).
• Total retail sales in Japan and the USA landed at HK$1,054.5 million, representing 11.5% increase from FY17/18.
• Gross profit of the Group increased by 5.9% to HK$5,639.7 million at gross profit margin of 63.9% (FY17/18: 63.5%).
• Net profit of the Group increased by 2.8% to HK$444.1 million.
• Basic earnings per share increased by 2.8% to 37.0 HK cents.
• Proposed final dividend of 18.0 HK cents (FY17/18: 17.8 HK cents) per ordinary
  share amounting to HK$215.2 million (FY17/18: HK$212.9 million).

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The board of directors (the "Board") of I.T Limited (the "Company") is pleased to announce the audited consolidated results of the Company and its subsidiaries (collectively referred to as the "Group") for the year ended 28 February 2019, prepared on the basis set out in Note 2, together with the comparative figures for the year ended

28 February 2018, as follows:

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 28 February 2019

		2019		2018
	Note	HK$'000	HK$'000
Turnover	4	8,832,157	8,383,043
Cost of sales	6	(3,192,446)	(3,059,224)
Gross profit		5,639,711		5,323,819
Other (losses)/gains, net	5	(13,532)	13,604
Operating expenses	6	(4,927,676)	(4,610,139)
Other income	7	55,111	30,473
Operating profit		753,614		757,757
Finance income	8	24,946	22,457
Finance costs	8	(42,922)	(71,352)
Share of (losses)/gains of joint ventures		(27,846)	13,996
Profit before income tax		707,792		722,858
Income tax expense	9	(263,647)	(290,932)
Profit for the year		444,145		431,926
Other comprehensive (loss)/income:
Items that may be reclassified to profit or loss
Currency translation differences		(115,727)	188,329
Cash flow hedge recognised as finance costs		(33,047)	(88,733)
Fair value changes on cash flow hedge,
net of tax		18,209	129,264
Total other comprehensive (loss)/income
for the year		(130,565)	228,860
Total comprehensive income for the year		313,580		660,786

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		2019		2018
	Note	HK$'000	HK$'000
Profit attributable to:
- Equity holders of the Company		442,599	430,556
- Non-controlling interests		1,546	1,370
		444,145		431,926
Total comprehensive income attributable to:
- Equity holders of the Company		312,427		658,932
- Non-controlling interests		1,153	1,854
		313,580		660,786
Earnings per share attributable to equity
holders of the Company for the year
(expressed in HK cent per share)
- basic	10	37.0		36.0
- diluted	10	35.7		34.9
Dividends	11	215,243		212,852

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 28 February 2019

		28 February	28 February
		2019		2018
	Note	HK$'000	HK$'000
ASSETS
Non-current assets		38,631
Land use rights		-
Property, furniture and equipment		954,964	859,433
Intangible assets		321,948	331,952
Investments in and loans to joint ventures		167,879	159,050
Rental deposits		346,422	313,012
Prepayments for non-current assets		52,672	59,558
Deferred income tax assets		110,327	117,233
		1,992,843		1,840,238
Current assets		1,538,037
Inventories			1,404,759
Trade and other receivables	12	300,171		331,426
Amounts due from joint ventures		132,311	65,080
Prepayments and other deposits		379,256	380,071
Current income tax recoverable		1,989	1,930
Cash and cash equivalents		1,771,957	2,315,333
		4,123,721		4,498,599
LIABILITIES
Current liabilities		(505,995)
Borrowings	13	(1,254,016)
Trade payables	14	(414,120)	(470,964)
Accruals and other payables		(680,339)	(724,891)
Contract liabilities		(21,922)	-
Derivative financial instruments	15	(11,003)	(29,212)
Amounts due to joint ventures		(24,165)	(19,009)
Current income tax liabilities		(78,327)	(108,984)
		(1,735,871)	(2,607,076)
Net current assets		2,387,850		1,891,523
Non-current liabilities
	(653,981)
Borrowings	13	(123,355)
Accruals		(6,125)	(7,169)
Derivative financial instruments	15	(1,773)	(4,749)
Deferred income tax liabilities		(67,294)	(47,826)
		(729,173)	(183,099)
Net assets		3,651,520		3,548,662
EQUITY
Capital and reserves		119,580
Share capital			119,580
Reserves		3,528,701	3,425,755
Non-controlling interests		3,239	3,327
Total equity		3,651,520		3,548,662

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NOTES

1. GENERAL INFORMATION
   The Company is an investment holding company and its subsidiaries (together with the Company are collectively referred to as the "Group") are principally engaged in the sales of fashion wears and accessories.
   The Company was incorporated in Bermuda on 18 October 2004 as an exempted company with limited liability under the Companies Act 1981 of Bermuda. The address of its registered office is Clarendon House, 2 Church Street, Hamilton HM11, Bermuda.
   The Company has its listing on The Stock Exchange of Hong Kong Limited (the "Stock Exchange").
   These consolidated financial statements are presented in Hong Kong Dollar ("HK$"), unless otherwise stated.
2. BASIS OF PREPARATION
   The consolidated financial statements of the Company have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ("HKFRS") issued by Hong Kong Institute of Certified Public Accountants ("HKICPA") and disclosure requirements of the Hong Kong Companies Ordinance (Cap. 622). The consolidated financial statements have been prepared under the historical cost convention, as modified by financial liabilities at fair value through profit or loss (including derivative instruments), which are carried at fair value.
3. 1. New and amended standards adopted by the Group
      The Group has applied the following standards and amendments which are effective for the Group's financial year beginning 1 March 2018 but did not result in any significant impact on the results and financial position of the Group:

Annual Improvements Projects	Annual improvements to HKFRSs 2014-2016 cycle
HKFRS 1 and HKAS 28
(Amendments)
HKFRS 2 (Amendments)	Classification and Measurement of Share-based
	Payment Transactions
HKFRS 4 (Amendments)	Applying HKFRS 9 Financial Instruments with
	HKFRS 4 Insurance Contracts
HKFRS 9	Financial Instruments
HKFRS 15	Revenue from Contracts with Customers
HKFRS 15 (Amendments)	Clarifications to HKFRS 15
HKAS 28 (Amendments)	Investments in Associates and Joint Ventures
HKAS 40	Transfers to Investment Property
HK(IFRIC) - Int 22	Foreign Currency Transactions and Advance
	Consideration

The Group had to change its accounting policies following the adoption of HKFRS 9 and HKFRS 15 as disclosed in Note 3. Most of the other amendments to standards and interpretation listed above are not expected to significantly affect the current or future periods.

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