Group turnover amounted to HK$12,810 million (1H FY12/13: HK$13,554 million), representing a decline of 5.5% year-on-year (9.3% in local currency), which was in line with a reduction in retail and wholesale space.

Gross profit margin decreased by 1.4 percentage points year-on-year to 49.6%, mainly due to the Group’s continued investments in improving the value of our products for our customers through enhanced product quality and pricing initiatives.

Operating expenses (“OPEX”) amounted to HK$6,094 million (1H FY12/13: HK$7,175 million) representing a significant reduction of HK$1,081 million or 15.1% year-on-year (18.2% in local currency), bringing OPEX-to-sales ratio to 47.6% (1H FY12/13: 52.9%).

As a result of our cost reduction intiatives, the Group’s profitability improved with a positive EBIT of HK$254 million, compared to an EBIT loss of HK$265 million a year ago.

Net cash increased by HK$530 million to HK$5,181 million (30 June 2013: HK$4,651 million), the highest level over the last three years, primarily driven by HK$920 million cash inflow from operations (1H FY12/13: cash outflow) as well as selective investment in capital expenditure.

The Group’s Board of Directors has declared an interim dividend for the six months ended 31 December 2013 of HK$0.03 per share (1H FY12/13: Nil). This represents an interim dividend payment ratio of 60% of basic earnings per share.