Page 1

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 . GIORDANO GIORDANO INTERNATIONAL LIMITED ( Incorporated in Bermuda with limited liability ) ( Stock Code : 709 ) ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED JUNE 30 , 2021 OVERVIEW Group sales for the first half of 2021 were HK $ 1,681 million ( 2020 : HK $ 1,413 million ) , representing an increase of 19.0 % and due primarily to improved sales on the back of last year's low base . Gross margin grew by 2.4 percentage points to 57.0 % ( 2020 : 54.6 % ) , attributable to fewer discounts . Operating expense recorded a further decrease of 2.9 % , and was 54.1 % of sales ( 2020 : 66.3 % ) . Profit after income taxes attributable to the Company's shareholders was HK $ 60 million ( 2020 : net loss of HK $ 175 million ) . If excluding the net impairment provision for the right- of - use assets and property , plant and equipment , the net profit for the period would be HK $ 62 million ( 2020 : net loss of HK $ 104 million ) . On June 30 , 2021 , the cash and bank balances , net of bank loans , was HK $ 932 million ( June 30 , 2020 : HK $ 989 million ) . Inventory turnover on cost decreased by 14 days to 124 days with increased sales and stable merchandise inventory balances . The merchandise inventory mainly comprises evergreen and in - season items . Basic earnings per share were 3.8 HK cents ( 2020 : basic loss per share of 11.1 HK cents ) . The Board of Directors has declared an interim dividend of 6.5 HK cents per share ( 2020 : 3.1 HK cents per share ) for the six months ended June 30 , 2021 . 1