Sustainability and Governance Report

G Group Executive Chairman s STATEMENT The Group's assets classified as held for sale as at 31 March 2019 relates to the sales and purchase agreement entered by a subsidiary in Malaysia for the disposal of leasehold land and building as announced on 1 February 2019 and the transaction was completed in June 2019. The Group's trade and other payables decreased from $4.27 million to $2.32 million mainly due to decrease in purchases for Taiwan operation toward the financial year end. The Group's bills payable increased by $0.16 million from $3.21 million to $3.37 million mainly due to purchases for the new season stock in December 2019. The Group's bank borrowings decreased by $1.65 million from $4.02 million to $2.37 million mainly due to the settlement of the term loan upon the disposal of the asset classified as held for sale. The Group's lease liabilities arose from the adoption of SFRS(I) 16 and the new lease agreements entered during the financial year for the Taiwan subsidiary. Cash flow Review Net cash from operating activities increased due to repayment of the trade payables for Taiwan operation toward the financial year end. Net cash from investing activities increased mainly due to dividend received from Harvey Norman Ossia (Asia) Pte Ltd and the proceed received from the disposal of the asset classified as held for sale during the financial year. Net cash used in financing activities increased mainly due to repayment for bank borrowings, lease liabilities and the dividend paid during the financial year. Moving Forward The COVID-19 pandemic has and will continue to exert a major impact on the Group's retail operations and prospects for the next financial year. Pandemic induced economic disruptions have resulted in more cautious consumer spending. The Group has undertaken a careful review of its operations in order to align operating costs and strategies with market expectations in the new normal. Acknowledgement I would like to express my heartfelt thanks to our shareholders, customers, bankers and business associates for their invaluable support, and my warm appreciation to our Directors, management team and all employees for their commitment and dedication throughout the year. Goh Ching Wah, George Group Executive Chairman

View entire presentation