Financial Performance - Gross profit for the year was HK$ 180 million, reflecting a gross profit margin of 30%[12][14] - Revenue increased by 15% year-over-year, driven by strong demand in key markets[11] - The company reported a net profit of HK$ 50 million, up from HK$ 40 million in the previous year[11] - Revenue for the year ended 31 March 2022 was approximately HK$135.5 million, representing a decrease of approximately 16.7% compared to the previous year[17] - Gross profit was approximately HK$2.4 million, with a gross profit margin of approximately 1.8%, down from 4.3% in the previous year[18][20] - Loss attributable to owners of the Company was approximately HK$78.2 million, compared to a loss of approximately HK$75.0 million in the previous year[18][20] - Revenue from sales in the Americas market decreased significantly by approximately 59.9% to approximately HK$32.0 million[28][31] - Revenue generated from sales in the Hong Kong market increased substantially by approximately 534.8% to approximately HK$101.0 million[33] - Revenue from sales to European markets recorded a significant decrease of approximately 96.0% to approximately HK$1.9 million[34] - Basic loss per share amounted to approximately HK$0.45, compared to HK$0.43 in the previous year[19][20] Market Strategy and Expansion - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by 2025[11] - New product launches are expected to contribute an additional HK$ 50 million in revenue next fiscal year[11] - The company is exploring potential acquisitions to enhance its product portfolio and market reach[11] - The management has adjusted its strategy to focus on gold products and luxury watches in the Hong Kong market[33] - The Group plans to allocate more resources to participate in the high-end jewellery market and target high-net-worth customers[41] - The Group is actively investing in new technological applications to enrich business drivers[43] - The Group aims to solidify operations in Hong Kong and leverage the easing of travel restrictions with Mainland China to connect with new business partners[40] - The Group is exploring e-commerce opportunities, including livestream sales, to enhance competitiveness and reach younger consumers[95] Governance and Leadership - Dr. So Shu Fai appointed as chairman and executive director, bringing extensive experience in management and governance[45] - Mr. Chan Wai Dune has over 40 years of experience in finance, particularly in auditing and taxation, and serves as a non-executive director since November 2021[49] - The company is focused on expanding its market presence and enhancing its governance structure through experienced leadership[45] - The board believes Mr. Chan's professional knowledge and experience make him a suitable non-executive director despite past reprimands[53] - The company is committed to maintaining high professional standards in financial reporting and governance practices[53] - The management team includes individuals with significant experience in both local and international markets, enhancing strategic decision-making[49] - The company aims to leverage its leadership's expertise to drive future growth and operational efficiency[45] - The board is actively involved in overseeing the company's strategic direction and compliance with regulatory standards[49] - The company emphasizes the importance of governance and accountability in its operations and decision-making processes[53] - The leadership team is focused on fostering a culture of integrity and transparency within the organization[53] Challenges and Risks - The business environment faced challenges due to tightening U.S. monetary policy, ongoing Sino-U.S. trade conflicts, and the impact of COVID-19 variants[27][29] - The ongoing geopolitical tensions and economic sanctions have significantly impacted investment sentiment and risk appetite[37] - The Group recognizes risks associated with supply chain disruptions due to the COVID-19 pandemic and the Sino-U.S. trade war[36] - The management is cautiously evaluating the future development of overseas markets due to significant challenges in the recovery process[36] - The tightening of U.S. monetary policy and the escalated trade conflict between Mainland China and the U.S. posed considerable risks and challenges to the business environment[82] - The adjustment of U.S. monetary policy has calmed market sentiment, leading to a slowdown in demand for luxury consumption[82] - The ongoing Sino-U.S. trade war is unfavorable to the export business in Hong Kong[82] - The company faced significant challenges due to the global economic situation remaining difficult during the reporting period[82] Financial Management - The Group's current ratio as of March 31, 2022, was approximately 15.1, significantly higher than 5.0 in 2021, indicating improved liquidity management[122] - The Group closely monitors its liquidity position to ensure it meets funding requirements effectively[123] - The Group does not engage in any derivatives activities, maintaining a conservative financial management approach[129] - The Group's investment strategy remains unchanged despite short-term market volatilities, with a focus on attractive Hong Kong listed equity securities for long-term returns[144] - The Group reported a fair value loss of approximately HK$62.8 million on financial assets at fair value through profit or loss for the year ended March 31, 2022[122] - The financial statements prepared by the Board provide a true and fair view of the Group's financial position and performance[197] Joint Ventures and Collaborations - The Company entered into a Joint Venture Agreement with San J Jewellery Limited to form Perfect King International Limited, with a registered capital of HK$5,000,000[166] - The Company contributed HK$2,550,000, representing 51% of the shareholding in the Joint Venture, while San J Jewellery contributed HK$2,450,000 for 49%[166] - The Joint Venture aims to enhance the development of online sales channels for the Company[171] - The Company has established a Joint Venture to expand direct sales to customers in Mainland China, aiming to penetrate the online jewellery market[27] - The Joint Venture was classified as a non-wholly owned subsidiary during the reporting period due to unmet conditions in the JV Agreement[27] - On 31 March 2022, the Company acquired the remaining 49% shares of the Joint Venture, making it a wholly owned subsidiary[171] Corporate Governance - The Company has complied with the old Corporate Governance Code during the year ended March 31, 2022, with some exceptions noted regarding attendance at the annual general meeting[178] - The Board consists of six Directors, including two executive Directors, one non-executive Director, and three independent non-executive Directors as of 31 March 2022[179] - The Company has adopted the Model Code for Securities Transactions by Directors, confirming compliance by all Directors during the year ended March 31, 2022[179] - The Directors believe that good corporate governance is essential for balancing the interests of shareholders, customers, and employees[178] - The changes in the Board are expected to positively impact the company's future performance and strategic direction[186] - The Board has delegated certain responsibilities to various Board committees to manage different aspects of the Company's affairs[195] - The Company has no corporate governance committee, thus the Board oversees compliance with legal and regulatory requirements[198] - The independent non-executive Directors are expected to effectively devote their time to the duties required by the respective Board committees[195]

Revenue and Profitability - Revenue for the six months ended September 30, 2021, was approximately HK$68.8 million, representing an increase of approximately 74.2% compared to the same period in 2020[14]. - Gross profit for the same period was approximately HK$3.6 million, an increase of approximately 17.2% year-on-year[14]. - Gross profit margin decreased to approximately 5.2% for the six months ended September 30, 2021, down from approximately 7.7% for the same period in 2020[14]. - Consolidated loss attributable to equity holders was approximately HK$68.0 million, an improvement from a loss of approximately HK$89.9 million in the corresponding period of 2020[14]. - Basic and diluted losses per share were approximately HK$0.39, compared to HK$0.52 for the same period in 2020[14]. - The Group's revenue for the Period was approximately HK$68.8 million, an increase of approximately HK$29.3 million or 74.2% compared to the same period in 2020[46]. - Gross profit for the Period was approximately HK$3.6 million, representing an increase of approximately HK$0.5 million or 17.2% over the corresponding period in 2020[47]. - The Group recorded a consolidated loss attributable to equity holders of approximately HK$68.0 million, a decrease from approximately HK$89.9 million in the same period of 2020[55]. - The decrease in consolidated loss was primarily due to an increase in revenue by approximately HK$29.3 million and a reduction in loss on changes in fair value of listed equity securities by approximately HK$12.8 million[55]. - The company reported a total comprehensive loss for the period of HK$67,578,000 as of September 30, 2021, compared to a loss of HK$89,882,000 for the same period in 2020[121]. - For the six months ended September 30, 2021, the company reported a loss attributable to ordinary equity holders of approximately HK$67,978,000, compared to a loss of approximately HK$89,882,000 for the same period in 2020, representing a 24.4% improvement in losses[194]. Market Performance - Revenue from the Hong Kong market increased by 563.4% to approximately HK$34.3 million, compensating for losses in the Mainland China market[24]. - Revenue from the Americas market increased by 50.7% to approximately HK$32.0 million for the six months ended 30 September 2021[25]. - Revenue from the Europe (including Russia) market decreased by 84.3% to approximately HK$1.9 million due to the ongoing COVID-19 pandemic and its impact on the global supply chain[28]. - Sales in the Hong Kong market increased by approximately HK$29.2 million, attributed to various economic support measures by the Hong Kong government[46]. - Revenue from jewellery product sales was HK$34,494,000, slightly up from HK$34,353,000 in 2020, indicating a stable performance[164]. - Sales of precious metals and other raw jewellery materials surged to HK$18,068,000, a significant increase from HK$5,167,000 in 2020, reflecting a 249.4% growth[166]. - Sales of luxury watches reached HK$16,283,000, compared to a negligible amount in 2020, showcasing a strong recovery in this segment[167]. Cost Management and Expenses - Administrative expenses were approximately HK$8.1 million, a decrease of about 33.1% compared to the same period last year, while selling expenses decreased by approximately 38.2% to about HK$1.7 million[29]. - The gross profit margin decreased to approximately 5.2% from approximately 7.7%, mainly due to increased sales in the lower-margin gold and watch business[47]. - The cost of inventories sold for the six months ended September 30, 2021, was HK$56,143,000, significantly higher than HK$31,727,000 in 2020, indicating an increase of 77.3%[194]. - The write-down of inventories to net realizable value was HK$879,000 for the period, compared to a write-back of HK$1,250,000 in the previous year[194]. - Minimum lease payments under operating leases increased to HK$236,000 from HK$75,000, reflecting a rise of 214.7%[194]. - Finance costs for the six months ended September 30, 2021, were HK$37,000, down from HK$317,000 in 2020, indicating improved cost management[178]. Financial Position and Assets - As of 30 September 2021, the Group had current assets of approximately HK$129.6 million, including cash and bank balances of approximately HK$86.6 million[59]. - The current ratio was approximately 4.6 as of 30 September 2021, compared to approximately 5.0 as of 31 March 2021[59]. - Total assets as of September 30, 2021, were HK$166,696,000, down from HK$228,506,000 as of March 31, 2021[111]. - Total current assets increased to HK$129,569,000 from HK$112,441,000, reflecting a growth of 15.3%[111]. - Total liabilities as of September 30, 2021, were HK$28,982,000, compared to HK$23,173,000 at the end of March 2021, an increase of 25.5%[113]. - Total equity attributable to the equity holders of the Company decreased to HK$137,714,000 from HK$205,333,000, a decline of 33%[114]. - The Group's non-current assets as of September 30, 2021, totaled HK$3,115,000, down from HK$3,469,000 as of March 31, 2021[159]. - The Group's consolidated reserves decreased to approximately HK$136,851,000 as of September 30, 2021, down from HK$204,470,000 as of March 31, 2021, marking a reduction of about 33%[117]. Corporate Governance and Management - The Group intends to focus on the luxury market recovery and expand into new jewellery business areas[29]. - The Group aims to strengthen its brand recognition globally while maintaining its status as a top fine jewellery brand in Hong Kong[34]. - The Group has adopted a prudent financial management approach and maintained a healthy liquidity position throughout the Period[59]. - The Company complied with the Corporate Governance Code and its provisions during the reporting period[88]. - Several changes in the Board of Directors occurred, including the appointment of new independent non-executive Directors in May and July 2021[92][93]. - The executive Director, Tom Xie, was appointed as the chairman of the Nomination Committee and a member of the Remuneration Committee[101]. - The Group has not disclosed any significant new strategies or market expansions during the reporting period[81]. - The Company has maintained a focus on enhancing corporate governance practices to balance the interests of shareholders, customers, and employees[89]. Investment and Acquisitions - Perfect Gain Group Limited acquired 129,372,494 shares, representing approximately 74.96% of the entire issued share capital of the Company, for HK$200,000,000, equivalent to approximately HK$1.546 per share[134]. - The completion of the acquisition took place on 30 September 2021, leading to the discharge of responsibilities by the joint receivers[134]. - Following the acquisition, the purchaser was required to make a mandatory unconditional cash offer for all issued shares not already owned or agreed to be acquired by them[135]. - The Group did not have any material acquisitions or disposals of subsidiaries and affiliated companies during the reporting period[82]. - There were no definite future plans for material investments or acquisitions of significant capital assets as of September 30, 2021[81]. Compliance and Accounting - The unaudited condensed consolidated interim financial statements have been prepared in accordance with HKAS 34 and applicable disclosure requirements of the Listing Rules[139]. - The Group adopted new amendments to HKFRSs, including Covid-19-Related Rent Concessions, which had no material impact on the Group's financial positions and performance for the current and prior periods[145]. - The Group's significant accounting policies remain consistent with those used in the audited consolidated financial statements for the year ended 31 March 2021[140]. - The financial statements have not been audited but reviewed by the Company's audit committee[142]. - The application of the new accounting policies did not result in significant changes to the financial statements[146].

Financial Performance - Revenue for the year ended March 31, 2021, was approximately HK$162.6 million, representing an increase of approximately 5.6% compared to the previous year[14]. - Gross profit for the same period was approximately HK$7.0 million, a decrease of approximately 21.0% from the previous year[14]. - Gross profit margin decreased to 4.3% from 5.8% in the last financial year[14]. - Loss attributable to equity holders of the Company was approximately HK$75.0 million for the year ended March 31, 2021, compared to a loss of approximately HK$67.7 million for the previous year[15]. - Basic loss per share amounted to approximately HK$0.43 for the year ended March 31, 2021, compared to HK$0.39 for the previous year[15]. - The Group reported approximately HK$162.6 million in revenue for the financial year ended 31 March 2021, representing an increase of approximately 5.6% compared to the previous year[27]. - Gross profit was approximately HK$7.0 million, with a gross profit margin of approximately 4.3%[27]. - Loss attributable to equity holders of the Company was approximately HK$75.0 million, and no final dividend was recommended for the year[27]. Market Performance - Revenue from the Americas market significantly increased by 554.1% to approximately HK$79.6 million compared to the same period last year[29]. - Revenue from European markets (including Russia) increased by 177.7% to HK$48.6 million compared to the same period last year[34]. - Revenue from the Mainland China market decreased by approximately 7.7% to approximately HK$18.2 million compared to the same period last year[34]. - Revenue from the Hong Kong market registered a significant decline of 84.5% to HK$15.9 million compared to the same period last year[34]. - Revenue from sales to the Asia market, including Mainland China, decreased by approximately 7.7% to approximately HK$18.2 million compared to the previous year[72]. - Revenue generated from the Hong Kong market decreased significantly by approximately 84.5% to approximately HK$15.9 million due to the adverse effects of U.S. sanctions and the ongoing COVID-19 pandemic[73]. Strategic Initiatives - The Company aims to improve operational efficiency and explore new market opportunities in the upcoming fiscal year[22]. - Future strategies include enhancing product offerings and investing in technology development to drive growth[22]. - The Company is focused on expanding its market presence and exploring potential acquisition opportunities[22]. - The company aims to enhance business efficiency by streamlining operations and improving internal resources[45]. - The company plans to expand its luxury customer base and develop new markets to increase global visibility of the K.T.L. brand[45]. - The Group intends to explore new business opportunities while maintaining its jewellery business, aiming to strengthen its market presence and brand recognition globally[108]. - The Group plans to enhance its sales and marketing efforts, participate in trade exhibitions, and allocate resources for product development to cater to diverse consumer preferences[109]. Economic and Market Challenges - The Group is cautiously prudent about future market development due to uncertainties in economic recovery and geopolitical tensions[41]. - The overall global economic outlook has improved, but the recovery process still faces significant uncertainty[41]. - The Group acknowledges the challenges posed by COVID-19 mutations and varying epidemic prevention policies across countries[41]. - The prolonged COVID-19 pandemic has severely disrupted global economic recovery, with Brazil and India becoming the epicenters of new infections[42]. - Sino-US relations remain tense, with no significant signs of improvement, impacting market risks and trade policies[42]. - The global economic situation remained challenging, with uncertainties from the U.S.-China trade conflict and the COVID-19 pandemic impacting the jewellery industry and the Group's sales performance[72]. - Business travel restrictions and the cancellation or postponement of major international jewellery fairs led to significant reductions in orders, shipments, and production during the review period[72]. - The Mainland China market continued to face a challenging operating environment, with consumer demand for gold and jewellery not showing signs of recovery in the short term[73]. - The uncertainties surrounding the new U.S. administration's policies towards Mainland China have dampened business sentiment and consumer confidence[73]. Operational Efficiency - The company has implemented stringent controls over capital expenditures to adapt to the uncertain market environment[77]. - The management is focused on optimizing resource allocation and improving operating efficiency to seek new business growth areas[84]. - Administrative expenses were approximately HK$22.0 million, a decrease of about 12.8% compared to the previous year[79]. - Selling expenses increased by approximately 2.3% to about HK$4.4 million, primarily due to increased export insurance costs[79]. - The company recorded a loss attributable to equity holders of approximately HK$75.0 million for the year, compared to a loss of approximately HK$67.7 million in the previous year[96]. Corporate Governance - The Board comprises nine Directors, including three executive Directors and six independent non-executive Directors[140]. - The Company has complied with all provisions of the Corporate Governance Code during the year ended March 31, 2021[137]. - Independent non-executive Directors represent at least one-third of the Board, meeting the Listing Rules requirements[155]. - The Board is responsible for overseeing the Company's affairs and adopting long-term strategies[148]. - The Company has established various Board committees to handle different aspects of its affairs[149]. - The Board meets at least four times a year to discuss overall strategy and financial performance[160]. - The attendance rate of directors at board meetings is documented, with some directors attending all eligible meetings[162]. - The company ensures continuous professional development for all directors, with training sessions focused on their roles and responsibilities[165]. Employee and Director Information - As of March 31, 2021, the Group had 22 employees, a decrease from 31 employees in 2020, with total staff costs approximately HK$7.9 million, unchanged from the previous year[118][123]. - The Directors believe that employee salaries and benefits are competitive and performance-related within the Group's salary and bonus system, which is reviewed annually[120]. - The responsibilities of the chairman and the CEO are segregated, with Mr. Su Zhiyi as chairman and Mr. Xiong Cong as CEO since September 16, 2020[168]. Audit and Risk Management - The Audit Committee consists of three independent non-executive Directors, with Mr. Chan Chi Kuen as the Chairman, who holds the required professional qualifications[195]. - The primary duties of the Audit Committee include reviewing financial statements and overseeing the Company's financial reporting, risk management, and internal control systems[193]. - The Audit Committee will review the external auditor's management letter and ensure timely responses to issues raised[194].

Financial Performance - Revenue for the six months ended September 30, 2020, was approximately HK$39.5 million, representing a decrease of approximately 59.7% compared to the same period in 2019[11]. - Gross profit for the same period was approximately HK$3.1 million, a decrease of approximately 38.7% year-over-year[11]. - The consolidated loss attributable to the owners of the parent was approximately HK$89.9 million, compared to a loss of approximately HK$37.8 million for the corresponding period in 2019[11]. - Basic and diluted losses per share amounted to approximately HK$0.52, compared to approximately HK$0.22 for the same period in 2019[11]. - The total comprehensive loss attributable to the owners of the parent for the period was HK$88,877,000, compared to HK$38,906,000 in the same period of 2019, indicating a significant increase in losses[96]. - The Group reported a net loss before tax of HK$78,109,000 for the six months ended September 30, 2020, compared to a loss of HK$25,417,000 in 2019[173]. - The Group experienced net foreign exchange losses of HK$369,000 for the six months ended September 30, 2020[173]. Revenue Breakdown - Revenue from sales to the Mainland China market decreased by approximately 92% to approximately HK$793,000 for the six months ended 30 September 2020 compared to the same period last year[20]. - Revenue generated from sales in the Americas market increased by 431% to approximately HK$21.2 million for the six months ended 30 September 2020[21]. - Revenue from sales to the Europe (including Russia) market increased by 1,143% to approximately HK$12.3 million for the six months ended 30 September 2020[24]. - Revenue from jewellery products for the six months ended September 30, 2020, was HK$39,520,000, a decrease of 57.1% compared to HK$92,319,000 in 2019[168]. - Total revenue for the period was HK$39,520,000, down from HK$98,001,000 in the same period last year, reflecting a decline of 59.8%[168]. Expenses and Costs - Administrative expenses were approximately HK$12.1 million, which were approximately 17.5% lower than the corresponding period last year[25]. - Selling expenses increased by approximately 22.9% to approximately HK$2.8 million, mainly due to provisions for samples and consignments used for exhibitions[25]. - The cost of inventories sold for the six months ended September 30, 2020, was HK$31,727,000, a decrease of 64.8% from HK$90,116,000 in 2019[179]. - Finance costs decreased by approximately HK$0.2 million or 36.5% to approximately HK$0.3 million, attributed to a decrease in average borrowing balance[53]. Market Conditions - The global economic situation remained difficult, significantly impacting the jewellery industry and the Group's sales performance[15]. - Business travel restrictions and the cancellation or postponement of major international jewellery fairs led to significant reductions in orders, shipments, and production during the period[15]. - The significant revenue decline was primarily due to a decrease of approximately HK$77.8 million in sales in the Hong Kong market, influenced by the revocation of special trade status by the U.S.[44]. Strategic Initiatives - The Group intends to explore other possible business opportunities both locally and abroad while continuing its jewellery business[33]. - The Group aims to maintain its status as a top fine jewellery manufacturer and exporter in Hong Kong by strengthening its sales and marketing force[34]. - The Group will allocate resources to increase its design capabilities and attract jewellery wholesalers or chain stores in the trade[35]. - The Group aims to strengthen its market share in the existing jewelry market while exploring new business opportunities both locally and overseas[37]. - The Group plans to invest more resources in sales and marketing to promote its brand and products, including selective participation in trade exhibitions[37]. Assets and Liabilities - As of September 30, 2020, the Group's current assets were approximately HK$125.6 million, down from approximately HK$286.9 million as of March 31, 2020[54]. - Current liabilities amounted to approximately HK$32.2 million as of September 30, 2020, up from approximately HK$30.0 million as of March 31, 2020[54]. - The current ratio decreased to approximately 3.9 as of September 30, 2020, from approximately 9.5 as of March 31, 2020[54]. - Total assets as of September 30, 2020, were HK$222,716,000, down from HK$309,467,000 as of March 31, 2020, indicating a decrease of approximately 28%[99]. - The Group's consolidated reserves decreased to approximately HK$188,566,000 as of 30 September 2020, down from approximately HK$277,443,000 as of 31 March 2020[104]. Management Changes - Mr. Li Neng resigned as the chairman and executive director effective September 16, 2020[83]. - Mr. Su Zhiyi was appointed as the Chairman and executive director effective September 16, 2020[88]. - The company has undergone significant management changes, with new appointments effective from September 16, 2020, including a new CEO and chairman[90]. Dividend Policy - The board does not recommend the payment of an interim dividend for the six months ended September 30, 2020[12]. - The Directors do not recommend the payment of an interim dividend for the period, consistent with the previous year[189].

Financial Performance - Revenue for the year ended 31 March 2020 was approximately HK$154.0 million, representing a decrease of approximately 29.8% compared to the previous year[12]. - Gross profit for the same period was approximately HK$8.9 million, a decrease of approximately 67.6% year-on-year[12]. - Gross profit margin decreased to 5.8% from 12.5% in the previous financial year[12]. - Loss attributable to equity holders of the Company was approximately HK$67.7 million, compared to a loss of approximately HK$17.1 million for the previous year[13]. - Basic loss per share amounted to approximately HK$0.39, compared to HK$0.10 for the previous year[13]. - The Group recorded revenue of approximately HK$154.0 million for the fiscal year ended March 31, 2020, with a gross profit of HK$8.9 million and a gross margin of 5.8%[23]. - The Group's revenue for the year ended 31 March 2020 was approximately HK$154.0 million, a decrease of approximately HK$65.2 million or 29.8% compared to the previous year[86]. - Gross profit for the year ended 31 March 2020 was approximately HK$8.9 million, representing a decrease of approximately HK$18.6 million or 67.6% compared to the previous year, with a gross profit margin declining to approximately 5.8% from 12.5%[87]. - The loss attributable to equity holders of the Company was approximately HK$67.7 million for the year ended 31 March 2020, compared to a loss of approximately HK$17.1 million for the previous year, primarily due to a revenue decline of about 29.8% and a gross profit decrease of approximately 67.6%[104]. Market Performance - Revenue from sales in the Hong Kong market significantly increased by 122.0% year-on-year to HK$103.0 million[22]. - Revenue from the Mainland China market declined by 75.7% to HK$19.7 million due to decreased consumer confidence and COVID-19 restrictions[26]. - Revenue from the European and Russian markets decreased by 77.5% to HK$17.5 million, impacted by the COVID-19 pandemic and economic challenges[27]. - Sales revenue in other markets increased by 168.5% to HK$1.7 million, attributed to the Group actively seeking business opportunities[28]. - Revenue from the China market decreased by 75.7% to HK$19.7 million for the year ended March 31, 2020[71]. - Revenue from the Europe (including Russia) market fell by 77.5% to HK$17.5 million compared to the same period last year[74]. - Revenue generated from the Americas market declined by 11.9% to HK$12.2 million compared to the same period last year[75]. Economic Impact - The global economic downturn due to COVID-19 severely impacted consumer confidence and retail figures[21]. - The escalation of Sino-US trade conflicts and the COVID-19 pandemic created significant uncertainty in the global economic situation[21]. - The COVID-19 pandemic has significantly impacted the jewellery industry, leading to increased labour costs and a decline in economic activities globally[68]. - The uncertainties from trade frictions and geopolitical tensions have contributed to a widespread slowdown in the global economy[68]. - The economic downturn has brought significant challenges to the jewellery industry, including a sharp decline in external demand and a fall in commodity prices[68]. - The economic environment in Europe has been severely impacted by COVID-19, leading to increased unemployment and decreased disposable income[81]. - The Group anticipates continued downward pressure on the global economy due to factors such as the Sino-U.S. trade war and the global spread of COVID-19[81]. Strategic Initiatives - The Group adjusted its asset portfolio to strengthen the development of gold products and watches in the Hong Kong market[22]. - The Group plans to remain conservative regarding the industry outlook for 2020 due to significant downward pressure on the global economy[30]. - The Group aims to enhance sales and marketing capabilities and expand into new markets to increase global visibility of the K.T.L. brand[35]. - The Group will focus on digital transformation and online sales to adapt to changing consumer habits in the fine jewelry market[30]. - The Group plans to explore new business opportunities in the food and beverage industry, which is expected to provide strong growth potential and mitigate risks associated with its jewellery business[110]. - The management plans to actively optimize resource allocation and improve operating efficiency to cope with future uncertainties[81]. - In mainland China, the group plans to leverage its brand effect and design capabilities to attract jewelry wholesalers and chain stores, investing more in sales and marketing resources[118]. Corporate Governance - The board consists of six directors, including three executive directors and three independent non-executive directors[41]. - The Company complied with all provisions of the Corporate Governance Code, except for a deviation regarding attendance at the annual general meeting[150]. - The independent non-executive Directors did not attend the annual general meeting held on July 31, 2019, due to other business engagements[151]. - The Company adopted the Model Code for Securities Transactions by Directors and confirmed compliance during the year ended March 31, 2020[152]. - The Group's corporate governance practices are aimed at balancing the interests of shareholders, customers, and employees[149]. - The Board has delegated the responsibility of implementing strategies and day-to-day operations to the management under the leadership of executive Directors[165]. - The Company ensures timely announcement of financial results in accordance with statutory and regulatory requirements[168]. - The Company has established three committees: Nomination Committee, Remuneration Committee, and Audit Committee, with a majority of independent non-executive Directors[194]. Management and Staff - The management team and all staff are acknowledged for their hard work and contributions[39]. - The total staff costs for the year ended March 31, 2020, were approximately HK$9.1 million, a decrease of about 67.2% compared to approximately HK$27.8 million for the year ended March 31, 2019[123]. - The group has 31 employees as of March 31, 2020, down from 40 in 2019, indicating a reduction in workforce[123]. - All current Directors participated in continuous professional development during the financial year, focusing on the roles and responsibilities of listed company directors[187]. Financial Position - Current assets as at 31 March 2020 were approximately HK$286.9 million, down from approximately HK$357.2 million in the previous year[103]. - The current ratio was approximately 9.6 as at 31 March 2020, compared to approximately 11.8 in the previous year[103]. - Financial assets at fair value through profit or loss amounted to approximately HK$152.2 million, with a loss on changes in fair value of approximately HK$45.9 million recognized during the year[101]. - As of March 31, 2020, the Group's current assets were approximately HK$286.9 million, down from HK$357.2 million in 2019, with cash and bank balances at approximately HK$27.9 million[108]. - The Group's trade receivables increased by approximately HK$27.3 million as of March 31, 2020, mainly due to increased revenue from the Hong Kong market[107]. - The Group's gearing ratio was not applicable as cash and bank balances exceeded interest-bearing borrowings as of March 31, 2020[110]. - The Group had no material contingent liabilities as of March 31, 2020, consistent with the previous year[146]. Risk Management - The group faces foreign exchange risk primarily related to the Renminbi, with potential losses or gains of approximately HK$6,000 if the Hong Kong dollar appreciates or depreciates by 5% against the Renminbi[119]. - The group has not engaged in any derivative activities or used financial instruments to hedge foreign currency risks[120].

Financial Performance - Revenue for the six months ended September 30, 2019, was approximately HK$98.0 million, representing an increase of approximately 28.7% compared to the same period in 2018[11]. - Gross profit for the same period was approximately HK$5.0 million, a decrease of approximately 48.7% compared to the prior year[11]. - Gross profit margin decreased to approximately 5.1% for the six months ended September 30, 2019, down from approximately 12.8% in the same period of 2018[11]. - The consolidated loss attributable to the owners of the parent was approximately HK$37.8 million, compared to a loss of approximately HK$23.8 million for the corresponding period in 2018[11]. - Basic and diluted losses per share amounted to approximately HK$0.22, compared to approximately HK$0.14 for the same period in 2018[11]. - The Group's gross profit for the period was approximately HK$5.0 million, a decrease of approximately HK$4.7 million or 48.7% compared to the previous year[79]. - The Group recorded a consolidated loss attributable to the owners of the parent of approximately HK$37.8 million, compared to a loss of approximately HK$23.8 million for the same period in 2018, despite an increase in revenue of approximately HK$21.8 million[90]. - The loss before tax for the period was HK$37,724,000, compared to HK$23,347,000 in 2018, showing an increase in losses of about 61.8%[126]. - The total comprehensive loss attributable to the owners of the parent for the period was HK$38,906,000, compared to HK$29,139,000 in the previous year, representing an increase of approximately 33.3%[128]. Revenue Breakdown - Revenue from sales to the PRC market decreased by approximately 69.8% to approximately HK$9.7 million compared to the same period last year[47]. - Revenue generated from the Hong Kong market increased by approximately 1,478.5% to approximately HK$83.0 million, mainly due to the commencement of trading of watches and an increase in sales of gold products[47]. - Revenue from sales to the Americas market lowered to approximately HK$4.0 million, representing a drop of approximately 49.3%[48]. - Revenue from the Chinese market decreased by approximately 69.8% to about HK$9.7 million for the six months ended September 30, 2019[49]. - Revenue from the Hong Kong market increased by approximately 1,478.5% to about HK$83.0 million, driven by higher sales of watches and gold products[49]. - Revenue from the Americas market declined by approximately 49.3% to about HK$4.0 million due to cautious consumer spending amid trade tensions[49]. - Revenue from the Europe (including Russia) market dropped by approximately 96.7% to about HK$1.0 million, reflecting a weak economy and changing consumer expectations[51]. Management and Governance - Mr. Zhao Minhao serves as the deputy general manager of the Investment Banking Department of HNA Catering Holdings Co., Ltd, with a background in food science and business administration[20]. - Mr. Zhao Yeyong is the chief financial officer of HNA Catering, holding a Bachelor’s degree in Electronic Information Engineering[24]. - HNA Catering has a diverse management team with extensive experience in various sectors, including finance, aviation, and food services[24]. - The management team includes independent non-executive directors with significant experience in finance and law, enhancing corporate governance[28]. - The company has undergone significant changes in its board of directors, with multiple resignations and appointments effective from June 28, 2019[122][124]. - The company has adhered to corporate governance principles and standards as outlined in the Listing Rules, ensuring compliance throughout the reporting period[120]. Market Conditions - The global economic growth remains sluggish, with market volatility affecting consumer confidence and spending[47]. - The trade war between the PRC and the U.S. dampened business sentiment, impacting the willingness of Chinese middle-income groups to make luxury purchases[47]. - Consumers are anticipated to be cautious about spending, which may lead to further consolidation in the traditional fine jewellery market[58]. - The strong aspiration for exclusivity among modern Chinese consumers continues to pressure traditional fine jewellery[47]. - The ongoing U.S.-China trade war and economic uncertainties are expected to increase recession risks and impact long-term business commitments[57]. Cost Management - Administrative expenses decreased by approximately 39.2% to about HK$14.7 million, while selling expenses fell by approximately 79.8% to about HK$2.3 million for the same period[52]. - Selling expenses decreased by approximately HK$9.1 million or 79.8%, to approximately HK$2.3 million for the period[79]. - The company plans to enhance management resources and cost efficiency to optimize production capacity and diversify its jewellery product range[59]. Strategic Initiatives - The company aims to maintain long-term client relationships and expand its business through innovative product management and marketing strategies[33]. - HNA Catering is actively involved in market development and strategic partnerships to enhance its operational capabilities[20]. - The Group is exploring potential business opportunities in the food and beverage industry to mitigate risks associated with its jewellery business[63]. - The Group is optimistic about the food and beverage industry and is focused on expanding into new markets supported by the "One Belt, One Road" initiative[68]. - The "One Belt, One Road" initiative is expected to boost demand across various sectors, benefiting the food and beverage industry and the Group's expansion efforts[63]. - The Group plans to enhance its sales and marketing efforts to solidify its brand presence globally and attract more jewellery wholesalers and chain stores[68]. - The Group aims to offer a wider range of product designs tailored to individual markets to better meet consumer preferences[68]. Financial Position - As of September 30, 2019, the Group had current assets of approximately HK$330.7 million, down from approximately HK$357.2 million as of March 31, 2019, with cash and bank balances decreasing to approximately HK$35.6 million from approximately HK$270.8 million[91]. - The Group's current liabilities increased to approximately HK$44.3 million as of September 30, 2019, compared to approximately HK$30.4 million as of March 31, 2019, resulting in a current ratio of approximately 7.5[92]. - The gearing ratio as of September 30, 2019, was not applicable as cash and bank balances exceeded interest-bearing bank and other borrowings[94]. - Total assets as of September 30, 2019, amounted to HK$353,891,000, a decrease from HK$377,869,000 as of March 31, 2019, representing a decline of approximately 6.35%[132]. - Total current assets were HK$330,656,000, compared to HK$357,195,000 in March 2019, indicating a decrease of about 7.43%[132]. - Total liabilities stood at HK$45,286,000, reflecting a slight increase from HK$44,332,000, which is an increase of approximately 2.15%[135]. - Total equity attributable to owners of the parent was HK$308,605,000, down from HK$347,511,000, representing a decrease of around 11.19%[135]. - Cash and bank balances were reported at HK$270,808,000, a decrease from HK$35,593,000, indicating a significant drop in liquidity[132]. Accounting Policies - The Group has adopted new accounting standards including HKFRS 16, which supersedes HKAS 17, effective from April 1, 2019[165]. - The adoption of HKFRS 16 did not have a significant impact on the Group's results and financial position, except for the effects disclosed in note 2.2(b)[169]. - The Group applies the short-term lease recognition exemption for leases with a term of 12 months or less and no purchase option, recognizing lease payments as an expense on a straight-line basis[177]. - The Group's significant accounting policies remain consistent with those used in the audited consolidated financial statements for the year ended March 31, 2019[163]. - The financial statements are prepared based on historical cost, except for financial assets measured at fair value[163]. - The Group's accounting policies have been updated to comply with HKFRS 16, impacting the recognition of leases[184]. - The Group recognizes right-of-use assets at the commencement date of the lease, measured at cost, less accumulated depreciation and impairment losses[181]. - Lease liabilities are recognized at the present value of unpaid lease payments at the commencement date, using the incremental borrowing rate if the implicit interest rate is not determinable[186].

Financial Performance - Revenue for the year ended March 31, 2019, was approximately HK$219.3 million, representing a decrease of approximately 49.4% compared to the previous year[14]. - Gross profit for the same period was approximately HK$27.4 million, a decrease of approximately 65.1% year-on-year[14]. - Gross profit margin decreased to 12.5% from 18.1% in the previous financial year[14]. - Loss attributable to equity holders of the Company was approximately HK$17.1 million, compared to a loss of approximately HK$37.3 million for the year ended March 31, 2018[14]. - Basic loss per share amounted to approximately HK$0.10, compared to HK$0.22 for the previous year[15]. - The Group recorded a loss attributable to equity holders of approximately HK$17.1 million for the fiscal year ending March 31, 2019[27]. - Revenue from sales to the PRC market declined by 21.7% to HK$80.8 million for the year ended 31 March 2019 compared to the previous year[26]. - Revenue from sales to the Russian market decreased by 43.0% to HK$60.0 million due to a shortage of bulk orders[31]. - Revenue generated from the Americas market fell by 91.3% to HK$13.8 million from the same prior year period[31]. - Revenue decline was primarily due to significant slowdowns in sales in the Americas, Russia, and the PRC markets, with decreases of approximately HK$145.7 million, HK$45.2 million, and HK$22.3 million respectively[84]. Economic Outlook - The global economic outlook showed signs of uncertainty, impacting business and consumer confidence during the financial year[25]. - The economic outlook remains uncertain, with trade tensions and rising interest rates negatively impacting the global economy and consumer spending[31]. - The overall slow wage growth has negatively affected consumer purchasing power, contributing to a challenging market environment[67]. - The global economic environment remains challenging due to trade conflicts and political tensions, impacting consumer confidence and spending[67]. - The Group anticipates that the Russian jewellery market may only revive if the overall economic situation normalizes[73]. Strategic Initiatives - The Company aims to navigate these challenges while focusing on improving financial performance in the upcoming periods[25]. - The Group plans to enhance management resources and cost efficiency to optimize production capacity in response to market challenges[31]. - The Group aims to strengthen partnerships with customers and adjust production resources to better cater to varied product lead times and consumer preferences[31]. - The Group is exploring new opportunities in the food and beverage industry to complement its current jewellery business and support future growth[34]. - The Group is optimistic about the food and beverage industry and is committed to expanding into new markets supported by the "One Belt, One Road" initiative[100]. - The Group plans to improve operating efficiency by streamlining business operations and optimizing internal resources in response to market challenges[81]. Management and Governance - The Board consists of six Directors, including three executive Directors and three independent non-executive Directors[41]. - The Company has a strong management team with extensive experience in the catering and aviation industries[41][42][43]. - The strategic planning and business development are overseen by Mr. Kei York Pang Victor, who has over 29 years of experience in the jewellery industry[55]. - The management team emphasizes product innovation and customer service as key components of their strategy[55]. - The Company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance during the year ended March 31, 2019[118]. - The Board has established various committees to handle different aspects of the Company's affairs[124]. Financial Management - As at 31 March 2019, the Group had current assets of approximately HK$357.2 million, including cash and bank balances of approximately HK$270.8 million[89]. - The current ratio was approximately 11.8 at 31 March 2019, compared to approximately 12.5 in 2018[92]. - The Group's prudent financial management approach has maintained a healthy liquidity position throughout the period under review[90]. - The Group's finance costs decreased by approximately HK$7.7 million or 88.1%, to approximately HK$1.0 million for the year ended March 31, 2019 from approximately HK$8.7 million for the year ended March 31, 2018[85]. - The Group's administrative expenses decreased by approximately HK$11.8 million or 19.1%, to approximately HK$49.8 million for the year ended 31 March 2019 from approximately HK$61.6 million for the year ended 31 March 2018[84]. Corporate Governance - The Company complied with all provisions of the Corporate Governance Code during the year ended March 31, 2019[114]. - The Board is responsible for overseeing the Company's affairs and adopting long-term strategies[123]. - The Audit Committee has reviewed the financial statements for the year ended March 31, 2019, and considers them compliant with relevant accounting standards[172]. - The Company has established procedures to safeguard assets against unauthorized use and ensure compliance with relevant legislation[186]. - The Company has received written confirmations of independence from all independent non-executive Directors[142]. Risk Management - The Audit Committee conducted a review of the effectiveness of the Group's risk management and internal control systems covering financial, operational, and compliance controls[187]. - The Directors considered that the risk management and internal control systems of the Group were effective and adequate for the financial year ended March 31, 2019[188]. - The Group's risk management strategies are aimed at evaluating risks compatible with strategic objectives and risk appetite[185]. - Employees are required to submit an annual declaration of conflict of interest to ensure compliance with the Group's policies and maintain high standards of business conduct and ethics[198]. - The Group established a whistleblowing policy allowing employees to report suspected misconduct confidentially, with the Internal Audit Department responsible for investigating and making recommendations[199].