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].