Company Overview - The principal activity of the company is investment holding, with subsidiaries engaged in importing, wholesale, retail, and installation of architectural builders' hardware, bathroom, kitchen collections, and furniture in Hong Kong and the PRC[10]. Economic Impact of COVID-19 - The COVID-19 pandemic has severely disrupted economic activities, with the Hong Kong unemployment rate reaching a 15-year high in the last quarter[12]. - The Hong Kong government has implemented stringent prevention measures and provided subsidies to affected industries, which aided the company's operations[11]. - The company anticipates ongoing restrictions on business and travel in Hong Kong due to the pandemic situation[12]. - The company is focused on maintaining its operations and adapting to the changing market conditions caused by the pandemic[11]. - The management is closely monitoring the economic environment and adjusting strategies accordingly to mitigate risks[11]. - The Group anticipates a challenging economic environment in Hong Kong for 2021, particularly in the retail sector, which is expected to face significant pressure[29]. - The geopolitical tensions between the US and PRC present additional uncertainties and challenges for the business environment in Hong Kong[28]. Financial Performance - The Group's total turnover decreased by 14.9% to HK$223.0 million compared to HK$261.9 million in the same period last year[19]. - Revenue from the architectural builders' hardware, bathroom collections, and others segment decreased by 16.2% to HK$170.7 million from HK$203.8 million in the previous year[17]. - Revenue from the kitchen collection and furniture segment decreased by 10.0% to HK$52.3 million compared to HK$58.2 million in the same period last year[18]. - Gross profit decreased by 25.6% to HK$76.2 million from HK$102.3 million in the previous year[19]. - Operating profit was HK$12.8 million, representing a decrease of 19.6% from HK$15.9 million in the same period last year[20]. - Profit after tax approximated HK$8.5 million, a decrease of 17.8% from HK$10.4 million in the previous year[20]. - The decrease in profitability was attributed to a change in product mix and budget concerns from customers[19]. - The Group's profit for the period was HK$8,519,000, a decrease of 17.9% from HK$10,360,000 in the same period last year[10][155]. Cash Flow and Liquidity - As of 30 September 2020, the current ratio was 2.2 and the quick ratio was 1.6, with cash and cash equivalents approximating HK$180.4 million, an increase from HK$83.4 million as of 31 March 2020[24]. - The Company has not experienced difficulties in meeting its financial obligations as they become due, maintaining effective cash flow management[24]. - Cash and cash equivalents significantly increased to HK$180,397,000 from HK$83,434,000, indicating a rise of about 116.67%[94]. - The net increase in cash and cash equivalents for the period was HK$96,803,000, compared to HK$14,913,000 in the prior year, reflecting a growth of 548.5%[105]. Dividends and Shareholder Information - The interim dividend declared was HK$0.5 cent per share for the six months ended 30 September 2020, down from HK$1 cent per share for the same period in 2019[35]. - The company announced an interim dividend of HK$0.5 per share for the six months ended September 30, 2020, down from HK$1.0 per share for the same period in 2019[39]. - The number of issued and fully paid ordinary shares remained at 600,600,000 as of both September 30, 2020, and March 31, 2020, maintaining the company's capital structure[177]. Operational Adjustments - The company continues to explore opportunities for market expansion and new product development in response to evolving consumer needs[11]. - The Group supplied products for various projects including Central Peak and The Pavilia Farm during the period[17]. - The Group plans to rationalize its cost structure to maintain sufficient working capital amid economic uncertainties[29]. Employment and Workforce - The Group's workforce decreased to 142 employees as of September 30, 2020, down from 152 employees on March 31, 2020[71]. - Key management personnel received short-term employee benefits amounting to HK$4,174,000, a decrease from HK$4,900,000 in the previous year, representing a decline of approximately 14.8%[188]. Compliance and Governance - The Company complied with all provisions of the Corporate Governance Code throughout the six months ended September 30, 2020, except for one independent non-executive Director's absence at the annual general meeting[77]. - The company has maintained compliance with the Model Code for Securities Transactions by Directors throughout the six months ended September 30, 2020[82]. Accounting and Financial Reporting - The financial information is prepared in accordance with Hong Kong Accounting Standard 34, ensuring compliance with interim financial reporting requirements[108]. - The company adopted several new accounting standards effective from 1 April 2020, including amendments to HKAS 1 and HKAS 8, which define materiality[110]. - Management is assessing the financial impact of new standards and amendments, which will be adopted when they become effective[116]. Inventory and Receivables - Trade receivables as of 30 September 2020 were HK$117,046,000, a decrease from HK$138,986,000 as of 31 March 2020[12][159]. - The provision for impairment of trade receivables was HK$629,000, slightly up from HK$626,000 in the previous period[12][159]. - The provision for inventory obsolescence was HK$6,929,000 for the six months ended September 30, 2020[132].

Financial Performance - Revenue for the year ended March 31, 2020, was HK$510.4 million, a decrease from HK$539.8 million in 2019, representing a decline of approximately 5.3%[14] - Profit attributable to shareholders decreased to HK$11.3 million from HK$15.1 million in 2019, reflecting a decline of about 25.5%[14] - Basic earnings per share fell to HK1.89 cents from HK2.51 cents, a decrease of approximately 24.6%[14] - The Group's total turnover for the year ended March 31, 2020, was HK$510.4 million, representing a decrease of 5.4% compared to the previous year[35] - Revenue from the kitchen collection and furniture segment decreased by 18.8% to HK$121.0 million (2019: HK$149.0 million) due to weakened demand for high-end kitchen cabinets[44] - The overall gross profit of the Group amounted to HK$206.7 million (2019: HK$210.8 million), representing a decrease of 1.9%, while the gross profit margin slightly increased to 40.5% from 39.1%[44] - The Group's operating profit was HK$22.1 million (2019: HK$20.3 million), representing an increase of 9.1% from the prior year[45] - The Group's distributable reserves as of March 31, 2020, amounted to HK$49,483,000, down from HK$64,305,000 in 2019[101] Liquidity and Financial Health - The current ratio was reported at 2.4, down from 2.8 in 2019, indicating a tightening liquidity position[25] - The quick ratio remained stable at 1.5, unchanged from the previous year, suggesting consistent short-term financial health[25] - Cash and cash equivalents approximated HK$83.4 million as of March 31, 2020, compared to HK$66.4 million in the previous year[45] - Inventories slightly decreased to HK$144.9 million (2019: HK$169.5 million), while trade and other receivables increased to HK$160.0 million (2019: HK$138.6 million)[46] - The gearing ratio as of March 31, 2020, was 1.1%, with interest-bearing borrowings decreasing to HK$10.7 million (2019: HK$36.6 million)[47] - The current ratio and quick ratio were 2.4 and 1.5, respectively, indicating a stable liquidity position[45] - The Group has not experienced difficulties in meeting its financial obligations as they become due[57] Economic Environment - The economic environment in Hong Kong has been challenging, with a reported contraction of 8.9% in the first quarter of 2020, the steepest decline in decades[20] - The economic recession deepened with real GDP contracting sharply in the first quarter of 2020 compared to the previous year[66] - The ongoing US-China trade dispute and the COVID-19 pandemic have severely disrupted business sentiment and consumer confidence in Hong Kong[66] - The Hong Kong Government's relief packages aim to stabilize employment and stimulate local demand, which may slow down the economic downturn[66] Impact of COVID-19 - The COVID-19 pandemic has caused disruptions to the Group's daily operations, potentially affecting its business and financial performance in 2020[59] - The overall financial impact of the COVID-19 outbreak on the Group remains uncertain and subject to further evaluation[59] - The progress of construction projects remained stable despite minor disruptions in the supply chain due to COVID-19[38] Strategic Focus and Management - The company plans to focus on its product mix to meet customer expectations and adapt to market conditions[22] - The management emphasized the importance of resilience and adaptability in response to the ongoing economic downturn and weak demand[21] - The Group plans to adjust its strategies in response to the changing market environment and capitalize on its strengths in product ranges and developer relationships[67] - The Group continued to expand its business in Hong Kong and the PRC while adopting a prudent financial management policy[45] Shareholder Returns - The proposed final dividend per share is HK0.5 cents, down from HK1.5 cents in the previous year, reflecting a cautious approach to shareholder returns amid economic uncertainty[14] - An interim dividend of HK1 cent per share was declared for the six months ended September 30, 2019, totaling HK$6,006,000, consistent with the previous year[93] - A final dividend of HK0.5 cent per share is proposed for the year ended March 31, 2020, totaling HK$3,003,000, down from HK$9,009,000 for the previous year[93] Corporate Governance - The Company has resolved to recommend the final dividend at the forthcoming Annual General Meeting scheduled for September 8, 2020[93] - The Company has arranged insurance cover to protect Directors against potential costs and liabilities arising from claims[156] - All Independent Non-executive Directors confirmed their independence according to Rule 3.13 of the Listing Rules[156] - The Company has not entered into any management contracts for substantial parts of its business during the year[144] Employee and Operational Insights - The Group's total staff costs amounted to HK$75,151,000 for the year ended 31 March 2020, a decrease from HK$77,589,000 in 2019[198] - The workforce was recorded at 152 employees as of 31 March 2020, down from 161 employees in 2019[198] - The Group's management team is experienced and closely involved in daily operations, ensuring adaptability to changes in the operating environment[191] - The Group is committed to maintaining collaborative relationships with employees, customers, and suppliers[194]

Financial Performance - Total turnover increased by 1.4% for the first six months compared to the same period last year[14]. - The Group's total turnover for the six months ended 30 September 2019 was HK$261.9 million, an increase of 1.4% compared to HK$258.2 million in the same period last year[23]. - Revenue for the six months ended September 30, 2019, was HK$261,936,000, a 1% increase from HK$258,239,000 in the same period of 2018[97]. - Revenue from the architectural builders' hardware, bathroom collections, and others segment slightly decreased by 0.8% to HK$203.8 million, down from HK$205.3 million in the previous year[21]. - Revenue from the kitchen collection and furniture segment increased by 9.9% to HK$58.2 million, compared to HK$52.9 million in the same period last year[22]. - The Group's gross profit increased by 4.7% to HK$102.3 million, up from HK$97.7 million in the same period last year[23]. - Operating profit was HK$15.9 million, representing a decrease of 8.5% from HK$17.4 million in the same period last year[24]. - Profit after tax approximated to HK$10.4 million, a decrease of 25.9% compared to HK$14.0 million in the corresponding period last year[24]. - The Group's profit for the period was HK$10,360,000, a decrease of 25.5% compared to HK$13,973,000 for the same period in 2018[189]. Economic Environment - The Hong Kong economy showed mild growth in Q2 2019 but contracted sharply in Q3 due to political unrest[13]. - Retail shops in Hong Kong, especially in protest hotspots, experienced a substantial drop in business[13]. - The political crisis in Hong Kong has led to reduced consumer spending and increased saving behavior[13]. - Global trade and capital markets were cautiously optimistic regarding the Sino-US trade war, impacting consumer confidence[13]. - The economic growth rate has been reduced due to fluctuations in currencies and macroeconomic conditions[13]. - The Group anticipates stagnant demand for housing units due to ongoing social unrest and economic challenges in Hong Kong[33]. - Retail sales in Hong Kong recorded the largest year-on-year drop for a single month in August 2019, indicating weakened consumer sentiment[32]. - The ongoing trade negotiations between the US and PRC are expected to prolong the trade war, impacting economic conditions in Hong Kong[31]. Company Operations - The company’s principal activity is investment holding, with subsidiaries engaged in importing, wholesale, retail, and installation of architectural builders' hardware and furniture[12]. - The company operates primarily in Hong Kong and the People's Republic of China[12]. - The Group maintained a diverse product mix, which helped sustain its presence in residential projects despite a slowdown in home completion rates[21]. - The Group supplied products for notable projects such as Emerald Bay, Grand Marine, and Crescent Green during the reporting period[21][22]. Financial Position - As of September 30, 2019, the current ratio is 2.1 and the quick ratio is 1.2, compared to 2.8 and 1.5 as of March 31, 2019 respectively[29]. - Cash and cash equivalents increased to approximately HK$79.8 million as of September 30, 2019, up from HK$66.4 million as of March 31, 2019[29]. - Inventories rose slightly to HK$177.0 million as of September 30, 2019, compared to HK$169.5 million as of March 31, 2019[29]. - Trade and other receivables increased by 0.9% to HK$139.9 million as of September 30, 2019, from HK$138.6 million as of March 31, 2019[29]. - Interest-bearing borrowings decreased to HK$30.6 million as of September 30, 2019, down from HK$36.6 million as of March 31, 2019[29]. - Total assets as of September 30, 2019, amounted to HK$739,643,000, an increase from HK$620,317,000 as of March 31, 2019[99]. - Total liabilities as of 30 September 2019 amounted to HK$276,683,000, an increase from HK$157,441,000 as of 31 March 2019, representing a growth of 75.7%[101]. - Current liabilities increased to HK$190,540,000 from HK$132,983,000, reflecting a rise of 43.3%[101]. - Total equity as of 30 September 2019 was HK$462,960,000, slightly down from HK$467,681,000 as of 30 September 2018, a decrease of 1.5%[106]. Governance and Compliance - The Board of Directors consists of seven members, including five Executive Directors and two Independent Non-executive Directors, as of September 30, 2019[80]. - The company has complied with all provisions of the Corporate Governance Code, except for the absence of an internal audit function due to the current scale of operations[81]. - The company confirmed compliance with the Model Code for Securities Transactions by Directors throughout the six months ended September 30, 2019[87]. - The Audit Committee currently comprises two independent non-executive directors following the passing of the previous chairman[88]. Accounting Policies - The Group adopted HKFRS 16 "Leases" effective from April 1, 2019, recognizing lease liabilities previously classified as "operating leases" under HKAS 17[128]. - The modified retrospective approach was used to adopt HKFRS 16, with cumulative effects recorded in opening equity at April 1, 2019, without restating the comparative period[129]. - The Group's accounting policies remain consistent with those of the consolidated financial statements for the year ended March 31, 2019, except for the adoption of new standards[121]. - The Group has recognized current lease liabilities of HK$38,652,000 and non-current lease liabilities of HK$81,065,000 under HKFRS 16[132]. - The right-of-use assets increased by HK$119,717,000 as of April 1, 2019[134]. Employee and Shareholder Information - The workforce increased to 165 employees as of September 30, 2019, compared to 161 employees on March 31, 2019[73]. - As of September 30, 2019, Mr. TSE Sun Wai, Albert held a corporate interest of 108,302,488 shares, representing 18.03% of the issued share capital[53]. - Mr. TSE Sun Fat, Henry held a corporate interest of 37,197,294 shares, representing 6.19% of the issued share capital[53]. - Mr. TSE Sun Po, Tony held a corporate interest of 43,659,542 shares, representing 7.27% of the issued share capital[53]. - As of September 30, 2019, no directors or chief executives had any interests in shares or rights to subscribe for shares that required disclosure[60].