Financial Performance - Total comprehensive income attributable to the company for the year ended March 31, 2024, was HKD 2,372,000, compared to HKD 10,793,000 for the previous year, representing a decrease of approximately 78%[7] - Basic and diluted earnings per share for the year ended March 31, 2024, were 1.19 HK cents, down from 2.22 HK cents in the previous year, indicating a decline of about 46.4%[7] - Total revenue for the fiscal year ending March 31, 2024, was HKD 459,848,000, compared to HKD 454,764,000 for the previous year, representing a growth of approximately 1.5%[28] - Gross profit decreased to HKD 179,210,000 from HKD 180,606,000, reflecting a decline of about 0.8%[28] - The profit attributable to equity holders for the year was HKD 8,543,000, down from HKD 14,073,000, a decline of approximately 39.0%[28] - Operating profit before tax was HKD 10,862,000, down from HKD 16,669,000, indicating a decrease of about 34.0%[28] - The net loss from other income was HKD (3,088,000), a decline from a profit of HKD 1,003,000 in the previous year[28] - The total income tax expense for 2024 was HKD 2,319,000, a decrease from HKD 2,596,000 in 2023, representing a reduction of approximately 10.7%[75] Assets and Liabilities - Total assets as of March 31, 2024, were HKD 711,095,000, a decrease from HKD 740,573,000 in the previous year, reflecting a reduction of approximately 4%[9] - Total liabilities decreased to HKD 215,602,000 from HKD 243,858,000, marking a decline of about 11.6%[9] - Deferred tax liabilities decreased to HKD 14,500,000 from HKD 17,201,000, a reduction of approximately 15.7%[9] - The company’s total equity attributable to shareholders was HKD 495,493,000, slightly down from HKD 496,715,000, indicating a marginal decrease of about 0.2%[8] - The company’s cash and cash equivalents decreased significantly to HKD 57,377,000 from HKD 123,296,000, reflecting a decline of approximately 53.5%[8] Inventory and Receivables - Inventory increased to HKD 169,712,000 from HKD 144,909,000, representing an increase of approximately 17.1%[8] - Trade receivables and other receivables rose to HKD 115,145,000 from HKD 94,298,000, indicating a growth of about 22%[8] - Accounts receivable increased to 96,532 thousand HKD in 2024 from 71,605 thousand HKD in 2023, representing a growth of 35%[80] - The group recorded a year-end balance of receivables of HKD 2,193,000 for 2024, up from HKD 1,397,000 in 2023, indicating a growth of approximately 57.1%[59] Segment Performance - The reported revenue from external customers for the Kitchen Equipment and Furniture segment was HKD 109,905, while the total revenue was HKD 459,848[41] - The reported revenue from external customers for the Bathroom Equipment segment was HKD 349,943, contributing to the total revenue of HKD 459,848[41] - Sales in the bathroom equipment segment increased by 27.5%[89] - Revenue from the construction and bathroom equipment segment increased by 11.2% to HKD 349.9 million, while kitchen equipment and furniture revenue decreased by 21.6% to HKD 109.9 million[123] Economic and Market Conditions - The geopolitical tensions have significantly impacted the economic landscape, with China's GDP growth rate for 2023 reported at 5.2%[62] - The Hong Kong economy showed resilience with a GDP growth of 3.2% for the year, despite geopolitical challenges affecting the real estate market[86] - The economic outlook for China in 2024 faces significant challenges, including high levels of corporate and local government debt, impacting financial stability and growth[104] - The Hong Kong government needs to implement strong policy measures and economic diversification strategies to mitigate challenges and restore growth trajectories in the medium to long term[106] - The ongoing geopolitical uncertainties and potential changes in policy and regulatory frameworks have increased challenges, reducing market attractiveness for investors during this volatile period[116] Strategic Initiatives - The company aims to maintain and strengthen relationships with reputable property developers to seize future opportunities[92] - The company continues to monitor foreign exchange risks and aims to effectively manage cash flow and capital commitments to meet current and future cash needs[127] - The company plans to focus on sustainable building materials in line with government green technology initiatives, aiming to enhance energy efficiency and reduce carbon footprints[155] - The company has established a sustainable development policy to create sustainable value across economic, environmental, and social dimensions[156] Corporate Governance - The company has adopted measures to ensure effective internal audit functions despite not having a dedicated internal audit department[144] - The board does not recommend the payment of a final dividend for the year ending March 31, 2024, amounting to HKD 3,594,000[163] - The annual general meeting is scheduled for September 6, 2024, with notifications to be sent to shareholders in due course[164] - The company will temporarily suspend share registration from September 3 to September 6, 2024, to determine eligible shareholders for the annual general meeting[165]

Company Overview - The company's principal activity is investment holding, with subsidiaries engaged in importing, wholesale, retail, and installation of architectural builders' hardware, bathroom, kitchen collections, and furniture, as well as providing interior design services and project management in Hong Kong and the PRC [10]. Economic Environment - The global economic growth is projected to decline from approximately 5.0% in 2022 to 2.2% in 2023 due to the Russia-Ukraine conflict and US-China tensions, impacting consumer confidence and demand for goods [13]. - China's GDP experienced a period-to-period growth of 5.5% in the first half of 2023, with growth rates of 4.5% and 6.3% in the first and second quarters, respectively [14]. - The decline in foreign direct investment in China reflects ongoing geopolitical tensions, alongside a slowdown in the real estate market and rising price pressures, which dampen economic growth and consumer confidence [14]. - The US-China relationship significantly influences Hong Kong's economic performance, with potential trade restrictions impacting export opportunities and the re-export industry [21]. - Disruptions in trade policies or tariffs between the US and China can directly affect Hong Kong's economy, influencing trade volumes and market stability [22]. - The ongoing geopolitical challenges and economic uncertainties present formidable obstacles to global trade and investment flows, affecting business confidence in Hong Kong [12]. Company Strategy and Outlook - The company is focused on navigating external challenges while balancing growth objectives with necessary structural reforms in the current economic landscape [16]. - The company's future outlook remains contingent on its ability to adapt to the evolving economic environment and external pressures [19]. - The company aims to adapt its business strategy by collaborating with key stakeholders and diversifying its product range to better meet evolving market demands [79]. - The company is adjusting its business strategy to adapt to the changing real estate market, focusing on collaboration with key stakeholders and diversifying its product offerings [82]. - The company anticipates a decline in turnover from products for the secondary property market due to weak demand from potential homebuyers influenced by high-interest rates and market uncertainty [72]. Financial Performance - Revenue decreased by 8.5% compared to the previous year's equivalent period, while gross profit exhibited only a slight reduction of approximately 1.2% [33]. - The Group's total turnover for the six months ended September 30, 2023, was HK$214.0 million, a decrease of 8.5% compared to the same period last year (2022: HK$233.9 million) [45][49]. - Revenue from the architectural builders' hardware, bathroom collections, and others segment increased by 2.2% to HK$159.2 million (2022: HK$155.7 million) [48][51]. - Revenue from the kitchen collection and furniture segment decreased by 29.9% to HK$54.8 million (2022: HK$78.2 million) [49][52]. - The Group's operating profit was HK$12.4 million, representing a decrease of 39.2% from the same period last year (2022: HK$20.3 million) [50]. - Profit after tax approximated HK$8.4 million, a decrease of 45.6% compared to the corresponding period last year (2022: HK$15.5 million) [50]. - The current sluggish market conditions may adversely affect performance in the second half of the year, with challenges in securing new contracts [35]. Market Conditions - Total exports of goods in Hong Kong saw a year-on-year decline of 17.0% in real terms during the first half of 2023 [23]. - The Business confidence indicator dropped to 6 in Q3 from 15 in Q2, indicating a pessimistic outlook among enterprises [23]. - Residential property prices in Hong Kong fell by approximately 9.0% year-on-year in May 2023 [24]. - Only 55.0% of units in projects completed in the first half of 2023 were sold, lower than the five-year average sell-through rate of 78.0% [25]. - The primary market recorded 6,085 transactions in the first half of the fiscal year, a 16.7% decrease compared to last year [26]. - The secondary market saw 15,288 units traded, indicating a 20.8% reduction from the previous fiscal year [26]. - The Government collected only HK$3.38 billion in land revenue, approximately 4.0% of its HK$85 billion budget for land premiums for the 2023/24 fiscal year, a 75.1% drop from last year [32]. Financial Position - As of September 30, 2023, the current ratio was 1.9 and the quick ratio was 1.0, with cash and cash equivalents approximating HK$107.3 million [53][61]. - Inventories increased to HK$202.2 million (March 31, 2023: HK$144.9 million) due to accumulation of products pending delivery [54]. - The gearing ratio of the Group was 0.7% as of September 30, 2023 (March 31, 2023: net cash position) [55]. - Cash and cash equivalents decreased to HK$86,872,000 from HK$123,296,000, a decline of 29.5% [140]. - Net cash used in operating activities was HK$28,091,000, compared to a net cash generated of HK$78,895,000 in the same period last year [140]. - Total assets increased to HK$764,851,000 as of September 30, 2023, up from HK$740,573,000 as of March 31, 2023, representing a growth of 3.0% [137]. - Current assets rose to HK$423,732,000, a 7.9% increase from HK$392,543,000 at the end of the previous fiscal year [137]. - Total equity attributable to equity holders increased to HK$501,684,000, up from HK$496,715,000, reflecting a growth of 1.9% [138]. Shareholder Information - As of September 30, 2023, Mr. TSE Sun Wai, Albert holds 135,378,110 shares, representing 18.83% of the total issued share capital [101]. - Happy Voice Limited is a substantial shareholder with 91,976,507 shares, accounting for 12.80% of the issued shares [107]. - The total shareholding of Ms. Lim and Mr. Yeo in the Company is 45,152,000 shares, which includes direct and deemed shareholdings [107]. Employee and Operational Insights - The total staff cost for the period amounted to HK$30.9 million, slightly up from HK$30.7 million for the same period last year [113]. - The workforce as of September 30, 2023, was recorded at 135 employees, a decrease from 141 employees as of March 31, 2023 [113]. - The Group aims to enhance brand value by managing customer expectations and providing quality products and services [115]. - The Group has developed a dedicated sustainability policy to guide operations towards best practices in environmental protection and community investment [110]. - The Group's environmental policy focuses on minimizing pollution and conserving natural resources [110]. Financial Risks and Management - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk [159]. - There have been no changes in financial risk management controls or policies since the year ended March 31, 2023 [159]. - The interim financial information does not include all financial risk management disclosures required in the annual financial statements [159]. - Management is currently assessing the impact of new standards and amendments that are not yet effective, with no substantial changes anticipated at this stage [154]. Dividends and Share Transactions - The company has not declared an interim dividend for the six months ended September 30, 2023 [86]. - No shares were redeemed or purchased by the company or its subsidiaries during the six months ended September 30, 2023 [87]. - The company has not operated any share option schemes during the six months ended September 30, 2023, with no outstanding share options [88].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公 告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何 責任。 （股份代號：599） 中 期 業 績 公 告 截 至 二 零 二 三 年 九 月 三 十 日 止 六 個 月 怡 邦 行 控 股 有 限 公 司（「本 公 司」）董 事 會（「董 事 會」）欣 然 宣 佈 本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至 二 零 二 三 年 九 月 三 十 日 止 六 個 月（「本 期 間」）之 未 經 審核簡明綜合業績。 中期簡明綜合全面收益表 截至二零二三年九月三十日止六個月 未經審核 截至九月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 收益 4 213,973 233,893 銷售成本 (120,047) (138,974) ...

Financial Performance - Revenue for the year ended March 31, 2023, was HK$454.8 million, a decrease of 8.0% from HK$494.6 million in 2022[4] - Operating profit for the same period was HK$18.3 million, down 4.6% from HK$19.2 million in 2022[4] - Profit before income tax increased to HK$16.7 million, up 7.0% from HK$15.6 million in 2022[4] - Profit attributable to shareholders rose to HK$14.1 million, an increase of 18.4% compared to HK$11.9 million in 2022[4] - Basic earnings per share improved to HK2.22 cents, up from HK1.95 cents in the previous year[4] - Proposed final dividend per share is HK0.5 cents, reduced from HK1.0 cent in 2022[4] - The Group's total turnover for the financial year ended 31 March 2023 was HK$454.8 million, representing a decrease of 8.1% compared to the previous year[67] - Overall gross profit decreased by 1.6% to HK$180.6 million (2022: HK$183.5 million), with a gross profit margin increase to 39.7% from 37.1%[75] Economic Outlook - Hong Kong's economy contracted by 3.5% in 2022, but showed signs of recovery with a 2.7% growth in the first quarter of 2023[18] - The government forecasts economic growth for Hong Kong in 2023 to be between 3.5% and 5.5% in real terms[18] - The Government forecasts economic growth of 3.5% to 5.5% in real terms for 2023, driven by strong recovery in inbound tourism and domestic demand[60] - The nominal retail sales value for the first four months of 2023 increased by 19.9% compared to the same period in 2022[60] - The Chinese economy contracted by 4.2% year-on-year in Q4 2022, marking the fourth consecutive quarter of contraction, but expanded by 4.5% in Q1 2023[53] - Hong Kong's economy suffered a contraction of 3.5% last year due to the pandemic's impact on the Chinese economy and external factors like the US-China trade dispute[59] - Global trade volume in goods and services is forecast to grow by only 2.3% in 2023, significantly below pre-pandemic trends[50] Market Conditions - The high-interest rate environment is expected to threaten small businesses' operations and weaken consumer confidence, leading to reduced investment and retail activity[31] - The Hong Kong housing market is in recovery, with expectations of increased demand for residential units due to the opening of the China-Hong Kong border and the arrival of top talents[33] - The Group maintains a cautiously optimistic outlook for the Hong Kong real estate market in 2023, despite existing uncertainties and risks[34] - The demand for housing units in Hong Kong is expected to remain weak in 2023 due to external and local market conditions[111] Government Initiatives - The HKSAR government has launched the Top Talent Pass Scheme (TTPS) to attract talent, offering a two-year visa to eligible applicants[28] - The TTPS aims to develop green and sustainable finance and attract information technology enterprises to the Hong Kong-Shenzhen Innovation and Technology Park[28] - The HKSAR government introduced a Labour Importation Scheme to address acute manpower shortages in the construction and transport sectors[26] - The Hong Kong government's Consumption Voucher Scheme 2023, valued at HK$5,000 per eligible resident, is expected to increase HK GDP by 0.6% in 2023[107] Company Strategy and Operations - The Group has successfully adapted to adverse market conditions, focusing on monitoring market trends and enhancing operational efficiency[35] - The Group aims to maintain and strengthen its working relationships in Hong Kong and PRC despite the challenging economic conditions[66] - The company aims to minimize operational costs and lower the debt-to-equity ratio in response to market challenges[112] - The company will continue to adjust its strategies based on its strengths and relationships with established developers[112] Shareholder Information - The final dividend recommended for the year ended March 31, 2023, is HK$0.5 per share, totaling HK$3,594,000, down from HK$6,006,000 the previous year[118] - Distributable reserves of the company as of March 31, 2023, amounted to HK$63,253,000, an increase from HK$58,840,000 in 2022[127] - The company has not redeemed any shares or purchased/sold any listed securities during the year[126] - There are no pre-emptive rights for existing shareholders under the Articles of Association[132] Management and Governance - The Group's management team is experienced and closely involved in daily operations, ensuring quick adaptation to changes in the operating environment[200] - All Independent Non-executive Directors have confirmed their independence in accordance with Rule 3.13 of the Listing Rules[172] - No Director was interested in any competing business during the year that required disclosure under the Listing Rules[173] - Each Director has entered into a service contract with the company for a term of 12 months, subject to re-election by shareholders at annual general meetings[164]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完備性亦不發表任何聲明，並明確表示概不會就因本公 告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何 責任。 （股份代號：599） 經 審 核 全 年 業 績 公 告 截 至 二 零 二 三 年 三 月 三 十 一 日 止 年 度 怡 邦 行 控 股 有 限 公 司（「本 公 司」）董 事 會（「董 事 會」）欣 然 宣 佈 本 公 司 及 其 附 屬 公司（統稱「本集團」）截至二零二三年三月三十一日止年度的綜合財務業績如下： 綜合全面收益表 截至二零二三年三月三十一日止年度 二零二三年 二零二二年 附註 千港元 千港元 收益 2 454,764 494,592 銷售成本 3 (274,158) (311,096) 毛利 180,606 183,496 其他收入 2 782 2,005 其他收益╱（虧損），淨額 2 1,003 (1,361) 金融及合約資產之減值虧損淨額 (2,431) (94) ...

Financial Performance - For the six months ended September 30, 2022, the Group's total revenue was HK$233.9 million, a decrease of 7.1% compared to the previous first half-yearly period[33]. - Gross profit increased by 7.9% compared to the last corresponding period, primarily due to the depreciation of the Euro against HKD[31]. - Operating profit grew by 21.6% during this challenging period, despite the overall decrease in revenue[31]. - Profit after tax increased by 35.5% to approximately HK$15.5 million, up from HK$11.4 million in the previous year[39]. - Revenue from the architectural builders' hardware, bathroom collections, and others segment decreased by 26.1% to HK$155.7 million from HK$210.7 million[36]. - Revenue from the kitchen collection and furniture segment increased by 90.1% to HK$78.2 million, compared to HK$41.2 million in the same period last year[38]. - The Group's gross profit margin improved to 40.6% from 34.9% in the previous year[36]. - Earnings per share increased to HK2.6 cents, compared to HK1.9 cents in the previous year, representing a 36.8% growth[146]. - Total comprehensive income for the period attributable to equity holders of the Company was HK$14,838,000, up 28.5% from HK$11,557,000 in 2021[146]. Economic Environment - The Hong Kong government revised the real GDP growth forecast for 2022 down to negative 3.2% after the economy contracted by 4.5% year-on-year in the third quarter of 2022[23]. - The strengthening of the US dollar has macroeconomic implications, with the dollar appreciating 22% against the Japanese Yen, 15% against GBP, and 13% against the Euro since the start of the year[22]. - Supply chain challenges and geopolitical instability are significant risks to global growth over the next 12 months[25]. - The overall market environment remains challenging, with GDP growth estimated to decline by 3.2%[36]. - The International Monetary Fund projected global growth to slow from 6.0% in 2021 to 3.2% in 2022 and further to 2.7% in 2023[53]. - The PRC government acknowledged it was unlikely to meet its original 5.5% growth target for the year due to economic disruptions[54]. - The ongoing COVID-19 pandemic and geopolitical tensions are contributing to economic instability, affecting consumer sentiment and asset values[64]. - The rising inflation and tightening monetary policies in major economies are increasing the risk of declining global demand and asset values[64]. Strategic Initiatives - The Group plans to continue observing market trends and adjusting strategies accordingly to navigate the adverse market environment[32]. - The Group's flexibility will facilitate optimal operation in changing business conditions[32]. - The Group aims to leverage its established network to explore new opportunities for future development while maintaining operational efficiency for sustainability[72]. - The Group will continue to monitor changes in the business environment to adapt its strategies accordingly[72]. - The company plans to closely monitor market trends and adjust strategies accordingly to navigate the changing business conditions[36]. Financial Position - As of September 30, 2022, the current ratio and quick ratio were 1.9 and 1.3, respectively, with cash and cash equivalents approximating HK$168.0 million[46]. - Inventories increased to HK$130.1 million, up from HK$115.4 million as of March 31, 2022[46]. - Trade and other receivables decreased to HK$133.6 million from HK$154.7 million, primarily due to timing differences in product deliveries and collections[46]. - The Group's interest-bearing borrowings increased to HK$44.5 million as of September 30, 2022, compared to HK$42.1 million as of March 31, 2022[46]. - Total assets as of September 30, 2022, amounted to HK$749,437,000, an increase from HK$702,224,000 as of March 31, 2022[149]. - Total liabilities increased to HK$227,293,000 from HK$185,709,000, indicating a rise in financial obligations[154]. Capital Management - The Group's Board has determined the need for additional funding to cope with uncertainties and support business objectives after reviewing cash flow and capital requirements for the next two years[69]. - The Board concluded that a rights issue is the best way to raise capital without incurring additional high-interest debt, allowing current shareholders to increase their stake at a reduced price[70]. - The company proposed a rights issue of one Rights Share for every four existing shares at a subscription price of HKD0.192, aiming to issue a total of 150,150,000 Rights Shares[77]. - The estimated net proceeds from the rights issue are approximately HKD27.5 million, which will be allocated as follows: HKD15.0 million for renovation costs of a new showroom and warehouse, HKD9.9 million for bank loan repayment, and HKD2.6 million for general working capital[77]. Governance and Compliance - The Board of Directors consists of eight members, including five executive directors and three independent non-executive directors, ensuring governance compliance[123]. - The Company has maintained the prescribed public float under the Listing Rules, confirming compliance with regulatory requirements[134]. - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's accounting policies and discussed the effectiveness of risk management and internal controls[134]. - The Company does not currently have an internal audit department but the Board is responsible for risk management and internal control systems[125]. Sustainability Efforts - The company has developed a dedicated sustainability policy focusing on business growth, environmental protection, and community investment[109]. - The company aims to minimize pollution and protect the environment by conserving natural resources and reducing energy use[110]. - The Group has established a dedicated environmental and social policy to align sustainability expectations with suppliers and subcontractors, focusing on legal compliance, anti-corruption, and environmental protection[113]. - The Group actively promotes environmental awareness among employees and encourages the implementation of eco-friendly principles[114].

Financial Performance - Revenue for the year ended March 31, 2022, was HK$494.6 million, an increase of 17.1% compared to HK$422.5 million in 2021[11] - Profit attributable to shareholders for the same period was HK$11.9 million, up from HK$10.8 million, representing an increase of 10.4%[11] - Basic earnings per share increased to HK1.98 cents from HK1.79 cents, reflecting a growth of 10.6%[11] - The net asset value as of March 31, 2022, was HK$470.5 million, compared to HK$461.2 million in the previous year, indicating a growth of 2.8%[11] - Operating profit for the year was HK$19.2 million, an increase of 14.3% from HK$16.7 million in 2021[11] - The overall gross profit of the Group amounted to HK$183.5 million, representing an increase of 15.7% from the previous year[76] - The overall gross profit margin slightly decreased to 37.1% from 37.5%[76] - The Group's operating profit was HK$19.2 million, representing an increase of 14.4% from the prior year[77] - Administrative expenses and distribution costs increased by 10.7% to HK$164.9 million, reflecting efforts in controlling selling expenses[77] - The Group's distributable reserves as of March 31, 2022, amounted to HK$58,840,000, down from HK$64,101,000 in 2021[111] Dividends - The company declared an interim dividend of HK0.5 cents per share and proposed a final dividend of HK1 cent per share[11] - A final dividend of HK$0.01 per share is recommended for the year ended March 31, 2022, totaling HK$6,006,000, an increase from HK$3,003,000 in the previous year[108] - The payment of the final dividend is scheduled for October 12, 2022, pending approval at the AGM[108] Economic Outlook - The market sentiment showed gradual improvement post-COVID-19 pandemic, although recovery is expected to be slow due to potential future outbreaks[27] - The actual GDP growth forecast for Hong Kong in 2022 was revised down to 1%-2% due to the impact of the fifth wave of COVID-19[28] - Global uncertainties, including geopolitical conflicts and rising commodity prices, are expected to dampen consumer confidence and market sentiment[28] - The Hong Kong economy is projected to recover in the second half of 2022 due to the government's new Consumption Voucher Scheme, Employment Support Scheme, and Temporary Unemployment Relief Scheme, which are expected to generate increased customer demand in retail and catering sectors[29][32] - Geopolitical tensions, rising commodity prices, inflation, and interest rate hikes are potential risks that may undermine economic recovery efforts in Hong Kong[37][41] - The economic growth forecast for Hong Kong has been revised down to 1%-2% for the year due to the impact of COVID-19 and geopolitical circumstances[99] - The Group's economic growth forecast for the year has been revised down from 2%-3.5% to 1%-2% due to various external factors including the COVID-19 pandemic and geopolitical tensions[101] Market Conditions - The residential market in Hong Kong saw a decline in the first quarter of 2022, with transaction volumes rebounding in May 2022 after the Omicron outbreak was brought under control[30][37] - The GDP of Hong Kong contracted by 4.0% in real terms in Q1 2022, following a 4.7% increase in Q4 2021, primarily due to the severe impact of the fifth wave of COVID-19[50][52] - The number of residential property transactions in Hong Kong plunged by over 30% compared to the same period last year due to market uncertainties[59] Business Strategy - The company is focused on navigating challenges posed by the pandemic and global economic conditions while seeking opportunities for growth[27] - The company is exploring new business opportunities by leveraging its experience and relationships with reputable property developers[39][41] - The Group plans to cautiously explore new growth opportunities and monitor external factors such as geopolitical tensions and supply chain disruptions[100] - The Group will continue to explore new growth opportunities and acquire suitable properties amidst ongoing market challenges[101] - The Group aims to maintain a robust and flexible structure to navigate market challenges and capitalize on growth opportunities[101] Financial Position - The current and quick ratios for the company are 2.0 and 1.4, respectively, indicating stable liquidity compared to the previous year[38][41] - Cash and cash equivalents were approximately HK$104.2 million as of March 31, 2022 (2021: HK$103.0 million), maintaining a current ratio of 2.0[82] - Inventories decreased to HK$115.4 million (2021: HK$142.5 million), while trade and other receivables increased to HK$154.7 million (2021: HK$99.0 million)[83] - The Group's interest-bearing borrowings reduced to HK$42.1 million (2021: HK$66.6 million) as of March 31, 2022, indicating a net cash position[83] Corporate Governance - Each Director, including Independent Non-executive Directors, has entered into a service contract for a term of 12 months, subject to re-election by shareholders at annual general meetings[137] - The Board considers that all Independent Non-executive Directors are independent in accordance with Rule 3.13 of the Listing Rules[149] - The Company has received confirmations of independence from each of its Independent Non-executive Directors[149] - The Company has an insurance cover in place to protect Directors against potential costs and liabilities arising from claims brought against the Group[149] - The Group has complied with the requirements under the Listing Rules, Companies Ordinance, SFO, and Cayman Islands Companies Act during the year[192] Environmental Commitment - The Group is committed to minimizing pollution and protecting the environment by conserving natural resources and reducing energy use and waste[200]

Financial Performance - For the six months ended September 30, 2021, the Group's total turnover was HK$251.9 million, representing an increase of 12.9% compared to the previous first half-yearly period [21]. - The Company reported a moderate increase in sales performance during the period, despite challenges posed by the pandemic [19]. - Overall turnover of the Group increased by 12.9% to HK$251.9 million from HK$223.0 million in 2020 [29]. - Gross profit increased by 15.5% to HK$88.0 million compared to HK$76.2 million in 2020 [29]. - Operating profit was HK$16.7 million, representing a 30.7% increase from HK$12.8 million in 2020 [30]. - Profit after tax approximated HK$11.4 million, which increased by 34.1% from HK$8.5 million in 2020 [30]. - Revenue from the architectural builders' hardware, bathroom collections, and others segment increased by 23.4% to HK$210.7 million compared to HK$170.7 million in 2020 [28]. - Revenue from the kitchen collection and furniture segment decreased by 21.4% to HK$41.2 million compared to HK$52.3 million in 2020 [28]. - Earnings per share for the period were HK1.9 cents, compared to HK1.4 cents in the same period last year, reflecting a 35.7% increase [122]. - The total comprehensive income for the period attributable to equity holders of the Company was HK$11,557,000, up from HK$8,910,000 in 2020, marking a 30.5% increase [122]. Market Conditions - The residential property market was supported by stable user demand, with the number of private housing units completed expected to be close to 20,000 units per year from 2021 to 2025, of which small-sized flats would account for approximately 40% [19]. - The housing market may remain robust due to supply shortages and strong demand for residential units in the near term [58]. - The Government plans to provide about 350 hectares of land for 330,000 public housing units over the next 10 years to meet an estimated demand of 301,000 units [10]. - The Northern Metropolis Development Strategy aims to provide approximately 350,000 residential units and an additional 165,000 to 186,000 units from 600 hectares of land [50]. - The Government's new housing strategy envisions making available one million housing units in the next 20 to 25 years, which represents 34% of the current total housing stock of 2.94 million units [51]. Operational Strategy - The Company has managed to adapt to the adverse business environment caused by strict quarantine requirements for inbound travel in Hong Kong, maintaining operational flexibility [17]. - The Group plans to continue closely observing market trends and adjusting strategies accordingly to capitalize on its strengths in the ever-changing business conditions [19]. - The Company aims to facilitate optimal operations by remaining flexible and responsive to market changes [19]. - The management discussion emphasized the importance of adapting to the evolving business landscape while maintaining a focus on core activities [20]. - The company will closely monitor the development of different housing categories to align its business strategies with the needs of various income groups in Hong Kong [57]. Financial Position - Current ratio and quick ratio remained stable at 2.0 and 1.2, respectively [35]. - Gearing ratio decreased to 6.8% from 7.4% as of March 31, 2021 [37]. - Cash and cash equivalents approximated HK$84.4 million as of September 30, 2021, down from HK$103.0 million as of March 31, 2021 [35]. - Total assets increased to HK$712,640,000 as of September 30, 2021, compared to HK$702,678,000 as of March 31, 2021, reflecting a growth of approximately 1.4% [125]. - Total equity rose to HK$469,786,000, up from HK$461,232,000, indicating an increase of about 1.2% [125]. - Current assets amounted to HK$370,373,000, a rise from HK$346,453,000, representing an increase of approximately 6.9% [125]. - Total liabilities were reported at HK$187,007,000, compared to HK$242,854,000, indicating a decrease of about 22.9% [128]. Employee and Corporate Governance - As of September 30, 2021, the total staff cost amounted to HK$30.6 million, an increase from HK$27.0 million for the same period in 2020 [101]. - The workforce was recorded at 148 employees, a slight decrease from 149 employees as of March 31, 2021 [101]. - The company is focused on understanding customer needs and empowering employees to provide optimal recommendations [60]. - The company emphasizes the importance of staff quality and commitment for long-term growth and success [102]. - The Company confirmed compliance with the Model Code for Securities Transactions by Directors throughout the six months ended September 30, 2021 [118]. Sustainability and Social Responsibility - The company has developed a dedicated sustainability policy to enhance business growth and environmental protection [98]. - The group aims to minimize pollution and conserve natural resources as part of its environmental strategy [99]. - The company is committed to providing equal opportunities and a healthy workplace for its employees [102].

Financial Performance - Revenue for the year ended March 31, 2021, was HK$422.5 million, a decrease of 17.2% from HK$510.4 million in the previous year[10] - Profit attributable to shareholders for the same period was HK$10.8 million, down 4.9% from HK$11.3 million in the prior year[10] - Basic earnings per share decreased to HK1.79 cents from HK1.89 cents, reflecting a decline of 5.3%[10] - Operating profit for the year was HK$16.7 million, down 24.3% from HK$22.1 million in the previous year[10] - Overall gross profit decreased by 23.3% to HK$158.6 million from HK$206.7 million in the previous year, with gross profit margin declining to 37.5% from 40.5%[61] - Revenue from the architectural builders' hardware, bathroom collections and others segment decreased by 17.2% to HK$322.3 million compared to HK$389.4 million in 2020[59] - Revenue from the kitchen collection and furniture segment also decreased by 17.2% to HK$100.2 million from HK$121.0 million in 2020[60] - Cash and cash equivalents increased to approximately HK$103.0 million from HK$83.4 million in 2020[67] - The gearing ratio increased to 7.4% from 1.1% in 2020, with interest-bearing borrowings rising to HK$66.6 million from HK$10.7 million[67] - The Group's total staff costs, including Directors' emoluments, amounted to HK$57,330,000 for the year ended March 31, 2021, compared to HK$75,151,000 in 2020[188] Dividends - The company declared an interim dividend of HK0.5 cents per share, reduced from HK1.0 cent in the previous year[10] - A final dividend of HK$0.5 cents per share is recommended for the year ended March 31, 2021, totaling HK$3,003,000, consistent with the previous year[92] - The company declared an interim dividend of HK$0.5 cents per share for the six months ended September 30, 2020, totaling HK$3,003,000, down from HK$6,006,000 the previous year[91] Economic Outlook - The Hong Kong Government forecasts a GDP growth of 3.5%-5.5% for 2021, indicating a potential recovery in the economy[31] - The Hong Kong Government forecasts a GDP growth of 3.5% to 5.5% for 2021, despite ongoing challenges from the COVID-19 pandemic and geopolitical tensions[34] - Hong Kong's GDP is expected to grow between 3.5% to 5.5% in 2021, with an unemployment rate around 6%[77] - The residential property market in Hong Kong is expected to see stable to modest increases due to low interest rates and strong demand[84] - The government’s commitment to increasing land supply may help citizens acquire housing more quickly in the long term[84] - The retail industry is anticipated to face challenges due to weak consumer sentiment, particularly in the luxury sector[84] Challenges and Responses - The company acknowledges the challenges posed by the COVID-19 pandemic and geopolitical tensions affecting business operations[29] - The gradual rollout of COVID-19 vaccinations is expected to improve consumption sentiment, although recovery may be uneven due to new variants[30] - Government subsidies and rent concessions have provided support during the challenging business environment[29] - The company is closely monitoring external factors impacting operations, including supply chain strains and raw material price increases due to COVID-19[86] - The geopolitical situation and economic stimulus measures are expected to contribute to ongoing currency fluctuations, affecting procurement costs[81] Management and Governance - The company is responsible for the overall management and strategic planning, led by its Chairman, Mr. TSE Sun Fat, who has over 30 years of experience in the building materials trading industry[120] - The Managing Director, Mr. TSE Sun Po, has been with the group since 1979 and oversees the retail business, contributing to strategic planning and management[120] - The company has a strong management team with extensive experience in brand building and new product development, led by Vice Chairman Mr. TSE Sun Wai[120] - The company emphasizes the importance of strategic planning and management in its operations[127] - The company maintains a commitment to transparency and accountability in its governance practices[139] Employee and Operational Metrics - The workforce as of March 31, 2021, was recorded at 149 employees, a decrease from 152 employees in 2020[188] - The lease payment for warehouse rental to Negotiator Consultants Limited was approximately HK$3,826,000 for the year ended March 31, 2021[178] - The Group's management team is experienced and closely involved in daily operations, ensuring adaptability to changes in the operating environment[188] Shareholding and Directors - As of March 31, 2021, the interests of Mr. TSE Sun Fat, Henry in the company amounted to 37,197,294 shares[161] - Mr. TSE Sun Wai, Albert and Mr. TSE Hon Kit, Kevin held a combined total of 108,302,488 shares, with Mr. TSE Sun Po, Tony holding 43,659,542 shares[161] - The board confirmed that all Independent Non-executive Directors are independent according to the Listing Rules[150] - There were no competing business interests disclosed by any Director during the year[151] - The company has arranged insurance coverage to protect Directors against potential costs and liabilities arising from claims[151] Subsidiaries and Business Operations - The Group's subsidiaries are engaged in importing, wholesale, retail, and installation of architectural builders' hardware and furniture in Hong Kong and the PRC[44] - The largest supplier accounted for 20% of total purchases, while the aggregate of the five largest suppliers represented 61% of total purchases[200] - The largest customer contributed 5% to total sales, and the aggregate of the five largest customers accounted for 20% of total sales[200]

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].