Financial Performance - Revenue decreased by approximately 26.2% to HKD 114.6 million for the year ended March 31, 2021, compared to HKD 155.2 million for the previous year[11]. - The loss attributable to owners of the company reduced from approximately HKD 32.4 million to HKD 5.0 million for the same period[7]. - Basic loss per share improved from HKD 1.06 to HKD 0.15[7]. - Gross profit increased by approximately 155.9% to HKD 17.4 million, with a gross profit margin rising from 4.4% to 15.1%[12]. - Other income decreased from approximately HKD 2.6 million to HKD 1.9 million, primarily due to a reduction in warehousing income[13]. - The total retail sales value in Hong Kong decreased by approximately 13.9% year-on-year, from HKD 386.2 billion to HKD 332.7 billion[10]. - Wine sales dropped from approximately HKD 128.6 million to HKD 99.3 million during the fiscal year[11]. - The company did not recommend the payment of a final dividend for the year ended March 31, 2021[7]. Cost Management - Promotional, sales, and distribution expenses decreased by approximately 17.5% from HKD 16.0 million for the year ended March 31, 2020, to HKD 13.2 million for the year ended March 31, 2021[15]. - Administrative expenses decreased by approximately 44.2% from HKD 19.0 million for the year ended March 31, 2020, to HKD 10.6 million for the year ended March 31, 2021[15]. - As of March 31, 2021, the group had 29 full-time employees and 1 part-time employee, with employee costs amounting to approximately HKD 7.2 million, a decrease from HKD 14.3 million in 2020[39]. Financial Position - The current ratio improved from approximately 3.30 in 2020 to approximately 4.26 in 2021, primarily due to a decrease in trade receivables and bank borrowings[20]. - The company's total assets and liabilities as of March 31, 2021, were HKD 162.5 million and HKD 38.1 million, respectively[20]. - The company's bank balances and cash totaled approximately HKD 6.9 million as of March 31, 2021, compared to HKD 5.7 million in 2020[20]. - The debt-to-equity ratio improved from 32.2% in 2020 to 18.3% in 2021, indicating a stronger financial position[20]. Market Conditions - The global economic growth is projected to be 6% in 2021, with a decline to 4.4% in 2022, reflecting additional fiscal support from major economies[41]. - China's GDP is expected to grow by 2.1% in 2020, with a potential increase of 8% or more in 2021 due to a low base effect[45]. - The retail sales in China are anticipated to decrease by 4.4% for the year, while exports are expected to grow by approximately 1.8%[45]. - The trade disputes between the US and China are expected to intensify, impacting the external environment and internal economic pressures in China[46]. - The company anticipates fierce competition in the retail sector as consumers remain the main driver of economic growth in China[46]. Corporate Governance - The company has adopted high standards of corporate governance and complies with the corporate governance code[103]. - The audit committee consists of three independent non-executive directors who reviewed the audited consolidated results for the year ending March 31, 2021[96]. - The board of directors held a total of 7 meetings during the fiscal year ending March 31, 2021, with an attendance rate of 100% for all directors[106]. - The company has adopted a board diversity policy to ensure a diverse range of skills and experiences among board members[110]. - The chairman and CEO roles were separated, with Zhang Jun Tao assuming the CEO position after the resignation of Liang Zi Jian on June 10, 2021[112]. Environmental, Social, and Governance (ESG) - The company emphasizes sustainable development as a key to achieving ongoing success and incorporates environmental, social, and governance (ESG) aspects into its risk management system[150]. - The ESG report covers seven business segments, including red wine, white wine, and spirits, with plans to expand disclosure as data collection systems mature[152]. - The company has established various communication platforms with stakeholders, including annual reports and shareholder meetings, to enhance engagement[146]. - The company recognizes the importance of employee welfare, career development, and a safe working environment as key concerns for its employees[158]. - Total greenhouse gas emissions decreased by approximately 38.96% from about 155.38 tons of CO2 equivalent in 2020 to about 94.84 tons in 2021[170]. Risk Management - The company has established a risk management system that did not identify any significant risks during the risk assessment for the fiscal year ending March 31, 2021[128]. - The internal control system is aligned with the COSO 2013 framework, ensuring operational effectiveness and compliance with applicable laws[130]. - The audit committee continuously reviews the internal control system and provides opinions to the board regarding its adequacy, including resources and qualifications of staff[135]. - The company confirmed that there are no significant uncertainties affecting its ability to continue as a going concern[127]. Employee Welfare - The company has implemented various measures to protect employees and customers during the COVID-19 pandemic, including mandatory mask-wearing and temperature checks[200]. - Employee compensation is evaluated annually based on performance, efficiency, and the company's financial condition, ensuring competitive salary levels[193]. - New employees receive fire and safety training on their first day, and specific positions require certification before employment[199].

[Financial Highlights](index=3&type=section&id=Financial%20Highlights) [Financial Highlights](index=3&type=section&id=Financial%20Highlights) For the six months ended September 30, 2020, the Group recorded a loss after tax of approximately **HKD 5.4 million**, significantly narrowed from **HKD 11.7 million** in the same period last year, with basic loss per share at **0.16 HK cents**, and the Board does not recommend an interim dividend 2020 Interim Financial Performance Overview | Metric | For the Six Months Ended September 30, 2020 | For the Six Months Ended September 30, 2019 | | :--- | :--- | :--- | | Loss After Tax | Approx. HKD 5.4 million | Approx. HKD 11.7 million | | Basic Loss Per Share | 0.16 HK cents | 0.41 HK cents | - The Board does not recommend the payment of an interim dividend for the six months ended September 30, 2020[4](index=4&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) During the reporting period, Group revenue decreased by **44.4%** year-on-year to **HKD 38.0 million**, and gross profit decreased by **38.8%** to **HKD 5.9 million**; however, significant reductions in promotion, selling, and administrative expenses narrowed operating loss from **HKD 11.1 million** to **HKD 4.6 million**, and loss for the period from **HKD 11.7 million** to **HKD 5.4 million** Key Income Statement Data | Metric | For the Six Months Ended September 30, 2020 (HKD '000) | For the Six Months Ended September 30, 2019 (HKD '000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 37,983 | 68,341 | -44.4% | | Gross Profit | 5,916 | 9,671 | -38.8% | | Operating Loss | (4,578) | (11,081) | Loss narrowed by 58.7% | | Loss for the Period | (5,412) | (11,738) | Loss narrowed by 53.9% | | Basic Loss Per Share | (0.16 HK cents) | (0.41 HK cents) | - | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of September 30, 2020, the Group's total assets were approximately **HKD 193 million** and net assets approximately **HKD 135 million**, a slight decrease from March 31, 2020, with current assets maintained at **HKD 173 million** and net current assets at **HKD 118 million**, indicating robust short-term solvency Key Statement of Financial Position Data | Metric | September 30, 2020 (HKD '000) | March 31, 2020 (HKD '000) | | :--- | :--- | :--- | | Non-current Assets | 20,049 | 23,920 | | Current Assets | 172,735 | 173,283 | | Current Liabilities | 55,107 | 52,459 | | Net Current Assets | 117,628 | 120,824 | | Net Assets | 134,744 | 140,156 | [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of September 30, 2020, total equity attributable to owners of the Company was **HKD 134.7 million**, a decrease of **HKD 5.4 million** from **HKD 140.2 million** at the beginning of the period, primarily due to the loss recorded during the period - As of September 30, 2020, total equity was **HKD 134,744 thousand**, a decrease of **HKD 5,412 thousand** from **HKD 140,156 thousand** as of April 1, 2020, primarily due to the loss for the period[8](index=8&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) During the reporting period, the Group's cash flow from operating activities significantly improved from a net outflow of **HKD 9.2 million** in the prior period to a net inflow of **HKD 14.5 million**, with cash and cash equivalents increasing to **HKD 13.6 million** at period-end Key Cash Flow Statement Data | Metric | For the Six Months Ended September 30, 2020 (HKD '000) | For the Six Months Ended September 30, 2019 (HKD '000) | | :--- | :--- | :--- | | Net Cash Generated From / (Used In) Operating Activities | 14,487 | (9,165) | | Net Cash Used In Investing Activities | (356) | (577) | | Net Cash (Used In) / Generated From Financing Activities | (6,289) | 2,557 | | Net Increase / (Decrease) in Cash and Cash Equivalents | 7,842 | (7,185) | | Cash and Cash Equivalents at End of Period | 13,559 | 1,692 | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The financial statement notes indicate the Group operates a single business segment, selling wine and spirits products in Hong Kong, with revenue primarily from red wine sales, which saw a significant year-on-year decline, and all revenue and major assets are located in Hong Kong, with no interim dividend recommended by the Board - The Group is principally engaged in the sale and distribution of quality wine and spirits products and wine accessories in Hong Kong, operating only a **single operating segment**[12](index=12&type=chunk)[15](index=15&type=chunk) Revenue Analysis by Product Category | Product Category | For the Six Months Ended September 30, 2020 (HKD '000) | For the Six Months Ended September 30, 2019 (HKD '000) | | :--- | :--- | :--- | | Red Wine | 33,314 | 62,188 | | White Wine | – | 1,403 | | Sparkling Wine | – | 1,294 | | Spirits | 4,501 | 2,664 | | Others | 168 | 792 | - The Board does not recommend the payment of an interim dividend for the six months ended September 30, 2020[23](index=23&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=16&type=section&id=Business%20Review%20and%20Outlook) Affected by the COVID-19 pandemic and the persistently weak Hong Kong retail market, the Group faced a highly challenging business environment, with revenue decreasing by **44.4%** year-on-year during the reporting period, primarily due to a significant reduction in red wine sales; looking ahead, the Group remains confident in the long-term demand in Hong Kong and China markets and will actively adjust strategies and seek diversification opportunities - The overall business environment remained highly unstable and challenging, impacted by factors such as the **COVID-19 pandemic**, **US-China trade disputes**, and a **weak Hong Kong retail market**[33](index=33&type=chunk)[34](index=34&type=chunk) - Group revenue decreased by **44.4%** to approximately **HKD 38.0 million**, primarily due to red wine sales decreasing from **HKD 62.2 million** in the prior period to **HKD 33.3 million**[33](index=33&type=chunk) - Future strategies include adjusting sales and marketing approaches and actively seeking new business opportunities to diversify operations and enhance long-term growth potential[34](index=34&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) The core characteristic of financial performance during this period was declining revenue but narrowing losses, with revenue and gross profit decreasing by **44.4%** and **39.2%** respectively due to deteriorating market conditions; however, successful cost control, including a combined reduction of approximately **HKD 6.7 million** in promotion, selling, distribution, and administrative expenses, significantly narrowed the loss for the period from **HKD 11.7 million** to **HKD 5.4 million** - Revenue decreased by **44.4%** from **HKD 68.3 million** to **HKD 38.0 million**; gross profit decreased by **39.2%** from **HKD 9.7 million** to **HKD 5.9 million**[36](index=36&type=chunk)[37](index=37&type=chunk) - Promotion, selling, and distribution expenses decreased by **22.9%** to **HKD 7.4 million**; administrative expenses decreased by **44.6%** to **HKD 5.1 million**, primarily due to reduced staff salaries and directors' emoluments[38](index=38&type=chunk) - Benefiting from cost control, the loss for the period attributable to owners of the Company narrowed from **HKD 11.7 million** in the prior period to **HKD 5.4 million**[42](index=42&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=18&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group's financial position remained robust, with a current ratio of **3.13 times** and a gearing ratio (total borrowings/equity) decreasing to **25.6%** as of September 30, 2020, and approximately **HKD 19.6 million** in bank and cash balances (including pledged deposits), indicating ample liquidity to meet operational needs Liquidity and Capital Structure Indicators | Metric | September 30, 2020 | March 31, 2020 | | :--- | :--- | :--- | | Current Ratio | 3.13 | 3.30 | | Gearing Ratio | 25.6% | 28.7% | | Bank and Cash Balances (including pledged) | Approx. HKD 19.6 million | Approx. HKD 11.8 million | - As of September 30, 2020, the Group pledged approximately **HKD 6.1 million** of bank balances as security for banking facilities[46](index=46&type=chunk) [Other Disclosures](index=19&type=section&id=Other%20Disclosures) During the reporting period, the Group's total number of employees slightly decreased, with staff costs significantly reduced by **58.7%** year-on-year to **HKD 3.3 million**; the company did not undertake any significant acquisitions, disposals, or share repurchases, and director and substantial shareholder interests were disclosed as required, with compliance to corporate governance codes - As of September 30, 2020, the Group had **34 employees**, with staff costs (including directors' emoluments) of approximately **HKD 3.3 million**, a significant decrease from **HKD 8.0 million** in the prior period[49](index=49&type=chunk) - During the reporting period, the Group did not undertake any significant acquisitions or disposals of subsidiaries, nor did it purchase, sell, or redeem any of the Company's securities[50](index=50&type=chunk)[57](index=57&type=chunk) - No share options were granted under the share option scheme for the six months ended September 30, 2020[56](index=56&type=chunk) - The Audit Committee has reviewed the Group's unaudited consolidated results for the six months ended September 30, 2020[67](index=67&type=chunk)

Financial Performance - Revenue decreased by approximately 9.2% from about HKD 171.0 million for the year ended March 31, 2019, to about HKD 155.2 million for the year ended March 31, 2020[5]. - The company reported a loss attributable to owners of approximately HKD 32.4 million for the year ended March 31, 2020, compared to a loss of approximately HKD 1.0 million for the year ended March 31, 2019[5]. - Basic loss per share increased from HKD 0.04 for the year ended March 31, 2019, to HKD 1.06 for the year ended March 31, 2020[5]. - Gross profit decreased by approximately 81.3% from about HKD 36.5 million for the year ended March 31, 2019, to about HKD 6.8 million for the year ended March 31, 2020[10]. - Gross profit margin fell from approximately 21.4% for the year ended March 31, 2019, to about 4.4% for the year ended March 31, 2020[10]. - The company's loss attributable to owners increased from approximately HKD 1.0 million for the year ended March 31, 2019, to approximately HKD 32.4 million for the year ended March 31, 2020, reflecting a significant decline in performance[15]. Expenses and Cost Management - Promotion, sales, and distribution expenses decreased by approximately 10.6% from about HKD 17.9 million for the year ended March 31, 2019, to about HKD 16.0 million for the year ended March 31, 2020[13]. - Administrative expenses decreased by approximately 4.0% from about HKD 19.8 million for the year ended March 31, 2019, to about HKD 19.0 million for the year ended March 31, 2020[13]. - The employee costs for the year ended March 31, 2020, were approximately HKD 14.3 million, down from HKD 17.4 million in 2019, reflecting a reduction in workforce from 49 to 35 full-time employees[37]. Market Conditions - The retail sales value in Hong Kong decreased by approximately 20.1% year-on-year, from about HKD 483.6 billion in March 2019 to about HKD 386.2 billion in March 2020[8]. - Global economy expected to contract by 3% in 2020 due to COVID-19, with a projected growth of 5.8% in 2021 as activities normalize[39]. - Hong Kong retail sales value dropped by 42.0% in March 2020 compared to March 2019, with total sales volume down by 43.8%[41]. Strategic Focus and Future Plans - The company plans to focus on developing its premium wine and spirits market despite the challenging market conditions[5]. - The company plans to implement strategic sales and marketing activities to expand its customer base and product offerings amid challenging market conditions[46]. - The company aims to become one of the leading premium wine retailers in Hong Kong by focusing on high-quality wine and spirits[46]. - The company is actively seeking new business opportunities to diversify its operations and enhance long-term shareholder value[47]. Financial Position and Ratios - The current ratio decreased from approximately 3.88 in 2019 to about 3.30 in 2020, primarily due to an increase in bank borrowings[17]. - As of March 31, 2020, the group had cash and bank balances totaling approximately HKD 5.7 million, down from HKD 8.9 million in 2019[17]. - The group's debt-to-equity ratio increased to approximately 32.2% in 2020 from 21.2% in 2019, indicating a rise in financial leverage[17]. Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the audited consolidated results for the year ending March 31, 2020[90]. - The company adopted the corporate governance code as per the listing rules, ensuring compliance and enhancing corporate performance[100]. - The board is responsible for overseeing the management and overall performance of the group, focusing on strategy formulation and financial performance monitoring[102]. - The company has implemented a board diversity policy to ensure a range of skills and experiences among board members[104]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report outlines the company's commitment to sustainable development and its integration into business strategies[145]. - The company has established a governance framework for ESG matters, with the board responsible for overseeing strategies and risk management[146]. - The ESG report covers seven business segments, including various types of wines and spirits, and aims to expand disclosure as data collection systems mature[147]. - The company emphasizes the importance of integrating ESG aspects into its risk management system for sustainable business success[145]. Employee Management and Welfare - The group conducts annual evaluations of employee compensation to maintain competitiveness, considering performance and market wage changes[185]. - The group provides mandatory MPF retirement benefits for employees in Hong Kong as per the relevant regulations[187]. - The company invests in employee training, offering up to HKD 20,000 for relevant courses to enhance skills and knowledge[195]. - In response to the COVID-19 pandemic, the company encouraged remote work and implemented health measures such as temperature checks and providing sanitization supplies[192].

Financial Performance - For the six months ended September 30, 2019, the company reported a loss of approximately HKD 11.7 million, compared to a profit of HKD 2.7 million for the same period in 2018[5]. - The basic loss per share for the six months ended September 30, 2019, was HKD 0.41, while the basic earnings per share for the same period in 2018 was HKD 0.11[5]. - Total revenue for the six months ended September 30, 2019, was HKD 68.34 million, a decrease of 25% from HKD 91.10 million in the same period of 2018[6]. - Gross profit for the same period was HKD 9.67 million, down from HKD 19.58 million in 2018, reflecting a decline in gross margin[6]. - The company reported a loss attributable to shareholders of HKD 11,738,000 for the six months ended September 30, 2019, compared to a profit of HKD 2,737,000 in the same period of 2018[28]. - The company’s revenue decreased by 25.0% to approximately HKD 68.3 million for the six months ended September 30, 2019, compared to HKD 91.1 million for the same period in 2018[40]. - The gross profit fell by 50.6% to approximately HKD 9.7 million for the six months ended September 30, 2019, down from HKD 19.6 million in the previous year[46]. Cash Flow and Assets - The net cash used in operating activities for the six months ended September 30, 2019, was HKD (9,165,000), compared to HKD (7,161,000) for the same period in 2018, indicating a decline in cash flow from operations[10]. - The cash and cash equivalents at the end of the period were HKD 1,692,000, down from HKD 2,548,000 at the end of the same period in 2018[10]. - The company reported a net cash outflow of HKD 7,185,000 for the six months ended September 30, 2019, compared to HKD 16,807,000 for the same period in 2018, indicating an improvement in cash management[10]. - The company’s total assets decreased to HKD 145.07 million as of September 30, 2019, from HKD 152.29 million as of March 31, 2019[7]. - The net current assets as of September 30, 2019, were HKD 102.86 million, down from HKD 112.99 million as of March 31, 2019[7]. - The total current assets were HKD 145.072 million as of September 30, 2019, compared to HKD 152.289 million on March 31, 2019[53]. - The company had bank deposits and cash balances totaling approximately HKD 6.7 million as of September 30, 2019, down from HKD 13.4 million on March 31, 2019[53]. Expenses and Liabilities - The company’s administrative expenses increased to HKD 9.24 million for the six months ended September 30, 2019, compared to HKD 7.19 million in the same period of 2018[6]. - Total employee costs, including director remuneration, increased to HKD 8,013,000, up from HKD 7,412,000 year-on-year, representing a rise of approximately 8.1%[26]. - Promotional, sales, and distribution expenses increased by 15.8% to approximately HKD 9.6 million for the six months ended September 30, 2019, from HKD 8.4 million in the previous year[47]. - The company’s lease liabilities increased by HKD 6,739,000 following the adoption of the new lease accounting standard[19]. - Bank borrowings increased to HKD 19,687,000 as of September 30, 2019, compared to HKD 13,506,000 as of March 31, 2019, indicating a rise of approximately 45.9%[33]. - The debt-to-equity ratio was approximately 26.1% as of September 30, 2019, up from 17.6% on March 31, 2019[53]. Dividends and Shareholder Information - The company did not recommend the payment of an interim dividend for the six months ended September 30, 2019[5]. - The company did not recommend an interim dividend for the six months ended September 30, 2019, consistent with the previous year[27]. - As of September 30, 2019, major shareholders included Mr. Zhang Jun Tao with a 26.42% stake and Mr. Liang Zi Jian with a 25.68% stake[62]. Market Conditions and Business Strategy - The overall business environment remains challenging due to local social unrest and global economic uncertainties, impacting the retail market in Hong Kong[41]. - The company aims to enhance sales and expand marketing channels to adapt to the weak retail market in Hong Kong[41]. - The retail sales value in Hong Kong decreased by approximately 7.3% from HKD 361.3 billion for the nine months ended September 30, 2018, to HKD 334.9 billion for the same period in 2019[40]. Compliance and Governance - The board confirmed that all directors complied with the standard code of conduct for securities trading during the six months ending September 30, 2019[69]. - The audit committee reviewed the group's unaudited consolidated performance for the six months ending September 30, 2019[76]. - The chairman did not attend the annual general meeting held on August 9, 2019, due to business commitments, which deviated from corporate governance code[70]. Other Information - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from April 1, 2019, which did not result in significant changes to the financial statements[17]. - The group has no significant foreign exchange risk as most sales, monetary assets, and liabilities are denominated in Hong Kong dollars[75]. - The group has no significant foreign currency hedging policies in place but will consider hedging foreign currency risks as needed[75]. - The company did not grant any share options under the share option scheme during the six months ended September 30, 2019[65]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ended September 30, 2019[66]. - There were no major acquisitions or disposals of subsidiaries or associates during the six months ended September 30, 2019[59]. - The group did not hold any significant investments or capital asset plans as of September 30, 2019[72].

Financial Performance - Revenue decreased by approximately 21.3% from HKD 217.2 million for the year ended March 31, 2018, to HKD 171.0 million for the year ended March 31, 2019[6]. - Profit attributable to owners shifted from a profit of HKD 6.6 million for the year ended March 31, 2018, to a loss of HKD 1.0 million for the year ended March 31, 2019[6]. - Basic earnings per share changed from a profit of HKD 0.28 to a loss of HKD 0.04[6]. - Gross profit decreased by approximately 16.4% from HKD 43.7 million to HKD 36.5 million, while gross margin slightly increased from 20.1% to 21.4%[9]. - The company reported a profit attributable to owners of approximately HKD 6.6 million for the year ended March 31, 2018, while for the year ended March 31, 2019, it recorded a loss attributable to owners of approximately HKD 1.0 million[14]. - The board of directors did not recommend a final dividend for the year ended March 31, 2019, consistent with no dividend declared for the previous year[15]. Expenses and Costs - Other income increased from HKD 1.0 million to HKD 1.6 million, primarily due to consignment and storage income from a newly acquired subsidiary[10]. - Promotion, sales, and distribution expenses rose by approximately 7.8% from HKD 16.6 million to HKD 18.0 million, attributed to increased rental and rates expenses for a newly leased warehouse[12]. - Administrative expenses increased by approximately 12.5% from HKD 17.7 million to HKD 19.9 million, mainly due to higher employee costs[12]. - Depreciation of property, plant, and equipment increased from HKD 1.9 million to HKD 2.9 million, largely due to renovations of a new leased warehouse[11]. - Employee costs for the year ended March 31, 2019, were approximately HKD 17.4 million, an increase from HKD 16.5 million in 2018, reflecting the growth in workforce from 41 full-time employees to 49[36]. Financial Position - As of March 31, 2019, current assets were HKD 152.29 million, an increase from HKD 127.99 million in 2018, while current liabilities rose slightly to HKD 34.25 million from HKD 33.42 million, resulting in a current ratio of 4.45 compared to 3.83 in 2018[16][17]. - The group had cash and bank balances totaling approximately HKD 8.9 million as of March 31, 2019, down from HKD 19.4 million in 2018, with pledged bank deposits of HKD 4.5 million compared to HKD 3.0 million in 2018[17]. - The debt-to-equity ratio was approximately 16.3% as of March 31, 2019, a decrease from 27.8% in 2018, indicating improved financial stability[17]. - As of March 31, 2019, the company's bank borrowings amounted to approximately HKD 13.5 million[56]. - The company's distributable reserves were approximately HKD 158.4 million as of March 31, 2019[57]. Market Trends and Strategies - The global economic growth is expected to slow down in 2019, with significant challenges for Hong Kong's economy due to reduced growth expectations from major trading partners[37]. - The company is actively exploring different sales channels and marketing activities to adapt to the challenging market environment[5]. - The company is implementing strategic sales and marketing activities to meet the increasing demand for wine in Hong Kong, including wine tasting events and innovative marketing initiatives[40]. - The company aims to become one of the leading premium wine retailers in Hong Kong through new sales and marketing strategies[40]. - The company is actively seeking new business opportunities to diversify its operations and enhance long-term shareholder value[41]. Corporate Governance - The board of directors held five meetings during the year, ensuring compliance with governance standards[86]. - The company adheres to high standards of corporate governance and has complied with the Corporate Governance Code for the year ending March 31, 2019[84]. - The audit committee consists of three independent non-executive directors and has reviewed the financial performance for the year ending March 31, 2019[78]. - The company has established a remuneration committee to review the remuneration policy based on performance and market practices[68]. - The independent non-executive directors confirmed their independence in accordance with the listing rules[63]. Risk Management and Internal Control - The risk management system identified no significant risks based on the risk assessment conducted for the year ending March 31, 2019[102]. - The internal control system complies with the COSO 2013 framework, ensuring operational effectiveness, reliability of financial reporting, and compliance with applicable laws[104]. - The internal audit function is independent and evaluates the effectiveness of the risk management and internal control systems[105]. - The Board reviewed the risk management and internal control systems annually, concluding they are effective and sufficient[107]. - The Audit Committee continuously reviews the internal control system and provides recommendations for improvements to the Board[109]. Environmental, Social, and Governance (ESG) - The company emphasizes the importance of sustainable development as a key to achieving ongoing success and incorporates ESG factors into its risk management system[122]. - The company has established effective management policies and internal control systems regarding environmental, social, and governance issues[130]. - The group has not violated any local environmental laws and regulations this year, including those related to emissions and waste management[135]. - The company aims to enhance its environmental performance by implementing waste management principles such as reduction, reuse, and recycling[134]. - The group actively implements energy-saving measures to reduce greenhouse gas emissions, including waste management and hazardous waste handling[137]. Employee Relations and Diversity - The company emphasizes the importance of employee diversity as a competitive advantage, ensuring thorough verification of applicants' identification to prevent child labor[158]. - Employee compensation is evaluated annually based on performance, efficiency, and the company's financial status, ensuring competitive salary levels[159]. - Employees are entitled to various types of leave, including annual leave, maternity leave, and sick leave, with a standard workweek of at least one day off[160]. - The company is committed to providing a safe and healthy work environment, adhering to occupational health and safety guidelines[163]. - The company offers training programs to enhance employee knowledge in safety standards and product expertise, including wine selection[167]. Audit and Compliance - The audit opinion is based on sufficient and appropriate audit evidence obtained[198]. - The audit was conducted in accordance with the Hong Kong Auditing Standards[198]. - The key audit matters identified are considered most important for the audit of the consolidated financial statements[199]. - The company has fulfilled its professional ethical responsibilities as per the Code of Ethics issued by the Hong Kong Institute of Certified Public Accountants[198]. - The audit report includes a section detailing the auditor's responsibilities regarding the audit of the consolidated financial statements[198].