Revenue Performance - Total revenue decreased by approximately RMB14.0 million or 5.3% from approximately RMB263.0 million in FY2018 to approximately RMB249.0 million in FY2019[24]. - Revenue from sale and distribution of merchandise decreased by approximately RMB27.2 million or 24.5% from approximately RMB111.2 million in FY2018 to approximately RMB83.9 million in FY2019[27]. - Revenue from the provision of interior design and engineering services increased by approximately RMB13.2 million or 8.7% from approximately RMB151.8 million in FY2018 to approximately RMB165.1 million in FY2019[21]. - Revenue from home improvement materials increased by 16.9% from RMB8.0 million in FY2018 to RMB9.4 million in FY2019[21]. - Revenue from furnishings decreased by approximately RMB2.2 million or 31.6% from RMB7.0 million in FY2018 to RMB4.8 million in FY2019[21]. - The Group's total revenue for the Reporting Period was approximately RMB249.0 million[24]. - Revenue from the sale and distribution of merchandise decreased by approximately RMB27.2 million or approximately 24.5% to approximately RMB83.9 million for the Reporting Period[29]. - Revenue from the provision of interior design and engineering services increased by approximately RMB13.2 million or approximately 8.7% to approximately RMB165.1 million for the Reporting Period[33]. Profitability and Gross Margin - Overall gross profit increased by approximately RMB6.0 million or approximately 20.9% to approximately RMB34.6 million for the Reporting Period, with gross profit margin rising from approximately 10.9% to approximately 13.9%[38]. - Gross profit margin for the sale and distribution of merchandise increased from approximately 10.2% to approximately 13.8%, driven by improvements in building materials and furnishings sales[39]. - Profit for the period increased by approximately RMB1.6 million or approximately 22.9% to approximately RMB8.6 million for the Reporting Period[48]. - Operating profit for the period was RMB 17.05 million, up 29% from RMB 13.14 million in the prior year[110]. - The total comprehensive income for the period was RMB 12.55 million, compared to RMB 13.17 million in the previous year[114]. Expenses and Financial Costs - Selling expenses dropped by approximately RMB2.9 million or approximately 33.7% to approximately RMB5.6 million for the Reporting Period[45]. - Administrative expenses increased by approximately RMB5.8 million or approximately 85.0% to approximately RMB12.5 million for the Reporting Period[46]. - Net finance costs increased by approximately RMB1.6 million or approximately 57.3% to approximately RMB4.4 million for the Reporting Period[47]. - Finance costs increased to RMB 4.38 million from RMB 2.82 million in the previous year, reflecting a rise in financial expenses[110]. Cash Flow and Liquidity - As of June 30, 2019, the Group's total cash and bank balances were approximately RMB 91.0 million, down from RMB 116.4 million as of December 31, 2018, primarily due to net cash used in operating activities of approximately RMB 98.8 million[62][66]. - The Group's current ratio decreased to 2.1 as of June 30, 2019, from 2.7 as of December 31, 2018, while the quick ratio also declined to 2.0 from 2.5[76][77]. - Cash and cash equivalents decreased to RMB 91,006,000 from RMB 116,391,000, a decline of 21.8%[120]. - Net cash used in operating activities for the six months ended June 30, 2019, was RMB 98,835,000, an increase of 106% compared to RMB 47,983,000 in the same period of 2018[126]. - Net cash generated from financing activities was RMB 92,353,000, significantly up from RMB 19,000 in the prior year, driven by proceeds from the issuance of convertible bonds amounting to RMB 89,725,000[126]. Capital Structure and Financing - The Group issued convertible bonds totaling HK$ 102,000,000 on June 25, 2019, with an initial conversion price of HK$ 1.0 per share, providing additional capital for project tendering and potential acquisitions[60][64]. - Total bank borrowings as of June 30, 2019, were approximately RMB 108.0 million, with a weighted average effective interest rate of 6.96% per annum[68][70]. - The gearing ratio as of June 30, 2019, was 21.2%, slightly up from 21.0% as of December 31, 2018[76][77]. - The company raised approximately HK$101.8 million through a rights issue of 172,800,000 shares at a subscription price of HK$0.60 per share, increasing total issued shares from 432,000,000 to 604,800,000[79]. - Approximately 90% of the net proceeds, around HK$91.6 million, was allocated for financing interior design and engineering projects in the PRC, while 10% (approximately HK$10.2 million) was designated for general working capital[79]. Accounting Policies and Changes - The Group applied HKFRS 16 from January 1, 2019, without restating comparatives for 2018[155]. - The Group's right-of-use assets as of January 1, 2019, were valued at RMB 22,153,000, which decreased to RMB 20,485,000 by June 30, 2019, reflecting depreciation charges of RMB 1,668,000[174]. - The Group changed its accounting policy for investment properties to a fair value model, which is expected to enhance comparability and reflect the true value of these assets[186]. - The fair value changes of investment properties will now be recognized in the consolidated statement of comprehensive income as they arise, a shift from the previous cost model[186]. Employee and Operational Metrics - The Group's employee count increased to 144 as of June 30, 2019, from 137 a year earlier, with total staff costs amounting to approximately RMB 4.9 million[106]. - The Group has commenced construction on several significant corporate projects, including two EPC projects from the PRC government, and various residential and commercial construction projects[55][57].

Revenue Performance - In FY2018, the provision of interior design and engineering services accounted for approximately 51.9% of total revenue, up from 23.9% in FY2017[14]. - Revenue from interior design and engineering services increased by approximately RMB212.1 million or 213.5%, from approximately RMB99.3 million in FY2017 to approximately RMB311.4 million in FY2018[15]. - Revenue from the sale and distribution of merchandise decreased by approximately RMB28.6 million or 9.0%, from approximately RMB316.6 million in FY2017 to approximately RMB288.1 million in FY2018[20]. - Revenue from home improvement materials and furnishing products decreased by approximately 46.3% and 7.8% respectively in FY2018[20]. - Total revenue increased by approximately RMB183.5 million or approximately 44.1% from approximately RMB416.0 million for FY2017 to approximately RMB599.5 million for FY2018[40]. - Revenue from the sale and distribution of merchandise decreased by approximately RMB28.5 million or approximately 9.0% from approximately RMB316.6 million in FY2017 to approximately RMB288.1 million in FY2018[43]. - Revenue from the sale of home improvement materials decreased by approximately RMB17.9 million or approximately 46.3% from approximately RMB38.7 million in FY2017 to approximately RMB20.8 million in FY2018[45]. - Revenue from the sale of furnishings decreased by approximately RMB1.6 million or approximately 7.8% from approximately RMB20.7 million in FY2017 to approximately RMB19.1 million in FY2018[46]. Profitability - The consolidated net profit for FY2018 was approximately RMB12.1 million, representing an increase of approximately RMB3.1 million or 34.4% compared to RMB9.0 million in FY2017[21]. - The increase in net profit was primarily due to the increase in gross profit from interior design services and a decrease in selling and administrative expenses[21]. - The decrease in gross profit from merchandise sales was approximately RMB21.5 million, which partially offset the increase in net profit[21]. - Overall gross profit increased by approximately RMB2.9 million or approximately 5.4% from approximately RMB53.1 million in FY2017 to approximately RMB56.0 million in FY2018[57]. - Profit for the year increased by approximately RMB3.1 million or approximately 34.4% from approximately RMB9.0 million in FY2017 to approximately RMB12.1 million in FY2018[67]. Financial Position - As of December 31, 2018, the Group's total cash and bank balances increased to approximately RMB116.4 million, up from RMB93.0 million in FY2017, primarily due to net proceeds from share issuance and bank borrowings totaling approximately RMB244.7 million[72][73]. - The Group's net current assets rose to approximately RMB415.6 million as of December 31, 2018, compared to RMB257.4 million as of December 31, 2017[73]. - Total bank borrowings increased to approximately RMB103 million as of December 31, 2018, from RMB88.2 million in FY2017, while unutilized banking facilities for short-term financing decreased to approximately RMB20 million from RMB108 million[74][78]. - The Group's current ratio improved to 2.7 in FY2018 from 2.5 in FY2017, and the quick ratio increased to 2.5 from 2.3[83]. - The gearing ratio decreased to 21.0% in FY2018 from 26.3% in FY2017, indicating a reduction in financial leverage[83]. Investment and Growth Strategy - The Group is actively seeking new investment opportunities in the pan-cultural and entertainment industry to enhance profitability and maximize shareholder returns[28]. - An investment agreement was signed to acquire 51% of Xinfeng Culture for a total consideration of HK$54,366,000, expected to diversify the Group's business[28]. - The Company raised approximately HK$101.8 million through a rights issue of 172,800,000 shares at HK$0.60 per share, with plans to allocate approximately HK$91.6 million for capital input in interior design and engineering projects in the PRC[88][89]. - On December 27, 2018, the Company completed a placing of 86,400,000 new shares at HK$0.70 per share, raising approximately HK$59.7 million, with plans to use approximately HK$53.7 million for potential acquisitions of movie or television projects[95]. Management and Leadership - The Group has a strong leadership team with diverse backgrounds in finance, management, and government[125][128][131]. - The Company emphasizes strategic planning and business development under the leadership of Ms. Hou Wei[125]. - The management team has extensive experience in various sectors, including finance, real estate, and engineering, enhancing the company's operational capabilities[138]. - The company is committed to maintaining effective internal control systems and audit processes, as emphasized by Mr. Ye Yihui's role[140]. Risks and Challenges - Key business risks include reliance on key customers and concentration of operations in Meizhou, Guangdong Province, which may affect demand for the company's merchandise[111]. - The company faces operational risks related to supplier relationships and potential delays in product delivery[112]. - The growth of the company's business is significantly influenced by the real estate market and relevant government policies in China[118]. Dividend Policy - The Company does not recommend the payment of a dividend for the reporting period[181]. - The Company has adopted a dividend policy that allows for the declaration and distribution of dividends, subject to profitability and operational considerations[186]. - The dividend policy will be reviewed periodically, with no assurance of dividends in specific periods[188].