Revenue and Profitability - The company's revenue for the six months ended March 31, 2019, was HKD 166.7 million, representing a 3.5% increase from HKD 161.0 million for the same period in 2018[12]. - Revenue from the largest customer increased by 20.1%, contributing significantly to the overall revenue growth[10]. - Gross profit increased by approximately 38.7% compared to the same period last year, rising from HKD 22.4 million to HKD 31.1 million[14]. - The adjusted net profit for the six months ended March 31, 2019, was HKD 5.3 million, compared to HKD 4.9 million after accounting for relocation costs in the previous year[10]. - Profit before tax increased from HKD 1.3 million to HKD 7.8 million, a rise of HKD 6.5 million, attributed to increased sales and gross margins[22]. - The company reported a loss of HKD 1.6 million for the six months ended March 31, 2019, compared to a profit of HKD 0.986 million in 2018[52]. - Total comprehensive income attributable to owners of the company was a loss of HKD 509,000 for the period, down from HKD 4,838,000 in the previous year[55]. Cost Management - The cost of sales decreased from HKD 138.6 million to HKD 135.6 million, resulting in a sales cost percentage of 81.3%, down from 86.1% in the prior year[13]. - The gross margin improved to 18.7% from 13.9% in the previous year, reflecting enhanced production capabilities after relocating facilities to Shenzhen[14]. - Selling and distribution expenses decreased by HKD 0.3 million or 8.4%, from HKD 3.8 million to HKD 3.5 million[18]. - Administrative expenses rose from HKD 20.4 million to HKD 21.3 million, an increase of HKD 0.9 million or 4.6%[19]. - Financing costs increased from HKD 1.0 million to HKD 3.0 million, reflecting the rise in the group's borrowing levels[21]. Cash Flow and Liquidity - Cash and cash equivalents decreased from HKD 205.995 million to HKD 147.097 million[28]. - Operating cash flow used was HKD 2.5 million, down from HKD 13.2 million in the previous period, due to an increase in working capital of HKD 10.6 million[31]. - Cash flow from operating activities showed a net outflow of HKD 2,507,000, improving from a net outflow of HKD 13,234,000 in the same period last year[68]. - The net cash used in investing activities was HKD 999,000, a reduction from HKD 3,326,000 in the previous year, showing improved cash management[66]. - The company experienced a significant decrease in trade and other payables, with a reduction of HKD 13,397,000 compared to HKD 6,985,000 in the previous year[66]. Asset and Liability Management - The company's total assets decreased to HKD 253,357,000 from HKD 311,224,000 year-over-year, indicating a decline of approximately 18.5%[58]. - Current liabilities decreased to HKD 65,115,000 from HKD 125,539,000, reflecting a reduction of about 48%[58]. - Non-current liabilities increased to HKD 92,796,000 from HKD 90,706,000, showing a slight increase of approximately 2.3%[58]. - The group has a total of HKD 133,530,000 in non-derivative financial liabilities, with HKD 100,000,000 due beyond one year but not exceeding five years[150]. Production and Operational Efficiency - The relocation of production facilities to Shenzhen has improved production and development capabilities, contributing to lower sales costs[16]. - The company expects to further enhance production line efficiency following the relocation of its manufacturing facility to Shenzhen, China[44]. - The company is exploring diversification opportunities to mitigate risks and ensure long-term sustainable development amid global economic uncertainties[11]. Taxation and Compliance - The company incurred a one-time tax expense of approximately HKD 6.9 million related to the transfer of land use rights and certain buildings[10]. - The actual tax rate rose to 32.4% from 21.1%, primarily due to a one-time tax expense of approximately HKD 6.9 million related to land use rights transfer[24]. - The group reported a corporate income tax expense of HKD 8,535,000 for the period, compared to HKD 183,000 in 2018, maintaining a tax rate of 25%[179]. Financial Reporting Standards - The adoption of HKFRS 9 has led to changes in the group's accounting policies, particularly in the classification and measurement of financial instruments[78]. - The group has applied HKFRS 15, which establishes a five-step model for recognizing revenue from customer contracts, effective from October 1, 2018[100]. - The adoption of Hong Kong Financial Reporting Standard No. 15 had no significant impact on the group's interim financial statements for the period ending March 31, 2019[111]. Future Outlook and Strategic Initiatives - The company is exploring opportunities to expand into technology services, blockchain technology, and financial technology services to mitigate future risks[44]. - The management team is committed to implementing effective corporate governance and accelerating business development[8]. - The company has not provided specific guidance for future performance or new product developments in the current report[55].

Financial Performance - For the fiscal year ending September 30, 2018, the group's revenue increased by HKD 39.0 million or 12.7%, primarily due to a 42.0% revenue increase from the largest customer and improved trading conditions in various regional markets[13] - The group's revenue increased by 12.7% from HKD 306.4 million to HKD 345.4 million, primarily due to a 42.0% increase in sales to its largest customer[19] - Net profit for the year rose by 26.9% to HKD 6.6 million, up from HKD 5.2 million in the previous year[32] - Gross profit decreased by HKD 11.0 million to HKD 56.6 million, with a gross margin decline to 16.4% from 22.1%[22] - Selling costs rose to HKD 288.8 million, accounting for 83.6% of revenue, compared to 77.9% the previous year[20] - Other income increased to HKD 6.9 million, up from HKD 2.6 million, driven by government grants and property sales[23] - Administrative expenses decreased by 2.2% to HKD 42.4 million, including relocation costs of HKD 3.8 million[25] - Adjusted profit before tax fell to HKD 18.1 million from HKD 23.9 million, primarily due to increased raw material and labor costs[30] - The effective tax rate decreased to 39.3% from 48.2%[31] - The company did not recommend a final dividend for the year[33] Challenges and Future Outlook - The company anticipates significant challenges in the fiscal year 2019, including labor shortages, rising raw material costs, and increased tariffs on sales to the United States[13] - The company is facing challenges due to rising raw material prices and potential higher tariffs in the US market[59] - The company plans to continue expanding its customer base to seize market opportunities amid global economic and political uncertainties, particularly the trade war between China and the United States[13] - The new management team will actively explore opportunities for business diversification to mitigate risks and achieve long-term sustainable development[13] Corporate Governance - The board is committed to maintaining high corporate governance standards, which are crucial for improving group performance and protecting shareholder interests[73] - The company adopted all provisions of the corporate governance code as per the Hong Kong Stock Exchange listing rules, ensuring compliance with regulatory requirements[74] - The board currently consists of five members, including two executive directors and three independent non-executive directors, reflecting a diverse governance structure[82] - The company has established three board committees, including the audit committee, remuneration committee, and nomination committee, to enhance corporate governance oversight[81] - Continuous professional development programs are provided to all directors to ensure they are aware of their responsibilities and the company's performance[80] - The company is focused on reviewing and enhancing its corporate governance practices to align with stakeholder expectations and regulatory standards[78] - The independent non-executive directors were appointed on October 11, 2018, contributing to the board's independence and oversight capabilities[83] - The company has implemented a compliance manual and code of conduct applicable to employees and directors to ensure adherence to governance standards[77] - The board has assessed the independence of all independent non-executive directors, confirming compliance with the listing rules for the year ending September 30, 2018[84] Shareholder Relations and Communication - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and understanding of the group's business and strategies[129] - The annual general meeting for shareholders is scheduled to be held on March 27, 2019[129] - The company encourages investors and stakeholders to provide suggestions and maintain communication[136] Employee and Operational Insights - The total employee cost for the year was HKD 82.4 million, an increase from HKD 76.2 million in 2017, with a total of 811 employees as of September 30, 2018[51] - The company plans to invest in high-quality and well-trained employees to enhance development capabilities and expand core competitiveness[59] - The company has restructured its sales team and allocated additional resources for market promotion to expand its customer base[59] Capital and Investment - The company successfully completed the relocation of its production facilities to a fully equipped and independently operated leased facility in Guangming New District[12] - The company's capital expenditure for the year was financed through internal resources and credit, amounting to HKD 5.2 million[42] - Investment cash outflow for the year was HKD 3.9 million, a decrease from HKD 25.6 million in 2017, with capital expenditures of HKD 5.2 million compared to HKD 22.0 million in the previous year[39] Share Transactions and Ownership - On August 21, 2018, Huobi Global Limited and Trinity Gate Limited completed the acquisition of the company's shares from Sina Investment Limited, marking a new phase of development for the company[12] - Huobi Global Limited acquired 215,576,000 shares for a total consideration of HKD 586,366,720, representing approximately 71.67% of the company's issued share capital[192] - Huobi Global Limited became the controlling shareholder, holding 70% of the issued shares, while Huobi Universal Inc. and Huobi Capital Inc. own 30%[193] - The mandatory unconditional cash offer was priced at HKD 2.72 per share, with the cancellation of unexercised options priced at HKD 1.22 per share[194] Risk Management - The board is responsible for establishing, maintaining, and continuously evaluating the adequacy and effectiveness of the group's risk management and internal control systems[123] - The board confirmed that there was no immediate need to establish an internal audit function, considering the group's existing risk management and internal control systems were sufficient[124] - The company has maintained compliance with applicable environmental laws and regulations in its business operations[149] Related Party Transactions - The company confirmed that there were no other significant related party transactions during the fiscal year ending September 30, 2018, apart from those disclosed in the financial statements[160] - The auditor issued an unqualified opinion regarding the group's continuing connected transactions, confirming compliance with relevant pricing policies and regulatory agreements[157]