Financial Performance - For the fiscal year ending March 31, 2022, the group recorded total revenue of approximately HKD 165.8 million, an increase of about 12.8% compared to HKD 147.0 million for the previous fiscal year[5]. - Gross profit increased by approximately 3.0% to about HKD 95.8 million, while the gross profit margin decreased from approximately 63.3% to 58.0% due to lower selling prices to Chinese distributors[5]. - The net profit attributable to the company's owners was approximately HKD 11.9 million, an increase of about 18.0% from HKD 10.1 million in the previous year[5]. - The total revenue from sales of tiles and sanitary ware products increased by approximately 12.3% compared to the previous year[6]. - Revenue from the sale of tiles and sanitary ware products was approximately HKD 165.1 million, accounting for about 99.6% of total revenue for the year ended March 31, 2022[12]. - Gross profit for the year ended March 31, 2022, was approximately HKD 95.8 million, an increase of about 3.0% from HKD 93.0 million the previous year, despite a decrease in overall product profit margin from 63.3% to 58.0%[13]. - The group’s net profit attributable to shareholders was approximately HKD 11.9 million, an increase of about 18% from HKD 10.1 million the previous year[18]. - Employee costs for the year ended March 31, 2022, were approximately HKD 22.4 million, up from HKD 21.2 million the previous year, primarily due to increased sales commissions and discretionary bonuses[15]. - The group recorded rental income from property investment of approximately HKD 0.7 million for the year ended March 31, 2022, compared to zero the previous year[12]. Challenges and Strategic Responses - The group faced significant challenges due to the impact of COVID-19, particularly in the fourth quarter of the fiscal year[6]. - The group continues to implement cost-saving measures, including controlling costs and reducing rent, while also closing underperforming retail stores[6]. - Future prospects may remain challenging due to the emergence of COVID-19 variants, but the management team is confident in the group's long-term development and shareholder value enhancement[8]. - The group aims to diversify its revenue sources to stabilize financial performance amid changing market conditions[8]. - The company plans to diversify its revenue sources and strengthen partnerships with existing distributors in China despite challenges from COVID-19 variants[31]. Corporate Governance - The company has a strong governance structure with members serving on various committees including remuneration, audit, and nomination committees[42][45][51]. - The company is focused on enhancing shareholder value through effective management and strategic oversight by the board[61]. - The independent non-executive directors are committed to attending all future shareholder meetings to ensure compliance with governance standards[60]. - The company has a structured approach to corporate governance, with a dedicated committee overseeing compliance and performance[61]. - The management team has extensive experience in finance and corporate governance, with key members having nearly 30 years of experience in their respective fields[53][56]. - The company is actively reviewing its governance structure to ensure alignment with best practices and shareholder interests[60]. - The board consists of three independent non-executive directors, representing over one-third of the total board members, ensuring strong independent judgment[65]. - The company has adopted a board diversity policy to maintain a balance of skills, experience, and diversity to meet business needs since December 2018[66]. - The company has established several functional committees, including the Audit Committee and the Remuneration Committee, to assist the board in fulfilling its responsibilities[80]. Risk Management and Compliance - The board believes that the risk management and internal control systems are effective and adequate, having been reviewed by external independent professionals[128]. - The company is committed to maintaining a transparent environment regarding anti-corruption and compliance with legal requirements[125]. - The company acknowledges the importance of compliance with laws and regulations and has not been aware of any significant non-compliance issues during the year[198]. - The company has implemented a whistleblowing policy allowing employees to report any fraudulent or corrupt activities[126]. - There were no corruption lawsuits against the group or its employees for the year ended March 31, 2022[127]. Shareholder Information - The company did not recommend any dividend payment for the fiscal year[154]. - The company has adopted a dividend policy in December 2018, details of which can be found in the management discussion and analysis section of the annual report[120]. - The annual general meeting will be held on September 30, 2022, with a notice to be sent to shareholders at least 21 days prior[135]. - The company reported a total issued share capital of 240,000,000 shares with a par value of HKD 0.1 per share as of March 31, 2022[157]. - The company's distributable reserves were approximately HKD 54.1 million as of March 31, 2022, including share premium and accumulated losses[163]. Supplier and Customer Relationships - The top five customers accounted for less than 26.6% of total revenue for the fiscal year ending March 31, 2022[165]. - The top five suppliers accounted for approximately 54.2% of total procurement for the fiscal year ending March 31, 2022, compared to 29.1% in the previous year[165]. - The largest supplier accounted for about 33.4% of total procurement for the fiscal year ending March 31, 2022, up from 9.3% in the previous year[165]. - The company has established long-term business relationships with several major customers and suppliers, recognizing the importance of maintaining good relationships for long-term growth[165]. Management and Board Composition - Ms. Xu Daofei has been appointed as an executive director since January 26, 2018, and has extensive experience in overall strategy planning and management[41]. - Mr. Wu has over 17 years of fund management experience and has held various senior positions in asset management companies[42]. - Mr. Hu has served as an independent non-executive director and chairman of the audit committee, bringing rich experience in financial and business management[45]. - Mr. Xu has been appointed as an independent non-executive director and has experience in public transport operations in Hong Kong and mainland China[51]. - All directors have demonstrated the necessary skills and experience to fulfill their duties effectively, as confirmed in the annual assessment conducted on June 28, 2022[69]. Audit and Financial Oversight - The Audit Committee held three meetings during the fiscal year ending March 31, 2022, and reviewed the group's audited annual performance, confirming compliance with applicable accounting standards and regulations[98]. - The Remuneration Committee conducted one meeting during the fiscal year, reviewing and recommending the remuneration of directors, ensuring alignment with contractual terms and fairness[110]. - The Nomination Committee held two meetings during the fiscal year, assessing the board's structure, composition, and diversity, and evaluating the independence of non-executive directors[115]. - The Audit Committee monitored the integrity of the company's financial statements and discussed significant judgments related to financial reporting[98]. - The auditor's fees for the year ended March 31, 2022, were HKD 730,000 for statutory audit services and HKD 103,000 for non-audit services, compared to HKD 630,000 and HKD 70,000 for the previous year, respectively[121].

Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 76,211,000, representing a 30.1% increase from HKD 58,587,000 in the same period of 2020[9] - The net profit for the period was HKD 9,926,000, compared to a loss of HKD 1,892,000 in the previous year, indicating a significant turnaround[9] - Basic and diluted earnings per share for the period were HKD 4.14, compared to a loss per share of HKD 0.79 in the same period last year[9] - The group reported a profit before tax of HKD 12,390 million, compared to a loss of HKD (2,153) million in the previous year[36] - The group’s profit for the period was HKD 9,926 million, compared to a loss of HKD (1,892) million in the previous year[36] - The profit before tax for the six months ended September 30, 2021, was HKD 9,926,000, a significant recovery from a loss of HKD 1,892,000 in the same period of 2020[46] - The company's profit attributable to owners for the six months ended September 30, 2021, was approximately HKD 9.9 million, a significant increase of about HKD 11.8 million from a loss of HKD 1.9 million for the same period in 2020[83] Assets and Liabilities - Total assets as of September 30, 2021, were HKD 173,074,000, slightly down from HKD 173,679,000 as of March 31, 2021[11] - The total assets of the group as of September 30, 2021, were HKD 246,161 million, an increase from HKD 239,733 million as of March 31, 2021[37] - The company reported a net asset value of HKD 122,902,000, an increase from HKD 112,976,000 at the end of the previous reporting period[11] - The group’s cash and cash equivalents decreased to HKD 16,556 million from HKD 64,674 million in the previous year[26] - The group’s total bank deposits and cash as of September 30, 2021, amounted to approximately HKD 18.1 million, down from HKD 25.6 million as of March 31, 2021[84] - As of September 30, 2021, the group had bank borrowings of approximately HKD 33.9 million, with an asset-to-liability ratio of about 0.28 times[85] Inventory and Receivables - Inventory increased to HKD 95,030,000 from HKD 62,971,000, reflecting a 51.1% rise, indicating potential growth in sales[11] - Trade receivables decreased to HKD 32,145,000 from HKD 45,235,000, a decline of 29.0%, suggesting improved collection efforts[11] - The total trade receivables as of September 30, 2021, were HKD 32,145,000, down from HKD 45,235,000 as of March 31, 2021, indicating a decrease of 29%[56] - The aging analysis of trade receivables showed that HKD 9,562,000 was within 0 to 90 days, down from HKD 14,032,000 as of March 31, 2021, indicating a decrease in short-term receivables[57] Cash Flow - The net cash generated from operating activities was HKD 19,599 million, a decrease of 44.9% from HKD 35,313 million in 2020[26] - The net cash used in investing activities was HKD (31,210) million, compared to HKD (783) million in the previous year, indicating increased investment outflows[26] - The group’s financing activities generated net cash of HKD 2,683 million, a significant improvement from a net cash outflow of HKD (30,353) million in 2020[26] Revenue Breakdown - Sales of tiles amounted to HKD 60,116 million, up 13.7% from HKD 53,155 million in the previous year[27] - Revenue from external customers in Hong Kong and Macau for the six months ended September 30, 2021, was HKD 76,211,000, an increase from HKD 58,587,000 in the same period of 2020, representing a growth of 30.1%[40] - Sales of tiles and sanitary ware products generated revenue of approximately HKD 76.0 million, accounting for about 99.7% of total revenue for the six months ended September 30, 2021[76] - The gross profit for the six months ended September 30, 2021, was approximately HKD 51.0 million, an increase of about 25.0% from HKD 40.8 million for the same period in 2020[77] - The overall product profit margin decreased from approximately 69.6% for the six months ended September 30, 2020, to about 67.1% for the same period in 2021[77] Corporate Governance and Shareholder Information - The company is committed to high standards of corporate governance and has adopted all provisions of the corporate governance code[117] - The company has adopted a stock option plan since September 20, 2018, but no stock options have been granted as of the report date[122] - The audit committee consists of three independent non-executive directors who review the group's financial information and internal control procedures[123] - The interim financial statements have been reviewed by the audit committee[124] - As of September 30, 2021, major shareholders hold 62.5% of the issued share capital, amounting to 150 million shares[113] Strategic Plans and Investments - The company plans to continue expanding its market presence and investing in new product development to sustain growth[9] - The company completed the acquisition of Mason Holdings Limited for HKD 31.0 million on June 21, 2021, which has become a wholly-owned subsidiary[69] - The company acquired a subsidiary for HKD 31,000,000 during the six months ended September 30, 2021, reflecting ongoing investment activities[50] - The group completed the acquisition of a property holding company for HKD 31 million on June 21, 2021, to enhance its property investment in Hong Kong[89] - The net proceeds from the company's listing on October 19, 2018, amounted to approximately HKD 86.1 million, with plans to use the funds for retail network expansion and strategic acquisitions[99] - The planned use of proceeds includes HKD 22 million for the gradual expansion of the retail network in Hong Kong[102] - A total of HKD 36.5 million has been allocated to meet minimum procurement commitments under new exclusive distribution rights[102] - Strategic acquisition opportunities accounted for HKD 27 million, with no funds utilized to date[102] - Investment in properties in Hong Kong utilized HKD 31 million as of September 30, 2021[102] - General working capital has utilized HKD 14.6 million, with an initial allocation of HKD 0.6 million[102] - The total proceeds utilized as of September 30, 2021, amount to HKD 86.1 million[102]

Financial Performance - For the fiscal year ending March 31, 2021, the group recorded total revenue of approximately HKD 147 million, a slight increase from HKD 145.4 million in the previous year, primarily due to increased project sales [8]. - The net profit attributable to the company's owners for the fiscal year was approximately HKD 10.1 million, a turnaround from a net loss of HKD 0.7 million in the previous year, largely due to government subsidies of approximately HKD 4.2 million and rental concessions of about HKD 5.9 million related to COVID-19 [8]. - Revenue for the last six months of the fiscal year increased by approximately 28.4% compared to the same period last year, indicating a recovery in consumer sentiment as the pandemic situation improved [9]. - The total revenue for the year ended March 31, 2021, was approximately HKD 147.0 million, an increase of about 1.1% from HKD 145.4 million for the year ended March 31, 2020 [19]. - The gross profit for the year ended March 31, 2021, was approximately HKD 93.0 million, a decrease of about 10.7% from HKD 104.1 million for the previous year, resulting in a product profit margin decline from 71.6% to 63.3% [22]. - The company recorded a profit attributable to owners of approximately HKD 10.1 million for the year ended March 31, 2021, a significant increase of about HKD 10.8 million compared to a loss of HKD 0.7 million for the previous year [26]. - Other expenses for the year ended March 31, 2021, were approximately HKD 17.6 million, compared to HKD 20.2 million for the previous year [25]. - The company recorded a net exchange loss of approximately HKD 0.4 million for the year ended March 31, 2021, compared to a net exchange gain of HKD 0.4 million for the previous year [31]. Strategic Initiatives - The company plans to allocate approximately HKD 30 million to HKD 35 million of previously unutilized listing proceeds for property investments in Hong Kong, with the remainder for general working capital [10]. - In February 2021, the group entered into an agreement to acquire a property holding company for HKD 31 million, which is expected to generate sustainable cash flow and stable rental income [10]. - The company aims to expand its product portfolio and enhance product diversity in response to changing consumer behavior and market conditions [13]. - The group intends to strengthen collaboration with existing distributors and explore additional distribution networks in China as the retail market is expected to rebound post-COVID-19 [13]. - The company expects to utilize approximately HKD 21.1 million of unutilized proceeds for minimum procurement commitments under new exclusive distribution rights by the end of 2021 [52]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years [63]. - A strategic acquisition of a local competitor is anticipated, which is expected to enhance the company's product offerings and customer base [63]. - The company has introduced two new product lines, which are expected to contribute an additional HKD 200 million in revenue in the upcoming fiscal year [63]. Corporate Governance - The company reported a commitment to high standards of corporate governance to enhance accountability, independence, and transparency, thereby creating value for shareholders [69]. - The board consists of five directors, including two executive directors and three independent non-executive directors, ensuring a strong independent element [74]. - The company has complied with all applicable code provisions of the corporate governance code, except for the separation of the roles of Chairman and CEO, which are currently held by the same individual [70]. - The independent non-executive directors represent more than one-third of the board, providing independent judgment and oversight [75]. - The company has established a three-year appointment letter with each independent non-executive director, allowing for termination with three months' written notice [75]. - The board is responsible for the overall strategy of the group and monitoring management performance, ensuring alignment with shareholder interests [71]. - The company emphasizes the importance of corporate governance for long-term success and sustainable development [69]. - The board will continue to review the current structure and consider separating the roles of Chairman and CEO when appropriate [70]. - The company has a strong management team with extensive experience in finance and corporate governance, enhancing operational effectiveness [66][67]. - The company is committed to maintaining high standards of financial reporting and management practices [75]. Shareholder Information - The company does not recommend any final dividend for the year ended March 31, 2021 [43]. - The board of directors highlighted the commitment to shareholder returns, with plans to increase dividends by 10% in the next fiscal year [63]. - The company's distributable reserves amounted to approximately HKD 55.8 million as of March 31, 2021, including share premium and accumulated losses [146]. - The top five customers accounted for less than 29.6% of the total revenue for the year ended March 31, 2021, while the top five suppliers accounted for approximately 29.1% of total procurement (down from 43.2% in 2020) [148]. - The largest supplier represented about 9.3% of total procurement for the year ended March 31, 2021, compared to 13.7% in 2020 [148]. - Major shareholders TMF (Cayman) Ltd., RB Management, and RB Power collectively hold 1,500,000,000 shares, representing 62.5% of the company's issued share capital [194]. - As of March 31, 2021, the major shareholders included Mr. Cao, holding 150,000,000 shares (62.5% of issued share capital) and Ms. Xu, also holding 150,000,000 shares (62.5%) [189]. Risk Management and Compliance - The audit committee assessed the effectiveness of the group's risk management and internal control systems during the fiscal year, finding them adequate and effective [115]. - The company confirmed compliance with relevant laws and regulations, with no significant non-compliance issues identified during the year [176]. - The company has implemented policies and procedures to ensure timely and accurate disclosure of inside information in compliance with relevant regulations [116]. - The group has maintained transparent communication with investors through various channels, including annual general meetings and financial reports [126]. - The company has established a non-competition agreement with its controlling shareholders to protect its business interests [165]. - The company has purchased directors' liability insurance to provide appropriate protection for its directors and those of its subsidiaries [160]. Audit and Financial Reporting - The audit committee confirmed that the annual report complies with applicable accounting standards and regulations [96]. - The financial statements for the year were audited by Zhongzheng Zhonghuan, who is eligible and willing to be reappointed as the auditor [181]. - The group appointed Zhongren Zhonghuan as the external auditor, with audit fees for the fiscal year ending March 31, 2021, amounting to HKD 680,000 for statutory audit services [111]. - The tax compliance service fees for the fiscal year ending March 31, 2021, were HKD 71,000, compared to HKD 70,000 for the previous year [111]. - The company has established a formal and transparent remuneration policy for all directors and senior management [98]. - The audit committee reviewed the accounting standards and practices adopted by the group for the year [178]. Sustainability and Social Responsibility - The management emphasized the importance of sustainability initiatives, aiming for a 50% reduction in carbon footprint by 2025 [63]. - The company is committed to promoting environmental and social sustainability in its operations [175].

Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 58,587, a decrease of 23.4% compared to HKD 76,480 for the same period in 2019[8]. - The company reported a net loss of HKD 1,892 for the period, resulting in a basic and diluted loss per share of HKD 0.84[8]. - The group recorded a loss attributable to owners of approximately HKD 1.9 million for the six months ended September 30, 2020, a significant decrease of about HKD 4.2 million compared to a profit of HKD 2.3 million for the same period in 2019[120]. - The group’s gross profit for the six months ended September 30, 2020, was approximately HKD 40.8 million, a decrease of about 23.6% compared to HKD 53.4 million for the same period in 2019, primarily due to a reduction in revenue[114]. - Retail sales accounted for HKD 50,973,000, a decline of 21% compared to HKD 64,396,000 in 2019[28]. - Revenue from the product category of tiles was HKD 53,155,000, down 28.1% from HKD 74,084,000 in the previous year[28]. Assets and Liabilities - Total assets as of September 30, 2020, were HKD 200,960, down from HKD 210,098 as of March 31, 2020[11]. - Current liabilities decreased to HKD 156,937 from HKD 185,037, improving the net current asset position to HKD 44,023[11]. - The total non-current assets in Hong Kong as of September 30, 2020, were valued at HKD 60,229,000, down from HKD 88,340,000 as of March 31, 2020[36]. - The company’s bank borrowings totaled HKD 59.6 million as of September 30, 2020, down from HKD 99.3 million as of March 31, 2020[95]. - The total trade payables were reported at HKD 16,340,000, a decrease from HKD 17,827,000, indicating a reduction of approximately 8.3%[88]. Cash Flow and Financing - The net cash generated from operating activities for the six months ended September 30, 2020, was HKD 50,220,000, an increase of 39% compared to HKD 36,156,000 in 2019[15]. - The company reported a net increase in cash and cash equivalents of HKD 4,177,000, compared to a decrease of HKD 10,207,000 in the same period last year[15]. - Financing costs decreased to HKD 4,311 from HKD 5,404, indicating improved financial management[8]. - Financing costs for the six months ended September 30, 2020, totaled HKD 4,311,000, a decrease of 20.2% from HKD 5,404,000 in 2019[37]. Employee and Operational Costs - Employee costs decreased to HKD 17,789 from HKD 23,100, reflecting a reduction in workforce expenses[8]. - Total employee benefits expenses, including director remuneration, decreased slightly to HKD 10,619,000 from HKD 10,714,000 year-on-year, a reduction of approximately 0.9%[10]. - Employee costs for the six months ended September 30, 2020, were approximately HKD 10.6 million, remaining stable compared to HKD 10.7 million for the same period in 2019[115]. - The company incurred rental expenses of HKD 8.58 million from related parties for the six months ended September 30, 2020, unchanged from the same period in 2019[106]. Corporate Governance - The company has adopted and complied with all provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and CEO, which is currently held by the same individual[165]. - The audit committee consists of three independent non-executive directors who review the group's financial information and oversee the relationship with external auditors[171]. - The company is committed to high standards of corporate governance to protect shareholder interests[165]. - There are no significant contracts involving directors or controlling shareholders that could create conflicts of interest with the group's business as of September 30, 2020[163]. Future Plans and Market Outlook - The company plans to focus on market expansion and new product development in the upcoming quarters[8]. - The group maintains a cautious outlook due to ongoing challenges from COVID-19, focusing on effective cost control and monitoring market conditions[135]. - The board will continuously review business objectives and may adjust plans based on market conditions to ensure ongoing business growth[135]. - The company plans to allocate approximately HKD 45 million for property investments in Hong Kong, with expectations to fully utilize these funds by the end of 2021[139]. Shareholder Information - As of September 30, 2020, RB Power Limited holds 150,000,000 shares, representing 62.5% of the company's issued share capital[159]. - RB Management, a wholly owned subsidiary of RB Power, also holds 150,000,000 shares, equating to 62.5% of the company's issued share capital[159]. - No dividends were recommended for the six months ending September 30, 2020, consistent with the previous year[134].

Financial Performance - For the fiscal year ending March 31, 2020, the group recorded total revenue of approximately HKD 145.4 million, a decrease from HKD 166.7 million in the previous year, representing a decline of about 12.8%[6] - The group reported a loss attributable to owners of the company of approximately HKD 0.7 million for the year ending March 31, 2020, compared to a profit of HKD 5.8 million for the previous year, indicating a decrease in profit of approximately 112.1%[6] - Gross profit for the year ended March 31, 2020, was approximately HKD 104.1 million, down about 12.0% from HKD 118.3 million for the previous year, with a stable product profit margin of approximately 71.6% compared to 71.0% in the prior year[18] - The group recorded total revenue of approximately HKD 145.4 million for the year ended March 31, 2020, a decrease of about 12.8% compared to HKD 166.7 million for the year ended March 31, 2019, primarily due to the impact of the US-China trade war, ongoing social unrest in Hong Kong, and the COVID-19 pandemic[17] - The group reported a loss attributable to owners of approximately HKD 0.7 million for the year ended March 31, 2020, a significant decrease of about HKD 6.5 million compared to a profit of HKD 5.8 million for the previous year[24] Store Operations and Strategy - As of March 31, 2020, the group operated 18 retail stores in Hong Kong, down from 19 stores the previous year, reflecting a strategic response to reduce rental costs[7] - The group plans to cautiously expand its retail network and is considering acquiring several properties in Hong Kong, although no specific properties have been identified yet[46] - The group aims to expand its customer base and sales network in the Chinese market while enhancing the diversity of its product offerings to improve profitability[9] - The group plans to open two new stores in Wan Chai and Mong Kok, with further openings contingent on market conditions[56] Financial Management and Investments - The group plans to reallocate part of the proceeds from its public listing to invest in property in Hong Kong to generate more income, while any remaining funds will be used for general working capital[9] - The group has pledged approximately HKD 65 million in bank deposits and HKD 4.3 million in life insurance policies as collateral for bank borrowings[32] - The board has decided to reallocate approximately HKD 30 million to HKD 35 million of the previously designated unutilized proceeds of about HKD 45 million for property investment in Hong Kong, with the remainder for general operating funds[109] - The expected rental income return for investment properties is between 2.0% and 3.3% annually, depending on property type and location[111] - The board anticipates that property investments will generate sustainable cash flow and provide stable rental income, enhancing the company's asset portfolio[111] Challenges and Outlook - The group anticipates facing multiple challenges in the near future due to economic uncertainties in Hong Kong and China, including the impact of the real estate development industry's demand levels and foreign exchange rate fluctuations[8] - The management remains optimistic about recovery prospects once the situation stabilizes, relying on the management team's extensive experience in business operations[12] - The company anticipates a cautious implementation of its business plans due to external factors such as the US-China trade war and the COVID-19 pandemic[97] - The company has adjusted its intended use of proceeds from the listing based on actual market developments[105] Corporate Governance - The company has committed to good corporate governance standards to enhance accountability, independence, and transparency, thereby creating value for shareholders[130] - The company has established a corporate governance committee with defined responsibilities to oversee governance practices[131] - The company has complied with all applicable code provisions of the corporate governance code, except for specific deviations regarding the roles of the chairman and CEO[132] - The board is responsible for the overall strategy and management performance, ensuring the company's success[133] - The company has adopted a board diversity policy to maintain a balance of skills, experience, and diversity to meet business needs[137] Risk Management - The group has engaged external independent professionals to review and enhance its risk management and internal control systems during the fiscal year ending March 31, 2020[184] - The audit committee assessed the effectiveness of the group's risk management and internal control systems and found them to be adequate and effective[184] - The group has implemented insider information policies and procedures to ensure timely and accurate disclosure of information in compliance with relevant regulations[184] - The group maintains appropriate safeguards to prevent violations of disclosure regulations related to insider information[184] Shareholder Engagement - The annual general meeting for shareholders is scheduled for September 2, 2020, providing a platform for direct communication between the board and shareholders[188] - The company encourages all shareholders to attend the annual general meeting and future meetings to maintain effective communication[198]

Financial Performance - Revenue for the six months ended September 30, 2019, was HKD 76,480,000, a decrease of 21% compared to HKD 97,000,000 for the same period in 2018[21] - The company reported a gross profit of HKD 53,380,000, resulting in a gross margin of approximately 69.8%[21] - The net profit for the period was HKD 2,294,000, down 78% from HKD 10,541,000 in the previous year[21] - Basic earnings per share decreased to HKD 0.12 from HKD 0.69, reflecting a decline of 82%[21] - The company reported a profit attributable to owners of HKD 2,349,000 for the six months ended September 30, 2019, down 77.5% from HKD 10,415,000 in the previous year[73] - The financial performance showed a decrease in total revenue by approximately 9.6% year-over-year[84] - For the six months ended September 30, 2019, the total revenue was approximately HKD 76.5 million, a decrease of about 21.2% compared to HKD 97.0 million for the same period in 2018[124] - Gross profit for the six months ended September 30, 2019, was approximately HKD 53.4 million, a decrease of about 20.7% from HKD 67.3 million for the same period in 2018[125] - The profit attributable to the owners of the company for the six months ended September 30, 2019, was approximately HKD 2.3 million, a significant decrease of about 77.5% from HKD 10.4 million for the same period in 2018[131] Assets and Liabilities - Total assets as of September 30, 2019, were HKD 215,342,000, compared to HKD 236,243,000 as of March 31, 2019[24] - Current liabilities increased to HKD 192,480,000 from HKD 171,394,000, indicating a rise of 12.7%[24] - The company's cash and cash equivalents decreased to HKD 19,566,000 from HKD 37,321,000, a decline of 47.5%[24] - As of September 30, 2019, the total bank borrowings amounted to HKD 110,209,000, secured by properties owned by certain affiliated companies and bank deposits of HKD 65,453,000[85] - As of September 30, 2019, the group had bank borrowings of approximately HKD 112.7 million, including HKD 97.0 million in HKD and HKD 15.7 million in EUR[133] - The asset-to-liability ratio as of September 30, 2019, was approximately 1.2 times, indicating a reasonable capital structure for the group's business operations[133] Cash Flow - Net cash generated from operating activities for the six months ended September 30, 2019, was HKD 36,156,000, a significant increase from HKD 2,966,000 in 2018, representing a growth of approximately 1,116%[30] - Cash used in investing activities amounted to HKD 503,000, compared to cash generated of HKD 359,000 in the previous year, indicating a negative shift in investment cash flow[30] - Cash used in financing activities was HKD 53,408,000, a substantial increase from HKD 2,676,000 in 2018, reflecting a change in financing strategy[30] - The net decrease in cash and cash equivalents was HKD 17,755,000, contrasting with an increase of HKD 649,000 in the same period last year[30] - The cash and cash equivalents at the beginning of the period were HKD 37,321,000, up from HKD 6,308,000 in 2018, indicating a strong starting liquidity position[30] - The ending cash and cash equivalents included bank balances and cash of HKD 19,566,000, compared to HKD 6,957,000 in the previous year, showing a significant increase of approximately 181%[30] Financing and Costs - The company incurred financing costs of HKD 5,404,000, which is significantly higher than HKD 2,247,000 in the previous year[21] - The company’s bank borrowing interest and lease liability interest for the six months ended September 30, 2019, was HKD 2,435,000 and HKD 2,969,000 respectively[65] - The company’s total employee costs for the six months ended September 30, 2019, were HKD 10,713,000, slightly down from HKD 10,795,000 in the previous year[67] - The company’s lease liabilities are measured at present value, including fixed payments[52] Market Strategy and Expansion - The company plans to focus on market expansion and new product development to drive future growth[22] - The company plans to open two new stores in Wan Chai and Mong Kok, with openings expected to be delayed until the fiscal years ending March 31, 2021, and 2022 due to market uncertainties[144] - The group aims to expand its product portfolio by establishing exclusive distribution agreements with three European tile suppliers, although procurement plans may slow down due to market conditions[149] - The management expresses confidence in the group's long-term growth and plans to strengthen its market position in Hong Kong's foreign tile retail sector through strategic acquisitions and expanding its sales network in China[144] - The company is identifying and evaluating potential acquisition targets to enhance its competitive position, with due diligence expected in the first half of 2019[199] Challenges and Risks - The group faced challenges due to the US-China trade war and ongoing social unrest in Hong Kong, negatively impacting public investment and consumer sentiment[123] - The group is actively negotiating with banks to release guarantees that were not lifted post-IPO, with alternative financing being sought from other banks to settle outstanding borrowings[121] Other Information - The company did not declare any dividends for the six months ended September 30, 2019, consistent with the previous year[75] - The board does not recommend any dividend payment for the six months ended September 30, 2019, consistent with the previous year[143] - The group has contingent liabilities totaling approximately HKD 73.3 million related to guarantees provided to banks for certain companies, down from HKD 106.6 million as of March 31, 2019[139]

Financial Performance - For the fiscal year ending March 31, 2019, the group recorded total revenue of approximately HKD 166.7 million, a decrease of about 12.7% compared to HKD 190.8 million for the previous fiscal year[15]. - The profit attributable to the owners of the company was approximately HKD 5.8 million, representing a decline of 65.9% year-on-year; excluding the impact of listing expenses, the profit would have been approximately HKD 15.0 million, down 42.6%[15]. - The group's gross profit for the year ended March 31, 2019, was approximately HKD 118.3 million, a decrease of about 10.3% compared to HKD 131.8 million for the year ended March 31, 2018[23]. - The group's net profit attributable to owners was approximately HKD 5.8 million, a decrease of about 65.9% from HKD 17.1 million for the year ended March 31, 2018[30]. - The product profit margin improved from approximately 69.1% for the year ended March 31, 2018, to approximately 71.0% for the year ended March 31, 2019[23]. - Employee costs increased to approximately HKD 23.6 million, up about 10.4% from HKD 21.4 million for the year ended March 31, 2018, primarily due to additional remuneration for newly hired directors and bonuses post-IPO[25]. - Property rental and related expenses amounted to approximately HKD 52.7 million, an increase of about 5.1% from HKD 50.2 million for the year ended March 31, 2018, due to rent increases and the opening of two new retail stores[28]. - The group's cash and cash equivalents totaled approximately HKD 102.8 million as of March 31, 2019, a significant increase from HKD 6.3 million as of March 31, 2018, mainly due to net proceeds from the IPO[31]. - As of March 31, 2019, the group had bank borrowings of approximately HKD 137.7 million, with a debt-to-equity ratio of approximately 1.6 times[32]. - The group recorded a foreign exchange gain of approximately HKD 2.8 million for the year ended March 31, 2019, compared to a foreign exchange loss of approximately HKD 4.8 million for the year ended March 31, 2018[35]. Revenue Sources - The group's revenue primarily came from the sale of tile products, accounting for approximately 91.8% of total revenue for the year ending March 31, 2019[22]. - Retail operations contributed approximately 77.3% of total revenue, compared to 75.6% in the previous year, indicating a slight increase in retail's share of revenue[22]. Market Challenges and Opportunities - The group faced challenges due to the overall downturn in the Hong Kong real estate market and the escalating US-China trade conflict, which negatively impacted public investment and consumer sentiment[15]. - Future growth is anticipated due to ongoing infrastructure development projects in Hong Kong, which are expected to drive demand for tiles[17]. - The company plans to consolidate its leading position in the foreign tile retail market in Hong Kong and expand its product portfolio and diversity[17]. - The company is exploring strategic acquisition opportunities and expanding its sales network in the Chinese market[17]. - The board anticipates that the group will face several challenges in the foreseeable future due to uncertainties in the Hong Kong economy, including risks related to market price fluctuations and demand for tiles[52]. Corporate Governance - The company reported a commitment to strong corporate governance standards to enhance accountability, independence, and transparency, thereby creating value for shareholders[93]. - The board of directors is responsible for the overall strategy and management of the company, ensuring high standards in financial and management reporting[96]. - The company has established a corporate governance committee to oversee compliance with governance codes and principles[94]. - The roles of the chairman and CEO are currently held by the same individual, which the company believes is in its best interest given the current board composition[95]. - The company has adhered to all applicable governance code provisions since its listing, with some exceptions noted[94]. - The board consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors[98]. - Independent non-executive directors account for more than one-third of the board, ensuring strong independence and the ability to provide independent judgment[99]. - The company adopted a board diversity policy in December 2018, focusing on various criteria such as gender, age, cultural background, and experience for new director candidates[100]. - The company has established several functional committees to assist the board in fulfilling its duties, including an audit committee formed on September 20, 2018[124]. Strategic Plans - The company plans to expand its retail network in Hong Kong by opening new stores in Wan Chai and Mong Kok[56]. - The company is currently negotiating with banks to release the guarantees provided by the group, which are related to bank financing for associated companies[39]. - The company aims to open two new retail stores in Q3 2018 and Q1 2019, focusing on bathroom products to assess customer demand and preferences[61]. - The company is identifying and evaluating potential acquisition targets in the bathroom products sector, with due diligence expected in H1 2019[65]. - The company plans to adjust its use of IPO proceeds based on market developments and business goals[72]. Employee and Director Information - The company has approximately 75 employees, with employee costs (including directors' remuneration) of about HKD 23.6 million and HKD 21.4 million for the years ending March 31, 2019, and 2018, respectively[40]. - The company appointed Mr. Liang Wei Chuen as a non-executive director in November 2017, who has over 25 years of experience in audit, accounting, and financial management[78]. - Mr. Huang Cheng Si was appointed as a non-executive director in January 2019, and he is a founding partner of a Hong Kong law firm, with experience in corporate governance[79]. - Mr. He Wing Tim, appointed as an independent non-executive director in September 2018, has served as a director and CEO of a property development company, leading business strategy execution[83]. - Mr. Wu, appointed as an independent non-executive director in September 2018, has over 14 years of experience in fund management and is currently the managing director of a major asset management company[84]. - Ms. Luo Cui Yu, appointed as an independent non-executive director in September 2018, has over 25 years of experience in accounting and financial management[85]. Dividend Policy - The company does not recommend the payment of any final dividend for the year ending March 31, 2019, compared to no dividend in 2018[51]. - The board's dividend policy aims to provide stable and sustainable returns to shareholders while retaining sufficient reserves for future development[44]. - The company reported a dividend of HKD 109,000,000 to its sole shareholder on September 10, 2018, with no further dividends recommended for the reporting period[189]. - The company has adopted a dividend policy as of December 2018, details of which can be found in the management discussion and analysis section of the annual report[162]. Charitable Contributions and Reserves - The company made charitable donations of approximately HKD 535,000 during the fiscal year ending March 31, 2019[193]. - The company's distributable reserves as of March 31, 2019, were approximately HKD 51.0 million, including share premium and accumulated losses[197]. Supplier Relationships - The top five suppliers accounted for 50.7% of the total purchases in the fiscal year ending March 31, 2019, down from 56.3% in 2018[199]. - The largest supplier represented approximately 18.0% of total procurement for the fiscal year ending March 31, 2019, compared to 23.5% in 2018[199]. - The company emphasizes maintaining good relationships with customers and suppliers for long-term business growth and development[198].