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].