Revenue Performance - Revenue from distribution business increased by approximately HKD 24.8 million to about HKD 269.1 million for the year ended March 31, 2024, accounting for approximately 51.7% of the group's total revenue[1]. - For the fiscal year ending March 31, 2024, the group's performance significantly improved compared to the previous year, driven by the recovery of the Hong Kong economy from COVID-19[20]. - The group generated total revenue of HKD 520.8 million in FY2024, compared to HKD 486.8 million in FY2023, reflecting a growth in sales[82]. - The retail business revenue was HKD 251.7 million, up HKD 9.2 million or 3.8% from HKD 242.5 million in the previous year[20]. - The distribution business generated revenue of approximately HKD 269.1 million, up from approximately HKD 244.3 million in 2023, representing an increase of about HKD 24.8 million and accounting for approximately 51.7% of total revenue for the fiscal year 2024[123]. - The retail business revenue increased by approximately HKD 9.2 million to about HKD 251.7 million for the fiscal year ending March 31, 2024, compared to approximately HKD 242.5 million in 2023, driven by the post-pandemic economic recovery in Hong Kong[133]. Profitability - Gross profit for the year ended March 31, 2024, was approximately HKD 121.9 million, an increase of about 16.0% from approximately HKD 105.1 million in 2023, with a gross margin increase to approximately 23.4%[3]. - The net profit for the year ended March 31, 2024, rose by approximately 20.9% to about HKD 33.6 million from HKD 27.8 million in the previous year, with a net profit margin of approximately 6.7%[110]. - Basic earnings per share increased to HKD 8.40 in 2024 from HKD 6.94 in 2023, reflecting a growth of approximately 20.9%[65]. - The attributable profit for FY2024 is approximately HKD 33.6 million, up by about HKD 5.8 million or 20.9% compared to FY2023[76]. - The operating profit for the fiscal year was HKD 42.4 million, an increase from HKD 35.9 million in the previous year[187]. Expenses and Costs - Cost of sales for the year ended March 31, 2024, was approximately HKD 398.9 million, an increase of about 4.5% compared to approximately HKD 381.7 million in the same period of 2023, representing about 76.6% of total revenue[2]. - Selling and distribution expenses for the year ended March 31, 2024, were approximately HKD 38.4 million, an increase of about 6.4% from approximately HKD 36.1 million in the same period of 2023[4]. - Administrative expenses for the year ended March 31, 2024, were approximately HKD 42.0 million, a decrease of about 1.4% from approximately HKD 42.6 million in 2023[5]. - The group recognized a total of HKD 479,337,000 in expenses for 2024, up from HKD 460,368,000 in 2023, representing an increase of approximately 4.1%[62]. Financial Position - As of March 31, 2024, the group had cash and bank deposits of approximately HKD 50.6 million, down from approximately HKD 76.4 million in 2023, with a debt-to-equity ratio of approximately 26.6%[8]. - Total assets as of March 31, 2024, were HKD 267,254 million, slightly down from HKD 267,673 million in the previous year[23]. - Total equity increased to HKD 162,567 million from HKD 148,687 million in the previous year[23]. - Total segment assets amounted to HKD 174,472,000, with distribution business assets at HKD 92,327,000 and retail business assets at HKD 82,145,000[55]. - Total segment liabilities decreased to HKD 97,291,000 in 2024 from HKD 108,528,000 in 2023, with distribution liabilities at HKD 25,321,000 and retail liabilities at HKD 71,970,000[56]. Market Challenges and Strategies - The group continues to face challenges in the Hong Kong retail market, particularly in the tea beverage sector, due to intense competition and consumer spending pressures[15][16]. - The group is actively monitoring foreign exchange risks related to currency fluctuations, particularly involving the Japanese Yen, New Taiwan Dollar, and US Dollar[9][14]. - The group continues to prioritize marketing existing products while actively sourcing new quality products globally to leverage opportunities from the economic recovery in Hong Kong[40]. - The retail business is expected to face challenges due to soft consumer sentiment, prompting the group to develop a comprehensive sales and marketing plan to stimulate consumer interest[131]. - The group plans to optimize its cost structure and business model by reviewing lease agreements and controlling operating costs, including labor and rental expenses[131]. Dividends and Shareholder Returns - The group declared a dividend of HKD 10,000,000, maintaining a dividend of HKD 2.5 per share for both 2024 and 2023[67]. - The company plans to declare a final dividend of HKD 3.0 per share for the fiscal year, compared to HKD 2.5 per share in the previous year, resulting in a total payout ratio of approximately 65.3%[184]. Employee and Operational Metrics - The group employed 714 employees as of March 31, 2024, an increase from 692 employees in 2023, reflecting a 3.2% growth in workforce[142]. - The average same-store sales growth for the "Ten Ren Tea" retail stores was 8.4% for the fiscal year 2024, with average sales per store increasing to HKD 3.76 million[127]. - The group operates 63 self-operated retail stores as of March 31, 2024, focusing on marketing and product development to increase revenue and market share[125]. Legal and Compliance Issues - The company is currently involved in litigation related to quality issues with suppliers, with potential estimated losses of approximately HKD 17.9 million if the litigation is unsuccessful[100]. - The group has implemented new accounting standards and amendments, which are not expected to have a significant impact on the current or future periods[28].

Financial Performance - For the six months ended September 30, 2023, the company's revenue was approximately HKD 257.8 million, an increase of 9.8% compared to HKD 234.7 million in the same period of 2022[9]. - Gross profit for the same period was HKD 60.9 million, representing a 20.4% increase from HKD 50.6 million year-on-year[9]. - Net profit decreased by 14.8% to approximately HKD 17.8 million, down from HKD 20.9 million in the previous year[9]. - Operating profit decreased to HKD 21,157,000, down 13.0% from HKD 24,448,000 in the previous year[45]. - The company's profit attributable to owners for the six months ended September 30, 2023, was HKD 17,272,000, a decrease of 15.0% from HKD 20,297,000 in the same period of 2022[100]. - Basic earnings per share for the six months ended September 30, 2023, was HKD 4.3, down from HKD 5.1 in the previous year, reflecting a decline of 15.7%[100]. Revenue Breakdown - Retail business revenue increased to approximately HKD 127.3 million, up from HKD 118.1 million, reflecting a growth of about 9.2%[11]. - Distribution business revenue was approximately HKD 130.5 million, an increase from HKD 116.6 million, indicating a significant recovery post-COVID-19[16]. - For the six months ended September 30, 2023, total revenue was HKD 257,846,000, with distribution business contributing HKD 130,503,000 and retail business contributing HKD 127,343,000[79]. - Distribution business revenue was HKD 130,503,000, up from HKD 116,561,000, representing a growth of 11.9%[89]. - Retail business revenue increased to HKD 127,343,000 from HKD 118,110,000, marking a rise of 7.4%[89]. Expenses and Costs - Selling and distribution expenses were approximately HKD 19.0 million, an increase of about 8.6% from approximately HKD 17.5 million in the same period of 2022[24]. - Administrative expenses were approximately HKD 20.1 million, reflecting an increase of about 4.7% from approximately HKD 19.2 million in the same period of 2022[25]. - Employee benefit expenses increased to HKD 55,766,000 from HKD 50,313,000, representing a rise of 10.9%[94]. - Depreciation of property, plant, and equipment decreased to HKD 2,442,000 from HKD 4,854,000, a decline of 49.7%[94]. - Total expenses related to short-term leases amounted to HKD 8,549,000 for the six months ended September 30, 2023, compared to HKD 8,358,000 in 2022, reflecting an increase of approximately 2.3%[123]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.025 per share, with a payout ratio of approximately 58.1% of the profit attributable to shareholders[9]. - The interim dividend declared on November 27, 2023, is HKD 0.025 per share, totaling HKD 10,000,000, consistent with the previous year's dividend[101]. Assets and Liabilities - Total assets as of September 30, 2023, were HKD 269,529,000, a slight increase from HKD 267,673,000 as of March 31, 2023[49]. - Total liabilities decreased to HKD 103,483,000 from HKD 118,986,000, indicating improved financial stability[49]. - Cash and cash equivalents at the end of the period were HKD 58,717,000, down from HKD 75,630,000 at the beginning of the period[54]. - Trade receivables from third parties increased to HKD 65,860,000 as of September 30, 2023, up 21.1% from HKD 54,434,000 as of March 31, 2023[110]. - Trade payables decreased to HKD 16,550,000 as of September 30, 2023, down from HKD 19,541,000 as of March 31, 2023, a reduction of 15.2%[116]. Corporate Governance - Major shareholders include ACAC Investment Limited, SCSC Holdings Limited, and CCST Investment Limited, each holding 25.0% (100,000,000 shares) of the company's total issued shares[153]. - The company emphasizes high standards of corporate governance, adhering to the principles of the corporate governance code as of September 30, 2023[157]. - The roles of Chairman and CEO are held by the same individual, Mr. Chen Jinquan, to enhance agility and efficiency in business strategy formulation and execution[157]. - The board consists of four executive directors and three independent non-executive directors, ensuring a high level of independence[159]. Financial Risks and Litigation - The group continues to face various financial risks, including market risk, credit risk, and liquidity risk, with no changes in risk management policies since the last reporting date[71][72]. - The company is involved in ongoing litigation regarding a supply agreement for masks, with potential claims amounting to HKD 27,186,000 from the supplier, which includes HKD 9,750,000 for delivered masks[142]. - Management believes that the supplier's claims are unfounded and expects to prevail in the litigation, with no additional provisions required for the remaining claim amounts[143].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告 之內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不 對本公告全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承 擔任何責任。 B & S INTERNATIONAL HOLDINGS LTD. 賓 仕 國 際 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （「本公司」） （股份代號：1705） 截 至 二 零 二 三 年 九 月 三 十 日 止 六 個 月 的 中 期 業 績 公 告 財務摘要 • 截至二零二三年九月三十日止六個月的純利較二零二二年同期減少約 14.8%。 • 本集團截至二零二三年九月三十日止六個月錄得純利約17.8百萬港元。 倘不計及收到截至二零二二年九月三十日止六個月香港政府的工資補 貼，與二零二二年同期相比，本集團實際上錄得純利增加約6.6百萬港 元。（附註1） • 董事會已議決就截至二零二三年九月三十日止六個月宣派中期股利每 股2.5港仙，即本公司擁有人應佔溢利的派息率約為58.1%（截至二零二二 ...

Financial Performance - For the fiscal year ending March 31, 2023, the company reported revenue of approximately HKD 486.8 million, an increase of 4.0% compared to HKD 468.2 million in the previous fiscal year[18]. - The gross profit for the fiscal year was HKD 105.1 million, reflecting a significant increase of 36.3% from HKD 77.1 million in the prior year[18]. - Net profit surged to HKD 29.0 million, a remarkable increase of 2,316.7% compared to HKD 1.2 million in the previous fiscal year[17]. - Basic earnings per share rose to HKD 6.94, up 4,526.7% from HKD 0.15 in the previous year[18]. - The retail business achieved revenue of HKD 242.5 million, an increase of 8.2% from HKD 224.2 million in the previous year, while the distribution business remained stable at HKD 244.3 million[20]. - The retail segment's profit increased by 300.0% to HKD 14.0 million, compared to HKD 3.5 million in the previous fiscal year[20]. - The overall financial performance improved significantly due to the recovery of the Hong Kong economy starting from the second quarter of 2022[25]. - The profit attributable to the company's owners surged to approximately HKD 27.8 million, a remarkable increase of about 4,533.3% from HKD 0.6 million in the previous year[41]. - The distribution business generated revenue of approximately HKD 244.3 million, slightly up from HKD 244.0 million in the previous year, accounting for about 50.2% of the total revenue[43]. - The retail business's revenue rose to approximately HKD 242.5 million, an increase of about HKD 18.3 million from HKD 224.2 million in the previous year, representing about 49.8% of total revenue[47]. Cost Control and Profit Margins - The company focused on cost control measures to enhance profit margins in its retail operations, alongside successful marketing campaigns that stimulated sales growth[19]. - The gross profit margin improved to approximately 21.6% in 2023 from about 16.5% in 2022, attributed to cost control measures and currency depreciation[67]. - Operating costs decreased to approximately HKD 381.7 million, a reduction of about 2.4% from approximately HKD 391.2 million in the previous year[66]. - The company aims to optimize its cost structure and business model by reviewing lease agreements and controlling operating costs, including labor and rent expenses[62]. - The company is committed to prudent cost control measures to enhance profit margins in its retail operations[47]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.025 per share, resulting in a total dividend payout ratio of approximately 71.9% for the fiscal year[21]. Business Strategy and Development - The company plans to continue its multi-brand development strategy and focus on high-quality products to capture consumer spending driven by the economic recovery in Hong Kong[30]. - The company aims to expand its brand and product portfolio in the distribution business to maintain market competitiveness and leverage opportunities from the economic recovery[30]. - The company will continue to adjust its business model to navigate uncertainties in the challenging economic environment[30]. Corporate Governance - The company has adopted the corporate governance code principles to ensure high standards of corporate governance and protect shareholder interests[77]. - The board consists of four executive directors and three independent non-executive directors, ensuring a high level of independence[105]. - The roles of Chairman and CEO are held by the same individual, Mr. Chen, which the board believes enhances agility and efficiency in strategy formulation and execution[105]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and ensure sustainable development[105]. - The board will periodically review its structure and composition to maintain high corporate governance standards[106]. Employee and Workplace Policies - The group employed 692 staff as of March 31, 2023, compared to 609 in 2022, with employee benefit expenses (including director remuneration) amounting to approximately HKD 106.9 million, up from HKD 96.9 million in the previous year[88]. - The company is committed to providing a workplace free from discrimination and harassment, ensuring equal opportunities for employees from diverse backgrounds[199]. - The company has established a comprehensive employee handbook detailing office regulations, benefits, and rules for reference by all employees[200]. - A formal reporting procedure is in place to allow employees to report issues without fear of retaliation or negative evaluation[200]. Environmental, Social, and Governance (ESG) Initiatives - The company reported a commitment to sustainable development, recognizing its role in promoting sustainability during uncertain times[165]. - Significant achievements include a focus on reducing water usage, which was highlighted as a key accomplishment for the fiscal year ending March 31, 2023[166]. - The company aims to support Hong Kong's goal of achieving net-zero carbon emissions by 2050, with a roadmap addressing climate challenges over the next decade[166]. - The company has established a multi-channel communication policy to enhance engagement with shareholders and potential investors, which has been deemed effective for the fiscal year ending March 31, 2023[157]. - The company has established a governance framework to manage ESG-related risks and opportunities effectively[182]. Risk Management and Compliance - The company has implemented a zero-tolerance policy against bribery, extortion, and fraud, promoting ethical conduct across its operations[146]. - The company is committed to ensuring compliance with relevant laws and regulations, as well as monitoring the training and professional development of directors and senior management[136]. - The board conducted an annual review of the effectiveness of the risk management and internal control systems, concluding that they are adequate and effective for the fiscal year ending March 31, 2023[143]. Quality Assurance and Product Safety - The company has implemented strict quality assurance measures to ensure compliance with food safety laws and regulations, with zero reported cases of product recalls due to safety and health reasons during the reporting period[193]. - The company has established a quality assurance team to evaluate food ingredients and ensure compliance with safety standards[188].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告 之內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不 對本公告全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承 擔任何責任。 B & S INTERNATIONAL HOLDINGS LTD. 賓 仕 國 際 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （「本公司」） （股份代號：1705） 截 至 二 零 二 三 年 三 月 三 十 一 日 止 年 度 的 年 度 業 績 公 告 財務摘要 較上一財政度（「二零二二財年」）的約1.2百萬港元相比，截至二零二三年三月 三十一日止年度（「二零二三財年」），本集團純利錄得約29.0百萬港元。 截至 截至 二零二三年 二零二二年 三月三十一日 三月三十一日 止年度 止年度 增幅 百萬港元 百萬港元 ...

Financial Performance - For the six months ended September 30, 2022, the company's net profit increased by approximately 216.7% to about HKD 20.9 million compared to HKD 6.6 million in the same period last year[14]. - The company's revenue for the same period was approximately HKD 234.7 million, a decrease of about 1.7% from HKD 238.8 million in the previous year, primarily due to a reduction in the number of retail stores[18]. - The gross profit for the six months ended September 30, 2022, was HKD 50.6 million, an increase of 8.1% from HKD 46.8 million in the previous year[16]. - The company declared an interim dividend of HKD 0.025 per share, with a payout ratio of approximately 49.3% of the profit attributable to shareholders[14]. - The retail segment's profit increased by approximately 35.3% to about HKD 4.6 million for the six months ended September 30, 2022, compared to HKD 3.4 million in the previous year[21]. - The profit before tax for the period was HKD 22,909,000, with a net profit of HKD 20,883,000[1]. - Net profit attributable to owners for the six months ended September 30, 2022, was approximately HKD 20.3 million, an increase of about 227.4% from HKD 6.2 million in the prior year[39]. - Operating profit rose significantly to HKD 24,448,000, compared to HKD 9,729,000 in the previous year, marking a 151.5% increase[53]. - Basic and diluted earnings per share increased to HKD 5.1 from HKD 1.5, reflecting strong profitability growth[53]. Revenue Breakdown - Retail business revenue for the six months ended September 30, 2022, was approximately HKD 118.1 million, down from HKD 121.0 million in the previous year, representing a decrease of about 2.9 million[20]. - Distribution business revenue for the six months ended September 30, 2022, was approximately HKD 116.6 million, relatively stable compared to HKD 117.8 million for the same period in 2021[27]. - Total revenue for the group for the six months ended September 30, 2022, was approximately HKD 234.7 million, a decrease of about 1.7% from HKD 238.8 million in the same period of 2021[30]. - Retail business revenue decreased by approximately HKD 2.9 million to about HKD 118.1 million, accounting for approximately 50.3% of total revenue[30]. - Distribution business revenue for the six months ended September 30, 2022, was HKD 117,760,000, while retail business revenue was HKD 121,015,000, totaling HKD 238,775,000[107]. Cash and Assets - As of September 30, 2022, the group had cash and cash equivalents of approximately HKD 62.2 million, up from HKD 55.2 million as of March 31, 2022[42]. - Total assets as of September 30, 2022, amounted to HKD 262,076,000, up from HKD 251,807,000 as of March 31, 2022[57]. - Cash and cash equivalents at the end of the period were HKD 62,239,000, an increase from HKD 54,809,000 at the beginning of the period[69]. - The trade receivables from third parties as of September 30, 2022, were HKD 54,441,000, up from HKD 52,914,000 as of March 31, 2022, indicating an increase of 2.9%[129]. - The inventory balance as of September 30, 2022, was HKD 20,359,000, compared to HKD 19,781,000 as of March 31, 2022, reflecting a rise of 2.9%[124]. Liabilities and Expenses - Total liabilities decreased to HKD 111,054,000 from HKD 120,868,000, indicating improved financial stability[60]. - The total liabilities decreased from HKD 111,149,000 as of March 31, 2022, to HKD 101,315,000 as of September 30, 2022[106]. - Employee benefits expenses increased to HKD 50,313,000 from HKD 48,815,000 year-on-year[112]. - The group incurred lease liabilities of HKD 44,449,000 as of September 30, 2022, down from HKD 51,033,000, a reduction of 12.83%[140]. Government Subsidies and Financial Support - The company received approximately HKD 9.7 million in wage subsidies from the Hong Kong government, which significantly impacted the net profit figures[16]. - The company reported a government subsidy of HKD 9,740,000 received during the period, compared to none in the previous year[110]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules, emphasizing effective board management and high transparency[179]. - The board consists of four executive directors and three independent non-executive directors, ensuring a high level of independence[181]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests[179]. Legal Matters - The group has ongoing litigation with a supplier regarding a mask supply agreement valued at HKD 31,500,000, with HKD 9,250,000 of masks delivered but failing to meet quality standards[159]. - The company has filed a claim against a supplier for damages amounting to HKD 9,083,000 due to non-compliance with quality standards in delivered goods[160]. - The supplier has counterclaimed against the company for HKD 9,750,000 plus damages, alleging breach of contract related to unpaid amounts for delivered masks[162]. - The management believes the supplier's claims are unfounded and expects to win the lawsuit based on test reports from accredited laboratories[163]. - If the company loses the lawsuit, it could incur additional losses of approximately HKD 17,936,000 related to the supplier's claims and legal costs[163]. Employee and Management Information - The company employed 684 staff as of September 30, 2022, up from 609 as of March 31, 2022, with employee benefits expenses totaling approximately HKD 50.3 million[51]. - The total remuneration for key management personnel was HKD 1,852,000 for the six months ended September 30, 2022, an increase from HKD 1,554,000, reflecting a growth of 19.21%[157]. Accounting and Financial Reporting - The financial data is presented in Hong Kong dollars (HKD) and is prepared in accordance with Hong Kong Accounting Standards[74]. - The company has adopted several new or revised accounting standards, which are not expected to have a significant impact on the group's interim performance and financial position[77]. - The management's significant judgments and estimates in applying accounting policies remain consistent with those applied in the annual financial statements[83].

Financial Performance - For the fiscal year ending March 31, 2022, the company's revenue was HKD 468.2 million, a decrease of 3.1% compared to HKD 483.1 million in the previous year[14]. - Gross profit increased by approximately 44.1% to HKD 77.1 million, attributed to a recovery in business despite the financial impact of the fifth wave of COVID-19 in Hong Kong[14]. - Net profit for the year was HKD 1.2 million, reflecting a decrease of 25.0% from HKD 1.6 million in the previous year[14]. - The company did not recommend the payment of a final dividend for the fiscal year due to operational performance and the need to maintain a robust financial position[14]. - The government subsidies related to COVID-19 amounted to approximately HKD 2.1 million, significantly lower than HKD 24.4 million received in the previous fiscal year[14]. - The company's revenue for the fiscal year ending March 31, 2022, was approximately HKD 468.2 million, a decrease of about 3.1% compared to HKD 483.1 million in the same period of 2021[61]. - The company's gross profit increased by approximately 44.1% to about HKD 77.1 million, with a gross profit margin of approximately 16.5%, up from 11.1% in the previous year[64]. - Selling and distribution expenses were approximately HKD 35.9 million, an increase of about 2.0% from HKD 35.2 million in the previous year[65]. - Administrative expenses decreased by approximately 4.8% to about HKD 38.0 million, down from HKD 39.9 million in the previous year[66]. - Net financing costs decreased by approximately 19.6% to about HKD 3.7 million, compared to HKD 4.6 million in the previous year[67]. Business Segments - The company operates two main business segments: distribution (52% of revenue) and retail (48% of revenue)[13]. - The distribution business generated revenue of approximately HKD 244.0 million, down from HKD 253.5 million, a decrease of about HKD 9.5 million, accounting for 52.1% of total revenue[40]. - The retail business revenue decreased to approximately HKD 224.2 million from HKD 229.6 million, a decline of about HKD 5.4 million, representing 47.9% of total revenue[45]. - The company operates 62 self-operated retail stores as of March 31, 2022, down from 66 stores in the previous year[41]. - The average same-store sales performance for the company showed a decline in 2022 compared to previous years, with significant impacts from the pandemic[13]. - The average same-store sales for "Ten Ren's Tea" retail stores showed a decline, with the average sales per store decreasing from HKD 3.43 million to HKD 3.19 million[48]. Strategic Initiatives - The company continues to enhance its business through product quality maintenance and multi-brand development strategies despite operational disruptions caused by the pandemic[19]. - The company aims to introduce more high-quality brands and products from around the world to its retail offerings[20]. - The company plans to expand its brand and product portfolio in the distribution business to maintain market competitiveness and ensure more choices for customers[60]. - The company remains committed to maintaining and improving the quality of existing brands and products while adapting its business model to the changing market landscape[38]. Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange's listing rules, emphasizing effective board leadership and accountability[98]. - The board consists of seven directors, including four executive directors and three independent non-executive directors[105]. - The chairman and CEO roles are held by the same individual, which the board believes enhances efficiency in strategy formulation and execution[98]. - The board is responsible for establishing strategic plans and monitoring operational and production plans, as well as internal control systems[103]. - The company has not reported any incidents of non-compliance with the securities trading standards by its employees during the reporting period[100]. - The company will continue to review its board structure and composition to maintain high corporate governance standards[99]. - The remuneration committee held two meetings during the fiscal year ending March 31, 2022, focusing on reviewing the remuneration policies for executive directors and senior management[116]. - The nomination committee also convened twice in the same fiscal year, assessing the independence of independent non-executive directors and recommending re-election of retiring directors[117]. - The company has established formal and informal channels for independent non-executive directors to express their opinions openly, including regular board evaluations and closed-door meetings with the chairman[109]. - The company has taken out appropriate insurance to protect directors from legal actions arising from their duties[131]. Risk Management and Compliance - The board believes that the risk management and internal control systems of the group were adequate and effective for the year ended March 31, 2022[147]. - The company has implemented multiple procedures to ensure the proper safeguarding of accounting records and compliance with applicable laws and regulations[146]. - The company secretary ensured reliable information flow among board members and compliance with applicable laws and regulations[150]. - The audit committee reviewed the external auditor's independence and remuneration, ensuring compliance with auditing standards[126]. - The company paid HKD 1,500,000 for audit services during the fiscal year[144]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers the group's performance and efforts in these areas for the year ended March 31, 2022[165]. - The company emphasizes its commitment to sustainable development, integrating it into core business operations and community support[168]. - Significant progress has been made in climate change initiatives, with a roadmap established to address climate challenges over the next decade[170]. - A major achievement for the year includes reducing water usage and packaging materials, contributing to sustainability goals[170]. - The company aims to further reduce its carbon footprint through innovative green solutions[170]. - The company actively engages with stakeholders to identify and address significant environmental, social, and governance issues[175]. - The company has established concrete long-term plans based on four pillars: market, workplace, community, and environment[198]. - The company has set up an environmental, social, and governance working group to enhance transparency and accountability[199]. - The company focuses on product health and safety, customer satisfaction, and data privacy as key issues[197]. - The company encourages the use of electronic communication for interactions with suppliers and customers[200].

Financial Performance - For the six months ended September 30, 2021, the company's revenue was approximately HKD 238.8 million, a decrease of about 3.4% compared to HKD 247.3 million for the same period in 2020[12]. - The net profit for the same period was approximately HKD 6.6 million, representing a decrease of about 38.3% from HKD 10.7 million in 2020[13]. - The company recorded a gross profit of approximately HKD 46.8 million, an increase of about 4.2% from HKD 44.9 million in the previous year[23]. - The company's profit attributable to owners for the six months ended September 30, 2021, was approximately HKD 6.2 million, a decrease of about 39.2% compared to approximately HKD 10.2 million for the same period in 2020[25]. - The operating profit decreased to HKD 9.729 million, down 26.5% from HKD 13.294 million in the prior year[55]. - The company reported a net profit of HKD 6,591,000 for the period, a decrease from HKD 10,727,000 in the same period last year[96][100]. Revenue Breakdown - Retail business revenue increased to approximately HKD 121.0 million for the six months ended September 30, 2021, up from HKD 113.3 million in the same period of 2020, marking a growth of about 7.7%[18]. - Distribution business revenue decreased by approximately HKD 16.2 million to about HKD 117.8 million, representing approximately 49.3% of total revenue, primarily due to reduced sales volume to local retailers in Hong Kong[29]. - Retail business revenue increased by 6.1% to HKD 121,015,000 from HKD 113,265,000 in the previous year[111]. - Total revenue for the distribution and retail businesses was HKD 238,775,000, a decrease of 3.4% from HKD 247,259,000 in the same period last year[111]. Expenses and Costs - Selling and distribution expenses decreased by approximately 26.3% to about HKD 18.2 million, mainly due to cost-saving measures implemented during the period[32]. - The cost of goods sold for the six months ended September 30, 2021, was HKD 107,761,000, a decrease of 7.3% from HKD 116,612,000 in the same period of 2020[128]. - The total operating expenses for the six months ended September 30, 2021, were HKD 228,170,000, down 6.8% from HKD 245,005,000 in the previous year[128]. Cash Flow and Financing - Operating cash flow for the six months ended September 30, 2021, was HKD 33,434,000, a decrease of 39.5% from HKD 55,231,000 in 2020[73]. - Net cash from operating activities amounted to HKD 33,771,000, down 37.9% compared to HKD 54,336,000 in the previous year[73]. - Cash flow from financing activities resulted in a net outflow of HKD (23,020,000), improving by 43.5% from HKD (40,788,000) in the prior year[73]. - The net financing cost for the six months ended September 30, 2021, was approximately HKD 2.0 million, a decrease of about 16.7% from approximately HKD 2.4 million in the same period of 2020[35]. Assets and Liabilities - The total assets as of September 30, 2021, amounted to HKD 277.340 million, a slight increase from HKD 275.684 million as of March 31, 2021[65]. - The total liabilities decreased to HKD 140.565 million from HKD 145.010 million, indicating improved financial stability[65]. - The company employed 597 staff as of September 30, 2021, down from 721 staff as of March 31, 2021, with employee benefits expenses totaling approximately HKD 48.8 million[51]. - Trade payables amounted to HKD 18,967,000, an increase from HKD 15,365,000 as of March 31, 2021, representing a growth of 23.5%[142]. Dividends and Shareholder Information - The board has decided not to declare an interim dividend for the six months ended September 30, 2021, compared to HKD 0.01 per share in the same period of 2020[13]. - Major shareholders include ACAC Investment Limited and SCSC Holdings Limited, each holding 25.0% (100,000,000 shares) of the company[182]. Legal and Compliance Issues - The company has been actively negotiating with suppliers regarding quality issues related to masks purchased under a contract worth HKD 31,500,000, with HKD 9,250,000 worth of masks delivered but failing to meet quality standards[166]. - The company has filed a claim against a supplier for damages amounting to HKD 9,083,000 due to non-compliance with quality standards in delivered goods[167]. - Management believes the supplier's claims are unfounded and expects to win the lawsuit based on test reports from accredited laboratories[170]. - If the company loses the lawsuit, it could incur additional litigation losses of HKD 17,936,000 related to the supplier's claims[170]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules, emphasizing effective board management and high transparency[187]. - The board consists of four executive directors and three independent non-executive directors, ensuring a high level of independence[188]. - The audit committee reviewed the unaudited interim consolidated results and financial statements, confirming compliance with applicable accounting standards[192].

Financial Performance - For the fiscal year ending March 31, 2021, total revenue was approximately HKD 513.7 million, a decrease of about 6.0% compared to the previous fiscal year[21] - Gross profit decreased by approximately 43.2% to HKD 94.2 million, attributed to a sharp decline in same-store sales in the retail business[21] - Net profit decreased by approximately 11.1% to HKD 1.8 million, with basic earnings per share dropping by 44.4% to HKD 0.27[21] - The group's total revenue for the year ended March 31, 2021, was approximately HKD 483.1 million, a decrease of about 6.0% compared to HKD 513.7 million in 2020[37] - Gross profit fell from approximately HKD 94.2 million to about HKD 53.5 million, representing a decline of approximately 43.2%[37] - Profit attributable to owners of the company was approximately HKD 0.6 million, down about 45.5% from HKD 1.1 million in 2020[37] - Distribution business revenue decreased to approximately HKD 253.5 million, down from HKD 267.2 million, accounting for 52.5% of total revenue[39] - Retail business revenue declined to approximately HKD 229.6 million from HKD 246.6 million, representing about 47.5% of total revenue[43] - The company's gross profit was approximately HKD 53.5 million, a decrease of about 43.2% from HKD 94.2 million in the previous year, with a gross margin of approximately 11.1%[61] Impact of COVID-19 - The retail business was significantly impacted by social distancing measures and weakened demand due to the COVID-19 pandemic[21] - Average selling price of beverage products decreased from HKD 23.6 to HKD 21.4 per cup due to increased discounts during COVID-19[46] - Average daily sales of beverage products slightly decreased from 24,100 cups to 23,000 cups[46] - The report emphasizes the importance of employee rights, health, and safety, particularly in response to COVID-19 measures[150] - The company is focused on maintaining compliance with laws and regulations, particularly those related to COVID-19[150] Cost Management - The company has taken proactive measures to control operating costs, including employee costs and rental expenses[21] - Selling and distribution expenses were approximately HKD 49.1 million, an increase of about 28.3% from HKD 35.2 million in the previous year[62] - Administrative expenses decreased by approximately 5.0% to about HKD 39.9 million from HKD 42.0 million in the previous year[63] - Net financing costs were approximately HKD 4.6 million, a decrease of about 28.1% from HKD 6.4 million in the previous year[64] Strategic Initiatives - The company believes that business will grow when market conditions recover[21] - The company aims to introduce more high-quality brands and products to enrich its product portfolio and expand its customer base[28] - The company plans to enhance brand building, improve customer experience, and innovate products to strengthen its market position in the retail sector[57] - The group plans to open new stores, including HKD 26.2 million for Tian Ren Tea and HKD 18 million for Jiu Tang House, utilizing proceeds from the IPO[84] - The group aims to enhance its ERP system with an investment of HKD 3.6 million and expand its sales and marketing team with HKD 2.5 million[84] Governance and Management - The board believes that having the same person serve as both Chairman and CEO enhances the efficiency and effectiveness of business strategy formulation and execution[71] - The company has established a strong governance structure with independent non-executive directors overseeing key committees[92] - The management team has extensive experience in various sectors, enhancing the company's operational capabilities[92] - The financial director has over 10 years of experience in accounting, auditing, and financial control, strengthening the financial oversight[96] - The company is committed to maintaining high standards of internal control and investor relations[96] Risk Management - The company has a robust framework for risk management, supported by qualified professionals in financial risk management[97] - The board believes that the risk management and internal control systems were adequate and effective for the year ending March 31, 2021[136] Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers the group's performance and efforts in these areas for the fiscal year ending March 31, 2021[145] - The ESG report is based on the "comply or explain" principle, ensuring balanced disclosure of key performance indicators[146] - The company actively communicates with stakeholders to identify significant ESG issues and improve corporate social responsibility practices[147] - The company has established an Environmental, Social, and Governance (ESG) working group to enhance transparency and accountability[197] - The company integrates environmental measures into its operations to ensure positive contributions to society[198]

Financial Performance - For the six months ended September 30, 2020, the company's revenue was approximately HKD 247.3 million, a decrease of about 5.2% compared to HKD 260.8 million for the same period in 2019[10]. - The company's net profit for the same period increased by approximately 174.4%, reaching HKD 10.7 million compared to HKD 3.9 million in 2019[12]. - Gross profit for the same period was approximately HKD 44.9 million, down about 17.2% from approximately HKD 54.2 million in 2019, resulting in a gross margin of approximately 18.2%, a decline of about 2.6%[22][28]. - The net profit attributable to the company's owners for the six months ended September 30, 2020, was approximately HKD 10.2 million, an increase of about 191.4% compared to approximately HKD 3.5 million in 2019[22][34]. - The total comprehensive income for the six months ended September 30, 2020, was HKD 10,727,000, compared to HKD 3,921,000 for the same period in 2019, marking an increase of 173%[63]. - The company reported a net profit of HKD 10.7 million for the period, significantly up from HKD 3.9 million in the previous year, indicating a year-on-year increase of 173.2%[51]. Revenue Breakdown - Revenue from retail operations decreased to approximately HKD 113.3 million for the six months ended September 30, 2020, down from HKD 131.3 million in the same period of 2019, a decline of about HKD 18.0 million[16]. - Distribution business revenue increased by approximately HKD 4.6 million to about HKD 134.0 million, representing approximately 54.2% of total revenue, driven by increased sales to local retailers[25]. - Total revenue for the six months ended September 30, 2020, was HKD 247,259,000, down from HKD 260,764,000, a decrease of 5.2%[98]. - Revenue from food and beverage services decreased to HKD 113,265,000 from HKD 131,323,000, a decline of 13.8%[98]. - Total segment revenue for the distribution business was HKD 133,994,000, while retail business revenue was HKD 113,265,000, totaling HKD 247,259,000[86]. Retail Operations - The number of "Ten Ren Tea" retail outlets increased to 58 as of September 30, 2020, up from 54 outlets a year earlier[11]. - Same-store sales for "Ten Ren Tea" retail network recorded a decline of approximately 21.7% for the six months ended September 30, 2020[17]. - The average daily sales volume of "Ten Ren Tea" beverage products decreased during the same period, consistent with the decline in same-store sales growth[20]. - The average selling price of "Ten Ren Tea" beverage products slightly increased due to inflation and rising costs of raw materials and rent[20]. - The company's retail business accounted for approximately 45.8% of total revenue for the six months ended September 30, 2020[16]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.01 per share, representing a payout ratio of approximately 39.4% of the profit attributable to the owners of the company[12]. - The company declared an interim dividend of HKD 0.01 per share on December 22, 2020, compared to no dividend for the same period in 2019[156]. Financial Position - The group maintained a healthy financial position with cash and cash equivalents of approximately HKD 48.8 million as of September 30, 2020, compared to approximately HKD 38.5 million as of March 31, 2020[36]. - Total assets as of September 30, 2020, were valued at HKD 309.2 million, a decrease from HKD 318.8 million as of March 31, 2020[55]. - As of September 30, 2020, total liabilities amounted to HKD 162,156,000, a decrease of 11% from HKD 182,470,000 as of March 31, 2020[58]. - The total equity as of September 30, 2020, was HKD 147,085,000, up from HKD 136,358,000 as of April 1, 2020, indicating a growth of 8%[63]. - The company’s total equity attributable to owners as of September 30, 2020, was HKD 135,968,000, up from HKD 129,043,000 as of September 30, 2019, indicating a growth of 5%[63]. Cost Management and Operational Efficiency - The company plans to continue focusing on product portfolio and marketing efforts to maintain market share amid ongoing challenges from the COVID-19 pandemic[24]. - The group will implement cost control measures to further enhance cost efficiency in response to the current market conditions[34]. - The company employed 731 staff as of September 30, 2020, with employee benefits expenses amounting to approximately HKD 52.0 million, a decrease from HKD 109.3 million as of March 31, 2020[45]. Market Conditions and Challenges - The overall market sentiment was negatively impacted by the COVID-19 pandemic, leading to reduced consumer spending and shorter operating hours for stores[16]. - The company continues to face various financial risks, including market risk, credit risk, and liquidity risk[79]. Capital Expenditure and Commitments - Capital expenditure for the six months ended September 30, 2020, was approximately HKD 14.6 million, mainly for opening new retail stores[35]. - The company had capital commitments of HKD 171,550,000 for properties, plants, and equipment as of September 30, 2020[138]. Related Party Transactions and Governance - The company’s related party transactions included sales of goods to a related party amounting to HKD 424,000 in the previous year, with no sales recorded for the current period[150]. - The company has adopted the corporate governance code principles since April 1, 2020, ensuring high standards of governance to protect shareholder interests[170]. - The audit committee reviewed the unaudited interim consolidated results and financial statements, confirming compliance with applicable accounting standards[175].