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].

Financial Performance - For the fiscal year ending March 31, 2020, revenue was approximately HKD 513.7 million, a decrease of about 1.1% compared to HKD 519.5 million for the previous year[12]. - Net profit decreased by approximately 87.8% to about HKD 1.8 million, down from HKD 14.7 million in the previous year[12]. - Gross profit decreased from approximately HKD 113.3 million to about HKD 94.2 million, representing a decline of approximately 16.9%[30]. - Profit attributable to owners was approximately HKD 1.1 million, down about 91.9% from HKD 13.5 million in 2019[30]. - The company's gross profit was approximately HKD 94.2 million, a decrease of about 16.9% from HKD 113.3 million in 2019, with a gross margin of approximately 18.3%[58]. - The net profit attributable to owners was approximately HKD 1.1 million, a decrease of about 91.9% from HKD 13.5 million in 2019, resulting in a net profit margin of approximately 0.4%[64]. Business Segments - The company operates two main business segments: distribution and retail, with over 30 years of operational history in Hong Kong[21]. - As of March 31, 2020, the company had established 65 self-operated retail stores under various brand licenses, including "Tian Ren Tea" and "Master Hung"[21]. - Distribution business revenue increased to approximately HKD 267.2 million, up from HKD 265.3 million, accounting for 52.0% of total revenue[32]. - Retail business revenue decreased to approximately HKD 246.5 million from HKD 254.2 million, representing a decline of about 3.0% and accounting for 48.0% of total revenue[39]. Impact of COVID-19 - The retail business was significantly impacted by weakened demand due to the COVID-19 pandemic, prompting the company to implement cost control measures[12]. - The ongoing COVID-19 pandemic is expected to force the company to restructure its operations and business model to adapt to the new market landscape[22]. - The COVID-19 pandemic significantly impacted consumer sentiment, leading to a substantial decline in sales during the fourth quarter[43]. Cost Management - The company aims to optimize its cost structure by reviewing lease agreements and controlling operating costs, including labor and rent expenses[54]. - Rising operational costs, including labor and rental expenses, continue to pressure the business, limiting expansion and increasing financial burdens[50]. Corporate Governance - The company has adopted the corporate governance code principles as per the listing rules appendix 14, emphasizing effective board operations and high transparency[98]. - The board consists of four executive directors and three independent non-executive directors, ensuring a high level of independence[98]. - The company has maintained compliance with the corporate governance code, except for the separation of roles between the chairman and CEO, which are held by the same individual[98]. - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[98]. Sustainability and Social Responsibility - The group has established an Environmental, Social, and Governance (ESG) working group to enhance transparency and accountability[151]. - The group aims to balance effective operations with environmental protection and provides sustainable services through electronic data exchange systems[152]. - The group encourages suppliers to adopt green operations to minimize environmental impact[153]. - The company is committed to creating a healthy and safe work environment, encouraging employees to report hazards and potential threats[168]. - The company actively participates in community service and charitable activities, including donations to registered non-profit organizations[179]. Employee Management - The company has implemented a performance evaluation system to monitor employee development and productivity[173]. - The company provides comprehensive training for employees to ensure they meet hygiene and safety standards[170]. - The group employed 730 staff as of March 31, 2020, a decrease from 805 in 2019, with employee benefits expenses totaling approximately HKD 109.3 million[76]. Financial Position - As of March 31, 2020, the group's bank deposits and cash amounted to approximately HKD 38.5 million, down from HKD 54.0 million in 2019[69]. - The group's debt-to-equity ratio was approximately 52.7% as of March 31, 2020, compared to 30.6% in 2019[69]. - Total bank financing was approximately HKD 103.4 million as of March 31, 2020, down from HKD 145.9 million in 2019, with approximately HKD 75.9 million utilized[69]. Quality Assurance - The group has a comprehensive management tool and quality assurance measures to maintain product quality and food safety[158]. - The company has established a quality assurance team to evaluate food ingredients in distributed products, ensuring no prohibited materials are present[159]. - The company emphasizes high standards of hygiene and has implemented cleaning standards and training for all operational staff[162].

Financial Performance - For the six months ended September 30, 2019, the company's revenue was approximately HKD 260.8 million, a decrease of about 1.1% compared to HKD 263.7 million for the same period in 2018[12][19]. - The company's net profit for the six months ended September 30, 2019, was approximately HKD 3.9 million, a decrease of about 66.4% compared to HKD 11.6 million for the same period in 2018[14][23]. - The gross profit for the six months ended September 30, 2019, was approximately HKD 54.2 million, down about 11.9% from HKD 61.5 million in the same period of 2018[15][23]. - Same-store sales growth for "Ten Ren Tea" declined by approximately 24.2% for the six months ended September 30, 2019[20]. - Operating profit decreased to HKD 7.1 million from HKD 15.0 million year-on-year, indicating a decline of 52.8%[58]. - The net profit attributable to the company's owners for the period was HKD 3.5 million, compared to HKD 11.1 million in the previous year, representing a decrease of 68.4%[58]. - The total segment profit for the distribution and retail businesses was HKD 26,405,000, compared to HKD 33,329,000 in the previous year, indicating a decrease of 20.6%[117]. - The company reported a net profit of HKD 3,921,000 for the six months ended September 30, 2019, compared to HKD 3,531,000 in the previous period, reflecting an increase of approximately 11%[68]. Revenue Breakdown - Retail business revenue increased to approximately HKD 131.3 million, up about 2.1% from approximately HKD 129.2 million in the same period last year, accounting for about 50.4% of total revenue[26]. - Distribution business revenue decreased to approximately HKD 129.4 million, down about 5.1% from approximately HKD 134.5 million in the same period last year, accounting for about 49.6% of total revenue[26]. - Distribution business revenue was HKD 129,441,000, down from HKD 134,512,000, representing a decline of 3.0%[133]. - Retail business revenue increased to HKD 131,323,000 from HKD 129,213,000, reflecting a growth of 1.6%[133]. Cash Flow and Financing - Cash flow from operating activities for the six months ended September 30, 2019, was HKD 28,678,000, up from HKD 19,675,000 in the same period last year, indicating a growth of about 45.4%[71]. - The net cash used in investing activities was HKD (696,000), a significant improvement from HKD (38,017,000) in the previous year, reflecting a reduction in cash outflow[71]. - The company received bank loan proceeds of HKD 89,120,000, compared to HKD 72,460,000 in the previous year, marking an increase of approximately 22.9%[71]. - The total cash and cash equivalents at the end of the period were HKD 36,430,000, down from HKD 61,979,000 at the end of the previous period, a decrease of about 41.2%[71]. - The company paid dividends of HKD 8,000,000 during the period, a decrease from HKD 12,000,000 in the previous period, representing a reduction of approximately 33.3%[71]. Assets and Liabilities - The total assets as of September 30, 2019, were HKD 325.7 million, an increase from HKD 252.4 million as of March 31, 2019[61]. - The total liabilities increased to HKD 186.5 million as of September 30, 2019, compared to HKD 107.6 million as of March 31, 2019[63]. - The carrying amount of property, plant, and equipment as of September 30, 2019, was HKD 39,401,000, an increase from HKD 24,495,000 as of March 31, 2018[149]. - The trade payables decreased from HKD 16,867,000 as of March 31, 2019, to HKD 8,505,000 as of September 30, 2019, representing a reduction of approximately 49%[172]. - The total liabilities related to lease liabilities were HKD 90,706,000 as of September 30, 2019, compared to HKD 98,419,000 as of April 1, 2019, showing a decrease of approximately 7.5%[176]. Employee and Management Compensation - As of September 30, 2019, the group employed 937 employees, an increase from 805 employees as of March 31, 2019, with employee benefits expenses amounting to approximately HKD 52.1 million[49]. - Total compensation for key management personnel, including directors' fees, was HKD 1,617,000 for the six months ended September 30, 2019, an increase from HKD 1,415,000 in 2018, reflecting a growth of approximately 14.3%[199]. - Salaries, wages, bonuses, and allowances for key management personnel rose to HKD 1,518,000 in the first half of 2019, compared to HKD 1,314,000 in the same period of 2018, marking an increase of about 15.5%[199]. Accounting Policies and Changes - The company adopted HKFRS 16 "Leases," which impacted the financial statements, resulting in a decrease of HKD 1,380,000 in the comprehensive income[68]. - The adoption of HKFRS 16 resulted in an increase of HKD 96,768,000 in right-of-use assets and an increase of HKD 98,419,000 in lease liabilities on the balance sheet as of April 1, 2019[94]. - The net impact on retained earnings as of April 1, 2019, was a decrease of HKD 1,380,000 due to the adoption of the new accounting policy[94]. - Management's significant judgments and estimates in preparing interim financial data are consistent with those applied in the consolidated financial statements for the year ended March 31, 2019[107].

Financial Performance - For the fiscal year ending March 31, 2019, revenue was approximately HKD 519.5 million, an increase of about 14.9% compared to HKD 452.1 million for the previous year[11]. - Adjusted net profit was HKD 14.7 million, a decrease of 57.9% from HKD 34.9 million in the previous year[13]. - Basic earnings per share were HKD 3.37, down 27.1% from HKD 4.62 in the previous year[13]. - The gross profit decreased to approximately HKD 113.3 million from HKD 115.8 million, a decline of about 2.5 million HKD, equivalent to a decrease of approximately 2.2%[29]. - The profit attributable to the owners of the company was approximately HKD 13.5 million, down about 4.3% from HKD 14.1 million in 2018[29]. - Distribution business revenue increased to approximately HKD 265.3 million, up from HKD 255.4 million, an increase of about HKD 9.9 million, accounting for 51.1% of total revenue[31]. - Retail business revenue rose to approximately HKD 254.2 million, an increase of about HKD 57.5 million from HKD 196.7 million in 2018, representing 48.9% of total revenue[36]. - The group's revenue for the year ended March 31, 2019, was approximately HKD 519.5 million, an increase of about 14.9% compared to approximately HKD 452.1 million for the same period in 2018[50]. - The group's cost of sales for the year was approximately HKD 406.2 million, an increase of about 20.8% from approximately HKD 336.3 million in 2018, with a cost of sales to revenue ratio of approximately 78.2%[51]. - Gross profit for the year was approximately HKD 113.3 million, a decrease of about 2.2% from approximately HKD 115.8 million in 2018, resulting in a gross margin of approximately 21.8%[52]. - Net profit attributable to owners for the year was approximately HKD 13.5 million, a decrease of about 4.3% from approximately HKD 14.1 million in 2018, with an adjusted net profit of approximately HKD 14.7 million[58]. Retail and Distribution Growth - The retail network of Ten Ren Tea grew to 57 stores as of March 31, 2019, up from 49 stores the previous year[11]. - The number of self-operated retail stores increased from 33 to 49 within the fiscal year, reflecting a growth trend in the retail network[33]. - Average same-store sales growth for the retail stores was 0.2% for the fiscal year ending March 31, 2019, with average sales per store reaching HKD 6.05 million[38]. - The average price of beverage products increased from HKD 20.8 to HKD 21.8 per cup, while average daily sales rose from 21,400 to 26,600 cups[39]. - The company aims to strengthen its market position in Hong Kong and expand its product offerings with high-quality brands from around the world[22]. - The company continues to innovate in food retail, introducing more quality brands and products from around the world[21]. - The company plans to introduce new retail brands and enhance customer experience to strengthen its market position in the upcoming fiscal year[49]. - The company aims to expand its brand and product portfolio in the distribution business to maintain competitiveness and provide more choices for customers[49]. Corporate Governance - The board consists of seven members, including four executive directors and three independent non-executive directors[100]. - The company has adopted the corporate governance code principles as per the listing rules since its listing on March 14, 2018[94]. - The company aims to maintain a high level of corporate governance standards to protect shareholder interests[94]. - 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[94]. - The company has established a risk management system and internal control framework to ensure operational transparency and accountability[98]. - The board is responsible for leading and controlling the company and overseeing the overall management of the group’s business[98]. - The board will periodically review its structure and composition to maintain high corporate governance standards[95]. - The remuneration committee is responsible for establishing a formal and transparent procedure for setting remuneration policies for directors and senior management[107]. - The nomination committee has adopted a diversity policy to promote balanced development, considering factors such as gender, age, and professional experience in board appointments[108]. - The audit committee reviews financial statements and oversees internal control procedures, ensuring compliance with regulations[113]. - The company has organized training for directors to enhance their understanding of corporate governance and their responsibilities under listing rules[104]. - The board has established training programs for the qualifications and competencies of employees involved in accounting and financial reporting functions[126]. - The company has confirmed compliance with the standards of the securities trading code since its listing date[96]. Employee and Stakeholder Engagement - The group employed 805 employees as of March 31, 2019, an increase from 494 employees in 2018, with employee benefit expenses amounting to approximately HKD 98.1 million[72]. - Key stakeholders include shareholders, employees, suppliers, customers, the public, and government agencies, with communication methods such as press releases and annual reports[142]. - The group emphasizes a discrimination-free workplace and offers competitive compensation and benefits, ensuring fair wages and various types of leave for all employees[160]. - The group actively encourages employee participation in charitable activities and community service, aiming to strengthen stakeholder relationships[173]. - The group has established a formal reporting procedure for employees to report any issues without fear of retaliation[163]. Environmental and Social Responsibility - The group emphasizes product quality and compliance with applicable laws and regulations related to food safety and product responsibility[153]. - The group has established a quality assurance team to evaluate food ingredients and ensure compliance with safety standards[155]. - The group encourages suppliers to adopt green operations to minimize environmental impact[149]. - The group aims to balance effective operations with environmental protection while providing sustainable services[148]. - The group has set clear guidelines for maintaining high standards of environmental hygiene in its operations[155]. - The group actively engages with stakeholders to understand their concerns regarding environmental, social, and corporate governance compliance[140]. - The group has implemented a management tool and internal guidelines to ensure strict adherence to relevant laws and regulations[154]. - The group has established a zero-tolerance policy against bribery, extortion, fraud, and has not identified any significant violations related to these issues as of March 31, 2019[158]. - The group has implemented a comprehensive health and safety policy, ensuring compliance with industry standards and providing adequate training for new employees[164]. - The group is committed to reducing greenhouse gas emissions by monitoring energy usage and seeking opportunities for energy savings[174]. - The group has enhanced monitoring procedures for gasoline consumption and disclosed diesel consumption from outsourced logistics services as of March 31, 2019[178]. - The group has adopted a transportation plan with a third-party logistics company to minimize air pollution emissions by ensuring same-day deliveries to nearby locations[178]. - Total greenhouse gas emissions increased by 26% to 2,850.78 tons compared to 2,255.02 tons in the previous year[199]. - Total energy consumption rose by 45% to 3,259,213.70 kWh from 2,248,894.78 kWh year-on-year[199]. - Energy consumption per employee decreased slightly by 0.4% to 4,744.12 kWh per employee from 4,764.61 kWh[199]. - Scope 2 indirect energy emissions increased by 30% to 1,668.32 tons from 1,283.82 tons[199]. - The company aims to enhance energy efficiency by upgrading to high-efficiency appliances and LED lighting systems[180]. - The total amount of packaging materials used increased due to business expansion, although the per unit consumption improved[185]. - The company encourages customers to use reusable cups, offering a discount for those who bring their own[184]. - The company has implemented effective waste management practices, including recycling used cooking oil through a licensed company[186]. - Water consumption is regularly monitored, with measures taken to reduce usage based on analysis of high consumption areas[180].