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].