Financial Performance - Total revenue for the six months ended September 30, 2019, was HKD 113.8 million, a slight increase from HKD 108 million in 2018, representing a growth of approximately 2.5%[3] - The net loss for the period was HKD 10.3 million, compared to a net loss of HKD 7.2 million in the previous year, indicating a deterioration in financial performance[7] - The group reported a loss before tax of HKD 10,324,000 for the six months ended September 30, 2019, compared to a loss of HKD 7,215,000 in the previous year, indicating a worsening financial performance[32] - The company experienced a total comprehensive loss of HKD (10,324,000) for the period, contributing to a retained loss of HKD (10,227,000) as of September 30, 2019[40] - The company reported a net cash outflow from operating activities of HKD (4,855,000) for the six months ended September 30, 2019, compared to HKD (151,000) for the same period in 2018[43] Revenue Breakdown - Retail segment revenue reached HKD 105.2 million, accounting for 92.5% of total revenue, compared to 93.6% in 2018[7] - Revenue for the six months ended September 30, 2019, was HKD 113,796,000, an increase of 5.3% from HKD 107,995,000 in the same period of 2018[82] - Retail furniture sales contributed HKD 105,247,000, up from HKD 101,116,000, reflecting a growth of 4.1% year-over-year[82] - Engineering project sales and consulting services increased significantly to HKD 3,078,000 from HKD 822,000, marking a growth of 274.4%[82] Assets and Liabilities - Cash and cash equivalents as of September 30, 2019, were HKD 55.4 million, down from HKD 59.5 million as of March 31, 2019[9] - Total non-current assets amounted to HKD 107,558,000, a significant increase from HKD 48,303,000 as of March 31, 2019[35] - Current assets decreased to HKD 114,357,000 from HKD 126,232,000, with cash and cash equivalents at HKD 55,400,000, down from HKD 59,469,000[35] - Total current liabilities rose to HKD 80,195,000 from HKD 56,038,000, primarily due to an increase in lease liabilities[35] - The company’s total non-current liabilities increased to HKD 41,610,000 from HKD 6,827,000, reflecting the impact of new accounting standards[37] Retail Operations - The retail division's revenue from "Ulferts" and "Ulferts Prestige" stores totaled HKD 82.9 million, maintaining the same sales level as the previous year, representing 78.7% of total retail revenue[7] - The company has a total of 20 retail points in Hong Kong, including 18 stores and 2 department store counters[6] - The company plans to enhance its product mix and strengthen the sales channels for its "Ulferts" brand, with a focus on increasing brand awareness[14] - The company plans to enhance its "at • home" retail line to cater to the demand for small living spaces, expanding its network to Kowloon Bay MegaBox[29] Marketing and Brand Strategy - The group is implementing a diversified marketing strategy, including television and print advertising, to enhance brand awareness and drive long-term growth[24] - The company has established several online shopping platforms to expand market coverage[6] - The company has been recognized as a "Quarterly Service Leader" in the furniture and home goods category by the Hong Kong Retail Management Association for two consecutive quarters in 2019[22] Accounting Standards and Financial Reporting - The adoption of HKFRS 16 resulted in an increase of lease liabilities by HKD 83,909,000 as of April 1, 2019[66] - The right-of-use assets increased by HKD 78,333,000, reflecting the impact of the new accounting standard[65] - The total liabilities increased by HKD 79,569,000 due to the transition to HKFRS 16[66] - The new accounting policy for right-of-use assets will be measured at cost less accumulated depreciation and any impairment losses[70] Market Conditions - The ongoing trade tensions and local social unrest are expected to continue impacting market demand for furniture, leading to a cautious market outlook[26] Governance and Compliance - The company has complied with all code provisions of the Corporate Governance Code during the reporting period[116] - The company’s board of directors consists of four executive directors and three independent non-executive directors as of the report date[121] - The company’s financial statements for the period have not been reviewed or audited by its auditor, but have been reviewed by the audit committee[121]

Financial Performance - Revenue for the year ended March 31, 2019, was HK$242,959,000, a decrease of 6% from HK$258,553,000 in 2018[8] - Gross profit for the same period was HK$152,264,000, down from HK$163,922,000, reflecting a decline of approximately 7%[8] - The company reported a net loss of HK$3,978,000 for the year, compared to a profit of HK$8,477,000 in the previous year[8] - Earnings before interest, tax, depreciation, and amortization (EBITDA) decreased significantly to HK$5,977,000 from HK$21,330,000, indicating a decline of about 72%[8] - The Group's total revenue decreased to HK$243.0 million for the year ended 31 March 2019, down from HK$258.6 million in 2018, reflecting a decline of approximately 6.2%[18] - Retail segment revenue amounted to HK$226.8 million, accounting for 93.3% of the Group's total revenue, compared to 92.6% in the previous year[18] - Gross profit decreased to HK$152.3 million, with a gross profit margin of 62.7%, down from 63.4% in 2018[18] - The Group recorded a net loss of HK$4.0 million for the year, a significant decline from a net profit of HK$8.5 million in 2018, indicating a turnaround from a net loss of HK$7.2 million in the first half of the year[19] Cash Flow and Financial Position - Cash and cash equivalents as of 31 March 2019 were HK$59.5 million, down from HK$83.4 million in 2018[24] - Bank borrowings decreased significantly to HK$4.0 million, resulting in a gearing ratio of 3.6%, down from 17.1% in the previous year[24] - The Group's current assets and current liabilities were approximately HK$126.2 million and HK$56.0 million, respectively, resulting in a current ratio of 2.3[25] - The net proceeds from the IPO in January 2018 were approximately HK$92.6 million, with actual utilization up to 31 March 2019 totaling HK$55.3 million[32] - Capital expenditure for opening "at • home" retail stores was HK$34.2 million, with actual use at HK$20.8 million[33] - The Group has available un-utilised banking facilities of approximately HK$79.3 million, providing flexibility for future development[24] Retail Operations and Product Offerings - As of March 31, 2019, the Group operated 20 points-of-sale in Hong Kong, including 18 stores and 2 department store counters[11] - The company has introduced a new retail line "at • home," targeting modern families with compact furniture solutions[11] - "Ulfenbo" products are distributed through over 200 dealers and various online shopping platforms, enhancing market coverage[11] - The Group offers more than 50 furniture brands across its showrooms, including international brands like Himolla and Gamma[38] - The "Dormire" specialty stores focus on enhancing the sleep experience for mass market consumers, with two new stores opened during the year[39] - The Group's diverse product portfolio includes mattresses, pillows, and other ancillary items under the "Ulfenbo" label, catering to various customer needs[42] Market Strategy and Future Outlook - The company aims to transform living spaces into ideal homes, targeting middle to high-income groups with its product offerings[11] - The Group is cautiously optimistic about the long-term outlook due to the continuous upward trend of GDP in China and resilient local property demand[51] - The Group plans to enhance market differentiation by introducing innovative products and expanding various sales channels[52] - A corner focusing on Italian tailor-made furniture has been established to capture demand for ultra-luxury, custom-made furniture[52] - The Group aims to solidify its market presence by expanding in the high-range and mid-range sectors[52] - The Group continues to seek potential locations for expanding its retail network[51] Corporate Governance and Management - The Group's overall management and strategic planning are overseen by the Executive Director and CEO, who has over 25 years of experience in retail and business development[62] - The Chief Operating Officer has been with the Group since July 2011, focusing on operational management and policy implementation, with over 16 years of corporate management experience[64] - The Group's Executive Director has been involved in management since July 1992, overseeing corporate management and business strategy, with over 30 years of diversified experience[65] - The Independent Non-executive Director has over 26 years of accounting experience and serves as the Chairperson of the Audit Committee[69] - The Company has adopted various policies to ensure compliance with corporate governance standards, emphasizing accountability, responsibility, and transparency[145] - The management is led by the Executive Committee, which comprises all Executive Directors and is responsible for day-to-day operations and key business decisions[160] Board Structure and Committees - The Board consists of seven Directors, including four Executive Directors and three Independent Non-executive Directors (INEDs) as of March 31, 2019[148] - The Audit Committee consists of three Independent Non-Executive Directors (INEDs) and held three meetings during the year[188][190] - The Remuneration Committee consists of three members, including two INEDs[193] - The Nomination Committee conducted two meetings during the year, focusing on the structure, size, and diversity of the Board[200] - The Company maintains a clear written terms of reference for all Board Committees[188] Shareholder Information and Dividends - No interim dividend was paid to shareholders during the Year, compared to HK$72,000,000 (HK$0.12 per share) in 2018[77] - The Directors did not recommend the payment of a final dividend for the Year[77] - As of March 31, 2019, the Company had no reserves available for distribution to shareholders, consistent with 2018[79] - As of March 31, 2019, the substantial shareholder AY Investments Holdings held 600,000,000 ordinary shares, representing 75% of the issued voting shares[100] Connected Transactions and Compliance - The total amount for the Master Agreement with AY Holdings was HK$1,168,000 for the year[119] - The Company complied with the disclosure requirements under Chapter 14A of the Listing Rules for the connected transactions[125] - The independent non-executive directors confirmed that the continuing connected transactions were conducted in the ordinary course of business and on normal commercial terms[124] - The auditor issued an unqualified letter regarding the Group's non-exempt continuing connected transactions[123]