Financial Performance - The company reported revenue of approximately HKD 1,505.08 million for the year ended March 31, 2022, representing a year-on-year increase of about 44.9% from HKD 1,038.95 million in 2021[5]. - Profit attributable to the owners of the company was approximately HKD 113.06 million, compared to HKD 135.22 million in the previous year[5]. - The total dividend for the year was HKD 0.19 per share, including the proposed third interim dividend of HKD 0.06 per share[5]. - Other income and gains decreased significantly by approximately 81.0% to HKD 8.35 million, primarily due to the absence of COVID-19 related government subsidies received in the previous year[24]. - Income tax expense for the year was approximately HKD 24.84 million, an increase of about 34.1% from HKD 18.52 million in 2021[28]. - Profit attributable to owners for the year was approximately HKD 113.06 million, a decrease of about 16.4% from HKD 135.22 million in 2021, mainly due to government subsidies related to COVID-19 in the previous year[29]. Revenue Sources - Retail business remained the largest revenue source, achieving a significant revenue growth of approximately 74.2% due to increased brand recognition and the 2021 consumption voucher scheme[6]. - The distribution business experienced a revenue increase of about 24.4% through effective supply of popular mobile phones and related services[6]. - The operating services segment contributed approximately HKD 348.76 million in revenue, showing stable performance despite a slight decline of about 0.5% year-on-year[20]. - Retail business revenue rose sharply by approximately 74.2% year-on-year, primarily due to the 2021 consumption voucher scheme and an expanded mobile phone brand portfolio[21]. - The distribution business revenue increased by approximately 24.4% year-on-year, driven by product diversification[21]. Business Strategy and Outlook - The company plans to strengthen its retail network and expand its product portfolio to improve customer shopping experience[8]. - The outlook for the company remains optimistic, anticipating recovery in Hong Kong's retail sales driven by the second phase of the consumption voucher scheme[8]. - The company aims to optimize its business model and seek diversification opportunities for sustainable growth[8]. - The company plans to continue enhancing its retail network and e-commerce business while investing in employee training and retention[14]. - The company aims to maintain a cautious yet confident approach in expanding its retail network and optimizing its e-commerce platform[14]. Corporate Governance - The company has adhered to corporate governance codes, ensuring compliance with regulatory requirements throughout the fiscal year[62]. - The board currently consists of six executive directors and three independent non-executive directors, ensuring a balanced governance structure[64]. - The company has established various committees, including audit, remuneration, and nomination committees, to strengthen governance practices[61]. - The management team has extensive experience in their respective fields, contributing to the company's strategic direction and operational success[53]. - The company has an independent management team led by experienced senior management, responsible for executing the group's policies and strategies[67]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the importance of effective environmental, social, and governance (ESG) management strategies for corporate success[114]. - The board has established environmental goals and will regularly review progress towards achieving these targets[115]. - Key environmental issues identified include energy management and greenhouse gas emissions[120]. - The company has committed to optimizing resource efficiency and recycling wherever feasible[126]. - The group has implemented energy-saving plans to enhance equipment efficiency and reduce energy consumption, resulting in 23 retail stores receiving a gold award for energy-saving activities[129]. Employee Management - The group employed 616 full-time employees as of March 31, 2022, down from 645 in 2021[46]. - The group emphasizes employee rights and adheres to labor laws, ensuring competitive compensation and benefits for full-time employees[136]. - The group provides various types of leave, including annual leave, sick leave, and maternity leave, in addition to mandatory contributions to social insurance and retirement plans[136]. - The employee turnover rate remained stable at 23% for both 2021/22 and 2020/21[160]. - The average training hours per employee was 14 hours, with 53% of employees receiving training in 2021/22, compared to 55% in 2020/21[160]. Risk Management and Compliance - The company has established policies to prevent child labor and forced labor, ensuring compliance with relevant laws[182]. - The group has not encountered any violations related to labor standards, including child labor and forced labor, during the year[135]. - The group has not encountered any violations related to personal data protection or intellectual property laws during the year[147]. - The group has not been aware of any corruption lawsuits against itself or its employees during the year[153]. - The company outlined its policies regarding the prevention of bribery, extortion, fraud, and money laundering, reflecting its governance standards[191].

Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 677,677,000, representing a 30.8% increase from HKD 517,850,000 in the same period of 2020[6] - Gross profit for the period was HKD 260,028,000, with a gross margin of approximately 38.4% compared to 48.5% in the previous year[6] - Profit before tax decreased to HKD 71,232,000, down 16.7% from HKD 85,552,000 in the prior year[6] - Net profit attributable to shareholders was HKD 57,337,000, a decline of 23.7% from HKD 75,145,000 in the same period of 2020[6] - Basic and diluted earnings per share were HKD 0.14, down from HKD 0.19 in the previous year[8] - Retail business sales increased to HKD 465,331,000 from HKD 304,250,000, a growth of 52.8% year-over-year[27] - Operating services revenue was HKD 176,399,000, slightly up from HKD 172,865,000, indicating a 1.5% increase[27] - The company reported a pre-tax profit of HKD 71,232,000, compared to HKD 85,552,000 in the previous year, reflecting a decrease of 16.8%[32] - The group’s net profit attributable to shareholders for the period was approximately HKD 57.34 million, a significant decrease from HKD 75.15 million in 2020, largely due to a one-time government subsidy received last year[112] Assets and Liabilities - Total assets as of September 30, 2021, were HKD 401,783,000, compared to HKD 401,314,000 as of March 31, 2021[11] - Current liabilities increased to HKD 365,942,000 from HKD 243,962,000, indicating a significant rise in short-term obligations[11] - The company’s current liabilities net value was HKD 9,080,000, indicating a stable financial position[23] - The company’s total liabilities included bank borrowings of HKD 52,022,000 that do not require repayment within one year, indicating manageable debt levels[23] - Trade payables increased to HKD 60,042,000 as of September 30, 2021, from HKD 31,293,000 as of March 31, 2021, representing a growth of 91.8%[69] - Bank borrowings as of September 30, 2021, totaled HKD 200,042,000, up from HKD 131,205,000 as of March 31, 2021, indicating a 52.5% increase[73] - The group had unutilized bank financing of approximately HKD 232.16 million available for future funding needs as of September 30, 2021[118] Cash Flow - The net cash generated from operating activities for the six months ended September 30, 2021, was HKD 114,286,000, an increase of 9.5% compared to HKD 104,772,000 for the same period in 2020[18] - The net cash used in investing activities amounted to HKD (60,777,000), with significant purchases including financial assets at fair value of HKD (45,000,000) and prepayments for property, plant, and equipment of HKD (957,000)[19] - The net cash raised from financing activities was HKD 373,976,000, compared to HKD 204,931,000 in the previous year, indicating a 82.2% increase in financing[19] - The cash and cash equivalents increased by HKD 38,646,000, reaching HKD 109,500,000 as of September 30, 2021, compared to HKD 67,561,000 in the previous year[19] Dividends and Shareholder Information - The company announced an interim dividend of HKD 0.07 per share for the period, compared to HKD 0.06 per share in the previous year, representing a 16.67% increase[52] - The second interim dividend declared is HKD 0.07 per share, an increase from HKD 0.06 per share in 2020, to be paid on or around December 24, 2021[122] - CKK Investment holds 220,000,000 shares, representing approximately 54.49% of the company's issued shares[143] - Major shareholders include CKK Investment Limited and Amazing Gain Limited, both holding 220,000,000 shares, equating to 54.49%[143] - The spouses of the Zhang brothers, 鄧鳳賢 and 楊可琪, hold 240,506,000 and 240,638,000 shares respectively, representing 59.57% and 59.60% of the issued shares[143] Operational Highlights - The company’s operations are primarily based in Hong Kong, generating 100% of its revenue from this location during the reporting period[36] - The group operated 82 retail stores as of the report date, contributing to a substantial growth in retail revenue[103] - The overall retail business revenue increased significantly, benefiting from the government's consumption voucher scheme and the stabilization of the COVID-19 situation[103] - The group is optimistic about retail sales in the second half of the fiscal year 2021/2022, driven by the distribution of consumption vouchers[128] Governance and Compliance - The company has adopted the Corporate Governance Code as per the listing rules, ensuring compliance with governance standards[146] - The audit committee, established on May 20, 2014, is responsible for reviewing financial statements and overseeing the financial reporting system, risk management, and internal controls[149] - The audit committee consists of three independent non-executive directors, with Mr. Lin Yulong serving as the chairman[149]

Financial Performance - The company reported revenue of approximately HKD 1,038.95 million for the fiscal year ending March 31, 2021, a decrease from HKD 1,087.24 million in 2020[10]. - Profit attributable to the company's owners increased to approximately HKD 135.22 million, representing a 68.6% increase compared to HKD 80.20 million in 2020[10]. - The company's total revenue for the fiscal year ending March 31, 2021, was approximately HKD 1,038.95 million, a decrease of about 4.4% compared to HKD 1,087.24 million in the previous year[29]. - Retail business revenue decreased by approximately 5.7% year-on-year, primarily due to the impact of the COVID-19 pandemic[29]. - The mobile distribution and related services segment saw a revenue increase of approximately 46.2%, attributed to a diversified product range[29]. - The revenue from providing paging and other telecommunications services decreased by approximately 18.9%, reflecting a continuous decline in the number of paging service users[29]. - The operating services segment's revenue decreased by approximately 3.7%, mainly due to intense competition in the mobile telecommunications market[29]. - Other income and gains for the fiscal year amounted to approximately HKD 43.92 million, a significant increase of about 704.4% compared to HKD 5.46 million in the previous year, mainly due to government subsidies related to COVID-19[31]. - The company's profit attributable to owners for the year ended March 31, 2021, was approximately HKD 135.22 million, a significant increase of about 68.6% from HKD 80.20 million in 2020, driven by effective cost-saving strategies and government subsidies related to COVID-19 relief measures[35]. Dividends - The company declared a fourth interim dividend of HKD 0.08 per share, bringing the total dividend for the year to HKD 0.26 per share[10]. - The board declared a fourth interim dividend of HKD 0.08 per share for the year ended March 31, 2021, compared to HKD 0.10 per share in 2020[41]. - The company maintained a dividend policy that aims to balance appropriate returns to shareholders with future growth, declaring dividends quarterly and potentially special dividends in strong performance years[88]. - The company reported a third interim dividend of HKD 0.06 per share paid on March 19, 2021, and declared a fourth interim dividend of HKD 0.08 per share for the year ending March 31, 2021[180]. Retail and E-commerce - The retail business remains the primary revenue source, supported by a network of 82 stores and an expanded product portfolio[11]. - The e-commerce sector showed steady progress, benefiting from public acceptance, particularly through the Mango Mall platform[11]. - The company plans to continue expanding its retail network and enhancing its e-commerce business through product diversification and the "Mango Dollar" program[20]. - The company aims to strengthen its retail network to provide a high-quality shopping experience and enhance employee relations for operational efficiency[14]. - A major goal for the upcoming year is the renovation and upgrade of 18 retail network stores to enhance the shopping experience[47]. - The retail network consists of 82 stores, generating approximately HKD 616.02 million in revenue during the review year[25]. Corporate Governance - The company has established an audit committee, remuneration committee, and nomination committee, each with specific written terms of reference[61]. - The board consists of six executive directors and three independent non-executive directors, ensuring a balanced governance structure[64]. - The company has adhered to the corporate governance code throughout the fiscal year ending March 31, 2021, with some deviations disclosed in the "Board Functions" section[62]. - The management team is led by experienced executives, including the CEO and CFO, who provide monthly updates to the board on the company's performance and outlook[67]. - The company has a clear policy for the appointment and re-election of directors, ensuring accountability and transparency[69]. - The company has three independent non-executive directors, complying with Listing Rule 3.10(1)[71]. - The Audit Committee, established on May 20, 2014, includes three independent non-executive directors and is responsible for reviewing financial statements and risk management systems[76][77]. - The company has received written confirmations regarding the independence of its independent non-executive directors[71]. - The company has implemented corporate governance measures to monitor compliance with the non-competition agreement, including annual reviews by independent non-executive directors[184]. Employee Relations and Development - As of March 31, 2021, the company employed 645 full-time employees, an increase from 641 in 2020[46]. - The group provides competitive compensation packages and benefits, including mandatory contributions to social insurance and retirement plans for eligible employees in Shenzhen and Hong Kong[134]. - The group emphasizes employee training and development, conducting regular performance evaluations to identify future training needs and support career advancement[136]. - The average training hours per employee decreased to 14 hours (55% of employees trained) from 23 hours (54% trained) in the previous year[155]. - The company aims to improve employee retention and training effectiveness as part of its strategic initiatives[161]. - The overall employee training participation rate has slightly increased from the previous year, indicating a focus on employee development[161]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers key performance indicators related to the company's operations in Hong Kong and its Shenzhen office in China[110]. - The board aims to establish effective ESG risk management mechanisms and regularly reviews the content and quality of the ESG report[112]. - An independent third-party ESG consultant was engaged to identify key issues and provide recommendations on the company's ESG performance[112]. - The company has disclosed quantitative environmental and social key performance indicators in its ESG report, allowing stakeholders to understand its performance comprehensively[111]. - The group has adopted energy-saving plans to enhance equipment efficiency and reduce energy consumption, with 23 retail stores awarded gold in the "Outdoor Lighting Charter" for energy-saving efforts[126]. - The group strictly adheres to environmental laws and regulations, with no reported violations during the year[120]. - The group encourages employee participation in environmental protection through reminders and initiatives to save energy and resources[127]. - The group has established recycling bins in offices to manage waste effectively, ensuring proper disposal of both harmless and hazardous waste[125]. Compliance and Risk Management - The company has implemented strict compliance with laws regarding bribery, extortion, fraud, and money laundering, ensuring a fair competitive market environment[143]. - The company has not reported any violations related to personal data protection and intellectual property laws during the year[141]. - The company has implemented measures to prevent child labor and forced labor in its employment practices[169]. - The group has not encountered any violations of labor and employment laws, including child labor and forced labor regulations, during the year[133]. - The company has policies in place to manage environmental and social risks in its supply chain[173]. Customer Relations - The company has established a return and exchange procedure allowing customers to apply for returns or exchanges within 7 days after signing the receipt[142]. - The company’s retail stores have been recognized as "Quality Tourism Services Scheme - Accredited Merchants" for over ten consecutive years by the Hong Kong Tourism Board[142]. - The largest customer, New Mobile Communications, accounted for approximately HKD 400.04 million, representing about 38.5% of the total revenue for the year ended March 31, 2021[188]. - The top five customers contributed approximately 41.9% of the total revenue, while the top five suppliers accounted for about 85.2% of total procurement for the same period[188].

Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 517.85 million, a decrease of 12.6% from HKD 592.78 million in the same period of 2019[4] - Gross profit margin improved to 48.9% compared to 44.5% in the previous year, with cost of goods sold decreasing to HKD 264.91 million from HKD 327.87 million[4] - Net profit for the period was HKD 75.15 million, representing a significant increase of 63.8% from HKD 45.79 million in the prior year[4] - Total comprehensive income for the period was HKD 75.23 million, up from HKD 45.78 million in the same period last year[7] - Basic and diluted earnings per share increased to HKD 0.19, compared to HKD 0.12 in the previous year[9] - The operating profit for the group was HKD 95,690,000, compared to HKD 59,119,000 for the same period last year, reflecting an increase of approximately 61.5%[34] - The group reported a pre-tax profit of HKD 85,552,000 for the period[34] - The group reported a profit attributable to shareholders of HKD 75,145,000 for the six months ended September 30, 2020, compared to HKD 48,109,000 in the same period of 2019, reflecting an increase of approximately 56.3%[50] Revenue Breakdown - Retail business revenue was HKD 308,677,000, down from HKD 372,963,000 in the previous year, indicating a decrease of about 17.3%[30] - The revenue from telecommunications services was HKD 19,797,000, down from HKD 23,540,000 in the previous year, a decrease of about 16.5%[30] - The group’s distribution business generated revenue of HKD 16,511,000, compared to HKD 15,468,000 in the previous year, showing an increase of approximately 6.7%[30] - The group’s operating services revenue was HKD 172,865,000, consistent with the previous year’s performance[34] - The group's total revenue from major customers accounted for over 10%, with Customer I generating HKD 172,596,000 in the six months ended September 30, 2020, compared to HKD 180,442,000 in the same period of 2019, representing a decrease of approximately 4.7%[40] Cash Flow and Investments - The net cash generated from operating activities was HKD 128,129,000, compared to HKD 123,163,000 in the previous year[20] - The net cash used in investing activities was HKD 2,873,000, a decrease from HKD 5,701,000 in the previous year[20] - The net cash used in financing activities was HKD 98,769,000, compared to HKD 115,793,000 in the previous year[23] - The total cash and cash equivalents as of September 30, 2020, amounted to HKD 67,561,000, an increase from HKD 57,148,000 in the previous year[23] - The company’s investment in property, plant, and equipment for the period was HKD 6,377,000, similar to HKD 6,371,000 in the previous year[20] Assets and Liabilities - Non-current assets as of September 30, 2020, totaled HKD 444.59 million, slightly up from HKD 443.63 million as of March 31, 2020[11] - Current liabilities increased to HKD 264.02 million from HKD 266.10 million, with a net current liability position of HKD 48.54 million[12] - Total equity attributable to owners of the company rose to HKD 369.41 million from HKD 358.79 million[14] - As of September 30, 2020, the group's net current liabilities amounted to HKD 48,539,000, with available bank financing of HKD 327,218,000[27] - The group had unutilized bank financing of approximately HKD 327.22 million as of September 30, 2020, available for future funding needs[118] Dividends and Shareholder Information - The company declared dividends amounting to HKD 64,600,000 during the period[19] - The group declared an interim dividend of HKD 0.06 per share for the 2020/21 fiscal year, compared to HKD 0.03 per share in 2019, indicating a 100% increase in the dividend payout[49] - As of September 30, 2020, CKK Investment Limited holds 220,000,000 shares, representing approximately 54.49% of the company's issued shares[139] - The total number of shares issued by the company as of September 30, 2020, is 403,753,000[139] Corporate Governance and Management - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with the relevant regulations[147] - The company’s CEO and CFO provide monthly updates to the board regarding the financial status and outlook of the company[147] - The Audit Committee was established on May 20, 2014, to oversee financial reporting and risk management[151] - The Audit Committee consists of two independent non-executive directors, including Mr. Lin Yulong as the chairman[151] Future Outlook and Strategy - The company plans to continue focusing on operational efficiency and exploring new market opportunities to drive future growth[4] - The group plans to expand its e-commerce business through strategies like the "Mango Dollar" program to attract more customers to its online platform[125] - The group will continue to develop its retail network by opening new stores and renovating existing ones to enhance customer experience[125]

Financial Performance - The company's revenue decreased to approximately HKD 1,087.24 million for the fiscal year ending March 31, 2020, down from HKD 1,239.25 million in the previous year, representing a decline of about 12.3%[10] - Profit attributable to the company's owners was approximately HKD 80.20 million, compared to HKD 131.75 million in the previous year, reflecting a decrease of approximately 39%[10] - Revenue from the distribution business decreased by approximately 12.8% year-on-year due to changing market conditions[25] - Revenue from paging and other telecommunications services fell by approximately 20.1% year-on-year, reflecting a decline in subscriber numbers[25] - Retail business revenue decreased by approximately 14.7% year-on-year, primarily due to the impact of social unrest and the COVID-19 pandemic[25] - Other income and gains, primarily from rental and sub-rental income, slightly decreased to approximately HKD 5.46 million from HKD 5.80 million in the previous year, a decline of about 5.9%[27] - Financing costs for the year included bank interest of approximately HKD 5.47 million, an increase from HKD 4.90 million in 2019, and lease liabilities interest of approximately HKD 2.91 million, which was not present in the previous year[30] - Income tax expense for the year was approximately HKD 16.67 million, a decrease of about 42.7% from HKD 29.11 million in 2019, mainly due to a reduction in profit before tax[31] - The company's total revenue for the fiscal year ending March 31, 2020, was approximately HKD 1,087.24 million, a decrease of about 12.3% compared to HKD 1,239.25 million in the previous year[25] Dividends - The board proposed a fourth interim dividend of HKD 0.10 per share, bringing the total dividend for the year to HKD 0.22 per share[10] - The board declared a fourth interim dividend of HKD 0.1 per share for the year ended March 31, 2020, compared to HKD 0.06 per share in 2019[38] - The company has adopted a dividend policy that requires board approval for any dividend declaration, which will depend on operating performance, working capital, financial condition, future prospects, and other relevant factors[86] - The company has no preset dividend payout ratio, allowing flexibility based on various factors[86] Retail Operations - The company operated a total of 80 retail stores as of March 31, 2020, which contributed the highest revenue among its business segments[11] - The company maintained 80 retail stores during the review period, despite a challenging market environment[22] - The Mango Mall e-commerce platform received positive feedback and has been favored by customers since its launch in 2017, capitalizing on online retail trends[11] - The online platform Mango Mall showed resilience, recording stable revenue growth and an increase in membership numbers[22] - Future outlook indicates continued expansion of the retail network despite a bleak economic outlook for Hong Kong, with plans to increase the workforce and provide comprehensive training for employees[13] - The company plans to expand its retail network prudently, focusing on opening new stores in prime locations and renovating existing stores to enhance the overall shopping experience[44] Employee Management - The group employed 641 full-time employees as of March 31, 2020, an increase from 556 in 2019[43] - Continuous training will be provided to employees to improve service quality and maintain good relationships with staff[44] - The company has implemented a performance evaluation system to enhance employee motivation, which influences promotions and salary adjustments[132] - The company organized various employee activities, including a company trip to Thailand and Christmas parties, to promote a healthy work-life balance[128] - The percentage of male employees receiving training was 61%, while female employees receiving training was 45%[145] - The average training hours per male employee were 23, while for female employees, it was also 23[145] Corporate Governance - The company has established an audit committee, remuneration committee, and nomination committee in compliance with the listing rules[59] - The board consists of six executive directors and three independent non-executive directors, ensuring a diverse governance structure[62] - The company has adhered to the corporate governance code throughout the fiscal year ending March 31, 2020, with some exceptions noted in the board functions section[60] - The independent non-executive directors serve fixed terms of three years, ensuring regular re-evaluation of board composition[68] - The company’s management team is led by experienced professionals, providing updates to the board on significant changes affecting the company’s performance and outlook[65] - The company has a clear policy for the appointment, re-election, and removal of directors, ensuring compliance with governance standards[67] - The company has received written confirmations regarding the independence of its independent non-executive directors[70] - The company has established appropriate insurance coverage for potential legal actions against directors and the company secretary[74] - The company has implemented corporate governance measures to monitor compliance with non-competition agreements by major shareholders[176] Environmental, Social, and Governance (ESG) Practices - The environmental, social, and governance (ESG) report covers the company's performance in sustainability practices during the fiscal year from April 1, 2019, to March 31, 2020[106] - The board is responsible for overseeing and reporting on ESG policies and identifying related risks[110] - The company aims to enhance stakeholder engagement to gather constructive feedback for improving governance practices[114] - The company has engaged independent third-party consultants to collect stakeholder opinions on ESG matters[111] - The company is committed to maintaining supportive and trusting relationships with stakeholders through diverse communication channels[115] - The company strictly adheres to environmental laws and regulations, including the Environmental Protection Law of the People's Republic of China and the Air Pollution Prevention and Control Law[118] - The company has implemented energy-saving plans to improve efficiency and reduce energy consumption, utilizing natural light and encouraging employees to use energy-saving modes on devices[121] - The company’s 23 retail stores received a gold award from the Hong Kong Environmental Protection Department for their active support of energy-saving activities[122] - The company aims to reduce resource consumption by promoting double-sided printing, recycling paper, and encouraging electronic transactions to minimize paper waste[123] Financial Position - As of March 31, 2020, the group had a net current liability of approximately HKD 62.07 million and cash and cash equivalents of approximately HKD 40.97 million[33] - The group had a debt-to-equity ratio of approximately 41.0% as of March 31, 2020, down from 59.2% in 2019, based on total borrowings of approximately HKD 147.02 million[33] - As of March 31, 2020, the company's distributable reserves amounted to approximately HKD 278.27 million, up from HKD 204.75 million in 2019[182] Share Option Plan - The total number of shares available for issuance under the share option plan is 29,104,000 shares, accounting for approximately 7.2% of the total issued shares as of the report date[196] - Each participant in the share option plan is limited to a maximum of 1% of the total issued shares in any 12-month period, and for directors or major shareholders, the limit is 0.1% of the issued shares with a total value not exceeding HKD 5 million[196] - The share option plan is valid for 10 years from May 20, 2014, leaving approximately 4 years remaining[199] - The exercise price for shares under the share option plan will be determined by the board but cannot be lower than the higher of the closing price on the offer date or the average closing price over the preceding 5 trading days[198] Health and Safety - The company has implemented safety training and health measures in response to the COVID-19 pandemic, including providing masks and requiring health declarations[131] - The company has not reported any violations of relevant laws and regulations during the year[119] - There were no reported incidents of work-related deaths or days lost due to occupational injuries during the year[130] - The company has measures in place to avoid child labor and forced labor in its recruitment practices[155]

Financial Performance - Revenue for the six months ended September 30, 2019, was HKD 592.776 million, a decrease of 4.5% from HKD 619.011 million in the same period of 2018[9]. - Net profit for the period was HKD 45.794 million, down 27.7% from HKD 63.195 million in the previous year[9]. - Total comprehensive income for the period was HKD 45.780 million, compared to HKD 63.247 million in the same period last year[11]. - Basic and diluted earnings per share were both HKD 0.12, down from HKD 0.16 in the previous year[12]. - The company reported a profit of HKD 64,241,000 for the period, with total comprehensive income amounting to HKD 63,195,000 after accounting for non-controlling interests[18]. - Profit for the period was approximately HKD 48.11 million, down from HKD 64.24 million in 2018[122]. - The company reported a basic and diluted earnings of HKD 48,109,000 for the six months ended September 30, 2019, down from HKD 64,241,000 in the same period of 2018[72]. Revenue Breakdown - Retail business revenue from mobile phone sales and related services was HKD 372,963,000, down from HKD 377,789,000 year-on-year, indicating a decrease of about 1.6%[53]. - The group’s distribution business generated revenue of HKD 15,468,000, down from HKD 19,698,000, reflecting a decline of about 21.3%[53]. - The group’s operating services revenue was HKD 180,805,000, consistent with the previous year’s performance[58]. - Revenue from mobile distribution and related services fell by approximately 21.5% to about HKD 15.47 million, down from HKD 19.70 million in 2018[124][128]. - Revenue from paging and other telecommunications services decreased by approximately 23.8%, reflecting a decline in the total number of users for these services[128]. Expenses and Costs - Gross profit margin decreased to 44.8% from 45.5% year-on-year, with cost of goods sold at HKD 327.865 million[9]. - Financing costs increased to HKD 4.343 million from HKD 1.985 million year-on-year[9]. - The company incurred interest expenses of HKD 4,343,000 for bank borrowings and overdrafts, compared to HKD 1,985,000 in the previous year[67]. - Other operating expenses were approximately HKD 53.62 million, significantly down from HKD 101.55 million in 2018, mainly due to the adoption of HKFRS 16[130]. Assets and Liabilities - Non-current assets totaled HKD 482.753 million as of September 30, 2019, an increase from HKD 429.112 million as of March 31, 2019[14]. - Current liabilities amounted to HKD 314.984 million, slightly up from HKD 304.579 million as of March 31, 2019[15]. - The company reported a net asset value of HKD 346.991 million, down from HKD 351.369 million as of March 31, 2019[17]. - The total asset value increased by HKD 87,422 thousand due to the adoption of HKFRS 16[41]. - The lease liabilities increased by HKD 56,189 thousand (current) and HKD 32,936 thousand (non-current), resulting in a total liability increase of HKD 89,125 thousand[41]. Cash Flow and Financing - The net cash generated from operating activities for the six months ended September 30, 2019, was HKD 123,163,000, compared to HKD 84,158,000 for the same period in 2018, representing a year-on-year increase of approximately 46.4%[21]. - The total cash and cash equivalents as of September 30, 2019, amounted to HKD 57,148,000, down from HKD 74,723,000 at the end of the previous period, indicating a decrease of about 23.5%[23]. - The company raised bank borrowings of HKD 285,663,000 during the reporting period, compared to HKD 305,510,000 in the same period last year, reflecting a decrease of approximately 6.0%[23]. - The company expects to generate sufficient cash flow to maintain its operations, supported by available bank financing of HKD 305,666,000 as of the reporting date[27]. Shareholder Information - The company had a total of 403,753,000 shares issued as of September 30, 2019[162]. - The Zhang brothers collectively held approximately 54.49% of the company's issued shares through CKK Investment, which owns 220,000,000 shares[161]. - The company declared an interim dividend of HKD 0.06 per share for the 2018/19 fiscal year, totaling HKD 24,225,000[71]. - The second interim dividend declared was HKD 0.03 per share, down from HKD 0.06 per share in 2018, to be paid on or around December 16, 2019[141][148]. Compliance and Governance - The company has complied with the Corporate Governance Code, except for certain deviations mentioned[170]. - The Audit Committee was established on May 20, 2014, to oversee financial reporting and risk management[174]. - The Audit Committee consists of three independent non-executive directors, with Mr. Lin Yulong as the chairman[175]. - The company confirmed compliance with the standards set out in the Listing Rules regarding securities transactions by directors during the period[166].

Financial Performance - For the fiscal year ending March 31, 2019, Telecom Digital Holdings Limited reported revenue of approximately HKD 1,239.25 million, a decrease of about 4.5% compared to HKD 1,297.57 million in 2018[9]. - The profit attributable to owners of the company was approximately HKD 131.75 million, representing an increase of about 2.8% from HKD 128.17 million in 2018[9]. - Retail business revenue slightly decreased by approximately 1.0% to about HKD 766.42 million, down from HKD 773.80 million in the previous year[24]. - Distribution business revenue decreased by approximately 73.4% due to changes in the operating models and requirements of certain mobile phone manufacturers[24]. - Revenue from providing operational services reached a new high of approximately HKD 387.76 million, an increase of about 11.0% compared to the previous year[25]. - Other income, primarily from rental and sub-rental, was approximately HKD 5.80 million, a slight decrease of about 3.8% from HKD 6.03 million in 2018[27]. - Financing costs for the year were approximately HKD 4.90 million, an increase from HKD 3.71 million in 2018, primarily due to interest expenses on bank borrowings[30]. - The group’s reserves available for distribution to shareholders amounted to approximately HKD 204.75 million as of March 31, 2019, compared to HKD 171.35 million in 2018[160]. Business Strategy and Operations - The retail business segment contributed approximately 61.9% of total revenue, with a new e-commerce platform, Mango Mall, showing positive performance and increasing membership[10]. - The company plans to expand its retail network and relocate stores to prime locations to enhance customer experience and attract new customers[12]. - Telecom Digital Holdings Limited aims to diversify its business to maintain market position and increase market share and brand awareness[12]. - The company has strategically reduced the scale of paging and Mobitex support services in response to market trends and technological developments[10]. - The company plans to strategically expand its retail network and improve operational efficiency to drive continuous growth[16]. - The company will further explore opportunities to create new growth drivers, including investments in the restaurant group, Lik Tin[16]. Corporate Governance - The company has maintained compliance with the corporate governance code throughout the fiscal year ending March 31, 2019, with specific deviations disclosed in the "Board Functions" section[59]. - The company has established an audit committee, a remuneration committee, and a nomination committee, each with defined written terms of reference[58]. - The company has adopted the standard code of conduct for securities trading by directors, confirming compliance for the fiscal year ending March 31, 2019[60]. - The board consists of six executive directors and three independent non-executive directors[61]. - The company has implemented corporate governance measures to monitor compliance with the non-competition agreement, including annual reviews by independent non-executive directors[155][158]. - The company’s major shareholders have confirmed compliance with the non-competition commitments for the year ended March 31, 2019[154][158]. Employee and Human Resources - The group employed 556 full-time employees as of March 31, 2019, a decrease from 569 in 2018[42]. - The company emphasizes the importance of human capital and regularly assesses employee performance and training needs to maintain competitiveness[120]. - The average training hours per employee were 23 hours, with 66% of male employees and 44% of female employees receiving training[132]. - Employees are entitled to various types of leave, including annual leave, sick leave, and maternity leave, in addition to statutory holidays[119]. - The company regularly reviews the compensation structure for full-time employees to ensure competitive remuneration packages[119]. Environmental, Social, and Governance (ESG) - The company is committed to sustainable development principles and has implemented various initiatives to fulfill its social responsibilities during the reporting period[104]. - The environmental, social, and governance (ESG) report covers the company's performance in retail sales and distribution services in Hong Kong for the year from April 1, 2018, to March 31, 2019[105]. - The company encourages employees to participate in environmental protection initiatives, such as reducing paper usage and promoting electronic transactions[116]. - The company has established recycling programs in its offices to manage waste and promote sustainability[113]. - The company emphasizes the importance of environmental sustainability in its operations, despite primarily being a service-oriented business[113]. Shareholder Information - A fourth interim dividend of HKD 0.06 per share was proposed, bringing the total dividend for the year to HKD 0.24 per share[9]. - The third interim dividend of HKD 0.06 per share was paid on March 15, 2019, and the fourth interim dividend of HKD 0.06 per share is expected to be paid around July 19, 2019[151][152]. - The company maintains a dividend policy that balances shareholder returns with future growth, typically declaring dividends quarterly[84]. - The annual general meeting is scheduled for September 4, 2019, with a suspension of share transfer registration from August 29 to September 4, 2019[153]. Risk Management and Compliance - The audit committee conducted a review of the financial statements before submission to the Board, ensuring compliance with financial controls and risk management systems[76]. - The company has maintained an effective internal control system, which was reviewed and deemed sufficient as of March 31, 2019[94]. - The board is responsible for overseeing the company's corporate governance policies and practices, ensuring compliance with legal and regulatory requirements[93]. Customer Engagement - The company has established multiple channels to collect customer feedback and has been recognized for its customer service performance[123]. - The company encourages shareholder participation in annual general meetings, providing a platform for suggestions and feedback[97]. - The company has established a website to facilitate effective communication and provide the latest information related to its business[100].