Financial Performance - Revenue for the first quarter of 2019 was HKD 6,117,000, a decrease of 24.4% compared to HKD 8,082,000 in the same period of 2018[22] - Gross profit for the first quarter of 2019 was HKD 2,206,000, down from HKD 2,356,000 in the first quarter of 2018, representing a decline of 6.4%[22] - The company reported a loss before tax of HKD 2,366,000 for the first quarter of 2019, compared to a loss of HKD 1,334,000 in the same period of 2018, indicating a worsening of 77.4%[22] - Total comprehensive loss for the period was HKD 2,374,000, compared to HKD 1,370,000 in the first quarter of 2018, reflecting an increase of 73.4%[22] - Basic loss per share for the first quarter of 2019 was HKD 0.24, compared to HKD 0.14 in the same period of 2018, representing a 71.4% increase in loss per share[22] - The company incurred administrative expenses of HKD 2,445,000 in the first quarter of 2019, significantly higher than HKD 1,413,000 in the same period of 2018, marking an increase of 72.8%[22] - Other income decreased to HKD 90,000 in the first quarter of 2019 from HKD 928,000 in the same period of 2018, a decline of 90.3%[22] - Sales and distribution expenses rose to HKD 2,222,000 in the first quarter of 2019, compared to HKD 1,740,000 in the same period of 2018, an increase of 27.7%[22] Revenue Breakdown - Revenue from Germany, Austria, France, and Switzerland accounted for approximately 66.4%, 19.1%, 8.8%, and 5.7% of total revenue, respectively, for the three months ended March 31, 2019[39] - Major customers contributing over 10% of total revenue included Customer A with HKD 3,212,000, Customer B with HKD 737,000, and Customer C with HKD 736,000[41] - The total revenue from clothing procurement agents, fashion stores, and department stores was HKD 4,730,000, down from HKD 5,303,000 in the same period last year[46] - The group's revenue decreased by 24.3% from HKD 8,100,000 for the three months ended March 31, 2018, to HKD 6,100,000 for the three months ended March 31, 2019, primarily due to reduced earnings from multiple clients in Germany, France, and Switzerland[63] Expenses and Costs - Cost of sales decreased by 31.76% from HKD 5,700,000 for the three months ended March 31, 2018, to HKD 3,900,000 for the three months ended March 31, 2019, consistent with the decline in sales[64] - Gross profit for the three months ended March 31, 2019, was HKD 2,200,000, with a gross margin increase from 29.2% in 2018 to 36.1% in 2019, attributed to a shift in the client portfolio[65] - Other income significantly dropped from HKD 900,000 for the three months ended March 31, 2018, to HKD 100,000 for the three months ended March 31, 2019, mainly due to a decrease in financial guarantee income[68] - Selling and distribution expenses increased from HKD 1,700,000 in 2018 to HKD 2,200,000 in 2019, primarily due to higher costs associated with trade exhibitions[70] - Administrative expenses rose from HKD 1,400,000 for the three months ended March 31, 2018, to HKD 2,400,000 for the same period in 2019, driven by increased employee costs and professional fees related to becoming a listed company[72] Loss and Equity - The loss for the three months ended March 31, 2019, was HKD 2,400,000, compared to a loss of HKD 1,400,000 for the same period in 2018, attributed to decreased sales and increased expenses[75] - As of March 31, 2019, the total equity of the group was HKD 80,000,000, with cash and cash equivalents amounting to HKD 25,500,000, indicating sufficient liquidity for operational needs[89] Future Outlook and Guidance - The company has not provided specific guidance for future performance in this report[22] - The company expects that the adoption of new accounting standards will not have a significant impact on the financial statements[35] - Forward-looking statements in the report reflect the board's current thoughts, assumptions, and expectations regarding the industry and market, subject to risks and uncertainties[124] Corporate Governance - The company confirmed that there were no business or interests that could potentially compete with the group as of March 31, 2019[114] - The company has adopted trading standards for directors in compliance with GEM Listing Rules[119] - The audit committee was established on April 16, 2018, in accordance with GEM listing rules, consisting of three independent non-executive directors[123] - The audit committee's main responsibilities include recommending the appointment of external auditors, reviewing financial information, and overseeing financial reporting procedures and internal controls[123] - The group’s unaudited consolidated financial information for the three months ended March 31, 2019, was reviewed by the audit committee and deemed compliant with applicable accounting standards and GEM listing rules[123] Share Capital and Dividends - The company did not recommend any dividend payment for the three months ended March 31, 2019, consistent with the previous year[59] - The company’s issued share capital as of March 31, 2019, was 1,000,000,000 shares[101] - Mr. Gao holds 750,000,000 shares, representing 75% of the issued share capital[106] - Ms. Chen, as Mr. Gao's spouse, also holds 750,000,000 shares, representing 75% of the issued share capital[108] - No purchases, sales, or redemptions of the company's listed securities occurred during the three months ending March 31, 2019[120] Investment and Capital Plans - The group plans to utilize approximately HKD 17,500,000 for establishing a new showroom and HKD 5,200,000 for repaying bank loans as part of the net proceeds from the IPO[87] - As of March 31, 2019, the company did not engage in any significant acquisitions or disposals during the three months ending on that date[92] - There were no major investment or capital asset plans as of March 31, 2019[93] Stock Option Plan - The stock option plan was adopted on April 16, 2018, to provide eligible participants with opportunities to own personal interests in the company and incentivize contributions to long-term development and profitability[121] - The stock option plan is valid for ten years from the listing date unless canceled or amended, with no stock options granted, lapsed, exercised, or canceled as of March 31, 2019, and the report date[121]

Company Listing and Market Position - The company successfully listed on GEM of the Stock Exchange on May 4, 2018, marking a significant milestone in its development[31]. - The listing enhances the company's access to capital markets, boosts confidence among customers and suppliers, and improves its reputation[31]. - The company aims to expand its market presence and enhance corporate governance following the listing[31]. - The proceeds from the Listing are targeted to be used for expanding the business and maintaining market position[58]. - The Group's objective is to become a key market player in the Hong Kong apparel supply chain management industry, aiming to optimize returns for shareholders[111]. Financial Performance - The annual report covers the financial performance for the year ended December 31, 2018, providing insights into the company's growth and operational strategies[30]. - The report includes a comprehensive analysis of the company's financial position, including profit or loss statements and cash flow statements[29]. - The financial summary provides detailed metrics, including revenue growth percentages and other key financial ratios[29]. - For the year ended 31 December 2018, the Group's total revenue increased to HK$111.9 million, representing a significant increase of approximately 56.7% compared to HK$71.4 million for the same period in 2017[46]. - The net profit for the year ended 31 December 2018 decreased to HK$12.5 million, showing a decrease of approximately 44.3% compared to the previous year[46]. - The adjusted profit for the year ended 31 December 2018 increased by HK$2.5 million to HK$15.5 million, from HK$13.0 million for the year ended 31 December 2017[49]. - The gross profit margin decreased to 28.5% for the year ended 31 December 2018, down from 37.2% in the previous year[46]. - The increase in adjusted profit was primarily driven by the increase in revenue despite the decrease in gross profit margin[47]. Operational Strategies and Growth - The company is focused on developing new products and technologies to drive future growth[30]. - Future outlook includes strategic initiatives for market expansion and potential mergers or acquisitions[30]. - The Group plans to continue exploring opportunities to diversify operations and strengthen its customer base[39]. - The Group's business model focuses on providing one-stop supply chain management services for middle to high-end apparel products, allowing customers to concentrate on their retail operations[45]. - The Group enhanced its design and development capabilities by preparing a wider variety of sample products for design collections in the new showroom[74]. Customer Relationships and Market Expansion - The Group's management emphasized the importance of solidifying relationships with existing customers while exploring new customer opportunities[56]. - The Group established new business relationships with customers in Korea, Austria, and Switzerland during the year ended 31 December 2018[74]. - The Group's revenue increased by 56.7% from HK$71.4 million for the year ended 31 December 2017 to HK$111.9 million for the year ended 31 December 2018, driven by increased revenue from existing customers in Germany and France and new customers in Korea, Austria, and Switzerland[74]. Corporate Governance - The Company has maintained high corporate governance standards, complying with all code provisions from the Listing Date to December 31, 2018[176]. - The Board consists of three independent non-executive Directors, meeting the GEM Listing Rules requirements[184]. - The appointment of independent directors aims to strengthen corporate governance and ensure accountability within the Group[151]. - The Group's independent non-executive directors are tasked with providing independent judgment on strategic issues, performance, and resource management[158]. - The Board is collectively responsible for directing and supervising the Company's affairs, ensuring sound internal control and risk management systems[194]. Financial Management and Capital Structure - The Group's capital structure has remained unchanged since its listing on the GEM of the Stock Exchange[97]. - The Group's issued share capital as of 31 December 2018 was HK$10 million, with 1 billion shares issued at HK$0.01 each[97]. - The Group declared interim dividends totaling HK$6.5 million in April 2018, compared to HK$4.3 million in 2017[131]. - A third quarter dividend of HK$0.01 per share was declared, amounting to HK$10 million, which was paid on December 18, 2018[131]. - The proposed final dividend for the year ended December 31, 2018, is HK$0.013 per share, totaling HK$13 million[131]. Challenges and Risks - The Group anticipates facing challenges such as reliance on a limited number of major customers and increasing costs of raw materials and labor[110][114]. - The management is confident in enhancing shareholder value based on years of experience in the apparel supply chain management market[111]. Management Team and Experience - The Group's management team includes professionals with extensive backgrounds in their respective fields, enhancing operational oversight and strategic direction[163]. - Ms. Lam Hau Chu has been the design manager since January 1, 2017, overseeing product design and development, bringing 29 years of experience in the apparel industry[163]. - Ms. Lo Wai Han has served as the quality control manager since January 1, 2017, with over 25 years of experience in garment quality control[165].