Financial Performance - For the six months ended June 30, 2020, the company reported revenue of HKD 41,014,000, a decrease of 3.6% compared to HKD 42,528,000 in the same period of 2019[16] - Gross profit for the same period was HKD 6,208,000, down 30.5% from HKD 8,922,000 year-on-year[16] - The company recorded a loss before tax of HKD 303,000, compared to a profit of HKD 674,000 in the previous year[16] - Total comprehensive loss for the period was HKD 694,000, compared to a loss of HKD 2,374,000 in the same period of 2019[16] - The company reported a basic loss per share of HKD 0.069 for the six months ended June 30, 2020, compared to a loss of HKD 0.24 in the same period of 2019[16] - The group reported a loss of HKD 0.4 million for the six months ended June 30, 2020, compared to a profit of HKD 0.5 million for the same period in 2019, primarily due to decreased sales and reduced gross margin[107] Assets and Liabilities - The company's total assets as of June 30, 2020, were HKD 54,636,000, down from HKD 62,495,000 at the end of 2019[19] - Current liabilities increased to HKD 63,092,000 from HKD 41,338,000 in the previous year[19] - The company’s cash and cash equivalents decreased to HKD 13,894,000 from HKD 30,525,000 at the end of 2019[19] - Trade receivables as of June 30, 2020, totaled HKD 13,195,000, significantly higher than HKD 3,207,000 as of December 31, 2019, indicating a substantial increase in receivables[77] - As of June 30, 2020, the group's total equity was HKD 54.6 million, down from HKD 62.5 million as of December 31, 2019, with cash and cash equivalents at HKD 13.9 million, down from HKD 30.5 million[123] Revenue Breakdown - Revenue from Germany for the six months ended June 30, 2020, was HKD 29,819,000, a decrease of 10.0% from HKD 33,195,000 in the same period of 2019[51] - The company’s revenue from clothing products for the six months ended June 30, 2020, was HKD 38,258,000, down from HKD 42,528,000 in the same period of 2019, representing a decline of 10.0%[47] - The company’s revenue from construction materials for the six months ended June 30, 2020, was HKD 2,756,000, with no revenue reported in the same period of 2019[47] Cash Flow - The net cash used in operating activities for the first half of 2020 was HKD (28,210,000), compared to HKD (2,738,000) in the same period of 2019[32] - The net cash used in financing activities for the first half of 2020 was HKD 11,579,000, compared to HKD (13,285,000) in the same period of 2019[32] - The company’s cash and cash equivalents decreased by HKD 16,631,000, ending with HKD 13,894,000 as of June 30, 2020, down from HKD 21,575,000 at the end of June 2019[32] Cost and Expenses - The company incurred a total cost of goods sold of HKD 34,806,000 for the six months ended June 30, 2020, compared to HKD 3,911,000 for the same period in 2019, indicating a significant increase in costs[64] - Selling and distribution expenses decreased from HKD 3.5 million for the six months ended June 30, 2019, to HKD 2.5 million for the six months ended June 30, 2020, due to reduced travel and exhibition costs amid COVID-19[101] - Administrative expenses decreased from HKD 4.9 million for the six months ended June 30, 2019, to HKD 4.1 million for the six months ended June 30, 2020, primarily due to lower professional fees and employee costs[104] Strategic Initiatives - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming quarters[16] - The company is actively exploring new strategies for growth, including potential mergers and acquisitions[16] - The company has expanded its business into the supply of building materials to diversify revenue sources, primarily serving procurement agents in Cambodia[89] - The group is exploring new business opportunities in selling construction materials to ASEAN countries, which are expected to provide more stable revenue due to lesser impact from COVID-19 and the US-China trade war[118] Corporate Governance - The company has complied with the corporate governance code during the six months ended June 30, 2020[156] - The audit committee, established on April 16, 2018, consists of three independent non-executive directors and is responsible for reviewing financial information and overseeing the audit process[163] - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2020, and confirmed compliance with applicable accounting standards and regulations[163] Shareholder Information - As of June 30, 2020, the total number of issued shares of the company is 1,000,000,000[140] - Mr. Gao holds 750,000,000 shares, representing 75% of the issued share capital[146] - Ms. Chen, as Mr. Gao's spouse, also holds 750,000,000 shares, representing 75% of the issued share capital[147] - The company completed a share consolidation on August 5, 2020, merging every ten existing shares of HKD 0.01 each into one consolidated share of HKD 0.1[85]

Financial Performance - Revenue for the first quarter of 2020 was HKD 10,935,000, representing a 79% increase compared to HKD 6,117,000 in the same period of 2019[19] - Gross profit for the first quarter of 2020 was HKD 2,638,000, up from HKD 2,206,000 in 2019, indicating a growth of 19.6%[19] - The company reported a loss before tax of HKD 684,000, an improvement from a loss of HKD 2,366,000 in the first quarter of 2019[19] - Total comprehensive loss for the period was HKD 694,000, compared to HKD 2,374,000 in the same quarter of the previous year, showing a significant reduction in losses[19] - Basic loss per share for the first quarter was HKD 0.069, compared to HKD 0.24 in the prior year, reflecting a decrease in loss per share by 71.25%[19] - The company reported a net loss of HKD 700,000 for the three months ended March 31, 2020, compared to a net loss of HKD 2,400,000 for the same period in 2019, indicating an improvement in financial performance[60] - Loss for the three months ended March 31, 2020, was HKD 700,000, a decrease from HKD 2,400,000 for the same period in 2019, attributed to increased revenue and reduced sales and distribution expenses[77] Expenses and Cost Management - The company incurred selling and distribution expenses of HKD 1,107,000, down from HKD 2,222,000 in the previous year, a decrease of 50%[19] - Administrative expenses were HKD 2,140,000, a slight decrease from HKD 2,445,000 in the same quarter of 2019, indicating a reduction of 12.4%[19] - The total employee costs for the period were HKD 1,312,000, down from HKD 1,427,000 in the previous year, reflecting a decrease of 8%[58] - Cost control measures have been implemented since 2019, including a reduction in administrative expenses[88] Revenue Sources - Revenue from Germany was HKD 6,619,000, up from HKD 4,063,000 in 2019, showing a growth of 63%[44] - The company’s revenue from clothing procurement agents, fashion stores, and department stores totaled HKD 10,935,000 for the period, compared to HKD 6,117,000 in 2019, reflecting a significant increase[49] - Revenue increased by 78.8% from HKD 6,100,000 for the three months ended March 31, 2019, to HKD 10,900,000 for the three months ended March 31, 2020, primarily due to increased revenue from German clients[65] Other Income - Other income increased to HKD 199,000 from HKD 90,000, representing a growth of 120% year-over-year[19] - The company’s other income from sample sales was HKD 199,000, an increase from HKD 81,000 in 2019, marking a growth of 145%[53] - Other income increased from HKD 100,000 to HKD 200,000, mainly due to increased sample sales revenue[69] Assets and Equity - The total non-current assets as of March 31, 2020, were HKD 36,076,000, slightly down from HKD 36,621,000 as of December 31, 2019[48] - As of March 31, 2020, the total equity of the group was HKD 61,800,000[92] - The group's cash and cash equivalents amounted to HKD 18,000,000 as of March 31, 2020, indicating sufficient liquidity to meet operational funding needs[92] Corporate Governance and Compliance - The company confirmed compliance with the GEM Listing Rules regarding securities trading standards for all directors during the three months ended March 31, 2020[125] - The company maintains a strong commitment to high corporate governance standards as per GEM Listing Rules[122] - The audit committee was established on April 16, 2018, consisting of three independent non-executive directors, responsible for reviewing financial information and overseeing financial reporting processes[129] - The audit committee reviewed the unaudited consolidated financial information for the three months ended March 31, 2020, and confirmed compliance with applicable accounting standards and GEM listing rules[129] Future Outlook and Challenges - The company anticipates ongoing challenges in the global retail market due to COVID-19, affecting production and supply chain logistics[85] - The company plans to explore new business opportunities to diversify revenue sources amid the current challenging business environment[88] Shareholder Information - The major shareholder, Mr. Gao, holds 750,000,000 shares, representing 75% of the issued share capital[114] - The total number of issued shares as of March 31, 2020, was 1,000,000,000[105] Dividends and Investments - The company did not recommend any dividend for the three months ended March 31, 2020, consistent with the previous year[59] - No dividends were recommended for the three months ended March 31, 2020, consistent with the previous year[93] - There were no significant acquisitions or disposals during the three months ended March 31, 2020[95] - The group had no plans for significant investments or capital assets as of March 31, 2020[96] Stock Options - The company adopted a stock option plan on April 16, 2018, aimed at incentivizing and retaining key contributors to its long-term development and profitability[127] - No stock options have been granted, lapsed, exercised, or cancelled since the adoption of the stock option plan, and there are no unexercised stock options as of the report date[127] Foreign Exchange - The company incurred a foreign exchange loss of HKD 173,000 for the period, compared to a gain of HKD 95,000 in the previous year[54] Forward-Looking Statements - The report contains forward-looking statements that are subject to risks and uncertainties, which may cause actual performance to differ significantly from those anticipated[130]

Financial Performance - The Group's total revenue for the year ended December 31, 2019, decreased to HK$84.7 million, representing a decline of approximately 24.3% compared to the previous year[15]. - The net profit for the year ended December 31, 2019, decreased to HK$3.1 million, showing a decrease of approximately 74.9% compared to the previous year[15]. - For the year ended December 31, 2019, the Group recorded revenue of approximately HK$84.7 million, showing a decrease of approximately 24.3% compared to revenue of approximately HK$111.9 million for the same period in 2018[36]. - The net profit for the year ended December 31, 2019, decreased by HK$9.4 million to HK$3.1 million, from HK$12.5 million for the year ended December 31, 2018, representing a decline of approximately 74.9%[36][37]. - The gross profit margin of the Group decreased to 25.5% for the year ended December 31, 2019, compared to 28.5% for the preceding year[36]. - Other income dropped significantly from HK$2.8 million for the year ended December 31, 2018 to HK$0.6 million for the year ended December 31, 2019, mainly due to decreased sample sales income and financial guarantee income[49]. - Selling and distribution expenses increased from HK$7.0 million in 2018 to HK$8.3 million in 2019, primarily due to an increase in design fees[51]. - Administrative expenses rose from HK$7.8 million in 2018 to HK$8.5 million in 2019, attributed to increased professional fees and property depreciation[53]. - The Group's revenue decreased by 24.3% from HK$111.9 million for the year ended 31 December 2018 to HK$84.7 million for the year ended 31 December 2019[45]. - Cost of sales decreased by 21.2% from HK$80.0 million for the year ended 31 December 2018 to HK$63.1 million for the year ended 31 December 2019, aligning with the decrease in revenue[45]. - Gross profit was HK$31.9 million and HK$21.6 million for the years ended 31 December 2018 and 2019, respectively, with gross profit margin decreasing from 28.5% to 25.5%[45]. Impact of External Factors - The decrease in sales was primarily due to social unrest in Hong Kong during the second half of 2019, which affected overseas customers' willingness to visit the showroom and place orders[15]. - The Group's revenue and profitability have been severely impacted since the second half of 2019 due to social unrest and the subsequent outbreak of COVID-19, leading to pessimistic sentiment regarding the macroeconomic environment[16]. - The decline in revenue and profitability was primarily due to social unrest in Hong Kong in the second half of 2019, which affected overseas customers' willingness to visit the Group's showroom and place sales orders[36][19]. - The COVID-19 outbreak has disrupted the logistics of the supply chain, leading to lower production output from suppliers in the People's Republic of China due to restrictions on production resumption and movement[22][25]. - The COVID-19 outbreak has intensified in Europe, impacting retail markets and leading to lower average selling prices, which may reduce gross profit[68][72]. - Supply chain logistics have been disrupted due to COVID-19, resulting in lower production output from suppliers in China due to raw material shortages and workforce reductions[69][71]. Strategic Initiatives - The Group expects the business environment to remain challenging in the first half of 2020 due to ongoing US-China trade tensions and soft global economic growth[23][26]. - The Group is actively maintaining long-term cooperation with major customers while developing new customer bases and markets[24][26]. - As a short-term measure, the Group will consider implementing more stringent cost-control measures to cope with the recent downturn in business[24][26]. - The management team is confident in overcoming challenges due to their extensive experience in the apparel supply chain management market[24][26]. - The Group's strategy includes solidifying relationships with existing customers and exploring new customers to continue growth[40]. - The Group has successfully commenced business relationships with several new customers located in Europe and Asia[42]. - A new showroom was acquired on 10 September 2018 to showcase the Group's product offerings[42]. - The company plans to solidify relationships with existing customers and explore new customers, allocating HK$3.3 million for this strategy, with actual usage of HK$1.2 million and unutilized funds of HK$2.1 million[78]. - A new showroom was established to showcase product offerings, with an allocation of HK$17.5 million fully utilized[78]. - The company strengthened its design and development capabilities with an allocation of HK$2.2 million, of which HK$1.4 million was used, leaving HK$0.8 million unutilized[78]. - The quality control process was enhanced with an allocation of HK$0.8 million, which was fully utilized[78]. Financial Position - As of 31 December 2019, the total equity of the Group was HK$62.5 million, down from HK$82.4 million as of December 31, 2018[82]. - The Group's cash and cash equivalents as of December 31, 2019, were HK$30.5 million, compared to HK$37.8 million as of December 31, 2018[82]. - The bank borrowings of the Group as of December 31, 2019, were HK$10.3 million, slightly decreased from HK$10.9 million as of December 31, 2018[82]. - The current ratio was 2.8 times as of December 31, 2019, down from 3.0 times as of December 31, 2018[82]. - The trade receivables turnover days were 47.6 days for the year ended December 31, 2019, compared to 45.0 days for the previous year[82]. - The trade payables turnover days increased to 27.3 days for the year ended December 31, 2019, from 22.9 days in 2018[82]. - The gearing ratio was 16.5% as of December 31, 2019, compared to 13.2% as of December 31, 2018, due to a decrease in equity from dividend payments[82]. - HK$5.2 million of bank borrowings has been repaid as part of the Group's financial strategy[45]. - Finance costs increased to approximately HK$0.5 million for the year ended December 31, 2019, up from HK$0.2 million in 2018, primarily due to higher average bank borrowing balances[58]. - Income tax expense for the year ended December 31, 2019 was HK$0.9 million, a decrease from HK$3.2 million in 2018, reflecting the impact of the two-tiered profits tax rates regime introduced in 2018[58]. - Profit attributable to owners of the Group for the year ended December 31, 2019 was HK$3.1 million, a significant decrease from HK$12.5 million in 2018, mainly due to reduced revenue from social unrest in Hong Kong[58]. Corporate Governance - The Company has complied with all code provisions as set out in the Corporate Governance Code during the year ended 31 December 2019[120]. - The Board consists of at least three independent non-executive Directors, representing one-third of the Board, with one possessing appropriate professional qualifications or accounting expertise[128]. - The independent non-executive directors are responsible for providing independent judgment on the group's resources and operational strategies[111]. - The company emphasizes independent oversight from its non-executive directors to ensure high standards of conduct and performance[109]. - The independent directors play a crucial role in maintaining the integrity and transparency of the company's operations[108]. - The Board is committed to maintaining high corporate governance standards to safeguard shareholder interests and enhance corporate value[118]. - The Company has established a governance framework to ensure sound internal control and risk management systems are in place[137]. - The Audit Committee held five meetings during the year ended December 31, 2019, to review quarterly, interim, and annual financial results, audit planning, and risk management[164]. - The Remuneration Committee met once during the year ended December 31, 2019, to review the remuneration policy and structure of the Company[169]. - The Nomination Committee met once during the year ended December 31, 2019, to review the structure, size, and composition of the Board[177]. - The Company has adopted a Board Diversity Policy to achieve diversity at the Board level, recognizing its importance for maintaining competitive advantage[178]. - The Nomination Committee is committed to diversity at all levels and will consider various aspects, including gender, age, and professional experience, in its assessments[179]. - The terms of reference for all Board committees are posted on the Company's website and the Stock Exchange's website[164]. - The Company has adopted a Director Nomination Policy to ensure a balance of skills, experience, and diversity on the Board[188]. - The Board is responsible for reviewing corporate governance policies and practices annually[192]. - The attendance record of Directors at meetings indicates full participation, with all Directors attending 100% of board meetings[197].

Financial Performance - For the nine months ended September 30, 2019, the company reported total revenue of HKD 67,055,000, a decrease of 22.5% compared to HKD 86,524,000 for the same period in 2018[18]. - The gross profit for the nine months ended September 30, 2019, was HKD 15,809,000, down 30.5% from HKD 22,656,000 in the previous year[18]. - The net profit for the nine months ended September 30, 2019, was HKD 2,468,000, a decline of 37.7% compared to HKD 3,969,000 for the same period in 2018[18]. - Basic and diluted earnings per share for the nine months ended September 30, 2019, were HKD 0.25, down from HKD 0.40 in the same period of 2018[18]. - For the three months ended September 30, 2019, the company reported revenue of HKD 24,527,000, a decrease of 53.5% compared to HKD 52,683,000 in the same period of 2018[41]. - Revenue from knitted products for the nine months ended September 30, 2019, was HKD 63,178,000, a decline of 22.2% from HKD 81,181,000 in the same period of 2018[44]. - The company’s revenue from garment procurement agents for the nine months ended September 30, 2019, was HKD 46,749,000, down 20.9% from HKD 59,118,000 in the previous year[48]. - Revenue from Germany for the nine months ended September 30, 2019, was HKD 49,535,000, a decrease of 3.1% compared to HKD 51,123,000 in the same period of 2018[51]. - The group's profit for the nine months ended September 30, 2019, was HKD 2,500,000, a decrease from HKD 4,000,000 for the same period in 2018, primarily due to reduced revenue and gross profit from business slowdown[84]. Expenses and Costs - The company incurred a total administrative expense of HKD 6,589,000 for the nine months ended September 30, 2019, compared to HKD 5,408,000 in the previous year, reflecting an increase of 21.8%[18]. - The company reported a decrease in sales and distribution expenses to HKD 5,647,000 for the nine months ended September 30, 2019, from HKD 5,637,000 in 2018, indicating a slight reduction[18]. - Other income for the nine months ended September 30, 2019, was HKD 439,000, down from HKD 1,377,000 in the same period of 2018, representing a decline of 68.1%[18]. - The company’s financial cost for the nine months ended September 30, 2019, was HKD 357,000, compared to HKD 97,000 in the previous year, indicating an increase of 268%[18]. - Cost of sales reduced by 19.8% from HKD 63,900,000 to HKD 51,200,000 for the same periods[72]. - Gross profit decreased from HKD 22,700,000 to HKD 15,800,000, with gross margin declining from 26.2% to 23.6%[73]. - Administrative expenses increased from HKD 5,400,000 to HKD 6,600,000, attributed to professional fees related to becoming a listed company[80]. - Financial costs rose from less than HKD 100,000 to approximately HKD 400,000 due to an increase in average bank borrowings[82]. - Income tax expenses were HKD 2,000,000 for the nine months ended September 30, 2018, compared to HKD 700,000 for the same period in 2019[83]. - Total employee costs decreased from HKD 2,005,000 to HKD 1,917,000 for the nine months ended September 30, 2018, and 2019 respectively[64]. Equity and Assets - The total equity as of September 30, 2019, was HKD 61,820,000, a decrease from HKD 87,014,000 as of September 30, 2018[31]. - Non-current assets in Hong Kong as of September 30, 2019, were valued at HKD 29,334,000, a slight decrease from HKD 30,004,000 as of December 31, 2018[56]. - As of September 30, 2019, the total equity of the group was HKD 61,800,000, down from HKD 82,400,000 as of December 31, 2018, with cash and cash equivalents at HKD 23,200,000 compared to HKD 37,800,000[98]. Corporate Governance and Compliance - The company has maintained high corporate governance standards in accordance with the GEM Listing Rules during the reporting period[123]. - There are no reported interests or conflicts of interest among directors and controlling shareholders in competing businesses as of September 30, 2019[121]. - The company has appointed a compliance advisor to provide guidance on compliance with GEM Listing Rules[122]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the nine months ending September 30, 2019, ensuring compliance with applicable accounting standards[130]. Future Outlook and Strategic Initiatives - The management anticipates challenges in the business environment due to the impact of the US-China trade war and recent social unrest in Hong Kong, which may affect overseas clients' willingness to visit showrooms and place orders[94]. - The group plans to implement stricter cost control measures in response to recent business declines and aims to strengthen relationships with existing clients while exploring new customer opportunities[94]. - The company is exploring potential acquisitions to enhance its product portfolio and market presence[133]. - Overall, the company remains optimistic about achieving its long-term growth targets despite market challenges[133].

Financial Performance - For the six months ended June 30, 2019, the company reported revenue of HKD 42,528,000, an increase of 25.7% compared to HKD 33,841,000 in the same period of 2018[12]. - Gross profit for the same period was HKD 8,922,000, representing a 14.5% increase from HKD 7,793,000 year-on-year[12]. - The company recorded a net profit of HKD 499,000 for the six months ended June 30, 2019, compared to a net loss of HKD 5,088,000 in the previous year[12]. - Basic and diluted earnings per share for the six months ended June 30, 2019, were HKD 0.05, compared to a loss of HKD 0.51 in the same period of 2018[12]. - The net cash used in operating activities for the six months ended June 30, 2019, was HKD (2,738,000), a significant improvement from HKD (26,711,000) in the same period of 2018[36]. - The company reported a total comprehensive loss of HKD (5,088,000) for the period[29]. - Profit for the period was HKD 0.5 million, a significant improvement from a loss of HKD 5.1 million for the six months ended June 30, 2018, attributed to reduced listing expenses and increased revenue[123]. Assets and Liabilities - Total assets as of June 30, 2019, were HKD 64,565,000, a decrease from HKD 66,738,000 as of December 31, 2018[15]. - The company's cash and cash equivalents decreased to HKD 21,575,000 from HKD 37,808,000 at the end of 2018[15]. - The company’s total liabilities increased to HKD 31,974,000 from HKD 22,623,000 at the end of 2018[15]. - Total non-current assets as of June 30, 2019, amounted to HKD 37,711,000, a decrease from HKD 38,587,000 as of December 31, 2018[58]. - Trade receivables as of June 30, 2019, amounted to HKD 24,085,000, an increase from HKD 18,866,000 as of December 31, 2018[82]. - Trade payables as of June 30, 2019, totaled HKD 18,549,000, compared to HKD 8,390,000 as of December 31, 2018[83]. Revenue Sources - Revenue from garment product sales and supply chain management services was primarily generated from European clients, with fixed-price contracts in place[46]. - The company’s revenue from garment procurement agents, fashion stores, and department stores totaled HKD 30,756,000 for the six months ended June 30, 2019, compared to HKD 25,142,000 in 2018[52]. - Revenue increased by 25.7% from HKD 33.8 million for the six months ended June 30, 2018, to HKD 42.5 million for the six months ended June 30, 2019, primarily due to increased revenue from clients in Germany, Switzerland, and Austria[111]. Expenses - Cost of sales rose by 29.0% from HKD 26.0 million to HKD 33.6 million, consistent with the increase in sales revenue for the same period[112]. - Gross profit increased from HKD 7.8 million to HKD 8.9 million, while gross margin decreased from 23.0% to 21.0% due to a shift in customer mix towards lower-margin clients[113]. - Administrative expenses increased from HKD 3.5 million to HKD 4.9 million, primarily due to increased professional fees related to being a listed company and property depreciation from the acquisition of a showroom[118]. - Sales and distribution expenses rose from HKD 3.3 million to HKD 3.5 million, mainly due to higher employee costs and exhibition expenses[117]. - The company incurred a total employee cost of HKD 2,656,000 for the six months ended June 30, 2019, slightly down from HKD 2,712,000 in the same period of 2018[66]. Corporate Governance - The board of directors confirmed the accuracy and completeness of the financial information presented in the report[3]. - The company has established an audit committee to oversee financial reporting and compliance, consisting of three independent non-executive directors[172]. - The company confirms compliance with the GEM Listing Rules regarding securities trading by directors during the six months ending June 30, 2019[169]. - The company has maintained high standards of corporate governance in accordance with the GEM Listing Rules[166]. Future Plans and Challenges - The company plans to focus on market expansion and new product development in the upcoming quarters[12]. - The group expects challenges in the business environment due to the US-China trade war and recent social unrest in Hong Kong[132]. - The group aims to enhance competitiveness and expand its market presence in the apparel supply chain management sector[132]. - The company aims to enhance its design and development capabilities by preparing a wider variety of design samples in its new showroom[100]. Share Capital and Dividends - The company proposed an interim dividend of HKD 0.01 per share, totaling HKD 10,000,000, compared to HKD 6,500,000 for the six months ended June 30, 2018[67]. - The group plans to pay an interim dividend of HKD 0.01 per share, totaling HKD 10 million, compared to HKD 6.5 million for the same period in 2018[138]. - Metro Vanguard holds 750,000,000 shares, representing 75% of the issued share capital as of June 30, 2019[160]. - The total issued share capital of the company is 1,000,000,000 shares as of June 30, 2019[161].

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].