BIT Bortex Global Limited 濠亮環球有限公司* (於開曼群島註冊成立的有限公司) 股份代號：8118 第三季度業績報告 2021 * 催供藏別 香港聯合交易所有限公司(「聯交所」) GEM 的特色 GEM 的定位,乃為中小型公司提供一個上市的市場,此等公司相比超其他在聯交所上市的公 司帶有較高投資風險,有意投資的人士應了解投資於該等公司的潛在風險,並應經過審慎用詳 的考慮後方作出投資決定。 由於GEM上市公司普邊為中小型公司,在GEM買賣的證券可能會較於聯交所主板買賣的證券 承受較大的市場波動風險,同時無法保證在 GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及香港聯合交易所有限公司對本報告的內容概不負責,對其準確性 或完整性亦不發表任何聲明·並明確表示,概不對因本報告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 | --- | --- | |-------------------------------------------------------------------------------------|-------| | | | ...

Financial Performance - For the six months ended October 31, 2020, the revenue was HKD 121,139,000, a decrease of 28.5% compared to HKD 94,478,000 for the same period in 2019[9]. - Gross profit for the same period was HKD 15,763,000, representing a gross margin of 13.0%[9]. - The net profit for the six months was HKD 9,472,000, an increase of 67.5% compared to HKD 5,648,000 in the previous year[9]. - Total comprehensive income for the period was HKD 12,177,000, compared to HKD 4,527,000 in the same period last year[9]. - The company reported a basic and diluted earnings per share of HKD 1.89 for the period, up from HKD 1.13 in the previous year[9]. - The company reported a net profit attributable to owners of HKD 15,407 thousand for the six months ended October 31, 2020, an increase of 39.9% from HKD 11,078 thousand in the same period of 2019[57]. - The profit for the six months ended October 31, 2020, increased by approximately HKD 4.3 million or 38.7% to about HKD 15.4 million, with a slight increase in the overall profit margin from 11.7% to 12.7%[111]. Assets and Liabilities - The company's total assets as of October 31, 2020, were HKD 173,275,000, an increase from HKD 147,284,000 as of April 30, 2020[10]. - The cash and cash equivalents increased significantly to HKD 50,043,000 from HKD 20,554,000[10]. - Non-current assets totaled HKD 42,887,000, slightly up from HKD 42,763,000[10]. - The company’s equity attributable to owners was HKD 156,801,000, an increase from HKD 136,879,000[10]. - The company had a total equity of HKD 156,801,000 as of October 31, 2020, up from HKD 130,800,000 a year earlier, reflecting a growth of 20%[11]. - The debt-to-equity ratio increased from approximately 0.21 times on April 30, 2020, to 0.25 times on October 31, 2020, primarily due to an increase in bank borrowings and lease liabilities from about HKD 29.3 million to HKD 39.5 million[112]. Cash Flow - The company reported a net cash inflow from operating activities of HKD 13,445,000 for the six months ended October 31, 2020, compared to HKD 5,594,000 for the same period in 2019, representing an increase of 140%[17]. - The company reported a net cash outflow from investing activities of HKD 2,034,000 for the period, compared to a net cash inflow of HKD 122,000 in the previous year[17]. - The financing activities generated a net cash inflow of HKD 9,587,000, a turnaround from a net cash outflow of HKD 5,214,000 in the previous year[17]. - As of October 31, 2020, the cash and bank balance was approximately HKD 59.8 million, up from HKD 29.8 million on April 30, 2020, with a current ratio of 4.9 times[113]. Revenue Breakdown - Revenue from LED decorative lights was HKD 106,284 thousand for the six months ended October 31, 2020, up 36.3% from HKD 77,999 thousand in the same period of 2019[41]. - Revenue from the United States market was HKD 16,702 thousand for the six months ended October 31, 2020, significantly up from HKD 7,322 thousand in the same period of 2019, marking a 128.8% increase[41]. - Revenue from China (excluding Hong Kong) reached HKD 21,809 thousand for the six months ended October 31, 2020, compared to HKD 13,182 thousand in the same period of 2019, reflecting a 65.5% increase[41]. Expenses and Costs - The company recorded a total tax expense of HKD 4,954 thousand for the six months ended October 31, 2020, compared to HKD 2,637 thousand in the same period of 2019, representing an increase of 88.2%[48]. - The financing costs increased by approximately HKD 0.6 million or 200.0% to approximately HKD 0.9 million, mainly due to an increase in average bank borrowings[108]. - The company's administrative expenses decreased by approximately HKD 0.5 million or 4.1% to approximately HKD 11.6 million, mainly due to reduced travel expenses[105]. Strategic Initiatives - The company plans to continue focusing on market expansion and new product development to drive future growth[3]. - The company has established a new production line in Phnom Penh, Cambodia, which is expected to benefit from tax incentives for exports to the United States[95]. - The company plans to increase marketing efforts to attract potential customers in the U.S. and expand its customer base due to tax benefits from exports[95]. - The company hired 7 new sales personnel to strengthen its sales and marketing efforts, participating in trade exhibitions in Hong Kong and conducting market exploration in the US, Philippines, Europe, and West Africa[131]. Shareholder Information - The major shareholder, Real Charm Corp, holds 46.8% of the company's shares, equivalent to 234 million shares[137]. - The spouse of a director holds 6.0% of the company's shares, amounting to 30 million shares[137]. Corporate Governance - The company has maintained compliance with corporate governance codes as per GEM listing rules[154]. - The audit committee was established on October 24, 2017, consisting of three independent non-executive directors[160]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended October 31, 2020[161].

[First Quarter Results](index=4&type=section&id=First%20Quarter%20Results) The Group achieved growth in revenue, gross profit, and profit for the period ended July 31, 2020, driven by increased LED decorative lighting product revenue [Financial Highlights](index=4&type=section&id=Financial%20Highlights) The Group's Q1 2020 revenue, gross profit, and profit for the period all increased, primarily from LED decorative lighting sales to US customers Key Financial Indicators for Q1 2020 (Million HKD) | Indicator | 2020 (Million HKD) | 2019 (Million HKD) | Year-on-Year Growth (%) | | :--- | :--- | :--- | :--- | | Revenue | 49.9 | 44.8 | 11.4% | | Gross Profit | 13.6 | 11.5 | 18.3% | | Profit for the Period | 5.9 | 5.4 | 9.3% | - Revenue growth primarily due to a significant increase in LED decorative lighting product revenue, with increased revenue from US customers (partially offset by decreased revenue from Hong Kong customers)[9](index=9&type=chunk) - The Board does not recommend an interim dividend for the three months ended July 31, 2020[9](index=9&type=chunk) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Q1 2020 unaudited consolidated profit or loss shows year-on-year growth in revenue and profit, with exchange differences boosting total comprehensive income Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Thousand HKD) | Indicator | 2020 (Unaudited) | 2019 (Unaudited) | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 49,868 | 44,837 | 5,031 | 11.2% | | Cost of Sales | (36,277) | (33,309) | (2,968) | 8.9% | | Gross Profit | 13,591 | 11,528 | 2,063 | 17.9% | | Other Income and Gains | 160 | 592 | (432) | -73.0% | | Profit Before Tax | 7,491 | 6,469 | 1,022 | 15.8% | | Taxation | (1,556) | (1,039) | (517) | 49.8% | | Profit for the Period | 5,935 | 5,430 | 505 | 9.3% | | Exchange differences on translation of overseas operations | 1,810 | (2,511) | 4,321 | N/A | | Total Comprehensive Income for the Period | 7,745 | 2,919 | 4,826 | 165.3% | | Basic and Diluted EPS (HK cents) | 1.19 | 1.09 | 0.10 | 9.2% | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity increased to HK$144,624 thousand for the three months ended July 31, 2020, driven by profit and favorable exchange differences Condensed Consolidated Statement of Changes in Equity (Thousand HKD) | Indicator | July 31, 2020 (Unaudited) | July 31, 2019 (Unaudited) | Change (Thousand HKD) | | :--- | :--- | :--- | :--- | | Share Capital | 5,000 | 5,000 | 0 | | Share Premium | 41,901 | 41,901 | 0 | | Statutory Reserve | 2,596 | 1,233 | 1,363 | | Exchange Reserve | (3,016) | (2,358) | (658) | | Other Reserves | 1 | 1 | 0 | | Retained Earnings | 98,142 | 80,496 | 17,646 | | **Total Equity** | **144,624** | **126,273** | **18,351** | - Total comprehensive income for the period increased from **HK$2,919 thousand** in 2019 to **HK$7,745 thousand** in 2020[14](index=14&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides essential notes on the Group's financial statements, covering preparation, policies, segments, revenue, profit, tax, and EPS [1. General Information](index=7&type=section&id=1.%20General%20Information) Hao Liang Global Limited, incorporated in the Cayman Islands and listed on HKEX GEM, primarily trades and manufactures LED lighting products - The Company was incorporated in the Cayman Islands on January 30, 2014, and listed on GEM of HKEX on November 16, 2017[16](index=16&type=chunk) - The Group is principally engaged in the trading and manufacturing of LED lighting products[17](index=17&type=chunk) - Financial information is presented in Hong Kong Dollars, the Company's reporting currency[17](index=17&type=chunk) [2. Basis of Preparation](index=7&type=section&id=2.%20Basis%20of%20Preparation) Unaudited condensed consolidated financial statements are prepared under HKFRS and GEM Listing Rules, consistent with annual policies - The unaudited condensed consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the GEM Listing Rules[18](index=18&type=chunk) - The accounting policies adopted are consistent with those used in the annual consolidated financial statements for the year ended April 30, 2020[18](index=18&type=chunk) - The unaudited condensed consolidated financial statements have been reviewed by the Company's Audit Committee[19](index=19&type=chunk) [3. Segment Reporting](index=8&type=section&id=3.%20Segment%20Reporting) The Group operates as a single segment in LED lighting products, with geographical revenue showing US growth and Hong Kong decline - The Group is solely engaged in the design, manufacturing, and trading of LED lighting products, thus having a single business component/reportable segment[21](index=21&type=chunk) Geographical Revenue Distribution (Thousand HKD) | Region | 2020 (Unaudited) | 2019 (Unaudited) | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Canada | 18,476 | 17,969 | 507 | 2.8% | | United States | 7,188 | 1,171 | 6,017 | 513.8% | | China (excluding Hong Kong) | 3,336 | 2,658 | 678 | 25.5% | | Hong Kong | 17,827 | 22,597 | (4,770) | -21.1% | | Others | 3,041 | 442 | 2,599 | 588.0% | | **Total** | **49,868** | **44,837** | **5,031** | **11.2%** | [4. Revenue](index=8&type=section&id=4.%20Revenue) Revenue primarily from LED decorative and lighting products, recognized at a point in time with contracts under one year - Revenue refers to income generated from the trading and manufacturing of LED decorative lighting products and LED lighting products[23](index=23&type=chunk) - All revenue contracts have a duration of less than one year and are recognized at a point in time[23](index=23&type=chunk) Revenue by Product Category (Thousand HKD) | Product Category | 2020 (Unaudited) | 2019 (Unaudited) | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | LED Decorative Lighting | 48,176 | 44,317 | 3,859 | 8.7% | | LED Lighting | 1,692 | 520 | 1,172 | 225.4% | | **Total** | **49,868** | **44,837** | **5,031** | **11.2%** | [5. Profit Before Tax](index=9&type=section&id=5.%20Profit%20Before%20Tax) This section details expenses and income deducted in calculating profit before tax, including inventory costs and employee benefits Items Deducted in Profit Before Tax (Thousand HKD) | Item | 2020 (Unaudited) | 2019 (Unaudited) | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Remuneration for non-audit services | 200 | 300 | (100) | -33.3% | | Cost of inventories recognized as cost of sales | 36,277 | 33,309 | 2,968 | 8.9% | | Depreciation of property, plant and equipment | 666 | 728 | (62) | -8.5% | | Employee benefit expenses | 6,416 | 7,238 | (822) | -11.4% | | Listing expenses related to transfer to Main Board | 1,178 | – | 1,178 | N/A | | Net provision for expected credit losses | 362 | 305 | 57 | 18.7% | | Net exchange gains | (153) | (89) | (64) | 71.9% | | Research and development expenses | 24 | 28 | (4) | -14.3% | [6. Dividends](index=9&type=section&id=6.%20Dividends) No dividends were paid, declared, or proposed for the three months ended July 31, 2020, consistent with the prior year - No dividends were paid, declared, or proposed during the reporting period (three months ended July 31, 2019: nil)[27](index=27&type=chunk) [7. Taxation](index=9&type=section&id=7.%20Taxation) Total taxation for Q1 2020 was HK$1,556 thousand, mainly from Hong Kong and China current tax, with China's tax significantly increasing Tax Expenses (Thousand HKD) | Tax Category | 2020 (Unaudited) | 2019 (Unaudited) | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong current tax expense | 769 | 1,019 | (250) | -24.5% | | China current tax expense | 807 | 33 | 774 | 2345.5% | | Deferred tax | (20) | (13) | (7) | 53.8% | | **Total Tax** | **1,556** | **1,039** | **517** | **49.8%** | - Hong Kong profits tax adopts a two-tiered system, with the first **HK$2,000,000** of assessable profits taxed at **8.25%** and the remainder at **16.5%**[30](index=30&type=chunk) - Chinese subsidiaries are subject to a tax rate of **25%**[31](index=31&type=chunk) [8. Earnings Per Share Attributable to Owners of the Company](index=10&type=section&id=8.%20Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Basic and diluted EPS for Q1 2020 increased to 1.19 HK cents, up from 1.09 HK cents in the prior year Earnings Per Share Calculation (Thousand HKD/Thousand Shares) | Indicator | 2020 (Unaudited) | 2019 (Unaudited) | | :--- | :--- | :--- | | Profit for the purpose of calculating basic and diluted EPS | 5,935 | 5,430 | | Weighted average number of ordinary shares for basic and diluted EPS | 500,000 | 500,000 | | **Basic and Diluted EPS (HK cents)** | **1.19** | **1.09** | [9. Capital Commitments](index=10&type=section&id=9.%20Capital%20Commitments) As of July 31, 2020, the Group had no contracted but unprovided capital commitments for the acquisition of property, plant, and equipment - As of July 31, 2020, the Group had no contracted but unprovided commitments for the acquisition of property, plant, and equipment[34](index=34&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=Management%20Discussion%20and%20Analysis) The Group achieved Q1 2020 revenue growth despite the pandemic, with delayed orders confirmed and a new Cambodian production line expected to bring tax benefits [Business Review](index=11&type=section&id=Business%20Review) Despite COVID-19, the Group achieved Q1 2020 revenue growth, with some delayed orders confirmed and a new Cambodian production line expected to aid US market expansion - The global economy was affected by the COVID-19 pandemic, leading to some customer order cancellations or delays[36](index=36&type=chunk) - The Group's revenue for the three months ended July 31, 2020, was approximately **HK$49.9 million**, a slight increase of **11.4%** compared to the same period in 2019[36](index=36&type=chunk) - The new production line in Phnom Penh, Cambodia, has been delayed until the second half of 2020, but is expected to enjoy tax benefits, facilitating the export of lighting products to the US[36](index=36&type=chunk) [Prospects](index=12&type=section&id=Prospects) The Group will maintain prudent risk management, with the new Cambodian production line enhancing competitiveness and plans for increased marketing efforts - The pandemic has led to strict border controls and mandatory quarantines, posing severe challenges to global business development[38](index=38&type=chunk) - The Group will continue to adopt a prudent and balanced risk management approach[38](index=38&type=chunk) - The new Cambodian production line is expected to enhance competitiveness, stabilize export sales to North America, and enjoy tax benefits[38](index=38&type=chunk) - Plans include arranging sales teams to visit US customers, promoting the new Cambodian production line, and participating in global exhibitions and advertising over the next few years[38](index=38&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review) Q1 2020 saw robust financial performance with growth in total revenue and gross profit, despite increased administrative and finance costs [Revenue](index=12&type=section&id=Revenue) Total revenue increased by 11.4% year-on-year, driven by sales growth in LED decorative and lighting products [Revenue from LED Decorative Lighting Products](index=12&type=section&id=Revenue%20from%20LED%20Decorative%20Lighting%20Products) Q1 2020 LED decorative lighting product revenue increased by 8.8%, driven by sales to US and other customers - Revenue from LED decorative lighting products was approximately **HK$48.2 million**, an increase of **8.8%** compared to the same period in 2019[39](index=39&type=chunk) - The increase was primarily due to increased sales to US and other customers, partially offset by decreased sales to Hong Kong customers[39](index=39&type=chunk) [Revenue from LED Lighting Products](index=13&type=section&id=Revenue%20from%20LED%20Lighting%20Products) Q1 2020 LED lighting product revenue significantly increased by 240.0%, primarily due to higher sales to Chinese customers - Revenue from LED lighting products was approximately **HK$1.7 million**, a significant increase of **240.0%** compared to the same period in 2019[41](index=41&type=chunk) - The significant increase was primarily due to increased sales of LED lighting products to Chinese customers[41](index=41&type=chunk) [Cost of Sales](index=13&type=section&id=Cost%20of%20Sales) Cost of sales increased by 9.0% year-on-year, consistent with the Group's overall revenue growth trend - Cost of sales was approximately **HK$36.3 million**, an increase of **9.0%** compared to the same period in 2019[42](index=42&type=chunk) - The increase in cost of sales was generally consistent with the increase in the Group's total revenue[42](index=42&type=chunk) [Gross Profit and Gross Margin](index=13&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit increased by 18.3%, with overall gross margin rising to 27.3%, mainly due to higher margins on LED decorative lighting products - Gross profit was approximately **HK$13.6 million**, an increase of **18.3%** compared to the same period in 2019[43](index=43&type=chunk) - The overall gross margin was approximately **27.3%**, a slight increase of **6.2%** compared to the same period in 2019[43](index=43&type=chunk) - The increase in gross margin was primarily due to a higher gross margin for LED decorative lighting products[43](index=43&type=chunk) [Selling and Distribution Expenses](index=13&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased by 14.3% year-on-year, primarily due to reduced sales staff remuneration during the pandemic - Selling and distribution expenses were approximately **HK$0.6 million**, a slight decrease of **14.3%** compared to the same period in 2019[44](index=44&type=chunk) - The decrease was primarily due to reduced sales staff remuneration during the pandemic[44](index=44&type=chunk) [Other Income and Gains](index=14&type=section&id=Other%20Income%20and%20Gains) Other income and gains significantly decreased by 66.7%, mainly due to the fair value of financial assets remaining within a range - Other income and gains were approximately **HK$0.2 million**, a significant decrease of **66.7%** compared to the same period in 2019[46](index=46&type=chunk) - The significant decrease was primarily due to the fair value of financial assets recognized in profit or loss remaining within a certain range[46](index=46&type=chunk) [Administrative Expenses](index=14&type=section&id=Administrative%20Expenses) Administrative expenses slightly increased by 6.7%, primarily due to higher legal and professional fees and Main Board listing expenses - Administrative expenses were approximately **HK$4.8 million**, a slight increase of **6.7%** compared to the same period in 2019[47](index=47&type=chunk) - The increase was primarily due to higher legal and professional fees and expenses related to the Group's application for transfer to the Main Board[47](index=47&type=chunk) [Finance Costs](index=14&type=section&id=Finance%20Costs) Finance costs significantly increased by 300.0%, mainly due to higher interest expenses on bank borrowings and lease liabilities - Finance costs were approximately **HK$0.4 million**, a significant increase of **300.0%** compared to the same period in 2019[48](index=48&type=chunk) - The significant increase was primarily due to higher interest expenses on bank borrowings and lease liabilities[48](index=48&type=chunk) [Profit for the Period](index=14&type=section&id=Profit%20for%20the%20Period) Profit for the period slightly increased by 9.3%, primarily driven by increased revenue from LED decorative lighting products - Profit for the period was approximately **HK$5.9 million**, a slight increase of **9.3%** compared to the same period in 2019[49](index=49&type=chunk) - The slight increase was primarily due to increased revenue from LED decorative lighting products[49](index=49&type=chunk) [Dividends](index=14&type=section&id=Dividends) The Board does not recommend an interim dividend for Q1 2020, consistent with the prior year - The Board does not recommend an interim dividend for the three months ended July 31, 2020 (three months ended July 31, 2019: nil)[50](index=50&type=chunk) [Corporate Governance and Other Information](index=15&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers the Group's corporate governance, including directors' and major shareholders' interests, and compliance with the Corporate Governance Code [Disclosure of Interests](index=15&type=section&id=Disclosure%20of%20Interests) This section details the interests and short positions of directors, chief executives, and substantial shareholders in the Company's shares [Directors' and Chief Executives' Interests and Short Positions in the Company's Shares, Underlying Shares, or Debentures](index=15&type=section&id=Directors%27%20and%20Chief%20Executives%27%20Interests%20and%20Short%20Positions%20in%20the%20Company%27s%20Shares%2C%20Underlying%20Shares%2C%20or%20Debentures) As of July 31, 2020, Mr. Shao Guoliang held 46.8% equity, and Mr. Yuan Liqian held 6.0% through his spouse's interest Directors' and Chief Executives' Long Positions in the Company's Ordinary Shares | Name of Director | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Company's Shareholding | | :--- | :--- | :--- | :--- | | Mr. Shao Guoliang | Interest in controlled corporation | 234,000,000 | 46.8% | | Mr. Yuan Liqian | Spouse's interest | 30,000,000 | 6.0% | - Mr. Shao Guoliang's interest is held by Real Charm Corp, which is wholly and beneficially owned by him[53](index=53&type=chunk) - Mr. Yuan Liqian's interest is held through his spouse, Ms. Jiang Fengwen[54](index=54&type=chunk) [Substantial Shareholders' Interests and Short Positions in the Company's Shares, Underlying Shares, or Debentures](index=16&type=section&id=Substantial%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20the%20Company%27s%20Shares%2C%20Underlying%20Shares%2C%20or%20Debentures) Real Charm Corp, Ms. Zhong Ruchun, Wanko Creation Limited, and Ms. Jiang Fengwen are substantial shareholders with significant equity interests Substantial Shareholders' Long Positions in the Company's Ordinary Shares | Name of Shareholder | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Company's Shareholding | | :--- | :--- | :--- | :--- | | Real Charm Corp | Beneficial owner | 234,000,000 | 46.8% | | Ms. Zhong Ruchun | Spouse's interest | 234,000,000 | 46.8% | | Wanko Creation Limited | Beneficial owner | 30,000,000 | 6.0% | | Ms. Jiang Fengwen | Interest in controlled corporation | 30,000,000 | 6.0% | - Real Charm Corp's interest is the same as Mr. Shao Guoliang's interest[59](index=59&type=chunk) - Ms. Zhong Ruchun's interest is held through her spouse, Mr. Shao Guoliang[60](index=60&type=chunk) - Wanko Creation Limited is wholly and beneficially owned by Ms. Jiang Fengwen, and its interest is the same as Mr. Yuan Liqian's interest[60](index=60&type=chunk) [Competition and Conflicts of Interest](index=17&type=section&id=Competition%20and%20Conflicts%20of%20Interest) No competition or conflicts of interest were identified between the Company's business and any directors, controlling shareholders, or their close associates - The Directors are not aware of any business or interest that competes or may compete with the Company's business[62](index=62&type=chunk) - No Director, controlling shareholder, or substantial shareholder of the Company, or any of their respective close associates, is engaged in or has any interest in any business that directly or indirectly competes with the Group's business[62](index=62&type=chunk) [Compliance Adviser's Interests](index=18&type=section&id=Compliance%20Adviser%27s%20Interests) As of July 29, 2020, Frontpage Capital Limited and its associates held no disclosable interests in the Group - The Company appointed Frontpage Capital Limited as its compliance adviser until July 29, 2020[64](index=64&type=chunk) - As of July 29, 2020, the compliance adviser and its directors, employees, and close associates had no notifiable interests in the Group[64](index=64&type=chunk) [Purchase, Sale, or Redemption of the Company's Listed Securities](index=18&type=section&id=Purchase%2C%20Sale%2C%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities during the three months ended July 31, 2020 - During the three months ended July 31, 2020, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[65](index=65&type=chunk) [Corporate Governance Practices](index=18&type=section&id=Corporate%20Governance%20Practices) The Company maintains high corporate governance standards and complied with the Corporate Governance Code for the three months ended July 31, 2020 - The Company is committed to achieving and maintaining high standards of corporate governance[66](index=66&type=chunk) - The Company has complied with the Corporate Governance Code for the three months ended July 31, 2020[66](index=66&type=chunk) [Directors' Securities Transactions](index=18&type=section&id=Directors%27%20Securities%20Transactions) All directors confirmed compliance with the required standard of dealings for securities transactions during the reporting period - The Company has adopted the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules as the code of conduct for directors' securities transactions in the Company[67](index=67&type=chunk) - Following specific inquiries with all directors, all directors confirmed compliance with the required standard of dealings throughout the reporting period and that no non-compliance incidents occurred[67](index=67&type=chunk) [Share Option Scheme](index=19&type=section&id=Share%20Option%20Scheme) A share option scheme was adopted in 2017 to grant options to contributors, but no options have been granted since its adoption - The Share Option Scheme was conditionally adopted on October 24, 2017, to grant share options to any directors, employees, consultants, etc., who have contributed or may contribute to the Group[69](index=69&type=chunk) - The scheme became effective on November 16, 2017, for a period of 10 years[69](index=69&type=chunk) - No share options have been granted by the Company under the Share Option Scheme since its adoption[70](index=70&type=chunk) [Audit Committee](index=19&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the Q1 2020 unaudited condensed consolidated financial statements - The Audit Committee was established on October 24, 2017, and comprises three independent non-executive directors[71](index=71&type=chunk) - Its primary responsibilities include reviewing the Company's financial information and reporting processes, risk management, and internal control systems[71](index=71&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the three months ended July 31, 2020[72](index=72&type=chunk)

Financial Performance - For the fiscal year ending April 30, 2020, the group's revenue increased by approximately HKD 12.8 million or 7.9% to approximately HKD 174.8 million, compared to HKD 162.0 million in 2019[9] - The group's net profit decreased to approximately HKD 18.3 million, down from HKD 23.4 million in 2019[9] - Revenue from customers in China and Hong Kong increased by approximately HKD 19.8 million or about 19.2% for the fiscal year ending April 30, 2020[13] - Revenue from overseas customers (excluding China and Hong Kong) decreased by HKD 7.1 million or 12.0% for the fiscal year ending April 30, 2020[14] - The revenue from LED decorative lights decreased by approximately HKD 19.5 million or 14.7% to about HKD 113.5 million for the year ended April 30, 2020, compared to approximately HKD 133.0 million for the previous year[19] - The revenue from LED lighting lights significantly increased by approximately HKD 32.2 million or 110.7% to about HKD 61.3 million for the year ended April 30, 2020, driven by increased sales to Chinese construction customers[20] - Gross profit increased by approximately HKD 1.1 million or 2.2% to about HKD 50.2 million for the year ended April 30, 2020, while the gross profit margin decreased from approximately 30.3% to about 28.7%[22] - The net profit for the year ended April 30, 2020, was approximately HKD 18.5 million, a decrease of about HKD 4.9 million or 20.9% compared to the previous year, mainly due to increased administrative expenses[29] Operational Developments - The company plans to open a factory in Cambodia, expected to commence operations in the second half of 2020, to enhance customer confidence and company reputation[8] - The company will continue to expand its product range and strengthen marketing strategies to adapt to changing market demands[8] - The group upgraded 41 existing machines to enhance the production capacity of LED products[42] - The group purchased 3 new automatic welding machines to improve the automation level of LED decorative light production[42] - The company established an overseas production base in Phnom Penh, Cambodia, to promote exports to North America, expected to commence operations in the next reporting period[113] Risk Management and Economic Outlook - The global economic outlook is impacted by the COVID-19 pandemic and US-China trade conflicts, prompting the company to adopt a cautious and balanced risk management approach[10] - The company confirmed that there were no significant uncertainties that could cast doubt on its ability to continue as a going concern[99] - The board is responsible for evaluating and determining the nature and extent of risks acceptable in achieving strategic objectives, maintaining an effective risk management and internal control system[101] - The risk management and internal control system was reviewed annually, and the board deemed it effective and adequate for the year ended April 30, 2020[102] Corporate Governance - The board of directors is responsible for leading, controlling, and managing the company, ensuring effective operations and growth to enhance shareholder value[66] - The board composition includes three executive directors and three independent non-executive directors, complying with GEM listing rules[68] - Each director has a term of two years, with a rotation policy ensuring that at least one-third of directors retire at each annual general meeting[75] - Continuous professional development is provided for directors, with participation in seminars and training sessions to stay updated on regulatory developments[76] - The audit committee conducted four meetings during the year, reviewing financial statements and audit results, ensuring compliance with accounting principles[84] - The company has adopted a board diversity policy to enhance performance, considering factors such as gender, age, and professional experience[91] Environmental Impact - The total greenhouse gas emissions during the reporting period amounted to 605.78 tons of CO2 equivalent, with a carbon intensity of 201.93 tons of CO2 equivalent per million units sold[132] - The group achieved a significant reduction of 71.4% in greenhouse gas emissions from gasoline consumption compared to the previous reporting period[143] - The carbon intensity per million sales units has shown an increasing trend due to ongoing business development and the acquisition of advanced automation machinery[140] - Total energy consumption for the reporting period was 1,086,622 kWh, with an energy intensity of 90.55 kWh/m², representing a 14% increase compared to the previous reporting period[148] - The company plans to implement an environmental management system to identify significant environmental impacts and improve overall environmental performance[155] Employee Management - Employee turnover rate for the reporting period was 58.0%, with a turnover rate of 57.1% in China[169] - As of April 30, 2020, the company had a total of 522 employees, with 73% being full-time employees[158] - The company provides competitive compensation packages to retain talented employees and reduce turnover[169] - The company has established a systematic evaluation system to assess employee performance, which is used for salary increases and promotions[167] - All employees received training, with a total training hours of 1,039 hours and an average of 1.99 hours per employee[178] Customer Relations and Quality Control - The company has established a complaint handling procedure to effectively manage and resolve customer complaints[194] - The company has implemented a quality control system that adheres to ISO 9001:2008 standards and conducts rigorous testing to meet safety standards[189] - No significant non-compliance incidents related to health and safety regulations were reported during the period[193] - The company has taken measures to ensure employee health and safety during the COVID-19 pandemic, including flexible work arrangements and regular temperature monitoring[175] Strategic Initiatives - The company is investing in R&D, allocating $EE million towards the development of new technologies and products[54] - Market expansion efforts are underway, targeting new regions with a projected increase in market share of FF%[54] - The company is exploring potential acquisitions to enhance its product offerings and market presence, with a budget of $GG million allocated for this purpose[54] - Strategic partnerships are being formed to leverage synergies, aiming for a combined revenue increase of HH%[54] - The company has implemented cost-cutting measures, resulting in a projected savings of $II million annually[54]

BIT Bortex Global Limited 濠亮環球有限公司* (於開曼群島註冊成立的有限公司) 股份代號：8118 第三季度業績報告 香港聯合交易所有限公司(「聯交所」) GEM 的特色 GEM 的定位,乃為中小型公司提供一個上市的市場,此等公司相比超其他在聯交所上市的公 司帶有較高投資風險,有意投資的人士應了解投資於該等公司的潛在風險,並應經過審慎用詳 的考慮後方作出投資決定。 由於GEM上市公司普邊為中小型公司,在GEM買賣的證券可能會較於聯交所主板買賣的證券 承受較大的市場波動風險,同時無法保證在GEM貫賣的證券會有高流通量的市場。 香港交易及結算所有限公司及香港聯合交易所有限公司對本報告的內容概不負責,對其準確性 或完整性亦不發表任何聲明·並明確表示,概不對因本報告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 本報告包括之資料乃遵照聯交所GEM證券上市規則(「GEM上市規則」而刊載·旨在提供有關 濠亮環球有限公司(「本公司」之資料：本公司董事(「董事」）願就本報告的資料共同及個別承 擔全部責任。各董事在作出一切合理查詢後·確認就彼等所知及所信 ·本報告所載之資料在 ...

Financial Performance - Revenue for the six months ended October 31, 2019, was HKD 49,641,000, a decrease of 1% compared to HKD 50,137,000 for the same period in 2018[25] - Gross profit for the same period was HKD 15,763,000, representing a gross margin of approximately 31.7%[25] - Profit before tax for the six months was HKD 7,246,000, down from HKD 9,532,000 in the previous year, indicating a decline of 24%[25] - Net profit for the period was HKD 5,648,000, compared to HKD 7,617,000 in the prior year, reflecting a decrease of 26%[25] - Total comprehensive income for the period was HKD 4,527,000, down from HKD 5,429,000, a decline of 17%[25] - Basic and diluted earnings per share for the period were HKD 0.10, compared to HKD 1.13 in the previous year[25] - The company reported a foreign exchange loss of HKD 1,121,000 related to the translation of overseas operations[25] Expenses and Costs - Administrative expenses increased to HKD 7,590,000 from HKD 5,531,000, representing a rise of 37%[25] - The group's sales cost rose by approximately 23.1% to about HKD 67.2 million for the six months ended October 31, 2019, compared to HKD 54.6 million for the same period in 2018[154] - Gross profit increased by approximately 16.7% to about HKD 27.3 million for the six months ended October 31, 2019, with a gross margin of approximately 28.9%[155] - Administrative expenses increased by approximately 30.1% to about HKD 12.1 million for the six months ended October 31, 2019, mainly due to increased legal and professional fees[158] Assets and Liabilities - Total assets as of October 31, 2019, amounted to HKD 124,411,000, a slight decrease from HKD 125,179,000 as of April 30, 2019[27] - Non-current assets decreased from HKD 46,481,000 to HKD 29,633,000, primarily due to a reduction in property, plant, and equipment from HKD 18,018,000 to HKD 15,909,000[27] - Current liabilities decreased from HKD 31,458,000 to HKD 25,230,000, with trade payables dropping significantly from HKD 13,736,000 to HKD 5,367,000[27] - Cash and cash equivalents decreased from HKD 16,266,000 to HKD 10,048,000, influenced by foreign exchange losses of HKD 6,676,000[34] - The total equity as of October 31, 2019, was HKD 130,800,000, an increase from HKD 123,354,000 as of April 30, 2019[29] Revenue Breakdown - Revenue from external customers for the six months ended October 31, 2019, totaled HKD 94,478,000, compared to HKD 78,009,000 for the same period in 2018, representing an increase of approximately 21%[81] - Revenue from Canada for the six months ended October 31, 2019, was HKD 22,787,000, up from HKD 21,482,000 in the same period of 2018, indicating a growth of approximately 6%[81] - Revenue from the United States for the six months ended October 31, 2019, decreased to HKD 7,322,000 from HKD 12,663,000 in the same period of 2018, reflecting a decline of approximately 42%[81] - Revenue from China (excluding Hong Kong) for the six months ended October 31, 2019, was HKD 13,182,000, down from HKD 34,457,000 in the same period of 2018, a decrease of approximately 62%[81] - Revenue from LED decorative lights for the six months ended October 31, 2019, was HKD 77,999,000, an increase of 6.5% compared to HKD 72,902,000 for the same period in 2018[86] - Revenue from LED lighting products for the six months ended October 31, 2019, was HKD 16,479,000, a significant increase from HKD 5,107,000 for the same period in 2018[86] Future Outlook and Plans - The company has not disclosed specific future outlook or guidance in the provided content[25] - The group plans to establish a new production line in Phnom Penh, Cambodia, expected to commence operations in Q1 2020, to enhance competitiveness and stabilize exports to North America[149] - The group aims to expand its sales network and customer base by participating in the 2019 Hong Kong International Autumn Lighting Fair[148] Shareholder Information - The major shareholder, Real Charm Corp, holds 46.8% of the company's shares, equivalent to 234 million shares[190] - Another significant shareholder, Wan Ke Chuang Jian Co., Ltd., owns 6.0% of the shares, totaling 30 million shares[196] Compliance and Standards - The company has adopted new and revised Hong Kong Financial Reporting Standards, including HKFRS 16 on leases, which has impacted accounting policies[44] - The financial statements have been prepared in accordance with the same accounting policies adopted in the annual financial statements for the year ended 2019[44] - The company has not identified any significant impact on its financial performance or position from the application of the new standards[44] Research and Development - The group incurred research and development expenses of HKD 2,000 for the six months ended October 31, 2019, compared to HKD 74,000 for the same period in 2018[90] - The company has submitted 11 patent applications, with one new application submitted during the six months ended October 31, 2019[180] Employee and Operational Changes - The total salary cost for the six months ended October 31, 2019, was approximately HKD 11.5 million, with a total of 143 employees[172] - The company hired 7 new sales personnel to strengthen its sales team and participated in trade exhibitions in Hong Kong and other regions[183] - The group purchased 3 new automated welding machines to enhance the production of LED decorative lights, upgrading a total of 36 machines[180]

Financial Performance - For the three months ended July 31, 2019, Bortex Global Limited reported revenue of approximately HKD 44.8 million, a significant increase of HKD 16.9 million or 60.6% compared to HKD 27.9 million for the same period in 2018[6]. - The gross profit for the same period was approximately HKD 11.5 million, up from HKD 7.4 million in the previous year[6]. - The profit for the period was approximately HKD 5.4 million, compared to HKD 2.0 million for the same period in 2018[6]. - Basic and diluted earnings per share for the period were HKD 1.09, compared to HKD 0.40 for the same period in 2018[16]. - The total comprehensive income for the period was HKD 2.9 million, compared to a total comprehensive loss of HKD 2.9 million in the same period last year[16]. - For the three months ended July 31, 2019, the company reported a profit attributable to equity holders of HKD 5,430,000, compared to HKD 2,015,000 for the same period in 2018, representing a significant increase of 169%[86]. - The total tax expense for the three months ended July 31, 2019, was HKD 1,039,000, up from HKD 719,000 in the same period of 2018, indicating a 44.5% increase[80]. Revenue Sources - The increase in revenue was primarily driven by higher sales from LED decorative lighting products to customers in Canada and Hong Kong[6]. - Revenue for the three months ended July 31, 2019, was HKD 44,837,000, a 60.8% increase from HKD 27,872,000 for the same period in 2018[71]. - Revenue from LED decorative lights was HKD 44,317,000, up from HKD 27,429,000 in the previous year[71]. - The company’s revenue from Canada increased to HKD 17,969,000 from HKD 13,744,000 year-over-year[63]. - Revenue from the United States decreased to HKD 1,171,000 from HKD 7,454,000 year-over-year[63]. Expenses and Costs - Administrative expenses increased to HKD 4.5 million from HKD 3.7 million in the previous year[16]. - The total cost of inventory recognized as an expense was HKD 33,309,000 for the three months ended July 31, 2019, compared to HKD 20,424,000 in the same period of 2018, representing an increase of 63%[77]. - Sales costs for the same period were approximately HKD 33.3 million, reflecting an increase of 63.2% from HKD 20.4 million year-on-year[115]. - Research and development expenses for the three months ended July 31, 2019, were HKD 28,000, a decrease from HKD 34,000 in the same period of 2018, reflecting a reduction of 17.6%[77]. - Financial costs for the three months ended July 31, 2019, were approximately HKD 144,000, an increase of about HKD 80,000 or 125.0% compared to the same period in 2018 (HKD 64,000)[122]. Assets and Liabilities - As of July 31, 2019, total assets amounted to HKD 124,659,000, a slight decrease from HKD 125,179,000 as of April 30, 2019[19]. - Non-current assets totaled HKD 48,126,000, compared to HKD 29,633,000 in the previous quarter, indicating a significant increase[19]. - Current liabilities decreased to HKD 30,512,000 from HKD 31,458,000, reflecting improved financial management[19]. - The company's trade receivables as of July 31, 2019, amounted to HKD 41,278,000, down from HKD 62,890,000 as of April 30, 2019, showing a decrease of 34.6%[91]. - The company's trade payables as of July 31, 2019, were HKD 8,698,000, a decrease from HKD 13,736,000 as of April 30, 2019, indicating a reduction of 36.7%[96]. Cash Flow - The net cash generated from operating activities for the three months ended July 31, 2019, was HKD 19,062,000, a turnaround from a cash outflow of HKD 14,743,000 in the same period last year[27]. - Cash and cash equivalents at the end of the period increased to HKD 29,163,000 from HKD 16,266,000, showing a strong liquidity position[27]. - The company reported a net cash inflow from financing activities of HKD (2,242,000), an improvement from HKD (3,001,000) in the previous year[27]. Accounting Standards - The company has adopted new accounting standards effective from May 1, 2019, which may impact future financial reporting[32]. - The group has adopted the Hong Kong Financial Reporting Standard 16 (HKFRS 16) for leases, which replaces HKAS 17 and related interpretations[38]. - The initial application of HKFRS 16 resulted in significant changes in accounting policies, particularly in the definition and recognition of leases[52]. - The group will recognize right-of-use assets at the commencement date of the lease, measured at cost less any accumulated depreciation and impairment losses[40]. - Lease liabilities are recognized at the present value of unpaid lease payments, using the incremental borrowing rate if the implicit rate is not determinable[44]. Corporate Governance - The company has appointed Prosperous Finance Limited as its compliance advisor[144]. - The board confirmed compliance with the trading rules during the three months ended July 31, 2019, with no non-compliance incidents reported[147]. - The company has adhered to the corporate governance code principles as per GEM Listing Rules during the reporting period[146]. - The audit committee was established on October 24, 2017, consisting of three independent non-executive directors[151]. - The audit committee's main responsibilities include reviewing financial information, risk management, and internal control systems[151].

Financial Performance - For the fiscal year ending April 30, 2019, the company's revenue increased by approximately HKD 10.8 million or 7.1% to about HKD 162.0 million, compared to HKD 151.2 million in 2018[9] - Net profit for the same period rose to approximately HKD 23.4 million, up from HKD 7.4 million in 2018[9] - Revenue from Chinese customers increased from approximately HKD 47.0 million to about HKD 86.9 million year-on-year[13] - Sales revenue from LED decorative lighting products grew by approximately HKD 12.6 million or 10.2% to about HKD 132.9 million, compared to HKD 120.3 million in 2018[14] - Sales of the LED lighting series slightly decreased by approximately HKD 1.8 million or 5.8% to about HKD 29.1 million, down from HKD 30.9 million in 2018[14] - Gross profit increased by approximately HKD 6.3 million or 14.7% to about HKD 49.1 million, with the gross profit margin rising from approximately 28.3% to 30.3%[20] - Net profit for the year ended April 30, 2019, was approximately HKD 23.4 million, an increase of about HKD 16.0 million or 216.2% compared to the previous year[26] Risk Management and Strategic Planning - The company plans to broaden its product portfolio to strengthen its market position amid ongoing uncertainties from the US-China trade dispute[10] - The management will adopt a prudent and balanced risk management approach, regularly reviewing and adjusting business strategies[10] - The overall economic environment remains uncertain, with the US-China trade dispute posing a significant risk for the upcoming fiscal year[10] Production and Operations - The company upgraded its LED lighting production line, which was completed in October 2018[14] - The company is exploring the establishment of a new production line in Phnom Penh, Cambodia, to enhance competitiveness and stabilize export sales to North America[15] - The company upgraded 36 existing machines to enhance the production capacity of LED light beads[36] - A total of 3 new automatic welding machines were purchased for the production of LED decorative lights connected to mobile applications[36] - The group plans to upgrade existing production facilities to more energy-efficient equipment to enhance production efficiency at the Dongguan production base[115] - The group aims to strengthen its product R&D capabilities by hiring and training more design and technical professionals[120] Corporate Governance - The company has a strong focus on corporate governance, adhering to the principles outlined in the GEM Listing Rules Appendix 15, and believes it has complied with all code provisions during the reporting period ending April 30, 2019[58] - The management team has extensive experience in international marketing and project management, with key members holding significant positions in various companies and industries[53][54] - The board of directors includes independent non-executive members with over 20 years of experience in accounting and finance, enhancing the company's governance structure[48] - The company has established a remuneration committee to oversee executive compensation, ensuring alignment with performance and shareholder interests[48] - The board consists of three executive directors and three independent non-executive directors, complying with GEM listing rules[61] - The chairman and CEO roles are separated to ensure a balance of power and independent judgment within the board[63] Environmental and Social Responsibility - The group has established an environmental management system to identify significant environmental factors and monitor key environmental performance[121] - The group intends to enhance its knowledge property management by expanding the scope of new product design patents[120] - The group emphasizes the importance of employee engagement and has implemented industry standards such as AA1000 and SA8000 in its operations[120] - The group is committed to promoting sustainable development and social stability through its business growth initiatives[114] - The group has identified five key stakeholder concerns: employment, health and safety, intellectual property, customer service, and product/service quality[111] Employee Management - The total number of employees increased by 285% compared to the previous reporting period, reaching 810 employees as of April 30, 2019[143] - 64% of employees are full-time, while 36% are part-time seasonal workers[145] - Employee turnover rate was 78%, significantly up from 48.57% in the previous year[157] - The company provides competitive compensation and benefits to retain quality employees, including medical insurance and housing funds[153] - Total training hours for employees amounted to 1,112 hours, with an average of 1.37 hours per employee[171] Shareholder Relations - The company emphasizes effective communication with shareholders as key to enhancing investor relations and understanding business performance and strategies[103] - The company provides a website as a communication platform for shareholders and investors, offering information on business developments and operations[103] - The board and senior management will address shareholder questions during the annual general meeting, with auditors present to answer inquiries related to audit work[104] Financial Position and Capital Management - Total liabilities to equity ratio as of April 30, 2019, was approximately 0.06, indicating a low level of debt[27] - Cash and bank balances as of April 30, 2019, were approximately HKD 25.8 million, down from HKD 34.0 million the previous year[28] - The net proceeds from the IPO amounted to approximately HKD 30.1 million, with 55% allocated for upgrading production facilities[40] - The company did not declare a final dividend for the year ended April 30, 2019[187] - There were no distributable reserves available for shareholders as of April 30, 2019[196]

Financial Performance - For the nine months ended January 31, 2019, the group's revenue was approximately HKD 102.1 million, a decrease of about 12.9% compared to HKD 117.4 million for the same period in 2018[7]. - The gross profit for the nine months was approximately HKD 32.1 million, down about 5.0% from HKD 33.8 million in the previous year[7]. - The net profit for the period was approximately HKD 12.7 million, an increase of about 69.3% compared to HKD 7.5 million in the same period last year[7]. - The total comprehensive income for the nine months was HKD 8.8 million, down from HKD 10.5 million in the previous year[11]. - The group's total sales cost decreased by approximately HKD 13.6 million or 16.3% to about HKD 70.0 million for the nine months ended January 31, 2019, down from approximately HKD 83.6 million for the same period in 2018[47]. - The overall gross profit margin increased from approximately 28.8% for the nine months ended January 31, 2018, to approximately 31.5% for the same period in 2019, primarily due to higher sales profit margins from the LED decorative light series[48]. - The group's profit for the period was approximately HKD 12.7 million, an increase of about HKD 5.2 million or 69.3% compared to the previous year, mainly due to the absence of the one-time listing expense[54]. Revenue Breakdown - Revenue from external customers for the nine months ended January 31, 2019, was HKD 102,110, a decrease from HKD 117,367 in the same period of 2018, indicating a decline of about 12.9%[27]. - Revenue from the Chinese market increased significantly to HKD 48,840 for the nine months ended January 31, 2019, compared to HKD 21,482 in the previous year, marking a growth of approximately 127.5%[27]. - Revenue from Hong Kong decreased to HKD 8,213 from HKD 30,487, a decline of about 73.0% year-over-year[27]. - For the nine months ended January 31, 2019, the revenue from the LED decorative lighting series was approximately HKD 92.8 million, a decrease of about HKD 6.9 million or 6.9% compared to the same period in 2018 (HKD 99.7 million)[45]. - The revenue from the LED lighting series for the nine months ended January 31, 2019, was approximately HKD 9.3 million, a significant decrease of about HKD 8.4 million or 47.5% compared to the same period in 2018 (HKD 17.7 million)[46]. - Sales to North American customers for LED products decreased significantly by approximately 27.3% to about HKD 34.7 million for the nine months ended January 31, 2019, compared to HKD 47.7 million for the same period in 2018[41]. Expenses and Costs - The administrative expenses decreased significantly due to the absence of one-time listing expenses of HKD 9.8 million incurred in the previous year[7]. - The company's financing costs decreased by approximately HKD 1.3 million or 92.9% to about HKD 0.1 million for the nine months ended January 31, 2019, primarily due to a reduction in the average balance of bank borrowings during the period[53]. - Administrative expenses decreased by approximately HKD 6.4 million or 32.3% to about HKD 13.4 million for the nine months ended January 31, 2019, mainly due to the absence of a one-time listing expense of approximately HKD 9.8 million incurred in the previous year[52]. Dividends and Shareholder Information - The company did not declare an interim dividend for the nine months ended January 31, 2019, consistent with the previous year[8]. - The board decided not to declare an interim dividend for the nine months ended January 31, 2019, and there is currently no predetermined dividend payout ratio[54]. - Major shareholder Real Charm Corp holds 234,000,000 shares, representing approximately 46.8% of the company's equity[62]. - Major shareholder Wan Ke Chuang Jian Co., Ltd. holds 30,000,000 shares, representing approximately 6.0% of the company's equity[62]. Corporate Governance - The company is committed to maintaining high standards of corporate governance, which is essential for gaining and maintaining the trust of shareholders and stakeholders[73]. - The company has adhered to the corporate governance code as per GEM Listing Rules throughout the reporting period[73]. - There are no known conflicts of interest or competitive businesses held by directors or major shareholders as of January 31, 2019[68]. - The company has appointed a compliance advisor, and there are no interests that need to be disclosed under the GEM Listing Rules[71]. Strategic Focus and Developments - The company continues to focus on the design, manufacturing, and trading of LED lighting products, with no indication of diversifying into other business segments[26]. - The company plans to establish a new production line in Phnom Penh, Cambodia, which is expected to enhance competitiveness and improve export sales to North America[43]. - The company is focusing on developing and marketing smart lighting products in the mainland China market to mitigate the impact of the US-China trade dispute[42]. - The company has not reported any new product launches or technological advancements during this period[20]. - The company has not engaged in any mergers or acquisitions during the reported period[20]. Research and Development - The group incurred research and development expenses of HKD 42,000 during the reporting period[33]. Audit and Compliance - The audit committee reviewed the unaudited condensed consolidated financial statements for the nine months ending January 31, 2019[79]. - The company has not granted any share options under the share option scheme since its adoption[75]. - The share option scheme is effective for a period of 10 years from November 16, 2017, unless otherwise cancelled or amended[74]. - The company has not identified any other individuals with interests in its shares that require disclosure under the Securities and Futures Ordinance[67].