Financial Performance - For the three months ended July 31, 2022, the group's revenue was approximately HKD 46.7 million, a decrease of about HKD 9.8 million or 17.3% compared to HKD 56.5 million in the same period last year[13] - The gross profit for the same period was approximately HKD 9.0 million, down about 40.8% from HKD 15.2 million in the previous year[14] - The profit for the period was approximately HKD 6.1 million, a decrease of about HKD 3.0 million or 33.0% compared to HKD 9.1 million in the same period last year, primarily due to reduced revenue from LED lighting and decorative products[15] - The total comprehensive income for the period was HKD 4.76 million, down from HKD 9.29 million in the previous year[19] - Basic and diluted earnings per share for the period were HKD 1.22, compared to HKD 1.82 in the same period last year[19] - The group reported a foreign exchange loss of HKD 1.34 million from the translation of overseas operations[19] - Revenue for the three months ended July 31, 2022, was approximately HKD 46.7 million, a decrease of about HKD 9.8 million or 17.3% compared to HKD 56.5 million for the same period in 2021[50] - Net profit for the three months ended July 31, 2022, was approximately HKD 6.1 million, a decrease of about HKD 3.0 million or 33.0% compared to HKD 9.1 million for the same period in 2021[51] Dividend and Shareholder Returns - The board has resolved not to declare an interim dividend for the three months ended July 31, 2022, consistent with the previous year[16] - The group did not declare or propose any dividends for the three months ended July 31, 2022, consistent with the previous year[40] - The company has decided not to declare an interim dividend for the three months ended July 31, 2022[67] Revenue Breakdown - Revenue from Canadian customers increased by approximately HKD 11.8 million or 52.9%, reaching about HKD 22.3 million compared to the same period last year[50] - Revenue from U.S. customers rose approximately HKD 8.7 million or 271.9%, totaling about HKD 11.9 million for the three months ended July 31, 2022[50] - For the three months ended July 31, 2022, the revenue from LED decorative light products was approximately HKD 46.7 million, a decrease of about HKD 5.1 million or 9.8% compared to the same period in 2021 (HKD 51.8 million)[56] - The revenue from LED lighting products was nil for the three months ended July 31, 2022, compared to approximately HKD 4.7 million in the same period in 2021, due to a lack of sales orders from Chinese customers[57] Cost and Expenses - The cost of sales for the three months ended July 31, 2022, was HKD 37.7 million, compared to HKD 41.3 million for the same period in 2021[39] - Selling and distribution expenses for the three months ended July 31, 2022, were approximately HKD 0.5 million, a decrease of about HKD 0.2 million or 28.6% compared to the same period in 2021 (HKD 0.7 million)[62] - Administrative expenses for the three months ended July 31, 2022, were approximately HKD 3.3 million, a decrease of about HKD 0.5 million or 13.2% compared to the same period in 2021 (HKD 3.8 million)[64] - Total tax expenses for the three months ended July 31, 2022, amounted to HKD 1.3 million, a decrease from HKD 2.0 million in the same period last year[43] Research and Development - The group’s R&D expenses for the three months ended July 31, 2022, were HKD 19,000, slightly down from HKD 22,000 in the previous year[39] Future Outlook and Strategy - The company continues to focus on the LED lighting market, which remains a key area for future growth despite recent revenue declines[27] - Management believes that the gradual easing of lockdown measures in China and Hong Kong will be a decisive factor for business recovery in the second half of 2022[52] - The group plans to continue a prudent and balanced risk management approach in the coming years, leveraging tax incentives from the production line in Cambodia to enhance competitiveness[52] - The company is exploring new business activities, including the production and sale of home-based AI robots related to traditional Chinese medicine, which management believes will enhance operational and financial performance[55] Corporate Governance - The company has not engaged in any competitive business activities or conflicts of interest with its directors or major shareholders during the three months ended July 31, 2022[80] - No purchase, sale, or redemption of the company's listed securities occurred during the three months ended July 31, 2022[81] - The company has adhered to the corporate governance code as per GEM listing rules during the three months ended July 31, 2022[82] - The audit committee reviewed the unaudited consolidated financial statements for the three months ended July 31, 2022[89] - The company has not granted any options under the share option scheme since its adoption[87]

Financial Performance - The company's revenue decreased by approximately HKD 51.0 million or 25.4% to about HKD 149.9 million for the year ended April 30, 2022, compared to HKD 200.9 million in 2021[13]. - The net profit dropped to approximately HKD 5.7 million, down from HKD 24.1 million in 2021[13]. - For the year ended April 30, 2022, the company's revenue was approximately HKD 149.9 million, a decrease of about HKD 51.0 million or 25.4% compared to the previous year[18]. - Revenue from LED lighting products decreased by approximately HKD 35.4 million or 65.4%, while revenue from LED decorative lights decreased by approximately HKD 15.5 million or 10.6%[18]. - Sales from US customers decreased from approximately HKD 22.8 million to about HKD 15.5 million, a reduction of approximately HKD 7.3 million or 32.0%[19]. - The company's gross profit decreased from approximately HKD 55.2 million to about HKD 33.3 million, a decline of approximately HKD 21.9 million or 39.7%[26]. - The gross profit margin decreased from approximately 27.5% to about 22.2% due to increased sales of lower-margin LED decorative lights[26]. - The company's net profit for the year was approximately HKD 5.7 million, a decrease of about HKD 18.4 million or 76.3% compared to the previous year[33]. - Cash and bank balances as of April 30, 2022, were approximately HKD 57.0 million, down from HKD 58.9 million the previous year[35]. - The current ratio as of April 30, 2022, was 4.4 times, compared to 4.7 times the previous year[35]. Operational Challenges - The manufacturing operations were impacted by city lockdown policies during the Chinese New Year, leading to a temporary halt or low production activity from February to March 2022[11]. - The Cambodian factory has been operational since October 2020, but has not yet achieved full capacity due to the pandemic situation in Cambodia[12]. - The global economic outlook remains affected by the pandemic, prompting the company to adopt a cautious and balanced risk management approach[14]. - The demand for lighting products has significantly increased despite the overall decrease in revenue due to cautious consumer behavior[11]. Strategic Initiatives - The company plans to expand its product portfolio to strengthen its market position both locally and internationally[14]. - The company aims to enhance its reputation and build confidence among overseas customers through the establishment of the Cambodian factory[12]. - Management believes that the global vaccination progress and easing of lockdown measures will be key factors for economic recovery in the second half of 2022[20]. - The group purchased 6 new automatic welding machines and upgraded 15 machines to enhance the production of LED decorative lights[48]. - A total of 11 patent applications and one new patent application were submitted to expand the product portfolio and strengthen product development capabilities[48]. - The group hired 7 new sales personnel to strengthen sales and marketing efforts as of April 30, 2022[51]. Corporate Governance - The board of directors is responsible for leading, controlling, and managing the company, ensuring effective operations and growth to enhance shareholder value[80]. - The board composition as of April 30, 2022, includes 4 executive directors and 3 independent non-executive directors, complying with GEM listing rules[83]. - The company has received annual confirmations of independence from all independent non-executive directors, affirming their compliance with GEM listing rules[84]. - The chairman and CEO roles are separated to ensure a balance of power, with the current chairman being Mr. Shao Guoliang and Mr. Shao Chiliang serving as CEO since March 10, 2022[88]. - All directors undergo formal training upon appointment to understand the company's operations and regulatory responsibilities[92]. - The company has established a policy for the appointment and removal of directors, with terms set at two years[89]. - The board regularly reviews the delegated responsibilities to senior management, ensuring major transactions require prior board approval[80]. - Independent non-executive directors contribute to the board by providing diverse business and financial expertise, ensuring checks and balances for the company and shareholders[83]. - The company emphasizes continuous professional development for directors, providing updates on regulatory changes and market developments[92]. - The board has complied with the corporate governance code throughout the fiscal year ending April 30, 2022[81]. Environmental and Social Responsibility - The company has adhered to the "comply or explain" principle of the Environmental, Social, and Governance (ESG) reporting guidelines during the reporting period[155]. - The board believes that good ESG practices can enhance corporate investment value and provide long-term returns to stakeholders[156]. - The company has completed its ESG targets during the reporting period and will regularly review the progress of these targets to continuously improve its environmental performance[156]. - The company has implemented social responsibility standards such as SA8000:2014 in its operational and management policies[176]. - The company has conducted a materiality assessment to identify significant environmental and social issues impacting stakeholders[161]. - The company has not violated any significant environmental laws and regulations related to air and greenhouse gas emissions during the reporting period[177]. - The company encourages employees at all levels to consider environmental protection as an important factor in business decision-making[172]. - The company has completely eliminated all fossil fuel vehicles in its operations, achieving zero direct air emissions during the reporting period[178]. - Total greenhouse gas emissions amounted to 782.6 tons CO₂ equivalent, a decrease from 886.0 tons in 2021, with a greenhouse gas emission intensity of approximately 5.2 tons per million revenue[183]. - The company set a greenhouse gas emission target of 840 tons for the reporting period and successfully met this target[184]. - Energy consumption decreased by 13.9% to 936,361 MWh from 1,087,160 MWh in 2021, with a target of 1,000,000 MWh achieved[194]. - Water consumption also decreased by 13.0% to 12,925 cubic meters, with no issues in obtaining water for daily operations[194]. - The company plans to implement an environmental management system to identify significant environmental impacts and improve overall environmental performance[199]. - The board will lead discussions on climate change and related risks, with policies to be developed to address identified issues[200].

Financial Performance - The group's revenue for the nine months ended January 31, 2022, was approximately HKD 138.4 million, a decrease of about 18.3% compared to HKD 169.5 million in the same period of 2021[7]. - Gross profit for the nine months was approximately HKD 36.0 million, down 26.7% from HKD 49.1 million year-on-year[8]. - Profit for the period was approximately HKD 15.7 million, a decrease of about 27.6% compared to HKD 21.7 million in the same period of 2021[8]. - The total comprehensive income for the nine months was HKD 19.1 million, down from HKD 29.2 million in the previous year[14]. - The company’s basic earnings per share for the nine months was HKD 3.10, compared to HKD 4.33 in the same period of 2021[14]. - The company reported a net profit of HKD 2.1 million for the three months ended January 31, 2022, compared to HKD 6.3 million in the same period of 2021[12]. - The company reported a net loss of HKD 583,000 due to foreign exchange losses for the nine months ended January 31, 2022[28]. Revenue Breakdown - The company experienced a significant decrease in revenue from LED lighting products, which contributed to the overall decline in profit[8]. - Revenue from the LED decorative lights and LED lighting products for the nine months ended January 31, 2022, was HKD 122,484,000 and HKD 15,898,000 respectively[27]. - The revenue from the Chinese market (excluding Hong Kong) for the nine months ended January 31, 2022, was HKD 35,640,000, down from HKD 52,733,000 in the previous year[24]. - The revenue from the US market for the nine months ended January 31, 2022, was HKD 10,894,000, a decrease of 35.2% compared to HKD 16,827,000 in the previous year[24]. - Revenue from LED lighting products decreased significantly by approximately HKD 21.1 million or 57.0%, while revenue from LED decorative lighting products decreased by approximately HKD 10.0 million or 7.5%[39][44]. Expenses and Costs - The total operating expenses for the nine months ended January 31, 2022, amounted to HKD 102,391,000, a decrease from HKD 120,387,000 in the previous year[28]. - The total tax expense for the nine months ended January 31, 2022, was HKD 2,833,000, a decrease from HKD 6,946,000 in the previous year[32]. - Sales and distribution expenses decreased by approximately HKD 0.8 million or 26.7% to about HKD 2.2 million for the nine months ended January 31, 2022[48]. - Administrative expenses decreased by approximately HKD 3.2 million or 21.6% to about HKD 11.6 million for the nine months ended January 31, 2022[49]. - The company incurred research and development expenses of HKD 40,000 for the nine months ended January 31, 2022, compared to HKD 90,000 in the previous year[28]. Dividends and Shareholder Information - The board decided not to declare an interim dividend for the period[9]. - The company did not declare any dividends for the period ended January 31, 2022, consistent with the previous year[29]. - Major shareholder Real Charm Corp holds 234,000,000 shares, representing 46.8% of the company's total issued shares as of January 31, 2022[61]. - The beneficial owner of Real Charm Corp, Mr. Shao Guoliang, is considered to have an interest in the company's shares due to his full ownership of Real Charm Corp[61]. - No other directors or key executives were reported to have any interests or short positions in the company's shares as of January 31, 2022[59]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to build trust with shareholders and stakeholders[67]. - The company has complied with the corporate governance code as per GEM listing rules during the nine months ending January 31, 2022[67]. - The board of directors confirmed compliance with the trading rules for securities transactions during the nine months ending January 31, 2022[70]. - There were no reported conflicts of interest or competitive businesses held by directors or major shareholders as of January 31, 2022[65]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the nine months ending January 31, 2022[74]. Future Outlook - The company plans to enhance marketing efforts to attract potential customers in the U.S. and expand its customer base due to tax incentives from its new production line in Cambodia[40][42]. - The management believes that the progress of global vaccination and the easing of lockdown measures will be decisive factors for global economic recovery in the second half of 2022[42]. Other Information - The company has no capital commitments for property, plant, and equipment as of January 31, 2022[36]. - The company has not purchased, sold, or redeemed any of its listed securities during the nine months ending January 31, 2022[66]. - The company has adopted a share option scheme effective from November 16, 2017, which is valid for 10 years, but no options have been granted under this scheme since its adoption[71][72].

Financial Performance - Revenue for the six months ended October 31, 2021, was HKD 54,979,000, a decrease of 22.6% compared to HKD 71,271,000 for the same period in 2020[19] - Gross profit for the same period was HKD 14,071,000, representing a gross margin of 25.6%[19] - The net profit for the six months ended October 31, 2021, was HKD 4,487,000, down 52.7% from HKD 9,472,000 in the previous year[19] - Total comprehensive income for the period was HKD 5,561,000, a decrease of 54.3% compared to HKD 12,177,000 in the same period last year[19] - Basic and diluted earnings per share for the period were HKD 0.90, down from HKD 1.89 in the previous year[19] - The company reported a foreign exchange gain of HKD 1,074,000 for the period, compared to HKD 2,705,000 in the same period last year[19] - The company reported a net profit of HKD 15,407,000 for the six months ended October 31, 2021, compared to a profit of HKD 13,611,000 for the same period in 2020, representing an increase of approximately 13.2%[23] - The group reported a profit attributable to owners of the company of HKD 13,611,000 for the six months ended October 31, 2021, compared to HKD 15,407,000 for the same period in 2020, representing a decrease of 12%[67] - The net profit for the six months ended October 31, 2021, decreased by approximately HKD 1.8 million or 11.7% to about HKD 13.6 million, compared to approximately HKD 15.4 million for the six months ended October 31, 2020[131] - The overall profit margin decreased from approximately 12.7% to about 12.2% due to a reduction in gross profit[131] Revenue Breakdown - Revenue from Canada for the six months ended October 31, 2021, was HKD 49,962,000, a significant increase from HKD 33,934,000 in the same period of 2020, marking a growth of approximately 47.2%[42] - Revenue from the United States decreased to HKD 8,077,000 for the six months ended October 31, 2021, down from HKD 16,702,000 in the same period of 2020, representing a decline of about 51.5%[42] - The company's total revenue for the six months ended October 31, 2021, was HKD 111,497,000, compared to HKD 121,139,000 for the same period in 2020, reflecting a decline of about 8.0%[42] - For the six months ended October 31, 2021, the total revenue was HKD 111,497,000, a decrease of 8% compared to HKD 121,139,000 for the same period in 2020[49] - Revenue from LED decorative lights was HKD 101,093,000 for the six months ended October 31, 2021, down 4% from HKD 106,284,000 in the same period of 2020[49] - Revenue from LED lighting products was HKD 10,404,000 for the six months ended October 31, 2021, a decrease of 30% compared to HKD 14,855,000 for the same period in 2020[49] - Revenue from LED decorative light products was approximately HKD 101.1 million, a decrease of about HKD 5.2 million or 4.9% compared to HKD 106.3 million in the same period last year[119] - Revenue from LED lighting products was approximately HKD 10.4 million, a significant decline of about HKD 4.5 million or 30.2% compared to HKD 14.9 million in the same period last year[120] Assets and Liabilities - Current assets increased to HKD 211,626,000 as of October 31, 2021, compared to HKD 187,182,000 as of April 30, 2021[20] - Trade receivables rose to HKD 62,037,000 from HKD 49,402,000, indicating a 25.4% increase[20] - Total liabilities increased to HKD 47,279,000 from HKD 40,732,000, reflecting a rise of 15.0%[20] - The company's net assets increased to HKD 180,955,000 as of October 31, 2021, compared to HKD 166,104,000 as of April 30, 2021[20] - Trade receivables increased to HKD 65,310,000 as of October 31, 2021, up from HKD 50,120,000 as of April 30, 2021, representing a growth of 30.2%[72] - The expected credit loss provision for trade receivables rose to HKD 3,253,000 as of October 31, 2021, compared to HKD 718,000 as of April 30, 2021, indicating a significant increase in credit risk[75] - Trade payables increased to HKD 13,258,000 as of October 31, 2021, compared to HKD 6,069,000 as of April 30, 2021, reflecting a growth of 118.1%[79] - Accrued expenses decreased to HKD 3,708,000 as of October 31, 2021, down from HKD 4,592,000 as of April 30, 2021, showing a reduction of 19.2%[82] - The group reported a total of HKD 29,955,000 in deposits, prepayments, and other receivables as of October 31, 2021, compared to HKD 11,223,000 as of April 30, 2021, marking an increase of 166.5%[78] Cash Flow and Financing - The company experienced a net cash outflow from operating activities of HKD 10,470,000 for the six months ended October 31, 2021, compared to a cash inflow of HKD 13,445,000 in the same period of 2020[28] - The company reported a total cash and cash equivalents balance of HKD 50,225,000 as of October 31, 2021, slightly up from HKD 50,043,000 at the end of the previous year[28] - The company’s cash flow from financing activities generated HKD 1,394,000 for the six months ended October 31, 2021, compared to HKD 9,587,000 in the same period of 2020, indicating a decrease of approximately 85.4%[28] - As of October 31, 2021, the group's cash and bank balances were approximately HKD 50.3 million, down from HKD 58.9 million as of April 30, 2021[133] - The current ratio as of October 31, 2021, was 4.5 times, slightly down from 4.7 times as of April 30, 2021, indicating sufficient resources to meet operational financial needs[133] Research and Development - The group incurred research and development expenses of HKD 435,000 for the six months ended October 31, 2021, compared to HKD 97,000 in the same period of 2020[55] - The group has submitted 11 patent applications, with one new application filed during the six months ended October 31, 2021[146] - The company plans to enhance the automation level and efficiency of its LED decorative light series as part of its product development strategy[151] - The company aims to expand its product portfolio and strengthen product development capabilities, allocating 5% of the funds, or HKD 1.5 million, for this purpose[151] Corporate Governance and Compliance - The group did not declare or propose any dividends during the reporting period[61] - The board decided not to declare an interim dividend for the six months ended October 31, 2021[142] - The company has adhered to the corporate governance code as per GEM listing rules during the reporting period[171] - The company has not granted any stock options under the stock option plan since its adoption on November 16, 2017[174] - The audit committee was established on October 24, 2017, consisting of three independent non-executive directors[177] - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended October 31, 2021[178] Marketing and Sales Strategy - The company plans to enhance its marketing efforts to attract potential customers in the U.S. and expand its customer base, leveraging tax incentives for exports to the U.S.[115] - The company expects global economic recovery to improve sales, particularly from North American customers, as vaccination rates increase and lockdown measures are relaxed[116] - The group hired 7 new sales personnel to strengthen sales and marketing efforts[149] - The group participated in trade exhibitions in Hong Kong and conducted market exploration in the USA, Philippines, Europe, and West Africa during 2019 and 2020[149] Capital Utilization - The company utilized approximately 55% of the total funds for upgrading production facilities, amounting to HKD 16.6 million[151] - A total of HKD 30.1 million was raised, with HKD 25.3 million already utilized and HKD 4.8 million remaining[151] - 25% of the funds, equating to HKD 7.5 million, was allocated for repaying short-term bank loans and finance leases[151] - General working capital accounted for 10% of the total funds, amounting to HKD 3.0 million[151] - The expected timeline for utilizing the remaining funds is based on the company's best estimates, considering current and future market conditions[152] Production Efficiency - The group upgraded 44 existing machines and purchased 6 new automatic welding machines to enhance production efficiency for LED decorative lights[146]

Financial Performance - For the three months ended July 31, 2021, the group's revenue was approximately HKD 56.5 million, an increase of about 13.2% compared to approximately HKD 49.9 million in the same period of 2020[7] - The gross profit for the same period was approximately HKD 15.2 million, up about 11.8% from approximately HKD 13.6 million in the prior year[8] - The profit for the period was approximately HKD 9.1 million, representing an increase of about 54.2% compared to HKD 5.9 million in the same period of 2020[9] - The pre-tax profit for the period was HKD 11.2 million, compared to HKD 7.5 million in the same period of 2020[13] - The basic and diluted earnings per share for the period were HKD 1.82, compared to HKD 1.19 in the same period of 2020[13] - The total comprehensive income for the period was HKD 9.3 million, compared to HKD 7.7 million in the same period of 2020[13] - The company reported a net profit attributable to equity holders of HKD 9,046,000 for the three months ended July 31, 2021, compared to HKD 5,935,000 for the same period in 2020, reflecting a growth of 52.5%[45] Revenue Breakdown - For the three months ended July 31, 2021, the company's revenue from LED decorative lights was HKD 51,817,000, an increase of 7.4% compared to HKD 48,176,000 for the same period in 2020[33] - The revenue from LED lighting products was HKD 4,701,000, significantly up from HKD 1,692,000 in the previous year, representing a growth of 177.5%[33] - Total revenue for the three months ended July 31, 2021, was HKD 56,518,000, compared to HKD 49,868,000 for the same period in 2020, marking an overall increase of 13.3%[33] - Revenue from LED decorative light products for the same period was approximately HKD 51.8 million, an increase of about HKD 3.6 million or 7.5% compared to HKD 48.2 million in 2020[53] - Revenue from LED lighting products significantly increased to approximately HKD 4.7 million, a rise of about HKD 3.0 million or 176.5% compared to HKD 1.7 million in 2020[54] Expenses and Costs - The gross profit margin for the period was impacted by the cost of sales, which amounted to HKD 41,287,000, up from HKD 36,277,000 in the previous year[38] - The total tax expense for the period was HKD 2,034,000, an increase from HKD 1,556,000 in the previous year, indicating a rise of 30.7%[40] - Administrative expenses decreased to HKD 3.8 million from HKD 4.8 million in the previous year, aiding profit improvement[9] - Sales and distribution expenses increased to approximately HKD 0.7 million, up about HKD 0.1 million or 16.7% compared to HKD 0.6 million in 2020[57] - The company incurred research and development expenses of HKD 22,000, slightly down from HKD 24,000 in the previous year[38] Dividend and Shareholder Information - The board decided not to declare an interim dividend for the three months ended July 31, 2021, consistent with the previous year[10] - The company did not declare any dividends for the period, consistent with the previous year[39] - Real Charm Corp holds a beneficial interest of 234,000,000 shares, representing 46.8% of the company's ordinary shares[74] - Vanke Creation Co., Ltd. owns 30,000,000 shares, accounting for 6.0% of the company's ordinary shares[74] - The company did not purchase, sell, or redeem any of its listed securities during the three months ended July 31, 2021[84] Corporate Governance - The company maintains high standards of corporate governance to build trust with shareholders and stakeholders[85] - There were no known conflicts of interest or competitive businesses involving directors or major shareholders during the reporting period[81] - The company has complied with the corporate governance code as per GEM Listing Rules during the reporting period[85] - The board of directors confirmed compliance with trading standards during the three months ended July 31, 2021[86] - The audit committee reviewed the unaudited condensed consolidated financial statements for the three months ended July 31, 2021[92] Future Outlook - The company plans to leverage tax incentives from its new production line in Cambodia to enhance competitiveness and stabilize export sales to North America amid trade tensions[50] - The company will continue to adopt a prudent and balanced risk management approach in the coming years[50] Share Option Scheme - The company has adopted a share option scheme effective from November 16, 2017, which is valid for 10 years[87] - No share options have been granted under the share option scheme since its adoption[88]

Financial Performance - For the fiscal year ending April 30, 2021, the group's revenue increased by approximately HKD 26.1 million or 13.0% to approximately HKD 200.9 million, compared to HKD 174.8 million in 2020[9] - The group's net profit rose to approximately HKD 23.6 million, up from HKD 18.3 million in 2020[9] - The group's revenue for the year ended April 30, 2021, was approximately HKD 200.9 million, an increase of about HKD 26.1 million or 14.9% compared to approximately HKD 174.8 million for the year ended April 30, 2020[15] - Revenue from LED decorative lights increased to approximately HKD 146.8 million, a rise of about HKD 33.3 million or 29.3% from approximately HKD 113.5 million in the previous year[19] - Revenue from LED lighting lights decreased to approximately HKD 54.1 million, a decline of about HKD 7.2 million or 11.7% from approximately HKD 61.3 million in the previous year[20] - The group's gross profit increased to approximately HKD 55.2 million, up about HKD 5.0 million or 10.0% from approximately HKD 50.2 million in the previous year[22] - The group's net profit for the year was approximately HKD 24.1 million, an increase of about HKD 5.6 million or 30.3% compared to the previous year's profit[30] - As of April 30, 2021, the group's cash and bank balances were approximately HKD 58.9 million, compared to HKD 29.8 million as of April 30, 2020[32] - The group's current ratio as of April 30, 2021, was 4.7 times, an increase from 3.7 times in the previous year[32] Business Operations and Strategy - The company has established a factory in Cambodia, which began operations in October 2020, although it has not yet achieved full capacity due to the pandemic situation in Cambodia[8] - The company aims to expand its product portfolio to strengthen its market position both locally and internationally[10] - The company has seen an increase in sales orders from existing customers and has engaged with new customers for business cooperation[8] - The global economic outlook remains affected by the pandemic, prompting the company to adopt a prudent and balanced risk management approach[10] - The company emphasizes the importance of good customer relationships, product quality, and high employee morale for continued business development[8] - The company has maintained a good reputation and product quality in the LED lighting business since its listing in 2017[9] - The company is committed to building a good corporate reputation and enhancing overseas customer confidence through its operations in Cambodia[8] - The group plans to participate in various exhibitions globally in the coming years to enhance its market presence[16] - The new production line in Phnom Penh, Cambodia, is expected to enhance the group's competitiveness due to tax incentives for exports to the United States[16] - The company participated in various exhibitions and trade fairs to expand its sales channels, including events in Hong Kong and the United States[48] Human Resources and Employee Welfare - The total employee count as of April 30, 2021, was 194, a decrease from 199 in 2020, with total salary costs amounting to approximately HKD 24.3 million, up from HKD 21.0 million in 2020[39] - The company hired 7 new sales personnel to strengthen its sales and marketing efforts[48] - The company has a total workforce of 553 employees, with 68% being full-time employees[194] - The group emphasizes the importance of hiring and retaining high-quality employees, following fair and transparent recruitment processes based on objective criteria[199] - Basic salaries are determined according to the group's compensation standards, market salary levels, and employee positions, with discretionary bonuses awarded based on performance[199] - Employees are entitled to various types of leave, including annual leave, sick leave, and maternity leave, in accordance with Chinese labor laws[199] - The group provides statutory social insurance for employees, including pension, unemployment, work injury, medical, maternity insurance, and housing provident fund[199] - The group has prioritized employee welfare during the COVID-19 pandemic by canceling entertainment activities and providing holiday gifts during major festivals[200] - The group expressed care and support for female employees on International Women's Day[200] Corporate Governance - The company emphasizes the importance of good corporate governance for maintaining transparency and accountability[71] - The board of directors is responsible for leading, controlling, and managing the company, ensuring effective operations and growth[73] - The board composition includes three executive directors and at least three independent non-executive directors, complying with GEM listing rules[76] - All directors have a designated term of two years, with provisions for re-election at the annual general meeting[82] - The company has adhered to all principles of the corporate governance code as of April 30, 2021[72] - The chairman and CEO roles are separated to ensure a balance of power and independent judgment[79] - The company has a robust internal control and risk management system in place[73] - The independent non-executive directors contribute to the establishment of effective policies and provide checks and balances for the company[76] - The company secretary oversees overall financial management and compliance matters[67] - The management team is empowered to handle daily operations, with significant transactions requiring board approval[73] - The board of directors has conducted a total of 5 meetings and 1 annual general meeting, with all executive directors attending all meetings[86] - The audit committee held 4 meetings during the year, reviewing the group's financial statements and compliance with accounting principles[95] - The company has adopted the GEM Listing Rules for securities trading standards, with all directors confirming compliance for the year ending April 30, 2021[88] - The company has established a written guideline for employees who may possess insider information regarding securities trading[88] - The independent non-executive directors participated in various training sessions to ensure compliance with corporate governance codes[83] - The audit committee consists of three independent non-executive directors, ensuring compliance with GEM Listing Rules[94] - The company has provided continuous professional development for directors to keep abreast of legal and regulatory developments[83] - The board has established three committees: the remuneration committee, nomination committee, and audit committee, to oversee specific areas of the company's affairs[93] - The company has ensured that all board members have the opportunity to propose agenda items for meetings[86] - The company will notify directors and relevant employees in advance of any trading restrictions related to the company's securities[89] - The company has adopted a board diversity policy to enhance performance, ensuring a balanced composition in terms of skills, knowledge, and experience as of April 30, 2021[105] - The Nomination Committee held two meetings during the year, reviewing the board's structure and recommending the re-election of retiring directors[106] - The Remuneration Committee conducted two meetings to review the company's existing remuneration policies and proposed recommendations to the board regarding the compensation of directors and senior management[111] - The annual salary range for senior management members, including executive directors, was reported, with three individuals earning between 0 to 1,000,000 HKD[112] - The board confirmed its responsibility for preparing the financial statements for the year ending April 30, 2021, ensuring clarity and transparency in reporting[116] - There were no significant uncertainties that could raise doubts about the company's ability to continue as a going concern[117] Risk Management and Internal Control - The risk management and internal control system is designed to protect assets from misappropriation and unauthorized transactions, ensuring operational risk management[118] - The board of directors is responsible for evaluating and determining the nature and extent of risks acceptable to the company in achieving strategic objectives[119] - The audit committee assists the board in overseeing the design, implementation, and monitoring of the risk management and internal control system[119] - The company reported an audit fee of HKD 900,000 for the fiscal year ending April 30, 2021[126] - The risk management and internal control system is reviewed annually, covering financial reporting, internal audit functions, and employee qualifications[119] Environmental and Social Responsibility - During the reporting period, the group generated 886.03 tons of CO2 equivalent greenhouse gas emissions, with a carbon intensity of 0.07 tons of CO2 equivalent per square meter[167] - The overall carbon intensity was 285.8 tons of CO2 equivalent per million products sold, indicating a focus on improving production efficiency and sustainability[167] - The group has eliminated all fossil fuel vehicles in response to China's national policy for peak emissions by 2030 and carbon neutrality by 2060, resulting in zero direct air emissions during the reporting period[164] - The group plans to enhance its product development capabilities by hiring and training more design and technical professionals, aiming to meet diverse customer needs[162] - The group is committed to balancing product quality, profitability, environmental protection, labor management, and community investment to maximize stakeholder satisfaction[158] - The group has implemented key performance indicators (KPIs) for measuring and comparing environmental and social impacts, ensuring transparency in reporting[142] - The group has engaged stakeholders through various channels to identify significant issues that may pose risks to business continuity, including shareholder meetings and surveys[145] - The group aims to strengthen its market position and long-term market share by exploring new business opportunities and expanding its sales network[159] - The group adheres to environmental protection laws and regulations, with no significant violations reported during the reporting period[163] - Total greenhouse gas emissions amounted to 886.03 tons of CO2 equivalent, with 98.67% from purchased electricity[169] - The total energy consumption for the reporting period was 1,087,160 kWh, with a 3% reduction in energy density to 350,697 kWh per million products sold[182] - The total water usage was 11,444 cubic meters, with a water density of 0.95 cubic meters per square meter[183] - The company produced approximately 1,251 kg of non-hazardous waste, primarily from used office paper[175] - The company plans to implement an environmental management system to identify significant environmental impacts and improve overall environmental performance[189] - The company consumed about 20 tons of packaging materials during the reporting period, with a density of 6.45 tons per million products sold[186] - The company has adopted a new carbon emission factor of 0.8042 for calculating emissions from purchased electricity in Guangdong, China[170] - The company recycled 0.006 tons of waste paper during the reporting period[177]

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]