Financial Performance - The group's revenue for the six months ended September 30, 2023, was approximately HKD 13.5 million, a decrease of about 6.9% compared to HKD 14.5 million for the same period in 2022[4]. - Gross profit for the reporting period was approximately HKD 10.3 million, down about 7.2% from HKD 11.1 million in the previous year, with a gross margin of approximately 76.4%[8]. - The net loss for the reporting period was approximately HKD 6.3 million, an increase from a net loss of HKD 3.7 million in the same period last year[8]. - Revenue for the six months ended September 30, 2023, was HKD 13,489 thousand, a decrease of 6.7% compared to HKD 14,451 thousand for the same period in 2022[64]. - Gross profit for the six months ended September 30, 2023, was HKD 10,301 thousand, down 7.6% from HKD 11,145 thousand in the previous year[64]. - The company reported a loss before tax of HKD 6,301 thousand for the six months ended September 30, 2023, compared to a loss of HKD 3,661 thousand for the same period in 2022, representing a 72.5% increase in losses[64]. - Basic and diluted loss per share for the six months ended September 30, 2023, was HKD 1.74, compared to HKD 1.01 for the same period in 2022, indicating a 72.3% increase in loss per share[64]. - For the six months ended September 30, 2023, the company reported a loss attributable to equity holders of HKD 6,301,000, compared to a loss of HKD 3,661,000 for the same period in 2022, representing an increase in loss of 72%[148]. Assets and Liabilities - The group's current liabilities net value increased by approximately HKD 2.3 million or 35.4% to about HKD 8.8 million as of the reporting period end[14]. - Total assets as of September 30, 2023, were HKD 98,798 thousand, a slight decrease from HKD 100,309 thousand as of March 31, 2023[66]. - Current liabilities increased to HKD 20,464 thousand as of September 30, 2023, compared to HKD 18,328 thousand as of March 31, 2023, reflecting a 11.6% rise[66]. - The total equity as of September 30, 2023, was HKD 14,482 thousand, a decrease from HKD 20,745 thousand as of March 31, 2023, indicating a decline of 30.5%[66]. - The company’s bank borrowings secured by leasehold land and buildings amounted to HKD 8,000,000 as of September 30, 2023, up from HKD 5,000,000 as of March 31, 2023[133]. - The company has a total lease liability present value of HKD 4,610,000 as of September 30, 2023, down from HKD 5,907,000 as of March 31, 2023[161]. - The company’s total liabilities related to leases due within one year were HKD 145,000 as of September 30, 2023, down from HKD 436,000 as of March 31, 2023, a decrease of 66.73%[178]. Cash Flow and Financing - Cash and cash equivalents decreased by approximately HKD 1.2 million or 52.2% to about HKD 1.1 million as of the reporting period end[14]. - The company’s net cash used in operating activities for the six months ended September 30, 2023, was HKD 1,375 thousand, down from HKD 3,089 thousand in the same period of 2022[73]. - The company raised HKD 8,000 thousand through new bank borrowings during the six months ended September 30, 2023, compared to HKD 5,000 thousand in the previous year[73]. - The group had available undrawn bank financing of HKD 4,931,000, down from HKD 13,244,000 in 2022[83]. - The group generated a net cash inflow from operating activities of approximately HKD 1,400,000 during the interim period[101]. Corporate Governance - The group maintained high standards of corporate governance and complied with the relevant provisions of the corporate governance code during the reporting period[34]. - The group has adopted a code of conduct for securities trading by directors, confirming compliance during the reporting period[35]. - The company is currently non-compliant with GEM Listing Rules regarding the number of independent non-executive directors, having only two instead of the required three[58]. - The audit committee has reviewed the unaudited condensed consolidated results for the reporting period and found them compliant with applicable accounting standards[60]. - The company plans to fill the vacancy left by the resignation of an independent non-executive director within three months[59]. Share Capital and Options - Directors and senior management hold a total of 270,000,000 shares, representing approximately 74.66% of the company[37]. - Profit Ocean Enterprises Limited holds 270,000,000 shares, constituting 74.66% of the issued share capital[42]. - The issued share capital of Profit Ocean is equally owned by Tri-Luck, Wealth City, Tianjing, and Coastal Lion, each holding 25%[44]. - As of September 30, 2023, the number of stock options available for grant under the stock option plan was 3,700,000[48]. - The total number of stock options granted during the reporting period was 28,350,000, with 200,000 exercised[53]. - The exercise price for stock options granted was HKD 0.189, with a total of 10,200,000 options remaining unexercised as of April 1, 2023[53]. Operational Highlights - The group plans to actively explore sales promotion methods and seek potential projects to raise awareness of tea drinking health benefits[12]. - The company’s non-current assets are all located in Hong Kong, and all revenue is generated from this region[112]. - Tea product sales for the six months ended September 30, 2023, were HKD 13,489,000, a decrease of 6.7% compared to HKD 14,451,000 for the same period in 2022[109]. - The company did not receive any government subsidies for the six months ended September 30, 2023, compared to HKD 1,287,000 received in the same period of 2022[114]. - The company has no customers contributing more than 10% of its revenue as of September 30, 2023[113]. Expenses and Costs - Employee costs for the reporting period totaled approximately HKD 5.6 million, consistent with the previous year[19]. - The company reported a total interest expense of HKD 2,174,000 for the six months ended September 30, 2023, compared to HKD 1,620,000 for the same period in 2022, reflecting a 34% increase[1]. - The company incurred total rental expenses of HKD 681,000 for the six months ended September 30, 2023, a decrease of 20% from HKD 852,000 in the same period of 2022[148]. - Total depreciation expenses for the six months ended September 30, 2023, amounted to HKD 5,274,000, slightly down from HKD 5,277,000 in the same period of 2022[148]. - Total remuneration for key management personnel was HKD 1,734,000 for the six months ended September 30, 2023, slightly down from HKD 1,779,000 in the same period of 2022, a decrease of 2.53%[171].

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公佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何 部分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。 YING KEE TEA HOUSE GROUP LIMITED 英 記 茶 莊 集 團 有 限 公司 （於香港註冊成立的有限公司） （股份代號：8241） 截至2023年9月30日止六個月中期業績公佈 香港聯合交易所有限公司（「聯交所」）GEM（「GEM」）之特色 GEM的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的中小型公 司提供一個上市的市場。有意投資者應了 解投資該等公司的潛在風險，並應經過審慎周詳考慮後方可作出投資決定。 由於GEM上市公司普遍為中小型公司，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高的市場波動風險，且無法保證在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聯交所對本公佈的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部分內容而產生 或因倚賴該等內容而引致的任何損失承擔任何責任。 英記茶莊集團有 ...

Financial Performance - The group's revenue for the three months ended June 30, 2023, was approximately HKD 7.04 million, a decrease of about 2.1% compared to HKD 7.19 million for the same period in 2022[6] - Gross profit for the same period was approximately HKD 5.43 million, down about 2.3% from HKD 5.56 million in the previous year, with a gross margin of approximately 77.1%[8] - The net loss for the reporting period was approximately HKD 2.93 million, compared to a net loss of HKD 1.66 million for the same period in 2022, primarily due to increased advertising expenses and higher bank borrowing rates[8] - The group reported unaudited revenue of HKD 7,040,000 for the three months ended June 30, 2023, a decrease of 2.1% compared to HKD 7,192,000 in the same period of 2022[68] - The group incurred a loss before tax of HKD 2,925,000 for the three months ended June 30, 2023, compared to a loss of HKD 1,658,000 in the prior year, indicating a significant increase in losses[68] - Basic and diluted loss per share for the period was HKD 0.81, compared to HKD 0.46 in the same period last year, representing a 76.1% increase in loss per share[68] - The company reported a loss attributable to equity holders of HKD (2,925,000) for the three months ended June 30, 2023, compared to a loss of HKD (1,658,000) for the same period in 2022, representing an increase in loss of 76.5%[93] - The company incurred total comprehensive expenses of HKD (2,925,000) for the three months ended June 30, 2023[71] Cash Flow and Liabilities - The group's current liabilities net value decreased by approximately 84.9% to about HKD 6.8 million, down from HKD 45.0 million as of June 30, 2022[16] - Cash and bank balances at the end of the reporting period were approximately HKD 1.1 million, a decrease of about 21.4% from HKD 1.4 million in the previous year[16] - The group maintains a balance between cash sustainability and flexibility through its operational cash flow[28] - The debt-to-equity ratio at the end of the reporting period was approximately 500.8%, a slight decrease from 515.5% as of June 30, 2022[18] - As of the reporting period end, the group had no significant liabilities or major encumbrances on its assets[31][34] Operational Highlights - The group plans to participate in the upcoming Hong Kong Trade Development Council Food Expo and conduct flash promotions and annual sales to generate additional revenue in the coming months[14] - The group maintains a cautious outlook on the retail environment, expecting a positive impact from the distribution of consumption vouchers totaling HKD 2,000 to eligible residents in July 2023[14] - Capital expenditure during the reporting period was approximately HKD 9,800, primarily for factory and equipment[19] - The group had a total employee cost of approximately HKD 3.1 million during the reporting period, compared to HKD 3.2 million for the three months ended June 30, 2022[29] - The group has 53 employees as of the reporting period end, a decrease from 56 employees as of June 30, 2022[29] Shareholder Information - The group’s major shareholders include Profit Ocean, which holds 270 million shares, representing approximately 74.66% of the issued shares[49] - There were no significant changes in shareholding or pledges by major shareholders during the reporting period[55] Compliance and Governance - The group has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM listing rules[39] - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the reporting period[40] Other Financial Metrics - Administrative expenses decreased slightly to HKD 7,014,000 from HKD 7,146,000, a reduction of 1.8% year-over-year[68] - Financing costs increased to HKD 1,078,000 from HKD 803,000, marking a rise of 34.3% compared to the previous year[68] - Other income significantly dropped to HKD 1,000 from HKD 864,000, indicating a decline of 99.9% year-over-year[68] - Sales and distribution costs increased to HKD 265,000 from HKD 130,000, reflecting a rise of 103.8% compared to the same period last year[68] - The total equity as of June 30, 2023, was HKD 17,858,000, down from HKD 20,390,000 as of April 1, 2022, indicating a decline of 11.8%[71] - The company did not declare any dividends for the three months ended June 30, 2023, consistent with the same period in 2022[95] - Other income for the three months ended June 30, 2023, was HKD 1,000, compared to HKD 864,000 in the same period of 2022, reflecting a significant decrease due to the absence of government subsidies[85] Future Outlook - Future outlook and performance guidance were not mentioned in the content[96] - No specific revenue or user data was disclosed in the provided content[96] - There are no details on new product or technology development in the provided content[96] - Market expansion and acquisition strategies were not discussed in the content[96] - Other new strategies were not highlighted in the provided content[96] - The financial report is unaudited, indicating potential changes in final figures[96] - The document does not provide specific numerical data beyond loss per share calculations[96]

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公佈的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全 部或任何部分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。 YING KEE TEA HOUSE GROUP LIMITED 英 記 茶 莊 集 團 有 限 公 司 （於香港註冊成立的有限公司） （股份代號：8241） 截 至2023年6月30日 止 三 個 月 的 第 一 季 度 業 績 公 佈 香港聯合交易所有限公司（「聯交所」）GEM（「GEM」）之特色 GEM的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的中小 型公司提供一個上市的市場。有意投資者應了解投資該等公司的潛在風險，並 應經過審慎周詳考慮後方可作出投資決定。 由於GEM上市公司普遍為中小型公司，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高的市場波動風險，且無法保證在GEM買賣的證券會 有高流通量的市場。 英記茶莊集團有限公司（「本公司」）董事（「董事」）願共同及個別對本公佈承擔全 部責任。本公佈乃遵照GEM證券上市規則（「GEM上市規則」）的規定而提供有關 本公司的資料。 ...

Financial Performance - Total revenue for the year ended March 31, 2023, was HKD 37,442,000, representing an increase of 3.84% from HKD 36,058,000 in 2022[5] - Gross profit for the same period was HKD 28,746,000, up from HKD 27,937,000, indicating a growth of 2.89%[5] - The company reported a loss before tax of HKD 6,697,000, an improvement from a loss of HKD 7,716,000 in the previous year, reflecting a reduction of 13.2%[5] - Basic and diluted loss per share decreased to HKD 1.85 from HKD 2.15, showing a 13.95% improvement[5] - The company reported a loss of HKD 6,682,000 for the year ended March 31, 2023, compared to a loss of HKD 7,783,000 in 2022, reflecting a reduction in losses[32] - The net loss attributable to the owners of the group for the year was approximately HKD 6.7 million, compared to a net loss of approximately HKD 7.8 million in the previous year[119] - The basic and diluted loss per share for the year was HKD 0.0185, compared to HKD 0.0215 in the previous year[128] - The net cash inflow from operating activities for the year ended March 31, 2023, was approximately HKD 9,330,000, an increase from HKD 7,881,000 in 2022[19] Assets and Liabilities - Non-current assets totaled HKD 98,798,000, down from HKD 106,473,000, a decrease of 7.06%[8] - Current assets increased to HKD 11,811,000 from HKD 11,015,000, marking a growth of 7.21%[8] - Total liabilities decreased to HKD 71,536,000 from HKD 79,704,000, a reduction of 10.26%[8] - The company's net assets increased to HKD 20,745,000 from HKD 20,390,000, reflecting a growth of 1.75%[10] - The company's equity attributable to owners at the end of the reporting year was approximately HKD 20.7 million, an increase of about HKD 0.3 million or 1.7% compared to HKD 20.4 million in 2022[141] Cash Flow and Financing - The company secured new bank borrowings amounting to HKD 10,000,000 in 2023, a significant increase from HKD 1,000,000 in 2022[22] - The company’s financing activities resulted in a net cash outflow of HKD 8,875,000 in 2023, slightly improved from HKD 9,758,000 in 2022[22] - The company has available undrawn bank financing of HKD 6,244,000 as of March 31, 2023, which supports its liquidity position[33] - The company has adopted a prudent policy in managing cash reserves to ensure sufficient liquidity for future growth opportunities[142] - The company monitors liquidity risk through monthly cash flow forecasts to maintain a balance between cash sustainability and flexibility[167] Operational Efficiency - The company plans to continue improving its working capital management and generating sufficient cash flow to meet its obligations over the next twelve months[37] - The management team has been streamlined to enhance operational efficiency and maintain appropriate staffing levels[119] - The group has focused on cost reduction strategies, including rent negotiations and wage control, to improve financial health[118] Environmental and Social Governance (ESG) - The board is committed to enhancing ESG performance, focusing on employee health and safety, product quality, and customer service as key issues for the reporting year[182] - The company has maintained compliance with environmental regulations, with no fines or penalties reported for violations during the reporting year[188] - The company continues to monitor the potential environmental impacts of its business activities to ensure sustainable operations[200] - The company aims to enhance resource efficiency and reduce emissions through ongoing initiatives and employee engagement[193] Employee and Training - Total number of employees increased from 52 in 2022 to 55 in 2023[87] - Total number of trained employees was 3 in 2022, representing 6% of the workforce[87] - Average training hours per employee in 2022 was 1 hour, with male employees averaging 3 hours[88] - The total employee costs for the reporting year amounted to HKD 14.2 million, up from HKD 13.3 million in 2022[143] Product and Customer Relations - The company received 2 customer service complaints related to food safety and tea product retail during the reporting year[98] - 0.03% of sold products were recalled for safety and health reasons during the reporting year[99] - The company has a zero-tolerance policy towards illegal labor and child labor, ensuring compliance with Hong Kong employment regulations[90] Inventory and Sales - The group's inventory net value at the end of the fiscal year was approximately HKD 7.0 million, consistent with the previous year, as the board decided to maintain inventory levels during uncertain times[134] - Trade and other receivables increased to approximately HKD 2.6 million, a rise of 13.1% from HKD 2.3 million at the end of the previous fiscal year[137] - Indirect sales through the online shopping platform HKTVmall significantly increased, compensating for some losses in traditional retail[119] Compliance and Risk Management - The company maintains a low credit risk by only engaging with reputable third parties and conducting strict credit checks[165] - Interest rate risk is considered low due to minimal fluctuations in market rates during the reporting year[166] - No significant disputes occurred with suppliers, customers, or other stakeholders during the reporting year[168]

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公佈之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並表明概不就因本公佈全部或 任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 YING KEE TEA HOUSE GROUP LIMITED 英 記 茶 莊 集 團 有 限 公 司 （於香港註冊成立的有限公司） （股份代號：8241） 截 至2023年3月31日 止 年 度 之 全 年 業 績 公 佈 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的中小 型公司提供一個上市的市場。有意投資者應了解投資該等公司的潛在風險，並 應經過審慎周詳考慮後方可作出投資決定。 由於GEM上市公司普遍為中小型公司，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高的市場波動風險，且無法保證在GEM買賣的證券會 有高流通量的市場。 英記茶莊集團有限公司（「本公司」）董事（「董事」）願共同及個別對本公佈承擔全 部責任。本公佈乃遵照聯交所GEM證券上市規則（「GEM上市規則」）的規定而 ...

[Management Discussion and Analysis](index=3&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business, financial performance, outlook, liquidity, and key risks for the reporting period [Business and Operations Review](index=3&type=section&id=Business%20and%20Operations%20Review) For the nine months ended December 31, 2022, the Group's revenue decreased due to weak overall retail sentiment caused by ongoing COVID-19 social distancing measures in Hong Kong, exacerbated by global economic volatility and geopolitical events - During the reporting period, the Group's revenue decreased due to weak retail sentiment caused by COVID-19 social distancing measures[39](index=39&type=chunk) - Uncertainties such as global economic and interest rate fluctuations, and geopolitical events, exacerbated the challenging retail environment faced by the Group[39](index=39&type=chunk) [Financial Review](index=3&type=section&id=Financial%20Review) For the nine months ended December 31, 2022, the Group's consolidated revenue decreased by 1.4% year-on-year to approximately HKD 28.7 million, with net loss widening to approximately HKD 2.9 million; gross profit margin slightly declined to 76.5%, while administrative expenses and finance costs increased Financial Summary for the Nine Months Ended December 31, 2022 | Indicator | For the Nine Months Ended December 31, 2022 (HKD Thousands) | For the Nine Months Ended December 31, 2021 (HKD Thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 28,722 | 29,073 | -1.2% | | Gross Profit | 21,968 | 22,774 | -3.5% | | Loss Before Tax | (2,940) | (2,695) | +9.1% | | Loss Attributable to Shareholders | (2,940) | (2,695) | +9.1% | | Loss Per Share (HK Cents) | (0.81) | (0.75) | +8.0% | - The net loss during the reporting period was primarily due to the weakening of the retail sector by the COVID-19 pandemic[35](index=35&type=chunk) - Administrative expenses increased by approximately **2.7%** year-on-year to **HKD 22.6 million**, mainly due to the payment of double pay to employees before the 2023 Chinese New Year[37](index=37&type=chunk) - Finance costs increased to **HKD 2.5 million** from **HKD 2.4 million** in the prior period, primarily due to increased interest expenses on bank loans[38](index=38&type=chunk) [Outlook and Prospects](index=4&type=section&id=Outlook%20and%20Prospects) The Group is optimistic about the steady recovery of Hong Kong's retail and tourism sectors following the lifting of social distancing and travel restrictions, and plans to expand online sales through social media and e-commerce platforms like HKTV mall - The Group is optimistic about the steady recovery of Hong Kong's retail and tourism sectors, anticipating growth in retail sales and customer traffic[41](index=41&type=chunk) - To adapt to changing consumer habits, the Group plans to strengthen online sales through social media activities and e-commerce platforms such as HKTV mall[41](index=41&type=chunk) [Liquidity and Cash Flow Management](index=5&type=section&id=Liquidity%20and%20Cash%20Flow%20Management) At the end of the reporting period, the Group's financial position faced pressure, shifting from a net current asset position to a net current liability of approximately HKD 2.7 million, with the current ratio decreasing to 0.8 times and the gearing ratio significantly rising to 540.8% due to reduced equity and increased losses, while capital expenditure significantly decreased Changes in Liquidity Indicators | Indicator | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Current Assets | Approx. HKD 13.5 Million | Approx. HKD 16.6 Million | | Current Liabilities | Approx. HKD 16.2 Million | Approx. HKD 15.0 Million | | Net Current (Liabilities)/Assets | Approx. HKD (2.7) Million | Approx. HKD 1.6 Million | | Current Ratio | Approx. 0.8x | Approx. 1.1x | | Gearing Ratio | Approx. 540.8% | Approx. 370.2% | | Cash and Bank Balances | Approx. HKD 3.6 Million | Approx. HKD 5.5 Million | - Capital expenditure during the reporting period was approximately **HKD 50,000**, primarily for plant and equipment, a significant decrease from **HKD 200,000** in the prior period[50](index=50&type=chunk)[55](index=55&type=chunk) [Key Risks and Uncertainties](index=6&type=section&id=Key%20Risks%20and%20Uncertainties) The Group faces key risks including credit, foreign exchange, interest rate, and liquidity risks, which are managed through dealing with reputable parties, minimal exposure due to Hong Kong-centric operations, monitoring bank borrowings for interest rate sensitivity, and cash flow forecasting for liquidity - Credit Risk: The Group only transacts with reputable third parties and continuously monitors receivables, resulting in immaterial bad debt risk[56](index=56&type=chunk) - Foreign Exchange Risk: As almost all of the Group's assets, liabilities, and revenues are denominated in Hong Kong Dollars, foreign exchange risk is not significant[53](index=53&type=chunk) Interest Rate Risk Sensitivity Analysis | Increase in Prime Rate and HIBOR | Increase in Interest Expense | | :--- | :--- | | 0.25% | HKD 144,000 | | 0.50% | HKD 288,000 | - Liquidity Risk: The Group monitors cash shortage risk through monthly cash flow forecasts to maintain funding sustainability and flexibility[66](index=66&type=chunk) [Other Operating Information](index=7&type=section&id=Other%20Operating%20Information) At the end of the reporting period, the Group had 55 employees in Hong Kong with total staff costs of approximately HKD 10.5 million, the Board resolved not to declare dividends, certain property assets were pledged for bank financing, and there were no significant contingent liabilities or post-reporting period events - As of the end of the reporting period, the Group had **55** employees, with total staff costs of approximately **HKD 10.5 million** during the period, and received approximately **HKD 1.3 million** from the "Employment Support Scheme"[58](index=58&type=chunk) - The Board resolved not to declare any dividends for the reporting period[59](index=59&type=chunk)[105](index=105&type=chunk)[132](index=132&type=chunk) - The Group pledged two properties located in Hong Kong as collateral for bank financing[68](index=68&type=chunk) - At the end of the reporting period, the Group had no significant contingent liabilities or material events subsequent to the reporting period affecting its results[60](index=60&type=chunk)[61](index=61&type=chunk) [Other Information](index=8&type=section&id=Other%20Information) This section covers the Group's corporate governance, compliance, shareholding structures, share option scheme, and audit committee activities [Corporate Governance and Compliance](index=8&type=section&id=Corporate%20Governance%20and%20Compliance) The Group maintained high corporate governance standards and complied with the GEM Listing Rules' Corporate Governance Code during the reporting period, with all directors confirming adherence to the code of conduct for securities transactions, and no listed securities were purchased, sold, or redeemed by the company - During the reporting period, the Company complied with the relevant provisions of the Corporate Governance Code[69](index=69&type=chunk) - All Directors confirmed compliance with the code of conduct regarding Directors' securities transactions[4](index=4&type=chunk) - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[5](index=5&type=chunk) [Directors', Chief Executive's and Major Shareholders' Interests](index=9&type=section&id=Directors%27%2C%20Chief%20Executive%27s%20and%20Major%20Shareholders%27%20Interests) This section discloses the shareholding interests of directors, the chief executive, and major shareholders, including controlling shareholder Profit Ocean's 74.70% stake jointly controlled by the Chan family members through acting-in-concert arrangements, and individual directors' interests via share option schemes Directors' and Chief Executive's Interests in the Company's Shares | Director's Name | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Chan Kwong Yuen | Interest in Controlled Corporation / Beneficial Owner | 270,000,000 / 3,200,000 | 74.70% / 0.89% | | Mr. Chan Kun Yuen | Interest in Controlled Corporation / Beneficial Owner | 270,000,000 / 3,200,000 | 74.70% / 0.89% | | Mr. Chan Shu Yuen | Interest in Controlled Corporation / Beneficial Owner | 270,000,000 / 3,200,000 | 74.70% / 0.89% | | Mr. Siu Tsz Ming | Beneficial Owner | 200,000 | 0.06% | | Mr. Li Wai Ho | Beneficial Owner | 200,000 | 0.06% | | Mr. Wong Tsz Chung | Beneficial Owner | 200,000 | 0.06% | - Major shareholder Profit Ocean Enterprises Limited holds **270,000,000** shares (**74.70%**), jointly controlled by Mr. Chan Tat Yuen, Mr. Chan Kun Yuen, Mr. Chan Shu Yuen, and Mr. Chan Kwong Yuen through acting-in-concert arrangements[72](index=72&type=chunk)[86](index=86&type=chunk) [Share Option Scheme](index=13&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme on March 14, 2018, to incentivize contributors; during the reporting period, no new options were granted, exercised, or cancelled, with only 100,000 options lapsing due to employee resignations, leaving 28,350,000 outstanding options at period-end Summary of Share Option Movements (As of December 31, 2022) | Item | Number of Shares | | :--- | :--- | | Outstanding at Beginning of Period | 28,450,000 | | Granted During Period | - | | Exercised During Period | - | | Cancelled During Period | - | | Lapsed During Period | 100,000 | | Outstanding at End of Period | 28,350,000 | - All outstanding share options have an exercise price of **HKD 0.189** and an exercise period until May 31, 2023[107](index=107&type=chunk) [Audit Committee](index=14&type=section&id=Audit%20Committee) The Company's Audit Committee, comprising three independent non-executive directors chaired by Mr. Siu Tsz Ming, reviewed the unaudited condensed consolidated results for the quarter and deemed them compliant with accounting standards and disclosure requirements - The Audit Committee comprises all independent non-executive directors, Mr. Li Wai Ho, Mr. Siu Tsz Ming, and Mr. Wong Tsz Chung, with Mr. Siu Tsz Ming serving as Chairman[110](index=110&type=chunk) - The Audit Committee reviewed the unaudited results for the quarter, confirming compliance with applicable accounting standards and GEM Listing Rules, and adequate disclosure[90](index=90&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=15&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including the statement of profit or loss, statement of changes in equity, and key notes [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=15&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The financial statements show that for the nine months ended December 31, 2022, the Company's revenue was HKD 28.722 million, a slight year-on-year decrease, with net loss widening to HKD 2.94 million from HKD 2.695 million in the prior year, while the third quarter alone recorded a profit of HKD 0.721 million, lower than HKD 2.093 million in the previous year Condensed Consolidated Statement of Profit or Loss (HKD Thousands) | Item | For the Three Months Ended December 31 (2022) | For the Three Months Ended December 31 (2021) | For the Nine Months Ended December 31 (2022) | For the Nine Months Ended December 31 (2021) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 14,271 | 14,677 | 28,722 | 29,073 | | Gross Profit | 10,823 | 11,365 | 21,968 | 22,774 | | Profit/(Loss) Before Income Tax | 721 | 2,093 | (2,940) | (2,695) | | Profit/(Loss) for the Period | 721 | 2,093 | (2,940) | (2,695) | | Basic and Diluted Profit/(Loss) Per Share (HK Cents) | 0.20 | 0.58 | (0.81) | (0.75) | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=16&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of December 31, 2022, the Group's total equity was HKD 17.45 million, a decrease from HKD 20.39 million on April 1, 2022, primarily due to the HKD 2.94 million loss recorded during the period Summary of Changes in Equity (HKD Thousands) | Item | Total Equity | | :--- | :--- | | As at April 1, 2022 (Audited) | 20,390 | | Loss and Total Comprehensive Expense for the Period | (2,940) | | Lapsed Share Options | - | | As at December 31, 2022 (Unaudited) | 17,450 | [Summary of Notes to Unaudited Condensed Consolidated Financial Statements](index=17&type=section&id=Summary%20of%20Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes to the financial statements provide details on key accounting items, indicating that all revenue during the reporting period was from tea product sales, other income primarily from HKD 1.287 million in government grants, no Hong Kong profits tax provision due to tax losses, and a basic loss per share of HKD 0.81 cents - The Group is primarily engaged in the retail trading of tea products, with all revenue during the reporting period derived from tea product sales[115](index=115&type=chunk)[101](index=101&type=chunk) - During the reporting period, the Group received **HKD 1.287 million** in subsidies from the Hong Kong Government's "Anti-epidemic Fund", recognized as other income[102](index=102&type=chunk)[126](index=126&type=chunk) - No provision for Hong Kong profits tax was made as the Group incurred a tax loss during the reporting period[25](index=25&type=chunk)[128](index=128&type=chunk) - Basic loss per share for the reporting period was calculated based on the loss attributable to equity holders of the Company of **HKD 2.94 million** and the weighted average of **361,450,000** ordinary shares[28](index=28&type=chunk)[129](index=129&type=chunk)

Financial Performance - The group's revenue for the six months ended September 30, 2022, was approximately HKD 14.5 million, representing a slight increase of about 0.4% compared to HKD 14.4 million for the same period in 2021[4]. - Gross profit for the reporting period was approximately HKD 11.1 million, a decrease of about 2.3% from HKD 11.4 million in the previous year, resulting in a gross margin of approximately 77.1%[8]. - The net loss for the reporting period was approximately HKD 3.7 million, an improvement from a net loss of HKD 4.8 million in the same period last year, primarily due to government subsidies received[8]. - The group reported revenue of HKD 7,259,000 for the three months ended September 30, 2022, an increase from HKD 6,856,000 in the same period of 2021, representing a growth of approximately 5.9%[54]. - The group incurred a loss before tax of HKD 3,661,000 for the six months ended September 30, 2022, an improvement from a loss of HKD 4,788,000 in the same period of 2021, reflecting a reduction of approximately 23.5%[54]. - The company reported a loss attributable to equity holders of HKD 3,661,000 for the six months ended September 30, 2022, compared to a loss of HKD 4,788,000 for the same period in 2021, representing a 23.5% improvement[96]. Assets and Liabilities - The group's current liabilities net value at the end of the reporting period was approximately HKD 6.0 million, a decrease of about 6.6% from HKD 6.4 million as of March 31, 2022[14]. - The total assets as of September 30, 2022, were HKD 113,227,000, compared to HKD 117,167,000 as of March 31, 2022, showing a decrease of about 3.4%[56]. - The total equity of the group decreased to HKD 16,729,000 as of September 30, 2022, from HKD 20,390,000 as of March 31, 2022, representing a decline of about 17.8%[56]. - Trade payables increased to HKD 971,000 as of September 30, 2022, compared to HKD 357,000 as of March 31, 2022, indicating a significant rise in liabilities[106]. - Total bank borrowings as of September 30, 2022, were HKD 49,020,000, slightly up from HKD 48,342,000 as of March 31, 2022[108]. Cash Flow and Financing - Operating cash flow for the six months ended September 30, 2022, was HKD 3,089,000, an increase of approximately 50.6% from HKD 2,051,000 in the prior year[62]. - The company had a net cash outflow of HKD 169,000 for the period, significantly improved from HKD 1,793,000 in the previous year[62]. - As of September 30, 2022, the company had available undrawn bank financing of HKD 13,244,000, which supports its liquidity position[69]. - The company expects to continue improving its working capital management and generating sufficient cash flow to meet its obligations over the next twelve months[69]. Corporate Governance and Compliance - The group maintained high standards of corporate governance and complied with relevant codes during the reporting period[30]. - All directors confirmed compliance with the established code of conduct for securities trading during the reporting period[31]. - The board of directors resolved not to declare any dividends for the reporting period, similar to the previous six months[24]. Shareholder Information - The group’s major shareholders include Mr. Chan Kwong Yuen, Mr. Chan Kun Yuen, and Mr. Chan Shu Yuen, each holding 270 million shares, representing 74.70% of the total shares[34]. - Profit Ocean holds 270,000,000 shares, representing 74.70% of the total issued shares[42]. - Tri-Luck, Wealth City, Coastal Lion, and Mr. Chan each own 25% of the total issued share capital of Profit Ocean[44]. - The company has a structured share option plan approved on March 14, 2018[48]. Government Support and Subsidies - Other income for the six months ended September 30, 2022, totaled HKD 1,507,000, significantly higher than HKD 74,000 for the same period in 2021, primarily due to government subsidies received[85]. - The company received government subsidies of HKD 1,287,000 during the six months ended September 30, 2022, with no conditions or contingencies attached[85]. Operational Insights - The group anticipates steady recovery in Hong Kong's retail and tourism sectors, supported by the simplified quarantine measures and upcoming major international events[13]. - The group plans to leverage the upcoming promotional activities and consumer voucher distributions to drive sales and foot traffic in the second half of the fiscal year[13]. Employee and Management Costs - The group had a total employee cost of approximately HKD 5.6 million during the reporting period, consistent with the previous six months[23]. - The total remuneration for key management personnel was HKD 1,779,000, slightly down from HKD 1,782,000 for the same period last year, indicating a marginal decrease of 0.2%[131].

Financial Performance - The company's revenue for the three months ended June 30, 2022, was approximately HKD 7.2 million, a decrease of about 4.0% compared to HKD 7.5 million for the same period in 2021[4] - Gross profit for the same period was approximately HKD 5.6 million, down about 8.2% from HKD 6.1 million in the previous year, resulting in a gross margin of approximately 77.3%[8] - The net loss for the reporting period was approximately HKD 1.7 million, compared to a net loss of HKD 1.8 million for the same period in 2021[8] - The group’s revenue for the three months ended June 30, 2022, was HKD 7,192,000, a decrease of 4.6% compared to HKD 7,540,000 for the same period in 2021[62] - Gross profit for the same period was HKD 5,557,000, down from HKD 6,066,000, reflecting a decline of 8.4%[62] - The group reported a loss before tax of HKD 1,658,000, compared to a loss of HKD 1,809,000 in the previous year, indicating a 8.3% improvement[62] - The basic and diluted loss per share for the period was HKD 0.46, compared to HKD 0.50 for the same period last year[62] - For the three months ended June 30, 2022, the company reported a loss attributable to equity holders of HKD 1,658,000, compared to a loss of HKD 1,809,000 for the same period in 2021, indicating a decrease in losses of approximately 8.3%[84] Cash Flow and Liabilities - Cash and bank balances decreased by approximately HKD 2.5 million or 64.1%, totaling about HKD 1.4 million at the end of the reporting period[15] - The company's current liabilities net value increased to approximately HKD 45.0 million, a rise of about 13.9% from HKD 39.5 million as of June 30, 2021[15] - The debt-to-equity ratio at the end of the reporting period was approximately 515.5%, up from 370.8% as of June 30, 2021[17] - The total equity as of June 30, 2022, decreased to HKD 18,732,000 from HKD 20,390,000, a decline of 8.1%[64] - The company’s accumulated losses increased to HKD 32,404,000 from HKD 30,746,000, reflecting a rise of 5.4%[64] Corporate Governance and Compliance - The group maintained high standards of corporate governance and complied with the corporate governance code effective from January 1, 2022[34] - The group has adopted a code of conduct for securities trading, ensuring compliance with GEM listing rules[35] - No shares of the company were purchased, sold, or redeemed by the company or its subsidiaries during the reporting period[36] - The company has not violated any significant loan agreements related to its business[49] - The company has no financial assistance or guarantees provided to its associated companies[49] Shareholder Information - The major shareholders, including Mr. Chan Kwong Yuen, hold 270 million shares, representing 74.70% of the total shares[39] - Profit Ocean holds 270,000,000 shares, representing 74.70% of the total issued shares[44] - The total number of shares held by the major shareholders is consistent at 270,000,000 shares[44] - Tri-Luck, Wealth City, Tianjing, and Coastal Lion each own 25% of the total issued share capital of Profit Ocean[47] Stock Options and Employee Costs - The company has granted stock options amounting to 3,200,000 shares under its stock option plan[48] - The exercise price for stock options granted is HKD 0.189, with a total of 28,450,000 options remaining unexercised as of the reporting period[52] - The group had a total employee cost of approximately HKD 3.2 million during the reporting period, consistent with the previous period[26] - The stock option plan aims to incentivize selected participants, including full-time employees and consultants[51] Future Outlook and Events - The company anticipates that the overall retail environment will remain unstable due to ongoing quarantine measures and economic uncertainties[12] - Management is adopting a cautious approach to cash flow management to maintain a healthy operating environment during this challenging period[14] - The company plans to participate in upcoming promotional events to stimulate purchasing sentiment and generate additional revenue in the coming months[14] - There were no significant events after the reporting period that would impact the group's performance[31] Other Financial Information - The company received government subsidies amounting to HKD 864,000 during the six months ended June 30, 2022, with no conditions or contingencies attached[5] - The company reported no tax provision for Hong Kong profits tax for the three months ended June 30, 2022, due to tax losses incurred during the period[81] - The company incurred total expenses including auditor's remuneration of HKD 100,000, cost of inventories recognized as an expense of HKD 1,203,000, and depreciation of property, plant, and equipment of HKD 1,100,000 for the three months ended June 30, 2021[78] - The company has not guaranteed the continuation of receiving government subsidies in the future[5] - The company recorded miscellaneous income of HKD 71,000 for the three months ended June 30, 2021, while no miscellaneous income was reported for the same period in 2022[5] - The company did not incur any lease expenses for operating leases during the three months ended June 30, 2021, as indicated in the financial notes[78]

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching HKD 150 million for the fiscal year[8] - The group's revenue for the year ended March 31, 2022, was HKD 36.1 million, unchanged from the previous year[18] - The net loss attributable to the owners of the group was approximately HKD 7.8 million, compared to a net loss of HKD 9.1 million in the previous year[18] - The gross profit for the year was approximately HKD 27.9 million, reflecting a year-on-year increase of 0.4%, with a gross margin of 77.3%[18] - The company provided a positive outlook, projecting a revenue growth of 10-12% for the next fiscal year[8] Customer and Market Growth - User data showed a growth in active customers by 20%, totaling 50,000 users by the end of the reporting period[8] - Market expansion plans include entering two new regions in Asia, aiming for a 25% increase in market share[8] - New product launches are expected to contribute an additional HKD 30 million in revenue, with a focus on premium tea products[8] Investment and Development - The company is investing HKD 5 million in technology development to enhance online sales platforms[8] - The company generated approximately HKD 2.9 million to improve existing information systems in accounting, procurement, and inventory management[18] - The company has utilized approximately HKD 24.7 million of the net proceeds from the issuance of new shares on GEM as of March 31, 2022[18] Cost Management - The group continues to seek ways to reduce costs and expenses, including negotiating lower rents and controlling wages[18] - Administrative expenses increased by approximately 11.1% to about HKD 3.2 million compared to the year ended March 31, 2021[1] - The total employee costs amounted to HKD 13.3 million, a decrease from HKD 14.6 million in 2021[41] Sustainability Initiatives - The company has committed to sustainability initiatives, with a goal to reduce carbon emissions by 20% by 2025[8] - The group reported a decrease in electricity consumption from 195,268 kWh in 2021 to 152,236 kWh in 2022, representing a reduction of approximately 22%[102] - Carbon dioxide (CO2) emissions decreased from 107,954.3 kg in 2021 to 91,897 kg in 2022, a reduction of about 15%[102] - The group is committed to reducing resource consumption and greenhouse gas emissions as part of its long-term sustainability goals[89] Employee Management - The total number of employees as of March 31, 2022, was 52, with a turnover rate of 29% for the overall workforce[126] - The group has maintained a competitive compensation package for employees, including overtime pay and bonuses, to foster good employee relations[122] - The company has maintained a safe working environment with no work-related fatalities in the past three years[134] Corporate Governance - The board consists of six members, including three executive directors and three independent non-executive directors, with no changes in composition during the reporting year[160] - The company has adopted a board diversity policy to enhance gender diversity, aiming to appoint at least one female director by December 31, 2024[166] - The company emphasizes the importance of corporate governance and compliance with relevant codes and regulations[177] Risk Management - The company faces low credit risk as it only engages with recognized and reputable third parties[81] - The company monitors liquidity risk based on monthly cash flow forecasts to maintain a balance between cash sustainability and flexibility[83] Compliance and Ethics - The company has a zero-tolerance policy towards illegal labor and child labor[142] - The group has implemented strict anti-corruption policies in compliance with Hong Kong's anti-bribery laws and has conducted regular fraud risk assessments[150] - No corruption lawsuits or whistleblower reports were received during the reporting year[154]