Financial Performance - Revenue for the three months ended June 30, 2020, was HKD 44,853,000, an increase of 16.2% compared to HKD 38,491,000 for the same period in 2019[4] - Gross profit for the same period was HKD 10,045,000, representing a gross margin of 22.4%, up from HKD 4,611,000 in 2019[4] - Operating loss decreased to HKD 3,031,000 from HKD 6,555,000 year-on-year, indicating improved operational efficiency[4] - Loss attributable to equity shareholders for the period was HKD 5,589,000, a reduction of 42.5% compared to HKD 9,687,000 in the previous year[4] - Basic and diluted loss per share improved to HKD 2.56 from HKD 4.42 in the same quarter of 2019[4] - Total comprehensive loss for the period was HKD 5,471,000, significantly lower than HKD 11,636,000 in the prior year[4] - The company reported a net other comprehensive income of HKD 118,000, compared to a loss of HKD 1,949,000 in the previous year[4] - The company reported a loss of HKD 5,589,000 for the three months ended June 30, 2020, compared to a loss of HKD 9,687,000 for the same period in 2019[36] - Basic and diluted loss per share was HKD 2.56, an improvement from HKD 4.42 in the prior year[36] Revenue and Sales Growth - Revenue for the three months ended June 30, 2020, was HKD 44,853,000, an increase of 16.5% compared to HKD 38,491,000 for the same period in 2019[29] - Sales of structural panels increased significantly to HKD 17,206,000 from HKD 2,076,000 year-over-year, representing a growth of 728%[29] - Revenue from the People's Republic of China rose to HKD 17,960,000, up 122.8% from HKD 8,085,000 in the previous year[30] - Sales volume of plywood products increased by approximately 25.5%, from about 9,454 cubic meters for the three months ended June 30, 2019, to about 11,863 cubic meters for the same period in 2020[40] - The average gross profit margin increased by approximately 10.4% to about 22.4% for the three months ended June 30, 2020, compared to about 12.0% for the same period in 2019[41] Expenses and Liabilities - Administrative expenses increased to HKD 11,821,000 from HKD 9,194,000, reflecting higher operational costs[4] - The net current liabilities of the group were approximately HKD 83,861,000 as of June 30, 2020[26] - The group’s total bank and other borrowings amounted to approximately HKD 80.1 million as of June 30, 2020, down from approximately HKD 133.6 million as of March 31, 2020[45] - The group’s debt-to-asset ratio was approximately 88.4% as of June 30, 2020, compared to approximately 86.6% as of March 31, 2020[46] Corporate Governance and Compliance - The financial statements were prepared in accordance with all applicable Hong Kong Financial Reporting Standards[25] - The company expects that the application of new and revised Hong Kong Financial Reporting Standards will not have a significant impact on its consolidated financial statements in the future[24] - The company has complied with all applicable corporate governance code provisions during the reporting period, except for the matters disclosed[60] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the three months ending June 30, 2020[72] - The company has adopted a strict code of conduct for securities trading in compliance with GEM Listing Rules[59] Shareholder Information - As of June 30, 2020, the company had a total of 218,733,333 issued shares, with Ms. Sun Xuesong holding 123,041,695 shares (56.25%) and Mr. Xue Zhaoqiang holding 27,978,425 shares (12.79%)[54] - No individuals, other than directors or key executives, held any recorded interests in the company's shares or related securities as of June 30, 2020[56] - The company has not identified any competitive interests or conflicts of interest involving its directors or major shareholders during the reporting period[57] Future Plans and Market Expansion - The company continues to focus on the procurement, production, and sales of plywood and other wooden products, with no new product launches or market expansions reported in this quarter[7] - The group aims to expand its business into the North China market through the acquisition of Hebei Youlin Technology Co., Ltd., enhancing its trade operations[50] - Several trade subsidiaries have obtained FSC certification, allowing the group to participate in the trade chain of FSC-certified products, which is crucial for entering environmentally conscious markets[38] - The group plans to enhance productivity through improved service quality monitoring and internal process automation to reduce costs and improve efficiency[38] Accounting Standards - The adoption of new and revised Hong Kong Financial Reporting Standards did not have a significant impact on the company's accounting policies[8] - The adoption of Hong Kong Financial Reporting Standard 16 (HKFRS 16) has resulted in significant changes in lease accounting, requiring almost all leases to be recognized as right-of-use assets and lease liabilities on the balance sheet[11] - The Group has chosen not to capitalize leases related to low-value assets and short-term leases (less than 12 months) under HKFRS 16, with lease payments recognized as expenses on a straight-line basis[12] - The Group has recognized lease liabilities at the present value of lease payments not paid at the lease commencement date, using the incremental borrowing rate for discounting[17] - As of April 1, 2019, the Group has retrospectively adopted HKFRS 16, confirming lease liabilities for previously classified operating leases under HKAS 17, measured at the present value of remaining lease payments[19] - The Group has applied practical expedients, including using a single discount rate for leases with similar characteristics and exempting leases that will end within 12 months from the initial application date from recognition as right-of-use assets and lease liabilities[20] - The accounting treatment for lessors under HKFRS 16 remains largely unchanged from HKAS 17, with rental income from operating leases recognized on a straight-line basis over the lease term[21] Dividends and Stock Options - The company did not recommend any dividend for the three months ended June 30, 2020, consistent with the previous year[34] - The company has not granted any stock options under the stock option plan during the three months ending June 30, 2020, and there are no unexercised stock options as of June 30, 2020[68][69] - The stock option plan allows for a maximum of 20,000,000 shares to be granted, representing approximately 9.14% of the company's issued shares as of the report date[62] Events After Reporting Period - There were no significant events occurring after June 30, 2020, up to the report date[70] - No significant purchases, sales, or redemptions of the company's listed securities occurred during the three months ending June 30, 2020[58]

Financial Performance - For the fiscal year ending March 31, 2020, the group recorded a loss of approximately HKD 31.5 million, compared to a profit of approximately HKD 3.3 million for the previous year[11]. - Revenue decreased by approximately 8.1% to about HKD 223.5 million, down from HKD 243.2 million in the previous year[11]. - Gross profit decreased by approximately 4.9% to about HKD 42.5 million, compared to HKD 44.7 million in the previous year[11]. - The group's revenue for the year ended March 31, 2020, was approximately HKD 223.5 million, a decrease of about 8.1% from HKD 243.2 million in 2019, primarily due to a 35.3% drop in plywood product sales[23]. - Plywood sales volume decreased by approximately 29.0% from about 66,500 cubic meters for the year ended March 31, 2019, to about 47,240 cubic meters for the year ended March 31, 2020[21]. - The average gross profit margin increased by approximately 0.6% to about 19.0% for the year ended March 31, 2020, compared to 18.4% in 2019, driven by higher-margin wood products[24]. - The company reported a loss attributable to equity shareholders of HKD 31,505,000, a significant decline from a profit of HKD 3,344,000 in the previous year[183]. - Total assets decreased to HKD 387,931,000 in 2020 from HKD 428,224,000 in 2019, reflecting a decline of 9.4%[186]. - Net asset value dropped to HKD 51,971,000 in 2020, down from HKD 88,342,000 in 2019, indicating a decline of 41.2%[186]. - The company incurred financing costs of HKD 11,116,000, which increased significantly from HKD 3,467,000 in 2019[183]. - The basic and diluted loss per share was HKD 14.40, compared to earnings of HKD 1.53 per share in the previous year[183]. - The company reported a loss before tax of HKD 31,858,000 for the year 2020, compared to a profit of HKD 6,357,000 in 2019[190]. Expenses and Costs - Sales expenses decreased by approximately 26.0% to about HKD 5.4 million, down from HKD 7.3 million in the previous year[11]. - Administrative expenses increased by approximately 23.9% to about HKD 40.4 million, compared to HKD 32.6 million in the previous year[11]. - Administrative expenses increased by approximately HKD 7.8 million to about HKD 40.4 million for the year ended March 31, 2020, due to the consolidation of Hebei Youlin's administrative expenses[28]. - Depreciation expenses increased significantly to HKD 10,297,000 for property, plant, and equipment in 2020, up from HKD 2,994,000 in 2019[190]. Corporate Governance - The company has adhered to the corporate governance code as stipulated in the GEM listing rules for the year ending March 31, 2020[54]. - The board is committed to maintaining high levels of corporate governance while striving to create value for shareholders and achieve maximum returns[53]. - The company has implemented a standard code for regulating securities transactions by directors, in compliance with GEM listing rules[55]. - The company aims to enhance its internal control systems and improve corporate governance practices continuously[53]. - The board consists of six directors, including two executive directors, one non-executive director, and three independent non-executive directors[57]. - The board held four meetings during the year ending March 31, 2020, with all directors attending all meetings[60]. - The audit committee, composed of three independent non-executive directors, held four meetings and reviewed the annual performance and financial statements for the year ending March 31, 2020[72]. - The company is committed to a board diversity policy, ensuring a balance of skills, experience, and perspectives among board members[66]. - The chairman and CEO roles are separated, with the chairman focusing on overall strategy and the CEO managing daily operations[65]. - The company will continue to ensure that all board appointments are based on merit while considering diversity factors[66]. - The Nomination Committee held one meeting during the year ending March 31, 2020, with all members present[74]. - The company has adopted a nomination policy to enhance the transparency and reliability of the selection of directors[75]. - The Remuneration Committee also held one meeting during the year ending March 31, 2020, with all members present[83]. - The company has established a dividend policy that allows for the declaration of dividends based on the company's profits and reserves[87]. - The company will regularly review and reassess the effectiveness of its dividend policy[91]. - The company has arranged suitable insurance coverage for directors and senior officers against legal liabilities arising from corporate activities[86]. - The board of directors is responsible for ensuring that the consolidated financial statements are prepared in accordance with applicable statutory requirements and accounting standards[93]. - The company has implemented a robust internal control system to ensure effective operation in operational, financial, and compliance areas[96]. - The company has adopted a whistleblowing policy to encourage reporting of misconduct and enhance corporate governance standards[106]. - The company maintains effective communication with the investment community to enhance transparency and understanding of its business and developments[109]. - The board and audit committee systematically review the internal control and risk management functions, identifying areas for improvement[101]. - The company has established a formal mechanism for risk assessment and management, overseen by the compliance officer[102]. - The independent non-executive directors confirmed their independence as per the GEM Listing Rules, and all were deemed independent as of the report date[144]. Market Expansion and Strategy - The group aims to diversify its product range and expand into the Chinese market, particularly in the North China region, driven by favorable government policies[14]. - The acquisition of Hebei Youlin Technology Co., Ltd. is expected to provide a new growth point for the group by expanding its business into North China[14]. - The group is seeking business opportunities in potential markets outside of China to expand its customer base[15]. - Several trade subsidiaries have obtained Forest Stewardship Council (FSC) certification to participate in the FSC product trade chain[15]. - The group has obtained FSC certification for several trading subsidiaries to participate in the trade of FSC-certified plywood products, which is crucial for entering environmentally conscious markets[21]. - The company’s factories in China temporarily shut down for about one month due to COVID-19, resuming normal operations by the end of March 2020[192]. - The company has not identified any significant adverse effects on its financial statements due to COVID-19, aside from the temporary factory shutdown[192]. Financial Position and Assets - Cash and cash equivalents were approximately HKD 11.2 million as of March 31, 2020, down from HKD 14.0 million as of March 31, 2019[29]. - The group's total bank and other borrowings amounted to approximately HKD 133.6 million as of March 31, 2020, compared to HKD 175.6 million as of March 31, 2019[29]. - The debt-to-asset ratio increased to approximately 86.6% as of March 31, 2020, from 79.4% as of March 31, 2019, primarily due to impairments on property, plant, and equipment[30]. - The carrying amounts of property, plant, and equipment were HKD 219,222,000, with accumulated impairment losses of HKD 14,613,000[172]. - The carrying amount of right-of-use assets was HKD 60,481,000, with accumulated impairment losses of HKD 3,590,000[172]. - Impairment losses recognized during the fiscal year for property, plant, and equipment and right-of-use assets amounted to HKD 11,663,000 and HKD 3,590,000, respectively[172]. - The financial statements have been prepared in accordance with the Hong Kong Financial Reporting Standards and reflect the group's financial position as of March 31, 2020[168]. - The audit was conducted under the Hong Kong Auditing Standards, ensuring the independence of the auditors from the group[169]. - The group reported signs of impairment for operations in China and Hong Kong, which recorded minimal profits or losses during the fiscal year[172]. - The management's assessment of impairment involved significant assumptions and judgments regarding recoverable amounts[172]. Shareholder Information - As of May 21, 2020, approximately 1.27% of the company's issued share capital, totaling 2,782,000 shares, was sold by Guotai Junan Securities due to a margin call failure[55]. - As of March 31, 2020, the company had a total of 218,733,333 issued shares, with Ms. Sun Xuesong holding 123,041,695 shares (56.25%) and Mr. Xue Zhaoqiang holding 30,760,425 shares (14.06%)[146]. - The company did not engage in any purchases, sales, or redemptions of its listed securities during the fiscal year ending March 31, 2020[148]. - There were no outstanding stock options granted under the stock option plan as of March 31, 2020, and no stock options were granted during the fiscal year[160]. - The stock option plan allows for a maximum of 20,000,000 shares to be issued, representing approximately 9.14% of the issued shares as of the report date[154]. - The company confirmed compliance with the disclosure requirements under the GEM Listing Rules regarding related party transactions[142]. - There were no related party transactions that required disclosure beyond what was already reported[142]. - The company has not entered into any management contracts for the fiscal year ending March 31, 2020, except for employment contracts[145]. - The company appointed Mr. Chen Yuxiao as the company secretary on September 5, 2016, who is responsible for ensuring effective communication among board members and compliance with board policies[92].

Financial Performance - Revenue for the three months ended December 31, 2019, was HKD 80,061,000, representing a 38.5% increase from HKD 57,743,000 in the same period of 2018[4] - Gross profit for the nine months ended December 31, 2019, was HKD 31,374,000, a decrease of 4.5% compared to HKD 32,874,000 in the same period of 2018[4] - The operating profit for the three months ended December 31, 2019, was HKD 7,024,000, compared to HKD 1,805,000 in the same period of 2018, indicating a significant improvement[4] - The company reported a net loss attributable to equity shareholders of HKD 11,901,000 for the nine months ended December 31, 2019, compared to a profit of HKD 4,106,000 in the same period of 2018[4] - Basic and diluted earnings per share for the three months ended December 31, 2019, were HKD 1.81, up from HKD 0.40 in the same period of 2018[6] - The total comprehensive income for the three months ended December 31, 2019, was HKD 5,004,000, compared to HKD 982,000 in the same period of 2018[6] - The group recorded revenue of approximately HKD 178.5 million for the nine months ended December 31, 2019, a decrease of about 7.9% compared to HKD 193.8 million in the previous period[41] - The group recorded a loss of approximately HKD 11.9 million for the nine months ended December 31, 2019, compared to a profit of approximately HKD 4.1 million for the same period in 2018[44] Revenue Breakdown - Sales of structural panels increased significantly to HKD 29,639,000 for the three months ended December 31, 2019, compared to HKD 4,597,000 in the same period of 2018, representing a growth of 543.5%[30] - Revenue from sales in mainland China surged to HKD 33,380,000 for the three months ended December 31, 2019, compared to HKD 6,643,000 in the same period of 2018, marking a growth of 402.5%[31] - The company’s revenue from sales of ordinary plywood decreased to HKD 33,709,000 for the three months ended December 31, 2019, down 21.4% from HKD 42,846,000 in the same period of 2018[30] - The company’s revenue from packaging plywood also saw a decline, totaling HKD 1,189,000 for the three months ended December 31, 2019, compared to HKD 2,056,000 in the same period of 2018, a decrease of 42.2%[30] Financial Position - Total equity attributable to equity shareholders as of December 31, 2019, was HKD 73,772,000, down from HKD 90,603,000 as of December 31, 2018[8] - As of December 31, 2019, the group's net current liabilities were approximately HKD 59.5 million, with sufficient financial support from major shareholders for at least the next 12 months[13] - As of December 31, 2019, the group had cash and cash equivalents of approximately HKD 13.1 million, down from approximately HKD 14.0 million as of March 31, 2019[47] - The group's total bank and other borrowings amounted to approximately HKD 144.5 million as of December 31, 2019, compared to approximately HKD 175.6 million as of March 31, 2019[47] - The asset-liability ratio was approximately 81.3% as of December 31, 2019, compared to approximately 79.4% as of March 31, 2019[48] Cost and Expenses - The company’s income tax expense for the nine months ended December 31, 2019, was HKD 293,000, a decrease from HKD 2,943,000 in the same period of 2018[33] - Selling expenses decreased by approximately 19.6% from about HKD 5.6 million for the nine months ended December 31, 2018, to about HKD 4.5 million for the same period in 2019[43] Corporate Governance and Compliance - The financial statements have been prepared in accordance with applicable Hong Kong Financial Reporting Standards[11] - The group has complied with all applicable corporate governance codes as per GEM listing rules during the reporting period[66] - The audit committee was established on February 9, 2015, and consists of three independent non-executive directors[78] Strategic Plans and Market Expansion - The group plans to enhance productivity through various methods, including reducing employee costs and improving internal processes[39] - The group plans to expand into the North China market, driven by favorable government policies such as the Beijing-Tianjin-Hebei coordinated development plan[54] - The product portfolio primarily includes various plywood products sold to overseas customers, mainly in Japan, and aims to expand sales of plywood and other wooden products in North China[56] - The group is seeking business opportunities in other potential markets to expand its customer base and is pursuing FSC certification to participate in the FSC product trade chain[56] - The board will maintain the existing core business while exploring new opportunities to enhance and solidify the group's operations[57] - The group believes it has advantages over smaller local enterprises in expanding its market and product offerings[56] Shareholder Information - The total number of shares issued as of December 31, 2019, was 218,733,333, with major shareholders holding significant stakes, including 56.25% by Ms. Sun Xuesong[60] - The stock option plan allows for the issuance of up to 20 million shares, representing approximately 9.14% of the total shares issued as of the report date[69] - No stock options were granted under the stock option plan for the nine months ended December 31, 2019[75] - As of December 31, 2019, there were no stock options held by directors or employees under the stock option plan[76] Events After Reporting Period - No significant events occurred after December 31, 2019, up to the report date[77]

Financial Performance - Revenue for the three months ended September 30, 2019, was HKD 59,928,000, a decrease of 15.9% compared to HKD 71,292,000 in the same period of 2018[4] - Gross profit for the six months ended September 30, 2019, was HKD 13,196,000, down 42.5% from HKD 22,889,000 in the same period of 2018[4] - The company reported a net loss attributable to equity shareholders of HKD 15,857,000 for the six months ended September 30, 2019, compared to a profit of HKD 3,237,000 in the same period of 2018[4] - The company reported a total comprehensive loss of HKD 20,160,000 for the six months ended September 30, 2019, compared to a total comprehensive loss of HKD 4,761,000 in the same period of 2018[6] - The company reported a pre-tax loss of HKD 6,170,000 for the three months ended September 30, 2019, compared to a profit of HKD 8,815,000 in the same period of 2018[43] - The company incurred a loss of approximately HKD 15.9 million for the six months ended September 30, 2019, compared to a profit of approximately HKD 3.2 million for the same period in 2018[61] - The basic and diluted loss per share for the six months ended September 30, 2019, was HKD 7.24, compared to a profit of HKD 1.48 in the same period of 2018[6] - The company reported a basic loss per share of HKD 28.23 for the six months ended September 30, 2019, compared to a profit of HKD 14.80 in 2018[43] Assets and Liabilities - Total assets as of September 30, 2019, were HKD 277,595,000, a decrease from HKD 296,051,000 as of March 31, 2019[8] - Current liabilities decreased to HKD 154,785,000 as of September 30, 2019, from HKD 206,441,000 as of March 31, 2019[8] - The company’s total equity as of September 30, 2019, was HKD 68,182,000, down from HKD 88,342,000 at the beginning of the period[11] - The company’s current liabilities net amount was approximately HKD 57.6 million as of September 30, 2019, indicating potential liquidity concerns[18] - Trade receivables decreased to HKD 7,178,000 as of September 30, 2019, down from HKD 11,537,000 as of March 31, 2019[47] - The group's net current liabilities were approximately HKD 57.6 million as of September 30, 2019, compared to HKD 74.3 million as of March 31, 2019[66] - The total amount of bank and other borrowings was approximately HKD 136.3 million as of September 30, 2019, a decrease from HKD 175.6 million as of March 31, 2019[66] - The group's debt-to-asset ratio was approximately 81.8% as of September 30, 2019, compared to 79.4% as of March 31, 2019[66] Cash Flow - The company’s cash and cash equivalents were HKD 10,979,000 as of September 30, 2019, down from HKD 14,005,000 as of March 31, 2019[8] - Cash and cash equivalents decreased by HKD 2,632,000, ending at HKD 10,979,000 as of September 30, 2019, down from HKD 45,290,000 in the previous year[13] - The net cash used in operating activities was HKD 4,519,000 for the six months ended September 30, 2019, a significant decrease from HKD 24,086,000 generated in the same period of 2018[13] - Financing activities generated a net cash inflow of HKD 8,370,000 during the reporting period, compared to HKD 41,689,000 in the previous year[13] Financing Costs - The company experienced a significant increase in financing costs, which rose to HKD 5,974,000 for the six months ended September 30, 2019, compared to HKD 583,000 in the same period of 2018[4] - Financing costs increased significantly, with bank loan interest rising to HKD 2,808,000 for the three months ended September 30, 2019, compared to HKD 265,000 in 2018[39] - The company’s total financing costs for the six months ended September 30, 2019, were HKD 5,974,000, significantly higher than HKD 583,000 in the same period of 2018[39] Market Performance - Sales of ordinary plywood decreased to HKD 23,383,000 for the three months ended September 30, 2019, down 53.5% from HKD 50,214,000 in 2018[37] - Revenue from Japan for the three months ended September 30, 2019, was HKD 29,519,000, a decrease of 47.4% from HKD 56,048,000 in 2018[37] - Revenue from mainland China increased to HKD 27,528,000 for the three months ended September 30, 2019, compared to HKD 13,085,000 in the same period of 2018, representing a growth of 110.5%[37] - Sales volume of plywood products decreased by approximately 28.4% from about 31,965 cubic meters for the six months ended September 30, 2018, to about 22,886 cubic meters for the same period in 2019[55] Corporate Governance - The company has complied with all applicable corporate governance codes as per GEM Listing Rules during the reporting period[90] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial statements for the six months ending September 30, 2019[100] - The company has adopted strict trading guidelines for directors in compliance with GEM Listing Rules[89] - There were no known interests or potential conflicts of interest involving directors or major shareholders during the reporting period[87] Compliance and Standards - The financial statements have been prepared in accordance with applicable Hong Kong Financial Reporting Standards, ensuring compliance with regulatory requirements[16] - The company adopted HKFRS 9, which classifies financial assets into three categories: amortized cost, fair value through other comprehensive income, and fair value through profit or loss[22] - The expected credit loss model under HKFRS 9 replaces the incurred loss model, requiring earlier recognition of credit losses compared to the previous standard[25] - The company has chosen to apply the cumulative effect transition method for HKFRS 15, which did not affect the equity balance as of April 1, 2018[28] - Revenue recognition under HKFRS 15 occurs when control of the promised goods or services is transferred to the customer, which may happen at a point in time or over time[33] - The adoption of HKFRS 15 did not result in significant adjustments to the presentation of assets and liabilities as of April 1, 2018[34] Strategic Initiatives - The company plans to enhance productivity through various methods, including reducing employee costs and improving service quality monitoring[56] - The company is seeking business opportunities in other potential markets to expand its customer base amid intense competition in the plywood market[55] - The group plans to expand its market presence in North China, driven by favorable government policies and significant opportunities in the Xiong'an New Area[78] - The group aims to enhance its product range to include wooden building components and other wooden products to capture market opportunities in North China[78] - The group is actively seeking business opportunities in potential markets outside of China to expand its customer base and enhance growth[81] Shareholder Information - As of September 30, 2019, the company had a total of 218,733,333 shares issued, with significant ownership by key executives: Ms. Sun Xuesong held 123,041,695 shares (56.25%) and Mr. Xue Zhaoqiang held 30,760,425 shares (14.06%) [84] - The company did not purchase, sell, or redeem any of its listed securities during the six months ending September 30, 2019 [88] - There were no stock options granted under the stock option plan during the six months ending September 30, 2019, and no outstanding options were held by directors or employees as of that date [96][98] - The stock option plan allows for a maximum of 20,000,000 shares to be granted, representing approximately 9.14% of the issued shares as of the report date [92] Events and Developments - No significant events occurred after September 30, 2019, up to the report date [99] - The company has not disclosed any new product developments or market expansion strategies in the report [85]

Financial Performance - Revenue for the three months ended June 30, 2019, was HKD 38,491,000, a decrease of 40.6% compared to HKD 64,744,000 for the same period in 2018[4] - Gross profit for the same period was HKD 4,611,000, representing a gross margin of 12.0%[4] - Operating loss increased to HKD 6,555,000 from HKD 4,792,000 year-over-year, indicating a worsening operational performance[4] - The company reported a loss before tax of HKD 9,716,000, compared to a loss of HKD 5,103,000 in the previous year, reflecting a 90.5% increase in losses[4] - Loss attributable to equity shareholders for the period was HKD 9,687,000, up from HKD 5,578,000 in the prior year, marking a 73.1% increase[4] - The basic and diluted loss per share was HKD 4.42, compared to HKD 2.55 for the same period in 2018[4] - The total comprehensive loss for the period was HKD 11,636,000, compared to HKD 10,095,000 in the previous year[5] - The group's loss increased from approximately HKD 5.6 million for the three months ended June 30, 2018, to approximately HKD 9.7 million for the three months ended June 30, 2019, an increase of about HKD 4.1 million[46] - Administrative and other expenses rose by approximately HKD 3.1 million to about HKD 9.2 million for the three months ended June 30, 2019, compared to HKD 6.1 million in 2018[46] Revenue Recognition and Accounting Standards - The adoption of HKFRS 9 resulted in no significant impact on the equity balance as of April 1, 2018, with all financial liabilities' measurement categories remaining unchanged[14] - The expected credit loss model under HKFRS 9 replaced the incurred loss model, requiring earlier recognition of credit losses compared to the previous standard[17] - The company has not recognized additional expected credit losses as of April 1, 2018, due to the accounting policy change having no significant impact on the equity balance[18] - HKFRS 15 establishes a comprehensive framework for revenue recognition from customer contracts, replacing HKAS 18 and HKAS 11[20] - The initial application of HKFRS 15 did not have a significant impact on the equity balance as of April 1, 2018, but may affect future revenue recognition for customized production arrangements[24] - Revenue is recognized when control of the promised goods or services is transferred to the customer, which may occur at a point in time or over time[22] - The company has chosen to apply the cumulative effect transition method for HKFRS 15, affecting only contracts not completed before April 1, 2018[20] - Financial assets are classified under HKFRS 9 into three categories: amortized cost, fair value through other comprehensive income, and fair value through profit or loss[14] - The company has not designated or de-designated any financial assets or liabilities to be measured at fair value through profit or loss as of April 1, 2018[15] - The transition to HKFRS 9 was applied retrospectively, but the assessment of the business model for holding financial assets was based on facts and circumstances existing at the transition date[18] Operational Insights - The company is primarily engaged in the procurement, production, and sale of plywood and other wooden products[7] - The sales volume of plywood products decreased by approximately 43.9% from about 16,844 cubic meters for the three months ended June 30, 2018, to about 9,454 cubic meters for the same period in 2019[40] - The gross profit margin increased by approximately 7.2 percentage points to about 12.0% for the three months ended June 30, 2019, compared to about 4.8% for the same period in 2018[44] - Sales expenses decreased by approximately 57.9% from about HKD 1.9 million for the three months ended June 30, 2018, to about HKD 0.8 million for the same period in 2019[45] - The company continues to seek business opportunities in other potential markets to expand its customer base amid intense competition in the plywood market[40] - Several trading subsidiaries of the company have obtained Forest Stewardship Council (FSC) certification to participate in the trade chain of FSC-certified plywood products[41] - The company plans to enhance productivity through various methods, including reducing employee costs and improving service quality monitoring[41] - The company expects that cost-saving measures will help improve its performance going forward[41] Financial Position - The company's net current liabilities as of June 30, 2019, were approximately HKD 52.7 million[10] - As of June 30, 2019, the group's cash and cash equivalents were approximately HKD 10.0 million, down from approximately HKD 14.0 million as of March 31, 2019[48] - The group's net current liabilities were approximately HKD 52.7 million as of June 30, 2019, compared to approximately HKD 74.3 million as of March 31, 2019[48] - The group's total bank and other borrowings amounted to approximately HKD 148.1 million as of June 30, 2019, down from approximately HKD 175.6 million as of March 31, 2019[48] - The asset-liability ratio was approximately 80.8% as of June 30, 2019, compared to 79.4% as of March 31, 2019[49] Corporate Governance and Compliance - The company has adopted a strict code of conduct for securities trading by directors, in compliance with GEM Listing Rules[66] - The company has complied with all applicable provisions of the corporate governance code as per GEM Listing Rules during the reporting period[67] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial statements for the three months ending June 30, 2019[79] - No significant events occurred after June 30, 2019, up to the report date[78] - The company has not identified any competitive interests or conflicts of interest among its directors or major shareholders during the reporting period[64] Shareholder Information - As of June 30, 2019, the company had a total of 218,733,333 shares issued, with significant ownership by Ms. Sun Xuesong holding 56.25% (123,041,695 shares) and Mr. Xue Zhaoqiang holding 14.06% (30,760,425 shares) of the shares[61] - No purchases, sales, or redemptions of the company's listed securities occurred during the three months ending June 30, 2019[65] - The share option plan approved on February 9, 2015, allows for a maximum of 20,000,000 shares to be granted, representing approximately 9.14% of the issued shares as of the report date[70] - No share options were granted under the share option plan during the three months ending June 30, 2019[76] - There were no unexercised share options held by directors or employees as of June 30, 2019[77] Future Plans - The new production facility in Dongmushan Industrial Park has a total area of approximately 31,390 square meters and an expected annual production capacity of about 99,456 cubic meters of plywood products[54] - The group plans to expand its market presence in North China, driven by favorable government policies and significant opportunities in the Xiong'an New Area[55] - A wholly-owned subsidiary, Hebei Jiapin Trading Co., Ltd., has entered into an agreement to purchase commercial property for RMB 34.5 million to serve as an office and product showroom in Shijiazhuang[57]

Financial Performance - For the fiscal year ended March 31, 2019, the group recorded a profit of approximately HKD 3.3 million, compared to a loss of approximately HKD 3.8 million for the fiscal year ended March 31, 2018[11]. - Revenue increased by approximately 41.4% to about HKD 243.2 million for the fiscal year ended March 31, 2019, up from HKD 172.0 million in the previous year[11]. - Gross profit rose by approximately 87.8% to about HKD 44.7 million, compared to HKD 23.8 million in the previous year[11]. - The company recorded revenue of approximately HKD 243.2 million for the year ended March 31, 2019, representing an increase of about 41.4% compared to HKD 172.0 million in 2018[24]. - The sales volume of plywood products increased by approximately 26.4% from about 52,600 cubic meters for the year ended March 31, 2018, to about 66,500 cubic meters for the year ended March 31, 2019[21]. - The gross profit margin increased by approximately 4.6 percentage points to about 18.4% for the year ended March 31, 2019, compared to about 13.8% in 2018[25]. - The company achieved a profit of approximately HKD 3.3 million for the year ended March 31, 2019, compared to a loss of approximately HKD 3.8 million in 2018[27]. - Revenue for the year ended March 31, 2019, was HKD 243,232,000, representing a 41.5% increase from HKD 171,997,000 in 2018[191]. - Gross profit for the same period was HKD 44,654,000, up from HKD 23,779,000, indicating an increase of 87.7%[191]. - Operating profit turned positive at HKD 9,824,000 compared to an operating loss of HKD 3,300,000 in the previous year[191]. - The company reported a profit attributable to equity shareholders of HKD 3,344,000, a significant recovery from a loss of HKD 3,843,000 in 2018[191]. Assets and Liabilities - The total bank and other borrowings amounted to approximately HKD 175.6 million as of March 31, 2019, compared to about HKD 24.3 million as of March 31, 2018[31]. - The company's current liabilities net amount was approximately HKD 74.3 million as of March 31, 2019, compared to about HKD 29.3 million as of March 31, 2018[30]. - The asset-liability ratio increased to approximately 79.4% as of March 31, 2019, from about 37.9% as of March 31, 2018[32]. - Total assets as of March 31, 2019, were HKD 354,956,000, compared to HKD 175,159,000 in 2018, reflecting a growth of 102.5%[194]. - Current liabilities increased to HKD 206,441,000 from HKD 45,690,000, resulting in a negative net current liabilities of HKD 74,268,000[194]. - Non-current liabilities rose to HKD 133,441,000 from HKD 9,565,000, indicating a substantial increase[194]. - The company's net asset value decreased slightly to HKD 88,342,000 from HKD 90,603,000[194]. Corporate Governance - The company has complied with the corporate governance code as of March 31, 2019[60]. - The board consists of six directors, including two executive directors and three independent non-executive directors[63]. - All directors confirmed full compliance with the trading standards set out in the standard code for the year ending March 31, 2019[61]. - The roles of the chairman and the CEO are separated, with the chairman focusing on overall strategy and the CEO managing daily operations[71]. - The company has adopted a board diversity policy to ensure a balance of skills, experience, and perspectives among board members[72]. - Independent non-executive directors confirmed their independence in accordance with GEM Listing Rules[66]. - The company plans to hold at least four regular board meetings annually to discuss overall strategy and financial performance[65]. - The company’s articles of association require that one-third of directors retire by rotation at each annual general meeting[67]. - The chairman and an independent non-executive director are eligible and willing to stand for re-election at the upcoming annual general meeting[68]. - The Audit Committee held four meetings during the year ended March 31, 2019, with all members attending all meetings[77]. - The Nomination Committee held one meeting during the year ended March 31, 2019, with all members attending[79]. - The Remuneration Committee held one meeting during the year ended March 31, 2019, with all members attending[87]. - The company has a dividend policy that allows for the declaration of dividends from profits or reserves deemed no longer necessary by the board[91]. - The company has arranged suitable insurance coverage for directors and senior officers against legal liabilities arising from corporate activities, which will be reviewed annually[90]. - All new directors received comprehensive onboarding guidance to ensure understanding of the company's operations and responsibilities under GEM listing rules[89]. - The company emphasizes diversity in its board composition, considering factors such as gender, age, and professional experience[86]. - The Remuneration Committee reviewed the remuneration of directors and senior management, ensuring no individual director participated in determining their own remuneration[88]. - The company’s Audit Committee is composed of three independent non-executive directors, ensuring oversight of financial reporting and risk management[76]. - The Nomination Committee is responsible for reviewing the board's composition annually to ensure it meets the company's business needs[78]. Risk Management - The board confirmed its responsibility for maintaining a sound internal control and risk management system, which was reviewed during the year[99]. - The company has adopted a three-tier risk management approach to identify, assess, mitigate, and respond to risks[100]. - The internal control system includes monitoring and reviewing sales, purchases, production, and inventory processes[101]. - Financial monitoring is crucial for identifying and managing assets and liabilities to avoid unnecessary financial risks[102]. - The company has implemented measures to enhance cash flow control, requiring proper review and approval for all payments[102]. - The board and audit committee systematically reviewed the internal control systems and identified areas for improvement[105]. Market Expansion and Acquisitions - The group aims to expand its market presence in North China, driven by favorable government policies and the development of the Xiong'an New Area[14]. - A wholly-owned subsidiary, Hebei Jiapin Trading Co., Ltd., has entered into a purchase agreement for RMB 34,500,000 to acquire commercial property in Shijiazhuang as an office and product display area[16]. - The acquisition of Hebei Youlin Technology Co., Ltd. was completed on March 28, 2019, to enhance the group's product range and achieve economies of scale[16]. - The company plans to explore potential markets such as Taiwan to expand its customer base and promote business growth[22]. - The company entered into a share transfer agreement to acquire 100% equity of Hebei Youlin for a consideration of RMB 28 million on January 24, 2019[38]. - The target company became a wholly-owned subsidiary of the group after the transaction completed on March 28, 2019[39]. Environmental Impact - The group has been actively identifying and managing its environmental impact, aiming to minimize waste through the adoption of eco-friendly machinery[133]. Shareholder Information - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting[108]. - The company maintained a public float of at least 25% of its issued share capital prior to the report's publication[137]. - The top five customers accounted for approximately 79.1% of total sales, with the largest customer representing about 49.7% of total sales for the year ended March 31, 2019[138]. - The group’s major suppliers accounted for approximately 50.8% of total purchases, with the largest supplier representing about 16.1%[138]. Audit and Compliance - For the fiscal year ending March 31, 2019, the external auditor, KPMG, charged approximately HKD 1,700,000 for annual audit services[107]. - The audit procedures included evaluating management's assumptions against historical performance and external economic data to assess the reasonableness of cash flow forecasts[182]. - The audit identified key audit matters related to the impairment assessment of properties, plants, and equipment due to significant judgments and subjective assumptions involved[178]. - The company is responsible for preparing financial statements that are free from material misstatement due to fraud or error, and for maintaining effective internal controls[183]. - The auditor's responsibility is to obtain reasonable assurance that the financial statements are free from material misstatement, which may arise from fraud or error[185]. - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance[178]. - The audit did not identify any significant misstatements in the other information provided in the annual report[181]. - The company must assess its ability to continue as a going concern and disclose relevant matters if applicable[183]. - The audit included sensitivity analysis on key assumptions used in the cash flow forecasts to evaluate potential biases in management's estimates[182]. Share Capital and Equity - As of March 31, 2019, the company had a total of 218,733,333 issued shares, with significant ownership by directors, including Ms. Sun Xuesong holding 123,041,695 shares (56.25%) and Mr. Xue Zhaoqiang holding 30,760,425 shares (14.06%)[152]. - The company did not engage in any purchases, sales, or redemptions of its listed securities during the fiscal year ending March 31, 2019[154]. - There were no outstanding stock options granted under the stock option plan as of March 31, 2019, and no stock options were granted during the fiscal year[165]. - The stock option plan allows for a maximum of 20,000,000 shares to be issued, representing approximately 9.14% of the total issued shares as of the report date[160]. - The company confirmed compliance with the GEM Listing Rules regarding related party transactions, with no additional transactions requiring disclosure[146]. - The independent non-executive directors confirmed their independence as per GEM Listing Rules, ensuring governance standards are met[149]. - The company has not entered into any management contracts for the fiscal year ending March 31, 2019, aside from employment contracts[150]. - The company has no arrangements that would allow directors to benefit from acquiring shares or debt securities of the company or any other entity[169]. - The auditor, KPMG, has been appointed to audit the financial statements for the years ending March 31, 2017, 2018, and 2019, and will be proposed for reappointment at the upcoming annual general meeting[171]. - The company does not have any provisions for preemptive rights for existing shareholders regarding the issuance of new shares, except as required by the Stock Exchange[156]. - The consolidated financial statements reflect a total asset value of HKD 226,610,000 after deducting accumulated impairment losses of HKD 2,950,000 as of March 31, 2019[178]. - Management identified potential impairment indicators for certain properties, plants, and equipment, necessitating a cash flow forecast assessment for recoverable amounts[178]. - The equity attributable to equity shareholders as of April 1, 2018, was HKD 90,603,000[198]. - The company’s share capital remained constant at HKD 2,187,000 across the reporting periods[198]. - The company’s premium on shares was HKD 72,403,000, unchanged from the previous year[198]. - The foreign exchange reserve improved from HKD 3,114,000 as of April 1, 2018, to a loss of HKD 2,491,000 by March 31, 2019[198]. - The total reserves, excluding cumulative losses, were HKD 41,355,000 as of both April 1, 2018, and March 31, 2019[198].

Financial Performance - Revenue for the three months ended December 31, 2018, was HKD 57,743,000, representing a 39.8% increase from HKD 41,322,000 in the same period of 2017[6]. - Gross profit for the nine months ended December 31, 2018, was HKD 32,874,000, up 81.9% from HKD 18,058,000 in the same period of 2017[6]. - The operating profit for the three months ended December 31, 2018, was HKD 1,805,000, compared to an operating loss of HKD 1,636,000 in the same period of 2017[6]. - The net profit attributable to equity shareholders for the nine months ended December 31, 2018, was HKD 4,106,000, a significant improvement from a loss of HKD 2,433,000 in the same period of 2017[6]. - Basic and diluted earnings per share for the three months ended December 31, 2018, was HKD 0.40, compared to a loss per share of HKD 0.80 in the same period of 2017[8]. - The total comprehensive income for the three months ended December 31, 2018, was HKD 982,000, compared to a loss of HKD 47,000 in the same period of 2017[8]. - For the nine months ended December 31, 2018, the total revenue increased by approximately 49.1% to HKD 193,779,000 compared to HKD 129,971,000 for the same period in 2017[20]. - The company reported a profit attributable to equity shareholders of HKD 4,106,000 for the nine months ended December 31, 2018, compared to a loss of HKD 2,433,000 for the same period in 2017[25]. - Profit for the period was approximately HKD 4.1 million, a turnaround from a loss of approximately HKD 2.4 million for the same period in 2017, driven by an increase in gross profit of about HKD 14.8 million[34]. Sales and Market Performance - The sales volume of plywood products increased by about 15.6% to approximately 46,568 cubic meters for the nine months ended December 31, 2018, compared to about 40,280 cubic meters for the same period in 2017[28]. - Sales of ordinary boards reached HKD 143,442,000 for the nine months ended December 31, 2018, a significant increase from HKD 85,826,000 in 2017, representing a growth of approximately 67.1%[20]. - The company’s sales from Japan for the nine months ended December 31, 2018, amounted to HKD 163,366,000, up from HKD 114,647,000 in 2017, reflecting an increase of approximately 42.5%[20]. - The company’s sales from China increased significantly to HKD 21,391,000 for the nine months ended December 31, 2018, compared to HKD 2,272,000 in 2017, marking a growth of approximately 840.5%[20]. Profitability and Margins - The gross profit margin improved by approximately 3.1 percentage points to about 17.0% for the nine months ended December 31, 2018, compared to 13.9% for the same period in 2017[28]. - Gross profit margin increased from approximately 13.9% for the nine months ended December 31, 2017, to approximately 17.0% for the same period in 2018, primarily due to a decrease in unit sales costs[32]. Foreign Exchange and Financial Position - The company reported a foreign exchange loss of HKD 7,885,000 for the nine months ended December 31, 2018, compared to a gain of HKD 4,434,000 in the same period of 2017[8]. - The company's cash and cash equivalents were approximately HKD 14.3 million as of December 31, 2018, down from approximately HKD 20.0 million as of March 31, 2018[36]. - The total amount of bank and other borrowings was approximately HKD 49.4 million as of December 31, 2018, compared to approximately HKD 24.3 million as of March 31, 2018[36]. - The company's debt-to-equity ratio was approximately 56.9% as of December 31, 2018, up from approximately 26.8% as of March 31, 2018[37]. Business Operations and Strategy - The company is primarily engaged in the procurement, production, and sale of plywood products and trading of building materials[13]. - The company plans to implement various productivity enhancement methods, including automation of internal processes to improve efficiency and reduce costs[29]. - The company plans to construct a new production facility with an expected annual capacity of approximately 99,456 cubic meters of plywood products, with construction expected to be completed by the end of March or early April 2019[44]. - The company aims to expand its market presence in North China, driven by favorable government policies and significant opportunities in the development of the Xiong'an New Area[45]. - The company is considering expanding its product range to include wooden building components and furniture, and plans to collaborate with other plywood processing companies to increase sales in downstream markets[45]. - The company has signed sales contracts with several clients in Hebei Province and Beijing since July 2018, aiming to supply wooden materials for construction and interior decoration[47]. - A wholly-owned subsidiary has entered into a purchase agreement for a commercial property in Shijiazhuang for RMB 34,500,000 to serve as an office and product display area[47]. - The company is seeking business opportunities in potential markets in other countries and North China to expand its customer base[47]. - The board plans to maintain the existing core business while exploring new opportunities to enhance and solidify the company's operations[47]. - The company believes it has advantages over small local enterprises in further developing and expanding its market and product offerings[47]. Compliance and Governance - The financial statements have been prepared in accordance with applicable Hong Kong Financial Reporting Standards and GEM Listing Rules[14]. - The company has adopted a code of conduct for securities trading in compliance with GEM listing rules, with all directors confirming adherence[56]. - As of December 31, 2018, no stock options were granted under the stock option plan, and no directors or employees held any stock options[66]. - The stock option plan allows for a maximum of 20,000,000 shares to be granted, representing approximately 9.14% of the issued shares as of the report date[60]. Acquisitions - The company has agreed to acquire 100% equity of Hebei Youlin Technology Co., Ltd. for RMB 28,000,000[67]. - Hebei Youlin Technology Co., Ltd. primarily engages in the processing and sales of wooden structures, wooden boards, and wooden furniture[67]. - Upon completion of the transaction, Hebei Youlin will become a wholly-owned subsidiary of the company, and its financial performance will be consolidated into the group's accounts[67].