Financial Performance - The group recorded a profit attributable to owners for the year ended March 31, 2021, despite challenges posed by the COVID-19 pandemic[33]. - The group's revenue for the year ended March 31, 2021, was approximately HKD 53.4 million, a decrease of about 14.6% compared to HKD 62.5 million for the year ended March 31, 2020, primarily due to weak retail sales caused by the COVID-19 pandemic in Hong Kong[36]. - The cost of sales decreased to approximately HKD 11.2 million, down about 51.7% from HKD 23.2 million in the previous year, attributed to effective cost control measures and inventory management[37]. - Gross profit increased by approximately 7.1% to about HKD 42.2 million from approximately HKD 39.4 million in the previous year[37]. - The group recorded a profit before tax of approximately HKD 4.4 million for the year ended March 31, 2021, compared to a loss of about HKD 46.8 million for the year ended March 31, 2020[40]. - The net loss attributable to the company's owners decreased to approximately HKD 3.7 million for the year ended March 31, 2021, from a loss of about HKD 46.8 million in the previous year[43]. Operational Efficiency and Strategy - The company aims to enhance operational efficiency and strengthen cost control measures moving forward[34]. - The group will continue to optimize existing resources to improve profitability and core competitiveness[34]. - The company completed a placement of new shares on April 30, 2021, and will cautiously seek potential business opportunities to create higher value for shareholders[34]. - The company has ceased operations of a non-profit retail store in Tseung Kwan O to improve efficiency[33]. - The company is committed to enhancing inventory management and reducing production capacity in response to market conditions[33]. Market Conditions and Challenges - The COVID-19 pandemic significantly disrupted the local retail market, particularly during peak seasons like spring and Christmas[32]. - The board remains cautiously optimistic about the recovery of the local retail market as vaccination programs are implemented[34]. - The group is actively negotiating with suppliers and business partners to implement mitigation measures[33]. Corporate Governance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15, ensuring transparency and accountability[70]. - As of March 31, 2021, the company did not comply with GEM Listing Rules regarding the minimum number of independent non-executive directors, which was less than the required number[72]. - The company appointed a qualified independent non-executive director on June 18, 2021, thus meeting the GEM Listing Rules requirements thereafter[73]. - The board of directors is responsible for overseeing the company's overall strategy, business performance, and risk management systems[76]. - The company has a strong focus on internal controls to protect shareholder interests and enhance long-term shareholder value[70]. Board Structure and Diversity - The company has a diverse board with members possessing extensive experience in finance, management, and consulting[66][67]. - The company emphasizes the separation of roles between the chairman and the chief executive officer to enhance governance[71]. - The board consists of 5 members, including 2 executive directors and 3 independent non-executive directors[77]. - The company emphasizes the importance of board diversity, considering various factors such as gender, age, and professional experience in its selection process[102]. - The company is committed to maintaining a balanced diversity among board members to meet business needs and development plans[102]. Risk Management and Compliance - The board is responsible for maintaining effective risk management and internal control systems, with an annual review of their adequacy and effectiveness[111]. - The company has implemented measures to identify, assess, and manage significant risks, including risk identification, assessment, response, and monitoring[108][109][110]. - The board has taken steps to ensure compliance with legal and regulatory requirements, including providing adequate training to employees[105]. - The company has engaged external consultants to review its internal control systems and provide recommendations for improvement[113]. - The company has established a Compliance Committee to oversee all compliance matters and ensure proper approval of significant acquisitions and transactions[105]. Environmental, Social, and Governance (ESG) Initiatives - The company has established a governance framework to oversee its environmental, social, and governance (ESG) strategies, ensuring effective risk management and internal controls[125]. - The company has identified key performance indicators (KPIs) related to its ESG initiatives, which are reported to stakeholders[126]. - The company aims to minimize its negative environmental impact and seeks eco-friendly operational methods[139]. - The company has implemented a stakeholder engagement process to gather feedback and improve its ESG performance[132]. - The company focuses on community investment in education, social welfare, and environmental protection, committing to social responsibility[196]. Employee Management and Welfare - The company has implemented health and safety measures in response to COVID-19, including temperature checks and mandatory mask-wearing for employees and customers[181]. - The company emphasizes a zero-tolerance policy towards discrimination in the workplace, promoting an inclusive work culture[171]. - The company emphasizes the importance of employee training and performance evaluation, providing regular training programs including onboarding, skills training, and quality training[182]. - Competitive compensation and benefits are provided, including performance bonuses and flexible leave arrangements, to enhance employee retention[174]. - The overall employee turnover rate for the year was 26%, with 31% of those leaving being aged 19-60 and 17% aged 60 or above[170]. Environmental Impact and Sustainability - The company has not reported any significant violations of environmental regulations regarding emissions and waste management during the fiscal year[139]. - The company encourages employees to adopt paperless practices to reduce paper usage and promotes energy-saving measures in its operations[140]. - The company's nitrogen oxide emissions increased from 5.84 kg in 2020 to 8.88 kg in 2021, representing a 52.4% increase[142]. - Total greenhouse gas emissions decreased by approximately 33% from about 165.21 tons of CO2 equivalent in 2020 to about 110.46 tons in 2021[149]. - Total energy consumption decreased by approximately 34% from about 311,983.00 kWh in 2020 to about 206,374.76 kWh in 2021[159].

Financial Performance - Revenue for the third quarter of 2020 was HKD 13,530,000, a decrease of 6.5% compared to HKD 14,468,000 in the same period of 2019[4] - Gross profit for the nine months ended December 31, 2020, was HKD 32,415,000, down 7.6% from HKD 35,081,000 in the previous year[4] - The company reported a net profit attributable to owners of HKD 1,830,000 for the third quarter, compared to a loss of HKD 2,556,000 in the same quarter of 2019[4] - Basic earnings per share for the third quarter was HKD 0.38, recovering from a loss of HKD 0.53 in the previous year[4] - Total comprehensive income for the nine months was HKD 6,874,000, compared to a loss of HKD 8,700,000 in the same period of 2019[4] - The company recorded revenue of approximately HKD 40.5 million for the nine months ended December 31, 2020, a decrease of about 14.6% compared to HKD 47.4 million for the same period in 2019, primarily due to the impact of the COVID-19 pandemic and related retail sales weakness[25] - The company reported a profit attributable to owners of approximately HKD 7.9 million for the nine months ended December 31, 2020, compared to a loss of approximately HKD 8.7 million in the same period of 2019, primarily due to effective cost control measures and government subsidies[30] Cost Control and Expenses - Operating expenses decreased to HKD 13,332,000 for the nine months, down from HKD 19,760,000 in the previous year, reflecting a cost control strategy[4] - Sales expenses decreased from approximately HKD 19.7 million for the nine months ended December 31, 2019, to about HKD 13.3 million for the same period in 2020, mainly due to reduced employee costs and marketing expenses[28] - Administrative and other operating expenses fell from approximately HKD 24.5 million for the nine months ended December 31, 2019, to about HKD 15.5 million for the same period in 2020, primarily due to decreases in employee costs and legal fees[28] - The company maintained effective control over sales, administrative, and other operating expenses, contributing to the improved financial performance[30] Market Strategy and Expansion - The company plans to expand its market presence in Hong Kong, Macau, and mainland China, focusing on women's lingerie products and beauty services[9] - Market expansion efforts have led to a presence in G new countries, targeting a potential user base increase of H%[52] - The company is exploring acquisition opportunities in the sector to strengthen its market position[52] - Strategic partnerships are being formed to enhance distribution channels, expected to increase sales by I%[52] Compliance and Governance - The company has implemented adjustments in accordance with the Hong Kong Financial Reporting Standards, impacting the financial results[10] - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from April 1, 2020, with no significant impact on the unaudited condensed consolidated financial statements[14] - The audit committee has reviewed the unaudited condensed consolidated results for the nine months ended December 31, 2020, ensuring compliance with applicable accounting standards and GEM listing rules[48] - The company has adhered to the corporate governance code as stipulated in the GEM listing rules, with no deviations reported[43] - The company continues to focus on maintaining best practices in corporate governance and compliance with relevant regulations[43] Future Outlook - The company continues to monitor the developments of the COVID-19 pandemic and its impact on profitability and financial position[24] - The company aims to enhance operational efficiency and strengthen cost control measures during the ongoing challenges posed by the pandemic[24] - Overall, the company remains optimistic about future growth, citing strong demand trends in the market[52] - The company provided guidance for Q4 2020, expecting revenue to be in the range of $B million to $C million, indicating a growth of D%[52] - New product launches are anticipated to contribute an additional $E million in revenue in the next quarter[52] - The company is investing $F million in R&D for new technologies aimed at enhancing user experience[52] Shareholding and Equity - As of December 31, 2020, Global Succeed Group Limited held 250,000,000 shares, representing 52.08% of the company's issued share capital[34] - Waichun Logistics Technology Limited owned 110,000,000 shares, accounting for 22.92% of the company's issued share capital[34] - The company has not granted any share options under the share option scheme adopted on June 19, 2017, as of the report date[41] Tax and Dividends - The estimated tax expense for the nine months ended December 31, 2020, was approximately HKD 1.2 million, an increase from about HKD 100,000 for the same period in 2019[29] - The company did not recommend any dividend distribution for the nine months ended December 31, 2020, consistent with the same period in 2019[18] User Engagement - User data showed an increase in active users to Z million, up A% year-over-year[52] - The company reported a net profit margin of J%, reflecting improved operational efficiency[52]

Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 26,991,000, a decrease of 18.5% compared to HKD 32,941,000 for the same period in 2019[5] - Gross profit for the six months ended September 30, 2020, was HKD 21,608,000, down 16.7% from HKD 25,954,000 in 2019[5] - The company reported a net profit attributable to owners of HKD 6,020,000 for the six months ended September 30, 2020, compared to a loss of HKD 6,173,000 in the same period of 2019[5] - Basic earnings per share for the six months ended September 30, 2020, was HKD 1.25, compared to a loss per share of HKD 1.29 in 2019[5] - The company recorded a total comprehensive loss of HKD 6,173,000 for the six months ended September 30, 2020, compared to a loss of HKD 6,138,000 for the same period in 2019[11] - The profit attributable to the owners of the company for the six months ended September 30, 2020, was approximately HKD 6.0 million, compared to a loss of about HKD 6.2 million in the same period of 2019, due to effective cost control measures[62] Revenue Breakdown - Revenue from the sale of women's lingerie and related products for the six months ended September 30, 2020, was HKD 23,773,000, down from HKD 31,556,000 in the same period of 2019, reflecting a decrease of approximately 24.7%[29] - The company's revenue from beauty services for the six months ended September 30, 2020, was HKD 545,000, down from HKD 643,000 in the same period of 2019, representing a decrease of approximately 15.2%[29] - The group's revenue for the reporting period was approximately HKD 27.0 million, a decrease of about 17.9% compared to HKD 32.9 million in the same period of 2019, primarily due to the impact of the COVID-19 pandemic on retail sales[57] Assets and Liabilities - Total assets as of September 30, 2020, were HKD 41,992,000, compared to HKD 41,607,000 as of March 31, 2020[7] - The company's non-current assets decreased to HKD 38,386,000 as of September 30, 2020, from HKD 32,976,000 as of March 31, 2020[7] - Current liabilities increased to HKD 104,300,000 as of September 30, 2020, from HKD 97,003,000 as of March 31, 2020[8] - As of September 30, 2020, the group's current liabilities net value was approximately HKD 55.4 million, down from HKD 62.3 million as of March 31, 2020[64] Cash Flow - The company reported a net cash inflow from operating activities of HKD 9,457,000 for the six months ended September 30, 2020, compared to HKD 944,000 for the same period in 2019, representing a significant increase[16] - The company’s cash and bank balances decreased to HKD 3,269,000 as of September 30, 2020, from HKD 4,023,000 as of March 31, 2020[7] - Cash and cash equivalents at the end of the period were HKD 4,023,000, down from HKD 5,454,000 at the end of the same period in 2019, indicating a decrease of approximately 26.2%[16] - The company reported a decrease in cash flow from investing activities, with a net cash outflow of HKD 338,000 for the six months ended September 30, 2020, compared to a net inflow of HKD 103,000 in the same period of 2019[16] Cost Management - The company incurred a loss of HKD 30,976,000 in accumulated losses as of April 1, 2020, which increased to HKD 66,088,000 by September 30, 2020[11] - Total employee costs decreased to 9,891 thousand HKD for the six months ended September 30, 2020, down 35.5% from 15,315 thousand HKD in the same period of 2019[6] - Selling expenses decreased to approximately HKD 8.7 million from about HKD 14.2 million in the previous year, mainly due to reductions in employee costs and marketing expenses[60] - Administrative and other operating expenses fell to approximately HKD 10.6 million from about HKD 17.8 million in the previous year, driven by decreases in legal and professional fees and other operating costs[60] Shareholder Information - The group maintained a consistent share count of 480,000,000 ordinary shares throughout the reporting periods[39] - As of September 30, 2020, Global Succeed Group Limited holds 250,000,000 shares, representing 52.08% of the company's issued share capital[79] - Waichun Logistics Technology Limited owns 110,000,000 shares, accounting for 22.92% of the company's issued share capital[79] - The company has not granted any share options under the share option scheme as of the report date[85] Governance and Compliance - The company has complied with the corporate governance code except for the separation of roles between the chairman and the CEO[87] - The company has established an audit committee to oversee financial reporting processes and internal controls[91] - The audit committee reviewed the unaudited consolidated results for the six months ended September 30, 2020, considering positive cash flow and measures to improve financial conditions[93] - The board believes that the financial condition of the group will improve due to effective measures taken amid the recent developments of the COVID-19 pandemic[94] Employment and Operations - The group had 107 full-time employees as of September 30, 2020, down from 120 as of March 31, 2020[69] - The group completed the sale of a vessel for HKD 13.5 million during the reporting period[67] - The group incurred a net foreign exchange loss of 366 thousand HKD for the six months ended September 30, 2020, compared to a loss of 807 thousand HKD in the same period of 2019, reflecting improved currency management[6] - The group did not recommend any dividend distribution for the three and six months ended September 30, 2020, consistent with the previous year[36]

Financial Performance - The company's revenue for the three months ended June 30, 2020, was HKD 13,939,000, a decrease of 19.5% compared to HKD 17,277,000 in the same period of 2019[4] - Gross profit for the same period was HKD 11,562,000, down from HKD 13,427,000, reflecting a gross margin of approximately 83%[4] - The company reported a profit attributable to owners of HKD 3,588,000, compared to a loss of HKD 3,550,000 in the prior year[4] - Basic and diluted earnings per share for the period were HKD 0.75, compared to a loss per share of HKD 0.74 in the same period last year[4] - Other income increased to HKD 1,611,000 from a loss of HKD 428,000 in the previous year, indicating a significant improvement in non-operating income[4] - The company reported revenue of approximately HKD 13.9 million for the three months ended June 30, 2020, a decrease of about 19.7% compared to HKD 17.3 million for the same period in 2019 due to weak retail sales caused by the COVID-19 pandemic[22] - The company recorded a profit attributable to owners of approximately HKD 3.6 million for the three months ended June 30, 2020, compared to a loss of approximately HKD 3.6 million for the same period in 2019, mainly due to effective cost control measures[27] Cost Management - Selling expenses decreased to HKD 4,470,000 from HKD 8,308,000, showing a reduction of 46.1% year-over-year[4] - Administrative and other operating expenses also decreased to HKD 5,196,000 from HKD 8,662,000, a reduction of 40.5%[4] - Sales expenses decreased from approximately HKD 8.3 million for the three months ended June 30, 2019, to approximately HKD 4.5 million for the same period in 2020, primarily due to reduced marketing expenses[25] - Administrative expenses decreased from approximately HKD 8.7 million for the three months ended June 30, 2019, to approximately HKD 5.2 million for the same period in 2020, mainly due to reductions in legal and professional fees, employee costs, and other general expenses[25] - Gross profit margin increased from approximately 77.7% for the three months ended June 30, 2019, to approximately 82.9% for the same period in 2020, primarily due to effective cost control and improved inventory management[23] Financial Position - The total equity of the company as of June 30, 2020, was HKD (28,710,000), down from HKD 12,148,000 a year earlier, reflecting ongoing financial challenges[6] - Tax expenses increased from approximately HKD 100 for the three months ended June 30, 2019, to approximately HKD 274,000 for the same period in 2020[26] Corporate Governance - The company has maintained compliance with the GEM Listing Rules regarding corporate governance practices[41] - The company is committed to adopting best corporate governance practices as per the GEM Listing Rules[41] - The audit committee has reviewed the unaudited condensed consolidated results for the three months ended June 30, 2020, ensuring compliance with applicable accounting standards[47] - No directors or major executives have any competing business interests as of June 30, 2020[40] - The company has not appointed a CEO or chairman since October 2017 and February 2018, respectively[43] Market Focus and Strategy - The company continues to focus on the design, manufacturing, and sales of women's lingerie products, as well as expanding its beauty services in Hong Kong[9] - The company continues to focus on the Hong Kong market and strengthen cost control measures in response to the adverse market conditions caused by the COVID-19 pandemic[21] Shareholding Structure - Global Succeed Group Limited holds 250,000,000 shares, representing 52.08% of the issued share capital[34] - Waichun Logistics Technology Limited owns 110,000,000 shares, accounting for 22.92% of the issued share capital[35] - The shareholding structure indicates that both Mr. Chen and Mr. Yao each beneficially own 50% of Global Succeed Group Limited[34] Other Information - The company did not recommend the payment of dividends for the three months ended June 30, 2020, consistent with the same period in 2019[16] - The company completed a sale agreement for a vessel at a price of HKD 13.5 million, expected to finalize in November 2020[28] - The company has no significant investments or major acquisitions or disposals other than those disclosed above during the period[29] - The company has not granted any options under the share option scheme as of the report date[39] - There were no purchases, sales, or redemptions of the company's listed securities during the three months ended June 30, 2020[45]

[Company Information](index=4&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This chapter provides essential company details, including board members, committee compositions, company secretary, registered office, principal place of business, share registrar, principal bankers, compliance advisor, and auditor - This section details the company's foundational data, encompassing its board structure, committee memberships, and key administrative and advisory roles[4](index=4&type=chunk)[5](index=5&type=chunk)[8](index=8&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Business Review and Outlook](index=6&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E8%88%87%E5%89%8D%E6%99%AF) The Group adjusted its retail network, opening 3 stores in Hong Kong and closing 5 elsewhere, maintaining a cautious outlook due to external uncertainties - The core business involves designing, manufacturing, and selling shaping functional lingerie under the 'Bodibra' brand[11](index=11&type=chunk) - During the year, the company opened **3 new retail stores in Hong Kong** while closing **5 stores** across mainland China, Macau, and Hong Kong, indicating a business network adjustment[12](index=12&type=chunk) - The company's outlook faces dual challenges from the COVID-19 pandemic and Hong Kong's uncertain political environment, with a future focus on cost and inventory management[13](index=13&type=chunk) [Financial Review](index=7&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's financial performance significantly deteriorated, with revenue and gross profit declining, pre-tax losses expanding, and no dividend recommended Key Financial Performance for FY2019-20 | Indicator | For the year ended March 31, 2020 (HK$ Million) | For the year ended March 31, 2019 (HK$ Million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 62.5 | 72.9 | -14.3% | | Cost of Sales | 23.2 | 18.0 | +28.9% | | Gross Profit | 39.4 | 54.8 | -28.1% | | Loss Before Tax | (46.8) | (24.3) | +92.6% | | Loss Attributable to Owners of the Company | (46.8) | (24.4) | +91.8% | - The Board does not recommend the payment of a dividend for the year ended March 31, 2020[24](index=24&type=chunk) [Financial Position and Liquidity](index=8&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%88%87%E6%B5%81%E5%8B%95%E6%80%A7) The Group's financial position severely deteriorated, with assets decreasing, liabilities increasing, and equity turning negative, indicating significant liquidity pressure Financial Position Summary | Indicator | As of March 31, 2020 (HK$ Million) | As of March 31, 2019 (HK$ Million) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 80.4 | 118.5 | -38.1 | | Total Liabilities | 112.7 | 102.7 | +10.0 | | Equity Attributable to Owners | (32.3) | 15.8 | -48.1 | | Net Current Liabilities | (62.3) | (35.6) | -26.7 | | Cash and Bank Balances | 3.3 | 12.2 | -8.9 | [Comparison of Business Objectives with Actual Progress](index=10&type=section&id=%E6%A5%AD%E5%8B%99%E7%9B%AE%E6%A8%99%E8%88%87%E5%AF%A6%E9%9A%9B%E6%A5%AD%E5%8B%99%E9%80%B2%E5%B1%95%E5%B0%8D%E6%AF%94) Macroeconomic factors severely impacted the Group's business objectives, leading to suspended expansion plans and unfulfilled strategic initiatives - The original plan to open **three retail stores in China** and recruit additional sales staff was suspended for evaluation due to macroeconomic uncertainties[43](index=43&type=chunk) - Due to Hong Kong's unstable political environment and the COVID-19 pandemic, the Group laid off some production workers and designers, contrary to the original goal of enhancing production capacity[44](index=44&type=chunk) - Plans to enhance operational efficiency, such as upgrading the POS system and integrating IT systems, remain in the evaluation and planning stages, showing slow progress[44](index=44&type=chunk)[45](index=45&type=chunk) [Use of Proceeds from Listing](index=12&type=section&id=%E4%B8%8A%E5%B8%82%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The company fully utilized its **HK$16.7 million** net listing proceeds, reallocating funds from retail expansion to working capital, reflecting a strategic contraction Allocation and Utilization of Net Proceeds from Listing (HK$ Million) | Use | Original Allocation | Amount Utilized | Balance | | :--- | :--- | :--- | :--- | | Expanding Retail Network | 13.4 | 5.4 | – | | Enhancing Brand Awareness | 0.5 | 0.5 | – | | Increasing Production Capacity and Product Development Capabilities | 1.2 | 1.2 | – | | Improving Operational Efficiency | 1.4 | 1.4 | – | | Working Capital and Others | 0.2 | 8.2 | – | | **Total** | **16.7** | **16.7** | **–** | - The Board resolved on January 11, 2019, to reallocate approximately **HK$8 million** originally designated for retail network expansion to working capital and other general corporate purposes[48](index=48&type=chunk) [Directors and Senior Management](index=13&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E5%B1%A4) - This section details the biographies of the company's executive directors, independent non-executive directors, and senior management, highlighting key figures such as Executive Directors Mr. Tam Chak Chi and Mr. Hui Hok, and Financial Controller Mr. Fok Wai Hung, whose backgrounds span accounting, finance, manufacturing, and electronics[50](index=50&type=chunk)[51](index=51&type=chunk)[58](index=58&type=chunk) [Corporate Governance Report](index=15&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%A0%B1%E5%91%8A) [Corporate Governance Practices](index=15&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The company adopted the Corporate Governance Code but deviated by not appointing a separate Chairman and Chief Executive, with roles jointly performed by executive directors - The company deviated from the Corporate Governance Code by not appointing a Chairman and Chief Executive, with their functions jointly performed by all executive directors, violating code provision A.2.1[61](index=61&type=chunk)[73](index=73&type=chunk) - Some directors did not attend the Annual General Meeting held on August 14, 2019, deviating from code provision A.6.7[61](index=61&type=chunk) [Board Committees](index=18&type=section&id=%E8%91%A3%E4%BA%8B%E5%A7%94%E5%93%A1%E6%9C%83) The Board operates three committees—Audit, Nomination, and Remuneration—each with specific oversight responsibilities, detailed in the report - The Audit Committee, comprising **three independent non-executive directors**, held **4 meetings** during the year, reviewing the effectiveness of financial statements, internal controls, and risk management systems[80](index=80&type=chunk)[81](index=81&type=chunk) - The Nomination Committee held **1 meeting** during the year, reviewing the board's structure, size, and composition, and making recommendations to the Board regarding the re-election and appointment of directors[86](index=86&type=chunk)[87](index=87&type=chunk) - The Remuneration Committee held **1 meeting** during the year, reviewing the remuneration of newly appointed directors and employee bonuses, and making recommendations to the Board[90](index=90&type=chunk) [Risk Management and Internal Control](index=22&type=section&id=%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86%E5%8F%8A%E5%85%A7%E9%83%A8%E7%9B%A3%E6%8E%A7) The Board ensures sound risk management and internal control systems, utilizing external consultants for annual reviews, and deems existing controls adequate and effective - The company does not have an internal audit function; the Board is directly responsible for internal control and engages external professional consultants for annual reviews[101](index=101&type=chunk) - The Board believes that as of the date of this annual report, the existing internal control system covers all material controls, including financial, operational, and compliance controls, as well as risk management functions, and is reasonably effective and adequate[104](index=104&type=chunk) [Environmental, Social and Governance Report](index=26&type=section&id=%E7%92%B0%E5%A2%83%E3%80%81%E7%A4%BE%E6%9C%83%E5%8F%8A%E7%AE%A1%E6%B2%BB%E5%A0%B1%E5%91%8A) [Environment](index=27&type=section&id=%E7%92%B0%E5%A2%83) The Group is committed to environmental protection, focusing on efficient energy and resource utilization, with total greenhouse gas emissions significantly decreasing FY2020 Environmental Performance Indicators | Indicator | 2020 Data | Unit | | :--- | :--- | :--- | | Total Greenhouse Gas Emissions | 165 | tonnes of CO2e | | - Scope 1: Direct Emissions | 28 | tonnes of CO2e | | - Scope 2: Indirect Emissions | 137 | tonnes of CO2e | | Total Energy Consumption | 311,983 | kWh | | Water Consumption | 518 | cubic meters | - During the year, the Group's greenhouse gas emissions significantly decreased to **165 tonnes of CO2e** from **321.2 tonnes** in 2019[137](index=137&type=chunk) [Social](index=31&type=section&id=%E7%A4%BE%E6%9C%83) The Group prioritizes fair employment, employee health and safety, and strict adherence to labor standards, with **132 employees** and no work-related fatalities Employee Composition (as of March 31, 2020) | Category | Male | Female | Total | | :--- | :--- | :--- | :--- | | Number | 24 | 108 | 132 | | Percentage | 18% | 82% | 100% | - The employee turnover rate as of March 31, 2020, was **24%**[163](index=163&type=chunk) - The Group strictly adheres to labor standards, prohibiting child and forced labor, and verifies employee identities through onboarding registration procedures[169](index=169&type=chunk) - The Group prohibits all forms of corruption, bribery, extortion, money laundering, or fraud, with no related legal cases during the review year[174](index=174&type=chunk)[175](index=175&type=chunk) [Report of the Directors](index=36&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%A0%B1%E5%91%8A) - This report is a statutory disclosure document outlining the Group's principal activities, performance, and dividend policy, with the Board not recommending a dividend for the year ended March 31, 2020[182](index=182&type=chunk) - The Group's top five suppliers accounted for approximately **72.4%** of total purchases, with the largest supplier representing about **40.6%**, indicating a degree of supplier concentration risk[200](index=200&type=chunk) - Controlling shareholder Global Succeed Group Limited holds **75%** of the company's issued share capital[223](index=223&type=chunk) - The company adopted a share option scheme in 2017, but no share options have been granted under the scheme as of the date of this report[228](index=228&type=chunk)[232](index=232&type=chunk) [Independent Auditor's Report](index=46&type=section&id=%E7%8D%A8%E7%AB%8B%E6%A0%B8%E6%95%B8%E5%B8%AB%E5%A0%B1%E5%91%8A) - **Significant Alert:** Evergreen (Hong Kong) CPA Limited, the independent auditor, issued a **Disclaimer of Opinion** on the Group's consolidated financial statements[250](index=250&type=chunk) - The basis for the disclaimer is a **material uncertainty related to going concern**, as the Group incurred a loss of approximately **HK$46.84 million** for the year, with net current liabilities of approximately **HK$62.31 million** and net liabilities of **HK$32.29 million** at year-end, raising significant doubt about its ability to continue as a going concern, and the auditor could not obtain sufficient audit evidence to provide a basis for an audit opinion[251](index=251&type=chunk) [Consolidated Financial Statements](index=48&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=48&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement details the Group's operating results, showing declining revenue and a sharp increase in loss attributable to owners, resulting in a basic loss per share Consolidated Statement of Profit or Loss Summary (HK$ Thousand) | Item | 2020 | 2019 | | :--- | :--- | :--- | | Revenue | 62,529 | 72,875 | | Gross Profit | 39,372 | 54,828 | | Operating Loss | (30,251) | (25,109) | | Impairment of Investments in Associates | (16,377) | – | | Loss Before Tax | (46,839) | (24,323) | | Loss for the Year Attributable to Owners of the Company | (46,839) | (24,418) | | Basic Loss Per Share (HK cents) | (9.76) | (5.09) | [Consolidated Statement of Financial Position](index=49&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) The Group's financial position severely deteriorated, with assets shrinking, liabilities increasing, and equity shifting to a net deficit position Consolidated Statement of Financial Position Summary (HK$ Thousand) | Item | As of March 31, 2020 | As of March 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 38,386 | 52,004 | | Current Assets | 41,992 | 66,502 | | **Total Assets** | **80,378** | **118,506** | | **Liabilities and Equity** | | | | Current Liabilities | 104,300 | 102,083 | | Non-current Liabilities | 8,364 | 602 | | **Total Liabilities** | **112,664** | **102,685** | | **Net (Liabilities) / Assets** | **(32,286)** | **15,821** | | **Total (Deficit) / Equity** | **(32,286)** | **15,821** | [Consolidated Statement of Cash Flows](index=52&type=section&id=%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) The Group's cash and cash equivalents decreased by **HK$9.56 million** net, with operating activities generating a net cash inflow, offset by a significant net cash outflow from financing Consolidated Statement of Cash Flows Summary (HK$ Thousand) | Item | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash From / (Used In) Operating Activities | 1,573 | (15,953) | | Net Cash From / (Used In) Investing Activities | 652 | (42,333) | | Net Cash Used In Financing Activities | (11,785) | (1,166) | | **Net Decrease in Cash and Cash Equivalents** | **(9,560)** | **(59,452)** | | Cash and Cash Equivalents at Beginning of Year | 12,234 | 71,711 | | **Cash and Cash Equivalents at End of Year** | **3,269** | **12,234** | [Notes to the Consolidated Financial Statements](index=54&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed explanations and supplementary information for financial statement items, highlighting significant uncertainties regarding going concern, HKFRS 16 impact, substantial impairment losses, and significant contract liabilities - **Going Concern Assumption (Note 2):** The note explicitly states that as of March 31, 2020, the Group incurred a loss of approximately **HK$46.84 million**, with net current liabilities of approximately **HK$62.31 million** and net liabilities of **HK$32.29 million**, indicating material uncertainties that may cast significant doubt on the Group's ability to continue as a going concern, with its effectiveness dependent on future profitability and external financial support[279](index=279&type=chunk) - **Significant Impairment Losses:** Several significant impairment losses were recognized this year, including: - Impairment of right-of-use assets: **HK$11.54 million** (Note 18) - Impairment of investments in associates: **HK$16.38 million** (Note 19) - Impairment of property, plant and equipment: **HK$1.26 million** (Note 17)[456](index=456&type=chunk)[458](index=458&type=chunk)[468](index=468&type=chunk) - **Contract Liabilities (Note 26):** As of March 31, 2020, the Group's contract liabilities, primarily from prepaid packages, membership vouchers, and beauty treatment packages, amounted to **HK$86.97 million**, representing the Group's most significant liability item[489](index=489&type=chunk) [Financial Summary](index=111&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) Five-Year Financial Summary (HK$ Thousand) | For the year ended March 31 | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 62,529 | 72,875 | 79,165 | 77,710 | 55,621 | | Gross Profit | 39,372 | 54,828 | 64,427 | 63,465 | 46,566 | | (Loss) / Profit for the Year | (46,839) | (24,418) | (1,324) | 1,057 | 8,633 | | Net (Liabilities) / Assets | (32,286) | 15,821 | 40,457 | 2,531 | 17,695 | - The five-year financial summary indicates that the Group's operating results shifted from profit to loss starting in FY2018, with losses continuously expanding in FY2019 and FY2020, and net assets turning from positive to net liabilities in FY2020, reflecting severe operational challenges faced by the company in recent years[531](index=531&type=chunk)[533](index=533&type=chunk)

Financial Performance - Revenue for the three months ended December 31, 2019, was HKD 14,468,000, a decrease of 23% compared to HKD 18,886,000 for the same period in 2018[7] - Gross profit for the nine months ended December 31, 2019, was HKD 35,081,000, down 15.1% from HKD 41,214,000 in the previous year[7] - The company reported a loss attributable to owners of HKD 2,556,000 for the three months ended December 31, 2019, compared to a loss of HKD 5,444,000 in the same period of 2018, representing a 53% improvement[7] - Total comprehensive loss for the nine months ended December 31, 2019, was HKD 8,700,000, a decrease of 49.3% from HKD 17,179,000 in the previous year[7] - Basic loss per share for the three months ended December 31, 2019, was HKD 0.53, compared to HKD 1.13 for the same period in 2018[7] - The company reported total revenue of HKD 47,409,000 for the nine months ended December 31, 2019, a decrease of 8.5% compared to HKD 51,715,000 for the same period in 2018[112] - Revenue from the sale of women's lingerie and related products was HKD 45,567,000 for the nine months ended December 31, 2019, down from HKD 48,843,000 in the previous year, representing a decline of 4.7%[112] - The company reported a loss attributable to owners of approximately HKD 8.7 million for the nine months ended December 31, 2019, compared to a loss of approximately HKD 17.0 million for the same period in 2018, indicating a reduction in losses[142] Expenses and Costs - The company incurred administrative and other operating expenses of HKD 24,489,000 for the nine months ended December 31, 2019, down 18.5% from HKD 29,962,000 in the previous year[7] - The company incurred interest expenses of HKD 819,000 related to lease liabilities during the reporting period[107] - Sales expenses decreased from approximately HKD 28.2 million for the nine months ended December 31, 2018, to approximately HKD 19.7 million for the same period in 2019, a reduction of about HKD 8.5 million[137] - Administrative expenses decreased from approximately HKD 30.0 million for the nine months ended December 31, 2018, to approximately HKD 24.5 million for the same period in 2019, a reduction of about HKD 5.5 million[137] Market Presence and Strategy - The company aims to expand its market presence in Hong Kong, Macau, and mainland China through the manufacturing and retail of women's lingerie products[51] - The company opened three new retail stores in Hong Kong during the review period, enhancing its market presence[129] - The company ceased operations of three retail stores in China and Macau during the review period, indicating a strategic contraction in certain markets[129] - The company plans to adopt a conservative and prudent approach to profitability in response to ongoing social events and economic impacts in Hong Kong[134] Accounting and Financial Reporting - The group recognized right-of-use assets amounting to approximately HKD 21,270,000 as of April 1, 2019[87] - The group confirmed additional lease liabilities of approximately HKD 22,315,000 due to the adoption of HKFRS 16[88] - The net impact of these adjustments resulted in a decrease of approximately HKD 1,045,000 in retained earnings[89] - As of December 31, 2019, the company's lease liabilities amounted to HKD 22,315,000, reflecting an increase from HKD 19,578,000 as of March 31, 2019[94] - The company recognized a right-of-use asset of HKD 18,817,000 as of December 31, 2019, down from HKD 21,270,000 at the beginning of the period[107] - The estimated taxable profits for Hong Kong profits tax were calculated at a rate of 8.25% on the first HKD 2 million and 16.5% on the excess, consistent with the previous year[116] - The company applied exemptions for short-term leases and low-value asset leases, which are recognized as expenses on a straight-line basis over the lease term[100] - The company has not adopted new accounting standards that are not yet effective, as they are not expected to have a significant impact on the financial statements[107] - The audit committee has reviewed the unaudited condensed consolidated results for the nine months ended December 31, 2019, ensuring compliance with applicable accounting standards and GEM listing rules[170] Other Financial Information - Other income for the three months ended December 31, 2019, was HKD 351,000, significantly higher than HKD 18,000 in the same period of 2018[7] - The company reported a finance cost of HKD 290,000 for the three months ended December 31, 2019, compared to HKD 23,000 in the same period of 2018[7] - The company recorded revenue of approximately HKD 47.4 million for the nine months ended December 31, 2019, a decrease of about 8.3% compared to HKD 51.7 million for the same period in 2018[135] - The gross profit margin decreased from 79.7% for the nine months ended December 31, 2018, to 74.0% for the same period in 2019, a reduction of approximately 5.7%[136] - The company reported a total of HKD 246,000 in unutilized prepaid ticket income for the nine months ended December 31, 2019, compared to HKD 2,861,000 in the previous year[112] - The company did not declare any dividends for the nine months ended December 31, 2019, consistent with the previous year[123] - Global Succeed Group Limited holds 360,000,000 shares, representing 75% of the company's issued share capital[151] - The company has not granted any options under the share option scheme as of the report date[158] - The net proceeds from the public offering amounted to approximately HKD 16.7 million, which will be used according to the company's future plans disclosed in the prospectus[130]

Financial Performance - For the six months ended September 30, 2019, the company reported a revenue of HKD 32,941,000, a slight increase from HKD 32,829,000 in the same period of 2018, representing a growth of 0.34%[8] - The gross profit for the same period was HKD 25,954,000, compared to HKD 26,789,000 in 2018, indicating a decrease of 3.1%[8] - The company recorded an operating loss before tax of HKD 6,173,000 for the six months ended September 30, 2019, an improvement from a loss of HKD 11,499,000 in the previous year, reflecting a reduction of 46.1%[8] - The company reported a net loss attributable to owners of HKD 6,138,000 for the six months ended September 30, 2019, compared to a loss of HKD 11,688,000 in the same period of 2018, showing a 47.5% improvement[8] - The basic loss per share for the six months ended September 30, 2019, was HKD 1.29, compared to HKD 2.40 in the same period of 2018, indicating a decrease of 46.25%[8] - For the six months ended September 30, 2019, the company reported a total comprehensive loss of HKD 30,976,000 compared to a loss of HKD 10,812,000 for the same period in 2018, representing an increase in loss of approximately 186%[28] - The group reported a total revenue of HKD 32,941,000 for the six months ended September 30, 2019, compared to HKD 32,829,000 for the same period in 2018, reflecting a slight increase of 0.34%[99] - The group recorded a pre-tax loss of HKD 6,173,000 for the six months ended September 30, 2019, compared to a loss of HKD 11,531,000 for the same period in 2018, indicating an improvement of 46.36%[116] - The group’s revenue from the sale of women's lingerie and related products was HKD 31,556,000 for the six months ended September 30, 2019, compared to HKD 29,573,000 in the same period of 2018, representing an increase of 6.68%[99] - The loss attributable to owners of the company was approximately HKD 6.2 million for the six months ended September 30, 2019, compared to a loss of approximately HKD 11.5 million in the same period of 2018, mainly due to cost control measures[161] Assets and Liabilities - The total assets less current liabilities as of September 30, 2019, were HKD 8,895,000, down from HKD 16,423,000 as of March 31, 2019[16] - The company’s cash and bank balances decreased to HKD 5,454,000 from HKD 12,234,000 as of March 31, 2019, representing a decline of 55.4%[11] - The company’s total equity decreased to HKD 8,638,000 as of September 30, 2019, from HKD 15,821,000 as of March 31, 2019, a decline of 45.4%[16] - The company's current liabilities net value was approximately HKD 60.8 million, an increase from HKD 35.6 million as of March 31, 2019, due to the adoption of HKFRS 16[162] - The debt-to-equity ratio as of September 30, 2019, was approximately 259%, significantly higher than 8.0% as of March 31, 2019, primarily due to a decrease in equity and the increase in lease liabilities[164] Cash Flow - The net cash used in operating activities for the six months was HKD 7,248,000, a significant decline from the net cash generated of HKD 944,000 in the previous period[33] - The company's cash and cash equivalents decreased to HKD 5,454,000 from HKD 12,234,000, indicating a reduction of approximately 55%[33] Accounting Standards and Changes - The company adopted HKFRS 16 Leases, which resulted in the recognition of right-of-use assets amounting to HKD 21,270,000 as of April 1, 2019[48] - The total liabilities increased due to the recognition of lease liabilities under HKFRS 16, amounting to HKD 22,315,000 as of April 1, 2019[53] - The adjustment to retained earnings due to the adoption of the new accounting standard was approximately HKD 1,045,000[72] - The company has not reported any significant impact from the adoption of other new accounting standards effective from January 1, 2019[42] Operational Developments - The company aims to enhance its market presence and product offerings through strategic initiatives and potential new product developments in the upcoming periods[8] - The company is primarily engaged in the manufacturing and retail of women's lingerie products, beauty services, and apparel trading, with operations in Hong Kong, Macau, and mainland China[35] - The company opened two new retail stores in Hong Kong during the review period, while closing three stores in mainland China and Macau[147] - The group is currently seeking suitable new factories and warehouses in China to enhance production capacity and product development capabilities[182] - The group is developing a VIP mobile application to improve operational efficiency and allow VIP members to access account information[183] Shareholding and Related Party Transactions - As of September 30, 2019, Global Succeed Group Limited holds 360,000,000 shares, representing 75% of the company's issued share capital[197] - Both Mr. Chan Lun Shu and Mr. Yao Guan Bang are deemed to have a 50% beneficial ownership in Global Succeed Group Limited, which directly owns the 360,000,000 shares[197] - The company has disclosed no other individuals with significant shareholdings as of September 30, 2019, apart from those mentioned[198] - The company has engaged in related party transactions, paying HKD 228,000 in consultancy and advisory fees for the six months ended September 30, 2019[142] Employee Costs - The total employee costs amounted to HKD 15,315,000 for the six months ended September 30, 2019, a decrease of 2.68% from HKD 15,739,000 in the same period of 2018[104] Dividends - The group did not declare any dividends for the six months ended September 30, 2019, consistent with the previous year[110]

Financial Performance - The company reported revenue of HKD 17,277,000 for the three months ended June 30, 2019, representing a 8.14% increase from HKD 15,977,000 in the same period of 2018[8]. - Gross profit for the same period was HKD 13,427,000, compared to HKD 13,107,000 in 2018, indicating a growth of 2.44%[8]. - The company incurred a loss attributable to owners of HKD 3,550,000, an improvement from a loss of HKD 6,016,000 in the previous year, reflecting a reduction of 41.00%[8]. - The basic loss per share decreased to HKD 0.74 from HKD 1.25, showing a 41.00% improvement year-over-year[8]. - The total comprehensive loss for the period was HKD 3,673,000, an improvement from HKD 6,144,000 in the same period last year, reflecting a reduction of 40.19%[8]. - The company recorded revenue of approximately HKD 17.3 million for the three months ended June 30, 2019, an increase of about 8.1% compared to HKD 16.0 million for the same period in 2018[46]. - The gross profit margin decreased from approximately 82.0% for the three months ended June 30, 2018, to about 77.7% for the same period in 2019, primarily due to increased production costs[51]. - The loss attributable to the company's owners was approximately HKD 3.6 million for the three months ended June 30, 2019, a decrease from approximately HKD 6.0 million for the same period in 2018[54]. Revenue Sources - Revenue from the sale of women's lingerie and related products was HKD 16,286,000, up from HKD 14,938,000, marking a 9.02% increase[25]. - The company generated HKD 666,000 from unutilized prepaid ticket income, down from HKD 1,039,000, a decrease of 35.93%[25]. - The company provided beauty services that generated HKD 325,000 in revenue, compared to HKD 1,000 in the previous year[25]. Expenses and Taxation - Sales and administrative expenses decreased to approximately HKD 8.3 million and HKD 8.7 million, respectively, for the three months ended June 30, 2019, compared to HKD 9.5 million and HKD 9.4 million for the same period in 2018[52]. - The income tax expense decreased significantly from approximately HKD 33,000 for the three months ended June 30, 2018, to about HKD 100 for the same period in 2019[53]. - The estimated taxable profit for the three months ended June 30, 2019, was subject to a Hong Kong profits tax rate of 16.5%[31]. Dividends and Share Capital - The company did not recommend the distribution of dividends for the three months ended June 30, 2019, consistent with the same period in 2018[32]. - Global Succeed Group Limited holds 360,000,000 shares, representing 75% of the company's issued share capital[63]. - The company has not granted any options under the share option scheme as of the report date[70]. Operational Developments - The company opened two new retail stores in Hong Kong during the review period, enhancing its market presence[44]. - The company ceased operations of a retail store in Shenzhen, China, effective May 20, 2019[44]. Compliance and Reporting - The financial results were prepared in accordance with the Hong Kong Financial Reporting Standards and are presented in Hong Kong dollars[17]. - The audit committee has reviewed the unaudited condensed consolidated results for the three months ended June 30, 2019, and found them compliant with applicable accounting standards and GEM listing rules[84].

BOD/Bra 心 心 功 能 內 衣 心心芭迪貝伊集團有限公司 族開曼群島註冊成立之有限公司 股份代號：8297 年度報告 2018-19 | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------------|-------|-------|--------------------------------------|------------------|--------------|-------|----------------------------------------------------------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | 香港聯合交易所有限公司（「聯交所」） | | | | GEM 之特色 | | | | | | | | | 的定位，乃為相比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 | | | | | | | | ...

Financial Performance - For the nine months ended December 31, 2018, the company reported revenue of HKD 51,715,000, a decrease of 8.4% compared to HKD 56,657,000 in the same period of 2017[3] - The gross profit for the same period was HKD 41,214,000, down 11.5% from HKD 46,517,000 year-on-year[3] - The company incurred a loss attributable to owners of HKD 16,975,000 for the nine months, compared to a loss of HKD 1,361,000 in the previous year, representing a significant increase in losses[3] - The basic loss per share for the nine months was HKD 3.54, compared to HKD 0.31 in the same period of 2017[3] - The total comprehensive loss for the nine months was HKD 17,179,000, compared to a loss of HKD 1,268,000 in the same period of 2017[3] - The group reported a basic loss per share of HKD 16,975,000 for the nine months ended December 31, 2018, compared to a loss of HKD 1,361,000 for the same period in 2017[96] - The group reported a loss of HKD 5,444,000 for the three months ended December 31, 2018, compared to a loss of HKD 1,443,000 for the same period in 2017[96] - The loss attributable to owners of the company was approximately HKD 17.0 million for the nine months ended December 31, 2018, significantly increasing from about HKD 1.4 million in the same period of 2017, mainly due to reduced revenue, increased selling expenses, and the lack of a prior year tax refund[119] Operational Costs - Administrative and listing expenses increased to HKD 29,962,000 from HKD 29,657,000 year-on-year, indicating a rise in operational costs[3] - Sales expenses increased from approximately HKD 23.5 million for the nine months ended December 31, 2017, to about HKD 28.2 million in the same period of 2018, an increase of approximately HKD 4.7 million due to rising rental and related expenses, employee costs, and marketing expenses[113] Market Presence and Strategy - The company aims to expand its market presence in Hong Kong and mainland China, focusing on the manufacturing and retail of women's lingerie products[77] - The company is actively engaged in the development of new products and technologies to enhance its competitive edge in the market[77] - The financial results reflect the challenges faced in the current market environment, prompting the company to reassess its strategies moving forward[77] - The group has expanded its retail presence in Macau and China, opening new stores in June and December 2018, and a new store in Shenzhen on September 1, 2018[106] Revenue Breakdown - The group's revenue from sales of women's lingerie and beauty services for the nine months ended December 31, 2018, was HKD 51,715,000, a decrease of 8.5% compared to HKD 56,657,000 for the same period in 2017[83] - The group's revenue from beauty services was HKD 11,000 for the nine months ended December 31, 2018, unchanged from the same period in 2017[83] - The group recorded revenue of approximately HKD 51.7 million, a decrease of about 8.8% compared to HKD 56.7 million in the same period of 2017, primarily due to ongoing intense market competition affecting sales volume[111] Financial Reporting and Compliance - The estimated tax rate for Hong Kong profits tax is 16.5% for the three and nine months ended December 31, 2018, consistent with the same periods in 2017[89] - The group has not recommended any dividends for the nine months ended December 31, 2018, consistent with the same period in 2017[91] - The group has adopted all new and revised Hong Kong Financial Reporting Standards effective from April 1, 2018, with no early application of standards yet to be effective[82] - The income tax expense rose from a tax credit of approximately HKD 5.3 million for the nine months ended December 31, 2017, to an expense of about HKD 32,000 in the same period of 2018, primarily due to the absence of a one-time tax refund received in the previous year[114] - The financial data for the nine months ending December 31, 2018, has not been audited by the company's auditors[149] - The audit committee has reviewed the unaudited condensed consolidated results and believes that the preparation of the results complies with applicable accounting standards and GEM listing rules[149] - The audit committee consists of independent non-executive directors, including Mr. Cai Zhenhui, Ms. Chen Jiaming, and Mr. Wang Jingqiang[149] Foreign Exchange Impact - The company reported a foreign exchange loss of HKD 204,000 for the nine months, compared to a gain of HKD 3,000 in the previous year[3] Investment Activities - The group acquired a 34% stake in a company primarily engaged in medical beauty services for HKD 32,640,000, which is expected to complement its existing business lines[101]