Revenue and Business Performance - The group's main business, home goods export, accounted for approximately 88.6% of total revenue during the period[10] - Revenue from home goods export increased from approximately HKD 26.6 million in the previous period to HKD 26.7 million in the current period, representing an annual increase of about 0.4%[11] - E-commerce segment revenue increased by approximately 53.3% from about HKD 1.5 million to approximately HKD 2.3 million, accounting for about 7.6% of total revenue[13] - Total revenue for the period was approximately HKD 30.2 million, an increase of about 7.5% from approximately HKD 28.1 million in the previous period[17] - Revenue for the six months ended September 30, 2020, was HKD 30,185,000, an increase from HKD 28,141,000 in the same period last year, representing a growth of 7.3%[66] - Major customers contributing over 10% of total revenue included Customer A with HKD 4,618,000 (up from HKD 4,229,000), Customer B with HKD 6,516,000 (down from HKD 8,170,000), and Customer C with HKD 3,488,000 (down from HKD 4,424,000)[90] Profitability and Expenses - The gross profit margin for home goods export improved from approximately 27.8% in the previous period to about 29.9% in the current period, primarily due to higher margin product orders[11] - Gross profit increased by approximately 23.4% to about HKD 9.5 million, with a gross profit margin rising from approximately 27.4% to about 31.5%[19] - Selling and distribution expenses rose to approximately HKD 4.3 million, an increase of about 16.2% from approximately HKD 3.7 million[20] - Administrative and other operating expenses decreased by approximately 27.5% to about HKD 5.8 million, primarily due to reduced depreciation expenses[22] - The company reported a net loss attributable to shareholders of HKD 3,503,000, compared to a loss of HKD 296,000 in the prior year, indicating a significant increase in losses[66] - The company experienced an operating loss of HKD 3,480,000, compared to a loss of HKD 160,000 in the same period last year, indicating a worsening operational performance[66] Financial Position and Cash Flow - As of September 30, 2020, the group's cash and bank balances were approximately HKD 25.6 million, down from HKD 31.2 million as of March 31, 2020[25] - The company’s cash and cash equivalents decreased from HKD 31,220,000 to HKD 25,608,000, a reduction of about 18%[70] - The company reported a net cash flow from investing activities of HKD (2,898) thousand for the six months ended September 30, 2020[74] - The net cash used in operating activities was HKD 2,363,000, compared to HKD 371,000 in the previous year, highlighting increased operational costs[73] - The company’s total liabilities increased from HKD 4,321,000 to HKD 8,605,000, indicating a rise of about 99%[70] Share Capital and Ownership - The company has issued a total share capital of HKD 10,000,000, divided into 1,000,000,000 shares at HKD 0.01 each as of September 30, 2020[42] - Major shareholders include Hearthfire Limited with a 61.125% stake and Present Moment Limited with an 8.625% stake as of September 30, 2020[53] - The company is fully owned by Mr. She through the controlled entity Hearthfire, which holds 100% of its shares[59] - The company is fully owned by Ms. Chen through the controlled entity Present Moment, which also holds 100% of its shares[58] Corporate Governance and Compliance - The management is committed to ensuring the accuracy and completeness of the financial report, confirming no misleading or fraudulent elements[3] - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and compliance[64] - The financial report was reviewed and approved by the audit committee prior to its release[64] - The company has complied with the GEM listing rules regarding corporate governance and financial reporting standards[64] Future Outlook and Strategic Initiatives - The group anticipates a gradual increase in demand for home goods exports as some countries relax restrictions and gradually restart their economies[11] - Future outlook includes potential market expansion and new product development strategies to improve financial performance[67] - The company is focusing on enhancing its technological capabilities and exploring acquisition opportunities to drive growth[68] Risk Management - The group faces currency risk as most transactions, assets, and liabilities are denominated in HKD, RMB, GBP, and USD, with sales and purchases primarily settled in USD[37] - The company has not established a foreign currency hedging policy but will monitor foreign exchange risks closely[37] Inventory and Receivables Management - Trade receivables increased significantly from HKD 7,082,000 to HKD 13,620,000, representing a growth of approximately 92%[70] - The company maintains strict monitoring of overdue balances, with directors regularly reviewing outstanding amounts[102] - The company requires new customers to make advance payments, ensuring a robust credit control system[102] - The aging analysis of trade receivables shows that HKD 5,727,000 (42.1%) was within 30 days, while HKD 4,060,000 (29.8%) was between 31 to 60 days[103] Other Financial Information - The company has not provided specific guidance for future performance, but the trends in cash flow and receivables suggest a focus on improving operational efficiency[73] - The company has not anticipated any changes to the planned use of proceeds as of the report date[35] - The company has not engaged in any purchases, sales, or redemptions of its listed securities during the reporting period[63]

Financial Performance - The company's revenue for the period was approximately HKD 12.1 million, a decrease of about 17.1% from approximately HKD 14.6 million in the previous period[11]. - The loss attributable to the company's owners decreased to approximately HKD 0.2 million, down about 88.9% from approximately HKD 1.8 million in the previous period[19]. - The gross profit increased by approximately 5.4% to about HKD 3.9 million, with a gross profit margin rising from approximately 25.3% to about 32.2%[14]. - Revenue for the three months ended June 30, 2020, was HKD 12,144,000, a decrease of 16.7% compared to HKD 14,570,000 in the same period of 2019[50]. - Gross profit for the same period was HKD 3,900,000, representing an increase of 5.4% from HKD 3,700,000 year-on-year[50]. - The company reported a loss attributable to owners of HKD 224,000, significantly improved from a loss of HKD 1,757,000 in the previous year, marking an 87.3% reduction in losses[40]. - Operating loss decreased to HKD 176,000 from HKD 1,748,000, indicating a substantial improvement in operational efficiency[40]. - The company’s total comprehensive loss for the period was HKD 224,000, down from HKD 1,765,000, representing a significant reduction of 87.7%[40]. - Basic and diluted loss per share improved to HKD 0.02 from HKD 0.18, showing a positive trend in per-share performance[40]. Revenue Breakdown - E-commerce revenue accounted for approximately 11.0% of total revenue for the period, representing a significant increase of about 87.1% compared to the previous period[8]. - The gross profit margin for the e-commerce segment rose from approximately 11.3% to about 31.7% due to higher sales prices[9]. - Revenue from the UK decreased by 37.83% to HKD 2,760,000 from HKD 4,441,000 year-on-year[53]. - Revenue from the US increased significantly to HKD 1,606,000, up 94.5% from HKD 824,000 in the previous year[53]. Cost Management - The sales cost decreased by approximately 24.8% to about HKD 8.2 million, aligning with the revenue decline[13]. - Administrative expenses were reduced by approximately 28.2% to about HKD 2.8 million, primarily due to decreased depreciation from the renovation of the exhibition hall in China[16]. - The cost of goods sold for home products was HKD 8,263,000, down 24.06% from HKD 10,890,000 in the previous year[61]. Corporate Governance - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM Listing Rules[25]. - The audit committee, consisting of three independent non-executive directors, has reviewed the accounting standards and policies adopted by the group during the reporting period[34]. - The company has complied with all applicable provisions of the corporate governance code during the reporting period, except for the separation of the roles of Chairman and CEO[24]. - The roles of Chairman and CEO are currently held by the same individual, which the board believes enhances internal leadership consistency and strategic planning efficiency[24]. - The company will continue to review the necessity of separating the roles of Chairman and CEO based on management needs and overall corporate circumstances[24]. - The company has confirmed that all directors have adhered to the trading standards and code of conduct for securities trading during the reporting period[25]. Shareholder Information - The company reported a significant shareholder concentration, with Hearthfire Limited holding 61.125% of shares and Present Moment Limited holding 8.625% as of June 30, 2020[27]. - As of June 30, 2020, the directors and senior management hold significant interests in the company, with 61.125% and 8.625% of shares held by the respective directors[28]. - There are no known direct or indirect competitive interests held by the directors or controlling shareholders that could conflict with the company's business[31]. Other Financial Information - The company incurred financing costs of HKD 14,000, compared to HKD 5,000 in the previous year, indicating a rise in financing expenses[40]. - Interest income decreased to HKD 45,000 from HKD 102,000, reflecting a decline of 55.9% year-on-year[50]. - The company reported a net foreign exchange gain of HKD 147,000, compared to a loss of HKD 99,000 in the previous year[61]. - Short-term benefits for directors and key management personnel amounted to HKD 665,000, an increase from HKD 642,000 in the previous year[66]. - The company does not recommend the payment of any dividends for the period, consistent with the previous period[21].

Financial Performance - The company's revenue decreased by approximately 15.4% from HKD 58.9 million in the previous year to HKD 49.8 million for the year ended March 31, 2020[11]. - The company recorded a loss attributable to shareholders of approximately HKD 11.2 million for the year[11]. - The home goods export business revenue decreased by about 14.6% compared to the previous year due to declining consumer confidence and intense market competition[12]. - E-commerce revenue decreased by approximately 23.5% compared to the previous year, primarily due to a decline in sales on Amazon in the United States[13]. - The company reported a gross profit of HKD 12.85 million for the year ended March 31, 2020, down from HKD 17.54 million in the previous year[8]. - Gross profit fell by approximately 26.9% to about HKD 12.8 million, with a gross margin decrease from approximately 29.8% in 2019 to about 25.8% in the current year[23]. - The company recorded a loss attributable to owners of approximately HKD 11.2 million, an increase of about 60.0% compared to HKD 7.0 million in 2019, primarily due to increased market competition[27]. - The cost of sales decreased by approximately 10.9% to about HKD 36.9 million from HKD 41.4 million in 2019, aligning with the revenue decline[22]. - Selling and distribution expenses were reduced to about HKD 8.9 million, a decrease of approximately 23.9% from HKD 11.7 million in 2019 due to cost-cutting measures[24]. Assets and Liabilities - The total assets of the company as of March 31, 2020, were HKD 45.31 million, a decrease from HKD 55.04 million in the previous year[9]. - The total liabilities increased to HKD 5.70 million in 2020 from HKD 4.18 million in 2019[9]. - The company's cash and bank balances were approximately HKD 31.2 million, slightly down from HKD 31.3 million in 2019[29]. - The capital debt ratio was approximately 5.2% as of March 31, 2020, after applying the new Hong Kong Financial Reporting Standards[29]. Business Strategy and Future Plans - The company plans to focus on core business and develop proprietary brand products to achieve sustainable growth[11]. - The company aims to expand sales channels in China in the coming year[13]. - The company plans to focus on high-quality home products and explore new business opportunities for sustainable growth amid a challenging market environment[19]. - The company decided to terminate the establishment of contact offices in Europe and the United States due to adverse global economic conditions[11]. Corporate Governance - The company adheres to the principles of good corporate governance to enhance shareholder value[57]. - The board of directors is responsible for overseeing the group's business affairs and overall performance management[61]. - The company has adopted the corporate governance code as per GEM listing rules and has complied with all applicable provisions throughout the year[59]. - The board has established several committees to delegate responsibilities and ensure effective governance[61]. - The company has a standard code of conduct for directors regarding securities trading, ensuring compliance with GEM listing rules[60]. - The board consists of three independent non-executive directors, exceeding the GEM listing rules requirement of at least one-third[69]. - All independent non-executive directors confirmed their independence according to GEM listing rules, ensuring compliance[69]. - The board diversity policy was adopted on February 1, 2019, emphasizing the importance of diverse skills and experiences[78]. - The company believes that board diversity is key to maintaining competitive advantage and enhancing decision-making capabilities[78]. Risk Management - The group faces currency risk as most transactions, assets, and liabilities are denominated in HKD, RMB, GBP, and USD, with sales and procurement primarily settled in USD[34]. - The company has taken measures to ensure effective risk management and internal controls, with no significant risks identified during the annual review[108]. - The company has not established any foreign currency hedging policies but will closely monitor foreign exchange risks and consider hedging significant foreign currency risks when necessary[34]. - The company's risk management and internal control systems were deemed effective and sufficient by the board after an annual review[108]. Employment and Human Resources - As of March 31, 2020, the group employed a total of 31 full-time employees, down from 34 in 2019, with total employee benefits expenditure amounting to approximately HKD 8.5 million, a decrease from approximately HKD 9.3 million in 2019[33]. - The company plans to recruit additional staff, including two designers and two product engineers, as part of its ongoing development strategy[134]. Shareholder Information - The board does not recommend the payment of a final dividend for the year, consistent with the previous year[43]. - The company has adopted a dividend policy as of February 1, 2019, which outlines principles and guidelines for declaring dividends based on profitability and operational stability[83]. - The board plans to balance sufficient funds for business development and shareholder returns when considering dividend payments[84]. - The company does not have a predetermined dividend payout ratio, and past dividend distributions may not serve as a benchmark for future dividends[84]. Audit and Compliance - The audit committee has reviewed the consolidated financial statements for the year ending March 31, 2020, and found them compliant with applicable accounting standards and GEM listing rules[90]. - The independent auditor's report confirmed the company's responsibility for the consolidated financial statements for the year[107]. - The independent auditor, RSM Hong Kong, was paid HKD 700,000 for annual audit services in both 2020 and 2019[103]. Share Option Scheme - The share option plan allows the company to grant options to eligible participants as a reward for their contributions, with the plan approved by shareholders on September 22, 2017[159]. - The maximum number of shares available for subscription under the share option plan is capped at 10% of the total issued shares immediately following the completion of the share issuance, equating to 100,000,000 shares[165]. - The total number of shares that may be issued to any individual participant under the share option plan within any 12-month period is limited to 1% of the issued shares as of the grant date[167]. - The company must obtain independent non-executive directors' approval before granting stock options to directors, major executives, or major shareholders[169]. - Stock options granted must not exceed 0.1% of the issued shares or other percentages as stipulated by GEM listing rules, and the total value must not exceed HKD 5 million[171]. - The company cannot grant stock options during the one-month period prior to the announcement of financial results[173]. - The company has not granted or agreed to grant any options under the share option scheme as of March 31, 2020[191]. Operational Overview - The company operates primarily in the home goods sector, focusing on design, development, and production management in China and Hong Kong[124]. - The company has faced various risks, including competition in the home goods industry and potential changes in trade policies affecting supply chains due to the ongoing COVID-19 pandemic[125].

Financial Performance - The group's revenue for the period was approximately HKD 42.0 million, a decrease of about 11.2% from approximately HKD 47.3 million in the previous period[10]. - The gross profit decreased by approximately 23.1% to about HKD 11.3 million, with a gross margin decline from approximately 31.0% to about 26.9%[12]. - The net loss for the period increased to approximately HKD 5.8 million, compared to HKD 2.5 million in the previous period, primarily due to reduced sales orders from two major customers[17]. - Revenue for the nine months ended December 31, 2019, was HKD 41,975,000, a decrease of 11.7% compared to HKD 47,273,000 for the same period in 2018[37]. - Gross profit for the nine months ended December 31, 2019, was HKD 11,281,000, down 23.5% from HKD 14,656,000 in 2018[37]. - Operating loss for the nine months ended December 31, 2019, was HKD 5,719,000, compared to an operating loss of HKD 2,489,000 in the same period of 2018, representing a 129.5% increase in losses[37]. - Loss attributable to owners of the company for the nine months ended December 31, 2019, was HKD 5,765,000, compared to HKD 2,548,000 in 2018, indicating a 126.5% increase in losses[39]. - Total comprehensive loss for the nine months ended December 31, 2019, was HKD 5,781,000, compared to HKD 2,577,000 in 2018, reflecting a 124.5% increase in total comprehensive losses[39]. - Basic and diluted loss per share for the nine months ended December 31, 2019, was HKD 0.58, compared to HKD 0.25 for the same period in 2018[37]. Expenses and Cost Management - Sales and distribution expenses decreased by approximately 28.1% to about HKD 6.4 million, down from approximately HKD 8.9 million in the previous period[13]. - Administrative expenses increased by approximately 11.8% to about HKD 11.4 million, mainly due to additional depreciation of property, plant, and equipment[15]. - The company plans to implement cost and expenditure control measures to turn around its financial performance[8]. - Employee costs, including salaries and bonuses, decreased to HKD 5,932,000 for the nine months ended December 31, 2019, down 19.1% from HKD 7,345,000 in the same period of 2018[60]. - Depreciation expenses increased significantly to HKD 3,331,000 for the nine months ended December 31, 2019, compared to HKD 1,282,000 in the same period of 2018, representing a rise of 159.5%[60]. - Rental expenses to related parties amounted to HKD 1,149,000 for the nine months ended December 31, 2019, slightly down from HKD 1,254,000 in the same period of 2018[64]. Shareholder Information - As of December 31, 2019, Hearthfire Limited holds 611,250,000 shares, representing 61.125% of the company's total shares[26]. - Top Clay Limited and Ms. Shi hold 52,500,000 shares each, accounting for 5.25% of the total shares[26]. - Present Moment Limited holds 86,250,000 shares, which is 8.625% of the total shares[26]. - The company did not recommend the payment of any dividends for the period[20]. - The company did not recommend any dividend payment for the current period, consistent with the previous period[63]. Corporate Governance - The company has adopted a code of conduct for securities trading by directors, complying with GEM Listing Rules[24]. - The company has complied with all applicable provisions of the corporate governance code during the reporting period[23]. - There are no other individuals or entities with interests in the shares that require disclosure under the Securities and Futures Ordinance as of December 31, 2019[28]. - The roles of Chairman and CEO are currently held by the same individual, Mr. She, which the board believes enhances leadership consistency[23]. - The company has established an audit committee consisting of three independent non-executive directors to review accounting policies and quarterly reports[36]. Business Outlook and Strategy - New product lines, including aroma machines and small furniture, are set to be launched in the upcoming quarter[8]. - The company is optimistic yet cautious about the overall business outlook amid various uncertainties[9]. - The company operates primarily in the home goods trading, design, and e-commerce sectors[43]. Taxation and Financial Reporting - The tax expense for the period was approximately HKD 20,000, a decrease of about 50.0% from approximately HKD 40,000 in the previous period[16]. - The total income tax expense for the nine months ended December 31, 2019, was HKD 20,000, down from HKD 40,000 in the same period of 2018, reflecting a 50% decrease[54]. - The company has no taxable profits in China during the period, resulting in no corporate income tax being paid[58]. - The financial data is prepared in accordance with the GEM Listing Rules and Hong Kong Financial Reporting Standards[44]. - The company has not adopted any new or revised Hong Kong Financial Reporting Standards that would significantly impact the reported amounts in the unaudited condensed consolidated financial information[49]. Other Financial Information - Interest income increased to HKD 364,000 for the nine months ended December 31, 2019, compared to HKD 280,000 in the same period of 2018, representing a growth of 30%[49]. - The company reported a financing lease expense of HKD 26,000 for the nine months ended December 31, 2019, compared to HKD 19,000 in the same period of 2018, indicating a 36.8% increase[53]. - The company recorded a foreign exchange gain of HKD 5,000 for the nine months ended December 31, 2019, compared to a loss of HKD 1,146,000 in the same period of 2018[60]. - The company sold a vehicle to Mr. She for approximately HKD 48,000, based on market value[66]. - Non-current assets in Hong Kong as of December 31, 2019, were valued at HKD 533,000, a decrease from HKD 591,000 as of March 31, 2019[52]. - The company’s non-current assets in China were HKD 3,269,000 as of December 31, 2019, down from HKD 6,250,000 as of March 31, 2019, indicating a decline of 47.7%[52]. - The cost of home goods decreased to HKD 27,709,000 for the nine months ended December 31, 2019, down 7.4% from HKD 29,939,000 in the same period of 2018[60]. - The company recorded a short-term benefit expense of HKD 2,196,000 for the nine months ended December 31, 2019, an increase of 11.2% from HKD 1,975,000 in the same period of 2018[65]. - Revenue from major customers accounted for over 10% of total revenue, with Customer B contributing HKD 13,001,000 for the nine months ended December 31, 2019, up from HKD 9,188,000 in 2018, a growth of 41.5%[53].

Revenue and Profitability - The group's revenue for the period was approximately HKD 28.1 million, a slight increase of about 2.2% compared to approximately HKD 27.5 million in the previous period[12] - Gross profit decreased to approximately HKD 7.7 million, down about 8.3% from approximately HKD 8.4 million in the previous period, with the gross margin declining from about 30.5% to approximately 27.3%[14] - The group recorded a post-tax loss of approximately HKD 3.5 million, with a pre-tax loss of about HKD 1.4 million, consistent with the previous period[9] - The loss attributable to equity holders for the period was HKD 3,503,000, compared to HKD 1,437,000 in the previous year, reflecting a worsening financial position[61] - Basic and diluted loss per share was HKD 0.35, compared to HKD 0.14 in the prior year, indicating a higher loss per share[61] Expenses and Cost Management - Selling and distribution expenses decreased to approximately HKD 3.7 million, a reduction of about 24.5% from approximately HKD 4.9 million in the previous period[15] - Administrative and other operating expenses increased by approximately 42.9% to about HKD 8.0 million, primarily due to increased depreciation of property, plant, and equipment[16] - Tax expenses significantly decreased by about 96.5% to approximately HKD 2,000, compared to about HKD 57,000 in the previous period[17] - The company recorded a depreciation expense of HKD 2,228,000 for the six months ended September 30, 2019, compared to HKD 287,000 in the same period of 2018, reflecting a substantial increase in asset utilization[69] Market Position and Strategy - The group plans to enhance its market position by expanding product varieties and participating in the Ambiente Fair to showcase newly designed products[10] - The group aims to improve operational efficiency and strengthen cost control measures to enhance profitability in a challenging business environment[11] - The group faced challenges due to intensified market competition and uncertainties from US-China trade tensions and Brexit[9] Assets and Liabilities - As of September 30, 2019, the group's total assets were approximately HKD 51.9 million, down from HKD 55.0 million as of March 31, 2019, while net assets were approximately HKD 47.3 million, down from HKD 50.9 million[21] - The capital debt ratio as of September 30, 2019, was approximately 0.9%, compared to 1.0% as of March 31, 2019, indicating stability[21] - The group had bank deposits and cash balances totaling approximately HKD 31.1 million as of September 30, 2019, slightly down from HKD 31.5 million as of March 31, 2019[21] - Trade payables increased significantly to HKD 2,802,000 from HKD 914,000, indicating a rise in short-term liabilities[66] Employee and Operational Metrics - As of September 30, 2019, the group employed a total of 33 full-time employees, with employee benefit expenses amounting to approximately HKD 4.2 million, a decrease from HKD 4.8 million in the previous period[30] - Short-term employee benefits for the six months ended September 30, 2019, were HKD 1,464,000, an increase from HKD 1,366,000 in the same period of 2018[106] Cash Flow and Financing - Operating cash flow for the six months ended September 30, 2019, was a net outflow of HKD 371,000, a significant improvement from a net outflow of HKD 1,837,000 in the prior year[69] - The average effective borrowing rate for new finance lease agreements was 4.84645%, down from 5.44% in the previous period[101] Shareholder Information - The board does not recommend the payment of an interim dividend for the period, consistent with the previous period[41] - Major shareholders include Hearthfire Limited with approximately 61.125% ownership, and Present Moment Limited with 8.625% ownership as of September 30, 2019[48] Foreign Exchange and Risk Management - The group faces currency risk as most transactions, assets, and liabilities are denominated in HKD, RMB, GBP, and USD, with sales and purchases primarily settled in USD[31] - The group has not established a foreign currency hedging policy but monitors foreign exchange risks closely[31] Future Plans and Utilization of Proceeds - The net proceeds from the IPO were approximately HKD 31.3 million after deducting listing expenses of about HKD 23.7 million, slightly lower than the estimated proceeds of HKD 32.0 million[23] - As of September 30, 2019, the group had utilized approximately HKD 14.6 million of the net proceeds, with HKD 12.8 million remaining unutilized[25] - The company plans to enhance design and development capabilities, with an estimated allocation of HKD 4.8 million, of which HKD 4.7 million has been allocated, and HKD 4.0 million has been utilized[25] Inventory and Receivables - Inventory value increased to approximately HKD 1,897,000 as of September 30, 2019, from HKD 1,842,000 as of March 31, 2019, with a provision for obsolete inventory of about HKD 250,000[94] - Trade receivables decreased to HKD 10,191,000 as of September 30, 2019, from HKD 11,676,000 as of March 31, 2019[96]

Revenue and Growth - The group's revenue for the period was approximately HKD 14.6 million, an increase of about 27.0% compared to approximately HKD 11.5 million in the previous period[9] - Export business revenue increased by approximately 27.1%, primarily due to sales growth from three major customers[6] - E-commerce business revenue accounted for approximately 5.1% of total revenue, with a growth of about 27.3% compared to the previous period[6] - For the three months ended June 30, 2019, the company reported revenue of HKD 14,570,000, an increase of 27.4% compared to HKD 11,466,000 for the same period in 2018[38] - The sales of home goods contributed HKD 14,570,000 to the total revenue, while interest income was HKD 102,000, up from HKD 63,000 in the previous year[52] - The revenue from the UK decreased to HKD 4,441,000 from HKD 5,763,000 year-over-year, while revenue from Denmark increased significantly to HKD 2,831,000 from HKD 1,282,000[55] - Major customers contributed significantly to revenue, with Customer B generating HKD 5,339,000 in the current period, up from HKD 3,516,000 in the previous year[57] Profitability and Loss - Gross profit increased by approximately 8.8% to about HKD 3.7 million, while the gross profit margin decreased from approximately 29.2% to about 25.4%[12] - The group recorded a loss of approximately HKD 1.8 million for the period, compared to a loss of HKD 0.8 million in the previous period[17] - The operating loss for the three months was HKD 1,748,000, compared to an operating loss of HKD 840,000 in the previous year, indicating a deterioration in operational performance[38] - The loss attributable to owners of the company for the period was HKD 1,757,000, which translates to a loss per share of HKD 0.18, compared to a loss per share of HKD 0.08 in the prior year[38] - The company experienced a total comprehensive loss of HKD 863,000 for the three months ended June 30, 2018, and a loss of HKD 1,765,000 for the three months ended June 30, 2019[43] - The company reported a loss of HKD 1,757,000 for the period, compared to a loss of HKD 847,000 in the previous period[65] Expenses - Selling and distribution expenses remained stable at approximately HKD 1.8 million during the period[13] - Administrative expenses increased by approximately 50.0% to about HKD 3.9 million, mainly due to salary and allowance increases[14] - The cost of home goods increased to HKD 10,870,000, up from HKD 8,114,000 year-on-year, representing a 34.0% increase[62] - Employee costs, including salaries and bonuses, rose to HKD 2,022,000 from HKD 1,829,000, reflecting an increase of 10.6%[62] - The depreciation expense increased significantly to HKD 1,126,000 from HKD 154,000, marking a rise of 631.2%[62] - The rental expenses payable to Pan Hua Home Products (Shenzhen) Limited were HKD 402,000, slightly down from HKD 418,000 in the previous period[70] Shareholder Information - The company had total shareholders' equity of HKD 2,000,000 as of June 30, 2019[38] - Major shareholders include Hearthfire Limited with a 61.125% stake and Present Moment Limited with an 8.625% stake[25] - The company’s total equity as of June 30, 2019, was HKD 49,090,000, down from HKD 57,898,000 on April 1, 2018[43] Dividends and Taxation - The company does not recommend the payment of any dividends for the period, consistent with the previous period[19] - The estimated taxable profit for the group was subject to a Hong Kong profits tax rate of 16.5%[60] - The company has not incurred any corporate income tax in China due to no taxable profits generated in that region[61] Business Operations and Strategy - The group is focused on expanding its customer base and market share while enhancing cost control measures[8] - The company is developing a range of new products and has received inquiries from customers regarding these new offerings[6] - The company is primarily engaged in the trading, design, and e-commerce of home goods, with Hearthfire Limited as the ultimate controlling party[46] - The company did not engage in any purchase, sale, or redemption of its listed securities during the reporting period[35] - There were no significant new product launches or technological developments reported during this quarter[38] Financial Oversight - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and compliance[36] - The financial data is prepared in accordance with the applicable Hong Kong Financial Reporting Standards and has been reviewed by the company's audit committee[49] - No competitive interests were reported that could directly or indirectly affect the company's business operations[32]

Financial Performance - The company's revenue for the fiscal year ended March 31, 2019, decreased by approximately 13.3% to HKD 58.9 million, down from HKD 67.9 million in 2018[10] - The company recorded a loss attributable to shareholders of approximately HKD 7.0 million for the fiscal year 2019[10] - The operating loss for the fiscal year 2019 was HKD 6.571 million, compared to an operating profit of HKD 11.268 million in 2016[10] - The company's gross profit for the fiscal year 2019 was HKD 17.538 million, down from HKD 23.965 million in 2018[10] - The gross profit decreased by approximately 27.1% to about HKD 17.5 million, with a gross margin dropping from approximately 35.3% to about 29.8% due to competitive pricing pressures[24] - The group recorded a loss attributable to the owners of the company of approximately HKD 7.0 million, compared to a profit of about HKD 8.6 million in the previous year after excluding one-time listing expenses[28] - The sales cost decreased by approximately 5.9% to about HKD 41.4 million, aligning with the revenue decline[23] Assets and Liabilities - Total assets as of March 31, 2019, amounted to HKD 55.036 million, a decrease from HKD 61.519 million in 2018[11] - Total liabilities increased to HKD 4.181 million in 2019 from HKD 3.621 million in 2018[11] - The company’s total equity as of March 31, 2019, was HKD 50.855 million, down from HKD 57.898 million in 2018[11] - As of March 31, 2019, the group's cash and bank balance was approximately HKD 31.3 million, down from HKD 41.6 million in 2018[30] - The total assets of the group as of March 31, 2019, were approximately HKD 55.0 million, compared to HKD 61.5 million in 2018, while net assets were approximately HKD 50.9 million, down from HKD 57.9 million[30] Expenses - Sales and distribution expenses increased to approximately HKD 11.7 million, a rise of about 74.6% from HKD 6.7 million in the previous year, primarily due to increased marketing team size and promotional expenses[25] - Administrative and other operating expenses increased by approximately 77.6% to about HKD 15.1 million, mainly due to the expansion of the management team and increased e-commerce operational costs[26] - The company’s financing costs for the fiscal year 2019 were HKD 25, a decrease from HKD 74 in 2018[10] - The total employee benefit expenses, including remuneration for executive directors, amounted to approximately HKD 9.3 million for the year, an increase from HKD 5.8 million in 2018[33] Corporate Governance - The company emphasizes good corporate governance to enhance shareholder value[57] - The board of directors is responsible for overseeing the group's business affairs and overall performance management, ensuring necessary financial and human resources are in place to achieve the group's objectives[61] - The company has adopted the corporate governance code as per GEM listing rules, ensuring compliance with all applicable provisions throughout the year[59] - The board consists of a balanced mix of executive and independent non-executive directors, with independent directors making up 50% of the board, exceeding the GEM listing requirement[69] - The company provides ongoing professional development for directors, ensuring they understand their responsibilities and the regulatory environment[71] - The board has established various committees, including audit, remuneration, nomination, and risk management, to delegate specific responsibilities[61] Shareholder Information - The board did not recommend the payment of a final dividend for the year, consistent with the previous year[43] - The company has established a dividend policy, considering the balance between maintaining sufficient funds for business development and returning value to shareholders[82] - The board will continuously review the dividend policy and retains the absolute discretion to update or cancel it at any time[84] - The company has a distributable reserve of HKD 14.6 million as of March 31, 2019, down from HKD 22.6 million in 2018[136] E-commerce and Market Expansion - The launch of the company's own online sales platform aimed to increase sales channels[12] - The e-commerce segment recorded a revenue growth of approximately 43.5% compared to the previous fiscal year, contributing about 11.4% to total revenue, up from 6.9%[15][20] - The group actively participated in major trade shows to expand its customer base, including events in Las Vegas, Paris, and Frankfurt[21] - The company plans to closely monitor the impact of the US-China trade war on its business plans, particularly regarding the establishment of liaison offices in Europe and the US[133] Risk Management - The company has appointed an external independent consultant to review the effectiveness and adequacy of its risk management and internal control systems for the year[111] - The company has confirmed the effectiveness and adequacy of its existing risk management and internal control systems following an annual review by the board[111] Stock Options and Remuneration - The company has established a remuneration committee to review the remuneration policy for directors and senior management based on operational performance and market standards[159] - The share option scheme was adopted to incentivize directors and eligible employees, as approved by shareholders on September 22, 2017[160] - The maximum number of shares available for subscription under the share option scheme is capped at 10% of the total issued shares post-completion of the share issuance, equating to 100,000,000 shares[166] - The total remuneration for the independent auditor, Roshan Mei CPA, for the year 2019 was HKD 700,000, compared to HKD 2,215,000 in 2018, indicating a decrease of approximately 68.4%[106] Operational Developments - The company achieved significant milestones, including the renovation of the Shenzhen exhibition hall and the establishment of a quality control laboratory[12] - The quality control laboratory commenced operations, enhancing product quality assurance and the development of new production technologies[21] - The company has allocated HKD 4.0 million for enhancing design and development capabilities, with HKD 0.7 million utilized in the current year[132] - The company has strengthened its quality assurance capabilities with HKD 4.7 million allocated, of which HKD 4.1 million has been utilized[132] - The company aims to enhance brand recognition and reputation, with HKD 6.3 million allocated and HKD 2.9 million utilized[132] Employee Information - The group employed a total of 34 full-time employees as of March 31, 2019, an increase from 30 employees in 2018[33]

Financial Performance - The company's revenue for the nine months ended December 31, 2018, was approximately HKD 47.3 million, a decrease of about 17.6% compared to HKD 57.4 million for the same period in 2017[12] - The cost of sales decreased by approximately 17.9% to about HKD 32.6 million from HKD 39.7 million in the same period of 2017, aligning with the revenue decline[13] - Gross profit fell by approximately 16.9% to about HKD 14.7 million, with a slight increase in gross margin from 30.8% to approximately 31.0%[15] - The company recorded a loss of approximately HKD 2.5 million for the period, compared to a loss of HKD 8.1 million in the same period of 2017, with adjusted profit in 2017 being approximately HKD 5.4 million[20] - Revenue for the nine months ended December 31, 2018, was HKD 47,273,000, a decrease of 17.5% compared to HKD 57,401,000 for the same period in 2017[38] - Gross profit for the nine months ended December 31, 2018, was HKD 14,656,000, down 17.0% from HKD 17,658,000 in 2017[38] - Operating loss for the nine months ended December 31, 2018, was HKD 2,489,000, an improvement from a loss of HKD 6,953,000 in the same period of 2017[38] - Loss before tax for the nine months ended December 31, 2018, was HKD 2,508,000, compared to a loss of HKD 7,020,000 in 2017, indicating a 64.3% reduction in losses[38] - Net loss for the nine months ended December 31, 2018, was HKD 2,548,000, significantly lower than HKD 8,133,000 in the previous year, representing a 68.7% decrease[40] - Basic and diluted loss per share for the nine months ended December 31, 2018, was HKD 0.25, compared to HKD 0.81 for the same period in 2017[38] - Total comprehensive loss for the nine months ended December 31, 2018, was HKD 2,577,000, compared to HKD 8,121,000 in 2017, reflecting a 68.3% improvement[40] - The company reported other income and net gains of HKD 1,971,000 for the nine months ended December 31, 2018, compared to HKD 831,000 in 2017, marking a 137.5% increase[38] - Sales and distribution expenses increased to HKD 8,928,000 for the nine months ended December 31, 2018, from HKD 5,384,000 in 2017, a rise of 65.5%[38] - Administrative and other operating expenses decreased to HKD 10,188,000 for the nine months ended December 31, 2018, from HKD 20,058,000 in 2017, a reduction of 49.3%[38] - Home goods sales contributed HKD 47,273,000 to total revenue, down from HKD 57,401,000 year-over-year[50] - Interest income increased significantly to HKD 280,000 from HKD 22,000 in the previous year, marking a growth of 1,172.7%[50] - Revenue from the UK market was HKD 15,893,000, a decline of 22.7% from HKD 20,507,000 in the prior year[53] - The company reported a net loss of approximately HKD 2,548,000 for the nine months ended December 31, 2018, compared to a loss of HKD 8,133,000 for the same period in 2017[62] - Basic loss per share for the nine months was approximately HKD 0.002548, compared to HKD 0.008133 in the previous year[62] - The company recorded a foreign exchange gain of HKD 1,146,000 for the nine months, compared to no gain in the previous year[50] - Major customers contributed significantly to revenue, with Customer A generating HKD 9,384,000, down from HKD 11,977,000 in the previous year[55] - Financing costs decreased to HKD 19,000 for the nine months, down from HKD 67,000 in the previous year[56] - No potential dilutive ordinary shares were issued, thus diluted loss per share is the same as basic loss per share for the periods ended December 31, 2017, and December 31, 2018[63] Expenses and Costs - Selling and distribution expenses increased by approximately 64.8% to about HKD 8.9 million, primarily due to an increase in the marketing team's size and associated costs[16] - Administrative expenses rose by approximately 54.5% to about HKD 10.2 million, attributed to the expansion of the management team and increased ongoing company expenses post-listing[17] - Rental expenses payable to Pan Hua Home Products (Shenzhen) Limited amounted to HKD 1,254,000 for the nine months ended December 31, 2018, compared to HKD 971,000 for the same period in 2017, reflecting a 29.2% increase[65] - Short-term employee benefits for directors and key management personnel totaled HKD 1,975,000 for the nine months ended December 31, 2018, up from HKD 912,000 in 2017, representing a 117.5% increase[65] Corporate Governance - The company does not recommend the payment of any dividends for the period, considering overall operational performance and financial condition[22] - The company has adopted a code of conduct for directors' securities trading, ensuring compliance with GEM Listing Rules[25] - The audit committee, consisting of three independent non-executive directors, has reviewed the accounting standards and policies for the nine months ending December 31, 2018[35] - The company has complied with the corporate governance code as per GEM Listing Rules during the reporting period[24] - The compliance advisor has confirmed no interests related to the company that require disclosure under GEM Listing Rules[33] Strategic Initiatives - The company plans to expand its customer base and seek diversification opportunities to achieve long-term sustainable development amid ongoing challenges from the US-China trade war and competitive pressures in the European market[11] - The e-commerce team is expanding product categories to increase market share in the rapidly growing online distribution channels in Europe and the US[11] - The company actively participated in international trade shows to broaden its customer base and enhance brand awareness[8] Shareholding and Management - Major shareholder Hearthfire Limited holds 611,250,000 shares, representing 61.125% of the total shares[27] - Present Moment Limited, owned by executive director Ms. Chen, holds 86,250,000 shares, representing 8.625% of the total shares[30] - The chairman and CEO roles are currently held by the same individual, Mr. She, which the board believes enhances strategic planning and decision-making efficiency[24] - The company is committed to reviewing the separation of the chairman and CEO roles in the future based on operational needs and efficiency[24] - The board is not aware of any business or interests that directly or indirectly compete with the group's business as of December 31, 2018[32]