Financial Performance - The group's revenue for the six months ended September 30, 2024, was approximately HKD 30.2 million, a decrease of about HKD 4.6 million or 13.2% compared to HKD 34.8 million for the same period in 2023[5] - The net loss for the group for the six months ended September 30, 2024, was approximately HKD 1.5 million, significantly improved from a net loss of HKD 12.8 million for the same period in 2023[5] - Total comprehensive expenses for the group for the six months ended September 30, 2024, were approximately HKD 1.5 million, down from HKD 12.8 million for the same period in 2023[5] - Gross profit for the six months ended September 30, 2024, was HKD 19.6 million, compared to HKD 23.4 million for the same period in 2023[9] - The company reported a basic and diluted loss per share of HKD 0.09 for the six months ended September 30, 2024, compared to HKD 0.81 for the same period in 2023[8] - The basic loss per share for the six months ended September 30, 2024, was HKD (0.09), compared to HKD (0.81) for the same period in 2023, indicating a reduction in losses[31] - The company's revenue decreased from approximately HKD 34.8 million to about HKD 30.2 million, a decline of approximately 13.2% due to reduced sales of furniture and home accessories and decreased commission income[49] Assets and Liabilities - The total assets as of September 30, 2024, were approximately HKD 92.5 million, an increase from HKD 90.8 million as of March 31, 2024[11] - The net asset value as of September 30, 2024, was HKD 33.8 million, down from HKD 35.3 million as of March 31, 2024[12] - Non-current assets as of September 30, 2024, totaled HKD 16.3 million, compared to HKD 15.9 million as of March 31, 2024[11] - The net amount of trade receivables was HKD 21,812 thousand as of September 30, 2024, compared to HKD 39,891 thousand as of March 31, 2024, indicating a significant decrease[39] - The net amount of loans receivable increased from HKD 14,808 thousand to HKD 22,160 thousand, reflecting a growth of approximately 49.5%[36] Cash Flow - The net cash used in operating activities for the six months ended September 30, 2024, was HKD (3,142) thousand, a significant improvement from HKD (16,152) thousand in the same period of 2023[16] - The net cash and cash equivalents decreased to HKD 1,798 thousand as of September 30, 2024, from HKD 3,190 thousand a year earlier[16] - The group incurred financing activities cash outflow of HKD (6,553) thousand, contrasting with cash inflow of HKD 14,944 thousand in the previous year[16] - The group’s cash flow from investing activities was HKD (699) thousand, a decrease from HKD (5,081) thousand in the same period last year[16] Revenue Sources - Revenue from furniture and home decor sales was HKD 26,482 thousand, a decline of 10.6% compared to HKD 29,458 thousand in the previous year[25] - The group reported a total of HKD 7,257 thousand in other income, which is an increase from HKD 3,631 thousand in the same period last year[27] - Other income increased from approximately HKD 3.6 million to about HKD 7.3 million, an increase of approximately 99.9%, mainly due to revenue from software and IT services provided by Hefei Qijia and its subsidiaries[52] - Direct sales revenue was approximately HKD 26.0 million for the six months ended September 30, 2024, down about 10.1% from approximately HKD 28.9 million for the same period in 2023[68] - Commission income decreased from approximately HKD 3.5 million for the six months ended September 30, 2023, to approximately HKD 0.8 million for the same period in 2024[72] - Distribution and licensing fee income was approximately HKD 1.0 million for the six months ended September 30, 2024, compared to none for the same period in 2023[70] Expenses - The cost of sales fell from approximately HKD 11.4 million to about HKD 10.6 million, a decrease of approximately 6.9% primarily due to lower sales of furniture and home accessories[50] - Sales and marketing expenses decreased from approximately HKD 15.7 million to about HKD 13.8 million, a decline of approximately 11.7% due to reduced employee salaries and depreciation expenses[54] - Administrative expenses increased by approximately 12.8% to about HKD 13.0 million for the six months ended September 30, 2024, compared to approximately HKD 11.5 million for the same period in 2023[55] Dividends and Share Options - The board of directors did not recommend the payment of an interim dividend for the six months ended September 30, 2024[5] - The company does not recommend the payment of an interim dividend for the relevant period[96] - The company has not granted any share options under the share option scheme during the relevant period[98] Strategic Developments - The group established a new wholly foreign-owned enterprise in Hefei, China, in January 2024, primarily engaged in software and IT services[63] - The group acquired Hefei Non-Human Visual Technology Co., Ltd. in March 2024, which also focuses on software and IT services[63] - The company aims to enhance its revenue sources through integration and investment while exploring new opportunities[76] - Consumer loan services provided by 易华 and software and IT services from 合肥齐家 contributed positively to the group's profits for the six months ending September 30, 2024[76] - The company operates two TREE retail stores and a commercial retail platform in Hong Kong, focusing on these areas for future growth[76] Market Outlook - The retail sales in Hong Kong are projected to decline by 6% in 2024 due to ongoing economic challenges and competitive market conditions[76] - The company anticipates that lower interest rates and government policies aimed at boosting the local economy will improve consumer confidence and retail conditions by 2025[76] Compliance and Review - The audit committee has reviewed the unaudited consolidated financial statements for the relevant period[101]

Financial Performance - The group's revenue for the six months ended September 30, 2024, was approximately HKD 30.2 million, a decrease of about HKD 4.6 million or 13.2% compared to HKD 34.8 million for the same period in 2023[6]. - The net loss for the group for the six months ended September 30, 2024, was approximately HKD 1.5 million, significantly improved from a net loss of HKD 12.8 million for the same period in 2023[6]. - Total comprehensive expenses for the group for the six months ended September 30, 2024, were approximately HKD 1.5 million, down from HKD 12.8 million for the same period in 2023[6]. - The group's gross profit for the six months ended September 30, 2024, was HKD 19.6 million, compared to HKD 23.4 million for the same period in 2023[10]. - The group reported a basic and diluted loss per share of HKD 0.09 for the six months ended September 30, 2024, compared to HKD 0.81 for the same period in 2023[9]. - The total equity as of September 30, 2024, was HKD 33,796,000, down from HKD 39,950,000 as of September 30, 2023, reflecting a decrease of 15.4%[15]. - The company incurred a loss of HKD (1,455,000) during the period, compared to a loss of HKD (12,760,000) in the same period last year, showing a significant reduction in losses[15]. - Total revenue for the period was approximately HKD 30.2 million, down about 13.2% from approximately HKD 34.8 million for the six months ended September 30, 2023[66]. - Furniture and home decor sales decreased to approximately HKD 26.5 million, down from HKD 29.5 million, representing a decline of about 10.1%[68]. Assets and Liabilities - The group's total assets as of September 30, 2024, were approximately HKD 92.5 million, an increase from HKD 90.8 million as of March 31, 2024[12]. - The group's net assets as of September 30, 2024, were approximately HKD 33.8 million, down from HKD 35.3 million as of March 31, 2024[13]. - Non-current assets decreased to HKD 16.3 million as of September 30, 2024, from HKD 15.9 million as of March 31, 2024[12]. - Current liabilities increased to HKD 72.8 million as of September 30, 2024, compared to HKD 66.8 million as of March 31, 2024[12]. - Trade receivables from third parties amounted to HKD 21.865 million as of September 30, 2024, down from HKD 40.029 million as of March 31, 2024[36]. - The net amount of trade receivables was HKD 21.812 million as of September 30, 2024, compared to HKD 39.891 million as of March 31, 2024[36]. - The company’s receivables from loans increased to HKD 22.160 million as of September 30, 2024, compared to HKD 14.597 million as of March 31, 2024[43]. - The company’s trade payables decreased from HKD 18.583 million as of March 31, 2024, to HKD 2.829 million as of September 30, 2024[44]. Cash Flow and Income - The company reported a net cash outflow from operating activities of HKD (3,142,000) for the six months ended September 30, 2024, compared to HKD (16,152,000) in the previous year, indicating an improvement[17]. - Cash and cash equivalents decreased to HKD 1,798,000 as of September 30, 2024, from HKD 3,190,000 a year earlier, representing a decline of 43.7%[17]. - Other income increased to HKD 7,257,000 for the six months ended September 30, 2024, compared to HKD 3,631,000 in the previous year, marking an increase of 100.5%[28]. - The company generated HKD 999,000 from distribution and licensing fees, which was not reported in the previous year[26]. - The company recognized a tax expense of HKD 871,000 for the period, with HKD 777,000 attributed to operations in China[29]. - Distribution and licensing fee income was approximately HKD 1.0 million, compared to none for the six months ended September 30, 2023[71]. - Rental income for the period was approximately HKD 26,000, compared to zero for the same period last year[74]. Operational Highlights - The company established a new wholly foreign-owned enterprise in Hefei to engage in software and IT services, and acquired Hefei Unmanned Vision Technology Co., Ltd. in March 2024[64]. - The group reported positive profits from consumer loan services provided by Yihua and software and IT services from Hefei Qijia for the six months ending September 30, 2024[77]. - The company will continue to focus on its two TREE retail stores and its commercial retail platform in Hong Kong[77]. - The group plans to enhance its current revenue sources through integration and investment while exploring new opportunities[77]. Shareholder Information - The company's major shareholder, Yu Ding, holds 47.09% of the company's shares, fully owned by Mr. Tang[85]. - Ms. Cen holds a spouse interest in 50.99% of the company's shares, reflecting significant ownership concentration[84]. Corporate Governance - The company has maintained compliance with the corporate governance code, except for the separation of roles between the chairman and CEO[94]. - The board is composed of experienced members and meets regularly to discuss operational matters, ensuring a balance of power[94]. - The audit committee consists of independent non-executive directors, ensuring oversight of financial reporting and risk management[101]. - The company has established a written terms of reference for the audit committee, outlining its main responsibilities[101]. - The company has adopted a share option scheme to reward contributions and attract high-quality talent, compliant with GEM Listing Rules[98]. - No share options were granted under the share option scheme during the reporting period[99]. - The audit committee has reviewed the unaudited consolidated financial statements for the reporting period[101]. Sustainability Initiatives - The company has planted over 100,000 trees through its partnership with Trees 4 Trees in Indonesia, highlighting its commitment to sustainability[75]. - The company has received low carbon care labels for three consecutive years, demonstrating its commitment to ESG initiatives[75]. Dividend Policy - The board does not recommend the payment of an interim dividend for the six months ended September 30, 2024[6]. - The company did not recommend the payment of an interim dividend for the period, consistent with the previous year[35].

Revenue Performance - For FY2024, the company's total revenue was approximately HK$65.0 million, a decrease of about HK$13.2 million or 16.9% from approximately HK$78.2 million in FY2023, primarily due to declines in furniture and home accessories sales as well as commission income [24]. - Revenue from direct sales for FY2024 was approximately HK$56.3 million, representing a decrease of approximately HK$11.9 million or 17.4% from approximately HK$68.2 million in FY2023 [13]. - Commission income for FY2024 was approximately HK$3.8 million, a decrease of approximately HK$1.5 million or 27.5% from approximately HK$5.3 million in FY2023, mainly due to a drop in retail sales affected by poor economic sentiment in Mainland China [13]. - Revenue from distribution sales amounted to approximately HK$1.1 million for FY2024, a decrease of approximately HK$0.1 million or 6.9% from approximately HK$1.2 million in FY2023 [13]. - The revenue from commission income decreased significantly, contributing to the overall revenue decline [31]. - The Group's revenue from distribution sales increased to approximately 47.4% for FY2024 from approximately 44.8% for FY2023 [37]. - The Group's revenue decreased from approximately HK$78.2 million in FY2023 to approximately HK$65.0 million in FY2024, a decline of about 16.9% due to reduced sales in furniture and home accessories as well as decreased commission income [183]. Profitability and Loss - The overall gross profit margin of the Group decreased from approximately 66.0% to 64.4% [36]. - The Group recorded a loss for the year attributable to equity holders of approximately HK$8.6 million, after a negative impairment of goodwill of approximately HK$8.7 million [36]. - The overall gross profit decreased to approximately HK$41.9 million for FY2024 from approximately HK$51.6 million for FY2023, representing a decline of about 19.5% [49]. - The gross profit margin for the sale of furniture and home accessories dropped to approximately 61.9% for FY2024 from approximately 63.7% for FY2023 [37]. - The Group recorded a loss of approximately HK$17.3 million for FY2024 compared to a loss of approximately HK$10.0 million in FY2023 [190]. - The provision for impairment of goodwill was approximately HK$8.7 million as of 31 March 2024, down from approximately HK$14.7 million in FY2023 [187]. Economic Impact - The overall economic conditions in Mainland China have significantly impacted the company's sales performance, particularly in the retail sector [13]. - The retail business in Hong Kong is facing challenges due to a significant downturn in the property and retail markets [36]. Strategic Focus and Future Plans - The company is focused on expanding its market presence and enhancing its product offerings to recover from the revenue declines experienced in FY2024 [24]. - The company plans to leverage the recovery from COVID-19 restrictions to boost its food and beverage segment moving forward [13]. - Future strategies may include exploring new product lines and enhancing online sales channels to adapt to changing consumer behaviors [24]. - The management is considering options to minimize losses and improve financial results in the retail sector [54]. - The Group is investing more resources into online business operations to adapt to changing market conditions [57]. - The Group's strategic focus includes innovative strategies to optimize costs and enhance operational efficiency [57]. Board and Governance - The Board has achieved its diversity targets during FY2024, comprising eight directors, including three independent non-executive directors and one female member [72]. - The Audit Committee held four meetings during FY2024, reviewing the Company's consolidated financial results and recommending the re-appointment of Grant Thornton as the external auditor [79]. - The Company aims to maintain at least 20% of the Board members as Executive Directors, along with a minimum of one female member [72]. - The Audit Committee is responsible for overseeing financial reporting, internal control, and risk management systems [77]. - The Company has established three Board committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of its affairs [74]. - The Board Diversity Policy emphasizes the importance of diverse perspectives in supporting the execution of the Company's business strategy [72]. Financial Reporting and Accounting Policies - The consolidated financial statements include the financial results of the Company and its subsidiaries up to March 31 each year [92]. - The Group eliminates intra-group transactions, balances, and unrealized gains and losses in preparing consolidated financial statements [94]. - The Group's financial reporting date is set at March 31, 2024, for the fiscal year [2][104]. - For the year ended March 31, 2024, the Group's financial statements were audited by Grant Thornton, which provided both audit and non-audit services [117]. - The Group measures the loss allowance for loan receivables and other receivables equal to 12-month expected credit loss (ECL), unless there has been a significant increase in credit risk since initial recognition, in which case lifetime ECL is recognized [110]. - The Group recognizes revenue from furniture sales at the point of delivery when control is transferred to customers [139]. - The Group follows a 5-step process for revenue recognition, ensuring compliance with accounting standards [139]. Expenses and Costs - Selling and marketing expenses amounted to approximately HK$30.4 million for FY2024, representing a decrease of approximately HK$1.7 million or about 5.3% from approximately HK$32.1 million in FY2023 [184]. - Finance costs increased by approximately HK$0.9 million or 109.4% from approximately HK$0.8 million in FY2023 to approximately HK$1.7 million in FY2024, primarily due to increased bank borrowings and effective interest rates [187]. - The Group's administrative expenses included various costs such as staff costs, professional fees, and depreciation, although specific figures were not provided in the extracted content [186].

Financial Performance - For FY2024, revenue from direct sales was approximately HK$56.3 million, a decrease of approximately HK$11.9 million or 17.4% from FY2023's HK$68.2 million[3]. - Revenue from distribution sales amounted to approximately HK$1.1 million, down by approximately HK$0.1 million or 6.9% from FY2023's HK$1.2 million[3]. - Food and beverage income from operating TREE Café was approximately HK$3.7 million for FY2024, an increase of approximately HK$0.3 million or 8.4% from FY2023's HK$3.4 million[3]. - Commission income was approximately HK$3.8 million for FY2024, a decrease of approximately HK$1.5 million or 27.5% from FY2023's HK$5.3 million[3]. - The Group's total revenue decreased from approximately HK$78.2 million in FY2023 to approximately HK$65.0 million in FY2024, a decline of approximately 16.9%[6]. - The Group recorded a loss of approximately HK$17.3 million for FY2024, compared to a loss of approximately HK$10.0 million in FY2023[14]. Assets and Liabilities - Trade receivables increased to approximately HK$39.9 million as of March 31, 2024, from HK$29.8 million in 2023, an increase of approximately HK$10.1 million[13]. - Other receivables rose to approximately HK$11.9 million in FY2024 from HK$8.9 million in FY2023, an increase of approximately HK$3.0 million[13]. - Loan receivables increased to approximately HK$14.6 million as of March 31, 2024, from HK$10.5 million in 2023[13]. - As of March 31, 2024, the Group's total assets were approximately HK$106.8 million, with total liabilities of approximately HK$71.5 million and shareholders' equity of approximately HK$35.3 million[18]. - The current ratio decreased to approximately 1.4 as of March 31, 2024, compared to approximately 1.8 as of March 31, 2023[18]. - The gearing ratio increased significantly to approximately 93.1% as of March 31, 2024, from approximately 36.7% as of March 31, 2023[18]. Cash Flow and Financing - As of March 31, 2024, the Group's bank balance and cash amounted to approximately HK$12.2 million, an increase from HK$9.5 million in 2023[17]. - The Group's trade payables as of March 31, 2024, were approximately HK$18.6 million, up from HK$11.8 million in 2023[17]. - Other payables increased to approximately HK$13.1 million in 2024 from HK$9.9 million in 2023, primarily due to an increase in accrued charges[17]. - Bank borrowings increased significantly to approximately HK$20.3 million in 2024 from HK$6.5 million in 2023[17]. - Lease liabilities decreased slightly to approximately HK$12.5 million in 2024 from HK$12.9 million in 2023, due to fewer renewed leases[17]. Corporate Governance - The Group is committed to achieving high standards of corporate governance to maintain shareholder trust and create long-term value[39]. - The Group recognizes the importance of good corporate governance in management and internal procedures for effective accountability[40]. - The Board is responsible for overseeing the management of the business affairs and overall performance of the Group, ensuring necessary financial and human resources are in place[47]. - The Board has established various committees to delegate responsibilities, which are published on the respective websites of GEM and the Company[47]. - The Audit Committee held four meetings during FY2024 to review the Company's consolidated financial results and compliance with the CG Code[82]. Risk Management - The Group faces operational risks, including competition in a fragmented market and dependency on changing customer preferences[20]. - The risk of failure in expanding the sales network in Hong Kong may adversely affect operations and results[20]. - The Group faces various financial risks, including credit risk, liquidity risk, and interest rate risk[22]. Employee and Compensation - The Group's compensation policy is based on individual employee performance, qualifications, experience, and the Group's performance and market conditions[23]. - As of March 31, 2024, the Group had a total of 79 employees, with total staff costs approximately HK$25.8 million for FY2024, down from approximately HK$27.9 million in FY2023[48]. Shareholder Communication and Dividends - The Company is committed to providing a balanced and comprehensive assessment of the Group's performance and prospects in accordance with GEM Listing Rules[92]. - The Company's dividend policy aims to allow shareholders to participate in profits while retaining adequate reserves for future growth[127]. - The Board will continually review the dividend policy and reserves the right to amend or cancel it at any time[127]. - The Company has a communication policy to provide shareholders with timely access to balanced information[123]. Share Option Scheme - A Share Option Scheme was adopted on January 5, 2018, to incentivize and retain high-caliber employees[132]. - The maximum number of shares that may be issued upon exercise of all outstanding options under the Share Option Scheme shall not exceed 30% of the issued share capital[133]. - Each eligible participant under the Share Option Scheme may receive options not exceeding 1% of the issued share capital in any 12-month period[178]. Recent Developments - Hefei Qijia, a wholly-owned subsidiary, was established in January 2024, and the acquisition of Hefei Human Vision was completed in March 2024 for HK$300,000[19]. - The company operates two "TREE" retail stores in Hong Kong and commenced online sales in May 2019[173]. - In December 2018, the company acquired Italiving, which provides furniture agency services in Hong Kong[173]. - In January 2022, the company acquired Super Easy, which is engaged in consumer loan services[173].

智通财经APP讯，齐家控股(08395)发布公告，谢子谦已辞任公司的公司秘书及不再担任公司根据香港联 合交易所有限公司GEM证券上市规则第5.24条规定的授权代表，自2024年1月1日起生效。 林耀祖已获委任为公司秘书及授权代表，自2024年1月1日起生效。 董事会欣然宣布，集团与明大企业服务有限公司订立企业秘书支援服务协议(公司秘书协议)，明大企业 服务有限公司同意向公司提供公司秘书服务，由2024年1月1日起为期两年。年度专业服务费为6万港 元，专业服务费须每月支付，乃经参考当前市价水平后公平磋商厘定。 ...

Assets - As of September 30, 2023, property, plant, and equipment amounted to HKD 14.18 million, an increase from HKD 13.81 million as of March 31, 2023[5] - Non-current assets totaled HKD 26.33 million, up from HKD 25.24 million[5] Liabilities - Current liabilities increased to HKD 56.41 million from HKD 43.43 million[5] - Lease liabilities decreased to HKD 7.11 million from HKD 8.20 million[5] Current Assets - Net current assets were HKD 18.57 million, down from HKD 31.13 million[5] Property, Plant, and Equipment - The increase in property, plant, and equipment is attributed to lease renewals during the six months ended September 30, 2023[10]

Financial Performance - The group's revenue for the six months ended September 30, 2023, was approximately HKD 34.8 million, a decrease of about HKD 8.1 million or 18.8% compared to the same period in 2022[5]. - The net loss for the group for the six months ended September 30, 2023, was approximately HKD 12.8 million, compared to a net profit of approximately HKD 0.5 million for the same period in 2022[5]. - Total comprehensive expenses for the group for the six months ended September 30, 2023, were approximately HKD 12.8 million, while total comprehensive income for the same period in 2022 was approximately HKD 0.5 million[5]. - The basic and diluted loss per share for the period was HKD (0.81), compared to earnings of HKD 0.03 per share for the same period in 2022[15]. - The company reported a loss of HKD 12,760,000 for the six months ended September 30, 2023, compared to a profit of HKD 500,000 for the same period in 2022[27]. - Revenue decreased by approximately 18.7% from HKD 42,743,000 in 2022 to HKD 34,778,000 in 2023, primarily due to a decline in furniture and home decor sales[27]. - Gross profit decreased by about 17.1% from HKD 28,200,000 to HKD 23,400,000, while the gross margin improved from 65.9% to 67.3%[41]. - The company recorded a net loss of approximately HKD 12.8 million for the six months ended September 30, 2023, compared to a profit of approximately HKD 0.5 million for the same period in 2022[72]. Dividend and Shareholder Information - The board of directors does not recommend the payment of an interim dividend for the six months ended September 30, 2023[5]. - The company did not recommend the payment of an interim dividend for the period[33]. - The company has not granted any share options under the share option scheme as of the report date[120]. - The company has adopted a share option scheme to reward eligible participants for their contributions and to attract and retain high-quality employees, compliant with GEM Listing Rules[136]. - The company’s major shareholder, Yuting, holds 47.09% of the company's shares, fully owned by the chairman and CEO, Mr. Tang[124]. - As of September 30, 2023, Rothley Investment Limited holds a 3.75% stake in the company, fully owned by Ms. Babington[81]. Assets and Liabilities - The group's total assets as of September 30, 2023, were approximately HKD 74.981 million, compared to HKD 74.554 million as of March 31, 2023[16]. - The group's net current assets as of September 30, 2023, were approximately HKD 5.825 million, a decrease from HKD 31.126 million as of March 31, 2023[16]. - Non-current liabilities, specifically lease liabilities, increased to HKD 5.991 million as of September 30, 2023, from HKD 4.684 million as of March 31, 2023[9]. - The group's equity as of September 30, 2023, was approximately HKD 38.916 million, down from HKD 51.679 million as of March 31, 2023[9]. - The company’s cash flow management remains strict, with no overdue or impaired amounts in other receivables as of September 30, 2023[37]. - Trade payables increased to HKD 12,053,000 as of September 30, 2023, compared to HKD 11,796,000 as of March 31, 2023[38]. - The company’s foreign exchange reserves decreased slightly from HKD 67,000 to HKD 64,000[18]. Revenue Sources and Business Operations - Direct sales revenue for the six months ended September 30, 2023, was approximately HKD 28.9 million, down by about HKD 7.8 million or 21.2% from HKD 36.7 million in the same period of 2022, primarily due to a decrease in direct sales from retail stores in Hong Kong[76]. - Furniture and home accessories sales amounted to HKD 29.5 million, down from HKD 37.3 million, reflecting a decrease of approximately 20.9%[94]. - The commission income from furniture agency services decreased from approximately HKD 3.7 million to about HKD 3.5 million during the period[107]. - The group generated approximately HKD 1.8 million in food and beverage revenue from the TREE Café, remaining relatively stable compared to the previous period[99]. - The group plans to continue focusing on operating two TREE retail stores in Hong Kong and its e-commerce platform, while seeking to integrate and invest to enhance current revenue sources and explore new opportunities[109]. Cash Flow and Investment Activities - The net cash used in operating activities for the six months ended September 30, 2023, was HKD (16,152) thousand, compared to HKD (6,094) thousand for the same period in 2022[45]. - The net cash used in investing activities for the six months ended September 30, 2023, was HKD (5,081) thousand, significantly higher than HKD (77) thousand in the same period of 2022[45]. - The net cash generated from financing activities for the six months ended September 30, 2023, was HKD 14,944 thousand, a substantial increase from HKD 114 thousand in the same period of 2022[45]. - The total cash and cash equivalents as of September 30, 2023, decreased to HKD 3,190 thousand from HKD 16,128 thousand as of the same date in 2022[45]. - The total cash and cash equivalents decreased by HKD 6,289 thousand for the six months ended September 30, 2023, compared to a decrease of HKD 6,057 thousand in the same period of 2022[45]. Administrative and Operational Expenses - The group's administrative expenses decreased by approximately 7.6% to about HKD 11.5 million from approximately HKD 12.5 million for the six months ended September 30, 2022, primarily due to a reduction in service fees from Shanghai Yitameizhi Trading Co., Ltd.[118]. - Sales and marketing expenses decreased by approximately 12.9% from about HKD 18.0 million for the six months ended September 30, 2022, to approximately HKD 15.7 million, mainly due to reduced employee salaries[89]. Sustainability Initiatives - The group has planted over 100,000 trees as part of its commitment to sustainability and achieving carbon neutrality[100].

Financial Performance - Revenue for the six months ended September 30, 2023, was HKD 34,778,000, a decrease of 18.9% from HKD 42,833,000 in the same period of 2022[5] - Gross profit for the same period was HKD 23,389,000, down from HKD 28,208,000, reflecting a gross margin decline[5] - The company reported a loss attributable to equity holders of HKD 12,760,000 for the six months, compared to a profit of HKD 500,000 in the prior year[5] - Basic and diluted loss per share was HKD (0.81), compared to earnings per share of HKD 0.03 in the previous period[5] - The group's revenue for the six months ended September 30, 2023, was approximately HKD 34.8 million, a decrease of about HKD 8.1 million or 18.8% compared to the six months ended September 30, 2022[22] - The group recorded a net loss of approximately HKD 12.8 million for the six months ended September 30, 2023, compared to a profit of approximately HKD 0.5 million for the same period in 2022[22] - Total comprehensive expenses for the group amounted to approximately HKD 12.8 million for the six months ended September 30, 2023, compared to total comprehensive income of approximately HKD 0.5 million for the same period in 2022[22] - The net cash used in operating activities was HKD (16.15) million for the six months ended September 30, 2023, compared to HKD (6.09) million for the same period in 2022[28] - The net cash used in investing activities was HKD (5.08) million for the six months ended September 30, 2023, compared to HKD (0.077) million for the same period in 2022[28] - The net cash generated from financing activities was HKD 14.94 million for the six months ended September 30, 2023, compared to HKD 0.114 million for the same period in 2022[28] Assets and Liabilities - Total assets as of September 30, 2023, were HKD 74,981,000, slightly up from HKD 74,554,000 as of March 31, 2023[9] - Current liabilities increased to HKD 69,156,000 from HKD 43,428,000, indicating a significant rise in short-term obligations[9] - The company's cash and cash equivalents decreased to HKD 3,190,000 from HKD 9,479,000, highlighting liquidity challenges[9] - Inventory levels decreased to HKD 12,380,000 from HKD 14,262,000, suggesting improved inventory management[9] - Trade and other receivables fell to HKD 29,827,000 from HKD 38,710,000, indicating a reduction in outstanding receivables[9] - As of September 30, 2023, trade receivables net amount was HKD 23,312,000, down from HKD 29,844,000 as of March 31, 2023, indicating a decrease of approximately 21.8%[113] - The expected credit loss allowance for trade receivables was HKD 12,039,000 as of September 30, 2023, attributed to overdue amounts exceeding 181 days[114] - The total trade payables as of September 30, 2023, were HKD 12,053,000, compared to HKD 11,796,000 as of March 31, 2023, reflecting a slight increase of approximately 2.2%[117] Revenue Sources - Direct sales revenue was approximately HKD 28.9 million, down by about HKD 7.8 million or 21.2% from HKD 36.7 million for the six months ended September 30, 2022, primarily due to a decrease in direct sales from retail stores in Hong Kong[58] - The company’s distribution sales revenue was approximately HKD 0.5 million, a decrease of about 7.9% from HKD 0.6 million for the same period in 2022[58] - Sales of furniture and home accessories dropped to HKD 29,458,000, down 20.9% from HKD 37,273,000 year-on-year[76] - Commission income decreased from HKD 3,687,000 to HKD 3,538,000, reflecting a decline of approximately 4.0%[79] - The cost of sales fell by approximately 22.1% to HKD 11,400,000 from HKD 14,600,000, primarily due to reduced sales of furniture and home accessories[102] - The company reported no rental income during the current period, compared to HKD 90,000 in the previous period[80] - Online sales were initiated in May 2019, contributing to the company's retail strategy[74] - The furniture and home accessories sales accounted for 93.9% of total sales in 2023, slightly up from 93.5% in 2022[77] Expenses - Sales and marketing expenses decreased by approximately 12.9% to about HKD 15.7 million from HKD 18.0 million for the six months ended September 30, 2022, mainly due to reduced employee salaries[53] - Administrative expenses decreased by approximately 7.6% to about HKD 11.5 million from HKD 12.5 million for the six months ended September 30, 2022, primarily due to a reduction in service fees from Shanghai Yitameizhi Trading Co., Ltd.[71] Corporate Governance - The company emphasizes the importance of accountability through good corporate governance elements in its management structure and internal control procedures[148] - The company is committed to complying with the corporate governance code as per GEM listing rules[141] - The chairman and CEO roles are recommended to be separated according to the corporate governance code[149] - The company has established an audit committee to oversee financial reporting and risk management[146] - The audit committee has reviewed the unaudited consolidated financial statements for the relevant period[153] Future Outlook - The company plans to continue focusing on its two TREE retail stores in Hong Kong and its e-commerce platform, while seeking to enhance current revenue sources and explore new opportunities[62] - The company expects the retail environment to remain competitive and challenging in the upcoming fiscal year due to ongoing economic recovery post-COVID-19[62] ESG Initiatives - The company emphasizes ESG initiatives and has achieved a low-carbon label, with over 100,000 trees planted through partnerships in Indonesia[61] Dividend Policy - The board does not recommend the payment of an interim dividend for the six months ended September 30, 2023[22] - The company did not recommend the payment of an interim dividend for the period, consistent with the previous year[112] - The company does not recommend the payment of an interim dividend for the relevant period[144] Share Options - The company has not granted any share options under the share option scheme during the relevant period[145] - The company adopted a share option scheme on January 5, 2018, aimed at rewarding contributions and attracting high-quality employees[151] Shareholder Information - The company has a significant shareholder, Five Elements and Harmony Holdings Group Limited, owning 8.41% of its shares[137] - The company’s management structure includes a full ownership by Mr. Tang, who is also the chairman and CEO[136]

Revenue Performance - Total revenue for the first quarter was approximately HKD 16.8 million, a decrease of about HKD 1.8 million or 9.7% compared to HKD 18.6 million in the same period last year[20] - Revenue from furniture and home decor sales was HKD 14.3 million, down from HKD 15.7 million, representing a decrease of approximately HKD 1.4 million or 9.4%[8] - Direct sales revenue was approximately HKD 14.0 million, down from HKD 15.5 million, a decrease of about HKD 1.5 million or 9.4%[21] - The group's revenue for the three months ended June 30, 2023, was approximately HKD 16.8 million, a decrease of about HKD 1.8 million or 9.7% compared to the same period in 2022[56] - Total revenue for the three months ended June 30, 2023, was HKD 14.268 million, a decrease from HKD 15.689 million for the same period in 2022, representing a decline of approximately 9.0%[120] - The revenue from furniture and home accessories accounted for 94.7% of total sales in 2023, compared to 92.6% in 2022[120] Profitability and Loss - Gross profit for the quarter was approximately HKD 11.6 million, a decrease of about 6.4% from HKD 12.4 million, while gross margin improved from 66.6% to 69.0%[15] - The company reported a loss attributable to equity holders of HKD 643,000, an improvement from a loss of HKD 948,000 in the previous year[12] - Basic loss per share improved to HKD 0.04 from HKD 0.06 year-on-year[12] - The net loss attributable to owners for the period was approximately HKD 0.6 million, an increase of about HKD 0.3 million or 32.2% compared to the same period in 2022[56] - Total comprehensive expenses for the period amounted to approximately HKD 0.6 million, an increase of about HKD 0.4 million or 37.7% compared to the same period in 2022[56] - The group recorded an unaudited consolidated loss of approximately HKD 0.6 million, compared to a loss of about HKD 0.9 million for the three months ended June 30, 2022[117] Expenses Management - Total expenses for the period included selling and marketing expenses of HKD 8.5 million, down from HKD 8.8 million in Q2 2022[1] - Administrative expenses decreased from HKD 5.9 million in Q2 2022 to HKD 5.0 million in Q2 2023[1] - Sales and marketing expenses decreased by about 3.9% from approximately HKD 8.8 million to about HKD 8.5 million, primarily due to reduced employee costs[114] - Administrative expenses decreased by approximately 15.3% from about HKD 6.0 million to about HKD 5.0 million, mainly due to reduced office expenses and service fees from Shanghai Yitameizhi[115] Business Strategy and Operations - The company will continue to focus on operating its two TREE retail stores and e-commerce platform amid a challenging retail environment in Hong Kong[40] - The company plans to expand its furniture rental business and will continue to integrate and invest to enhance current revenue sources while exploring new opportunities[40] - The company acknowledges that the retail market remains competitive, with weak consumer confidence and spending in Hong Kong due to the impact of COVID-19[40] - The company aims to strengthen its current revenue sources through integration and investment[40] - The company has been focusing on expanding its operations in Hong Kong and mainland China through acquisitions and partnerships[89] - The group operates two "TREE" retail stores in Hong Kong, including a flagship store and a store in Sha Tin, and has been engaged in online sales since May 2019[118] ESG Commitment - The company emphasized its commitment to ESG initiatives, including achieving carbon neutrality and increasing tree planting efforts[22] - The company continues to focus on sustainable development and responsible sourcing practices[22] Dividend Policy - The board did not recommend the payment of an interim dividend for the period[12] - The board does not recommend the payment of an interim dividend for the period[56]

Financial Performance - The group's revenue for the three months ended June 30, 2023, was approximately HKD 16.8 million, a decrease of about HKD 1.8 million or 9.7% compared to the same period in 2022[24]. - The net loss attributable to owners for the period was approximately HKD 0.6 million, an increase of about HKD 0.3 million or 32.2% compared to the same period in 2022[24]. - Total comprehensive expenses for the period were approximately HKD 0.6 million, an increase of about HKD 0.4 million or 37.7% compared to the same period in 2022[24]. - Revenue for the three months ended June 30, 2023, was HKD 16,847,000, a decrease of 9.6% from HKD 18,648,000 in the same period of 2022[25]. - Gross profit for the same period was HKD 11,617,000, down 6.4% from HKD 12,411,000 year-on-year[25]. - Loss before tax for the quarter was HKD 643,000, an improvement from a loss of HKD 948,000 in the previous year[25]. - Basic and diluted loss per share for the period was HKD 0.04, compared to HKD 0.06 in the same quarter of 2022[25]. - The total comprehensive loss attributable to equity holders for the period was HKD 645,000, compared to HKD 1,035,000 in the same quarter of 2022[25]. - The company recorded an unaudited consolidated loss of approximately HKD 0.6 million for the period, compared to a loss of approximately HKD 0.9 million for the three months ended June 30, 2022[88]. Revenue Sources - Furniture and home accessories sales for the three months ended June 30, 2023, were HKD 14.268 million, down from HKD 15.689 million in the same period of 2022[11]. - Commission income for the period was HKD 893,000, compared to HKD 1.686 million in the same period of 2022[11]. - The total revenue from all sources for the three months ended June 30, 2023, was HKD 16.847 million, down from HKD 18.648 million in the same period of 2022[11]. - Direct sales revenue for the period was approximately HKD 14.0 million, a decrease of about HKD 1.5 million or 9.4% compared to HKD 15.5 million for the same period last year[108]. - Rental income for the group was nil during the period, compared to approximately HKD 15,000 for the three months ended June 30, 2022[93]. - Commission income decreased from approximately HKD 2.0 million to about HKD 1.7 million during the period[110]. - Food and beverage revenue from TREE Café remained stable at approximately HKD 0.9 million for both periods[109]. Expenses and Cost Management - Administrative expenses decreased to HKD 5,043,000 from HKD 5,954,000, reflecting a reduction of 15.3%[25]. - Sales and marketing expenses were reduced to HKD 8,495,000, down from HKD 8,843,000, indicating a decrease of 3.9%[25]. - The cost of sales decreased from approximately HKD 6.2 million to approximately HKD 5.2 million, a reduction of about 16.1%, primarily related to the decrease in furniture and home decor sales[65]. - The company's administrative expenses decreased by approximately 15.3% from about HKD 6.0 million to about HKD 5.0 million, mainly due to reduced office expenses[85]. Dividend and Shareholder Information - The company did not recommend the payment of an interim dividend for the period[24]. - The company does not recommend the payment of an interim dividend for the period, consistent with the previous year[63]. - Major shareholder Yu Ding holds 47.09% of the company's shares, fully owned by Mr. Tang[114]. - The average number of ordinary shares for calculating basic loss per share remained at 1,584,000 shares for both periods[78]. - No share options were granted under the share option scheme during the period[130]. Corporate Governance and ESG Initiatives - The group has adopted strict corporate governance practices in line with GEM listing rules[121]. - The company emphasizes ESG initiatives, having planted nearly 100,000 trees in partnership with Indonesian partners[111]. - The company aims for carbon neutrality and has received low carbon care labels for its efforts in sustainable development[111]. - The company has established an audit committee in accordance with GEM listing rules and corporate governance codes, focusing on financial reporting and risk management[131]. - The audit committee's responsibilities include recommending the appointment and dismissal of external auditors and reviewing financial statements[131]. Business Strategy and Market Focus - The company continues to focus on its core business of furniture and home decor sales, distribution, and leasing, while exploring new market opportunities[28]. - The company plans to continue focusing on its two TREE retail stores and e-commerce platform, while expanding its furniture rental business[73]. - The company aims to integrate and invest to enhance current revenue sources and explore new opportunities[73].