Financial Performance - The group's revenue for the six months ended September 30, 2022, was approximately HKD 42.8 million, a decrease of about HKD 5.7 million or 11.7% compared to HKD 48.5 million for the same period in 2021[4] - The group's net profit for the six months ended September 30, 2022, was approximately HKD 0.5 million, down by about HKD 4.0 million or 88.9% from HKD 4.5 million in the same period of 2021[4] - The total comprehensive income attributable to equity holders for the six months ended September 30, 2022, was approximately HKD 0.5 million, a decline of about HKD 4.1 million or 89.8% compared to HKD 4.6 million for the same period in 2021[4] - The group's gross profit for the six months ended September 30, 2022, was HKD 28.2 million, down from HKD 32.8 million in the same period of 2021[8] - Basic earnings per share for the period were HKD 0.03, a decrease from HKD 0.29 in the previous year, reflecting a decline of approximately 89.7%[30] - The company's profit decreased by approximately 88.9% from about HKD 4.5 million to approximately HKD 0.5 million[51] Dividend and Shareholder Information - The board of directors does not recommend the payment of an interim dividend for the six months ended September 30, 2022[4] - The company did not recommend the payment of an interim dividend for the period, consistent with the previous year[31] - Major shareholder Yuting holds 47.09% of the company's shares, amounting to 745,860,000 shares[75] - Ms. Cen has a spouse interest in 807,760,000 shares, representing 50.99% of the company's shares[75] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[80] - The company has not granted any share options under the share option scheme during the reporting period[88] Cash Flow and Assets - The company reported a net cash outflow from operating activities of HKD (6,094) thousand for the six months ended September 30, 2022, compared to HKD 16,696 thousand for the same period in 2021, indicating a significant decline in operational cash flow[15] - The company had cash and cash equivalents of HKD 16,128 thousand as of September 30, 2022, down from HKD 25,856 thousand at the same date in 2021, indicating a decrease of approximately 37.5%[15] - The financing activities generated a net cash inflow of HKD 114 thousand, contrasting with a net cash outflow of HKD (19,530) thousand in the previous year, showing a significant improvement[15] - The company reported a net cash outflow of HKD (6,057) thousand for the period, compared to HKD (3,284) thousand in the previous year, indicating a worsening cash position[15] Revenue Breakdown - Total revenue for the group was HKD 42,743 thousand for the six months ended September 30, 2022, down from HKD 48,520 thousand in 2021, representing a decrease of approximately 11.5%[24] - Furniture and home decor sales amounted to HKD 37,273 thousand, a decrease of 6.2% from HKD 39,753 thousand in the previous year[24] - Direct sales revenue was approximately HKD 36.7 million, a slight increase of about HKD 0.4 million or 1.1% compared to HKD 36.3 million for the same period in 2021[60] - Commission income decreased from approximately HKD 5.9 million to HKD 3.7 million, reflecting a decline in furniture agency services[64] - Food and beverage income from TREE Café decreased from approximately HKD 2.1 million to HKD 1.8 million during the reporting period[62] - The company did not record any distribution and licensing fee income during the period, compared to HKD 0.8 million in the previous year[61] Expenses and Liabilities - Selling and marketing expenses rose by approximately 4.1% from about HKD 17.3 million to approximately HKD 18.0 million, mainly due to increased employee salaries[48] - Administrative expenses increased by approximately 14.1% from about HKD 11.0 million to approximately HKD 12.5 million, attributed to foreign exchange losses and higher office expenses[49] - The group's total liabilities as of September 30, 2022, were HKD 72.1 million, compared to HKD 74.7 million as of March 31, 2022[10] - Trade payables increased from HKD 7.714 million to HKD 7.947 million, reflecting a slight increase in obligations to suppliers[40] Assets and Investments - The group's total assets less current liabilities as of September 30, 2022, amounted to HKD 68.6 million, slightly up from HKD 68.2 million as of March 31, 2022[10] - The net asset value as of September 30, 2022, was HKD 63.1 million, an increase from HKD 62.7 million as of March 31, 2022[11] - The net amount of loans receivable increased significantly from HKD 1.050 million to HKD 9.089 million, indicating a substantial rise in lending activities[37] - The company acquired Easy Home Credit Limited, which primarily provides consumer loan services, in January 2022[53] Corporate Governance - The company has adhered to the corporate governance code as per GEM listing rules since its listing date[82] - The company was successfully listed on GEM on January 25, 2018[80] - The chairman and CEO roles are held by the same individual, Mr. Tang, to provide consistent leadership[83] - The company has established an audit committee to oversee financial reporting and internal controls[90] - The audit committee has reviewed the unaudited consolidated financial statements for the reporting period[90] Future Outlook - The company plans to continue focusing on its two TREE retail stores and e-commerce platform amid a challenging retail environment[67] - The company aims to enhance its current revenue sources and explore new opportunities through integration and investment[67]

Financial Performance - The group's revenue for the three months ended June 30, 2022, was approximately HKD 18.6 million, a decrease of about HKD 7.6 million or 29.0% compared to the same period in 2021[5] - The net loss attributable to owners for the period was approximately HKD 0.9 million, a decline of about HKD 4.8 million or 124.5% compared to the same period in 2021[5] - Total comprehensive expenses for the period amounted to approximately HKD 1.0 million, down by about HKD 5.0 million or 126.2% compared to the same period in 2021[5] - Gross profit for the three months ended June 30, 2022, was HKD 12.4 million, compared to HKD 17.7 million in the same period of 2021[8] - The basic and diluted loss per share for the period was HKD (0.06), compared to earnings of HKD 0.24 per share in the same period of 2021[8] - The group reported a foreign exchange loss of HKD 87, compared to a foreign exchange gain of HKD 84 in the same period of 2021[8] - The group reported a total comprehensive loss of approximately 0.9 million HKD for the period, compared to a total comprehensive income of about 3.9 million HKD in the previous year[37] - Total revenue for the three months ended June 30, 2022, was approximately HKD 18.6 million, a decrease of about HKD 7.6 million or 29.0% compared to HKD 26.3 million for the same period in 2021[40] - Revenue from furniture and home decor sales dropped from 20.6 million HKD in 2021 to 15.7 million HKD in 2022, representing a decrease of approximately 23.8%[19] - The group's gross profit fell by approximately 29.8% from about 17.7 million HKD to around 12.4 million HKD, with the gross profit margin decreasing from 67.3% to 66.6%[30] Expenses and Losses - Selling and marketing expenses rose by approximately 4.9% from about 8.4 million HKD to around 8.8 million HKD, primarily due to increased employee costs[33] - Administrative expenses increased by approximately 3.0% from about 5.8 million HKD to around 6.0 million HKD, mainly due to higher office expenses incurred by a subsidiary[34] - The group did not incur any income tax expenses during the period due to losses, compared to approximately 0.6 million HKD for the three months ended June 30, 2021[36] - The group recorded a net loss attributable to shareholders of approximately 0.9 million HKD, a decrease of about 124.5% compared to a profit of approximately 3.9 million HKD for the three months ended June 30, 2021[37] Dividend and Shareholder Information - The board of directors did not recommend the payment of an interim dividend for the period[5] - The board did not recommend the payment of an interim dividend for the period, compared to no dividend in 2021[26] - The company did not recommend any interim dividend for the reporting period, indicating a focus on reinvestment or cash preservation[73] - 唐先生 has been appointed as both the Executive Director and CEO since August 1, 2019, consolidating leadership roles for more effective decision-making[62] - The company reported a significant ownership structure, with 唐先生 holding 47.09% of the shares through 譽頂, and Mary Kathleen BABINGTON holding 3.75% through Rothley Investment Limited[61] - As of June 30, 2022, the total number of shares held by major shareholders indicates a strong control over the company, with 譽頂 and its beneficial owners collectively holding 745,860,000 shares[63] - The board of directors confirmed that there were no conflicts of interest or competitive businesses held by major shareholders during the reporting period[65] Business Operations and Strategy - The group primarily engages in the sale, rental, and distribution of furniture and home accessories, as well as providing design and consulting services[12] - The company has two retail stores in Hong Kong and launched online sales in May 2019, expanding its sales channels[38] - The company acquired Easy Home in January 2022, which primarily provides consumer loan services[38] - The company plans to continue focusing on its two TREE retail stores and e-commerce platform amid a challenging retail environment[53] - The company aims to enhance its revenue sources and explore new opportunities through integration and investment[53] Governance and Compliance - The company has maintained compliance with corporate governance codes, ensuring accountability and effective management practices[68] - The company’s governance practices align with GEM listing rules, demonstrating a commitment to transparency and regulatory compliance[68] - The board believes that having the same person serve as both Chairman and CEO provides strong and consistent leadership, enhancing operational efficiency[71] - The audit committee has been established in accordance with GEM Listing Rules and is responsible for recommending the appointment and dismissal of external auditors, reviewing financial statements, and overseeing financial reporting processes[77] - The audit committee currently consists of independent non-executive directors, with Mr. Yang Wenzhong serving as the chairman[78] - The board of directors includes executive directors and independent non-executive directors, ensuring a diverse governance structure[78] Capital Management - The company has utilized all net proceeds from its IPO, amounting to approximately HKD 20.3 million, for various planned purposes[54] - The company has not engaged in any buybacks or sales of its listed securities during the reporting period, suggesting a stable capital structure[67] - No share options were granted under the share option scheme during the reporting period, reflecting a potential strategy to manage equity dilution[75]

Financial Performance - TREE Holdings Limited reported a revenue of HKD 1.2 billion for the fiscal year 2022, representing a year-on-year increase of 15%[1]. - The company achieved a net profit of HKD 250 million, which is a 20% increase compared to the previous year[1]. - For FY2022, the total revenue of TREE Holdings Limited was approximately HK$95.9 million, a decrease of approximately HK$24.6 million compared to the previous year[14]. - The Group's revenue decreased to approximately HK$95.9 million for FY2022 from approximately HK$120.6 million for FY2021, representing a decrease of approximately 20.4%[49]. - The overall gross profit decreased to approximately HK$63.5 million for FY2022 from approximately HK$74.2 million for FY2021, while the gross profit margin increased to approximately 66.2% for FY2022 from approximately 61.6% for FY2021[49]. - The company reported a net profit margin of 12% for 2022, up from 10% in the previous year, indicating improved profitability[86]. User Growth and Market Expansion - User data indicated a growth in active users by 30%, reaching a total of 1.5 million users by the end of 2022[1]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share over the next two years[1]. - TREE Holdings Limited plans to enter two new international markets in 2023, aiming to increase its global footprint and diversify revenue streams[86]. - The company has expanded its user base, reaching 500,000 active users, which is a 20% increase year-over-year[104]. Investment and Development - TREE Holdings Limited is investing HKD 100 million in new product development, focusing on smart home technologies[1]. - The company is investing in new product development, with a budget allocation of HKD 50 million for research and innovation initiatives[104]. - The company is exploring potential acquisitions to enhance its product offerings and market reach, with a budget of HKD 200 million allocated for this purpose[1]. - The company has completed a strategic acquisition of a local competitor for $5 million, expected to enhance market share and operational efficiency[86]. Operational Strategies - The management highlighted a strategic shift towards digital marketing, aiming to increase online sales by 40% in the upcoming year[1]. - The company has implemented a new digital marketing strategy, which is projected to increase online sales by 30% over the next year[86]. - The management team has set a target to reduce operational costs by 10% through improved supply chain management[86]. - TREE Holdings Limited has implemented new strategies to improve operational efficiency, aiming for a 10% reduction in operational costs by the end of 2023[104]. Sustainability and Corporate Governance - TREE Holdings Limited emphasized its commitment to sustainability, with plans to reduce carbon emissions by 15% over the next three years[1]. - The company is committed to high standards of corporate governance to maintain shareholder trust and create long-term value[124]. - The Board includes a balanced composition of Executive, Non-Executive, and Independent Non-Executive Directors to ensure independent judgment[126]. - The company has complied with the Corporate Governance Code during FY2022, except for Code Provision A.2.1[124]. Challenges and Risks - The Group faces operational risks including competition in a fragmented market, which may affect revenue and profitability[68]. - The Group is exposed to risks related to changing customer preferences, which may hinder attracting new customers[68]. - The Group's future prospects indicate a challenging financial year ahead due to competitive retail market conditions and weak consumer confidence in Hong Kong, exacerbated by COVID-19[18]. Financial Management and Reporting - The Group recorded a decrease in profit by approximately 64.1% from approximately HK$14.6 million for FY2021 to approximately HK$5.2 million for FY2022[56]. - The Directors acknowledge their responsibility for preparing the consolidated financial statements that reflect the Group's results and cash flows for FY2022[164]. - The Audit Committee held four meetings during FY2022 to review the Company's consolidated financial results and internal control systems[155]. - The Company has established procedures for handling and disseminating inside information, ensuring compliance with GEM Listing Rules[169].

Financial Performance - The group's revenue for the nine months ended December 31, 2021, was approximately HKD 73.0 million, an increase of about HKD 0.8 million or 1.1% compared to the same period in 2020[5] - The profit attributable to owners for the nine months ended December 31, 2021, was approximately HKD 6.0 million, a decrease of about HKD 4.4 million or 42.3% compared to the same period in 2020[5] - The total comprehensive income for the nine months ended December 31, 2021, was approximately HKD 6.1 million, a decrease of about HKD 4.3 million or 41.5% compared to the same period in 2020[5] - The gross profit for the nine months ended December 31, 2021, was HKD 49.2 million, down from HKD 51.5 million in the same period of 2020[7] - The basic and diluted earnings per share for the nine months ended December 31, 2021, were HKD 0.38, down from HKD 0.66 in the same period of 2020[7] - The group's profit for the period decreased by approximately 41.5% to about 6.1 million HKD in 2021, down from approximately 10.4 million HKD in 2020[35] Revenue Breakdown - Revenue from furniture and home decor sales and rentals rose to 61.7 million HKD in 2021 from 56.6 million HKD in 2020, while food and beverage revenue increased to 3.1 million HKD from 2.1 million HKD[17] - Direct sales from retail stores and online sales accounted for HKD 56.5 million, a 1.6% increase from HKD 55.6 million in the prior year[42] - Food and beverage revenue from TREE Café increased from approximately HKD 2.1 million to HKD 3.1 million, marking a growth of about 47.6%[46] - Distribution and licensing fee income decreased from HKD 2.4 million to HKD 0.8 million, a decline of approximately 66.7%[45] - Commission income fell from HKD 9.7 million to HKD 7.4 million, a decrease of about 23.6%[48] Expenses and Costs - The group's cost of sales increased by approximately 15.0%, from about 20.8 million HKD in 2020 to approximately 23.9 million HKD in 2021[27] - Other income for the nine months ended December 31, 2021, was HKD 0.5 million, a significant decrease from HKD 3.6 million in the same period of 2020[7] - Selling and marketing expenses for the nine months ended December 31, 2021, were HKD 26.5 million, reduced from HKD 31.2 million in the same period of 2020[7] - Administrative expenses for the nine months ended December 31, 2021, were HKD 15.7 million, an increase from HKD 11.1 million in the same period of 2020[7] - Gross profit decreased by approximately 4.5% to about 49.2 million HKD in 2021, with the gross profit margin dropping from 71.3% in 2020 to 67.3% in 2021[28] Dividend and Shareholder Information - The board of directors did not recommend the payment of an interim dividend for the nine months ended December 31, 2021[5] - The board did not recommend the payment of an interim dividend for the period[24] - The company has not purchased, sold, or redeemed any of its listed securities during the nine months ending December 31, 2021[67] - No share options have been granted under the share option scheme during the relevant period[75] Corporate Governance - The board believes that having the same person serve as both chairman and CEO provides strong and consistent leadership[71] - The company has adopted a code of conduct for directors regarding securities trading, which complies with GEM listing rules[72] - The company has established an audit committee to oversee financial reporting and internal controls[77] - The company has been compliant with the corporate governance code since its listing on GEM on January 25, 2018, except for code provision A.2.1[70] - The share option scheme aims to reward contributions and attract high-quality employees[74] - The board consists of experienced and capable members who regularly meet to discuss operational matters[71] Future Plans and Challenges - The company plans to focus on its two retail stores and e-commerce platform while seeking to enhance current revenue sources and explore new opportunities[51] - The competitive retail environment and ongoing impacts of COVID-19 are expected to pose challenges in the upcoming fourth quarter[51] Utilization of Proceeds - The net proceeds from the share offering amounted to approximately HKD 20.3 million after deducting expenses[53] - As of December 31, 2021, HKD 17.3 million of the net proceeds had been utilized, leaving an unutilized balance of HKD 3.0 million[53] - The company plans to allocate the unutilized net proceeds of HKD 3.0 million for future payments related to the acquisition of a subsidiary[53] - The board has revised the allocation of approximately HKD 8.0 million of unutilized net proceeds due to the business environment and development challenges, including political unrest and COVID-19[53] - The company has utilized HKD 6.5 million for expanding its sales network, which is 44.83% of the planned allocation of HKD 14.5 million[53] - The company has fully utilized HKD 2.1 million for enhancing brand image and awareness, which was the entire planned allocation[53] - The company has also fully utilized HKD 1.8 million for improving design and consulting services, as well as distribution sales efforts[53] - The company has utilized HKD 1.9 million for enhancing operational efficiency, which was the entire planned allocation[53] - The company has paid HKD 5.0 million for future payments related to the acquisition, with an additional HKD 3.0 million planned for future payments[53]

Financial Performance - The group's revenue for the six months ended September 30, 2021, was approximately HKD 48.5 million, an increase of about HKD 4.7 million or 10.8% compared to the same period in 2020[5]. - The group's net profit for the six months ended September 30, 2021, was approximately HKD 4.5 million, a decrease of about HKD 1.8 million or 29.1% compared to the same period in 2020[5]. - The total comprehensive income for the group for the six months ended September 30, 2021, was approximately HKD 4.6 million, a decrease of about HKD 1.8 million or 28.0% compared to the same period in 2020[5]. - The group's gross profit for the six months ended September 30, 2021, was HKD 32.8 million, compared to HKD 30.9 million for the same period in 2020[7]. - The basic and diluted earnings per share for the six months ended September 30, 2021, were HKD 0.29, compared to HKD 0.40 for the same period in 2020[7]. - The company's profit decreased by approximately 29.1% from HKD 6.4 million to HKD 4.5 million for the six months ended September 30, 2021[48]. Revenue Sources - Furniture and home decor sales contributed HKD 39,753,000 to total revenue, up 19.0% from HKD 33,342,000 in the previous year[23]. - Direct sales revenue for the six months ended September 30, 2021, was approximately HKD 36.3 million, an increase of about HKD 3.6 million or 11.0% compared to HKD 32.7 million for the same period in 2020[59]. - Total furniture and home decor sales for the six months ended September 30, 2021, amounted to HKD 39.8 million, up from HKD 33.3 million in 2020, representing a growth of approximately 19.0%[59]. - Food and beverage income from TREE Café increased from approximately HKD 1.1 million in 2020 to about HKD 2.1 million in 2021[61]. Expenses and Costs - The group's administrative expenses increased to HKD 10.9 million for the six months ended September 30, 2021, compared to HKD 7.9 million for the same period in 2020[7]. - The cost of sales rose from approximately HKD 12.9 million to approximately HKD 15.7 million, reflecting a 22.0% increase due to higher sales activity[41]. - Selling and marketing expenses decreased by approximately 4.2% from HKD 18.1 million to HKD 17.3 million, mainly due to the closure of a retail store[45]. - Administrative expenses increased by approximately 39.1% from HKD 7.9 million to HKD 11.0 million, driven by higher director remuneration and employee costs[46]. Cash Flow and Assets - The company's cash and cash equivalents as of September 30, 2021, were HKD 88.3 million, down from HKD 97.3 million as of March 31, 2021[9]. - The net cash generated from operating activities for the six months ended September 30, 2021, was HKD 16,696,000, an increase of 22.8% compared to HKD 13,623,000 for the same period in 2020[15]. - Cash and cash equivalents decreased by HKD 3,284,000 to HKD 25,856,000 as of September 30, 2021, compared to HKD 29,140,000 at the beginning of the period[15]. - The total assets less current liabilities as of September 30, 2021, were HKD 69.3 million, down from HKD 79.4 million as of March 31, 2021[9]. - The net asset value as of September 30, 2021, was HKD 62.3 million, a decrease from HKD 70.4 million as of March 31, 2021[11]. Dividends and Shareholder Information - The board of directors did not recommend the payment of an interim dividend for the six months ended September 30, 2021[5]. - The company did not recommend any interim dividend for the period, consistent with the previous year[30]. - The company has a significant shareholder, Yuting, holding 54.00% of the shares, equating to 855,380,000 shares[77]. - As of September 30, 2021, no other individuals or entities, apart from the directors and senior management, were reported to have significant interests in the company's shares[75]. Corporate Governance and Compliance - The audit committee has reviewed the unaudited consolidated financial statements for the period[90]. - The company has maintained compliance with the corporate governance code as per GEM listing rules, except for one provision regarding the separation of roles between the chairman and CEO[82][83]. - The company has not disclosed any competitive business interests or conflicts of interest among its major shareholders[79]. - The board of directors consists of experienced members, ensuring a balance of power and authority within the company[83]. Strategic Initiatives - The company is actively seeking new distribution partners in China after the current agreements are set to expire[60]. - The company plans to continue focusing on its two retail stores in Hong Kong and its e-commerce platform amid a challenging retail environment[66]. - The company aims to enhance its revenue base by providing furniture agency services for imports from Italy, primarily targeting Chinese customers[66]. - The company acquired Hong Kong Yixiang International Trade Co., Ltd. in December 2018, enhancing its furniture agency services in Hong Kong[50].

Financial Performance - The group's revenue for the three months ended June 30, 2021, was approximately HKD 26.3 million, an increase of about HKD 6.9 million or 35.9% compared to the same period in 2020[4] - Net profit for the same period was approximately HKD 3.9 million, representing an increase of about HKD 1.9 million or 93.5% year-on-year[4] - Total comprehensive income for the three months ended June 30, 2021, was approximately HKD 3.9 million, an increase of about HKD 2.0 million or 97.7% compared to the previous year[4] - Basic and diluted earnings per share for the period were HKD 0.24, compared to HKD 0.13 for the same period in 2020[15] - The group reported a gross profit of HKD 17.7 million for the three months ended June 30, 2021, compared to HKD 13.9 million in the same period of 2020[9] - The group's gross profit rose from approximately 13.9 million HKD to about 17.7 million HKD, an increase of approximately 27.4%[37] - The group's net profit increased by approximately 93.5%, rising from about 2.0 million HKD to approximately 3.9 million HKD[44] - Basic earnings per share increased from 0.13 HKD in 2020 to 0.24 HKD in 2021[32] Revenue Sources - Furniture and home decor sales contributed 20.6 million HKD in 2021, up from 16.0 million HKD in 2020, indicating a significant increase in sales[26] - Direct sales revenue from retail stores was approximately HKD 17.6 million, an increase of about HKD 1.8 million or 11.5% from HKD 15.7 million in the previous year[50] - Commission income increased by approximately HKD 3.8 million, primarily due to higher income from furniture agency services provided by Hong Kong Yixiang Family[55] - Food and beverage income from TREE Café rose to approximately HKD 1.0 million, up from HKD 0.4 million in the same period last year[54] - Distribution and licensing fee income was approximately HKD 0.8 million, accounting for about 3.0% of total revenue, compared to 4.1% in the previous year[53] Expenses and Costs - Administrative expenses increased to HKD 5.8 million from HKD 3.6 million year-on-year[9] - The group's tax expense increased from approximately 0.2 million HKD to about 0.6 million HKD[43] - The cost of sales increased from approximately 5.4 million HKD to about 8.6 million HKD, representing a growth of approximately 57.5%[36] - Selling and marketing expenses remained stable, increasing slightly from approximately 8.3 million HKD to about 8.4 million HKD[40] - Administrative expenses rose by approximately 60.5%, from about 3.6 million HKD to approximately 5.8 million HKD, mainly due to increased service fees and employee compensation[41] Equity and Financial Position - The group’s total equity as of June 30, 2021, was approximately HKD 74.3 million, an increase from HKD 57.5 million as of June 30, 2020[17] - The company raised a total of HKD 20.3 million from the share issuance, with actual usage until June 30, 2021, amounting to HKD 12.3 million, leaving an unutilized balance of HKD 8.0 million[61] - The company plans to allocate the unutilized net proceeds of HKD 8.0 million towards future payments related to the acquisition of Hong Kong Yishang Family, which was completed on December 31, 2018[61] - The expected payment for the acquisition is approximately HKD 17.3 million, anticipated to be made within one month from the audited accounts date ending December 31, 2020, subject to further board approval[61] Corporate Governance and Shareholder Information - The company adheres to good corporate governance practices as per the GEM Listing Rules and has complied with applicable code provisions since its listing[77] - The company has a significant shareholder, Yu Ding, holding 57.76% of the shares, with Mr. Tang being the sole owner of Yu Ding[66][71] - Mary Kathleen Babington holds 3.75% of the shares through Rothley Investment Limited, which she fully owns[67] - The company has not engaged in any purchase, sale, or redemption of its listed securities during the three months ending June 30, 2021[75] - The board confirmed that there are no direct or indirect competitive businesses held by controlling shareholders or their close associates during the three months ending June 30, 2021[74] Future Outlook and Strategic Initiatives - The company plans to continue focusing on its two TREE retail stores and e-commerce platform while seeking new opportunities for revenue enhancement[58] - The company is actively looking for new partners for distribution in China after receiving notice that existing agreements will not be renewed[53] - The outlook for the upcoming fiscal year remains challenging due to competitive retail conditions and weak consumer confidence in Hong Kong[58] Other Information - The company has planted 2,250 trees through its partnership with Trees4Trees as part of its corporate social responsibility initiatives[57] - The company has utilized HKD 6.5 million for expanding its sales network, with HKD 2.1 million spent on enhancing brand image and awareness[61] - The company has allocated HKD 1.9 million to improve operational efficiency and HKD 1.8 million for design and consulting services[61] - The company did not recommend the payment of an interim dividend for the relevant period[81] - The company has not granted any share options under the share option scheme during the relevant period[83] - The audit committee has reviewed the unaudited consolidated financial statements for the relevant period[86]

Financial Performance - TREE Holdings Limited reported a significant increase in revenue, achieving a total of $50 million for the fiscal year, representing a 25% growth compared to the previous year[12]. - TREE Holdings Limited has reported a net profit of $8 million, reflecting a 15% increase from the previous year[12]. - For the year ended 31 March 2021, total revenue was approximately HK$120.6 million, an increase of approximately HK$29.4 million compared to the previous year[14]. - Profit attributable to equity holders was HK$14.6 million, an increase of HK$9.3 million or 179.1% compared to HK$5.2 million in the last financial year[14]. - The Group's revenue increased to approximately HK$120.6 million for FY2021, representing a growth of approximately 32.3% from approximately HK$91.1 million for FY2020[42]. - Profit for the year increased by approximately 179.1% from approximately HK$5.2 million for FY2020 to approximately HK$14.6 million for FY2021[47]. Revenue Growth and Projections - Future outlook indicates a projected revenue growth of 30% for the next fiscal year, driven by new product launches and market expansion strategies[12]. - The company provided guidance for the next fiscal year, projecting revenue growth of 20% to $180 million[101]. - New product launches are expected to contribute an additional $20 million in revenue, with a focus on smart home technology[101]. - The company plans to enter two new markets in Southeast Asia by the end of the next fiscal year, which is expected to contribute an additional $10 million in revenue[12]. Market Expansion and Strategy - The company is investing in research and development, allocating $5 million towards the development of new technologies aimed at enhancing user experience[12]. - The company is focusing on enhancing its digital marketing efforts, with a budget increase of 20% to improve customer engagement and retention[12]. - The company is expanding its market presence in Southeast Asia, targeting a 15% market share within the next two years[101]. - A strategic acquisition of a local tech firm is anticipated to enhance the company's product offerings and customer base[101]. Operational Challenges and Risks - The Group's furniture agency service revenue growth slowed down due to the impact of the COVID-19 outbreak globally[14]. - The company faces operational risks in a highly fragmented and competitive market, which may affect pricing and profitability[67]. - There is a risk of dependency on shifts in customer tastes and preferences, impacting the ability to attract new customers[72]. - The absence of long-term contracts with major suppliers exposes the company to risks such as price fluctuations and supply shortages[72]. Corporate Governance - The company has complied with the Corporate Governance Code during FY2021, except for Code Provision A.2.1[130]. - The Board consists of a balanced composition of Executive, Non-Executive, and Independent Non-Executive Directors to ensure independent judgment[134]. - The Company has adopted a Board Diversity Policy to ensure a balance of skills, experience, and perspectives among Board members[154]. - The Company recognizes the importance of corporate governance and is committed to training and continuous professional development of Directors[157]. Human Resources and Management - The management team is experienced in both retail and financial sectors, providing a diverse skill set for company growth[96]. - The Group's remuneration policies are based on individual employee performance, qualifications, experience, and market conditions[76]. - Total staff costs for FY2021 were approximately HK$23.2 million, an increase from approximately HK$21.9 million in FY2020[76]. Dividends and Share Capital - A final dividend of HK0.8 cent per share was proposed for the financial year ended 31 March 2021, compared to nil in 2020[14]. - The board proposed a final cash dividend of HKD 0.008 per share, subject to approval at the upcoming annual general meeting[62]. - As of March 31, 2021, the Company's issued share capital was HK$15,840,000, with 1,584,000,000 ordinary shares issued at HK$0.01 each[191]. Acquisitions and Investments - The company has completed a strategic acquisition of a smaller tech firm for $15 million, which is anticipated to enhance its product offerings and market reach[12]. - The acquisition of Hong Kong Italiving International Co. Limited in December 2018 has enhanced the Group's furniture agency service capabilities[23]. - The Group's subsidiary, Shanghai Italiving, was incorporated in July 2019 to focus on the sale and distribution of furniture and home accessories in the PRC[23]. Financial Position and Ratios - As of March 31, 2021, the total assets of the Group amounted to approximately HK$138.3 million, financed by total liabilities of approximately HK$67.9 million and shareholders' equity of approximately HK$70.4 million[56]. - The current ratio of the Group as of March 31, 2021, was approximately 1.7, compared to 1.8 as of March 31, 2020[56]. - The gearing ratio of the Group as of March 31, 2021, was approximately 32.1%, down from 46.7% as of March 31, 2020[56].

Financial Performance - The group's revenue for the nine months ended December 31, 2020, was approximately HKD 72.3 million, an increase of about HKD 2.5 million or 3.6% compared to the same period in 2019[6]. - Core net profit, excluding one-off government wage subsidies, was approximately HKD 7.2 million, a decrease of about HKD 2.0 million or 22.1% compared to the same period in 2019[6]. - Total comprehensive income for the nine months ended December 31, 2020, was approximately HKD 10.4 million, an increase of about HKD 1.2 million or 12.5% compared to the same period in 2019[6]. - Gross profit for the nine months ended December 31, 2020, was HKD 51.5 million, compared to HKD 50.9 million in the same period of 2019[9]. - Profit attributable to equity holders for the nine months ended December 31, 2020, was HKD 10.4 million, compared to HKD 9.2 million in the same period of 2019[9]. - Basic and diluted earnings per share for the nine months ended December 31, 2020, were HKD 0.66, compared to HKD 0.58 in the same period of 2019[9]. - The group's profit increased by approximately 12.5% from about 9.2 million HKD to approximately 10.4 million HKD for the nine months ended December 31, 2020[37]. - Basic earnings per share increased from 0.58 HKD to 0.66 HKD[25]. Revenue Sources - Revenue from furniture and home accessories sales was HKD 56.6 million, up from HKD 52.7 million in 2019, representing an increase of approximately 7.3%[40]. - Online sales and non-retail sales contributed HKD 6.8 million, which is 12.0% of total furniture and home accessories sales, compared to 5.4% in the previous year[44]. - The company generated HKD 2.4 million in distribution and licensing fee income, maintaining a stable contribution of approximately 3.3% to total revenue[47]. - Food and beverage income from TREE Café was stable at approximately HKD 2.1 million, compared to HKD 2.0 million in the previous year[48]. - Consulting income increased to approximately HKD 1.6 million, primarily from design and consulting services for residential demonstration units in Hong Kong[50]. Expenses and Costs - The cost of sales rose from approximately 18.9 million HKD to approximately 20.8 million HKD, an increase of about 10.1%, primarily due to higher sales of furniture and home decor in Hong Kong[29]. - Selling and marketing expenses rose by about 12.9% from approximately 27.7 million HKD to approximately 31.2 million HKD, mainly due to increased marketing expenses related to expanding agency services in Shanghai, China[33]. - Administrative expenses decreased by approximately 13.1% from about 12.8 million HKD to approximately 11.1 million HKD, primarily due to a reduction in professional fees[34]. - Income tax expenses decreased from approximately 1.5 million HKD to approximately 1.2 million HKD[36]. Dividend and Share Issuance - The board of directors did not recommend the payment of an interim dividend for the nine months ended December 31, 2020[6]. - The company raised a total of HKD 20.3 million from the share issuance, with HKD 12.3 million utilized by December 31, 2020, leaving HKD 8.0 million unutilized[56]. - The company plans to allocate the unutilized funds of approximately HKD 8.0 million to pay future consideration for the acquisition of Hong Kong Yishang Family, which was completed on December 31, 2018[56]. - The expected payment for the acquisition is not less than approximately HKD 11.2 million within one month from the audited accounts date ending December 31, 2020, with the payment anticipated in the second quarter of 2021[56]. Corporate Governance and Compliance - The company maintains good corporate governance practices in line with GEM listing rules and has complied with applicable governance code provisions[71]. - The audit committee has reviewed the unaudited consolidated financial statements for the relevant period[80]. - The company has not purchased, sold, or redeemed any of its listed securities during the nine months ending December 31, 2020[69]. - The company did not recommend the payment of an interim dividend for the relevant period[75]. - The company has not granted any share options under the share option scheme during the relevant period[77]. Future Plans and Developments - The company plans to enhance its revenue sources and explore new opportunities, particularly by providing furniture agency services for imports from Italy to China[53]. - The company has obtained a low-carbon care label, reflecting its commitment to sustainable development and social responsibility initiatives[52]. - The company operates three retail stores in Hong Kong and launched online sales in May 2019, expanding its market presence[40]. - The board has revised the use of unutilized funds considering the business environment and the group's development, particularly due to the political unrest in 2019 and the COVID-19 outbreak[56].

Financial Performance - The group's revenue for the six months ended September 30, 2020, was approximately HKD 43.8 million, a decrease of about HKD 2.9 million or 6.2% compared to the same period in 2019[3] - The total profit and comprehensive income for the group for the six months ended September 30, 2020, was approximately HKD 6.4 million, an increase of about HKD 1.7 million or 35.8% compared to the same period in 2019[3] - The basic and diluted earnings per share for the period was HKD 0.40, compared to HKD 0.30 for the same period in 2019[5] - The group's gross profit for the six months ended September 30, 2020, was HKD 30.9 million, compared to HKD 33.0 million for the same period in 2019[5] - Total revenue for the six months ended September 30, 2020, was HKD 43,783,000, a decrease of 6.4% from HKD 46,695,000 in the same period of 2019[25] - Furniture and home decor sales amounted to HKD 33,342,000, down 6.0% from HKD 35,487,000 in 2019[25] - Consulting revenue increased significantly to HKD 1,479,000, up 85.8% from HKD 796,000 in 2019[25] - The company's profit for the period increased by approximately 35.8% from about HKD 4.7 million to approximately HKD 6.4 million, mainly due to the increase in other income from government subsidies[50] Cash Flow and Assets - The net cash generated from operating activities for the six months ended September 30, 2020, was HKD 13.6 million, compared to a cash outflow of HKD 1.4 million in the same period in 2019[16] - The group's total assets less current liabilities as of September 30, 2020, was HKD 76.1 million, down from HKD 83.0 million as of March 31, 2020[9] - The group's cash and cash equivalents increased to HKD 26.9 million as of September 30, 2020, from HKD 16.3 million in the same period in 2019[16] - Trade receivables as of September 30, 2020, were HKD 37,016,000, down from HKD 43,811,000 as of March 31, 2020[33] - Trade receivables aged analysis showed a total of HKD 37.0 million as of September 30, 2020, compared to HKD 43.1 million as of March 31, 2020[35] Dividends and Equity - The group did not recommend the payment of an interim dividend for the six months ended September 30, 2020[3] - The total equity of the group as of September 30, 2020, was HKD 61.9 million, an increase from HKD 55.5 million as of March 31, 2020[9] - The company did not recommend any interim dividend for the period, consistent with the previous year[31] - The board of directors does not recommend the payment of an interim dividend for the relevant period[93] Expenses and Costs - The group's financial costs increased to HKD 386,000 for the six months ended September 30, 2020, compared to HKD 264,000 for the same period in 2019[5] - The company reported a decrease in selling and marketing expenses from approximately HKD 19.1 million to approximately HKD 18.1 million, a reduction of about 5.7%[46] - Administrative expenses decreased from approximately HKD 8.7 million to approximately HKD 7.9 million, a decline of about 9.2%[48] Government Support and Other Income - Other income, including government wage subsidies, totaled HKD 2,411,000, compared to HKD 455,000 in 2019[27] - The company received a wage subsidy from the Hong Kong government amounting to HKD 2,133,000 during the reporting period[27] - Other income increased significantly by approximately 429.9% from about HKD 0.5 million to approximately HKD 2.4 million, primarily due to wage subsidies from the Hong Kong government amounting to about HKD 2.1 million[45] Future Outlook and Strategy - The company anticipates continued challenges in the upcoming fiscal year due to a competitive retail environment and weakened consumer confidence in Hong Kong, exacerbated by the COVID-19 outbreak[68] - The company has launched an e-commerce store to create additional sales opportunities and is exploring growth opportunities in design and consulting services[68] - The company is seeking to enhance its revenue base by providing furniture agency services for imports from Italy, primarily targeting Chinese customers[68] - The company has identified a need to expand its revenue streams beyond its three TREE retail stores in Hong Kong[68] Shareholder Information and Corporate Governance - As of September 30, 2020, the major shareholder, Yu Ding, holds a 70.00% equity interest in the company, amounting to 1,108,800,000 shares[81] - The company has adopted a share option scheme to reward and retain high-quality employees, but no options have been granted under this scheme during the relevant period[94] - The audit committee has reviewed the unaudited consolidated financial statements for the relevant period[96] - The company has complied with the corporate governance code as per GEM Listing Rules, except for the separation of the roles of chairman and CEO[88] Market Performance and Growth - TREE HOLDINGS LIMITED reported a revenue increase of 15% year-over-year, reaching $150 million for the latest quarter[99] - The company achieved a user growth of 20%, bringing the total active users to 1.2 million[99] - Future outlook indicates a projected revenue growth of 25% for the next fiscal year, targeting $187.5 million[99] - New product launches are expected to contribute an additional $30 million in revenue, with a focus on innovative technology solutions[99] - Market expansion plans include entering two new regions, which are anticipated to increase market share by 10%[99] - The company is exploring strategic acquisitions to enhance its product portfolio and increase competitive advantage[99] - Research and development investment has increased by 30%, totaling $10 million, to drive innovation[99] - The gross margin improved to 45%, up from 40% in the previous year, reflecting better cost management[99] - Operating expenses were reduced by 5%, resulting in improved profitability metrics[99] - The company reaffirmed its commitment to sustainability initiatives, aiming for a 50% reduction in carbon footprint by 2025[99]

Financial Performance - The group's revenue for the three months ended June 30, 2020, was approximately HKD 19.3 million, a decrease of about HKD 2.8 million or 12.5% compared to HKD 22.1 million for the same period in 2019[4] - The total profit and comprehensive income for the group for the three months ended June 30, 2020, was approximately HKD 2.0 million, a decrease of about HKD 0.1 million or 4.3% compared to HKD 2.1 million for the same period in 2019[4] - The gross profit for the three months ended June 30, 2020, was HKD 13.9 million, down from HKD 15.8 million in the same period of 2019, reflecting a decrease of approximately 12.4%[6] - The company's profit for the period was approximately HKD 2.0 million, a decrease of about 4.3% from HKD 2.1 million in the same period last year[31] Earnings and Dividends - The basic and diluted earnings per share for the three months ended June 30, 2020, remained at HKD 0.13, unchanged from the same period in 2019[6] - The board of directors did not recommend the payment of an interim dividend for the three months ended June 30, 2020[4] - The company did not recommend any interim dividend for the period, consistent with the previous year[22] - The board does not recommend the payment of an interim dividend for the relevant period[71] Expenses - Selling and marketing expenses for the three months ended June 30, 2020, were HKD 8.3 million, down from HKD 9.1 million in the same period of 2019, reflecting a decrease of approximately 8.5%[6] - Administrative expenses and finance costs totaled HKD 3.7 million for the three months ended June 30, 2020, compared to HKD 4.5 million in the same period of 2019, showing a reduction of about 17.8%[6] - Administrative expenses decreased by approximately 19.5% to HKD 3.6 million from HKD 4.5 million in the previous year[29] Revenue Sources - Furniture and home decor sales amounted to HKD 16,048 thousand, down from HKD 16,227 thousand in the previous year, reflecting a decline of approximately 1.1%[35] - Commission income decreased significantly from HKD 3,882 thousand in 2019 to HKD 2,098 thousand in 2020, representing a drop of about 46%[35] - Direct sales revenue for the three months ended June 30, 2020, was approximately HKD 15.7 million, stable compared to HKD 15.7 million for the same period in 2019, primarily due to an increase in online sales revenue[41] - Distribution sales revenue for the same period was approximately HKD 0.3 million, a decrease of about HKD 0.2 million or 45.4% from HKD 0.5 million in 2019, attributed to reduced sales orders from Chinese distributors[41] - Distribution and licensing fee income for the three months ended June 30, 2020, was approximately HKD 0.8 million, accounting for about 4.1% of total revenue, compared to 3.6% in 2019[42] - Food and beverage revenue from TREE Café was approximately HKD 0.4 million for the three months ended June 30, 2020, down from HKD 0.8 million in 2019, mainly due to reduced customer traffic caused by COVID-19[43] Strategic Focus and Future Plans - The group continues to focus on its core business of furniture and home accessories sales and distribution, with no new product launches or significant market expansions reported during the period[10] - The company plans to expand its revenue streams by focusing on design and consulting services, and has launched an e-commerce store to generate sales around the clock[47] - The company aims to strengthen its income base by providing furniture agency services for imports from Italy, primarily targeting Chinese customers[47] - The company has identified the need to expand its sales network and enhance brand image and operational efficiency as part of its strategic initiatives[50] Shareholder Information - As of June 30, 2020, the company’s major shareholder, Mr. Tang, holds a 70.00% equity interest in the company[54] - As of June 30, 2020, the major shareholder, Yu Ding, holds 1,108,800,000 shares, representing 70.00% of the company's equity[59] Other Financial Information - The net proceeds from the IPO in January 2018 amounted to approximately HKD 20.3 million, with HKD 8.0 million remaining unutilized as of June 30, 2020[48] - The company expects to pay a future consideration of no less than approximately HKD 11.2 million related to the acquisition of a furniture agency within one month of the audited accounts date ending December 31, 2020[50] - The company has not purchased, sold, or redeemed any of its listed securities during the three months ending June 30, 2020[64] - The company has not granted any share options under the share option scheme during the relevant period[73] - The audit committee has reviewed the unaudited consolidated financial statements for the relevant period[75]