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].

Financial Performance - For the year ended March 31, 2023, the company reported significant financial results, with total revenue reaching HK$XXX million, reflecting a year-over-year growth of XX%[4] - The company achieved a net profit of HK$XXX million for the fiscal year, representing an increase of XX% compared to the previous year[4] - The company provided guidance for the next fiscal year, projecting revenue growth of XX% and a net profit margin of XX%[4] - The company reported a loss before income tax of HK$10,288,000 for the year, compared to a profit of HK$6,981,000 in 2022[137] - The group recorded a loss attributable to equity holders of approximately HK$11.1 million, following a negative impairment of goodwill of approximately HK$14.7 million from the acquisition of Italiving[142] - Revenue from external customers for the year ended March 31, 2023, was HK$78,194,000, a decrease of 18.5% from HK$95,913,000 in 2022[118] User and Market Growth - User data indicated a growth in active users, with the total number reaching XXX million, an increase of XX% year-over-year[4] - New product launches are expected to contribute an additional HK$XXX million in revenue, with anticipated market expansion into XX new regions[4] - Market expansion strategies include potential acquisitions, with the company identifying XX target companies for strategic growth[4] Revenue Recognition - Revenue for the year ended 31 March 2023 primarily derived from the sale, distribution, and rental of furniture and home accessories, as well as consumer loan services[43] - The Group recognizes revenue from furniture sales at a point in time upon delivery, while distribution and license fee income is recognized over time on a straight-line basis[43] - The Group follows a 5-step process for revenue recognition, including identifying contracts, performance obligations, and determining transaction prices[43] - The total transaction price for a contract is allocated among various performance obligations based on their relative stand-alone selling prices[43] Financial Assets and Liabilities - The Group's financial liabilities include trade and other payables, bank borrowings, lease liabilities, and contingent consideration payable[16] - Bank borrowings are initially measured at fair value, net of transaction costs, and subsequently stated at amortised cost using the effective interest method[18] - Trade and other payables are recognized initially at fair value and subsequently measured at amortised cost[18] - The Group's financial assets are measured at amortised cost if they meet specific conditions, including being held within a business model aimed at collecting contractual cash flows[16] Impairment and Goodwill - Goodwill and other intangible assets with indefinite useful life are tested for impairment at least annually[48] - Impairment loss is recognized immediately for the amount by which the asset's carrying amount exceeds its recoverable amount[48] - The Group tests annually for goodwill impairment, with recoverable amounts determined based on value in use calculations, which require estimates about future cash flows and discount rates[69] Employee Benefits and Expenses - The Group operates a defined contribution retirement benefit plan under the Mandatory Provident Fund Schemes Ordinance for all eligible employees, with contributions based on a percentage of employees' basic salaries[50] - Employee benefit expenses totaled HK$28,979,000 in 2023, compared to HK$28,076,000 in 2022, reflecting a growth of 3.2%[134] - Directors' emoluments for 2023 totaled HK$7,148,000, compared to HK$7,003,000 in 2022, reflecting a slight increase[183] Taxation - The income tax expense for the current year was HK$762,000, a decrease of 56.5% from HK$1,751,000 in the previous year[178] - The provision for Hong Kong Profits Tax is calculated at 16.5% of estimated assessable profits, with a two-tiered system for qualifying entities[180] Assets and Liabilities - The total assets of the company as of March 31, 2023, amounted to HK$XXX billion, reflecting a growth of XX%[4] - The carrying amount of trade and other receivables was HK$34,004,000, net of an expected credit loss (ECL) allowance of HK$110,000, compared to HK$36,316,000 in 2022, net of an ECL allowance of HK$490,000[76] - The net book amount of property, plant, and equipment as of March 31, 2023, was HK$13,810,000, a decrease from HK$14,123,000 as of March 31, 2022[188] Strategic Initiatives - The company remains optimistic about the economic recovery post-COVID-19 and aims to improve its competitive positioning[145] - The Group continues to explore growth opportunities and expand its product and service portfolio[147] - The acquisition of Super Easy Finance Limited in January 2022 is part of the Group's strategy to enhance its consumer loan services[142]

Company Performance - TREE Holdings Limited reported a strong performance with a focus on lifestyle furniture and home furnishings, establishing itself as a leading company in Hong Kong after eighteen years of operation[11]. - Despite market challenges, TREE Holdings is optimistic about continued economic recovery and aims to leverage growth opportunities to enhance its competitive advantage[14]. - The company will continue to invest in new product development and market expansion strategies to drive future growth[14]. - For FY2023, the total revenue of Tree Holdings Limited was approximately HK$78.2 million, a decrease of approximately HK$17.7 million compared to the previous year[26]. - The Group recorded a loss attributable to equity holders of approximately HK$11.1 million, following a negative impairment of goodwill of approximately HK$14.7 million from the acquisition of Italiving in 2018[26]. - The Group recorded a loss of approximately HK$11.1 million for FY2023, compared to a profit of approximately HK$5.2 million for FY2022[50]. - Revenue decreased to approximately HK$78.2 million for FY2023 from approximately HK$93.0 million for FY2022, representing a decrease of approximately 15.9% due to lower sales of furniture and home accessories[43]. - The total revenue from furniture and home accessories was HK$69.4 million, down from HK$80.9 million in the previous fiscal year[37]. Financial Reporting and Transparency - TREE Holdings is committed to maintaining accurate and complete financial reporting, as confirmed by its directors[3]. - The company’s financial summary and consolidated statements will be available for shareholders, reflecting its commitment to transparency[6]. - The Company does not recommend the payment of any final dividend for FY2023, consistent with FY2022[26]. - The Group's income tax expense decreased from approximately HK$1.8 million in FY2022 to approximately HK$0.9 million in FY2023, primarily due to a reduction in pre-tax losses[98]. - The Company has adopted a code of conduct for securities transactions by Directors, with full compliance reported for FY2023[131]. - The Board is responsible for approving consolidated financial statements and other disclosures required under GEM Listing Rules[136]. Market Environment and Challenges - The economic environment remains challenging post-COVID-19, with increased competition in the retail market due to aggressive discounting by retailers[14]. - The economic environment remains challenging as the market continues to recover from the COVID-19 pandemic[26]. - Future prospects indicate a challenging financial year ahead due to competitive retail market conditions and weak consumer confidence in Hong Kong[18]. Sales and Revenue Breakdown - Direct sales in Hong Kong generated revenue of HK$64.6 million, accounting for 93.1% of total revenue from furniture and home accessories[37]. - Online sales and non-retail sales contributed HK$3.6 million, representing 5.2% of total revenue from furniture and home accessories[37]. - Distribution sales via Shanghai Italiving amounted to HK$1.2 million, accounting for 1.7% of total revenue[37]. - Direct sales revenue for FY2023 was approximately HK$68.2 million, down 7.9% from HK$74.1 million in FY2022[65]. - The company did not generate any revenue from Shanghai Italiving for luxury Italian furniture sales in FY2023, compared to approximately HK$5.5 million in FY2022[65]. - Food and beverage income from TREE Café was approximately HK$3.4 million in FY2023, down from HK$3.8 million in FY2022[65]. Operational and Financial Risks - The Group faces operational risks, including competition in a fragmented market and dependency on customer preferences[81]. - The risk of not entering into long-term contracts with major suppliers exposes the Group to price fluctuations and supply shortages[81]. - The Group is also exposed to financial risks, including credit risk, liquidity risk, and interest rate risk[81]. Corporate Governance - TREE Limited's management emphasizes the importance of good corporate governance to maintain shareholder trust and long-term value creation[131]. - The Company has complied with the Corporate Governance Code during FY2023, except for one provision[131]. - The Board of Directors includes a balanced composition of Executive and Independent Non-Executive Directors to ensure independent judgment[133]. - The Company has established various Board committees to oversee business affairs and performance[133]. - The Company has taken out directors and officers liability insurance to cover liabilities arising from legal actions against the Directors[170]. Future Plans and Strategies - The Group plans to continue focusing on its two TREE retail stores and e-commerce platform in Hong Kong while expanding into furniture rental services[18]. - The company is considering potential acquisitions to bolster its portfolio, with a focus on companies that align with its strategic goals[124]. - The company is investing in R&D, allocating $X million towards the development of new technologies aimed at enhancing user experience[124]. - Market expansion efforts include strategic partnerships with D companies, expected to increase market share by E%[124]. - The Group aims to consolidate and invest to enhance existing revenue streams while identifying new opportunities[18]. Employee and Management Information - Total employees as of March 31, 2023, stood at 72, with remuneration policies based on performance and market conditions[18]. - The management team has extensive experience, with Ms. Or Wai Yan having over 17 years in merchandising and Ms. Lai Kei Yue over 10 years in digital marketing[125][126]. - The roles of Chairman and Chief Executive are currently held by Mr. Tong Tang Joseph, who delegates operational responsibilities to other Executive Directors[172]. Board Activities and Meetings - The Group held four Board meetings and one annual general meeting during FY2023, with all directors attending all Board meetings[138]. - The Audit Committee held four meetings during FY2023 to review the Company's consolidated financial results and internal control systems[179]. - The Board consists of seven members, including three independent non-executive directors and one female member, achieving the target of at least 20% executive directors[174].

Financial Performance - The group's revenue for the nine months ended December 31, 2022, was approximately HKD 62.9 million, a decrease of about HKD 10.2 million or 13.9% compared to the same period in 2021[12]. - The net profit attributable to equity holders for the nine months ended December 31, 2022, was approximately HKD 1.8 million, a decrease of about HKD 4.3 million or 70.8% compared to the same period in 2021[12]. - The total comprehensive income for the nine months ended December 31, 2022, was approximately HKD 1.7 million, a decrease of about HKD 4.4 million or 72.0% compared to the same period in 2021[12]. - The gross profit for the nine months ended December 31, 2022, was HKD 42.1 million, down from HKD 49.2 million in the same period of 2021[16]. - Basic earnings per share decreased to 0.11 HKD for the nine months ended December 31, 2022, compared to 0.38 HKD for the same period in 2021[26]. - The group reported a profit of approximately 1.8 million HKD for the period, a decrease of about 70.8% from approximately 6.0 million HKD for the nine months ended December 31, 2021[46]. Dividends and Shareholder Information - The board of directors does not recommend the payment of an interim dividend for the nine months ended December 31, 2022[12]. - The group did not recommend the payment of an interim dividend for the period, consistent with the previous year[27]. - The company has not proposed any interim dividend for the period[97]. - The company’s major shareholder, Yu Ding, holds a 47.09% equity interest in the company[92]. - Rothley Investment Limited owns 3.75% of the company's shares, fully owned by Ms. Babington[91]. Expenses and Costs - The group incurred administrative expenses of HKD 17.8 million for the nine months ended December 31, 2022, compared to HKD 15.7 million in the same period of 2021[16]. - The group's financial costs for the nine months ended December 31, 2022, were HKD 0.519 million, an increase from HKD 0.392 million in the same period of 2021[16]. - The group's administrative expenses increased by approximately 13.3% to about HKD 17.8 million for the nine months ended December 31, 2022, from approximately HKD 15.7 million for the same period in 2021[57]. Revenue Sources - Direct sales revenue from retail stores for the nine months ended December 31, 2022, was approximately HKD 53.2 million, a decrease of about HKD 3.3 million or 5.8% compared to approximately HKD 56.5 million for the same period in 2021[64]. - The revenue from food and beverage operations at the TREE Café decreased from approximately HKD 3.1 million for the nine months ended December 31, 2021, to about HKD 2.6 million for the same period in 2022[67]. - Commission income decreased from approximately HKD 7.4 million for the nine months ended December 31, 2021, to about HKD 6.2 million for the same period in 2022[68]. - The group recorded no revenue from the sale of luxury Italian furniture to Chinese customers through Shanghai Yita Meizhi for the nine months ended December 31, 2022, compared to approximately HKD 4.3 million for the same period in 2021[65]. Other Income and Government Support - The group’s other income for the nine months ended December 31, 2022, was HKD 5.1 million, compared to HKD 0.5 million in the same period of 2021[16]. - Other income increased from approximately 0.5 million HKD for the nine months ended December 31, 2021, to approximately 5.1 million HKD for the corresponding period, an increase of about 923.4%[55]. - The group received government subsidies amounting to approximately 1.6 million HKD during the period[55]. Market Environment and Strategy - The retail environment remains competitive, and consumer confidence continues to be affected by the ongoing COVID-19 pandemic, indicating challenges for the upcoming fiscal year[84]. - The company will focus on operating its two 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[84]. Corporate Governance and Compliance - The company has adhered to the corporate governance code as per GEM listing rules since its listing on January 25, 2018, except for code provision C.2.1[114]. - The board of directors has confirmed compliance with the securities trading code of conduct during the reporting period[119]. - No additional disclosures regarding interests or short positions in the company's shares were made by directors as of December 31, 2022[125]. Sustainability Efforts - The group has strengthened its commitment to sustainability by increasing tree planting efforts in partnership with Indonesian partners, having planted nearly 100,000 trees to date[71]. Business Operations - The group operates two "TREE" retail stores in Hong Kong and has launched online sales since May 2019, offering a variety of furniture and home decor products[47]. - The group acquired Easy Home Credit Limited, which primarily provides consumer loan services, in January 2022[60]. - The group has established multiple distribution agreements with Chinese distributors, with non-refundable annual fees of HKD 0.8 million and HKD 2.4 million for distribution rights in Hainan Province and Beijing, respectively[66]. Share Options and Leadership - The company has not granted any share options under the share option scheme during the period[98]. - The board believes that having the same person serve as both chairman and CEO provides strong and consistent leadership, enhancing efficiency in business decision-making[96].

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]