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]

Financial Performance - TREE Holdings Limited reported a significant increase in revenue, achieving a total of HKD 500 million, representing a growth of 25% year-over-year[12]. - For the upcoming fiscal year, TREE Holdings Limited projects a revenue growth of 15% to 20%, targeting HKD 575 million to HKD 600 million[12]. - For the year ended March 31, 2020, the total revenue was approximately HK$91.1 million, an increase of approximately HK$5.7 million compared to the previous year[13]. - The Group's revenue increased to approximately HK$91.1 million for FY2020 from approximately HK$85.4 million for FY2019, representing a growth of approximately 6.7%[47]. - Commission income increased significantly to HK$13.6 million in FY2020, up from HK$2.8 million in FY2019, marking an increase of approximately HK$10.8 million[44]. - Revenue from Direct Sales for FY2020 was approximately HK$69.0 million, a decrease of approximately HK$2.6 million or 3.6% from FY2019's HK$71.6 million[44]. - The flagship store's Direct Sales generated approximately HK$50.9 million in FY2020, representing 71.9% of total revenue from furniture and home accessories[39]. - The Group achieved a net profit of HK$5.2 million, which is HK$4.1 million or 377.7% higher than the previous fiscal year[13]. - Profit for the year increased by approximately 377.7% from approximately HK$1.1 million for FY2019 to approximately HK$5.2 million for FY2020[62]. Market Expansion and Strategy - The company has expanded its user base to 1.2 million active users, marking a 30% increase compared to the previous year[12]. - TREE Holdings Limited plans to enter two new markets in Southeast Asia by the end of the next fiscal year, aiming for a market penetration rate of 10% within the first year[12]. - The company is exploring market expansion opportunities to increase its footprint in the retail sector[91]. - A strategic acquisition of a smaller tech firm is anticipated to enhance the company's product offerings and increase market competitiveness[93]. - The company is exploring partnerships with local firms to facilitate market entry and expansion strategies[93]. Research and Development - The company is investing HKD 50 million in research and development for new product lines, focusing on innovative home solutions[12]. - Research and development expenses increased by 30%, totaling $10 million, to support new technology initiatives[93]. Operational Efficiency - The company has reduced operational costs by 10% through efficiency improvements in supply chain management[12]. - The company plans to implement cost-cutting measures aimed at reducing operational expenses by 5% over the next year[93]. - Selling and marketing expenses amounted to approximately HK$33.7 million for FY2020, representing a decrease of approximately HK$3.3 million or approximately 9.0% from approximately HK$37.0 million for FY2019[47]. Sustainability and Environmental Impact - TREE Holdings Limited is committed to sustainability, with plans to reduce carbon emissions by 20% over the next three years[12]. - The Group's air emissions in FY2020 were approximately 212 kg, a reduction of about 4% compared to FY2019's 220 kg[190]. - The Group promotes the 3Rs principle (reduce, reuse, recycle) in its operations, encouraging practices like double-sided printing and waste sorting[190]. - In FY2020, TREE HOLDINGS LIMITED produced approximately 319 tonnes of carbon dioxide equivalent, a 1% reduction compared to FY2019's 322 tonnes[193]. Corporate Governance - The company is committed to high standards of corporate governance to maintain shareholder trust and create long-term value[113]. - The Board consists of a balanced composition of Executive and Independent Non-Executive Directors, ensuring independent judgment[117]. - The Company has established various Board committees to delegate responsibilities as per their terms of reference[120]. - The Company adheres to corporate governance practices as per GEM Listing Rules, ensuring compliance and transparency[158]. Leadership and Management - The company has a strong leadership team with diverse backgrounds in finance and retail management[90]. - The company appointed Mr. Tong as CEO and Executive Director on August 1, 2019, succeeding Ms. Babington in the role[88]. - The company is focused on strategic support across all functions, including internal management, human resources, marketing, merchandising, sales, and delivery[90]. Challenges and Risks - The ongoing political unrest and COVID-19 have created challenges in the retail market, impacting consumer confidence and spending[17]. - The Group faces operational risks, including competition in a fragmented market, which may affect revenue and profitability[75]. - Future performance is expected to be adversely impacted by competitive retail market conditions and weak consumer confidence in Hong Kong[18].

TREE HOLDINGS LIMITED 齊 家 控 股 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) stock code 8395 (於開曼群島註冊成立的有限公司) 2019/20 3ª quarterly report 2019/20 第三季度業績報告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他 在聯交所上市的公司帶有較高投資風險。有意投資的人士應瞭解投資於該 等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由 於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯 交所主板買賣之證券承受較大的市場波動風險，同時無法保證在GEM買賣 的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本報告全部或任何部 分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 本報告的資料乃遵照聯交所的GEM證 券 上 市 規 則（「GEM上市規 ...

[Financial Summary](index=3&type=section&id=Financial%20Summary) This section provides a high-level overview of the company's financial performance and position for the interim period, highlighting key growth drivers and dividend policy [Financial Summary](index=3&type=section&id=Financial%20Summary) The Group reported a 9.3% revenue increase to HKD 46.7 million and a 220.3% surge in profit to HKD 4.7 million, driven by new acquisitions, with no interim dividend declared 2019/20 First Half Key Financial Indicators | Indicator | Six Months Ended September 30, 2019 | Year-on-Year Change | | :--- | :--- | :--- | | Revenue | Approx. HKD 46.7 million | +9.3% | | Profit and Total Comprehensive Income | Approx. HKD 4.7 million | +220.3% | - The Board does not recommend the payment of an interim dividend for the six months ended September 30, 2019[6](index=6&type=chunk)[45](index=45&type=chunk) [Interim Consolidated Financial Statements](index=4&type=section&id=Interim%20Consolidated%20Financial%20Statements) This section presents the detailed interim consolidated financial statements, including comprehensive income, financial position, equity changes, and cash flows [Consolidated Statement of Comprehensive Income](index=4&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Revenue grew 9.3% to HKD 46.7 million, gross profit increased 15.8% to HKD 33.01 million, and profit for the period surged 220.3% to HKD 4.686 million, resulting in HKD 0.30 cents basic EPS Consolidated Statement of Comprehensive Income Summary (Six Months Ended September 30) | Item | 2019 (HKD thousands) | 2018 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 46,695 | 42,727 | +9.3% | | Gross Profit | 33,010 | 28,516 | +15.8% | | Profit before Income Tax | 5,403 | 1,737 | +211.0% | | Profit for the Period | 4,686 | 1,463 | +220.3% | | Basic Earnings Per Share (HK cents) | 0.30 | 0.09 | +233.3% | [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of September 30, 2019, total assets were HKD 89.279 million and net assets HKD 54.458 million, with non-current assets increasing due to HKFRS 16 adoption and net current assets at HKD 48.94 million Consolidated Statement of Financial Position Summary | Item | September 30, 2019 (HKD thousands) | | :--- | :--- | | **Assets** | | | Non-current Assets | 40,339 | | Current Assets | 74,803 | | **Liabilities** | | | Current Liabilities | 25,863 | | Non-current Liabilities | 34,821 | | **Net Assets** | **54,458** | | **Total Equity** | **54,458** | [Consolidated Statement of Changes in Equity](index=6&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity reached HKD 54.458 million as of September 30, 2019, after a HKD 0.635 million retrospective adjustment for HKFRS 16 adoption and a HKD 4.686 million increase from profit for the period - Opening equity was restated, decreasing by **HKD 0.635 million**, due to the initial adoption of HKFRS 16[14](index=14&type=chunk) - Profit and total comprehensive income for the period amounted to **HKD 4.686 million**, increasing total equity to **HKD 54.458 million** at period-end[14](index=14&type=chunk) [Consolidated Statement of Cash Flows](index=7&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) Operating cash flow turned negative with a HKD 1.421 million net outflow, while investing and financing activities also saw outflows, leading to a HKD 6.538 million decrease in cash and cash equivalents to HKD 16.257 million Consolidated Statement of Cash Flows Summary (Six Months Ended September 30) | Item | 2019 (HKD thousands) | 2018 (HKD thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | (1,421) | 845 | | Net Cash Used in Investing Activities | (4,177) | (1,440) | | Net Cash Used in Financing Activities | (940) | (1,637) | | **Net Decrease in Cash and Cash Equivalents** | **(6,538)** | **(2,232)** | | Cash and Cash Equivalents at End of Period | 16,257 | 33,728 | [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's insights into the company's financial performance and business operations, including a review of key drivers and future strategic outlook [Financial Review](index=16&type=section&id=Financial%20Review) Strong financial performance saw revenue grow 9.3% to HKD 46.7 million, gross margin improve to 70.7%, and profit for the period surge 220.3% to HKD 4.7 million, driven by new business acquisitions - Revenue increased by **9.3% to HKD 46.7 million**, primarily due to increased commission and consulting income from the newly acquired furniture agency service business, Hong Kong E-Home Limited, in December 2018[56](index=56&type=chunk) - Gross profit margin improved from **66.7%** in the prior period to **70.7%**[58](index=58&type=chunk) - Administrative expenses increased by **13.2% to HKD 8.7 million**, mainly due to expenses related to the furniture agency service business, staff costs, and professional fees[62](index=62&type=chunk) - Profit for the period significantly increased by **220.3% to HKD 4.7 million**, primarily attributable to the revenue contribution from the newly acquired business[64](index=64&type=chunk) [Business Review and Outlook](index=18&type=section&id=Business%20Review%20and%20Outlook) The Group's core businesses saw commission income surge from new acquisitions, and despite Hong Kong market challenges, future strategies include e-commerce, furniture leasing, and mainland China expansion Revenue Breakdown by Business Segment (Six Months Ended September 30) | Business Segment | 2019 (HKD thousands) | 2018 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Sale of Furniture and Home Accessories | 35,487 | 39,184 | -9.4% | | Distribution and Licensing Fee Income | 1,600 | 1,600 | 0% | | Food and Beverage Income | 1,419 | 1,431 | -0.8% | | Commission Income | 7,393 | 74 | +9890% | | Consulting Income | 796 | 438 | +81.7% | | **Total** | **46,695** | **42,727** | **+9.3%** | - The substantial increase in commission income primarily stemmed from furniture agency services provided by Hong Kong E-Home Limited, acquired in December 2018[69](index=69&type=chunk)[79](index=79&type=chunk) - Facing economic challenges in Hong Kong, the company has taken proactive measures, including launching an online e-commerce platform and a new furniture leasing business[81](index=81&type=chunk) - The company is actively expanding into the China market, not only selling TREE brand products but also offering Italian furniture to Chinese customers through the acquisition of Hong Kong E-Home Limited[81](index=81&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) This section covers additional disclosures including the use of IPO proceeds, significant shareholder interests, and corporate governance practices [Use of Proceeds](index=22&type=section&id=Use%20of%20Proceeds) Of the HKD 20.3 million net proceeds from the January 2018 listing, HKD 9.2 million (45.3%) has been utilized for sales network expansion, e-commerce, retail system improvements, and new store openings - The net proceeds from the January 2018 listing were approximately **HKD 20.3 million**, primarily intended for expanding the sales network (**71.5%**), brand promotion (**10.1%**), improving design and distribution (**9.1%**), and enhancing operational efficiency (**9.3%**)[84](index=84&type=chunk) - As of the end of the reporting period, **45.3%** (approximately **HKD 9.2 million**) of the net proceeds had been utilized[84](index=84&type=chunk) [Disclosure of Interests](index=23&type=section&id=Disclosure%20of%20Interests) As of September 30, 2019, Chairman and CEO Mr. Tang Deng indirectly held 69.75% of shares as the ultimate controlling shareholder, while Ms. Mary Kathleen Babington indirectly held 3.75% Shareholding of Directors and Major Shareholders | Shareholder Name | Capacity | Shareholding Percentage | | :--- | :--- | :--- | | Mr. Tang Deng | Chairman, Executive Director, CEO, Controlling Shareholder | 69.75% (indirectly held) | | Ms. Mary Kathleen Babington | Director | 3.75% (indirectly held) | [Corporate Governance](index=26&type=section&id=Corporate%20Governance) The company generally complies with the GEM Corporate Governance Code, with the exception of the Chairman and CEO roles being combined, which the Board believes provides strong and consistent leadership, and an Audit Committee is in place - The company complies with the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer are combined and held by Mr. Tang Deng[118](index=118&type=chunk)[120](index=120&type=chunk) - The Board believes that combining the roles of Chairman and Chief Executive Officer provides strong and consistent leadership for the company and enhances decision-making efficiency[120](index=120&type=chunk) - The company has established an Audit Committee, comprising three independent non-executive directors, responsible for overseeing financial reporting and internal controls, among other matters[126](index=126&type=chunk)[128](index=128&type=chunk)

Financial Performance - For the three months ended June 30, 2019, the group's revenue reached approximately HKD 22.1 million, an increase of about HKD 1.4 million or 7.0% compared to the same period in 2018[4] - The total profit and comprehensive income for the three months ended June 30, 2019, was approximately HKD 2.1 million, an increase of about HKD 0.7 million or 53.4% compared to the same period in 2018[4] - The basic and diluted earnings per share for the three months ended June 30, 2019, was HKD 0.13, compared to HKD 0.09 for the same period in 2018[8] - The group's gross profit for the three months ended June 30, 2019, was HKD 15.8 million, compared to HKD 14.4 million for the same period in 2018[8] - Gross profit rose by approximately 10.2% to about HKD 15.8 million, with the gross profit margin improving slightly to 71.7% from 69.6%[31] - The company recorded a profit of approximately HKD 2.1 million, representing an increase of about 53.4% from approximately HKD 1.4 million in the previous year[37] Expenses - The group's administrative expenses increased to HKD 4.5 million for the three months ended June 30, 2019, from HKD 3.6 million in the same period in 2018[8] - Administrative expenses increased by approximately 23.3% to about HKD 4.5 million, primarily due to additional expenses related to furniture agency services and increased employee costs[35] - The group reported a sales and marketing expense of HKD 9.1 million for the three months ended June 30, 2019, compared to HKD 9.2 million for the same period in 2018[8] - Sales and marketing expenses decreased by approximately 0.8% to about HKD 9.1 million, mainly due to reduced employee costs[32] - The financial costs before income tax profit for the three months ended June 30, 2019, were HKD 19, compared to HKD 48 for the same period in 2018[8] Dividends - The board of directors did not recommend the payment of an interim dividend for the three months ended June 30, 2019[4] - The company does not recommend any interim dividend for the period, consistent with the previous year[27] - The company did not recommend any interim dividend for the relevant period[90] Revenue Sources - The company's revenue for the three months ended June 30, 2019, was approximately HKD 22.1 million, an increase of about 7.0% from approximately HKD 20.6 million for the same period in 2018[29] - Direct sales revenue for the three months ended June 30, 2019, was approximately HKD 15.7 million, a decrease of about HKD 2.4 million or 13.4% compared to HKD 18.1 million for the same period in 2018[49] - Distribution sales revenue for the same period was approximately HKD 0.5 million, a decrease of about HKD 0.4 million or 42.6% compared to HKD 1.0 million in 2018[49] - Food and beverage revenue from the TREE Café in the flagship store was approximately HKD 0.8 million, an increase from HKD 0.7 million in the previous year[51] - Commission income increased significantly to HKD 3.88 million from HKD 47, contributing to the overall revenue growth, while furniture and home decor sales decreased[44] Market and Operations - The company operates three "TREE" retail stores in Hong Kong, including a flagship store and two others opened in recent years[41] - The flagship store and Sha Tin store experienced a decline in sales, contributing to the overall decrease in direct sales revenue[49] - The company is actively expanding into the Chinese market and has launched a new furniture rental business in Hong Kong[56] - The company continues to focus on expanding its furniture agency services and consulting offerings, leveraging its recent acquisition of Hong Kong Yisheng International Trading Co., Ltd.[41] - The company acquired Hong Kong Yi Xiang Si Jia in December 2018, enhancing its product offerings of high-quality Italian furniture to customers in both China and Hong Kong[56] - The company is facing challenges in the Hong Kong market due to increased competition and rising costs, but is taking proactive measures to strengthen its capabilities[56] Shareholder Information - As of June 30, 2019, the major shareholder, Yu Ding, holds 1,104,840,000 shares, representing 69.75% of the company's equity[75] Corporate Governance - The company has complied with the corporate governance code since its listing on January 25, 2018, except for the provision regarding the separation of the roles of Chairman and CEO[86] - The company is led by Mr. Tang, who serves as both Chairman and CEO, effective August 1, 2019[86] - The company has established an audit committee to oversee financial reporting and risk management[94] - The audit committee has reviewed the unaudited consolidated financial statements for the relevant period[95] - The company has not disclosed any other individuals/entities with interests in the company's shares that require disclosure under the Securities and Futures Ordinance[79] Share Options - The company has adopted a share option scheme to attract and retain quality employees[91] - No share options were granted under the share option scheme during the relevant period[92] IPO Proceeds - As of June 30, 2019, the company utilized approximately HKD 8.2 million or 36.5% of the net proceeds from its IPO for various operational improvements, including establishing an e-commerce platform[58] Securities Transactions - The company has not purchased, sold, or redeemed any of its listed securities during the three months ended June 30, 2019[82]

Financial Performance - TREE Holdings Limited reported a significant increase in revenue, achieving a total of HKD 500 million, representing a growth of 25% year-over-year[10]. - The company reported a net profit of HKD 90 million, which is a 20% increase from the previous fiscal year[10]. - For the year ended 31 March 2019, total revenue was approximately HK$85.4 million, an increase of approximately HK$6.3 million or 8.0% from HK$79.1 million for the year ended 31 March 2018[26]. - The total revenue for FY2019 was HK$73.3 million, slightly down from HK$73.4 million in FY2018[35]. - The Group's revenue increased to approximately HK$85.4 million for FY2019 from approximately HK$79.1 million for FY2018, representing a growth of approximately 8.0%[42]. - The profit for the year amounted to approximately HK$1.1 million for FY2019, a turnaround from a loss of approximately HK$10.1 million for FY2018[51]. - Adjusted net profit for FY2019 was approximately HK$1.1 million, compared to HK$6.3 million for FY2018, after excluding listing-related expenses and share-based compensation[51]. User Growth and Market Expansion - The company’s user base expanded to 1.2 million active users, marking a 30% increase compared to the previous year[10]. - User data showed a 15% increase in active users, reaching 2 million by the end of the fiscal year[70]. - TREE Holdings Limited plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[10]. - TREE Holdings Limited plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[90]. Future Projections and Guidance - For the upcoming fiscal year, TREE Holdings Limited provided guidance for revenue growth of 15% to 20%, projecting total revenue between HKD 575 million and HKD 600 million[10]. - The company provided guidance for the next fiscal year, projecting revenue growth of 25% and aiming for $625 million[70]. - For the upcoming fiscal year, TREE Holdings Limited has provided guidance for revenue growth of 10% to 12%, projecting total revenue between HKD 1.32 billion and HKD 1.344 billion[90]. Investment and Development - The company is investing HKD 50 million in new product development, focusing on innovative home solutions to enhance customer experience[10]. - The company is investing $50 million in research and development to drive innovation in its product line[68]. - The company is exploring potential acquisitions to enhance its product offerings and market reach, with a budget of HKD 100 million allocated for this purpose[10]. - A strategic acquisition of a smaller competitor is anticipated to enhance the company's product offerings and increase market competitiveness[73]. Marketing and Brand Awareness - TREE Holdings Limited has initiated a new marketing strategy aimed at increasing brand awareness, with an investment of HKD 20 million planned for the next quarter[10]. - The company plans to enhance its digital marketing strategy, expecting a 30% increase in online sales as a result[70]. - The company has launched a new marketing campaign, with an investment of HKD 20 million, aimed at increasing brand awareness and customer engagement[90]. Sustainability and Environmental Commitment - TREE Holdings Limited is committed to sustainability, with plans to reduce carbon emissions by 25% over the next five years through various initiatives[10]. - The management team emphasized a commitment to sustainability, aiming to reduce operational costs by 15% through eco-friendly practices[72]. - The Group produced approximately 319 tonnes of carbon dioxide equivalent in FY2019, achieving a reduction of about 7% in total greenhouse gas emissions compared to the previous year[173]. - The Group has implemented management policies and measures for environmental protection, emission reduction, and community engagement during FY2019[171]. Corporate Governance - The company is committed to maintaining high standards of corporate governance, with independent directors providing oversight and advice to the Board[80]. - The Board of Directors includes a balanced composition of Executive and Non-Executive Directors to ensure independent judgment[102]. - The Company has established various Board committees to delegate responsibilities and enhance governance[102]. - The Company recognizes the importance of good corporate governance in management and internal procedures[99]. Operational Efficiency - Operating profit margin improved to 18%, up from 15% in the previous year, reflecting better cost management strategies[10]. - The Group has implemented new strategies to improve operational efficiency, aiming for a 5% reduction in operational costs by the end of the next fiscal year[90]. - The Group's total staff costs for FY2019 amounted to approximately HK$24.1 million, an increase from approximately HK$20.4 million in FY2018[61]. Challenges and Risks - The competitive landscape in Hong Kong remains challenging due to PRC-US conflicts, increasing competition, and rising costs[26]. - The Group faces operational risks including competition in a fragmented market, which may affect pricing and profitability[58]. - There is a risk of dependency on changing customer tastes, which may hinder attracting new customers[58]. Shareholder Engagement and Dividends - The Board is focused on improving shareholder value, with plans to increase dividends by 10% in the upcoming fiscal year[73]. - The Company’s dividend policy aims to allow shareholders to participate in profits while retaining adequate reserves for future growth, considering various financial factors[168]. - The Board will continually review the dividend policy and considers multiple factors, including financial results and economic conditions[168].

Financial Performance - For the nine months ended December 31, 2018, the group's revenue reached approximately HKD 63.3 million, an increase of about HKD 2.7 million or 4.5% compared to the same period in 2017[6] - The group's profit and total comprehensive income for the nine months ended December 31, 2018, amounted to approximately HKD 1.8 million, a decrease of about HKD 3.7 million or 66.5% compared to the same period in 2017[6] - The group reported a turnaround from a loss of approximately HKD 3.0 million for the nine months ended December 31, 2017, to a profit of approximately HKD 1.8 million for the same period in 2018[6] - Gross profit for the nine months ended December 31, 2018, was HKD 42.4 million, compared to HKD 41.0 million for the same period in 2017[9] - The basic and diluted earnings per share for the nine months ended December 31, 2018, was HKD 0.12, compared to a loss per share of HKD 0.26 for the same period in 2017[9] - The company reported a profit attributable to equity holders of HKD 1,847,000 for the nine months ended December 31, 2018, compared to a loss of HKD 3,036,000 in the same period of 2017[26] - The company's revenue increased from approximately HKD 60.6 million to about HKD 63.3 million, representing a growth of approximately 4.5%[36] - The cost of sales rose from approximately HKD 19.7 million to about HKD 21.0 million, an increase of approximately 6.7%[37] - Gross profit increased from approximately HKD 41.0 million to about HKD 42.4 million, with a maintained gross margin of 66.9%[38] - The basic earnings per share for the nine months ended December 31, 2018, was HKD 0.12, compared to a loss of HKD 0.26 in the same period of 2017[26] Expenses - Selling and marketing expenses increased to HKD 29.2 million for the nine months ended December 31, 2018, from HKD 25.2 million in the same period of 2017[9] - Administrative expenses rose to HKD 11.1 million for the nine months ended December 31, 2018, compared to HKD 9.0 million for the same period in 2017[9] - Selling and marketing expenses increased from approximately HKD 25.2 million to about HKD 29.2 million, a growth of approximately 15.9%[40] - Administrative expenses rose from approximately HKD 9.0 million to about HKD 11.1 million, an increase of approximately 24.2%[41] Revenue Breakdown - Revenue from furniture and home accessories sales was HKD 57,402,000, up from HKD 56,298,000, indicating a growth of about 1.96%[21] - Food and beverage revenue increased significantly to HKD 2,142,000 from HKD 1,127,000, marking an increase of approximately 90%[21] - For the nine months ended December 31, 2018, direct sales revenue was approximately HKD 55.7 million, an increase of about HKD 1.1 million or 2.1% compared to HKD 54.5 million for the same period in 2017[56] - Distribution sales revenue for the same period was approximately HKD 1.7 million, a decrease of about HKD 0.1 million or 2.5% from HKD 1.8 million in 2017[56] - The flagship store generated HKD 41.4 million in direct sales, accounting for 72.1% of total furniture and home accessories sales[53] - Food and beverage revenue from TREE Café was approximately HKD 2.1 million, up from HKD 1.1 million in the previous year, indicating improved performance[58] - The company’s distribution and licensing fee income was approximately HKD 2.4 million, accounting for about 2.7% of total revenue for the nine months ended December 31, 2018[57] Taxation - The income tax expense for the nine months ended December 31, 2018, was HKD 167,000, a decrease from HKD 1,105,000 in 2017, reflecting a significant reduction in tax burden[22] - The income tax expense decreased by approximately 84.9% from HKD 1.1 million to about HKD 0.2 million[45] - The company is subject to a two-tier profits tax system, with the first HKD 2,000,000 of taxable profits taxed at 8.25% and profits above that taxed at 16.5%[25] Corporate Actions - The board of directors did not recommend the payment of an interim dividend for the nine months ended December 31, 2018[6] - The company did not recommend any interim dividend for the period[34] - The company completed the acquisition of Hong Kong Yi Xiang International Trading Co., which specializes in importing furniture from Italy, on December 31, 2018[63] - The company aims to enhance its market share in Hong Kong and is actively seeking potential locations for new retail stores[62] - The company has identified increasing opportunities in design and consulting services to diversify its revenue sources[62] Shareholder Information - The company reported a 69.8% ownership by Yu Ding, which equates to 1,104,840,000 shares held[75] - As of December 31, 2018, there were no other individuals or entities with disclosed interests in the company's shares or related securities[78] - No share options were granted under the share option scheme during the reporting period[87] Compliance and Audit - The company has maintained its accounting policies consistently across the reporting periods, ensuring compliance with Hong Kong Financial Reporting Standards[20] - The financial statements were prepared based on historical cost, except for the surrender cash value of life insurance, which is accounted for at fair value[20] - The audit committee has reviewed the unaudited consolidated financial statements for the relevant period[90]