Financial Performance - For the nine months ended September 30, 2020, the group's revenue was approximately HKD 212.8 million, a decrease of about 8.5% compared to the same period last year[8]. - The group's gross profit for the same period was approximately HKD 66.7 million, down approximately 24.7% year-on-year, with a gross margin declining from 38.1% to 31.3%[8]. - Profit attributable to equity holders for the nine months was approximately HKD 27.3 million, representing a decrease of about 23.8% compared to the previous year[8]. - Earnings per share for the nine months was approximately HKD 0.0682, down about 23.8% year-on-year[9]. - The group has seen an increase in revenue from its cosmetic bag segment, which has helped offset declines in other areas due to the pandemic[11]. - The revenue from beauty and hand sanitizer products increased by approximately HKD 18.5 million to about HKD 195.6 million, while the revenue from cosmetic bags significantly decreased by approximately HKD 38.2 million to about HKD 17.2 million[17]. - The net profit attributable to the owners of the company for the three months ended September 30, 2020, was HKD 17,483 thousand, a decrease of 37.5% from HKD 27,949 thousand in the same period of 2019[44]. - The company reported a total comprehensive income of HKD 27,294 thousand for the nine months ended September 30, 2020, compared to HKD 33,332 thousand in the same period of 2019[44]. - The operating profit before tax for the nine months ended September 30, 2020, was HKD 32,303 thousand, down from HKD 43,952 thousand in the previous year[41]. - The company’s total comprehensive income for the three months ended September 30, 2020, was HKD 17,483 thousand, compared to HKD 25,476 thousand in the same period of 2019[44]. - The company’s total revenue for the three months ended September 30, 2020, was HKD 125,066 thousand, a decrease of 12.1% from HKD 142,175 thousand in the same period of 2019[116]. Dividend and Shareholder Returns - The board did not recommend any interim dividend for the nine months ended September 30, 2020[9]. - No interim dividend was recommended for the nine months ended September 30, 2020, consistent with the previous year[126]. - The basic earnings per share for the nine months ended September 30, 2020, remained unchanged as there were no potential dilutive ordinary shares outstanding[127]. Operational Strategy and Market Response - The group continues to focus on beauty and health products, including hand sanitizers, in response to increased market demand due to the pandemic[11]. - The group is cautious about the impact of the COVID-19 pandemic and U.S.-China trade tensions on its operations and profitability[12]. - The company plans to enhance sales and reduce costs through its competitive pricing strategy to maintain overall profitability and create shareholder value[12]. - The group will continue to assess its business, operational, and financing strategies in response to the pandemic's impact, including prudent cost control measures and cash retention plans[12]. Expenses and Financial Ratios - Administrative expenses for the nine months ended September 30, 2020, were approximately HKD 24.1 million, a decrease of about 13.1% from HKD 27.8 million in the same period last year[22]. - Sales expenses for the nine months ended September 30, 2020, were approximately HKD 12.9 million, down about 44.9% from HKD 23.4 million in the previous year[26]. - The group's cash and cash equivalents as of September 30, 2020, were approximately HKD 80.8 million, down from HKD 107.7 million as of June 30, 2020[21]. - The current ratio as of September 30, 2020, was approximately 4.1 times, compared to 5.0 times as of June 30, 2020[21]. Corporate Governance and Compliance - The company has adhered to the corporate governance code as per GEM listing rules throughout the reporting period[170]. - There were no reported conflicts of interest involving directors or major shareholders as of September 30, 2020[168]. - The company has implemented a code of conduct regarding securities trading for its directors and employees, ensuring compliance with GEM listing rules[173]. - The audit committee, established on September 29, 2017, consists of three independent non-executive directors and is responsible for reviewing the company's financial reporting and internal controls[178]. Shareholder Structure - The company reported a total of 300,000,000 shares held by Classic Charm Investments Limited, representing 75.00% of the voting shares issued[162]. - The beneficial ownership of the shares is distributed among Mr. Ke Long (50.8%), Ms. Zhu Shaofang (39.7%), and Ms. Chen Kai Xin (9.5%)[162]. - No other directors or major shareholders were reported to have any interests or positions in the company's shares as of September 30, 2020[166]. Other Notable Information - The company has not entered into any arrangements for the acquisition of shares or debt securities by directors or key executives during the nine months ended September 30, 2020[139]. - The company has not disclosed any new product developments or market expansion strategies in the current reporting period[164]. - There were no acquisitions or mergers reported during the nine-month period ending September 30, 2020[164]. - No shares were repurchased by the company or its subsidiaries during the nine months ended September 30, 2020[177]. - There were no changes to the company's articles of association during the nine months ended September 30, 2020[179]. - No significant events related to the group's operations or financial performance were noted by the directors after the nine months ended September 30, 2020[180].

Financial Performance - For the six months ended June 30, 2020, the group's revenue was approximately HKD 87.7 million, a decrease of about 2.9% compared to the same period last year[12]. - The group's gross profit for the same period was approximately HKD 30.2 million, an increase of about 1.7% year-on-year, with a gross margin rising from approximately 32.9% to 34.5%[12]. - Profit attributable to equity holders for the six months ended June 30, 2020, was approximately HKD 9.8 million, an increase of about 24.9% compared to the previous year[12]. - Earnings per share for the same period were approximately HKD 0.025, reflecting an increase of about 25.0% year-on-year[13]. - Revenue for the six months ended June 30, 2020, was HKD 87,732, a decrease of 2% compared to HKD 90,359 for the same period in 2019[39]. - Gross profit for the six months ended June 30, 2020, increased to HKD 30,247, up 1.7% from HKD 29,754 in 2019[39]. - The company reported a net profit of HKD 9,811,000 for the six months ended June 30, 2020, up from HKD 7,856,000 in 2019, representing a growth of 25%[60]. Revenue Breakdown - Revenue from beauty products increased by approximately HKD 31.4 million to about HKD 72.6 million, while revenue from cosmetic bags decreased significantly by about HKD 34.0 million to approximately HKD 15.2 million[18]. - The company’s external customer revenue from beauty products was HKD 72,566,000, while revenue from cosmetic bags was HKD 15,166,000 for the six months ended June 30, 2020[60]. - Revenue from the United States for the six months ended June 30, 2020, was HKD 67,037,000, a decrease of 21.3% compared to HKD 85,152,000 in 2019[64]. Challenges and Strategies - The group continues to face challenges due to the COVID-19 pandemic and the US-China trade tensions, impacting customer order behavior[15]. - The company has launched customized beauty and health products, including hand sanitizers, to capture market demand arising from increased health awareness due to the pandemic[17]. - Future strategies include stricter cost control, cash retention plans, and potential postponement of capital expenditures in response to the ongoing pandemic[17]. - The group faces significant risks due to the COVID-19 pandemic, which has negatively impacted sales and profitability, particularly affecting retail customers[87]. - Labor shortages and rising labor costs in China pose a risk to the group’s operational efficiency and expansion plans[89]. Cash and Assets - As of June 30, 2020, the group had cash and cash equivalents of approximately HKD 107.7 million, a decrease from approximately HKD 114.2 million as of December 31, 2019[22]. - Total assets as of June 30, 2020, amounted to HKD 262,436, an increase from HKD 254,257 as of December 31, 2019[45]. - Cash and cash equivalents decreased by HKD 6,496,000 during the period, ending with HKD 107,748,000 as of June 30, 2020, compared to HKD 99,853,000 in 2019[50]. Expenses and Liabilities - Administrative expenses decreased to approximately HKD 15.8 million from about HKD 16.1 million in the same period of 2019[23]. - The total employee cost for the six months ended June 30, 2020, was approximately HKD 9.8 million, reflecting an increase due to salary adjustments and an increase in the number of employees[38]. - Total liabilities as of June 30, 2020, were HKD 51,674, a slight decrease from HKD 53,306 at the end of 2019[45]. Shareholder Information - The company did not recommend the payment of any interim dividend for the six months ended June 30, 2020[13]. - Major shareholders include Classic Charm Investments Limited, which holds 300,000,000 shares, representing 75.00% of the voting shares[103]. - The beneficial ownership of Classic Charm Investments Limited is divided among three individuals: 50.8% by Mr. Ko, 39.7% by Ms. Zhu, and 9.5% by Ms. Chan[103]. Corporate Governance - The company has complied with all provisions of the corporate governance code as per GEM Listing Rules Appendix 15 during the six months ended June 30, 2020[111]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial information for the six months ended June 30, 2020[121]. - The independent non-executive directors did not attend the annual general meeting due to travel restrictions caused by the COVID-19 pandemic[112].

Financial Performance - For the three months ended March 31, 2020, the group's revenue was approximately HKD 25.3 million, a decrease of about 46.2% compared to the same period last year[13]. - The group's gross profit for the same period was approximately HKD 8.4 million, down about 47.7% year-on-year[13]. - Profit attributable to equity holders for the three months ended March 31, 2020, was approximately HKD 1.0 million, a decrease of about 77.8% compared to the previous year[13]. - Earnings per share for the same period was approximately HKD 0.2 cents, down about 81.8% year-on-year[13]. - The profit before tax for the three months ended March 31, 2020, was HKD 2,227,000, down from HKD 3,273,000 in the same period of 2019, representing a decline of approximately 32%[63]. - The total comprehensive income for the three months ended March 31, 2020, was HKD 140,374,000, compared to HKD 201,908,000 for the same period in 2019, indicating a decrease of approximately 30%[54]. Revenue Breakdown - The revenue breakdown for the three months ended March 31, 2020, showed beauty products contributing HKD 22.48 million (88.9%) and cosmetic bags contributing HKD 2.81 million (11.1%) to total revenue[21]. - For the three months ended March 31, 2020, the revenue from beauty products and cosmetic bags was HKD 25,293,000, a decrease of 46% compared to HKD 47,056,000 for the same period in 2019[60]. - The decrease in revenue was primarily due to fewer sales orders resulting from additional tariffs from the US-China trade war and the outbreak of COVID-19[21]. Cost Control and Economic Impact - The group faced challenges in obtaining orders from existing customers due to the ongoing trade war and the impact of the COVID-19 pandemic[15]. - The group is implementing various cost control measures to mitigate the financial impact of the COVID-19 pandemic on its cash flow[15]. - The group anticipates adverse economic consequences from the COVID-19 pandemic on its operations for the second quarter ending June 30, 2020[16]. Cash and Expenses - The group maintained a stable level of cash and cash equivalents at approximately HKD 120.0 million as of March 31, 2020, compared to approximately HKD 114.2 million as of December 31, 2019[24]. - The current ratio as of March 31, 2020, was approximately 7.8 times, up from approximately 4.7 times as of December 31, 2019[24]. - Administrative expenses decreased by approximately HKD 0.3 million or about 3.6% to approximately HKD 8.1 million for the three months ended March 31, 2020[25]. - Selling expenses decreased by approximately HKD 1.5 million or about 52.2% to approximately HKD 1.4 million for the same period[26]. Share Options and Ownership - The company has adopted a share option scheme to attract and retain qualified individuals, which was approved on September 29, 2017[71]. - The total number of shares issued by the company is 400,000,000, with an additional 40,000,000 shares potentially to be issued under the share option scheme, representing 10% of the issued share capital[74]. - The share option plan is valid for 10 years from the adoption date until September 28, 2027, and options can be exercised at any time within this period[76]. - The maximum exercise price for the share options will not be less than the higher of the closing price on the offer date or the average closing price over the five trading days preceding the offer date[77]. - The beneficial ownership of 300,000,000 shares is held by Classic Charm Investments Limited, with Mr. Ko, Ms. Zhu, and Ms. Chan owning 50.8%, 39.7%, and 9.5% respectively[85]. - Mr. Ko holds a 75% interest in the company through Classic Charm Investments Limited[84]. Dividends and Acquisitions - The group did not declare any interim dividend for the three months ended March 31, 2020[35]. - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the three months ended March 31, 2020[40]. - The company did not declare any interim dividend for the three months ended March 31, 2020, nor for the same period in 2019[68]. Audit and Compliance - The audit committee reviewed the accounting principles and practices adopted by the group and discussed the unaudited financial information for the first quarter ending March 31, 2020[102]. - The company has established a non-competition agreement allowing certain parties to hold 30% or more of the issued shares without engaging in competing businesses[92]. - As of March 31, 2020, there were no reported conflicts of interest involving directors or major shareholders in competing businesses[93].

Financial Performance - For the fiscal year ending December 31, 2019, Takbo Group Holdings Limited reported revenue of HKD 266,415,000, representing a 2.9% increase from HKD 258,782,000 in 2018[15]. - The gross profit for the same period was HKD 98,850,000, which is a 12.9% increase from HKD 87,521,000 in the previous year, resulting in a gross margin of 37.1%[15]. - Net profit for the year was HKD 33,053,000, reflecting a 2.5% increase compared to HKD 32,249,000 in 2018[15]. - Earnings per share increased to HKD 0.083, up from HKD 0.081, marking a 2.5% growth[15]. - For the year ended December 31, 2019, the company's revenue was approximately HKD 266.4 million, an increase of about 2.9% compared to the previous year[19]. - The gross profit for the year ended December 31, 2019, was approximately HKD 98.9 million, representing a 12.9% increase, with the gross profit margin rising from approximately 33.8% to 37.1%[20]. - The company's net cash and cash equivalents as of December 31, 2019, were approximately HKD 114.2 million, up from HKD 103.6 million in 2018[21]. - Administrative expenses increased by approximately HKD 10.4 million (or about 34.5%) to approximately HKD 40.6 million for the year ended December 31, 2019[23]. - Sales expenses rose by approximately HKD 4.2 million (or about 16.6%) to approximately HKD 29.6 million, primarily due to increased tariff costs for products shipped to the United States[24]. - The company had no outstanding borrowings or other debts as of December 31, 2019, resulting in no debt-to-asset ratio being presented[21]. Business Strategy and Market Conditions - The company faced challenges due to the US-China trade war and local social unrest but managed to achieve stable growth by strengthening relationships with existing clients and participating in local and global beauty exhibitions[9][12]. - The overall economic uncertainty and challenges from the trade war did not deter the majority of US clients from sourcing products from China due to high-quality standards[12]. - Takbo Group's core business and revenue structure remained unchanged during the fiscal year, focusing on the design, development, production, and sales of beauty products and cosmetic bags[13]. - The company engaged in various marketing activities and exhibitions, including the China Beauty Expo 2019 in Shanghai, to secure more contracts despite economic difficulties[13]. - The company negotiated with US clients to share the burden of additional tariffs, receiving positive feedback that contributed to stable business performance[13]. Human Resources and Employee Management - The company employed 160 full-time employees as of December 31, 2019, an increase from 139 employees in the previous year[36]. - The total employee costs for the year ended December 31, 2019, were approximately HKD 20.6 million, compared to HKD 16.1 million in the previous year[36]. - Employee talent is considered the most valuable asset, with efforts made to create a supportive work environment and competitive compensation[75]. Corporate Governance and Management - The company has a strong management team with over 17 years of experience in the beauty product manufacturing and sales industry[48]. - The independent non-executive director has extensive experience in corporate finance and has been involved in significant corporate transactions, including IPOs and mergers[50]. - The company has a focus on corporate governance and has appointed experienced professionals to its board, including members with backgrounds in law and finance[52]. - The CFO has over 20 years of experience in financial management, accounting, and auditing, previously working with major firms like KPMG and Deloitte[54]. - The management team has a strong educational background, with members having attended prestigious institutions such as Harvard University[57]. - The company has established a solid foundation in strategic planning and new business initiatives, led by experienced executives[48]. - The board includes members who are actively involved in family business consulting and wealth management for high-net-worth clients[52]. - The company has a diverse board composition, with independent directors bringing a wealth of knowledge from different sectors[50]. - The management team is focused on expanding the company's market presence and enhancing its operational capabilities[48]. Risk Management and Compliance - The company has implemented policies to ensure compliance with applicable laws and regulations, with no significant non-compliance issues reported during the year[69]. - The company faces significant risks related to customer performance, particularly in the U.S. market, which could adversely affect sales and profitability[77]. - Labor shortages and rising labor costs in China may hinder the company's expansion plans, impacting business and financial performance[78]. Shareholder Information and Capital Structure - The company has not declared a final dividend for the year, consistent with the previous year[82]. - The largest supplier accounts for 8.8% of total purchases, while the top five suppliers collectively account for 26.6%[91]. - The largest customer represents 21.3% of total sales, with the top five customers accounting for 77.9% of sales[91]. - The company has issued 400,000,000 shares as of December 31, 2019[84]. - The company has no distributable reserves as of December 31, 2019, consistent with the previous year[89]. - Classic Charm Investments Limited holds 300,000,000 shares, representing 75% of the company's issued voting shares[156]. - The beneficial ownership of the 300,000,000 shares is distributed among Mr. Ko (50.8%), Ms. Zhu (39.7%), and Ms. Chan (9.5%)[156]. - The company maintains a public float of at least 25% of its issued shares as required by GEM listing rules[160]. Related Party Transactions - The company has ongoing related party transactions, with actual payments not exceeding the previously disclosed annual caps in the prospectus[135]. - The company has a significant related party transaction with a supplier, where both parties are held by the same controlling shareholder[134]. - The company has confirmed that all ongoing related party transactions are conducted under normal commercial terms[135]. Board Committees and Meetings - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific aspects of its affairs[186]. - The Audit Committee held four meetings during the year to review the financial statements, quarterly reports, and internal controls, ensuring compliance with relevant regulations[190]. - The Remuneration Committee reviewed the group's remuneration policies and proposed recommendations to the board regarding executive compensation and independent non-executive director fees[194]. - The Nomination Committee assessed the current board structure and diversity policy, and made recommendations for the re-election of retiring directors at the upcoming annual general meeting[197]. - The company encourages directors to participate in professional development courses to enhance their knowledge and skills, with costs covered by the company[185]. Future Plans and Investments - The company has slowed down the expansion of its Hong Kong headquarters due to the current unstable economic conditions and social environment[37]. - Upgrading of production hardware and facilities has been largely completed, with plans to fully utilize the remaining proceeds within the next 18 months[40]. - The company plans to allocate HKD 5 million for the expansion of its Hong Kong headquarters, with HKD 3.072 million already utilized[40]. - The company has engaged in local and global exhibitions with a planned expenditure of HKD 1.68 million, of which HKD 2.08 million has been utilized[40].

Financial Performance - For the nine months ended September 30, 2019, the group's revenue was approximately HKD 232.5 million, an increase of about 13.2% compared to the same period last year[9]. - The gross profit for the same period was approximately HKD 88.6 million, representing a 42.6% increase year-on-year, with the gross profit margin rising from approximately 30.2% to 38.1%[9]. - Profit attributable to equity holders for the nine months was approximately HKD 35.8 million, an increase of about 33.3% compared to the previous year[9]. - Earnings per share for the nine months was approximately HKD 0.0895, reflecting a year-on-year increase of about 33.2%[9]. - For the three months ended September 30, 2019, the company reported a profit attributable to owners of the company of HKD 27,949,000, a slight increase from HKD 27,803,000 in the same period of 2018, representing a growth of 0.5%[39]. - The basic and diluted earnings per share for the three months ended September 30, 2019, was HKD 6.99, compared to HKD 6.95 for the same period in 2018, reflecting a 0.6% increase[39]. - Total revenue for the three months ended September 30, 2019, was HKD 142,175,000, a decrease of 0.4% from HKD 142,742,000 in the same period of 2018[50]. - The company’s total comprehensive income for the three months ended September 30, 2019, was HKD 25,476,000, compared to HKD 27,094,000 in the same period of 2018, a decrease of 5.7%[39]. - The company’s retained earnings as of September 30, 2019, stood at HKD 142,608,000, an increase from HKD 101,963,000 as of September 30, 2018, representing a growth of 39.9%[42]. Revenue Breakdown - The revenue breakdown for the nine months shows beauty products accounted for 76.1% (HKD 177.1 million) and cosmetic bags accounted for 23.9% (HKD 55.5 million) of total revenue[17]. - Sales of beauty products for the nine months ended September 30, 2019, reached HKD 177,072,000, up from HKD 145,006,000 in the same period of 2018, indicating a growth of 22.1%[50]. - Sales of cosmetic bags for the nine months ended September 30, 2019, were HKD 55,462,000, down from HKD 60,450,000 in the same period of 2018, representing a decline of 8.2%[50]. Expenses and Financial Position - Administrative expenses increased by approximately HKD 7.5 million or about 36.8% to approximately HKD 27.8 million for the nine months ended September 30, 2019[22]. - Selling expenses rose by approximately HKD 10.6 million or about 83.7% to approximately HKD 23.4 million for the nine months ended September 30, 2019, primarily due to increased tariff costs for products exported to the United States[25]. - As of September 30, 2019, the group had cash and cash equivalents of approximately HKD 78.7 million, down from approximately HKD 99.9 million as of June 30, 2019[21]. - The current ratio as of September 30, 2019, was approximately 3.7 times, compared to 3.9 times as of June 30, 2019[21]. Market Strategy and Operations - The group primarily engages in the design, development, production, and sale of beauty products and cosmetic bags, with a significant portion of customers based in North America[11]. - The group successfully utilized various marketing strategies and held exhibitions in the US and China to strengthen relationships with existing and potential customers, contributing to steady revenue growth[11]. - The group plans to monitor trade war developments and adapt to changes in the business environment while leveraging its brand reputation and competitive pricing strategies to increase sales[12]. - The company plans to continue expanding its product lines and enhancing its market presence in the beauty and cosmetics sector[44]. Dividends and Shareholder Information - The board did not recommend any interim dividend for the nine months ended September 30, 2019, consistent with the previous year[9]. - No interim dividend was recommended for the nine months ending September 30, 2019[59]. - The company has not declared any dividends for the nine months ending September 30, 2019[60]. - Major shareholders hold a total of 300,000,000 shares, representing 75.00% of the voting shares[72]. - Classic Charm Investments Limited holds 300,000,000 shares, representing 75.00% of the company's issued voting shares[77]. Corporate Governance and Compliance - The company has complied with all provisions of the corporate governance code as per GEM Listing Rules Appendix 15[84]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim financial information for the nine months ended September 30, 2019[89]. - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the nine months ended September 30, 2019[34]. - No arrangements were made for directors or key executives to acquire shares or debentures of the company during the nine months ending September 30, 2019[68]. - No direct or indirect competition or conflicts of interest involving directors or major shareholders were reported as of September 30, 2019[82]. Currency and Risk Management - The group experienced minimal financial impact from US tariffs due to its proactive business strategies[11]. - The group did not enter into any agreements or commitments to hedge against currency risks related to the Renminbi as of September 30, 2019[26]. - The group is subject to a corporate tax rate of 16.5% for profits generated in Hong Kong and 25% for profits in mainland China[58].

Financial Performance - For the six months ended June 30, 2019, the group's revenue was approximately HKD 90.4 million, an increase of about 44.1% compared to the same period last year[13] - The gross profit for the same period was approximately HKD 29.8 million, representing a 65.2% increase year-on-year, with a gross profit margin rising from approximately 28.7% to 32.9%[13] - The profit attributable to equity holders for the six months ended June 30, 2019, was approximately HKD 7.9 million, compared to a loss of approximately HKD 1.0 million in the same period of 2018[13] - Earnings per share for the six months ended June 30, 2019, were approximately HKD 0.02, compared to a loss per share of approximately HKD 0.002 in the same period of 2018[13] - Revenue for the six months ended June 30, 2019, was HKD 90,359 thousand, an increase of 44.2% compared to HKD 62,714 thousand for the same period in 2018[43] - Gross profit for the six months ended June 30, 2019, was HKD 29,754 thousand, representing a 65.5% increase from HKD 18,009 thousand in 2018[43] - The company reported a profit attributable to owners of HKD 7,856 thousand for the six months ended June 30, 2019, compared to a loss of HKD 936 thousand in the same period of 2018[45] - The company reported financing income of HKD 851 thousand for the six months ended June 30, 2019, compared to HKD 228 thousand in the same period of 2018, representing a significant increase of 273.7%[43] Business Growth and Strategy - Business growth for the six months ended June 30, 2019, was attributed to stable economic improvement in the United States and strong support from reliable customers[15] - The company conducted various marketing activities and exhibitions, including the 2019 China Beauty Expo in Shanghai and a cosmetics exhibition in Los Angeles, to strengthen relationships with existing and potential buyers[16] - The company aims to enhance sales and reduce product costs exported to the United States through its reputation and competitive pricing strategy[21] - Revenue from the United States increased to HKD 85,152,000 for the six months ended June 30, 2019, compared to HKD 59,460,000 in 2018, representing a growth of approximately 43.3%[81] Financial Position - The group's cash and cash equivalents as of June 30, 2019, were approximately HKD 99.9 million, maintaining a stable level compared to HKD 103.6 million as of December 31, 2018[26] - The current ratio as of June 30, 2019, was approximately 3.9 times, down from 8.1 times as of December 31, 2018, primarily due to capital expenditures for a new factory[26] - Total assets as of June 30, 2019, amounted to HKD 238,384 thousand, up from HKD 189,706 thousand as of December 31, 2018, reflecting a growth of 25.7%[51] - The company’s total liabilities as of June 30, 2019, were HKD 60,083 thousand, significantly higher than HKD 19,261 thousand at the end of 2018, marking a 212.5% increase[52] - Trade receivables increased to HKD 38,168 thousand as of June 30, 2019, compared to HKD 35,004 thousand at the end of 2018, indicating a growth of 6.2%[51] - Trade payables as of June 30, 2019, totaled HKD 29,328,000, up from HKD 9,081,000 as of December 31, 2018, showing a significant increase of 223.5%[97] Administrative and Operational Expenses - Administrative expenses increased by approximately HKD 2.9 million or 21.7% to approximately HKD 16.2 million for the six months ended June 30, 2019, mainly due to one-time expenses related to the proposed transfer of listing[27] - The total employee cost for the six months ended June 30, 2019, was approximately HKD 8.1 million, up from HKD 7.3 million in the same period of 2018, attributed to an increase in the number of employees and overall wages[40] - Administrative expenses for the six months ended June 30, 2019, were HKD 16,176 thousand, an increase from HKD 13,296 thousand in 2018, reflecting a rise of 21.3%[43] Capital Expenditures and Commitments - The group recognized capital expenditures of approximately HKD 9.1 million for property, plant, and equipment during the six months ended June 30, 2019, compared to HKD 4.0 million in 2018, indicating a 127.5% increase[93] - The group has capital commitments of HKD 8,209,000 for property, plant, and equipment as of the reporting date[99] Risks and Challenges - The company will remain vigilant regarding any changes in the trade war and business environment that may affect its operations and profitability[21] - The company faces various risks, including external factors such as trade wars, which may impact its business operations and performance[118] - Labor shortages and rising labor costs may significantly impact the company's operations, especially as it expands production capacity[119] - The company retains significant business assets and operations in China, making its performance subject to the economic, political, and legal developments in the region[120] - Any changes in regulations in China will directly affect the company's operations in that region[120] Corporate Governance - The audit committee, consisting of three independent non-executive directors, oversees financial reporting and risk management[150] - The company has complied with all provisions of the corporate governance code as of June 30, 2019[142] - The company has adopted a code of conduct for securities trading by directors and employees, ensuring compliance with GEM listing rules[144] Shareholder Information - As of June 30, 2019, the company had a total of 300,000,000 shares held by Classic Charm Investments Limited, with significant ownership by its directors[133] - Classic Charm Investments Limited holds 300,000,000 shares, representing 75.00% of the company's issued voting shares[136] - The beneficial ownership of the 300,000,000 shares is distributed among Mr. Ko (50.8%), Ms. Zhu (39.7%), and Ms. Chan (9.5%)[136] - The company has not repurchased any shares during the six months ending June 30, 2019[146]

Financial Performance - For the three months ended March 31, 2019, the group's revenue was approximately HKD 47.1 million, an increase of about 6.0% compared to the same period last year[24]. - The group's gross profit for the same period was approximately HKD 16.1 million, representing an increase of about 28.8% year-on-year[34]. - Profit attributable to owners of the company for the three months ended March 31, 2019, was approximately HKD 4.3 million, an increase of about 180.3% compared to the previous year[24]. - Earnings per share for the same period was approximately HKD 0.011, an increase of about 175.0% year-on-year[24]. - The group reported total revenue of HKD 47.056 million for the three months ended March 31, 2019, compared to HKD 44.412 million for the same period in 2018, representing an increase[56]. - Gross profit for the three months ended March 31, 2019, was HKD 16.130 million, up from HKD 12.525 million for the same period last year[56]. - The company reported a profit before tax of HKD 2,562,000 for the three months ended March 31, 2019, compared to HKD 309,000 in the same period of 2018[76]. Revenue Breakdown - Revenue from beauty products was HKD 26.8 million (57.0% of total revenue), while revenue from cosmetic bags was HKD 20.2 million (43.0% of total revenue) for the three months ended March 31, 2019[33]. - For the three months ended March 31, 2019, the revenue from beauty product sales was HKD 26,828,000, a decrease of 6.2% compared to HKD 28,721,000 in the same period of 2018[70]. - Revenue from cosmetic bag sales increased to HKD 20,228,000, up 28.8% from HKD 15,691,000 in the previous year[70]. - Other income from samples and design revenue was HKD 238,000, down 46.6% from HKD 447,000 in the previous year[71]. Expenses and Financial Position - Administrative expenses increased by approximately HKD 1.4 million or about 20.2% to approximately HKD 8.4 million for the three months ended March 31, 2019, primarily due to expenses related to the proposed listing transfer[38]. - Sales expenses decreased by approximately HKD 0.4 million or about 12.5% to approximately HKD 2.9 million for the three months ended March 31, 2019, attributed to shorter shipping distances[42]. - The group maintained a stable cash and cash equivalents balance of approximately HKD 103.2 million as of March 31, 2019, compared to approximately HKD 103.6 million as of December 31, 2018[37]. - The current ratio as of March 31, 2019, was approximately 6.8 times, down from approximately 8.1 times as of December 31, 2018[37]. Business Strategy and Market Conditions - The group's core business includes the design, development, production, and sale of beauty products and cosmetic bags, with significant growth attributed to stable improvements in the US economy[27]. - Various marketing activities and exhibitions were held, including the 2019 China Beauty Expo in Shanghai and a cosmetics exhibition in Los Angeles, aimed at strengthening customer relationships[27]. - The company will remain vigilant regarding potential impacts from trade wars and business environment changes, evaluating strategies to enhance sales and reduce product costs for exports to the US[28]. - The increase in revenue was primarily due to recognition of high-quality products by existing customers and successful new customer development marketing strategies[34]. Corporate Governance and Compliance - The company has complied with all provisions of the corporate governance code as per GEM Listing Rules Appendix 15 during the three months ending March 31, 2019[106]. - The company has adopted a code of conduct for securities trading by directors and employees, confirming compliance for the three months ending March 31, 2019[107]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited financial information for the first quarter ending March 31, 2019[115]. - The company has confirmed that its compliance advisor and related parties have no interests in the company's equity as of March 31, 2019[109]. - The company has confirmed adherence to the trading standards and code of conduct for directors during the reporting period[107]. Shareholder Information - Major shareholders hold a total of 300,000,000 shares, representing 50.8%, 39.7%, and 9.5% ownership by key individuals[96][97]. - The company did not recommend any interim dividend for the three months ended March 31, 2019[48]. - The board did not recommend any interim dividend for the three months ended March 31, 2019[79]. - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the three months ending March 31, 2019[108]. Future Plans and Developments - The company announced plans to transfer its shares from GEM to the main board of the stock exchange on May 5, 2019, to enhance its image and brand recognition[117]. - The company is focused on expanding its product offerings and enhancing its market presence in the beauty and cosmetic sectors[64]. - The company has not identified any significant events affecting its business or financial performance after March 31, 2019[117].

Financial Performance - The company's revenue for the year ended December 31, 2018, was approximately HKD 258.8 million, an increase of about 44.3% compared to the previous year[16]. - Gross profit for the same period was approximately HKD 87.5 million, reflecting a 32.7% increase year-on-year[17]. - Net profit attributable to equity holders was approximately HKD 32.2 million, a significant increase of about 489.6% compared to the previous year[17]. - The gross margin decreased to approximately 33.8%, down from 36.8% in the previous year, primarily due to a different product mix and increased sales volume[17]. - Beauty products accounted for 74.7% of total revenue in 2018, with sales of HKD 193.4 million, compared to 61.9% in 2017[16]. Business Growth and Strategy - The company reported significant growth in overall profits and shareholder returns due to its position as a beauty product manufacturer and cosmetic bag solution provider[11]. - The business growth for the year was attributed to stable improvements in the US economy and strong support from reliable customers in North America[13]. - The company launched new products and marketing campaigns, including Mother's Day beauty products, which received positive feedback and generated considerable revenue[14]. - The company aims to solidify its position as a beauty product manufacturer and cosmetic bag solution provider while expanding its operational scale to enhance overall profits[15]. - The company has been proactive in assessing and determining business strategies to increase sales and reduce product costs exported to the US[15]. Challenges and Risks - The company anticipates challenges in the global business environment due to the US-China trade war, which may negatively impact economic confidence and customer purchasing costs[15]. - The company faces various risks that could significantly impact its business, financial condition, and operations, particularly due to poor performance from customers, especially in the U.S. market[73]. - Labor shortages and rising labor costs in China may hinder the company's expansion plans, affecting its business and financial performance[74]. - The company's operations and financial results are heavily influenced by the economic, political, and legal developments in China, where it maintains substantial business assets[75]. Management and Governance - The company has a strong management team with over 16 years of experience in the beauty product manufacturing and sales industry[52]. - The independent non-executive director has extensive experience in corporate, banking, and project financing law, participating in significant corporate transactions including IPOs and mergers[54]. - The company has appointed a financial director with over 20 years of experience in financial management, accounting, and auditing[56]. - The independent non-executive director has been recognized as a leading practitioner in corporate and M&A law by IFLR1000 and Legal 500 Asia Pacific[54]. - The company has established key business departments including marketing, development, production, and quality control centers[52]. Financial Management - The company has upgraded production hardware and infrastructure, with an investment of approximately HKD 23.7 million in the year[35]. - As of December 31, 2018, the company had cash and cash equivalents of approximately HKD 103.6 million, an increase from HKD 96.4 million in 2017[36]. - Administrative expenses decreased by approximately 28.3% to about HKD 30.2 million, primarily due to the absence of listing expenses in 2018[37]. - The current ratio as of December 31, 2018, was approximately 8.1 times, indicating a strong liquidity position[36]. - The total employee cost for the year ended December 31, 2018, was approximately HKD 16.1 million, up from about HKD 14.3 million for the year ended December 31, 2017, reflecting an increase due to a higher number of employees and salary adjustments[46]. Shareholder and Dividend Policy - The company did not recommend a final dividend payment to shareholders for the year[76]. - The company has adopted a dividend policy effective from January 1, 2019, which establishes appropriate procedures for declaring and recommending dividends[197]. - The board has the discretion to decide on the declaration and payment of dividends based on factors such as actual and expected financial performance, cash flow, and overall business conditions[197]. - The company will regularly review and reassess the effectiveness of its dividend policy as necessary[198]. Corporate Governance - The board of directors consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[133]. - The company has adopted a code of conduct for securities trading by directors and employees, which is stricter than the GEM listing rules[131]. - The independent non-executive directors represent at least one-third of the board, complying with GEM listing regulations[136]. - The company has confirmed the independence of all independent non-executive directors according to GEM listing rules[137]. - The company’s chairman and CEO roles are separated to ensure effective leadership and management oversight[135]. Risk Management and Internal Control - The company has established a risk management and internal control system, which was reviewed for effectiveness and found to be adequate as of December 31, 2018[181]. - The audit committee reported no significant discrepancies in the internal control system and recommended improvements to enhance risk management[183]. - The board has received confirmation from management that the risk management and internal control systems are effective[184]. - The company has not identified any significant uncertainties that may cast doubt on its ability to continue as a going concern[180]. Related Party Transactions - The group entered into several related party transactions during the year, with significant transactions disclosed in the consolidated financial statements note 31[100]. - Independent non-executive directors confirmed that the related party transactions were conducted on normal commercial terms and did not exceed the previously disclosed annual limits[104]. - The external auditor provided an unqualified opinion regarding the group's related party transactions in accordance with GEM listing rules[105]. Shareholder Communication - The company is committed to maintaining effective communication with shareholders and potential investors through its website, which provides access to corporate information[196]. - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special general meeting within two months of the request[193]. - Nominations for directors at the general meeting must be submitted in writing at least seven days prior to the meeting[194].