年 報 香港聯合交易所有限公司（「聯交所」）GEM之特色 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主板上市的公司帶有較高投資風險。有意投資者 應了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上市規則」）而刊載，旨在提供有關禮建德集團控股有限公司（「本公 司」，連同其附屬公司「本集團」）的資料。本公司的董事（「董事」）願就本報告的資料共同及個別地承擔全部責任。各董事在作出 一切合理查詢後，確認就其所知及所信，本報告所載資料在各重要方面均屬準確完備，沒有誤導或欺詐成分，且並無遺漏任何 事項，足以令致本報告或其所載任何陳述產生誤導。 1 禮建德集團控股有限公司 • ...

Financial Performance - The group's revenue for the year ended March 31, 2025, was HKD 93,689,000, a decrease of 8.5% compared to HKD 102,076,000 for the previous year[5] - Gross profit for the same period was HKD 14,930,000, down 28.8% from HKD 20,984,000 year-on-year[5] - The operating loss increased to HKD 12,770,000 from HKD 11,514,000, reflecting a year-on-year increase of 10.9%[5] - The net loss for the year was HKD 12,997,000, compared to a net loss of HKD 12,091,000 in the previous year, representing an increase of 7.5%[5] - Revenue from residential interior design and renovation services for 2025 was HKD 90,880,000, a decrease from HKD 95,755,000 in 2024[21] - Revenue from commercial interior design and renovation services for 2025 was HKD 2,809,000, down from HKD 6,321,000 in 2024[21] - Total revenue from customer contracts for 2025 was HKD 93,689,000, compared to HKD 102,076,000 in 2024[21] - The group recorded a net loss of approximately HKD 13.0 million for the year ended March 31, 2025, compared to a net loss of about HKD 12.1 million in the same period of 2024[42] - The gross profit decreased by approximately 28.9% to about HKD 14.9 million, with a gross margin of approximately 15.9%, down from 20.6% in 2024[47] Cash Flow and Liquidity - Cash and cash equivalents decreased significantly to HKD 12,120,000 from HKD 24,326,000, a decline of 50.2%[6] - The company has current liabilities of approximately HKD 4,395,000, indicating significant uncertainty regarding its ability to continue as a going concern[17] - For the fiscal year ending March 31, 2025, the company reported a net loss of approximately HKD 12,997,000, with current liabilities exceeding current assets by about HKD 10,183,000[17] - The company’s total liabilities exceeded its total assets by approximately HKD 10,183,000 as of March 31, 2025, raising significant doubts about its ability to continue as a going concern[39] - The group’s cash and bank balances were approximately HKD 12.1 million as of March 31, 2025, down from approximately HKD 24.3 million in 2024[63] Debt and Financing - The company obtained a new loan of HKD 2,000,000 from shareholder Dr. Chan for daily operations, which is interest-free and due by March 6, 2027[19] - A placement agreement was signed to issue 160,000,000 new shares at a price of HKD 0.045 per share, raising approximately HKD 7,000,000 after expenses[19] - The company secured a loan financing of HKD 15,000,000 from a financial institution, effective until December 2027[19] - The financing costs decreased to HKD 253,000 in 2025 from HKD 414,000 in 2024, a reduction of about 39%[30] - The group’s asset-liability ratio was approximately -176.5% as of March 31, 2025, compared to 86.0% in 2024, primarily due to recorded losses[64] Operational Efficiency - Total employee costs amounted to HKD 13,916,000 in 2025, down from HKD 17,631,000 in 2024, reflecting a decrease of approximately 21%[29] - Administrative and other operating expenses decreased by approximately 16.4% to about HKD 28.2 million, driven by effective cost control measures[49] - Direct costs decreased by about 2.8% to approximately HKD 78.8 million, primarily due to a reduction in employee costs and corresponding revenue decline[46] - The company recorded impairment losses of HKD 789,000 in 2025, compared to HKD 559,000 in 2024, indicating an increase of approximately 41%[29] Strategic Focus - The company continues to focus on providing interior design and renovation services in Hong Kong, with no new product or market expansion strategies disclosed in the report[9] - The company is actively seeking potential investors to improve its capital structure and provide additional liquidity for short-term obligations[19] - Management has implemented measures to expand the customer base and improve cash flow and profitability, including reviewing operational structures and renegotiating supplier contracts[19] - The group plans to enhance its marketing and promotional strategies to increase brand awareness in the renovation and interior design market[43] - The company aims to expand its business coverage in Hong Kong to reach more potential customers as the market size may grow[43] Corporate Governance - The company has adopted sound corporate governance principles to maintain stakeholder trust and ensure accountability[76] - The audit committee has reviewed the annual performance for the year ending March 31, 2025[80] - The group's financial statements have been verified by the auditor, confirming consistency with the audited financial reports[79] Shareholder Information - The company did not declare or propose any dividends for the year ended March 31, 2025, consistent with the previous year[32] - The company has not proposed any final dividends for the year ending March 31, 2025[74] - The total number of issued shares has increased to 960,000,000 following the placement[81] - The group has completed a placement of up to 160,000,000 shares, representing approximately 16.67% of the issued share capital post-completion, at a price of HKD 0.045 per share[81]

Company Overview - Lee Kin Tak Group Holdings Limited primarily provides interior design and renovation services in Hong Kong, with business segments including residential and commercial interior design and renovation services, as well as the sale of renovation materials [2]. Financial Performance - As of September 30, 2024, Lee Kin Tak Group reported total revenue of 46.1671 million HKD, a year-on-year decrease of 3.42% [1]. - The company recorded a net profit attributable to shareholders of -4.949 million HKD, representing a year-on-year increase of 14.24% [1]. - The gross profit margin stood at 18.84%, while the debt-to-asset ratio was 90.42% [1]. Stock Performance - On May 23, the Hang Seng Index rose by 0.24%, closing at 23,601.26 points [1]. - Lee Kin Tak Group's stock price closed at 0.072 HKD per share, marking a 50.0% increase with a trading volume of 5.13 million shares and a turnover of 315,500 HKD [1]. - Over the past month, the stock has seen a cumulative increase of 17.07%, and since the beginning of the year, it has surged by 118.18%, outperforming the Hang Seng Index by 17.37% [1]. Valuation Metrics - The average price-to-earnings (P/E) ratio for the construction industry (TTM) is 10.01 times, with a median of 1.51 times [1]. - Lee Kin Tak Group's P/E ratio is -3.43 times, ranking 168th in the industry [1]. - Comparatively, other companies in the industry have P/E ratios such as Pujiang International at 1.01 times, Food King (Global) at 1.44 times, China Pipe Industry at 1.5 times, Jinsheng Group Holdings at 1.51 times, and Indigo Star at 1.58 times [1].

Financial Performance - The company reported revenue of HKD 51,195,000 for the six months ended September 30, 2024, a decrease of 3.4% compared to HKD 53,006,000 in the same period of 2023[11]. - Direct costs amounted to HKD 41,548,000, resulting in a gross profit of HKD 9,647,000, down from HKD 10,191,000 year-on-year[11]. - The operating loss for the period was HKD 5,368,000, an improvement from the operating loss of HKD 6,190,000 in the previous year[11]. - The net loss attributable to the owners of the company was HKD 5,488,000, compared to HKD 6,399,000 in the same period last year, indicating a reduction in losses[11]. - Revenue from residential interior design and renovation services was HKD 50,565,000, up 6.0% from HKD 47,662,000 in the previous year[44]. - The company reported a loss attributable to owners of HKD 5,488,000 for the six months ended September 30, 2024, compared to a loss of HKD 6,399,000 in the same period last year, indicating a 14.2% improvement[58]. - Basic loss per share improved to HKD 0.69 from HKD 0.80, reflecting a decrease in loss per share of 13.8%[58]. - The net loss for the six months ended September 30, 2024, was approximately HKD 5.5 million, a decrease from a net loss of approximately HKD 6.4 million in the same period of 2023, attributed to effective cost control measures[83]. Assets and Liabilities - Total assets decreased to HKD 32,506,000 as of September 30, 2024, down from HKD 36,811,000 at the end of March 2024[13]. - Total liabilities as of September 30, 2024, amounted to HKD 29,393,000, an increase from HKD 28,208,000 as of March 31, 2024, representing a growth of 4.2%[21]. - Current liabilities totaled HKD 29,097,000 as of September 30, 2024, compared to HKD 27,417,000 as of March 31, 2024, indicating an increase of 6.1%[20]. - The total equity as of September 30, 2024, decreased to HKD 3,113,000 from HKD 14,298,000 as of March 31, 2024, reflecting a decline of 78.1%[25]. - Non-current liabilities totaled HKD 296,000 as of September 30, 2024, down from HKD 791,000 as of March 31, 2024, indicating a decrease of 62.7%[18]. - As of September 30, 2024, total debt was approximately HKD 6.5 million, down from about HKD 7.4 million as of March 31, 2024[99]. - The debt-to-equity ratio increased to approximately 209.1% as of September 30, 2024, from about 86.0% as of March 31, 2024[101]. Cash Flow and Liquidity - Cash and cash equivalents were reported at HKD 20,781,000, a decline from HKD 24,326,000 in the previous period[13]. - The company reported a net cash outflow from operating activities of HKD 2,593,000 for the six months ended September 30, 2024, an improvement from HKD 5,431,000 in the same period of 2023[27]. - Cash and cash equivalents decreased to HKD 20,781,000 as of September 30, 2024, from HKD 24,326,000 at the beginning of the period[28]. - The company’s liquidity and funding risk management policies have not changed significantly compared to the end of the previous year[40]. - The company has unutilized credit facilities of approximately HKD 14 million as of September 30, 2024[78]. - The company maintains a prudent treasury policy to manage cash reserves and ensure liquidity for future growth opportunities[104]. Operational Strategies and Outlook - The company has not disclosed any new product developments or market expansion strategies in the current report[11]. - Future outlook and performance guidance were not explicitly mentioned in the provided documents[11]. - The company plans to implement stronger measures to improve operational cash flow and financial condition, including close monitoring of operating expenses[35]. - The company anticipates a challenging year due to uncertainties in the Hong Kong real estate market and expects competitors to adopt more aggressive pricing strategies[84]. - The company’s management remains cautious about business expansion and focuses on controlling operating costs amid current market trends[84]. - The company plans to expand its business coverage in Hong Kong to reach more potential customers[86]. Corporate Governance and Compliance - The company continues to comply with GEM listing rules and has committed to providing accurate and complete information in its announcements[2]. - The company has adopted trading standards for directors in compliance with GEM Listing Rules, confirming no non-compliance incidents occurred in the six months ending September 30, 2024[124]. - The company has a non-competition agreement with its controlling shareholders to prevent any competitive business activities during the agreement's validity[121]. - The company has the right of first refusal on any business opportunities that may compete with its existing operations, with a notification period of six months[123]. - The company has adopted sound corporate governance principles, emphasizing an excellent board, effective internal controls, and rigorous disclosure practices[133]. - The Audit Committee, established on March 24, 2017, is chaired by an independent non-executive director and includes two other independent non-executive directors[134]. - The unaudited condensed consolidated financial statements for the six months ended September 30, 2024, have been reviewed by the Audit Committee and comply with applicable accounting standards and GEM listing rules[136]. Employee and Operational Metrics - The total employee costs for the six months ending September 30, 2024, amounted to approximately HKD 7.1 million, a decrease from HKD 8.8 million in the same period of 2023[111]. - The group employed 21 staff as of September 30, 2024, down from 26 staff as of March 31, 2024[111]. - The company is currently upgrading its office systems and design software, expecting to utilize approximately HKD 0.2 million for this purpose by March 31, 2025[97]. Dividends and Share Capital - The company did not declare an interim dividend for the six months ended September 30, 2024, consistent with the previous year[60]. - The company’s total issued share capital as of September 30, 2024, was HKD 10,000 thousand, with 1,000,000 shares issued[73]. - The company has a stock option plan that allows for the issuance of up to 80,000,000 shares, representing 10% of the total issued shares as of the report date[127]. - No stock options were granted, exercised, expired, or canceled in the six months ending September 30, 2024, and there are no unexercised stock options under the stock option plan[131].

Financial Performance - The group's revenue decreased by approximately 8.3% from about HKD 111.3 million for the year ended March 31, 2023, to about HKD 102.1 million for the year ended March 31, 2024[11]. - Gross profit increased by approximately 9.9% from about HKD 19.1 million to about HKD 21.0 million, with the gross profit margin rising from approximately 17.2% to 20.6%[11]. - The net loss attributable to the company's owners decreased from approximately HKD 17.9 million to about HKD 12.1 million, primarily due to a gain from a life insurance investment of about HKD 0.1 million[11][15]. - The company's revenue decreased by approximately 8.3% to about HKD 102.1 million for the year ended March 31, 2024, compared to HKD 111.3 million in 2023, primarily due to reduced income from residential and commercial interior design and renovation services[18]. - Revenue from residential interior design and renovation services was HKD 95.8 million (93.8% of total revenue) in 2024, down from HKD 101.9 million (91.6%) in 2023, while commercial services dropped to HKD 6.3 million (6.2%) from HKD 9.4 million (8.4%)[19]. - Direct costs decreased by approximately 12.0% to about HKD 81.1 million in 2024 from HKD 92.1 million in 2023, mainly due to reduced revenue and effective cost control measures[20]. - Other income and gains decreased from approximately HKD 3.2 million in 2023 to about HKD 1.7 million in 2024, mainly due to the absence of non-recurring government subsidies[23]. - Financing costs increased by approximately 64.3% to about HKD 414,000 in 2024 from HKD 252,000 in 2023, primarily due to higher interest on bank borrowings and lease liabilities[27]. - Income tax expenses surged to approximately HKD 163,000 in 2024 from HKD 4,000 in 2023, mainly due to an increase in deferred tax[28]. - The company recorded a loss attributable to owners of approximately HKD 12.1 million in 2024, compared to HKD 17.9 million in 2023[29]. Market Outlook and Strategy - The company remains optimistic about the local interior design and renovation services market despite facing challenges from the economic environment and property market uncertainties[12]. - The company plans to enhance brand marketing through mainstream and new media to attract new customers and strengthen its market position[12]. - The company aims to improve customer experience and satisfaction by recruiting talented individuals, providing training, and enhancing management skills[12]. - The company plans to enhance sales and marketing efforts, recruit high-quality talent, and upgrade information systems, including the development of an online project management system[32]. - The company has purchased four vehicles to support its operations and has increased online advertising frequency to boost brand visibility[33]. Environmental, Social, and Governance (ESG) Initiatives - The group has committed to environmental protection measures, including wastewater management and energy consumption control, complying with applicable Hong Kong environmental laws[58]. - The board is committed to integrating environmental, social, and governance considerations into decision-making processes[73]. - The group has established a governance framework for managing environmental, social, and governance matters, with the board responsible for strategy and oversight[74]. - The group has implemented an environmental management system in accordance with ISO 14001:2015 standards[82]. - The group has not reported any significant violations of environmental laws and regulations that would have a major impact on its operations[82]. - The company aims to reduce its total greenhouse gas emissions density by 5% from the 2022 baseline of approximately 19.33 kg CO2e/sq ft by March 31, 2026[86]. - The company has set various environmental goals, including reducing greenhouse gas emissions and waste management, to mitigate climate change impacts[117]. - The company has implemented energy-saving measures, including replacing old equipment with high-energy-efficiency devices and using energy-efficient LED lighting[102]. - The group has achieved ISO 9001:2015 certification for its quality control system in interior design and renovation services[146]. Employee and Workforce Management - The total employee costs for the year ending March 31, 2024, were approximately HKD 17.6 million, compared to HKD 18.0 million in 2023[52]. - The company has reduced its workforce from 38 employees in 2023 to 26 employees in 2024, with a notable decrease in male employees from 24 to 14[120]. - The employee turnover rate increased significantly to approximately 37.50% in 2024 from 23.68% in 2023, with male turnover rising to 52.63%[122]. - Approximately 68.42% of employees received training during the reporting period, an increase from 59.57% in the previous year[134]. - The average training hours per employee increased to 26.84 hours, up from 23.83 hours in the previous year[134]. - The company has established a fair and competitive compensation system to attract and retain talent, with regular performance reviews for salary adjustments[122]. - The company emphasizes equal opportunities and non-discrimination in its hiring practices, ensuring a diverse workplace[127]. Community Engagement and Charitable Contributions - The group donated approximately HKD 1,004,000 to various non-profit organizations during the reporting period, compared to HKD 1,066,000 in 2023, indicating a slight decrease in charitable contributions[155]. - The group plans to expand its charitable efforts to better meet community needs and create a more favorable environment for its business[155]. - The group has established a volunteer team of 20 members to provide free maintenance services to vulnerable groups, including the elderly and disabled[155]. Risk Management and Compliance - The group has implemented monitoring procedures to ensure actions are taken to recover overdue debts, significantly reducing credit risk[54]. - The group maintains a policy of regular monitoring of current and expected liquidity requirements to ensure sufficient cash reserves for operational funding[57]. - The company has a strict policy against child labor and forced labor, ensuring compliance with local laws and regulations[139]. - The group has not been aware of any significant violations of anti-corruption and anti-money laundering laws that would have a major impact on its operations[152]. - The company is actively managing environmental and social risks within its supply chain[176].

Financial Performance - The group's revenue decreased by approximately 8.3% from about HKD 111.3 million for the year ended March 31, 2023, to about HKD 102.1 million for the year ended March 31, 2024[15]. - Gross profit increased by approximately HKD 1.9 million or 9.9% from about HKD 19.1 million to about HKD 21.0 million, with the gross profit margin rising from approximately 17.2% to 20.6%[15]. - The loss attributable to the owners of the company decreased from approximately HKD 17.9 million to about HKD 12.1 million, primarily due to a recognized investment income from a life insurance policy of about HKD 0.1 million[15]. - The impairment loss on property, plant, and equipment decreased from approximately HKD 4.2 million to about HKD 0.6 million[15]. - The net loss for the year ended March 31, 2024, was approximately HKD 12.1 million, a reduction from a net loss of about HKD 17.9 million in the previous year[19]. - Direct costs decreased by about 12.0% to approximately HKD 81.1 million, down from HKD 92.1 million in the previous year, primarily due to effective cost control measures[24]. - Other income and gains decreased from approximately HKD 3.2 million to about HKD 1.7 million, mainly due to the absence of non-recurring government subsidies[27]. - Financing costs increased by approximately 64.3% to about HKD 414,000, attributed to higher interest on bank borrowings and lease liabilities[31]. Business Strategy and Outlook - The company remains optimistic about the prospects of the local interior design and renovation services despite facing challenges from the financial market and economic downturn[16]. - The company plans to enhance brand marketing through mainstream and new media to attract new customers and strengthen its position in the industry[16]. - The company aims to achieve sustainable business growth by recruiting talented individuals, providing training, and improving management skills to enhance customer experience and satisfaction[16]. - The company anticipates a challenging year ahead due to uncertainties in the Hong Kong property market, influenced by tightening monetary policies from major central banks[20]. - The board expects long-term demand for the group's services to increase as public affordability for housing improves, leading to a strategy to enhance brand awareness in the renovation and interior design market[20]. - The group plans to continue expanding its business coverage in Hong Kong to reach more potential customers[20]. Financial Position - As of March 31, 2024, the total debt of the group was approximately HKD 7.4 million, down from HKD 9.6 million in 2023[45]. - The group's cash and bank balances were approximately HKD 24.3 million as of March 31, 2024, compared to HKD 34.5 million in 2023[45]. - The asset-liability ratio increased to approximately 86.0% as of March 31, 2024, from 46.4% in 2023, primarily due to a decrease in total equity[46]. Employee and Workforce Management - The total employee cost, including directors' remuneration and mandatory provident fund contributions, was approximately HKD 17.6 million, a slight decrease from HKD 18.0 million in 2023[56]. - The group has 26 employees in Hong Kong as of March 31, 2024, down from 38 employees in 2023[56]. - The overall employee turnover rate increased to approximately 37.50% in 2024, up from 23.68% in 2023, with male turnover rising significantly to 52.63%[126]. - Approximately 68.42% of employees received training during the reporting period, an increase from 59.57% in the previous year[138]. - The average training hours per employee increased to 26.84 hours, up from 23.83 hours in the previous year[138]. - The company is committed to maintaining a competitive compensation system to attract and retain talent, with regular performance reviews influencing salary adjustments[126]. Environmental, Social, and Governance (ESG) Initiatives - The company has established a comprehensive governance framework for environmental, social, and governance (ESG) matters, with the board responsible for overseeing ESG strategies and reporting[78]. - The company received the "2023 ESG Special Recognition Award" from TVB, highlighting its commitment to integrating sustainable design principles into operations and services[79]. - The group has implemented environmental protection measures, including wastewater management and energy consumption control, and has complied with applicable environmental laws and regulations[62]. - The company is committed to reducing its carbon footprint and improving environmental performance through various green initiatives[86]. - The company has established an environmental management system certified by ISO 14001:2015 to support sustainable development[115]. - The company has implemented a health and safety management system based on ISO 45001:2018 to ensure a safe working environment[132]. Community Engagement and Charitable Contributions - The group donated approximately HKD 1,004,000 to various non-profit organizations during the reporting period, compared to HKD 1,066,000 in 2023, indicating a slight decrease in charitable contributions[159]. - The number of volunteers in the community service team is 20, providing free maintenance services to vulnerable groups[159]. - The group aims to expand its charitable efforts in the future to better meet community needs and create a more favorable environment for its business[159]. Customer Engagement and Feedback - The group emphasizes the importance of customer feedback and has established a customer service department to address inquiries and complaints effectively[150]. - The group has implemented a communication platform to gather customer inquiries and feedback, enhancing customer engagement[151]. - The group prioritizes the protection of confidential information and customer privacy, adhering to strict policies[152].

Financial Performance - For the three months ended September 30, 2023, the Group reported revenue of HKD 28,570,000, an increase of 17.5% compared to HKD 24,356,000 for the same period in 2022[6]. - The gross profit for the six months ended September 30, 2023, was HKD 10,191,000, a decrease of 32.5% from HKD 15,118,000 in the same period last year[6]. - The operating loss for the six months ended September 30, 2023, was HKD 6,190,000, compared to an operating profit of HKD 1,233,000 for the same period in 2022[6]. - The loss attributable to owners of the company for the six months ended September 30, 2023, was HKD 6,399,000, compared to HKD 1,287,000 for the same period in 2022[6]. - The basic and diluted loss per share for the six months ended September 30, 2023, was HKD 0.80, compared to HKD 0.16 for the same period in 2022[6]. - For the six months ended September 30, 2023, the company reported a net loss of HKD 6,399,000, compared to a net loss of HKD 1,287,000 for the same period in 2022, indicating a significant increase in losses[11]. - The gross profit margin for the six months ended September 30, 2023, was approximately 19.2%, down about 6.3 percentage points from 25.5% for the same period in 2022[65]. - The company reported a pre-tax loss of HKD 6,399,000 for the six months ended September 30, 2023, compared to a loss of HKD 1,287,000 in the same period of 2022[37]. Assets and Liabilities - The total assets as of September 30, 2023, were HKD 45,978,000, down from HKD 52,632,000 as of March 31, 2023[9]. - The total liabilities as of September 30, 2023, were HKD 31,680,000, slightly decreased from HKD 31,935,000 as of March 31, 2023[9]. - The Group's cash and cash equivalents decreased to HKD 17,110,000 as of September 30, 2023, from HKD 24,312,000 as of March 31, 2023[8]. - The Group's equity decreased to HKD 14,298,000 as of September 30, 2023, from HKD 20,697,000 as of March 31, 2023[9]. - The total equity attributable to the owners of the company decreased to HKD 14,298,000 as of September 30, 2023, down from HKD 37,329,000 as of September 30, 2022, reflecting a decline of approximately 61.8%[11]. - The company reported a net book value of HKD 8,722,000 as of September 30, 2023, down from HKD 8,775,000 as of March 31, 2023[11]. - The asset-liability ratio as of September 30, 2023, was approximately 56.5%, an increase from approximately 46.4% as of March 31, 2023[83]. Cash Flow - The net cash used in operating activities for the six months ended September 30, 2023, was HKD 5,407,000, compared to net cash generated of HKD 1,244,000 in the same period of 2022[13]. - The company reported a net cash outflow from financing activities of HKD 1,775,000 for the current period, contrasting with a net cash inflow of HKD 3,546,000 in the previous year[13]. - Cash and cash equivalents decreased to HKD 17,110,000 at the end of the reporting period, down from HKD 55,115,000 at the end of the previous year, representing a decline of approximately 69.0%[13]. - The company’s operating cash flow was negative at HKD 5,431,000 for the six months ended September 30, 2023, compared to a positive cash flow of HKD 1,237,000 in the same period of 2022[13]. Revenue Breakdown - Revenue for residential interior design and renovation services reached HKD 25,070,000 for the three months ended September 30, 2023, an increase of 5.7% compared to HKD 23,714,000 in the same period of 2022[27]. - Total revenue for the six months ended September 30, 2023, was HKD 53,006,000, a decrease of 10.6% from HKD 59,285,000 in the same period of 2022[28]. - Approximately HKD 47.7 million and HKD 58.1 million of the revenue for the six months ended September 30, 2023, and 2022, respectively, were generated from residential interior design and renovation services, accounting for about 89.9% and 98.0% of total revenue[58]. Operational Highlights - The company has not reported any significant new product launches or technological advancements during the reporting period[15]. - The company anticipates a challenging year ahead due to uncertainties in the Hong Kong property market, which is expected to continue affecting the economy negatively[59]. - The company plans to expand its business coverage in Hong Kong to reach more potential customers, driven by an expected long-term increase in demand for its services[61]. - The company has entered into a service agreement with Mini Home Media Limited to provide various Hong Kong brand home products, which is expected to enhance revenue sources and brand recognition[61]. Corporate Governance - The company has adopted corporate governance principles emphasizing accountability and transparency, in compliance with GEM listing rules[117]. - The audit committee was established on March 24, 2017, and is chaired by an independent non-executive director[118]. - The company has confirmed compliance with the GEM listing rules regarding securities transactions by directors for the six months ending September 30, 2023[107]. - The company has maintained high levels of corporate governance, which is crucial for gaining and maintaining stakeholder trust[117]. Employee and Shareholder Information - The total employee cost for the six months ended September 30, 2023, was approximately HKD 8.8 million, compared to HKD 8.5 million for the same period in 2022[94]. - The group employed 34 staff in Hong Kong as of September 30, 2023, down from 38 staff as of March 31, 2023[94]. - Dr. Chen holds a 51.05% equity interest in the company, representing 408,370,000 shares[96]. - Other major shareholders include Ms. Huang with a 51.05% interest and Ms. Cai with a 10.53% interest[99]. Future Outlook - The company continues to face various financial risks, including liquidity risk, as indicated in its financial risk management disclosures[22]. - The group continues to adopt a prudent cash management policy to prepare for future growth opportunities[87].

Financial Performance - For the three months ended June 30, 2023, the group's revenue was HKD 24,436,000, a decrease of 30.2% compared to HKD 34,929,000 for the same period in 2022[5] - The gross profit for the same period was HKD 4,964,000, down 43.5% from HKD 8,769,000 in the previous year[5] - The operating loss for the three months was HKD 4,203,000, compared to an operating profit of HKD 1,774,000 in the prior year[5] - The net loss attributable to owners of the company for the period was HKD 4,313,000, compared to a profit of HKD 1,547,000 in the same period last year[5] - The basic and diluted loss per share for the period was HKD 0.54, compared to earnings of HKD 0.19 per share in the previous year[7] - The total comprehensive loss for the period was HKD 4,315,000, compared to a total comprehensive income of HKD 1,552,000 in the same period last year[7] - The group's total equity as of June 30, 2023, was HKD 16,382,000, a decrease from HKD 40,154,000 as of June 30, 2022[9] Revenue Breakdown - Revenue from residential interior design and renovation services accounted for approximately HKD 22.6 million, representing 92.5% of total revenue for Q2 2023, down from 98.6% in Q2 2022[32] - The company's revenue from commercial interior design and renovation services was approximately HKD 1.8 million, representing 7.5% of total revenue for Q2 2023, compared to HKD 0.5 million or 1.4% in Q2 2022[32] - The group's revenue decreased by approximately 30.0% from HKD 34.9 million for the three months ended June 30, 2022, to HKD 24.4 million for the three months ended June 30, 2023, primarily due to competitive pricing strategies[37] Expenses and Costs - Administrative and other operating expenses increased to HKD 9,556,000 from HKD 7,881,000, reflecting a rise of 21.2%[5] - Direct costs reduced by approximately 25.6% from HKD 26.2 million to HKD 19.5 million during the same period, mainly due to the decrease in revenue[38] - Gross profit fell by approximately 43.4% from HKD 8.8 million to HKD 5.0 million, with a gross profit margin of 20.3%, down from 25.2%, reflecting the impact of competitive pricing[39] - Administrative and other operating expenses increased by approximately 21.3% from HKD 7.9 million to HKD 9.6 million, primarily due to higher advertising and promotional costs[41] Dividends and Income - The company did not declare any dividends for the three months ended June 30, 2023, consistent with the previous year[30] - The company’s interest income for the three months ended June 30, 2023, was HKD 12, slightly up from HKD 11 in the same period of 2022[21] - The company recognized government grants related to the COVID-19 employment support scheme amounting to approximately HKD 512,000 in the previous year, which was not present in the current reporting period[21] Future Outlook and Strategy - The company anticipates increased overall demand for its services in the long term as public affordability for housing improves[35] - The company plans to enhance its marketing strategies to increase brand awareness in the renovation and interior design market[35] - The board remains cautious about business expansion due to the uncertain property market conditions in Hong Kong[35] - The company aims to expand its business coverage in Hong Kong to reach more potential customers[35] Corporate Governance and Compliance - The company has adopted sound corporate governance principles, emphasizing an excellent board, effective internal controls, and rigorous disclosure practices[68] - The audit committee, established on March 24, 2017, consists of independent non-executive directors and is responsible for reviewing financial data and internal control systems[70] - The unaudited condensed consolidated financial statements for the three months ended June 30, 2023, have been reviewed by the audit committee and comply with applicable accounting standards and GEM listing rules[70] Shareholder and Securities Information - No purchase, sale, or redemption of the company's listed securities occurred during the three months ended June 30, 2023[53] - No competition or potential conflict of interest was reported among directors, major shareholders, or their associates during the three months ended June 30, 2023[54] - The company has a non-competition agreement in place to prevent any potential competition with its major shareholders, effective since March 24, 2017[55] - No new business opportunities that may compete with the group's existing or future business were reported from major shareholders during the three months ended June 30, 2023[57] - All directors confirmed compliance with the GEM Listing Rules regarding securities transactions during the three months ended June 30, 2023[58] - The company has a stock option plan that allows for the issuance of up to 80,000,000 shares, representing 10% of the total issued shares as of the date of listing[61] - The stock option plan is valid for ten years from March 24, 2017, with no options granted, exercised, expired, or lapsed during the three months ended June 30, 2023[66]

Financial Performance - The group's revenue decreased by approximately 19.5% from about HKD 138.3 million in the year ended March 31, 2022, to about HKD 111.3 million in the year ended March 31, 2023[13]. - Gross profit fell by approximately 36.6% from about HKD 30.2 million to about HKD 19.1 million, with a gross profit margin declining from approximately 21.8% to 17.2%[13]. - The net loss attributable to the company's owners increased to approximately HKD 17.9 million from about HKD 3.6 million in the previous year[13]. - The decrease in revenue and gross profit margin was primarily due to ongoing adverse market competition conditions[13]. - The company's revenue decreased by approximately 19.6% to about HKD 111.3 million for the year ended March 31, 2023, compared to HKD 138.3 million in 2022, primarily due to a decline in residential interior design and renovation services[22]. - Revenue from residential interior design and renovation services was HKD 101.9 million, accounting for 91.6% of total revenue, while commercial services generated HKD 9.4 million, representing 8.4%[23]. - Direct costs decreased by approximately 14.8% to about HKD 92.1 million from HKD 108.1 million in the previous year, driven by the corresponding decrease in revenue[24]. - Other income increased from approximately HKD 1.3 million to about HKD 3.2 million, mainly due to non-recurring government subsidies related to the Employment Support Scheme[27]. - Financing costs rose by approximately 23.5% to about HKD 252,000, attributed to increased bank borrowing interest rates[31]. - The company recorded a loss attributable to owners of approximately HKD 17.9 million for the year ended March 31, 2023, compared to HKD 3.6 million in 2022[33]. Business Strategy and Outlook - The company anticipates continued demand for residential interior design services due to the government's housing supply strategy maintaining a 73:27 ratio of public to private housing over the next decade[14]. - The company plans to enhance brand marketing through mainstream and new media to attract new customers and strengthen its position in the interior design and renovation services industry[14]. - The company remains optimistic about the prospects for local interior design and renovation services despite challenges from financial market downturns and economic uncertainties[14]. - The company aims to improve customer experience and satisfaction by recruiting talented individuals, providing training, and enhancing management skills[14]. - The company plans to enhance sales and marketing efforts, recruit high-quality talent, and upgrade information systems to promote future growth[36]. - The company aims to expand its business coverage in Hong Kong to reach more potential customers, driven by the increasing affordability of housing among the public[19]. Financial Position and Management - As of March 31, 2023, the total unutilized net proceeds amount to approximately HKD 20.3 million, which is expected to be fully utilized by March 31, 2025[41]. - The company plans to allocate approximately HKD 0.5 million from the unutilized proceeds for upgrading its information systems by the end of the fiscal year ending March 31, 2025[41]. - The total debt as of March 31, 2023, is approximately HKD 9.6 million, an increase from HKD 5.1 million in 2022, primarily due to investments in life insurance contracts[45]. - The cash and bank balances as of March 31, 2023, are approximately HKD 34.5 million, down from HKD 57.7 million in 2022[45]. - The company's debt-to-equity ratio as of March 31, 2023, is approximately 46.4%, significantly higher than 13.3% in 2022[46]. - The group maintains a policy of regular monitoring of current and expected liquidity requirements to ensure sufficient cash reserves for both short-term and long-term needs[61]. - The company has no significant investments, acquisitions, or plans for capital assets as of March 31, 2023[48]. - The company maintains a prudent treasury policy to manage bank balances and ensure readiness for future growth opportunities[50]. - There are no significant contingent liabilities as of March 31, 2023, indicating a stable financial position[52]. Environmental, Social, and Governance (ESG) Initiatives - The group has implemented environmental protection measures, including wastewater discharge management and energy consumption control, in compliance with applicable Hong Kong environmental laws and regulations as of March 31, 2023[62][64]. - The group has committed to recycling and conservation principles, including initiatives like encouraging double-sided printing and reducing energy consumption by turning off idle lighting and appliances[62]. - The environmental, social, and governance (ESG) report details the group's activities and measures taken during the fiscal year ending March 31, 2023, compared to the previous year[69]. - The group emphasizes the importance of stakeholder engagement and the significance assessment in preparing the ESG report[75]. - The company aims to reduce its greenhouse gas emissions intensity by 5% by the fiscal year ending March 31, 2026, compared to the 2022 baseline[90]. - The company has set environmental goals related to greenhouse gas emissions, waste management, water usage, and energy consumption, which have been approved by the board[85]. - The company has implemented various energy-saving measures to control and reduce electricity consumption in its offices[92]. - The company actively engages with stakeholders to understand their concerns and improve its environmental, social, and governance performance[84]. - The company has established effective management policies and internal control systems regarding environmental, social, and governance matters[84]. - The company encourages the use of energy-efficient appliances and promotes energy-saving practices among employees[92]. - The company has not reported any significant violations of environmental laws and regulations that would have a major impact on its operations[86]. - The company is committed to enhancing employee awareness of environmental protection and compliance with relevant laws and regulations[85]. Employee Management and Development - As of March 31, 2023, the total number of employees is 38, unchanged from the previous year, with a gender distribution of 24 males and 14 females[127]. - The employee turnover rate for 2023 is approximately 23.68%, significantly higher than 12.66% in 2022[129]. - The turnover rate for male employees in 2023 is 25.53%, compared to 16.33% in 2022, while for female employees, it is 20.69%, up from 6.67%[129]. - The turnover rate for employees under 30 years old is 36.36% in 2023, a notable increase from 17.86% in 2022[129]. - The company has maintained a stable workforce with 37 full-time employees and 1 contract/temporary employee as of March 31, 2023[127]. - There were 0 reported work-related injuries in 2023, a decrease from 2 in 2022, with no loss of workdays due to injuries[137]. - The company has implemented a health and safety management system based on ISO 45001 to mitigate workplace risks[135]. - The employee gender ratio is approximately 1.71:1 in favor of males in 2023, compared to 1.53:1 in 2022[134]. - The company conducts regular performance reviews to assess employee performance and determine salary adjustments[129]. - The company is committed to providing equal employment opportunities and has a robust recruitment process based on merit[133]. - Approximately 59.57% of employees received training during the reporting period, down from 79.07% in 2022[142]. - The average training hours per employee were approximately 23.83 hours, compared to 25.30 hours in 2022[143]. - 100% of senior and middle management employees received training in 2023[142]. - The average training hours for male employees were 24.00 hours, while for female employees it was 23.53 hours in 2023[142]. Supplier and Community Engagement - The company has 144 suppliers in total, an increase from 108 in 2022, with 115 suppliers evaluated according to procurement practices[149]. - The number of suppliers in mainland China increased to 36 in 2023 from 17 in 2022[150]. - The company emphasizes the importance of environmental standards in supplier selection and regularly communicates with suppliers about eco-friendly products[151]. - The company has established a volunteer team of 20 members to provide free maintenance services to vulnerable groups, including the elderly and children[164]. - The company donated HKD 41,900 to the Chi Lin Nunnery and HKD 24,200 to the Lok Sin Fund Limited during the reporting period[164]. - The company aims to expand its charitable efforts in the future to meet community needs and create a favorable environment for its business[164]. Management Team - 温女士负责集团日常管理及人力资源，拥有超过17年的相关经验[196]. - 呂女士在审计、会计及公司秘书事务方面拥有超过14年的经验，担任审计委员会及薪酬委员会主席[194]. - 钟博士在银行业拥有超过37年的经验，曾任多家银行的高管[197]. - 朱博士拥有超过31年的工作经验，曾任香港特区政府效率促进办公室高级管理参议主任[199]. - 钟博士于2018年获得香港理工大学工商管理博士学位，具备丰富的学术背景[198]. - 温女士于2004年加入集团，逐步晋升至执行董事[196]. - 呂女士自2019年11月起为特许秘书及特许管治专业人员会员，具备专业资格[196]. - 钟博士自2021年起担任香港理工大学会计及金融学院专业应用教授（金融）[197]. - 朱博士于2015年获得香港理工大学工商管理博士学位，具备深厚的学术背景[199].

Financial Performance - Revenue for the three months ended December 31, 2022, was HKD 38,995,000, an increase of 17.0% compared to HKD 33,179,000 for the same period in 2021[4] - Gross profit for the nine months ended December 31, 2022, was HKD 20,565,000, a decrease of 22.9% from HKD 26,670,000 in the previous year[4] - The company reported a net loss of HKD 3,032,000 for the three months ended December 31, 2022, compared to a profit of HKD 566,000 in the same period of 2021[5] - Operating loss for the nine months ended December 31, 2022, was HKD 4,122,000, compared to an operating profit of HKD 1,778,000 for the same period in 2021[4] - Total revenue for the nine months ended December 31, 2022, was HKD 98,280,000, down 12.3% from HKD 112,104,000 in the same period of 2021[17] - The net loss for the nine months ended December 31, 2022, was approximately HKD 4.3 million, compared to a net profit of approximately HKD 1.1 million for the same period in 2021, primarily due to reduced project profits and increased operational costs[32] - The gross profit decreased by approximately HKD 6.1 million or about 22.8% to approximately HKD 20.6 million for the nine months ended December 31, 2022, with a gross profit margin of about 20.9%, down from 23.8% in the previous year[39] Share Performance - The basic and diluted loss per share for the three months ended December 31, 2022, was HKD (0.38), compared to earnings of HKD 0.07 per share in the same period of 2021[5] - The basic loss per share for the nine months ended December 31, 2022, was HKD (0.54), compared to a profit of HKD 0.15 per share in the same period of 2021[26] - The company has maintained a weighted average number of ordinary shares of 800,000,000 for the periods reported[26] Expenses and Income - The company’s administrative and other operating expenses for the three months ended December 31, 2022, were HKD 8,751,000, slightly higher than HKD 8,682,000 in the same period of 2021[4] - Other income and gains for the nine months ended December 31, 2022, amounted to HKD 1,729,000, an increase from HKD 1,032,000 in the previous year[4] - The group reported a total income of HKD 415,000 from other income and gains for the three months ended December 31, 2022, compared to HKD 342,000 in the same period of 2021[19] Equity and Shareholding - The company’s total equity attributable to owners as of December 31, 2022, was HKD 34,296,000, down from HKD 42,868,000 at the end of the previous year[7] - As of December 31, 2022, the major shareholder, Junhua, holds 408,370,000 shares, representing 51.05% of the company's ordinary shares[47] - Ms. Huang Tingnuan, as the spouse of Dr. Chen, is deemed to have the same shareholding of 408,370,000 shares, also representing 51.05%[47] - Ms. Cai Huiting holds 84,230,000 shares, accounting for 10.53% of the company's ordinary shares[47] - Mr. Sun Xincai owns 44,000,000 shares, which is 5.50% of the company's ordinary shares[47] Dividends - The group did not recommend any dividend payment for the nine months ended December 31, 2022, consistent with the previous year[29] - The board does not recommend any dividend payment for the nine months ended December 31, 2022[42] Business Operations - The company is primarily engaged in providing interior design and renovation services in Hong Kong[10] - Revenue from residential interior design and renovation services for the three months ended December 31, 2022, was HKD 33,023,000, a slight increase from HKD 32,734,000 in the same period of 2021[17] - Revenue from commercial interior design and renovation services increased significantly to HKD 5,972,000 for the three months ended December 31, 2022, compared to HKD 445,000 in the same period of 2021[17] - The revenue from residential interior design and renovation services accounted for approximately 92.7% of total revenue, while commercial services accounted for about 7.3%[31] - The company plans to expand its business coverage in Hong Kong by opening more branches to reach more potential customers[35] - The company anticipates a challenging year ahead due to the adverse economic impacts of COVID-19, which have affected construction progress and increased operational costs[35] - The company will continue to monitor operational costs and current market trends to anticipate any downturns in the property market[35] Corporate Governance - The company has adopted corporate governance principles to maintain high standards of accountability and transparency, crucial for stakeholder trust[66] - The audit committee, established on March 24, 2017, consists of independent non-executive directors, ensuring compliance with GEM listing rules[67] - The audit committee's primary duties include reviewing financial data, internal control procedures, and risk management systems, ensuring adequate disclosure[69] - The company has confirmed compliance with the GEM Listing Rules regarding securities transactions by all directors during the nine months ending December 31, 2022[56] - The audit committee includes at least one member with appropriate professional qualifications or financial management expertise, as required by GEM listing rules[69] Stock Options - The company has adopted a share option scheme, allowing for the issuance of up to 80,000,000 shares, which is capped at 10% of the total issued shares at the time of listing[59][60] - The share option scheme aims to reward selected participants for their contributions to the company[57] - The stock option plan is valid for a period of ten years starting from March 24, 2017, with no further options to be granted thereafter[63] - As of December 31, 2022, there were no stock options granted, exercised, expired, or lapsed under the stock option plan, and no unexercised stock options remain[63] - The company must seek shareholder approval for any stock options exceeding the 1% limit of issued shares within any 12-month period[62] - The company must issue a circular to shareholders detailing the identity of the grantee and the terms of the stock options if exceeding the specified limits[62] Compliance and Conflicts - No purchases, sales, or redemptions of the company's listed securities were made by the company or its subsidiaries during the nine months ending December 31, 2022[51] - There were no reported conflicts of interest or competitive businesses involving the company's directors or major shareholders during the nine months ending December 31, 2022[52] - No new business opportunities related to competition with the group's existing or future businesses were reported from major shareholders during the nine months ending December 31, 2022[55] - The unaudited condensed consolidated financial statements for the nine months ended December 31, 2022, have been reviewed by the audit committee and comply with applicable accounting standards[69]