Financial Performance - For the fiscal year ending March 31, 2023, the company's revenue increased by approximately HKD 4.0 million, representing a growth of about 5.3% to approximately HKD 78.4 million compared to the previous year[10]. - The cost of sales rose by approximately 25.8% to about HKD 54.1 million, primarily due to increased material costs and management expenses[11]. - Gross profit decreased by approximately 22.7% to about HKD 24.3 million, resulting in a gross margin decline from 42.3% to 31.0%[11]. - The group has decided not to declare any dividends for the current year, consistent with the previous year[16]. - The group anticipates that business performance will depend on the COVID-19 situation and geopolitical tensions, expecting continued pressure in the coming year[17]. - The group reported a cumulative loss of HKD 158,212 thousand as of March 31, 2023, compared to HKD 115,167 thousand as of March 31, 2022[128]. Cost Management - The group's sales and distribution costs decreased by approximately 27.3% from about HKD 17.8 million to about HKD 12.9 million[13]. - Administrative and other expenses reduced by approximately 34.8% from about HKD 31.9 million to about HKD 20.8 million, mainly due to cost control measures[13]. - Financing costs decreased by approximately 32.4% from about HKD 820,000 to about HKD 554,000 due to the repayment of certain borrowings[14]. - The company is committed to implementing cost-cutting measures and streamlining operations to navigate ongoing challenges[6]. - The company will continue to enhance operational efficiency and implement cost control measures to improve core competitiveness[46]. Business Strategy - The company plans to reduce physical retail stores in Hong Kong while expanding its online business, reflecting a shift in consumer shopping behavior towards online platforms[6]. - The company aims to collaborate with other manufacturers in the Asia-Pacific region to expand its business into children's and youth clothing[6]. - The company anticipates that the global economic situation will improve in 2023/2024, allowing for exploration of suitable investment opportunities for business diversification[7]. - The group plans to review its asset structure and business strategy to better respond to future uncertainties and will strictly implement cost control policies[17]. - The group aims to maintain a sustainable and profitable retail business while gradually developing online and social media distribution channels for future growth[17]. Corporate Governance - The board consists of six directors, with independent non-executive directors making up 50% of the board members[64]. - The company emphasizes good corporate governance to enhance shareholder value and ensure effective accountability[56]. - The management team is responsible for executing the business plans and strategies adopted by the board[61]. - The company has adopted the GEM Listing Rules as the code of conduct for directors' securities transactions, confirming compliance during the fiscal year 2023[59]. - The company has a commitment to regular reviews of its corporate governance practices to ensure compliance with applicable codes[57]. Environmental, Social, and Governance (ESG) Initiatives - The report covers the company's environmental, social, and governance performance for the fiscal year ending March 31, 2023[164]. - The board is responsible for formulating ESG strategies and ensuring effective risk management and internal controls[168]. - The ESG Working Committee has been established to assist the board in managing ESG matters and monitoring key performance indicators[169]. - The company is committed to energy conservation, reducing greenhouse gas emissions, and providing a safe and healthy work environment[167]. - The company emphasizes equal opportunities and employee welfare as part of its social responsibility initiatives[176]. Stakeholder Engagement - Stakeholder engagement is conducted through various communication channels to align the company's sustainable development strategy with stakeholder interests[173]. - The company maintains regular communication with stakeholders through various channels, including annual meetings and email[175]. - The company encourages stakeholder feedback on its environmental, social, and governance matters to enhance overall performance[177]. Audit and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the consolidated financial statements and found no significant issues[160]. - The company has established policies and procedures for risk management and internal control, which are regularly monitored and assessed for effectiveness[100]. - The company is committed to complying with the disclosure requirements under the GEM Listing Rules and the Securities and Futures Ordinance[107]. - The company has not made any charitable donations during the fiscal year 2023, consistent with 2022[134]. - The company has no significant compliance issues with relevant laws and regulations that would materially affect its operations[120].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內 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公 告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 Mansion International Holdings Limited 民 信 國 際 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8456） 截至2023年3月31日止年度全年業績公告 民信國際控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈本公司及 其附屬公司（「本集團」）截至2023年3月31日止年度之經審核綜合業績。本公告列 載本公司2022╱2023年年報（「2022╱2023年年報」）全文，並符合聯交所GEM證券 上市規則（「GEM上市規則」）中有關年度業績初步公告附載資料的相關規定。 承董事會命 民信國際控股有限公司 主席 姚汝壑 香港，2023年6月30日 於本公告日期，執行董事為姚汝壑先生（主席）、王嘉雯女士及金振芳女士；而獨 立非執行董事為胡子敬先生、郎永華先生及黃纓喻女士。 本公告乃遵照GEM上市規則而刊載，旨在提供有 ...

Revenue Performance - For the three months ended December 31, 2022, the company's revenue was HKD 26,762,000, a 4.98% increase from HKD 25,491,000 in the same period of 2021[3] - For the nine months ended December 31, 2022, the company's revenue decreased to HKD 61,887,000, down 4.95% from HKD 64,483,000 in the same period of 2021[3] - The company's revenue decreased by approximately 4.0%, from HKD 64,500,000 in the corresponding period to HKD 61,900,000[22] - The OEM production revenue declined by about 2.7%, from HKD 39,400,000 to HKD 38,400,000, primarily due to the impact of the COVID-19 pandemic[22] - Revenue from original brand manufacturing for the nine months ended December 31, 2022, was HKD 23,503,000, down 6.15% from HKD 25,043,000 in the same period of 2021[9] - The original brand production revenue decreased by approximately 6.1%, from HKD 25,000,000 to HKD 23,500,000, influenced by reduced consumer purchasing willingness[22] Profit and Loss - Gross profit for the three months ended December 31, 2022, was HKD 9,633,000, representing a 10.69% increase from HKD 8,701,000 in the same period of 2021[3] - The company reported a loss before tax of HKD 4,118,000 for the three months ended December 31, 2022, compared to a loss of HKD 2,164,000 in the same period of 2021[3] - The net loss for the nine months ended December 31, 2022, was HKD 6,357,000, significantly improved from a loss of HKD 15,420,000 in the same period of 2021[3] - The basic and diluted loss per share for the nine months ended December 31, 2022, was HKD 3.00, compared to HKD 31.92 in the same period of 2021[3] - Gross profit decreased by approximately HKD 2,700,000, from HKD 25,300,000 to HKD 22,600,000, with a gross margin decline from 39.2% to 36.5%[24] - The pre-tax loss decreased by approximately 58.8%, from HKD 15,400,000 to HKD 6,400,000, mainly due to the gain from the sale of a subsidiary of about HKD 6,500,000[27] Equity and Financial Position - The company’s total equity as of December 31, 2022, was HKD 10,100,000, a decrease from HKD 16,457,000 as of April 1, 2022[4] - The company’s administrative and other expenses for the nine months ended December 31, 2022, were HKD 23,389,000, a slight decrease from HKD 24,249,000 in the same period of 2021[3] Business Operations and Strategy - The group plans to implement cost-saving measures, including streamlining operations and restructuring production with other manufacturers in the Asia-Pacific region to reduce costs[32] - The group is shifting focus towards online business development, reducing physical retail presence in Hong Kong, and investing heavily in e-commerce[32] - The group anticipates a potential improvement in the global economic situation for 2022/2023 and is exploring suitable investment opportunities for business diversification[32] - Sales of original brand products continued to decrease, significantly affected by the stagnation of inbound tourism and consumer activities due to pandemic measures[30] - The group's OEM production business has declined due to the impact of the COVID-19 pandemic, with future performance expected to remain under pressure[30] Corporate Governance and Compliance - The company has adopted GEM listing rules as the code of conduct for securities trading by directors, confirming compliance during the reporting period[61] - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements and confirmed compliance with applicable accounting standards[66] - The company has confirmed that there were no undisclosed interests or short positions in shares or related securities as of December 31, 2022[58] - No significant acquisitions or disposals of subsidiaries or associated companies occurred during the review period[64] - The company did not declare any dividends for the current period, consistent with the previous year[15] Shareholder Information - As of December 31, 2022, Mr. Yao Ruhe held 400,000 ordinary shares, representing approximately 0.19% of the company[57] - The weighted average number of ordinary shares used to calculate basic and diluted loss per share was 211,524,720 for the three months ended December 31, 2022[16] - The stock option plan adopted on December 28, 2017, allows for the issuance of up to 10% of the total issued shares as stock options[41] - No stock options were granted, exercised, canceled, or lapsed during the reporting period, and there are no unexercised stock options as of December 31, 2022[52] - The company has not established any preferential rights for existing shareholders regarding the issuance of new shares[53] - No directors or major shareholders had any competing interests outside the group's business during the reporting period[63] Fundraising and Securities - The group has not conducted any fundraising activities during the reporting period[36] - No repurchase of listed securities occurred during the reporting period[59] - On April 1, 2022, the group sold its wholly-owned subsidiary Mantex Suppliers Co. Limited for HKD 1, completing the transaction on the same day[34] - The company completed the sale of its subsidiary Mantex Suppliers for a cash consideration of HKD 1, resulting in a gain of HKD 6,458,000[18]

Financial Performance - For the six months ended September 30, 2022, the company reported total revenue of HKD 35,125,000, a decrease of 9.7% compared to HKD 38,992,000 in the same period of 2021[8]. - Gross profit for the same period was HKD 12,982,000, down 21.0% from HKD 16,566,000 year-on-year[8]. - The company recorded a loss before tax of HKD 2,233,000, significantly improved from a loss of HKD 13,256,000 in the previous year[8]. - The net loss for the period was HKD 7,998,000, compared to a net loss of HKD 9,436,000 in the same period last year, indicating a 15.3% reduction in losses[8]. - The total comprehensive loss for the period was HKD 11,034,000, which includes a loss of HKD 13,256,000 attributed to the owners of the company[12]. - The company reported a pre-tax loss of HKD 2,233,000 for the six months ended September 30, 2022, significantly improved from a loss of HKD 13,256,000 in the same period of 2021[35]. - The company reported a net loss of HKD 2,233,000 for the six months ended September 30, 2022, compared to a loss of HKD 13,256,000 for the previous period[12]. - The company reported a net loss of HKD 7,998,000 for the three months ended September 30, 2022, compared to a loss of HKD 9,436,000 in the same period of 2021[35]. Assets and Liabilities - As of September 30, 2022, total assets amounted to HKD 28,438,000, down from HKD 37,803,000 as of March 31, 2022[9]. - The company's cash and bank balances decreased to HKD 8,080,000 from HKD 19,682,000, reflecting a decline of 58.9%[9]. - Non-current assets increased to HKD 9,254,000 from HKD 6,880,000, representing a growth of 34.5%[9]. - The company's equity attributable to owners decreased to HKD 14,224,000 from HKD 16,457,000, a decline of 13.3%[10]. - Inventory levels decreased to HKD 5,207,000 from HKD 6,786,000, indicating a reduction of 23.2%[9]. - Trade receivables increased significantly to HKD 9,654,000 from HKD 4,078,000, marking an increase of 137.5%[9]. - Trade payables as of September 30, 2022, amounted to HKD 1,252,000, with HKD 1,084,000 due within 30 days, and HKD 168,000 due between 31 days to 1 year[46]. - Accrued expenses and other payables decreased to HKD 4,905,000 as of September 30, 2022, from HKD 5,779,000 as of March 31, 2022[50]. - Provisions for current liabilities were HKD 1,198,000 as of September 30, 2022, down from HKD 1,511,000 as of March 31, 2022[52]. - Lease liabilities totaled HKD 4,289,000 as of September 30, 2022, compared to HKD 5,060,000 as of March 31, 2022[54]. Cash Flow and Financing - The company experienced a net cash outflow from operating activities of HKD 9,702,000 for the six months ended September 30, 2022, compared to a net inflow of HKD 870,000 in the same period of 2021[15]. - The cash and cash equivalents decreased to HKD 8,080,000 as of September 30, 2022, down from HKD 19,682,000 at the beginning of the period[15]. - The company’s cash outflow from investing activities was HKD 1,900,000 for the six months ended September 30, 2022, compared to HKD 3,000,000 in the same period of 2021[15]. - The company’s financing activities resulted in a net cash outflow of HKD 1,947,000 in the previous year, indicating a shift in financing strategy[15]. - The company issued 158,643,540 new shares through a rights issue, raising approximately HKD 55.5 million, with costs of about HKD 1.2 million[59]. - The estimated net proceeds from the rights issue are approximately HKD 54,300,000, which will be allocated as follows: HKD 15,400,000 for rent and management fees, HKD 22,000,000 for employee salaries, HKD 5,800,000 for working capital, and HKD 11,100,000 for repaying part of the group's current liabilities[81]. - As of September 30, 2022, approximately HKD 47.6 million of the net proceeds has been utilized, including HKD 22.4 million for employee salaries and HKD 11.3 million for debt repayment[83]. Operational Challenges - The company reported a significant impact on its operations due to the COVID-19 pandemic, affecting both its OEM and original brand production revenues[60]. - The company’s management discussed the ongoing challenges in the supply chain and local economic activities due to the pandemic, affecting sales in both local and overseas markets[60]. - The group anticipates that the performance of its OEM production business will remain under pressure due to ongoing geopolitical tensions and the impact of the COVID-19 pandemic[67]. - The group plans to implement cost-saving measures and restructure production in collaboration with other manufacturers in the Asia-Pacific region[68]. Corporate Governance - The company has maintained a public float of at least 25% of its issued shares, in compliance with GEM listing rules[107]. - The audit committee, consisting of three independent non-executive directors, has reviewed the financial statements and confirmed compliance with applicable accounting standards and GEM listing rules[109]. - The company has adhered to the corporate governance code as per GEM listing rules throughout the reporting period[101]. - The company has established an audit committee to oversee financial reporting and internal controls, ensuring transparency and accountability[109]. - The company has adopted the GEM listing rules as the code of conduct for securities trading by directors, confirming compliance during the reporting period[103]. Employee and Shareholder Information - As of September 30, 2022, the group employed approximately 40 employees in Hong Kong, down from 50 as of March 31, 2022[80]. - The company has provided competitive compensation and benefits to employees, including mandatory provident fund, medical insurance, and statutory holidays[80]. - The total number of shares that may be issued under the share option scheme is capped at 10% of the total issued shares as of August 9, 2021, which amounts to 4,807,380 shares[91]. - No share options were granted, exercised, cancelled, or lapsed during the reporting period[95]. - The share option scheme will remain effective for a period of 10 years from the adoption date, expiring on December 27, 2027[93]. - The company confirmed that there were no other directors or key executives holding any interests or short positions in the company's shares or related securities as of September 30, 2022[99]. - The company did not declare any dividends for the current period, consistent with the previous year[34]. - The board has resolved not to declare any dividends for the current period, consistent with the previous year[66].

Financial Performance - The company's revenue for the three months ended June 30, 2022, was HKD 15,154,000, a decrease of 16.3% compared to HKD 18,118,000 in the same period of 2021[3] - Gross profit for the same period was HKD 5,593,000, down 30.0% from HKD 7,994,000 in 2021[3] - The company reported a profit before tax of HKD 5,778,000, compared to a loss of HKD 3,820,000 in the previous year[3] - Net profit for the period was HKD 5,765,000, a significant recovery from a loss of HKD 3,820,000 in 2021[3] - Basic and diluted earnings per share for the period were HKD 2.73, compared to a loss per share of HKD 8.29 in 2021[3] - Revenue decreased by approximately 16.0%, from HKD 18,100,000 for the three months ended June 30, 2021, to HKD 15,200,000 for the same period in 2022[20] - The company's OEM production revenue decreased by approximately 14.7%, from HKD 10,900,000 to HKD 9,300,000, primarily due to the impact of the COVID-19 pandemic[20] - The company's original brand production revenue decreased by approximately 18.1%, from HKD 7,200,000 to HKD 5,900,000, also affected by consumer purchasing sentiment due to the pandemic[20] - Gross profit decreased by approximately 30.0%, from HKD 8,000,000 to HKD 5,600,000, resulting in a gross margin decline from 44.1% to 36.9%[21] - The pre-tax profit increased from a loss of approximately HKD 3,800,000 to a profit of approximately HKD 5,800,000, mainly due to the gain from the sale of a subsidiary of approximately HKD 6,500,000[24] Equity and Financing - The company’s total equity as of June 30, 2022, was HKD 22,222,000, an increase from HKD 16,457,000 at the beginning of the period[4] - The company’s financing costs decreased to HKD 157,000 from HKD 201,000 in the previous year[12] - The company's financing costs decreased by approximately 21.9%, from HKD 201,000 to HKD 157,000, due to the repayment of certain borrowings[23] - The company received government subsidies amounting to HKD 576,000 during the period[11] Dividends and Share Options - The company did not declare any dividends for the period, consistent with the previous year[15] - The total number of shares available for issuance under the share option plan is capped at 10% of the total issued shares as of August 9, 2021, which amounts to 4,807,380 shares[37] - Each participant in the share option plan is limited to a maximum allocation of options that does not exceed 1% of the total issued shares during any 12-month period[38] - No share options were granted, exercised, cancelled, expired, or remained unexercised during the reporting period[48] - The share option plan is effective for a period of 10 years from December 28, 2017, until December 27, 2027[41] - The symbolic price for accepting the granted share options is set at HKD 1[44] - The company has not redeemed any of its listed securities during the reporting period[56] Compliance and Governance - The company has adopted the GEM Listing Rules as the code of conduct for securities trading by directors, confirming compliance during the reporting period[58] - The company has established an audit committee to review financial statements and ensure compliance with applicable accounting standards and regulations[61] - As of June 30, 2022, the company had sufficient public float, with at least 25% of issued shares held by the public, in accordance with GEM Listing Rules[57] - There are no management contracts in place for the administration of the company's business, aside from employment contracts for executive directors[51] Future Outlook and Strategy - The company expects continued pressure on its OEM production business due to the ongoing COVID-19 pandemic and geopolitical tensions[26] - The company plans to explore suitable investment opportunities to diversify its business and improve overall performance, anticipating an improvement in the global economic situation due to government initiatives[28] - The company reported a significant increase in revenue for Q1 2022/23, with a year-over-year growth of 15%[64] - User data showed an increase in active users by 20% compared to the previous quarter, reaching a total of 1.2 million active users[64] - The company provided a positive outlook for the upcoming quarters, projecting a revenue growth of 10-12% for the full fiscal year[64] - New product launches are expected to contribute an additional 5% to revenue in the next quarter, with two major products set to be released[64] - The company is investing in new technology development, allocating approximately $5 million for R&D in the next fiscal year[64] - Market expansion plans include entering two new international markets by the end of Q3 2022, aiming for a 15% market share in those regions[64] - The company is considering strategic acquisitions to enhance its product offerings, with a budget of $10 million earmarked for potential acquisitions[64] - A new marketing strategy has been implemented, focusing on digital channels, which is expected to increase customer engagement by 25%[64] - The company reported a gross margin of 40%, maintaining a stable margin compared to the previous quarter[64] - Operating expenses increased by 8% due to higher marketing and R&D investments, but the company remains committed to long-term growth[64]

Financial Performance - The group's revenue for the year ended March 31, 2022, decreased by approximately 14.7% to about HKD 74.5 million from approximately HKD 87.3 million in the corresponding year[14]. - The revenue from the OEM production business slightly decreased by about 1.1% to approximately HKD 43.7 million, while the original brand production revenue dropped significantly by about 28.4% to approximately HKD 30.8 million[14]. - The group's gross profit decreased by approximately 19.8% to about HKD 31.5 million, resulting in a gross margin decline from 45.0% to 42.3%[15]. - The pre-tax loss increased by about 1.1 times to approximately HKD 21.4 million, primarily due to a significant reduction in gross profit[20]. - The group recorded an inventory write-down of approximately HKD 1.4 million due to provisions for obsolete and slow-moving inventory items[16]. - The group reported a total reserve available for distribution to shareholders of HKD 3,242,000 as of March 31, 2022, compared to HKD 13,714,000 as of March 31, 2021[149]. Cost Management and Operational Efficiency - The company plans to reduce costs by simplifying operations and collaborating with other manufacturers in the Asia-Pacific region to adjust production[10]. - The company will implement further cost-cutting measures in its OEM production business[10]. - The company plans to continue improving operational efficiency and controlling costs while optimizing existing resources[59]. - The company is committed to improving and enhancing employee management and professional skills, with no collective bargaining agreements or union representation among employees[63]. E-commerce and Market Strategy - There will be a shift from physical retail stores in Hong Kong to expanding online business, reflecting a change in consumer shopping behavior[10]. - The company aims to invest in building its e-commerce platform and collaborate with other online retailers to enhance its online presence[10]. - The group plans to maintain a sustainable and profitable retail business while gradually developing online and social media distribution channels for future growth[23]. Economic Outlook - The government’s issuance of HKD 5,000 electronic consumption vouchers and ongoing COVID-19 vaccination efforts are expected to improve the global economic outlook for 2022/2023[11]. - The group anticipates that the global economic situation will improve in 2022/2023 due to government-issued electronic consumption vouchers and ongoing vaccinations[23]. - The company remains cautiously optimistic about the recovery of the local retail market despite the ongoing COVID-19 pandemic[58]. Corporate Governance - The company emphasizes the importance of good corporate governance to enhance shareholder value and has incorporated governance elements into its management structure and risk management processes[72]. - The company has established committees for audit, nomination, and remuneration, ensuring effective oversight and governance practices[74]. - The company is committed to regular reviews of its corporate governance practices to ensure compliance with applicable codes and regulations[73]. - The board of directors consists of six members, with independent non-executive directors making up 50% of the board[82]. - The company has adopted a board diversity policy, emphasizing the importance of diverse skills, experiences, and perspectives among board members[91]. Shareholder Engagement and Remuneration - The company has adopted a dividend policy to allow shareholders to share in the company's profits while retaining sufficient funds for future growth[130]. - The board will consider various factors, including the group's capital expenditure needs and overall economic conditions, when deciding on dividend distributions[135]. - The remuneration policy for directors includes considerations of comparable salaries in similar companies and the responsibilities of the positions[114]. Audit and Compliance - The independent auditor's report confirmed that the consolidated financial statements reflect a true and fair view of the group's financial position as of March 31, 2022[190]. - The audit committee, consisting of three independent non-executive directors, has reviewed the consolidated financial statements without finding any significant issues[186]. - The independent auditor's remuneration for the statutory audit services in the fiscal year 2022 was HKD 520,000, with an additional HKD 120,000 for non-audit services related to the rights issue[115]. Employee and Stakeholder Relations - The management expresses gratitude to employees, partners, suppliers, and customers for their ongoing support[11]. - The company is focused on stakeholder engagement to gather valuable feedback for future business and community development[63]. - The company has taken various steps in the 2022 fiscal year to ensure responsible operations that align with the interests of customers, employees, suppliers, and other stakeholders[63].

Financial Performance - For the three months ended December 31, 2021, the company reported revenue of HKD 25,491,000, an increase of 15.0% compared to HKD 21,961,000 in the same period of 2020[4] - The gross profit for the nine months ended December 31, 2021, was HKD 25,267,000, representing a significant increase of 116.5% from HKD 11,638,000 in the same period of 2020[4] - The company incurred a loss before tax of HKD 15,420,000 for the nine months ended December 31, 2021, an improvement from a loss of HKD 20,154,000 in the same period of 2020[4] - The basic and diluted loss per share for the nine months ended December 31, 2021, was HKD 31.92, compared to HKD 68.34 in the same period of 2020, indicating a reduction in loss per share[4] - The total comprehensive loss attributable to owners of the company for the nine months ended December 31, 2021, was HKD 13,198,000, a decrease from HKD 22,510,000 in the same period of 2020[4] - The company reported a total revenue of HKD 64,483,000 for the nine months ended December 31, 2021, a decrease of 2.5% compared to HKD 66,308,000 in the same period of 2020[4] - The company's revenue decreased by approximately 2.7%, from about HKD 66,300,000 in the corresponding period to about HKD 64,500,000[20] - The OEM production business revenue increased by approximately 9.4%, from about HKD 36,000,000 to about HKD 39,400,000, driven by new orders from new clients[20] - The original brand production business revenue decreased by approximately 17.5%, from about HKD 30,300,000 to about HKD 25,000,000, primarily due to the impact of the COVID-19 pandemic on consumer purchasing willingness[20] - The gross profit increased by approximately 1.2 times, from about HKD 11,600,000 to about HKD 25,300,000, resulting in a gross margin increase from 17.6% to 39.2%[21] - The pre-tax loss decreased by approximately 23.8%, from about HKD 20,200,000 to about HKD 15,400,000, mainly due to significant reductions in administrative and other expenses[25] - The company reported a loss attributable to owners of approximately HKD 15,420,000 for the nine months ended December 31, 2021, compared to a loss of HKD 20,171,000 in the previous year[14] Financing and Costs - The company’s financing costs for the nine months ended December 31, 2021, were HKD 634,000, down from HKD 1,716,000 in the same period of 2020, reflecting a reduction in financing expenses[4] - Financing costs decreased by approximately 62.7%, from about HKD 1,700,000 to about HKD 634,000, due to the repayment of certain borrowings[24] - The cost of sales decreased by approximately 28.3%, from about HKD 54,700,000 to about HKD 39,200,000, due to adjustments in production methods[21] Business Strategy and Future Outlook - The group is reviewing its asset structure and business strategy to adapt to current economic uncertainties and is committed to strict cost control measures[29] - The board anticipates that the OEM production business will remain under pressure in the future due to ongoing geopolitical tensions and fluctuations in global financial markets[27] - The sales of original brand products continued to decline during the period, significantly affected by the pandemic and the stagnation of inbound tourism, leading to a challenging business environment in the short term[27] Share Capital and Rights Issue - The group plans to raise approximately HKD 55.5 million through a rights issue, issuing 158,643,540 shares at a subscription price of HKD 0.35 per share[33] - The net proceeds from the rights issue are estimated to be around HKD 53.4 million, allocated for various operational expenses including HKD 15.4 million for rent and management fees, and HKD 22 million for employee salaries[33] - The board proposed to increase the authorized share capital from HKD 20 million to HKD 100 million, which was approved by shareholders on December 16, 2021[31] Corporate Governance and Management Changes - The audit committee was established on January 26, 2018, in compliance with GEM Listing Rules, consisting of three independent non-executive directors[62] - The audit committee reviewed the unaudited consolidated performance for the period and discussed accounting principles and financial reporting matters with management[62] - The company has appointed Mr. Yao Ruhe as an executive director effective from May 12, 2021[64] - Mr. Cao Zhiguang resigned as an independent non-executive director and committee member effective June 1, 2021[64] - Mr. Hu Zijing was appointed as an independent non-executive director and chairman of the audit committee effective June 28, 2021[64] - Ms. Huang Yingyu was appointed as an independent non-executive director and committee member effective June 28, 2021[64] Stock Options and Shareholder Information - The stock option plan allows a maximum allocation of stock options to any participant not exceeding 1% of the total issued shares during any 12-month period[42] - A total of 6,807,380 stock options were exercised during the period, with 1,600,000 options exercised by eligible directors and employees on July 30, 2021[53] - The stock option plan will remain effective for a period of 10 years from the adoption date, expiring on December 27, 2027[42] - The exercise price for stock options granted is set at HKD 0.3, with a symbolic cost of HKD 1 payable upon acceptance of the offer[49] - The company confirmed compliance with the GEM Listing Rules regarding sufficient public float, maintaining at least 25% of issued shares in public hands[56] - No stock repurchases were made by the company during the period[55] - There were no major changes in the interests of directors or substantial shareholders in the company's shares as of December 31, 2021[54] Other Information - The company completed a share consolidation on June 17, 2021, merging every twenty existing shares into one consolidated share with a par value of HKD 0.2[30] - The company sold its wholly-owned subsidiary Mansion Success Holdings Limited for a cash consideration of HKD 50,000, completing the transaction on August 13, 2021[35] - There have been no significant events affecting the group since December 31, 2021[37] - The stock option plan can be terminated by a resolution at a shareholders' meeting, but options granted prior to termination remain valid[48] - The company has not conducted any significant acquisitions or disposals of subsidiaries during the review period[59]

Financial Performance - For the six months ended September 30, 2021, the company reported revenue of HKD 38,992,000, a decrease of 12.1% compared to HKD 44,347,000 in the same period of 2020[9] - Gross profit for the same period was HKD 16,566,000, representing an increase of 130.5% from HKD 7,184,000 in 2020[9] - The company recorded a loss before tax of HKD 13,256,000, an improvement of 30.9% compared to a loss of HKD 19,220,000 in the previous year[9] - The company reported a net loss attributable to owners of HKD 11,034,000 for the six months ended September 30, 2021, compared to HKD 18,134,000 in the same period of 2020[9] - Basic and diluted loss per share improved to HKD 28.37 from HKD 83.35 year-over-year[9] - The group reported a loss before tax of HKD 13,256,000 for the six months ended September 30, 2021, compared to a loss of HKD 19,233,000 in the same period of 2020, representing a 30.7% improvement[28] - The group reported a basic and diluted loss per share of HKD 0.199 for the six months ended September 30, 2021, compared to HKD 0.833 in the same period of 2020, reflecting a decrease in loss per share by 76.1%[35] - The group reported a total of HKD 6,708,000 in right-of-use assets as of September 30, 2021, after accounting for depreciation of HKD 3,718,000 during the period[39] Assets and Liabilities - Total assets as of September 30, 2021, were HKD 25,580,000, down from HKD 41,420,000 as of March 31, 2021[10] - Current liabilities increased to HKD 67,904,000 from HKD 70,243,000, indicating a slight reduction in financial obligations[10] - The company's total equity as of September 30, 2021, was HKD (32,803,000), reflecting a decline from HKD (8,353,000) a year earlier[13] - The company’s cash and cash equivalents decreased to HKD 2,337,000 from HKD 4,190,000 year-on-year[15] - The company has outstanding loans totaling approximately HKD 8,202,000 as of September 30, 2021, which were due on June 30, 2021[52] - As of September 30, 2021, the company's trade payables increased to HKD 20,069,000 from HKD 8,901,000 as of March 31, 2021, representing a 126% increase[46] - The company's accrued expenses and other payables rose to HKD 17,898,000 as of September 30, 2021, compared to HKD 12,321,000 as of March 31, 2021, indicating a 45% increase[51] - Contract liabilities decreased to HKD 10,978,000 as of September 30, 2021, from HKD 12,975,000 as of March 31, 2021, reflecting a 15% decline[50] Cash Flow and Financing - Cash generated from operating activities decreased significantly to HKD 870,000 from HKD 6,041,000 year-on-year[15] - The company had a net cash outflow from financing activities of HKD 1,947,000, compared to HKD 66,117,000 in the previous period[15] - The group completed the sale of its wholly-owned subsidiary Mansion Success Holdings Limited for a cash consideration of HKD 50,000 on August 13, 2021[77] - The proposed rights issue aims to issue 158,643,540 shares at a subscription price of HKD 0.35 per share, raising approximately HKD 55,500,000[83] - The estimated net proceeds from the rights issue are approximately HKD 53,400,000, intended for various operational expenses and debt repayment[83] Operational Strategy and Market Focus - The company is focusing on enhancing operational efficiency and exploring new market opportunities to drive future growth[9] - The company’s operational strategy includes focusing on its own brand "Mides" and expanding its retail presence in Hong Kong and China[24] - The company’s revenue segments include OEM production and own brand production, primarily targeting markets in Hong Kong, the UK, and the US[24] - The group anticipates that the performance of its OEM production business will remain under pressure due to the ongoing COVID-19 pandemic and geopolitical tensions[68] - The group is reviewing its existing asset structure and business strategies to adapt to future uncertainties and will strictly implement cost control policies[69] - The group plans to actively explore suitable investment opportunities to diversify its business and enhance overall development for better financial returns to shareholders[69] Employee and Corporate Governance - As of September 30, 2021, the group employed approximately 65 employees in Hong Kong, an increase from 63 employees as of March 31, 2021[85] - The audit committee, consisting of three independent non-executive directors, has reviewed the financial statements and confirmed compliance with applicable accounting standards[115] - The company has adopted the GEM Listing Rules as the code of conduct for directors' securities transactions, with no known non-compliance incidents during the period[110] - The company has no competitive interests from directors or controlling shareholders that could conflict with the group's business[111] Shareholder Information - The board has decided not to declare any dividends for the current period, consistent with the previous year[67] - The stock option plan allows a maximum allocation of 1% of the issued shares per participant within any 12-month period[97] - The stock option plan is effective for a period of 10 years from December 28, 2017, until December 27, 2027[98] - Participants can accept the stock option offer within 21 days from the date of the offer[99] - The exercise price for the stock options is set at HKD 0.3, with a total of 2,000,000 options granted during the period[102] - As of September 30, 2021, the directors hold a total of 800,000 shares, representing approximately 1.66% of the issued share capital[103] - No major shareholders or other individuals (excluding directors) hold any interests in the shares or related securities as of September 30, 2021[104]

Financial Performance - The company's revenue for the three months ended June 30, 2021, was HKD 18,118,000, a decrease of 5.93% compared to HKD 19,261,000 in the same period of 2020[4] - Gross profit for the same period was HKD 7,994,000, significantly up from HKD 2,330,000 in 2020, reflecting a gross margin improvement[4] - The company reported a loss before tax of HKD 3,820,000, an improvement from a loss of HKD 10,924,000 in the prior year[4] - The basic and diluted loss per share for the period was HKD 8.29, compared to HKD 47.35 in the same period last year, indicating a reduction in loss per share[4] - Total comprehensive loss attributable to owners of the company was HKD 4,454,000, compared to HKD 10,917,000 in the prior year[4] - The group's revenue decreased by approximately 5.9%, from HKD 19,300,000 in the corresponding period to HKD 18,100,000 in the current period[22] - The OEM production business revenue increased by approximately 17.7%, from HKD 9,300,000 to HKD 10,900,000, driven by new orders from new customers[22] - The original brand production business revenue decreased by approximately 27.9%, from HKD 10,000,000 to HKD 7,200,000, primarily due to reduced consumer purchasing willingness impacted by the COVID-19 pandemic[22] - The group's gross profit increased approximately 2.4 times, from HKD 2,300,000 to HKD 8,000,000, with the gross margin rising from 12.1% to 44.1%[23] - The group's pre-tax loss decreased by approximately 65.0%, from HKD 10,900,000 to HKD 3,800,000, mainly due to a significant reduction in administrative and other expenses and a substantial increase in gross profit[26] Dividends and Share Options - The company did not declare any dividends for the period, consistent with the previous year[17] - The group has decided not to declare any dividends for the current period, consistent with the previous year[27] - The total number of shares available for issuance under the share option plan is capped at 40,000,000 shares, which represents 10% of the shares issued as of January 26, 2018[38] - Each participant in the share option plan is limited to a maximum allocation of 1% of the total issued shares within any 12-month period[39] - The share option plan is effective for a period of 10 years, from December 28, 2017, to December 27, 2027[40] - A symbolic price of HKD 1 is required to accept the granted share options[44] - The exercise price for shares under the share option plan is set at a minimum of the highest of three specified prices, including the closing price on the grant date[44] - A total of 2,000,000 share options were granted to two executive directors and three employees on July 9, 2021, with an exercise price of HKD 0.3 per share[58] - As of the report date, one employee exercised 400,000 share options, with the related shares issued on July 30, 2021[58] Business Strategy and Market Conditions - The company continues to focus on the sales of baby and children's clothing, with no new product launches or market expansions reported during this period[7] - The group plans to explore various suitable investment opportunities to diversify its business and enhance overall business development, aiming for better financial returns for shareholders[32] - The group will continue to monitor the COVID-19 situation and market fluctuations, adjusting its business strategies accordingly[31] - The group is reviewing its existing asset structure and business strategies to consolidate resources and respond flexibly to future uncertainties[31] - The group has not conducted any fundraising activities during the current period[34] Corporate Governance - The audit committee currently consists of three independent non-executive directors: Mr. Hu Zijing (Chairman), Mr. Wang Rongqian, and Ms. Huang Yingyu[63] - The board of directors includes Mr. Zhang Liwei (Chairman and Acting CEO), Mr. Guan Jiawen, Ms. Wang Jiawen, and Mr. Yao Ruhuo as executive directors[64] - The company has adopted trading regulations for directors in accordance with GEM listing rules, confirming compliance during the reporting period[55] - As of June 30, 2021, the company has at least 25% of its shares held by the public, meeting GEM listing rules requirements[53] Other Information - The company’s other income decreased to HKD 1,000 from HKD 3,105,000 in the previous year, primarily due to the absence of government subsidies[12] - Financing costs decreased to HKD 201,000 from HKD 706,000, reflecting reduced interest expenses[13] - The company’s total equity as of June 30, 2021, was HKD 27,073,000, down from HKD 1,136,000 in the previous year[5] - No major acquisitions or disposals of subsidiaries or associated companies occurred during the review period[57] - The report will be published on the GEM website for at least seven days from the date of publication[64]

Financial Performance - The group's revenue for the fiscal year 2021 decreased by approximately HKD 183.4 million, or 52.4%, to about HKD 87.2 million compared to fiscal year 2020[12]. - Revenue for the year ended March 31, 2021, was HKD 87,278,000, a decrease of 52.4% from HKD 183,363,000 in 2020[193]. - Gross profit for the fiscal year 2021 was approximately HKD 39.3 million, a decrease of about HKD 27.5 million or 41.2% from fiscal year 2020[13]. - Gross profit for the same period was HKD 39,256,000, down 41.2% from HKD 66,761,000 in 2020[193]. - The company reported a net loss of approximately HKD 64,845,000 for the fiscal year ending March 31, 2021[170]. - Total annual loss was HKD 64,845,000, slightly increased from HKD 60,348,000 in 2020[193]. - The company experienced a loss of HKD 60,348,000 for the year ended March 31, 2020, which increased to HKD 64,845,000 for the year ended March 31, 2021, reflecting a worsening financial performance[196]. - The company has recognized a significant reduction in administrative expenses, which fell to HKD 32,214,000 from HKD 54,391,000 in 2020, a decrease of 40.8%[193]. - The company reported a decrease in cash and cash equivalents from HKD 4,494,000 at the beginning of the year to HKD 3,417,000 at the end of the year, indicating a reduction in liquidity[199]. Operational Challenges - The fiscal year 2021 was challenging due to social unrest in Hong Kong and the impact of COVID-19 on global production and retail, affecting both OEM and private label businesses[8]. - Revenue from OEM production continued to decline in fiscal year 2021, primarily due to the threats posed by COVID-19[11]. - Revenue from private label production also decreased in Hong Kong and China since the onset of the pandemic[11]. - The company acknowledges the ongoing impact of social unrest and the pandemic on its operations and is preparing to navigate these challenges[8]. - The outlook for the next fiscal year remains challenging due to ongoing impacts from the COVID-19 pandemic and geopolitical tensions[19]. Strategic Initiatives - The company plans to reduce costs by streamlining operations and collaborating with other manufacturers in the Asia-Pacific region to adjust production[9]. - The company aims to expand its online business significantly, investing in e-commerce platforms and partnerships with online retailers due to a shift in consumer shopping behavior from offline to online[9]. - The company will reduce physical retail stores in Hong Kong while expanding its online presence[9]. - The company is focusing on opportunities to create long-term value for shareholders despite various uncertainties and challenges faced during the year[9]. - Future plans include improving operational efficiency and implementing cost control measures to enhance core competitiveness[40]. Governance and Compliance - The company emphasizes good corporate governance to enhance shareholder value and ensure effective accountability[50]. - The company has complied with the GEM Listing Rules and corporate governance code, with regular reviews to ensure adherence[51]. - The company faced challenges in maintaining the minimum number of independent non-executive directors as per GEM Listing Rules after resignations in 2021[53]. - The company appointed Ms. Huang and Mr. Hu as independent non-executive directors on June 28, 2021, to meet compliance requirements[53]. - The company has established various committees, including the remuneration committee and audit committee, to enhance governance practices[48]. Risk Management - The company is primarily exposed to foreign exchange risk related to transactions in HKD, USD, and RMB, with potential losses of approximately HKD 0.7 million and HKD 1.5 million under a 5% fluctuation in RMB against HKD for fiscal years 2021 and 2020, respectively[36]. - The board is responsible for overseeing risk management and internal control systems, which are designed to minimize risks associated with business operations[92]. - The company has established policies and procedures for risk management and internal control, which are regularly monitored and assessed for effectiveness[92]. Shareholder Communication - The company is committed to effective communication with shareholders and has reminded directors to attend shareholder meetings[52]. - The company has adopted a dividend policy to allow shareholders to share in profits while retaining sufficient funds for future growth[102]. - The board will consider various factors, including the group's financial performance and capital expenditure needs, when deciding on dividend distribution[103]. Financial Position - Current liabilities exceeded total assets by approximately HKD 19,515,000 as of March 31, 2021[170]. - The company's equity attributable to owners was negative HKD 22,619,000, down from positive HKD 9,781,000 in 2020, indicating a decline in financial health[195]. - The group’s total liabilities increased significantly, leading to a total equity deficit of HKD 129,119,000 as of March 31, 2021[196]. - The group recorded an inventory write-down of HKD 23.5 million for the fiscal year 2021, compared to HKD 9.5 million in fiscal year 2020[14]. Management and Personnel - The company employed approximately 63 employees as of March 31, 2021, a significant decrease from 674 employees in 2020[41]. - The employer's contribution to the mandatory provident fund for the fiscal year 2021 was HKD 1.8 million, down from HKD 4.3 million in the previous fiscal year[42]. - The company has appointed Mr. Guan as the executive director since May 8, 2020, and he has over 15 years of experience in accounting and auditing[46]. - Ms. Wang has been serving as the executive director since March 17, 2021, and has been the operations manager of a listed company since May 2016[46]. Asset Management - The company sold a land parcel for RMB 11,000,000 (approximately HKD 12,287,000) on November 2020, as part of its asset management strategy[32]. - The group recorded right-of-use assets amounting to approximately HKD 6,762,000 for office spaces, warehouses, and retail stores as of March 31, 2021[177]. - The management conducted impairment assessments on all right-of-use assets in Hong Kong due to adverse impacts from the Covid-19 pandemic, deciding not to recognize any impairment losses in the current year's financial statements[180].