Financial Performance - The company's revenue for the three months ended December 31, 2020, was HKD 21,961,000, a decrease of 64.5% compared to HKD 61,893,000 in the same period of 2019[5] - For the nine months ended December 31, 2020, the revenue was HKD 66,308,000, down 58.5% from HKD 159,479,000 in the previous year[5] - Gross profit for the three months ended December 31, 2020, was HKD 4,454,000, a decline of 83.6% from HKD 27,118,000 in 2019[5] - The company reported a loss before tax of HKD 934,000 for the three months ended December 31, 2020, compared to a profit of HKD 2,619,000 in the same period of 2019[5] - The net loss for the nine months ended December 31, 2020, was HKD 20,171,000, compared to a loss of HKD 9,208,000 in the previous year[5] - The total comprehensive loss attributable to owners of the company for the nine months ended December 31, 2020, was HKD 22,510,000[5] - The basic and diluted loss per share for the nine months ended December 31, 2020, was HKD 3.42, compared to HKD 2.30 in the same period of 2019[5] Revenue Breakdown - The company’s revenue from original equipment manufacturing (OEM) for the three months ended December 31, 2020, was HKD 9,934,000, a decrease of 75.1% from HKD 39,786,000 in 2019[12] - The company's revenue decreased by approximately 58.4%, from HKD 159.5 million in the corresponding period in 2019 to HKD 66.3 million in the current period[24] - The OEM production business revenue fell by about 66.6%, from HKD 107 million to HKD 36 million, primarily due to the loss of a major customer[24] - The original brand production business revenue decreased by approximately 41.4%, from HKD 51.7 million to HKD 30.3 million, impacted by the COVID-19 pandemic[24] Cost and Profitability - Gross profit decreased by approximately 82.4%, from HKD 66.3 million to HKD 11.6 million, with a gross margin dropping from 41.6% to 17.6%[25] - The company's pre-tax loss increased by approximately 119%, from HKD 9.2 million to HKD 20.1 million, mainly due to reduced revenue from the OEM production business[28] - The sales and distribution costs decreased by approximately 33%, from HKD 24.3 million to HKD 16.3 million, aligning with the revenue decline[27] Cash Flow and Financial Management - The company is actively managing cash flow, emphasizing the importance of cash management during the crisis[32] - The company is considering measures to reduce inventory to increase cash holdings during the current challenging business conditions[32] - The company reported no dividends for the current period, consistent with the previous year[29] Corporate Governance - The company has adhered to the corporate governance code, with regular reviews to ensure compliance[39] - The board will regularly review the need to appoint different individuals to the roles of chairman and CEO to maintain good corporate governance[41] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated results for the period and confirmed compliance with applicable accounting standards and GEM listing rules[52] Share Issuance and Fundraising - A total of 460,000,000 new shares were issued at a price of HKD 0.08 per share, raising approximately HKD 35,200,000, with 48% allocated for general operating expenses[33] - The company received shareholder approval to grant directors a general mandate to issue up to 92,295,200 new shares, representing 20% of the total issued shares as of the annual general meeting date[48] - The existing general mandate has not been utilized since its grant, allowing the company to issue up to 92,295,200 shares, which is approximately 10% of the expanded total issued shares post-placement[48] - The company plans to seek approval for a new general mandate to issue up to 184,295,200 new shares, not exceeding 20% of the total issued shares at the special general meeting[49] - The company has not conducted any fundraising activities other than those disclosed[34] Subsidiary Transactions - The company completed the sale of its subsidiary for a cash consideration of approximately HKD 12.29 million[20] - The company completed the sale of 100% equity in a subsidiary for a total consideration of approximately HKD 11,933,900, with the first tranche sold for HKD 596,695 and the second tranche for HKD 11,337,205[47] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the period, aside from the disclosed transactions[47] Management Changes - The company appointed Mr. Wang Rongqian as an independent non-executive director and chairman of the remuneration committee on January 25, 2021[53] - Mr. Cai Yongxin resigned as an independent non-executive director and chairman of the remuneration committee on January 25, 2021[53] Future Outlook - The company anticipates continued pressure on OEM production performance in the next fiscal year due to ongoing challenges from the COVID-19 pandemic and geopolitical tensions[30] - The company will continue to monitor the pandemic's developments and market fluctuations, which may negatively impact its financial condition and performance[30]

Financial Performance - The company reported revenue of HKD 44,347,000 for the six months ended September 30, 2020, a decrease of 54.5% compared to HKD 97,586,000 in the same period of 2019[7]. - Gross profit for the same period was HKD 7,184,000, down 81.7% from HKD 39,168,000 year-on-year[7]. - The company incurred a loss before tax of HKD 19,220,000, compared to a loss of HKD 11,771,000 in the previous year, representing a 63.5% increase in losses[7]. - The net loss for the period was HKD 19,233,000, compared to a net loss of HKD 11,890,000 in 2019, indicating a 62.1% increase in net losses[7]. - The company reported a basic and diluted loss per share of HKD 4.17, compared to HKD 2.97 in the same period last year[7]. - The group reported external sales of HKD 44,347,000 for the six months ended September 30, 2020, a decrease of 54.5% compared to HKD 97,586,000 for the same period in 2019[24]. - The group incurred a pre-tax loss of HKD 19,233,000 for the six months ended September 30, 2020, compared to a pre-tax loss of HKD 11,771,000 for the same period in 2019[24]. - The group’s manufacturing segment reported external sales of HKD 26,101,000, down 61.6% from HKD 68,021,000 in the previous year[24]. - The group’s original brand manufacturing segment generated external sales of HKD 18,246,000, a decline of 38.4% from HKD 29,565,000 in the prior year[24]. - The gross profit decreased by approximately 81.7%, from about HKD 39,168,000 to about HKD 7,184,000, leading to a gross margin drop from about 40% to about 16%[63]. - The pre-tax loss increased by approximately 63.3%, from about HKD 11,771,000 to about HKD 19,220,000, primarily due to decreased revenue from OEM production[66]. Assets and Liabilities - Total assets decreased to HKD 74,037,000 as of September 30, 2020, down from HKD 123,819,000 as of March 31, 2020[8]. - Current liabilities amounted to HKD 84,891,000, a decrease from HKD 106,298,000 in the previous period[8]. - Non-current assets decreased significantly from HKD 22,284,000 to HKD 9,737,000, reflecting a reduction in property, plant, and equipment[8]. - The company has a negative equity of HKD 8,353,000 as of September 30, 2020, compared to positive equity of HKD 9,781,000 as of March 31, 2020[9]. - Total equity attributable to owners decreased to HKD (8,353,000) as of September 30, 2020, from HKD 9,781,000 at the beginning of the period[11]. - The company’s cash and cash equivalents decreased to HKD 4,190,000 at the end of the period, down from HKD 4,494,000 at the beginning[12]. - The company’s net current assets were approximately HKD 10,087,000 as of September 30, 2020[14]. - The company reported other borrowings of HKD 26,720,000 as of September 30, 2020, significantly up from HKD 4,783,000 as of March 31, 2020[49]. - The total liabilities for lease payments as of September 30, 2020, were HKD 18,397,000, down from HKD 26,941,000 as of March 31, 2020[51]. - The company’s bank borrowings decreased from HKD 59,851,000 as of March 31, 2020, to HKD 1,996,000 as of September 30, 2020[50]. Cash Flow and Financing - Cash generated from operating activities increased to HKD 6,041,000, up from HKD 5,247,000 year-on-year[12]. - The company completed a placement of 460,000,000 ordinary shares, raising approximately HKD 35,200,000 in net proceeds[16]. - The company completed a placement of 460,000,000 new ordinary shares at a price of HKD 0.08 per share, raising a total of HKD 36,800,000[79]. - The net proceeds from the placement, after deducting commissions and expenses, were approximately HKD 35,200,000, with HKD 17,000,000 allocated for general working capital and HKD 18,200,000 for debt repayment[79]. - The company’s management compensation for the period was approximately HKD 875,000, down from HKD 3,031,000 for the same period in 2019[54]. - The total employee cost for the period was approximately HKD 22,840,000, a decrease from HKD 39,800,000 in the previous year[82]. Operational Strategies - The company is focusing on cost reduction strategies, with administrative and other expenses reduced to HKD 18,015,000 from HKD 32,600,000 year-on-year, a decrease of 44.9%[7]. - The company plans to manage cash flow by reducing inventory and increasing outsourcing of production processes to minimize fixed costs[70]. - The company anticipates continued pressure on OEM production performance in the next fiscal year due to ongoing challenges from the COVID-19 pandemic and geopolitical tensions[68]. - The company anticipates ongoing impacts from the COVID-19 pandemic on its original brand production business[78]. Corporate Governance - The company appointed Mr. Zhang as the Chairman and Acting CEO on May 21, 2020, who has been with the group since October 2008, overseeing financial, human resources, and brand production matters[89]. - The Audit Committee, composed of three independent non-executive directors, has reviewed the unaudited consolidated results for the period and confirmed compliance with applicable accounting standards and GEM listing rules[99]. - The company will regularly review the need to appoint different individuals for the roles of Chairman and CEO to maintain good corporate governance[89]. - The company secretary has reminded directors to attend shareholder meetings to establish effective communication with shareholders[91]. - There were no reported conflicts of interest involving directors or controlling shareholders in relation to the group's business during the reporting period[94]. - The Audit Committee has the responsibility to recommend the appointment, reappointment, and removal of external auditors, as well as to review financial statements[99]. - The company has adopted GEM Listing Rules as the code of conduct for directors' securities transactions, confirming compliance during the reporting period[92]. - The company appointed Zhongtian Yunhao Qincheng CPA as the new auditor effective September 30, 2020, following the resignation of the previous auditor on July 30, 2020[96]. Compliance and Reporting - The company has not applied any new standards or interpretations that are not yet effective during the accounting period[18]. - The company’s financial performance and position have not been significantly impacted by the recent amendments to accounting standards applied during the period[17]. - The company will continue to publish reports on its website and the GEM website for at least seven days from the report date[100]. - The company did not repurchase any of its listed securities during the period, nor did it or any of its subsidiaries purchase or sell such securities[95]. - The company had no significant capital commitments or contingent liabilities as of September 30, 2020[73][77]. - The company has no major acquisitions or disposals planned for the future as of September 30, 2020[75]. - The company has not granted any stock options since the adoption of its stock option plan, and there are no unexercised options as of September 30, 2020[83]. - The group reported a total of HKD 3,105,000 in other income for the six months ended September 30, 2020, compared to HKD 684,000 in the previous year[28]. - The group’s bank interest income decreased to HKD 4,000 for the six months ended September 30, 2020, from HKD 63,000 in the same period of 2019[28]. - The group’s financing costs decreased to HKD 1,492,000 for the six months ended September 30, 2020, down from HKD 3,580,000 in the same period of 2019[30]. - The group did not declare any dividends for the period, consistent with the previous year[33].

Financial Performance - For the three months ended June 30, 2020, the company's revenue was HKD 19,261,000, a decrease of 68.1% compared to HKD 60,191,000 in the same period of 2019[3] - The gross profit for the same period was HKD 2,330,000, down 89.5% from HKD 22,222,000 year-on-year[3] - The company reported a loss before tax of HKD 10,924,000, compared to a loss of HKD 5,279,000 in the previous year, representing a 106.1% increase in losses[3] - The total comprehensive loss attributable to owners of the company for the period was HKD 10,917,000, compared to HKD 6,018,000 in the same period last year, indicating a 81.5% increase in comprehensive losses[4] - Basic and diluted loss per share for the period was HKD 2.37, compared to HKD 1.35 in the previous year, reflecting a 75.6% increase in loss per share[3] Equity and Financial Position - The company’s total equity as of June 30, 2020, was HKD (1,136,000), a decrease from HKD 58,962,000 as of June 30, 2019[4] - Financing costs decreased by approximately 60% to about HKD 0.7 million from approximately HKD 1.7 million in 2019, primarily due to repayment of bank loans[24] - The outstanding debts include approximately HKD 10.2 million for trade payables and about HKD 8 million for recurring expenses[39] Revenue Segmentation - The company operates in two main segments: Original Equipment Manufacturing (OEM) and Original Brand Manufacturing (OBM)[11] - The OEM production revenue fell by approximately 78.9% to about HKD 9.3 million, down from approximately HKD 43.9 million in 2019[21] - The original brand production revenue decreased by approximately 38.6% to about HKD 9.9 million, compared to approximately HKD 16.3 million in 2019[21] Cost Management and Subsidies - The company implemented cost control measures, resulting in a reduction of administrative expenses by approximately 37.9% to about HKD 11 million from approximately HKD 17.7 million in 2019[23] - Government subsidies received amounted to HKD 1.8 million, with no subsidies reported in the same period of 2019[16] Market Conditions and Risks - The company has faced significant market volatility risks due to its positioning in the GEM market, which is primarily for small and medium-sized enterprises[2] - The export value of OEM products to the UK and US markets is expected to continue declining in the next fiscal quarter due to the severe situation of COVID-19[28] - The sales of original brand products in April 2020 continued to decline, significantly impacted by the pandemic and related measures, leading to a challenging business environment in the short term[28] - The potential impact of COVID-19 on the global economy remains significant and uncertain, with concerns about its effects on corporate earnings and the global economic outlook[28] Corporate Governance and Compliance - The financial statements were prepared in accordance with applicable Hong Kong Financial Reporting Standards, ensuring compliance with GEM listing rules[8] - The company has complied with the corporate governance code as per GEM listing rules during the reporting period[34] Future Plans and Restructuring - The company plans to restructure its assets and establish a wholly-owned subsidiary, transferring its factory and land to the new entity, with a total transaction value of RMB 11,000,000 (approximately HKD 11,933,900)[38] - The company has entered into a placement agreement to issue up to 460,000,000 shares at a price of HKD 0.08 per share, potentially raising a total of HKD 36,800,000[39] - After deducting placement commissions and other expenses, the estimated net proceeds from the placement will be approximately HKD 35,200,000, with HKD 17,000,000 allocated for general working capital and HKD 18,200,000 for repaying outstanding debts[39] Shareholder Information - As of June 30, 2020, a major shareholder, Joyful Cat, holds 300,000,000 shares, representing 65.01% of the issued shares[30] Securities Transactions - No securities were redeemed by the company during the reporting period, nor were there any purchases or sales of listed securities by the company or its subsidiaries[37]

Financial Performance - For the fiscal year ending March 31, 2020, the company's revenue decreased by approximately 19.6% to about HKD 185.7 million from approximately HKD 230.8 million in the previous fiscal year[12]. - The OEM production business revenue fell by approximately 25.5% to about HKD 120.2 million, down from approximately HKD 161.3 million in the previous fiscal year[12]. - The original brand production business revenue decreased by approximately 5.9% to about HKD 65.5 million, compared to approximately HKD 69.5 million in the previous fiscal year[12]. - Gross profit for the fiscal year 2020 was approximately HKD 69.1 million, a decrease of about HKD 23.0 million or 25.0% from HKD 92.1 million in 2019, resulting in a gross margin decline from 39.9% to 37.2%[13]. - The group recorded a pre-tax loss of approximately HKD 59.2 million in fiscal year 2020, worsening by about HKD 40.3 million from a loss of HKD 18.9 million in 2019, attributed to decreased revenue and inventory write-downs[19]. - Financing costs increased by approximately 71.3% or HKD 2.6 million to about HKD 6.1 million in fiscal year 2020, compared to HKD 3.6 million in 2019[18]. - The group’s cost of sales decreased by approximately HKD 138.7 million, or 15.9%, to about HKD 116.6 million in the fiscal year 2020 compared to 2019[13]. - Inventory write-downs amounted to HKD 9.5 million in fiscal year 2020, compared to HKD 1.3 million in 2019, due to provisions for obsolete and slow-moving inventory[14]. Challenges and Strategic Responses - The company faced significant challenges due to the ongoing US-China trade war, Brexit uncertainties, and the impact of COVID-19 on global supply chains and demand[7]. - The ongoing global economic uncertainty is expected to continue affecting production, demand, and retail operations in the foreseeable future[8]. - The company plans to reduce physical retail stores in Hong Kong and expand its online business in response to changing consumer behavior[8]. - Cost reduction measures will be implemented, including streamlining operations and reducing fixed costs through effective utilization of production facilities[8]. - The company aims to expand its business into children's and youth clothing while continuing to collaborate with developed clients[8]. - The company has gathered valuable data from its operations in China to mitigate the impacts of social unrest in Hong Kong[8]. - The outlook for the next fiscal year remains challenging due to the ongoing impact of the COVID-19 pandemic and geopolitical tensions affecting the global economy[20]. Corporate Governance - The company is committed to good corporate governance to enhance shareholder value and accountability[49]. - The executive team includes members with extensive backgrounds in finance, accounting, and risk management, ensuring robust oversight[43][47]. - The board comprises independent non-executive directors who provide independent judgment and oversight[45][46][47]. - The company has implemented strategies to mitigate liquidity risks and improve cash flow management[42]. - The board is responsible for overseeing the management and overall performance of the group, ensuring necessary financial and human resources are in place[52]. - The company encourages all directors to participate in relevant training courses, with costs covered by the company[62]. - The company has received written confirmations of independence from all current independent non-executive directors, affirming their compliance with GEM Listing Rules[57]. - The board is scheduled to hold four meetings annually, approximately once per quarter, with agendas and documents provided in advance[63]. - The company regularly reviews its corporate governance practices to ensure compliance with applicable codes[50]. - The independent non-executive directors contribute extensive operational and financial expertise to the board[57]. - The company has appointed new independent non-executive directors to meet GEM Listing Rules requirements following previous resignations[56]. - The board of directors held meetings in the 2020 fiscal year, with attendance rates for various committees being 100% for executive directors and independent non-executive directors[65]. - The audit committee held four meetings during the fiscal year to review the audited annual results for the fiscal year 2019 and the unaudited quarterly results[78]. - The company has adopted a board diversity policy, emphasizing the importance of diverse perspectives in board appointments, including gender, age, and professional experience[70]. - The chairman and CEO roles are separated, with Mr. Zhang appointed as chairman on May 21, 2020, ensuring effective management and business development[71]. - The audit committee consists of three independent non-executive directors, with Mr. Chan serving as the chairman, ensuring oversight of financial reporting and compliance[75]. - The company is committed to maintaining good corporate governance and regularly reviews the need for separate individuals to fulfill the roles of chairman and CEO[71]. - The audit committee is responsible for monitoring the integrity of financial statements and ensuring the independence of external auditors[76]. - The company emphasizes the importance of risk management and internal control systems, with discussions held with management on these matters[76]. - The board has established three committees: audit, remuneration, and nomination, each with clear written terms of reference[72]. - The company is dedicated to ensuring compliance with corporate governance codes and regularly reviews its governance practices[73]. Shareholder and Financial Information - The company has adopted a dividend policy to allow shareholders to share in the company's profits while retaining sufficient funds for future growth[109]. - When determining dividend recommendations, the board considers factors such as retained earnings, capital expenditure needs, and overall economic conditions[114]. - The board decided not to recommend any dividend payment for the fiscal year 2020[120]. - The company has maintained a sufficient public float of at least 25% of issued shares, in compliance with GEM listing rules[130]. - The total number of issued shares as of March 31, 2020, is 461,476,000[159]. - As of March 31, 2020, the controlling shareholder, Joyful Cat, holds 300,000,000 shares, representing approximately 65.01% of the issued shares[158]. - The company had no redeemable securities during the fiscal year 2020, nor did it purchase or sell any listed securities[128]. - The company has not entered into any significant management contracts during the fiscal year 2020, aside from employment contracts for executive directors[153]. - The independent auditor has stated that there are no significant uncertainties that may cast doubt on the company's ability to continue as a going concern[95]. Environmental and Social Responsibility - The report period for the environmental, social, and governance report covers from April 1, 2019, to March 31, 2020[189]. - Total electricity consumption during the reporting period was 1,544,610 kWh, a decrease of approximately 15% compared to the previous year[197]. - The company implements a 4R strategy focusing on "Replace, Reduce, Reuse, and Recycle" to minimize resource consumption[196]. - The company adheres to various Chinese environmental protection laws, including the Environmental Protection Law and the Water Pollution Prevention Law[196]. - The company actively promotes energy-saving measures and raises employee awareness through internal communications and notices[197]. - The company recognizes the significant environmental impact of its operations and manages its water and electricity consumption accordingly[196]. - The company collaborates with supply chain partners to avoid waste and reduce overall resource usage[196]. - The company has established an internal environmental awareness program to encourage employees and customers to improve environmental performance[197]. - The company’s production operations do not significantly contribute to air, water, or land pollution as per Hong Kong and Chinese regulations[197]. - The company’s management views environmental protection as a key business focus and has developed internal policies to reduce environmental impact[195].

Financial Performance - The company's revenue for the three months ended December 31, 2019, was HKD 61,893,000, a decrease of 18.4% compared to HKD 75,837,000 in the same period of 2018[3] - For the nine months ended December 31, 2019, the revenue was HKD 159,479,000, down 13.7% from HKD 184,685,000 in the previous year[3] - Gross profit for the three months was HKD 27,118,000, representing a gross margin of 43.8%, compared to HKD 31,625,000 and a margin of 41.7% in 2018[3] - The company reported a loss before tax of HKD 9,152,000 for the nine months, compared to a loss of HKD 8,032,000 in the same period last year[3] - The net loss for the nine months was HKD 9,208,000, compared to a loss of HKD 8,214,000 in the previous year[3] - Basic and diluted loss per share for the nine months was HKD 2.30, compared to HKD 2.05 in the same period of 2018[3] - Revenue decreased by approximately 13.6%, from HKD 184.7 million in the corresponding period of 2018 to HKD 159.5 million in 2019[21] - Gross profit decreased by approximately 13.8%, from HKD 76.9 million to HKD 66.3 million, with a stable gross margin of approximately 41.6%[22] - Pre-tax loss increased by approximately 13.9%, from HKD 8.0 million to HKD 9.2 million, mainly due to decreased OEM production revenue[24] Revenue Breakdown - The company generated HKD 39,786,000 from original equipment manufacturing for the three months, down 26.5% from HKD 54,178,000 in 2018[10] - Original brand manufacturing revenue was HKD 22,107,000 for the three months, a slight increase from HKD 21,659,000 in the same period last year[10] - OEM production revenue decreased by approximately 19.9%, from HKD 134.5 million to HKD 107.8 million, primarily due to the loss of a major customer[21] - Original brand production revenue increased by approximately 3.0%, from HKD 50.2 million to HKD 51.7 million, driven by new stores in China and wholesale to online stores[21] Equity and Compliance - Total equity as of December 31, 2019, was HKD 54,799,000, down from HKD 74,889,000 at the end of 2018[4] - The company confirmed compliance with the corporate governance code as per GEM Listing Rules during the reporting period[33] - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements and confirmed compliance with applicable accounting standards[41] - The company has established a compliance advisory agreement with its compliance advisor, confirming no interests held by the advisor in the company[38] Management and Governance - The company appointed Mr. Qian Weiqiang as an executive director on November 9, 2019, and Ms. He Laiying resigned as an executive director effective January 1, 2020[40] - As of December 31, 2019, the company had no stock options granted under its stock option plan, and no options were exercised, cancelled, or lapsed during the period[27] - On December 31, 2019, Ms. Lu held 300,000,000 shares, representing approximately 75% of the issued share capital of 400,000,000 shares[29] - Joyful Cat, a direct shareholder, also held 300,000,000 shares, accounting for 75% of the issued share capital[31] - The company has not disclosed any interests or positions held by directors or major shareholders that could compete with the group's business[35] Future Outlook and Strategy - The company plans to expand its product range from baby clothing to children's and youth clothing to increase sales[26] - The company opened 10 retail stores in China since September 2018 and expects to open more stores and sell consignment goods to expand market share[26] - The company anticipates a sharp decline in original brand production sales in Q4 2020 due to the impact of the COVID-19 pandemic[26] - The company will take measures to mitigate business risks arising from the coronavirus and closely monitor the situation in China[26] Other Information - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the period[39] - No repurchase of listed securities occurred during the period[36] - The company reported a foreign exchange loss of HKD 973,000 for the nine months, compared to a loss of HKD 2,892,000 in the previous year[4] - Administrative and other expenses decreased by approximately 18.6%, from HKD 57.5 million to HKD 46.8 million, due to cost control measures[23]

Financial Performance - The company's revenue for the six months ended September 30, 2019, was HKD 97,586,000, a decrease of 10.4% compared to HKD 108,847,000 in the same period of 2018[8] - Gross profit for the same period was HKD 39,168,000, down 13.5% from HKD 45,309,000 year-on-year[8] - The company reported a loss before tax of HKD 11,771,000, compared to a loss of HKD 9,719,000 in the previous year, indicating a deterioration in performance[8] - The net loss for the period was HKD 11,890,000, compared to a net loss of HKD 9,546,000 in the same period last year[8] - Basic and diluted loss per share was HKD 2.97, compared to HKD 2.39 in the previous year, reflecting increased losses[8] - The pre-tax loss for the group was HKD 11,771,000, compared to a pre-tax loss of HKD 9,719,000 for the same period in 2018, indicating a deterioration in financial performance[39] - The gross profit decreased by approximately 13.6%, from about HKD 45.3 million to about HKD 39.2 million, leading to a gross margin decline from approximately 41.6% to 40.1%[78] - The pre-tax loss increased by approximately 21.1%, from about HKD 9.7 million to about HKD 11.8 million, mainly due to reduced revenue from OEM production[81] Assets and Liabilities - Total assets as of September 30, 2019, were HKD 127,785,000, a decrease from HKD 140,160,000 as of March 31, 2019[10] - The company's net current assets decreased to HKD 5,424,000 from HKD 12,012,000, indicating a decline in liquidity[10] - Non-current liabilities increased significantly to HKD 34,477,000 from HKD 686,000, primarily due to new borrowings[11] - The company's equity attributable to owners decreased to HKD 51,796,000 from HKD 64,980,000, reflecting a decline in shareholder value[11] - The company's total equity decreased to HKD 51,796,000 as of September 30, 2019, down from HKD 64,980,000 as of April 1, 2019[19] - The company reported bank borrowings of HKD 68,106,000 as of September 30, 2019, slightly decreased from HKD 69,560,000 as of March 31, 2019[68] - Lease liabilities amounted to HKD 28,834,000 as of September 30, 2019, with HKD 14,909,000 due within one year[69] Cash Flow and Financing - Cash generated from operating activities was HKD 5,247,000, a significant improvement from cash used of HKD 13,011,000 in the previous year[15] - The net cash and cash equivalents at the end of the period were HKD 4,471,000, a decrease from HKD 12,956,000 at the beginning of the period[15] - The company received a loan of HKD 5,000,000 from a director during the financing activities[15] - The company's total liabilities included a repayment of bank loans amounting to HKD 66,919,000 during the financing activities[15] - The group had cash and bank balances of approximately HKD 4.5 million, down from HKD 7.5 million as of March 31, 2019[86] Segment Performance - The external sales for the OEM production segment were HKD 68,021,000, while the own brand production segment generated HKD 29,565,000[39] - The segment performance for OEM production showed a profit of HKD 7,703,000, whereas the own brand production segment reported a loss of HKD 673,000, resulting in a total segment performance of HKD 7,030,000[39] - OEM production revenue fell by approximately 15.3%, from about HKD 80.3 million to about HKD 68.0 million, primarily due to the loss of a major customer[77] Market Conditions - The company faced uncertainties in order placements due to the ongoing US-China trade war and Brexit arrangements affecting its US and UK clients[76] - The local retail market is experiencing a downturn, influenced by geopolitical tensions in Europe, the US, and China[76] Corporate Governance - The company has complied with the corporate governance code as per GEM listing rules during the reporting period[104] - The audit committee, consisting of three independent non-executive directors, has reviewed the financial statements and confirmed compliance with applicable accounting standards[112] - The company has not disclosed any non-compliance incidents during the reporting period[105] Employee and Management - The total employee cost for the period was approximately HKD 39.8 million, with the group employing about 736 employees as of September 30, 2019[96] - The total remuneration for key management personnel was approximately HKD 3,031,000 for the six months ended September 30, 2019, compared to HKD 3,447,000 for the same period in 2018[72] Future Plans - The group plans to expand its product range from baby clothing to children's and youth clothing to increase sales[83] - The group opened 10 retail stores in China through a partnership with Kidswant since September 2018 and expects to open more stores in the future[83]

Financial Performance - The company's revenue for the three months ended June 30, 2019, was HKD 60,191,000, a decrease of 6% compared to HKD 64,048,000 in the same period of 2018[5] - Gross profit for the same period was HKD 22,222,000, down 18% from HKD 27,143,000 year-on-year[5] - The company reported a loss before tax of HKD 5,279,000, compared to a profit of HKD 362,000 in the previous year[5] - The net loss for the period was HKD 5,384,000, compared to a profit of HKD 276,000 in the same quarter of 2018[5] - Basic and diluted loss per share was HKD 1.35, compared to earnings of HKD 0.07 per share in the prior year[5] - The company experienced a foreign exchange loss of HKD 634,000 from the translation of overseas financial statements, compared to a gain of HKD 1,714,000 in the previous year[5] - Total comprehensive loss attributable to owners of the company was HKD 6,018,000, compared to a total comprehensive income of HKD 1,990,000 in the same period last year[5] Equity and Accounting Standards - The company’s total equity as of June 30, 2019, was HKD 58,962,000, down from HKD 84,557,000 at the end of the previous fiscal year[6] - The company has adopted new accounting standards effective from April 1, 2019, which may impact future financial reporting[9] Business Segments and Revenue Breakdown - The company operates in two main segments: original equipment manufacturing and original brand production, focusing on children's clothing sales[11] - The OEM production revenue decreased by approximately 10.7% to about HKD 43.9 million, primarily due to the loss of a major customer in the previous year[22] - The original brand production revenue increased by approximately 9.4% to about HKD 16.3 million, driven by an increase in the number of self-operated stores in Hong Kong and new retail stores in mainland China[22] - The gross profit for the period decreased by approximately 18.1% to about HKD 22.2 million, with a gross margin decline from approximately 42.4% to about 36.9%[23] - The company recorded a loss before tax of approximately HKD 5.3 million, compared to a profit of approximately HKD 0.4 million for the same period last year[26] Future Plans and Market Strategy - The company plans to expand its product range from infant clothing to children's and youth clothing to increase sales in the future[29] - The company has opened ten retail stores in mainland China since September 2018 and expects to continue expanding its store network[29] - The company will focus on identifying new customers in Europe and China to mitigate risks from the US-China trade war[29] Corporate Governance and Compliance - The board has decided not to declare any dividends for the period[27] - The company has complied with the corporate governance code as per GEM Listing Rules throughout the reporting period[35] - The audit committee, consisting of three independent non-executive directors, has reviewed the financial statements and confirmed compliance with applicable accounting standards[43] - The company has maintained a consistent governance structure and practices to ensure compliance with regulatory requirements[35] Shareholder Information and Transactions - As of June 30, 2019, the company had a total of 400,000,000 shares issued, with Joyful Cat holding 300,000,000 shares, representing 75% ownership[31] - There were no significant acquisitions or disposals related to subsidiaries or joint ventures during the reporting period[41] - No major investments or capital asset plans are in place as of June 30, 2019[41] - The company has not repurchased any of its listed securities during the reporting period[39] - There are no known conflicts of interest involving directors or controlling shareholders in relation to the company's business[38] - The company has adopted trading standards for directors' securities transactions and confirmed compliance during the reporting period[37] - The company has not disclosed any other interests or holdings by directors or major executives in the company's shares or related securities[32]

Financial Performance - For the fiscal year ending March 31, 2019, the company's revenue decreased by approximately 13.2% from about HKD 265.8 million in the previous fiscal year to about HKD 230.8 million[12]. - The revenue from the OEM production segment fell by about 11.0% to approximately HKD 161.3 million, down from about HKD 181.2 million in the previous fiscal year[12]. - The revenue from the original brand production segment decreased by approximately 17.8% to about HKD 69.5 million, down from about HKD 84.6 million in the previous fiscal year[12]. - The company's gross profit declined by approximately 29.3% to about HKD 92.1 million, compared to HKD 121.4 million in the previous fiscal year[13]. - The gross profit margin decreased from approximately 45.7% in the previous fiscal year to about 39.9% in the current fiscal year[13]. - The group recorded a pre-tax loss of approximately HKD 18.9 million in the fiscal year 2019, worsening by about HKD 17.6 million compared to a loss of HKD 1.3 million in 2018[15]. Market Expansion and Strategy - The company is expanding its product range from infant clothing to children's and youth clothing to capture more sales[9]. - A strategic partnership was established with Kidswant Children's Products Co., Ltd. in China, leading to the opening of ten retail stores for the company's brand Mides[9]. - The company is actively seeking more partners in the Chinese market to enhance sales revenue and reduce manufacturing costs[9]. - The sales team is working to diversify the customer base by acquiring new clients, with expectations for more stable orders in the coming year[11]. - The group plans to expand its product range from baby clothing to children's and youth clothing to increase sales in the future[17]. - The group opened ten retail stores in China through the Kid King channel in the fiscal year 2019 and expects to add another ten stores in the coming years to increase market share[17]. Financial Position and Liquidity - As of March 31, 2019, the group had cash and bank balances of approximately HKD 7.5 million, down from HKD 21.8 million on March 31, 2018[19]. - The group's interest-bearing bank borrowings were approximately HKD 69.6 million as of March 31, 2019, compared to HKD 50.2 million on March 31, 2018[19]. - The current ratio was 1.1 as of March 31, 2019, down from 1.4 on March 31, 2018, while the debt-to-equity ratio was approximately 130.2% compared to 58.5% in the previous year[19]. - The net proceeds from the share offering amounted to approximately HKD 44.0 million, with HKD 22.2 million utilized by March 31, 2019[26]. Corporate Governance - The company is committed to fulfilling its responsibilities to shareholders and enhancing shareholder value through good corporate governance practices[40]. - The company has adhered to the corporate governance code as per GEM Listing Rules Appendix 15 throughout the fiscal year ending March 31, 2019[41]. - All directors confirmed compliance with the trading regulations set forth in GEM Listing Rules during the fiscal year[42]. - The board consists of six directors, with independent non-executive directors making up 50% of the board[47]. - The company held a total of 3 board meetings, with attendance rates for executive directors ranging from 3/3 to 5/5[55]. - The company has established appropriate insurance arrangements for legal liabilities faced by directors[50]. - All independent non-executive directors have confirmed their independence in accordance with GEM listing rules[48]. - The company encourages directors to participate in training courses, with all directors having attended professional development sessions[52]. - The board is responsible for overseeing the management of the group's business and overall performance[43]. - The company has a structured onboarding process for new directors to ensure they understand their responsibilities[52]. Risk Management and Internal Controls - The company has established risk management and internal control policies, with the board responsible for overseeing their effectiveness[82]. - The board has no immediate need for an internal audit function, but will review this requirement periodically[83]. - The company has engaged an external consultant for annual audits of its internal control systems[82]. - The audit committee is tasked with reviewing the integrity of the company's financial statements and ensuring compliance with applicable standards[63]. Environmental and Social Responsibility - The company is committed to environmental and social responsibilities, with strict corporate governance policies in place[171]. - Stakeholder engagement is crucial for the company's strategy development, helping to reduce environmental impact and improve social interactions[175]. - The company operates both retail stores and wholesale sales in Hong Kong, China, and Macau, focusing on its own brand "mides" and third-party products[171]. - The company is committed to reducing energy consumption through a 4R strategy: Replace, Reduce, Reuse, and Recycle[181]. - The company has implemented measures to encourage energy-saving practices among employees, such as adjusting air conditioning to 25.5 degrees Celsius and turning off electronic devices during lunch breaks[187]. - The company adheres to various environmental protection laws in China, including the Environmental Protection Law and the Water Pollution Prevention Law[182]. Shareholder Matters - The company has adopted a shareholder communication policy to ensure equal and timely access to information, enabling shareholders to exercise their rights and participate actively in company affairs[95]. - The company has a process in place for shareholders to propose suggestions at the annual general meeting, requiring a written request to the board or company secretary[89]. - The company will verify the identity and shareholding of shareholders who submit requests for special meetings, ensuring proper governance[91]. - The board of directors approved a dividend policy on December 31, 2018, allowing shareholders to share in the company's profits while retaining sufficient funds for future growth[94]. - The company reported a distributable reserve of approximately HKD 6.2 million as of March 31, 2019[112]. - The company did not declare any dividends for the year[106]. Employee and Board Composition - The group employed approximately 892 employees as of March 31, 2019, down from 1,042 employees in 2018[27]. - The board has a balanced composition of executive and non-executive directors to ensure effective independent judgment[46]. - The chairman has held meetings with independent non-executive directors without the presence of other directors[49]. - The company has established a remuneration committee to review compensation policies and related matters[130]. Transactions and Share Options - The company has adopted a share option scheme as an incentive for selected participants[130]. - The total number of shares available for issuance under the share option scheme is capped at 40,000,000 shares, which represents 10% of the shares issued on the date of listing on GEM[154]. - Each participant in the share option scheme is limited to a maximum of 1% of the total issued shares within any 12-month period[155]. - The share option scheme will remain effective for a period of 10 years, from December 28, 2017, to December 27, 2027[156]. - No significant transactions or contracts involving directors and their related entities were reported during the year[131]. - No conflicts of interest were identified among directors or major shareholders in relation to the group's business[132].

Financial Performance - The group's revenue for the period was approximately HKD 184.7 million, a decrease of about 12.5% compared to HKD 211.1 million in the same period of 2017[8] - The group's gross profit for the period was approximately HKD 76.9 million, down about 16.5% from HKD 92.1 million in the same period of 2017, with a gross margin of approximately 41.7%, a decline of 1.9% from 43.6%[8] - The group recorded a net loss of approximately HKD 8.2 million for the period, compared to a net profit of approximately HKD 0.6 million in the same period of 2017[8] - The group reported a basic and diluted loss per share of HKD 2.05 for the nine months ended December 31, 2018, compared to earnings of HKD 0.21 in the same period of 2017[9] - The total comprehensive loss attributable to the owners of the company for the period was approximately HKD 11.1 million, compared to a total comprehensive income of HKD 1.8 million in the same period of 2017[9] - The company reported a loss before tax of HKD 8,032,000 for the nine months ended December 31, 2018, compared to a profit before tax of HKD 2,207,000 for the same period in 2017[24] - The total comprehensive income for the period was a loss of HKD 14,151,000, compared to a loss of HKD 11,106,000 for the same period in 2017[24] Expenses and Costs - Selling and distribution costs for the period were approximately HKD 26.5 million, down from HKD 30.1 million in the same period of 2017[9] - Administrative and other expenses increased to approximately HKD 57.5 million from HKD 50.0 million in the same period of 2017[9] - The group incurred financing costs of approximately HKD 2.6 million for the period, compared to HKD 2.1 million in the same period of 2017[9] - The total employee costs for the nine months ended December 31, 2018, amounted to HKD 42.754 million, compared to HKD 38.417 million for the same period in 2017, reflecting an increase of approximately 11.5%[27] - The interest expense on bank loans for the nine months ended December 31, 2018, was HKD 2,590,000, up from HKD 1,790,000 in the same period of 2017, representing a 44.7% increase[26] - The total depreciation expense for property, plant, and equipment for the nine months ended December 31, 2018, was HKD 2,502,000, compared to HKD 2,402,000 in the previous year, showing a slight increase[27] Income and Other Financial Metrics - The group's other income for the period was approximately HKD 1.6 million, an increase from HKD 0.6 million in the same period of 2017[9] - Bank interest income for the nine months ended December 31, 2018, was HKD 894,000, significantly higher than HKD 5,000 for the same period in 2017[25] - The company recognized a foreign exchange gain of HKD 598,000 for the nine months ended December 31, 2018, compared to no gain in the same period of 2017[25] - The income tax expense for the nine months ended December 31, 2018, was HKD 182,000, compared to HKD 1,582,000 for the same period in 2017, indicating a significant decrease[29] Equity and Dividends - The total equity as of December 31, 2018, was HKD 74,970,000, a decrease from HKD 86,076,000 as of March 31, 2018[24] - The company’s retained earnings decreased to HKD 8,522,000 as of December 31, 2018, from HKD 16,736,000 as of March 31, 2018[24] - The group did not declare any dividends for the period, following a special dividend of HKD 16 million declared prior to the listing[7] - The company did not declare any dividends for the current period, while a special dividend of HKD 16 million was declared to the sole shareholder prior to listing[28] Strategic Initiatives - The board and sales team will continue to strengthen business relationships and diversify the customer base to stabilize contract manufacturing revenue amid global economic challenges[36] - The group aims to solidify results with new customer orders expected to stabilize in the next fiscal year[36] - The company entered into a strategic cooperation agreement with Kidswant to open eight retail stores in China, with plans to expand to a total of 30 stores in the coming year[37] Compliance and Governance - The company has adopted and complied with all applicable corporate governance code provisions, except for the separation of the roles of Chairman and CEO, which was addressed after the passing of the previous Chairman[59] - The Audit Committee has reviewed the report and believes it has been prepared in accordance with applicable accounting standards and regulations[62] - The company has confirmed that all directors have complied with the trading code standards during the reporting period[60] - There are no interests or businesses that may compete directly or indirectly with the company's operations held by any directors or controlling shareholders[55]