Financial Performance - The group's revenue decreased from approximately HK$69,400,000 for the six months ended September 30, 2019, to approximately HK$67,800,000 for the six months ended September 30, 2020, a decline of about HK$1,600,000 or approximately 2.3%[6] - The gross profit for the six months ended September 30, 2020, was approximately HK$44,900,000, an increase of about 2.9% compared to HK$43,600,000 for the same period in 2019[6] - The profit attributable to owners of the company for the six months ended September 30, 2020, was approximately HK$13,500,000, representing an increase of about 108.5% from HK$6,500,000 for the same period in 2019[6] - Excluding non-recurring legal and professional fees related to the proposed transfer of the company's shares from GEM to the main board, the profit attributable to owners of the company was approximately HK$17,300,000 for the six months ended September 30, 2020, compared to HK$11,100,000 for the same period in 2019[6] - Revenue for the six months ended September 30, 2020, was HKD 67,776,000, a decrease of 2.4% compared to HKD 69,395,000 for the same period in 2019[14] - Gross profit for the same period was HKD 44,863,000, representing a gross margin of 66.1%[14] - Net profit for the six months ended September 30, 2020, was HKD 13,451,000, an increase of 106.5% compared to HKD 6,452,000 in the prior year[14] - Basic earnings per share increased to HKD 1.20 from HKD 0.58, reflecting a growth of 106.9%[14] - The company reported a profit of HKD 13,451,000 for the six months ended September 30, 2020, compared to HKD 6,452,000 in 2019, marking an increase of 108.8%[34] - Basic earnings per share for the six months ended September 30, 2020, were HKD 13,451,000 compared to HKD 6,452,000 for the same period in 2019, representing a 108.8% increase[47] Cash Flow and Assets - Cash generated from operating activities for the six months was HKD 23,977,000, up from HKD 15,800,000 in the previous year[19] - Total assets less current liabilities increased to HKD 143,348,000 from HKD 127,174,000, indicating a growth of 12.7%[16] - The company's cash and cash equivalents at the end of the period were HKD 94,201,000, compared to HKD 72,116,000 at the end of the previous year[19] - Non-current liabilities, specifically lease liabilities, rose to HKD 4,819,000 from HKD 2,096,000, reflecting an increase of 130.0%[16] - The total equity of the company increased to HKD 138,529,000 from HKD 125,078,000, a growth of 10.8%[16] Revenue Sources - Revenue from retail stores for the six months ended September 30, 2020, was HKD 57,755,000, down 9.2% from HKD 63,735,000 in 2019[30] - Online store revenue increased significantly to HKD 9,224,000 for the six months ended September 30, 2020, compared to HKD 2,934,000 in 2019, representing a growth of 214.5%[30] - The skincare product revenue for the six months ended September 30, 2020, was HKD 49,468,000, slightly up from HKD 49,115,000 in 2019[37] - The company reported a total of HKD 2,460,000 in revenue from other products for the six months ended September 30, 2020, down from HKD 4,488,000 in 2019[37] Expenses and Costs - The total employee costs for the six months ended September 30, 2020, were HKD 11,526,000, a decrease from HKD 13,184,000 in 2019[40] - Sales cost reduced from approximately HKD 25,800,000 to approximately HKD 22,900,000, a decrease of about 11.1%, primarily due to increased sales of exclusive skincare products and favorable exchange rates[65] - Selling and distribution expenses decreased from approximately HKD 17,500,000 to approximately HKD 14,100,000, a decline of about 19.1%[67] - Administrative and operating expenses fell from approximately HKD 17,500,000 to approximately HKD 16,200,000, a decrease of about 7.5%[69] - Employee costs, including director remuneration, were approximately HKD 11,500,000 for the six months ended September 30, 2020, down from HKD 13,200,000 for the same period in 2019, representing a decrease of about 12.83%[85] Dividends - The board of directors decided not to recommend any interim dividend for the six months ended September 30, 2020, consistent with the same period in 2019[7] - The company did not declare any interim dividend for the six months ended September 30, 2020, compared to HKD 6,720,000 in dividends declared for the same period in 2019[45] - The company declared dividends of HKD 6,720,000 during the period, impacting retained earnings[17] Strategic Initiatives - The company aims to enhance competitiveness by expanding its sales network, enriching its product portfolio, and developing its e-commerce business[62] - The group plans to continue opening two new retail stores in Hong Kong, one in a prime shopping area (Mong Kok) and another in a local shopping area (Kowloon Bay or Tai Po), while closely monitoring the retail market environment[92] - The group has successfully renovated eight existing retail stores, with plans for further renovations delayed due to the postponement of store expansion plans[92] - The group has upgraded its self-operated online store and integrated it with the sales point system, anticipating an increase in online customer traffic[97] - The company aims to enhance its self-operated online store, with an allocation of HKD 1,000,000, of which HKD 312,000 has been utilized so far[99] Shareholder Information - Prime Era holds a 49.9% stake in the company, representing 559,000,000 shares, making it the largest shareholder[107] - Another significant shareholder, Ms. Xing Jiajue, holds 22.4% of the shares, amounting to 251,000,000 shares[107] Corporate Governance - The company has adopted the GEM Listing Rules and confirmed that all directors complied with the trading standards for the six months ended September 30, 2020[112] - There were no interests held by directors or controlling shareholders in any competing businesses during the six months ended September 30, 2020[113] - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and risk management[118] - The company believes that having the same individual serve as both Chairman and CEO is in the best interest of the group, despite deviating from corporate governance guidelines[115]

Financial Performance - Revenue for the three months ended June 30, 2020, was HKD 29,436,000, a decrease of 6.8% compared to HKD 31,589,000 for the same period in 2019[7] - Gross profit for the same period was HKD 19,356,000, with a gross margin of 65.7%, slightly down from HKD 19,641,000 and a margin of 62.1% in 2019[7] - Profit before tax increased to HKD 5,878,000, representing a 27.1% increase from HKD 4,626,000 in the previous year[7] - Net profit for the period was HKD 4,614,000, up 16.9% from HKD 3,943,000 in the same quarter of 2019[7] - Basic earnings per share increased to HKD 0.41, compared to HKD 0.35 for the same period last year, reflecting a growth of 17.1%[7] - The group reported a pre-tax profit of HKD 4,614,000 for the three months ended June 30, 2020, compared to HKD 3,943,000 for the same period in 2019[29] - Net profit increased from approximately HKD 3,900,000 to approximately HKD 4,600,000, an increase of about 17.0%, with the net profit margin rising from approximately 12.5% to approximately 15.7%[45] - Basic earnings per share increased from approximately HKD 0.35 to approximately HKD 0.41, an increase of about HKD 0.06[47] Revenue Breakdown - Revenue from retail store sales decreased by approximately HKD 2,800,000, primarily due to the outbreak of COVID-19[35] - Revenue from consignment sales decreased by approximately HKD 1,000,000, attributed to the cessation of previous consignment arrangements and new distribution agreements[35] - Revenue from the self-operated online store increased by approximately HKD 1,800,000 during the same period[35] - The group's revenue for the three months ended June 30, 2020, was approximately HKD 29,436,000, a decrease of about 6.8% from approximately HKD 31,600,000 for the same period in 2019[35] Expenses and Costs - The total employee benefit expenses amounted to HKD 5,710,000, down from HKD 6,531,000 in the previous year[23] - Selling and distribution expenses decreased from approximately HKD 8,500,000 to approximately HKD 6,900,000, a decline of about 18.8%[40] - Administrative and operating expenses rose from approximately HKD 6,300,000 to approximately HKD 8,400,000, an increase of about 33.4%[42] - The group's sales cost decreased from approximately HKD 11,900,000 for the three months ended June 30, 2019, to approximately HKD 10,100,000 for the same period in 2020, a decline of about 15.6%[36] Equity and Dividends - Total equity as of June 30, 2020, was HKD 129,692,000, an increase from HKD 125,078,000 as of April 1, 2020[11] - The group did not declare or propose any dividends for the three months ended June 30, 2020[30] - The group did not declare or recommend any dividends for the three months ended June 30, 2020, consistent with the same period in 2019[49] Strategic Focus and Outlook - The company continues to focus on multi-brand beauty and health product retailing in Hong Kong, indicating a commitment to market expansion[14] - Future outlook remains cautiously optimistic, with management emphasizing the importance of adapting to market conditions[14] - The company is actively monitoring potential acquisition opportunities to enhance its market position[14] - The group aims to enhance competitiveness through expanding the sales network, enriching the product portfolio, and developing e-commerce business[33] Corporate Governance and Compliance - The board has confirmed compliance with the trading standards as of June 30, 2020[62] - No interests in competing businesses were reported by directors or major shareholders as of June 30, 2020[64] - The company has adhered to the corporate governance code, with a noted deviation regarding the separation of roles between the chairman and CEO[67] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited quarterly results for the period ending June 30, 2020[70] Other Information - The company has not disclosed any new product launches or technological developments during this reporting period[14] - There were no significant capital commitments or major investment acquisitions or disposals during the three months ended June 30, 2020[50][51] - Prime Era holds 780,000,000 shares, representing 69.6% of the company's equity[59] - The company has not granted any options under the share option scheme since its adoption on January 23, 2018[61] - No purchase, sale, or redemption of the company's listed securities occurred during the three months ending June 30, 2020[68]

Financial Performance - MI MING Mart Holdings Limited reported a significant increase in revenue, achieving a total of HKD 150 million for the fiscal year 2019/2020, representing a growth of 20% compared to the previous year[22]. - The group's revenue for the year ended March 31, 2020, was approximately HKD 142.5 million, a decrease of about 4.8% compared to HKD 149.7 million in the previous year[54]. - The gross profit for the same period was approximately HKD 91.4 million, down about 2.2% from HKD 93.5 million in the previous year[54]. - The profit attributable to the company's owners for the year was approximately HKD 22.9 million, a decrease of about 17.1% from HKD 27.6 million in the previous year[54]. - The company reported a net profit margin of 12%, reflecting improved operational efficiency and cost management[22]. - The company anticipates a revenue growth forecast of 15% for the next fiscal year, supported by ongoing marketing campaigns and product diversification[22]. Retail Expansion and Marketing - The company expanded its retail presence by opening three new specialty stores, contributing to a 15% increase in customer footfall[8]. - MI MING Mart's proprietary brand sales grew by 30%, driven by the introduction of new product lines and enhanced marketing strategies[22]. - The company plans to enhance its existing online store and actively develop its e-commerce business in response to changing consumer shopping habits[50]. - The company aims to increase its market share by 10% through strategic partnerships and collaborations with local suppliers[22]. - The marketing strategy focuses on enhancing brand image and customer loyalty through high-quality beauty and health products selected by the senior management team[97]. Sustainability and ESG Initiatives - MI MING Mart is committed to sustainability, with 100% of its products being cruelty-free and free from harmful chemicals[2]. - The environmental, social, and governance (ESG) report covers the period from April 1, 2019, to March 31, 2020, detailing the company's progress in ESG initiatives across 12 locations, including 10 retail stores and warehouses in Hong Kong[175]. - The board emphasizes the importance of excellent ESG performance to meet stakeholder expectations and support sustainable development[177]. - The company maintains a commitment to providing products that do not harm health, aligning with its core philosophy since its establishment in 2009[176]. - The company has increased its focus on community development and charitable contributions as part of its social responsibility initiatives[183]. Operational Efficiency and Challenges - The group will continue to improve operational efficiency and focus on enhancing the quality of service in retail stores while introducing new products[50]. - The company has faced challenges due to the COVID-19 pandemic, which has impacted customer foot traffic and sales[49]. - The board believes that the trend towards online shopping will continue even after the pandemic, as consumers have become increasingly reliant on e-commerce[50]. - The company aims to utilize a new integrated system to collect data and study customer shopping patterns to further improve operational efficiency[50]. Corporate Governance - The company has adopted and complied with the corporate governance code since its listing date on February 12, 2018[114]. - The board believes that good corporate governance standards are essential for protecting shareholder interests and enhancing corporate value[114]. - The company has established written guidelines for employees regarding securities trading, which comply with the standards set forth in the GEM Listing Rules[116]. - The board consists of independent non-executive directors with extensive experience in various industries, including telecommunications and pharmaceuticals[108][105]. - The company has implemented monitoring procedures to ensure unauthorized access to insider information is strictly prohibited[159]. Employee and Management - The group employed a total of 78 full-time employees and 11 part-time employees as of March 31, 2020, compared to 73 full-time and 15 part-time employees in 2019[76]. - Employee costs, including director remuneration, amounted to approximately HKD 29.4 million for the year ending March 31, 2020, up from HKD 27.9 million in 2019, representing a year-on-year increase of about 5.4%[76]. - The company has a diverse management team with qualifications from prestigious universities, enhancing its strategic decision-making capabilities[106][109]. Risk Management - The board is responsible for evaluating the nature and extent of risks the company is willing to take in achieving its strategic objectives, establishing and maintaining effective risk management and internal control systems[157]. - The board has conducted an annual review of the risk management and internal control systems in April 2020, confirming that these systems are effective and adequate[160]. - The company has identified key risks and prioritized them based on their likelihood and impact, with management evaluating the potential occurrence of these risks[158]. Financial Management - The company has engaged Deloitte as its external auditor, with fees for audit services amounting to HKD 1,023,000 and non-audit services totaling HKD 1,026,000, leading to a total of HKD 2,049,000[166]. - The company has adopted a dividend policy on December 27, 2018, which guides the board in determining whether to declare and pay dividends, considering future operations, profitability, funding needs, and overall financial condition[161].

MI MING MART HOLDINGS LIMITED 彌 明 生 活 百 貨 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） 股份代號：8473 ar 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市 的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經 過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之證券承 受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，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報告全部或任何部分內容而產生或因依賴該等 內容而引致的任何損失承擔任何責任。 本報告載有遵照聯交所GEM證券上市規則（「GEM上市規則」）的規定而提供有關彌明生活 百貨控股有限公司（「本公司」）資料的詳情，本公司董事（「董事」）就本報告共同及個別地 承擔全部責任。董事在作出一切合理查詢後確認，就彼等所深知及確信，本報告所載資 料在各重大方面 ...

Financial Performance - The group's revenue increased slightly from approximately HK$69,100,000 for the six months ended September 30, 2018, to approximately HK$69,400,000 for the six months ended September 30, 2019, representing a growth of about HK$300,000 or approximately 0.4%[7] - The gross profit for the six months ended September 30, 2019, was approximately HK$43,600,000, an increase of about 4.3% compared to HK$41,800,000 for the same period in 2018[7] - The profit attributable to owners of the company for the six months ended September 30, 2019, was approximately HK$6,500,000, a decrease of about 39.2% from HK$10,600,000 for the same period in 2018[7] - Excluding non-recurring legal and professional fees related to the proposed transfer of the company's listing from GEM to the main board, the profit attributable to owners of the company was approximately HK$11,100,000 for the six months ended September 30, 2019, compared to HK$10,600,000 for the same period in 2018[7] - Revenue for the six months ended September 30, 2019, was HKD 69,395,000, an increase from HKD 69,101,000 for the same period in 2018, representing a growth of 0.4%[17] - Gross profit for the six months ended September 30, 2019, was HKD 43,619,000, compared to HKD 41,813,000 in the previous year, reflecting an increase of 4.3%[17] - The net profit for the six months ended September 30, 2019, was HKD 6,452,000, down from HKD 10,617,000 in the same period of 2018, indicating a decrease of 39.5%[17] - Basic earnings per share for the six months ended September 30, 2019, was HKD 0.58, compared to HKD 0.95 for the same period in 2018, a decline of 38.9%[17] Cash Flow and Assets - Cash and cash equivalents at the end of the period were HKD 72,116,000, down from HKD 91,873,000 at the end of the previous year, a decrease of 21.5%[24] - The company reported a net cash outflow from operating activities of HKD 15,800,000 for the six months ended September 30, 2019, compared to HKD 9,972,000 in the same period of 2018, an increase of 58.4%[24] - Total assets less current liabilities amounted to HKD 119,639,000 as of September 30, 2019, compared to HKD 115,946,000 as of March 31, 2019, an increase of 3.0%[19] - Non-current assets, including property, plant, and equipment, were valued at HKD 33,597,000 as of September 30, 2019, significantly higher than HKD 2,711,000 as of March 31, 2019[19] Dividends and Shareholder Returns - The board of directors decided not to declare any interim dividend for the six months ended September 30, 2019, compared to an interim dividend of HK$0.009 per share totaling approximately HK$10,100,000 for the same period in 2018[8] - The company did not recommend any interim dividend for the six months ended September 30, 2019, compared to a dividend of HKD 0.009 per share in the same period of 2018[86] Operational Changes and Future Plans - The company plans to continue expanding its marketing and distribution of beauty and health products in Hong Kong[28] - The group aims to enhance competitiveness by expanding its sales network and enriching its product portfolio while maintaining its leading position in the multi-brand retail segment of skincare and cosmetics in Hong Kong[104] - The group will closely monitor the retail market environment in Hong Kong due to uncertainties from the US-China trade war and recent protests affecting foot traffic in major shopping areas[104] - The group successfully opened five new retail stores in locations including Kowloon Bay and Mong Kok, contributing to the expansion of its retail network[131] - Four existing retail stores were renovated, with completion expected by the end of 2019[136] Accounting Standards and Policies - The company has adopted the new Hong Kong Financial Reporting Standards (HKFRS) No. 16, which replaces HKAS 17, effective from the current interim period[34] - The application of HKFRS No. 16 has resulted in significant changes in accounting policies, particularly in the recognition of right-of-use assets and lease liabilities[38] - Right-of-use assets are measured at cost, which includes the initial measurement of lease liabilities and any initial direct costs incurred by the company[41] - Lease liabilities are recognized at the present value of unpaid lease payments, using the incremental borrowing rate if the implicit rate is not readily determinable[47] - The company will present right-of-use assets as a separate line item in the consolidated financial position statement[44] - The company will reassess lease liabilities whenever there is a change in lease term or assessment of purchase options, adjusting the corresponding right-of-use assets accordingly[51] - The company has determined that it will acquire ownership of the leased assets at the end of the lease term, depreciating the right-of-use assets over the shorter of the lease term or estimated useful life[43] - The company will account for lease modifications as separate leases if they expand the scope of the lease by adding the right to use one or more underlying assets[53] - The initial measurement of lease liabilities includes fixed payments and variable lease payments that depend on an index or rate[49] - The application of HKFRS No. 16 has not had a significant impact on the financial position and performance of the company for the current and prior periods[38] - The company recognized lease liabilities of approximately HKD 17,683,000 and corresponding right-of-use assets on April 1, 2019, following the adoption of HKFRS 16[57] - The weighted average incremental borrowing rate applied was 5.375% per annum for the lease liabilities recognized[58] Employee and Operational Costs - Total employee costs for the six months ended September 30, 2019, were HKD 13,184,000, an increase of 6.6% from HKD 12,371,000 in the same period of 2018[81] - The group has implemented training programs to enhance employee knowledge and skills, aiming to improve service quality[126] - The group employed a total of 75 full-time employees and 11 part-time employees as of September 30, 2019, with employee costs amounting to approximately HKD 13,200,000, an increase from HKD 12,400,000 for the same period in 2018[131] Market and Sales Performance - Retail store sales amounted to HKD 63,735,000 for the six months ended September 30, 2019, up from HKD 62,063,000 in the previous year, indicating a growth of 2.7%[71] - Online store sales decreased to HKD 2,934,000 for the six months ended September 30, 2019, from HKD 3,874,000 in the same period last year, representing a decline of 24.3%[71] - The company reported a total of HKD 37,806,000 in revenue for the three months ended September 30, 2019, compared to HKD 37,623,000 in the same quarter of 2018, showing a growth of 0.5%[71] - Skincare products generated revenue of HKD 27,055,000 for the three months ended September 30, 2019, a decrease of 0.6% from HKD 27,216,000 in 2018[78] Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and risk management[167] - The company has adhered to the corporate governance code, with a noted deviation regarding the separation of roles between the chairman and CEO[163] - The company emphasizes the importance of good corporate governance standards to protect shareholder interests and enhance corporate value[162]

MI MING MART HOLDINGS LIMITED 彌 明 生 活 百 貨 控 股 有 限 公 司 (於開曼群島註冊成立的有限公司) == = 股份代號：8473 2019/20 第一季度 業績 報告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市 的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經 過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之證券承 受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，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報告全部或任何部分內容而產生或因依賴該等 內容而引致的任何損失承擔任何責任。 本報告載有遵照聯交所GEM證券上市規則（「GEM上市規則」）的規定而提供有關彌明生活 百貨控股有限公司（「本公司」）資料的詳情，本公司董事（「董事」）就本報告共同及個別地 承擔全部責任。董事在作出一切合理查詢後確認，就彼等 ...

[GEM Market Characteristics](index=2&type=section&id=GEM%20Market%20Characteristics) The GEM market provides a listing platform for small and medium-sized companies, entailing higher investment risks and potential for significant market volatility - The GEM market provides a listing platform for small and medium-sized companies, with higher investment risks[5](index=5&type=chunk) - GEM securities may be subject to significant market volatility and there is no guarantee of high liquidity[5](index=5&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange are not responsible for the content of this report[5](index=5&type=chunk) [Company Information](index=4&type=section&id=Company%20Information) [Board of Directors and Committees](index=4&type=section&id=Board%20of%20Directors%20and%20Committees) This section lists the company's board members, including executive, non-executive, and independent non-executive directors, and their roles in audit, remuneration, and nomination committees - The Board of Directors includes Ms. Yuen Mi Ming (Chairperson and CEO), Ms. Yuen Mi Mong (Executive Director), Mr. Cheung Siu Hon and Mr. Lam Yu Yeung (Non-executive Directors), and three Independent Non-executive Directors: Ms. Chan Sze Lai, Ms. Shum Wai Sze, and Ms. Tsang Wing Yee[7](index=7&type=chunk) - The Audit Committee comprises Ms. Tsang Wing Yee (Chairperson), Ms. Chan Sze Lai, and Ms. Shum Wai Sze[7](index=7&type=chunk) - The Remuneration Committee comprises Ms. Chan Sze Lai (Chairperson), Ms. Yuen Mi Ming, and Ms. Shum Wai Sze[7](index=7&type=chunk) - The Nomination Committee comprises Ms. Yuen Mi Ming (Chairperson), Ms. Chan Sze Lai, and Ms. Shum Wai Sze[7](index=7&type=chunk) [Other Company Information](index=4&type=section&id=Other%20Company%20Information) This section provides detailed company information including auditor, compliance advisor, registered office, share registrar, compliance officer, headquarters, company secretary, authorized representatives, principal bankers, website, and stock code - The auditor is Deloitte Touche Tohmatsu[7](index=7&type=chunk) - The compliance advisor is Kingston Corporate Finance Limited[7](index=7&type=chunk) - The company's stock code is **8473**[8](index=8&type=chunk) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) [Results for the Three and Nine Months Ended December 31, 2018](index=5&type=section&id=Results%20for%20the%20Three%20and%20Nine%20Months%20Ended%20December%2031%2C%202018) The Group's revenue for the nine months ended December 31, 2018, was HK$107,567 thousand, with a profit for the period of HK$19,628 thousand and basic earnings per share of 1.75 HK cents, showing significant growth across financial metrics compared to the prior year Key Financial Data for the Three and Nine Months Ended December 31, 2018 | Metric | Three Months Ended Dec 31, 2018 (HK$ Thousand) | Three Months Ended Dec 31, 2017 (HK$ Thousand) | Nine Months Ended Dec 31, 2018 (HK$ Thousand) | Nine Months Ended Dec 31, 2017 (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 38,466 | 30,987 | 107,567 | 86,637 | | Gross Profit | 23,953 | 18,822 | 65,766 | 52,478 | | Profit Before Tax | 10,882 | 6,331 | 23,705 | 13,425 | | Profit and Total Comprehensive Income for the Period | 9,011 | 5,234 | 19,628 | 10,843 | | Earnings Per Share - Basic (HK cents) | 0.80 | 0.62 | 1.75 | 1.29 | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) [Changes in Equity for the Nine Months Ended December 31, 2018](index=6&type=section&id=Changes%20in%20Equity%20for%20the%20Nine%20Months%20Ended%20December%2031%2C%202018) As of December 31, 2018, the Group's total equity increased to HK$107,947 thousand from HK$98,399 thousand on April 1, 2018, primarily due to a HK$19,628 thousand increase in profit for the period, offset by HK$10,080 thousand in dividends paid Changes in Equity for the Nine Months Ended December 31, 2018 | Metric | Share Capital (HK$ Thousand) | Share Premium (HK$ Thousand) | Merger Reserve (HK$ Thousand) | Retained Profits (HK$ Thousand) | Total (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | As at April 1, 2018 (Audited) | 11,200 | 91,927 | (37,316) | 32,588 | 98,399 | | Profit and Total Comprehensive Income for the Period | – | – | – | 19,628 | 19,628 | | Dividends Paid | – | – | – | (10,080) | (10,080) | | As at December 31, 2018 (Unaudited) | 11,200 | 91,927 | (37,316) | 42,136 | 107,947 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. General Information and Reorganisation](index=7&type=section&id=1.%20General%20Information%20and%20Reorganisation) The Company was incorporated in the Cayman Islands on November 4, 2016, underwent a group reorganisation for its GEM listing, became a holding company on January 23, 2018, and primarily engages in multi-brand beauty and health product retail in Hong Kong, with shares listed on GEM since February 12, 2018 - The Company was incorporated in the Cayman Islands on **November 4, 2016**, as an investment holding company[16](index=16&type=chunk) - The Group is principally engaged in the retail of multi-brand beauty and health products in Hong Kong[17](index=17&type=chunk) - The shares have been listed on GEM of the Stock Exchange since **February 12, 2018** (the Listing Date)[18](index=18&type=chunk) [2. Basis of Preparation and Accounting Policies](index=7&type=section&id=2.%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The unaudited condensed consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, comply with GEM Listing Rules, and maintain consistency with prior year's audited statements, with no significant impact from new or revised standards - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRS) issued by the Hong Kong Institute of Certified Public Accountants[19](index=19&type=chunk) - The accounting policies are consistent with those used in the audited consolidated financial statements for the year ended **March 31, 2018**[19](index=19&type=chunk) - The adoption of new and revised HKFRS had no significant impact on the statement of profit or loss for the current period[19](index=19&type=chunk) [3. Revenue](index=8&type=section&id=3.%20Revenue) The Group's revenue primarily derives from product sales and consignment commissions, totaling HK$107,567 thousand for the nine months ended December 31, 2018, with retail store sales being the largest contributor and significant growth in online store and distributor sales - Revenue primarily comprises sales of goods and commission income from consignment sales[21](index=21&type=chunk) Revenue Analysis for the Three and Nine Months Ended December 31, 2018 | Revenue Source | Three Months Ended Dec 31, 2018 (HK$ Thousand) | Three Months Ended Dec 31, 2017 (HK$ Thousand) | Nine Months Ended Dec 31, 2018 (HK$ Thousand) | Nine Months Ended Dec 31, 2017 (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Sales of goods - Retail stores | 33,775 | 29,884 | 95,838 | 83,823 | | Sales of goods - Online stores | 3,177 | 695 | 7,051 | 1,796 | | Sales of goods - Consignment sales | 558 | 28 | 897 | 121 | | Sales of goods - Distributors | 843 | 206 | 3,427 | 392 | | Commission income from consignment sales | 113 | 174 | 354 | 505 | | **Total** | **38,466** | **30,987** | **107,567** | **86,637** | [4. Income Tax Expense](index=8&type=section&id=4.%20Income%20Tax%20Expense) Income tax expense for the nine months ended December 31, 2018, increased to HK$4,077 thousand from HK$2,582 thousand in the prior year, primarily calculated at Hong Kong Profits Tax rate of 16.5% Income Tax Expense | Metric | Three Months Ended Dec 31, 2018 (HK$ Thousand) | Three Months Ended Dec 31, 2017 (HK$ Thousand) | Nine Months Ended Dec 31, 2018 (HK$ Thousand) | Nine Months Ended Dec 31, 2017 (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Current tax: Hong Kong Profits Tax | 1,871 | 1,097 | 4,077 | 2,754 | | Deferred tax | – | – | – | (172) | | **Total** | **1,871** | **1,097** | **4,077** | **2,582** | - Hong Kong Profits Tax is calculated at **16.5%** of the estimated assessable profits for the relevant period[22](index=22&type=chunk) [5. Profit for the Period](index=9&type=section&id=5.%20Profit%20for%20the%20Period) Profit for the period is achieved after deducting various expenses, with total employee benefit expenses for the nine months ended December 31, 2018, amounting to HK$18,445 thousand and cost of inventories recognized as expense at HK$41,454 thousand Key Deductions from Profit for the Period | Expense Item | Three Months Ended Dec 31, 2018 (HK$ Thousand) | Three Months Ended Dec 31, 2017 (HK$ Thousand) | Nine Months Ended Dec 31, 2018 (HK$ Thousand) | Nine Months Ended Dec 31, 2017 (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Directors' remuneration | 1,074 | 909 | 3,222 | 2,727 | | Other staff salaries and allowances | 4,777 | 4,278 | 14,535 | 12,895 | | Retirement benefit scheme contributions | 223 | 199 | 688 | 588 | | **Total employee benefit expenses** | **6,074** | **5,386** | **18,445** | **16,210** | | Depreciation of property, plant and equipment | 586 | 686 | 1,885 | 2,118 | | Cost of inventories recognised as an expense | 14,264 | 12,161 | 41,454 | 34,141 | [6. Earnings Per Share](index=9&type=section&id=6.%20Earnings%20Per%20Share) Basic earnings per share for the nine months ended December 31, 2018, increased to 1.75 HK cents from 1.29 HK cents in the prior year, driven by higher profit attributable to owners, with no diluted earnings per share presented due to the absence of potential ordinary shares Basic Earnings Per Share Calculation | Metric | Three Months Ended Dec 31, 2018 | Three Months Ended Dec 31, 2017 | Nine Months Ended Dec 31, 2018 | Nine Months Ended Dec 31, 2017 | | :--- | :--- | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (HK$ Thousand) | 9,011 | 5,234 | 19,628 | 10,843 | | Weighted average number of ordinary shares (in thousands) | 1,120,000 | 840,000 | 1,120,000 | 840,000 | | **Basic earnings per share (HK cents)** | **0.80** | **0.62** | **1.75** | **1.29** | - The number of ordinary shares used for calculating basic earnings per share for the three and nine months ended **December 31, 2017**, was determined assuming the reorganisation and capitalisation issue had become effective on **April 1, 2017**[28](index=28&type=chunk) - No diluted earnings per share for the relevant periods are presented as there were no potential ordinary shares in issue during those periods[29](index=29&type=chunk) [7. Dividends](index=10&type=section&id=7.%20Dividends) For the nine months ended December 31, 2018, the Company declared and paid an interim dividend of 0.9 HK cents per share, totaling approximately HK$10.1 million, with no dividends paid in the prior corresponding period - For the nine months ended **December 31, 2018**, the Company declared and paid an interim dividend of **0.9 HK cents** per share, totaling approximately **HK$10,100,000**[30](index=30&type=chunk) - No dividends were paid for the nine months ended **December 31, 2017**[30](index=30&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Prospects](index=11&type=section&id=Business%20Review%20and%20Prospects) The Group operates nine retail stores in Hong Kong under the 'MI MING MART' brand, selling skincare, cosmetics, food, and health products with a 'harmless living' philosophy, and plans to expand its sales network and product portfolio to enhance competitiveness - The Group operates **nine** retail stores in Hong Kong under the brand 'MI MING MART', primarily selling beauty and health products[32](index=32&type=chunk) - The Group's philosophy is 'starting from harmless living', focusing on providing quality products free from ingredients that may affect customer health[32](index=32&type=chunk) - Sales channels include retail stores, online stores, consignment sales, and distributors[32](index=32&type=chunk) - Looking ahead, the Group aims to expand its sales network and enrich its product portfolio to enhance competitiveness and maintain market leadership[33](index=33&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review) This section provides a detailed review of the financial performance for the nine months ended December 31, 2018, covering changes in revenue, cost of sales, gross profit, various expenses, and net profit for the period, along with their key drivers [Revenue](index=12&type=section&id=Revenue) - Revenue increased by approximately **24.2%** from approximately **HK$86.6 million** for the nine months ended **December 31, 2017**, to approximately **HK$107.6 million** for the same period in **2018**[36](index=36&type=chunk) - The increase in revenue was primarily attributable to new retail store operations, sales growth after the relocation of the Causeway Bay store, increased sales volume of skincare, food, and health products, the launch of a new online sales platform, and increased distributor sales[36](index=36&type=chunk) [Cost of Sales](index=12&type=section&id=Cost%20of%20Sales) - Cost of sales increased by approximately **22.4%** from approximately **HK$34.2 million** for the nine months ended **December 31, 2017**, to approximately **HK$41.8 million** for the same period in **2018**[37](index=37&type=chunk) - The increase in cost of sales was consistent with the revenue growth, primarily comprising cost of inventories sold, commission expenses, and inbound shipping, freight, and delivery charges[37](index=37&type=chunk) [Gross Profit and Gross Profit Margin](index=12&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) - Gross profit increased by approximately **25.3%** from approximately **HK$52.5 million** for the nine months ended **December 31, 2017**, to approximately **HK$65.8 million** for the same period in **2018**[38](index=38&type=chunk) - Gross profit margin slightly increased from approximately **60.6%** to approximately **61.1%**[38](index=38&type=chunk) - The increase in gross profit margin was mainly due to increased sales of high-margin products for which the Group holds exclusive distribution rights[38](index=38&type=chunk) [Selling and Distribution Expenses](index=12&type=section&id=Selling%20and%20Distribution%20Expenses) - Selling and distribution expenses increased by approximately **8.2%** from approximately **HK$22.2 million** for the nine months ended **December 31, 2017**, to approximately **HK$24.0 million** for the nine months ended **December 31, 2018**[36](index=36&type=chunk) - This was mainly due to an increase of approximately **HK$1.5 million** in rental and related expenses, and an increase of approximately **HK$0.9 million** in salaries, allowances, and commissions[36](index=36&type=chunk) - The increase in expenses was partially offset by a decrease of approximately **HK$0.9 million** in marketing expenses[36](index=36&type=chunk) [Administrative and Operating Expenses](index=13&type=section&id=Administrative%20and%20Operating%20Expenses) - Administrative and operating expenses increased by approximately **20.3%** from approximately **HK$14.7 million** for the nine months ended **December 31, 2017**, to approximately **HK$17.7 million** for the nine months ended **December 31, 2018**[41](index=41&type=chunk) - The increase in administrative expenses was mainly due to an increase of approximately **HK$1.8 million** in audit and compliance advisor fees, an increase of approximately **HK$0.8 million** in staff costs, and an increase of approximately **HK$0.5 million** in directors' remuneration[41](index=41&type=chunk) [Interest Expense on Bank Borrowings](index=13&type=section&id=Interest%20Expense%20on%20Bank%20Borrowings) - For the nine months ended **December 31, 2018**, interest expense on bank borrowings was less than **HK$1,000** (nine months ended **December 31, 2017**: **HK$139,000**)[42](index=42&type=chunk) [Other Expenses](index=13&type=section&id=Other%20Expenses) - For the nine months ended **December 31, 2018**, the Group incurred no other expenses (nine months ended **December 31, 2017**: **HK$550,000**)[43](index=43&type=chunk) [Listing Expenses](index=13&type=section&id=Listing%20Expenses) - For the nine months ended **December 31, 2018**, the Group incurred no listing expenses (nine months ended **December 31, 2017**: **HK$1,600,000**)[44](index=44&type=chunk) [Net Profit for the Period](index=13&type=section&id=Net%20Profit%20for%20the%20Period) - Net profit for the period increased by approximately **81.0%** from approximately **HK$10.8 million** for the nine months ended **December 31, 2017**, to approximately **HK$19.6 million** for the nine months ended **December 31, 2018**[45](index=45&type=chunk) - The Group's net profit margin increased from approximately **12.5%** to approximately **18.2%** during the relevant period[45](index=45&type=chunk) [Basic Earnings Per Share](index=13&type=section&id=Basic%20Earnings%20Per%20Share) - Basic earnings per share increased by approximately **0.46 HK cents** from approximately **1.29 HK cents** for the nine months ended **December 31, 2017**, to approximately **1.75 HK cents** for the nine months ended **December 31, 2018**[46](index=46&type=chunk) - This increase is consistent with the increase in profit for the period attributable to owners of the Company for the nine months ended **December 31, 2018**[46](index=46&type=chunk) [Reserves](index=14&type=section&id=Reserves) Changes in the Group's reserves for the nine months ended December 31, 2018, are presented in the unaudited condensed consolidated statement of changes in equity - Changes in the Group's reserves for the nine months ended **December 31, 2018**, are set out in the unaudited condensed consolidated statement of changes in equity above[48](index=48&type=chunk) [Dividends](index=14&type=section&id=Dividends) For the nine months ended December 31, 2018, the Company declared and paid an interim dividend of 0.9 HK cents per share, totaling approximately HK$10.1 million, with no dividends paid in the prior corresponding period - For the nine months ended **December 31, 2018**, the Company declared and paid an interim dividend of **0.9 HK cents** per share, totaling approximately **HK$10,100,000**[50](index=50&type=chunk) - No dividends were paid for the nine months ended **December 31, 2017**[50](index=50&type=chunk) [Capital Commitments](index=14&type=section&id=Capital%20Commitments) As of December 31, 2018, the Group had no significant capital commitments - As at **December 31, 2018**, the Group had no significant capital commitments[51](index=51&type=chunk) [Material Investments, Acquisitions or Disposals](index=14&type=section&id=Material%20Investments%2C%20Acquisitions%20or%20Disposals) For the nine months ended December 31, 2018, the Group did not undertake any material investments, acquisitions, or disposals - For the nine months ended **December 31, 2018**, the Group did not undertake any material investments, acquisitions, or disposals[52](index=52&type=chunk) [Contingent Liabilities](index=14&type=section&id=Contingent%20Liabilities) As of December 31, 2018, the Group had no significant contingent liabilities - As at **December 31, 2018**, the Group had no significant contingent liabilities[53](index=53&type=chunk) [Corporate Governance and Other Information](index=15&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company and its Associated Corporations](index=15&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of December 31, 2018, Ms. Yuen Mi Ming held **69.6%** of the Company's shares through her wholly-owned Prime Era Holdings Limited, with her spouse Mr. Lam Yu Yeung deemed to have the same interest Directors' Interests in Shares of the Company | Name of Director | Capacity/Nature of Interest | Number of Shares Interested | Percentage of the Company's Shareholding | | :--- | :--- | :--- | :--- | | Ms. Yuen Mi Ming | Interest in a controlled corporation | 780,000,000 (L) | 69.6% | | Mr. Lam Yu Yeung | Spouse's interest | 780,000,000 (L) | 69.6% | - Prime Era holds a direct interest in **780,000,000** shares and is wholly and beneficially owned by Ms. Yuen Mi Ming, who is therefore deemed to be interested in all shares held by Prime Era[56](index=56&type=chunk) - Mr. Lam Yu Yeung, being the spouse of Ms. Yuen Mi Ming, is deemed under the Securities and Futures Ordinance to be interested in the same number of shares in which Ms. Yuen Mi Ming is interested[56](index=56&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company](index=16&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of December 31, 2018, Prime Era Holdings Limited, a wholly-owned entity of Ms. Yuen Mi Ming, was a substantial shareholder holding **69.6%** of the Company's shares Substantial Shareholders' Interests in Shares of the Company | Name of Shareholder | Capacity/Nature of Interest | Number of Shares Held | Percentage of the Company's Shareholding | | :--- | :--- | :--- | :--- | | Prime Era (Note 2) | Beneficial owner | 780,000,000 (L) | 69.6% | - Prime Era is wholly and beneficially owned by Ms. Yuen Mi Ming, who is deemed under the Securities and Futures Ordinance to be interested in all shares held by Prime Era[59](index=59&type=chunk) [Share Option Scheme](index=16&type=section&id=Share%20Option%20Scheme) The Company approved and adopted a share option scheme on January 23, 2018, but no options have been granted since its adoption date - The Company has a share option scheme which was approved and adopted by written resolutions on **January 23, 2018**[60](index=60&type=chunk) - No share options have been granted by the Company under the share option scheme since its adoption date[60](index=60&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=16&type=section&id=Code%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) The Company adopted the GEM Listing Rules' required standard of dealings for directors' securities transactions and confirmed all directors complied with it for the nine months ended December 31, 2018 - The Company has adopted the required standard of dealings set out in Rules **5.48 to 5.67** of the GEM Listing Rules as the code of conduct for directors' securities transactions[61](index=61&type=chunk) - Specific enquiries have been made to all Directors, and each Director has confirmed compliance with the required standard of dealings for the nine months ended **December 31, 2018**[61](index=61&type=chunk) [Directors' Interests in Competing Businesses](index=16&type=section&id=Directors'%20Interests%20in%20Competing%20Businesses) For the nine months ended December 31, 2018, no directors, controlling shareholders, or their associates held any interests in businesses competing or potentially competing with the Group - For the nine months ended **December 31, 2018**, none of the Directors, controlling shareholders of the Company, or their respective associates had any interests in businesses that compete or are likely to compete with the Group's business[62](index=62&type=chunk) [Corporate Governance Practices](index=16&type=section&id=Corporate%20Governance%20Practices) The Board is committed to good corporate governance, adopting the GEM Listing Rules' Corporate Governance Code; despite the Chairman and CEO roles being combined, the Board believes this arrangement serves the Group's best interests - The Company has applied the principles and practices set out in the Corporate Governance Code in Appendix 15 to the GEM Listing Rules[65](index=65&type=chunk) - Ms. Yuen Mi Ming is the founder, Chairperson, Executive Director, and Chief Executive Officer of the Company, which deviates from Code Provision A.2.1, but the Board believes this arrangement is in the best interests of the Group[66](index=66&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=17&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the nine months ended December 31, 2018, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the nine months ended **December 31, 2018**, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[67](index=67&type=chunk) [Interests of the Compliance Advisor](index=17&type=section&id=Interests%20of%20the%20Compliance%20Advisor) Other than the compliance advisor agreement, Kingston Corporate Finance Limited, its directors, employees, or close associates held no interests in the securities of the Company or any other Group entity - Save for the compliance advisor agreement and its supplemental letter entered into between the Company and Kingston Corporate Finance Limited, neither the compliance advisor nor any of its directors, employees, or close associates had any interests in the securities of the Company or any other member of the Group[68](index=68&type=chunk) [Audit Committee](index=17&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors chaired by Ms. Tsang Wing Yee, assists the Board in reviewing internal audit, financial reporting, internal controls, and risk management, and has reviewed the unaudited quarterly results for this period - The Audit Committee comprises three independent non-executive Directors: Ms. Tsang Wing Yee (Chairperson), Ms. Chan Sze Lai, and Ms. Shum Wai Sze[69](index=69&type=chunk) - Ms. Tsang Wing Yee possesses the appropriate professional accounting qualifications and relevant financial management expertise as required under Rule **5.05(2)** of the GEM Listing Rules[69](index=69&type=chunk) - The primary duties of the Audit Committee are to assist the Board in providing an independent review of the Group's internal audit function, financial reporting process, internal control, and risk management systems, and to oversee the audit process[69](index=69&type=chunk) - The Audit Committee has reviewed the unaudited quarterly results for the nine months ended **December 31, 2018**[69](index=69&type=chunk)