Financial Performance - For the three months ended June 30, 2022, the company reported revenue of HKD 33,247,000, a decrease of 45.4% compared to HKD 60,778,000 for the same period in 2021[7] - Gross profit for the same period was HKD 11,786,000, down 22.5% from HKD 15,184,000 year-over-year[7] - The net profit for the period was HKD 1,473,000, representing a decline of 26.9% compared to HKD 2,014,000 in the previous year[7] - Basic and diluted earnings per share were HKD 0.39, down from HKD 0.56 in the same quarter of 2021[7] - Other income decreased significantly to HKD 268,000 from HKD 36,000 in the prior year, indicating a decline of 25.6%[7] - The company incurred finance costs of HKD 787,000, an increase of 32.5% compared to HKD 594,000 in the previous year[7] - Total comprehensive income attributable to owners of the company was HKD 1,566,000, down from HKD 2,240,000 in the same period last year[7] - The company's revenue decreased by approximately 45.3% from about HKD 60.8 million to approximately HKD 33.2 million for the three months ended June 30, 2022, primarily due to recent waves of COVID-19 and global economic recession[40] - The pre-tax profit for the three months ended June 30, 2022, was HKD 21.5 million, down from HKD 45.6 million in the same period of 2021[31] - The total profit and comprehensive income attributable to the company’s owners was approximately HKD 1.6 million, down from HKD 2.2 million in the previous year[51] Expenses and Costs - The cost of sales decreased by approximately 52.9% from about HKD 45.6 million to approximately HKD 21.5 million, directly related to the decline in revenue[41] - Administrative expenses were HKD 5,539,000, a decrease of 17.0% from HKD 6,665,000 in the previous year[7] - The total employee costs increased to HKD 3.93 million in 2022 from HKD 3.74 million in 2021, reflecting a rise in salaries and benefits[31] - Gross profit decreased by approximately 22.4% from about HKD 15.2 million to about HKD 11.8 million, with gross margin for the periods being approximately 25.0% and 35.5% respectively[43] - Administrative expenses decreased from approximately HKD 6.7 million to about HKD 5.5 million, attributed to reduced legal and professional fees[49] - Financing costs increased from approximately HKD 0.6 million to about HKD 0.8 million, mainly due to increased mortgage loan interest[50] Business Strategy and Operations - The company aims to enhance its market presence and explore new product lines in the upcoming quarters[7] - The company has shifted its focus to developing proprietary formula and branded products in response to declining demand and intense market competition[39] - The company has been optimizing and expanding its business, focusing on diversification and creating new products and sales channels[55] - The company is closely monitoring the development of the COVID-19 pandemic and the global economic environment, adjusting its business strategies accordingly[55] Corporate Governance - The board of directors confirmed that the financial information presented is accurate and complete, with no misleading elements[7] - The company has complied with all corporate governance code provisions, except for the insurance for legal actions against directors, which was not obtained during the reporting period[80] - 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[83] - The company has adopted a stock trading code for directors, ensuring compliance with GEM listing rules[77] - The company has established a non-competition agreement with its major shareholders, ensuring compliance throughout the reporting period[76] Shareholder Information - The company’s major shareholders, Ms. Wang Zilu and Mr. Ding Zhiwei, collectively hold 70% of the company's equity through their spousal relationship[67] - The company aims to maintain at least 50% beneficial ownership by its major shareholders[66][68] Financing Activities - The company has established a loan agreement with Hang Seng Bank for a total financing amount of HKD 50 million, HKD 30 million, and HKD 100,000 under financing letter A[66] - A second financing letter with Chuang Hing Bank was established, providing trade financing of up to HKD 48 million, term loan of HKD 20 million, and overdraft financing of HKD 3 million[68] Dividend Policy - The company did not declare any dividends for the current period, consistent with the previous year[36] - The company did not recommend any interim dividend for the period, consistent with the previous year[52] Market Presence - The company operates solely in Hong Kong, with all revenue generated from the sale and distribution of alcoholic beverages within the region[24] - There were no individual customers accounting for more than 10% of total revenue during the reporting period[25] Compliance and Reporting - The company has begun evaluating the impact of new and revised Hong Kong Financial Reporting Standards but has not yet determined if they will significantly affect its operational performance and financial position[19] - The company has not granted, exercised, canceled, or allowed any stock options since the adoption of the stock option plan in December 2017[73] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[74]

Financial Performance - The Group's revenue decreased by approximately 25.8% from approximately HK$299.6 million in the year ended March 31, 2021, to approximately HK$222.4 million for the year ended March 31, 2022[18]. - Profit and total comprehensive income for the year amounted to approximately HK$21.2 million, representing a decrease of approximately 23.2% from HK$27.6 million in 2021[18]. - The decrease in revenue was primarily due to reduced demand for products caused by the COVID-19 pandemic, particularly during the fifth wave in early 2022[18]. - The strict control measures imposed during the pandemic significantly impacted sales during the first quarter of 2022[18]. - Revenue decreased by approximately 25.8% from approximately HK$299.6 million for the year ended 31 March 2021 to approximately HK$222.4 million for the Year[21]. - Profit and total comprehensive income for the Year reached approximately HK$21.2 million, a decrease of about 23.2% compared to HK$27.6 million for the year ended 31 March 2021[21]. - The Group's gross profit decreased by approximately 7.6% from approximately HK$72.1 million for the year ended 31 March 2021 to approximately HK$66.6 million for the year ended 31 March 2022[38]. - The overall gross profit margin increased from approximately 24.1% in 2021 to approximately 29.9% in 2022, attributed to higher margins on certain self-owned alcoholic beverage brands[38]. - Other income slightly increased from approximately HK$3.1 million in 2021 to approximately HK$3.4 million in 2022, mainly from service provision[38]. - Selling and distribution expenses rose from approximately HK$15.1 million in 2021 to approximately HK$16.9 million in 2022, primarily due to the absence of rental concessions[38]. - Administrative expenses increased from approximately HK$20.2 million in 2021 to approximately HK$23.6 million in 2022, mainly due to higher legal and professional fees[40]. - Finance costs decreased by approximately 52.9% from approximately HK$5.7 million in 2021 to approximately HK$2.7 million in 2022, due to a reduction in trust receipt loans[41]. - Income tax expense decreased by approximately 17.2% from approximately HK$6.8 million in 2021 to approximately HK$5.7 million in 2022, attributed to lower estimated assessable profit[42]. - Profit attributable to owners of the Company for the year amounted to approximately HK$21.2 million, down from approximately HK$27.6 million in 2021[43]. Business Operations and Strategy - The Group focuses on the wholesale and retail of premium collectible red wine, defined as red wine priced at or above HK$1,000 per bottle[17]. - The Group's business operations are primarily located in Hong Kong, specializing in a wide spectrum of wine products and other alcoholic beverages[17]. - The Company has acknowledged the challenges posed by the pandemic and is strategizing to adapt to changing market conditions[18]. - Future outlook includes potential recovery as pandemic restrictions ease, with a focus on regaining market demand[18]. - The Group is committed to maintaining product quality and expanding its premium wine offerings to attract discerning customers[18]. - The Company continues to monitor market trends and consumer preferences to inform its business strategies moving forward[18]. - The Group is enhancing warehouse storage capacity and operational efficiency by establishing new warehouses in Hong Kong and implementing a professional warehouse management system tailored for the wine industry[22]. - The Group aims to strengthen its leading position in the wine industry in Hong Kong while seeking expansion opportunities to increase market share in different countries worldwide[25]. - The Group has launched online products to capture customer demand during the pandemic, adapting to changing market trends[31]. - The Group's product portfolio includes Premium Collectible Red Wine, fine red wine, white wine, and other alcoholic beverages, as well as wine accessory products[30]. - The establishment of a retail store in a prime location in Kowloon at the end of 2018 continues to support the Group's market presence[22]. - The Group is closely monitoring the development of the COVID-19 pandemic and will adjust its business strategies as necessary[24]. - The Group's strategic focus includes increasing storage capacity, diversifying sales channels, and expanding its business footprint[102]. - The Group is focused on developing business strategies to enhance sales and marketing activities in the wholesale sector[154]. Corporate Governance - The company has seen a strategic focus on corporate governance and internal control, particularly under the leadership of Ms. Yeung[121]. - The company is actively involved in various committees, enhancing its governance and strategic direction[130]. - The board composition reflects a commitment to effective governance and strategic oversight, with members having significant experience in their respective fields[120]. - The company has a strong governance structure with independent non-executive directors leading key committees[137]. - The management team includes professionals with extensive backgrounds in law, finance, and corporate governance[138]. - The company is focused on maintaining high standards of corporate governance and compliance[139]. - The board is actively involved in strategic decision-making and oversight of the company's operations[140]. - The company aims to leverage its management's expertise to enhance its market position and drive growth[141]. - The company has complied with all provisions of the Corporate Governance Code during the year, except for code provision C.1.8 regarding insurance cover for directors[164]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors[171]. - The company is in the process of arranging Directors' and officers' liability insurance as required by the Corporate Governance Code[164]. - The board conducts at least four regular meetings a year to oversee significant operational and financial matters[166]. - The company is committed to maintaining high standards of corporate governance to safeguard shareholder interests[162]. - The board has reserved decision-making on strategic objectives, significant operational matters, and risk management[165]. - The company has established various committees, including Audit, Remuneration, Nomination, and Investment Management Committees, to assist in governance[171]. - The new Corporate Governance Code requirements came into effect on January 1, 2022, and will apply to the company's governance report for the financial year starting thereafter[163]. - The company has not arranged appropriate insurance cover for legal actions against its directors during the year[164]. - All Directors are subject to retirement by rotation at least once every three years, ensuring a balanced composition of executive, non-executive, and independent non-executive Directors[179]. - The Company complies with GEM Listing Rules by having at least one independent non-executive Director with appropriate professional qualifications or financial management expertise[180]. - The Board is collectively responsible for directing and supervising the Company's affairs, including monitoring operational and financial performance[182]. - Major matters such as policy, strategies, and financial information are reserved for the Board's decision, ensuring effective governance[183]. - Daily operations and management are delegated to executive Directors and senior management, who report periodically to the Board[184]. - Directors have full access to Group information and can obtain independent professional advice as necessary[193]. - The Company Secretary ensures compliance with procedures and regulations, maintaining minutes of Board meetings for inspection[192]. - Independent non-executive Directors have confirmed their independence annually, and the Company considers all of them to be independent[196]. - Any material transaction involving a conflict of interest is addressed at Board meetings with the presence of independent non-executive Directors[195]. - Directors act in good faith and with due diligence to ensure the best interests of the Company and its shareholders[200]. - Regular board meetings focus on business strategy, operational issues, and financial performance[200]. - Monitoring the quality and reliability of internal and external reporting is a key responsibility[200]. - Management of potential conflicts of interest, including misuse of corporate assets, is prioritized[200]. - Processes are in place to maintain the overall integrity of the Company, including financial statements and stakeholder relationships[200]. - Compliance with all laws and ethics is a critical aspect of corporate governance[200]. Management and Leadership - Mr. Chan Cham Man Simon was appointed as independent non-executive Director on December 1, 2021, and serves as the chairman of the Investment Management Committee[127]. - Ms. Chan Man Ki Maggie M.H. was appointed as independent non-executive Director on June 13, 2019, and is a member of the Audit Committee and the Remuneration Committee[131]. - Ms. Yeung Chi Hung has been a non-executive Director since January 3, 2017, and is responsible for advising on the strategy, performance, and resources of the Group[120]. - Mr. Simon Chan holds a bachelor's degree in Science (Business Administration) from the University of Southern California and has extensive experience in business development and sales operations[128]. - The company emphasizes the importance of legal advice and services, with Ms. Chan having over 27 years of experience as a solicitor in Hong Kong[131]. - The leadership team has a diverse background in various industries, contributing to the company's strategic planning and operational management[127]. - The company has a strong focus on investment management and business development, as evidenced by the roles of its independent directors[128]. - Mr. Wong has over 30 years of experience in corporate management, investment management, and finance[142]. - Mr. Wong is currently an independent non-executive director for multiple listed companies, including CRCC High-Tech Equipment Corporation and Jiangxi Bank[147]. - Ms. Chan has held various community positions and received honors such as the Medal of Honor in 2012 and Justice of the Peace in 2015[136]. - Ms. Kralj joined the Group in October 2018 as Vice President of Technology, Strategy, and R&D, overseeing technological development[149]. - Mr. Leung joined the Group in July 2021 as Senior Vice President of Business Development, responsible for business strategies and overseeing sales and marketing activities[152]. - Mr. Loong has been with the Group since September 2013, currently serving as Vice President of Trade Business Development, focusing on wholesale business strategies[154]. - Ms. Kralj holds a bachelor's degree in Technical Communication and a master's degree in Learning and Organizational Change, enhancing her expertise in technology and strategy[152]. - Mr. Leung has extensive experience in sourcing and promoting premium fine wine, having worked at Watsons' Wine for over 11 years[152]. - Mr. Loong previously worked as a wine sales manager and has significant experience in planning marketing and promotional activities in the wine industry[155]. - Ms. Kralj completed a comprehensive distilling course in South Africa in 2017, furthering her qualifications in the spirits industry[152]. - Mr. Loong obtained the WSET Level 3 Advanced Certificate in Wines and Spirits in November 2009, showcasing his expertise in the field[156]. - The management team brings a diverse background in technology, marketing, and wine expertise, positioning the Group for future growth[149].

Financial Performance - For the nine months ended December 31, 2021, the company reported total revenue of HKD 181,166,000, a decrease of 11.3% compared to HKD 204,341,000 for the same period in 2020[5] - Gross profit for the nine months was HKD 44,657,000, down 9.3% from HKD 49,342,000 in the previous year[5] - The company recorded a net profit attributable to owners of HKD 12,588,000 for the nine months, a decrease of 26.5% compared to HKD 17,118,000 in the same period last year[5] - Basic and diluted earnings per share for the nine months were HKD 3.14, down from HKD 4.28 in the previous year, representing a decline of 26.6%[5] - The company reported a total comprehensive income of HKD 12,092,000 for the nine months, compared to HKD 16,918,000 in the same period last year, reflecting a decrease of 28.4%[6] - Revenue from wine products for the three months ended December 31, 2021, was HKD 68,544,000, a decrease of 12.4% from HKD 78,483,000 in the same period of 2020[16] - Other alcoholic beverages revenue for the three months ended December 31, 2021, was HKD 3,766,000, a decline of 67.5% compared to HKD 11,580,000 in the same period of 2020[16] - The company recorded a pre-tax profit of HKD 9,054,000 for the three months ended December 31, 2021, compared to HKD 12,596,000 in the same period of 2020, representing a decrease of 28.5%[28] - Basic earnings per share for the three months ended December 31, 2021, was HKD 0.0226, down from HKD 0.0315 in the same period of 2020[28] - The profit attributable to the company's owners for the period was approximately HKD 12.6 million, down from HKD 17.1 million in the previous year[45] Income and Expenses - The company’s other income for the nine months increased significantly to HKD 3,313,000 from HKD 2,567,000 in the previous year, marking a growth of 29.0%[5] - The cost of goods sold for the three months ended December 31, 2021, was HKD 52,265,000, down 17.6% from HKD 63,426,000 in the same period of 2020[26] - The cost of sales fell by about 11.9% from approximately HKD 155.0 million to about HKD 136.5 million, directly related to the decrease in revenue[38] - Selling and distribution expenses rose from approximately HKD 11.5 million to about HKD 13.6 million, attributed to increased depreciation and reduced rental income due to COVID-19[42] - Administrative expenses increased from approximately HKD 11.9 million to about HKD 15.9 million, mainly due to higher legal and professional fees[43] - Total financing costs for the three months ended December 31, 2021, were HKD 445,000, a decrease of 65.8% from HKD 1,304,000 in the same period of 2020[24] - Financing costs decreased from approximately HKD 4.2 million to about HKD 1.9 million, primarily due to a reduction in trust receipt loans during the period[44] Assets and Financing - The total assets of the company as of December 31, 2021, were HKD 239,361,000, compared to HKD 199,168,000 as of December 31, 2020, indicating an increase of 20.2%[6] - The company has established a bank financing agreement with Hang Seng Bank for a maximum financing amount of HKD 50,000,000, HKD 30,000,000, and HKD 100,000 for various credit facilities[62] - A second bank financing agreement with Chuang Hing Bank was established for a maximum financing amount of HKD 48,000,000, HKD 20,000,000, and HKD 3,000,000 for trade financing, term loans, and overdraft facilities[64] Market Strategy and Operations - The company plans to continue expanding its market presence and product offerings in the coming quarters, focusing on enhancing its distribution channels[9] - The company has not reported any significant new product launches or technological advancements during this period[9] - The management remains cautious about market conditions and potential risks associated with the ongoing economic environment[9] - The company has expanded its business by establishing an e-commerce platform and launching an online auction platform to enhance sales of high-end wines priced at HKD 10,000 or above[50] Corporate Governance - The company is committed to high standards of corporate governance to protect shareholder interests and enhance company value[75] - The Audit Committee was established on December 18, 2017, in accordance with GEM Listing Rules and Corporate Governance Code[76] - The Audit Committee consists of three independent non-executive directors, with Mr. Huang Hsien-Jung as the chairman[76] - The Audit Committee reviewed the unaudited consolidated performance of the group and confirmed compliance with applicable accounting standards and GEM Listing Rules[76] - The company has confirmed compliance with a non-competition agreement established on December 18, 2017, involving key stakeholders[73] - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM listing rules[74] Shareholder Information - As of December 31, 2021, the total issued shares of the company were 400,000,000[60] - Wang Zilu and Ding Zhiwei collectively hold 70% of the company's equity through their spousal relationship, amounting to 280,000,000 shares each[58][63] - The company has not issued, exercised, canceled, or allowed any stock options since the adoption of its stock option plan on December 18, 2017[68] - There were no purchases, sales, or redemptions of the company's listed securities during the reporting period[69] - The report will be published on the GEM website and the company's website for at least seven days from the publication date[77] - The company is located at 26/Floor, AIA Financial Centre, 712 Prince Edward Road East, San Po Kong, Kowloon, Hong Kong[79]

Financial Performance - For the six months ended September 30, 2021, the company reported total revenue of HKD 108,742,000, a decrease of 5.5% compared to HKD 114,176,000 for the same period in 2020[6] - Gross profit for the same period was HKD 24,498,000, representing an increase of 8.4% from HKD 22,603,000 in the previous year[6] - The company recorded a net profit attributable to owners of HKD 3,534,000 for the six months ended September 30, 2021, compared to HKD 4,522,000 for the same period in 2020, reflecting a decrease of 21.8%[6] - Basic and diluted earnings per share for the six months were HKD 0.88, down from HKD 1.13 in the previous year, indicating a decline of 22.1%[6] - The company reported other income of HKD 3,210,000 for the six months ended September 30, 2021, compared to HKD 1,770,000 in the previous year, marking an increase of 81.1%[6] - The company reported a pre-tax profit of HKD 5,825,000 for the six months ended September 30, 2021, compared to HKD 5,468,000 in the same period of 2020, representing an increase of 6.5%[7] - The company reported a net loss for the six months ended September 30, 2021, was approximately HKD 0.5 million, compared to HKD 1.4 million for the same period in 2020, mainly due to foreign exchange losses[46] - Total comprehensive income attributable to owners was approximately HKD 3.5 million, down from HKD 4.5 million in 2020[52] Revenue Breakdown - Revenue from wine products for the six months ended September 30, 2021, was HKD 102,403,000, a decrease of 2.5% from HKD 105,262,000 in the same period of 2020[24] - Revenue from other alcoholic beverages decreased to HKD 5,521,000 from HKD 8,757,000, reflecting a decline of 37.5%[24] - The company's revenue decreased by approximately 4.8% from about HKD 114.2 million to approximately HKD 108.7 million due to reduced product demand caused by the COVID-19 pandemic[41] Expenses and Costs - Administrative expenses increased to HKD 11,667,000 for the six months ended September 30, 2021, from HKD 7,071,000 in the same period last year, reflecting a rise of 65.5%[6] - Total employee costs increased from HKD 6,458 thousand in the six months ended September 30, 2020, to HKD 7,324 thousand in the same period of 2021[30] - Selling and distribution expenses rose from approximately HKD 7.5 million to HKD 8.3 million, attributed to rental concessions during the COVID-19 pandemic[47] - Financing costs decreased significantly to HKD 1,410,000 from HKD 2,900,000, a reduction of 51.3%[28] - Income tax expenses increased over 1.5 times from approximately HKD 1.0 million to HKD 2.6 million, due to higher estimated taxable profits[51] Assets and Liabilities - Total assets as of September 30, 2021, were HKD 229,582,000, compared to HKD 228,315,000 as of March 31, 2021, showing a slight increase[7] - The company's current liabilities amounted to HKD 116,805,000 as of September 30, 2021, down from HKD 121,355,000 as of March 31, 2021, indicating improved liquidity[7] - The company experienced a decrease in inventory, which reduced by HKD 19,978,000 compared to HKD 13,858,000 in the previous year[7] - The total cash and cash equivalents at the end of the period were HKD 23,998,000[17] Strategic Initiatives - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[5] - The company continues to focus on enhancing operational efficiency and exploring strategic partnerships to drive future growth[5] - The company aims to strengthen its market position in the wine industry while seeking expansion opportunities in other markets[39] - The company is enhancing warehouse storage and operational efficiency, including leasing a new warehouse in Hong Kong and acquiring a specialized warehouse management system[40] - The company has successfully implemented an e-commerce platform and launched an online auction platform to enhance sales of premium wines priced at HKD 10,000 or above[73] - The company has expanded its business footprint by establishing an office in Shanghai, China, to promote its products through various marketing and sales activities[73] Corporate Governance - The company is committed to high levels of corporate governance and has complied with the GEM Listing Rules and corporate governance code during the reporting period[99] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated results for the period and found them compliant with applicable accounting standards[100] - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with the GEM Listing Rules[98] Shareholder Information - As of September 30, 2021, the company’s major shareholder holds 70% of the issued share capital, amounting to 280 million shares[81] - As of September 30, 2021, the company has issued 400,000,000 shares[87] - The major shareholders, Ms. Wang Zilu and Mr. Ding Zhiwei, collectively hold 70% of the company's equity[89] Financing Activities - The company has secured a loan agreement with Hang Seng Bank for a maximum financing amount of HKD 50,000,000, HKD 30,000,000, and HKD 100,000 for a revolving loan, credit financing, and corporate credit card respectively[88] - The company has entered into a loan agreement with Chuangxing Bank for trade financing and overdraft financing with maximum amounts of HKD 35,000,000 and HKD 3,000,000 respectively[91] Market Conditions - The company continues to monitor the impact of the COVID-19 pandemic on its financial condition and operational performance[40] - The company is cautious about expanding its retail network due to uncertainties in the Hong Kong retail environment caused by the COVID-19 pandemic[76] - The expected timeline for utilizing unutilized net proceeds is subject to change based on current and future market conditions[76] - The company faces risks related to property price fluctuations that may adversely affect its financial condition and future rental expenses for flagship stores[78]

Financial Performance - Revenue for the three months ended June 30, 2021, was HKD 60,778,000, a slight increase of 0.76% compared to HKD 60,320,000 in the same period of 2020[5] - Gross profit for the same period was HKD 15,184,000, representing a significant increase of 36.5% from HKD 11,117,000 in 2020[5] - The net profit attributable to owners of the company for the period was HKD 2,240,000, compared to HKD 2,556,000 in the previous year, reflecting a decrease of 12.4%[5] - Basic and diluted earnings per share for the period were HKD 0.56, down from HKD 0.63 in the same period last year[5] - The company reported a total comprehensive income of HKD 2,014,000 for the period, down from HKD 2,556,000 in 2020[5] - Other income for the period was HKD 36,000, a decrease of 93.8% compared to HKD 585,000 in the previous year[5] - The group reported revenue of HKD 60,778,000 for wine products, an increase from HKD 55,207,000 in the same period last year, representing a growth of approximately 10.4%[41] - Other alcoholic beverages generated revenue of HKD 60,320,000, compared to HKD 5,096,000 in the previous year, indicating a significant increase[41] - The group’s pre-tax profit was HKD 862,000, compared to HKD 421,000 in the previous year, indicating an increase of about 104.5%[49] - Revenue for the group remained relatively stable at approximately HKD 60.8 million for the three months ended June 30, 2021, compared to approximately HKD 60.3 million for the same period in 2020[56] Expenses and Costs - Administrative expenses increased to HKD 6,665,000 from HKD 3,433,000, marking an increase of 94.5% year-on-year[5] - The cost of goods sold was HKD 45,594,000, a decrease from HKD 49,203,000 in the previous year, reflecting a reduction of approximately 7.3%[49] - Total employee costs increased to HKD 3,744,000 from HKD 3,155,000, marking an increase of about 18.6%[49] - The cost of sales decreased by approximately 7.3% from about HKD 49.2 million for the three months ended June 30, 2020, to about HKD 45.6 million for the current period[57] - Gross profit increased by approximately 36.6% from about HKD 11.1 million for the three months ended June 30, 2020, to about HKD 15.2 million for the current period, with gross margin rising from approximately 18.4% to 25.0%[59] Financing and Shareholder Information - Financing costs decreased significantly to HKD 594,000 from HKD 1,753,000, a reduction of 66.1%[5] - Financing costs decreased to HKD 594,000 from HKD 2,422,000, showing a reduction of approximately 75.5%[47] - The company has established a bank financing agreement with Hang Seng Bank for a maximum financing amount of HKD 50,000,000, HKD 30,000,000, and HKD 100,000 for various credit facilities[85] - The company has a total of 400,000,000 shares issued as of June 30, 2021, with major shareholders holding 70% of the equity[76] - Wang Zilu holds 280,000,000 shares, representing a 70% ownership stake in the company[79] - The company is committed to maintaining at least 50% beneficial ownership by its major shareholders as per financing agreements[85] Corporate Governance and Compliance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15, ensuring high-level corporate governance and shareholder interest protection[98] - 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[99] - The company has confirmed compliance with a non-competition agreement established on December 18, 2017, involving major shareholders[95] - All directors have adhered to the securities trading code of conduct during the reporting period[96] - The company experienced delays in publishing its annual results announcement and annual report for the year ended March 31, 2021, which have since been remedied[98] - The audited annual results announcement and annual report were published on July 30, 2021, and August 1, 2021, respectively[98] - The company emphasizes that the delay in publishing the annual results was an unfortunate and isolated incident[98] Business Operations and Strategy - The company continues to focus on expanding its wholesale and retail operations in the wine and alcoholic beverage market[28] - The financial report indicates that the company is committed to maintaining operational efficiency despite rising administrative costs[28] - The group did not have any individual customer contributing over 10% of total revenue during the reporting period[43] - The company is actively seeking to acquire suitable properties for its own warehouses to increase product storage capacity and has successfully implemented an e-commerce platform and developed an online auction platform to enhance sales of high-end wines[72] - The company has expanded its business presence by establishing an office in Shanghai, China, to promote its products through various marketing and sales activities[72] Stock Options and Securities - The company has a stock option plan adopted on December 18, 2017, which complies with GEM listing rules[90] - No stock options have been granted, exercised, canceled, or lapsed since the adoption of the stock option plan[91] - The company and its subsidiaries did not purchase, sell, or redeem any listed securities during the reporting period[93]

Financial Performance - Revenue increased by approximately 7.2% from approximately HK$279.4 million for the year ended March 31, 2020, to approximately HK$299.6 million for the year ended March 31, 2021[25]. - Profit and total comprehensive income for the year ended March 31, 2021, amounted to approximately HK$27.6 million, representing a substantial increase of over two times compared to HK$11.9 million in 2020[25]. - The increase in revenue was mainly due to sales from an online auction conducted by the Group in early 2021[25]. - Gross profit increased by approximately 30.4% from approximately HK$55.3 million for the year ended March 31, 2020, to approximately HK$72.1 million for the year ended March 31, 2021[46]. - The overall gross profit margin improved from approximately 19.8% for the year ended March 31, 2020, to approximately 24.1% for the year ended March 31, 2021[47]. - Other income rose from approximately HK$597,000 for the year ended March 31, 2020, to approximately HK$3.1 million for the year ended March 31, 2021, mainly due to anti-epidemic subsidies from the Hong Kong Government[48]. - Profit attributable to owners of the Company amounted to approximately HK$27.6 million, up from approximately HK$11.9 million in 2020[59]. Operational Efficiency and Expansion - The Group is strengthening warehouse storage capability and operational efficiency by leasing new warehouses and acquiring a professional warehouse management system[26]. - The Group aims to strengthen its leading position in the Hong Kong wine industry while seeking expansion opportunities in different countries worldwide[34]. - The Group has established a retail store in a prime location in Kowloon at the end of 2018 and is considering a third retail store based on market conditions[29]. - The Group has capitalized on the online auction trend to boost sales, particularly for highly sought-after Premium Collectible Red Wine[47]. - The planned use of net proceeds includes strengthening warehouse storage capability with an allocation of HK$38.9 million, which is expected to be completed by March 31, 2022[112]. - The Group plans to expand its retail network in Hong Kong through the establishment of a new retail store and a flagship store, with an allocation of HK$23.3 million, expected to be completed by March 31, 2022[112]. - The Group aims to increase storage capacity for its products by acquiring a self-owned warehouse[124]. Impact of COVID-19 - The Board expects the global economy and retail environment to remain uncertain and full of challenges due to the COVID-19 pandemic[26]. - The Group will continue to evaluate the impact of the COVID-19 outbreak on its financial position and operating results[26]. - Selling and distribution expenses decreased from approximately HK$17.7 million to approximately HK$15.1 million, attributed to rental concessions during the COVID-19 outbreak[55]. - Administrative expenses increased from approximately HK$17.2 million to approximately HK$20.2 million, mainly due to higher legal fees and salaries[56]. - The Group is carefully evaluating the impact of COVID-19 on the retail environment before proceeding with the opening of a third retail store[116]. Corporate Governance and Management - The company has a diverse board with members holding significant qualifications and experience in finance and law[167]. - The independent non-executive directors contribute to the company's governance and strategic direction through various committees[170]. - The company emphasizes the importance of experienced leadership in navigating the financial landscape and regulatory environment[169]. - The company is committed to maintaining high standards of corporate governance to safeguard shareholder interests and ensure transparency and accountability[200]. - The company complied with all code provisions in the Corporate Governance Code during the year, reflecting its commitment to corporate governance standards[200]. Employee and Management Team - As of March 31, 2021, the total number of employees increased to 52 from 45 in the previous year, with total employee benefit expenses rising from approximately HK$13.1 million to approximately HK$13.7 million[95]. - The Group's total employee benefit expenses for the year ended March 31, 2021, included Directors' emoluments, amounting to approximately HK$13.7 million[95]. - The management team's diverse backgrounds contribute to the Group's strategic direction and innovation in the market[176]. - The company has demonstrated a commitment to continuous professional development among its management team, which is essential for maintaining competitive advantage[187]. Risk Management - The Group's exposure to foreign currency risk is significant due to foreign currency denominated trust receipt loans for wine product purchases, which may impact operational results and financial position[88]. - The Group has ceased holding any pledged bank deposits in foreign currencies since October 2016 to manage foreign currency exchange risk exposure[89]. - The Group has established a tracking and reporting system to monitor foreign currency exchange rate fluctuations and adjust procurement strategies accordingly[91].

Financial Performance - For the nine months ended December 31, 2020, the company reported total revenue of HKD 204,341,000, a decrease of 7.2% compared to HKD 220,123,000 for the same period in 2019[5] - Gross profit for the nine months was HKD 49,342,000, representing an increase of 9.5% from HKD 44,965,000 in the previous year[5] - The company achieved a profit before tax of HKD 20,785,000 for the nine months, up 37.5% from HKD 15,161,000 in the same period last year[5] - The total comprehensive income for the period was HKD 16,918,000, compared to HKD 12,475,000 for the same period in 2019, reflecting a year-on-year increase of 35.5%[5] - Basic earnings per share for the nine months was HKD 4.28, an increase from HKD 3.12 in the previous year, marking a growth of 37.3%[5] - The company reported a net profit attributable to owners of the company of HKD 17,118,000 for the nine months, compared to HKD 12,478,000 in the same period last year, indicating a growth of 37.5%[5] Cost Management - The company’s financing costs decreased to HKD 4,204,000 for the nine months, down from HKD 6,599,000 in the previous year, a reduction of 36.3%[5] - The company’s sales and distribution expenses for the nine months were HKD 11,547,000, a decrease from HKD 13,113,000 in the previous year, reflecting a reduction of 12%[5] - Cost of sales decreased by approximately 11.5% from about HKD 175.2 million to about HKD 155.0 million for the nine months ended December 31, 2020, directly related to the decrease in revenue[45] - Sales and distribution expenses decreased from about HKD 13.1 million to approximately HKD 11.5 million, primarily due to rent reductions related to COVID-19[49] Other Income and Expenses - Other income for the nine months was HKD 2,567,000, compared to HKD 505,000 in the same period last year, showing a significant increase[5] - The group’s interest income from banks for the nine months ended December 31, 2020, was HKD 1,111,000, compared to HKD 1,322,000 for the same period in 2019[33] - The group’s net foreign exchange loss for the nine months ended December 31, 2020, was HKD 3,492,000, compared to a gain of HKD 1,535,000 in the same period of 2019[33] COVID-19 Impact - Revenue decreased by approximately 7.2% from about HKD 220.1 million to about HKD 204.3 million for the nine months ended December 31, 2020, primarily due to the COVID-19 pandemic[44] - The group recognized a reduction in lease payments amounting to HKD 394,500 due to COVID-19 related rent concessions, which were accounted for as variable lease payments[17] - The group has implemented a practical expedient for lease accounting related to COVID-19, allowing for the exclusion of certain rent concessions from lease modification accounting[17] - Other income increased from about HKD 505,000 to approximately HKD 2.6 million, mainly due to government subsidies during the COVID-19 pandemic[47] Corporate Governance - The company confirmed that all information in the report is accurate and complete, with no misleading or fraudulent elements[3] - The audit committee has reviewed the group's unaudited consolidated results for the period and believes they comply with applicable accounting standards and GEM listing rules[83] - The company has adopted a code of conduct for securities transactions by directors, confirming compliance by all directors during the period[80] - The company is committed to high levels of corporate governance to protect shareholder interests and enhance company value[82] Shareholder Information - The company has a total issued share capital of 400,000,000 shares as of December 31, 2020[60] - Major shareholders include Wang Zilu with a 70% stake and Shirz Limited holding 42%[67][68] - The controlling shareholder holds a total beneficial interest of 70% in the company as of the report date[71] - The company's major shareholder holds a total beneficial interest of 70% as of the report date[73] Strategic Initiatives - The company focuses on premium wines priced at HKD 1,000 or above, with a diverse product portfolio including wines, spirits, and accessories[42] - The company believes it can seize opportunities in the wine industry due to increasing consumer interest and the affordability of wine[43] - The company has successfully launched an e-commerce platform to enhance sales of high-end wines priced at HKD 10,000 or above per bottle[56] - The company established an office in Shanghai to expand its business footprint and promote its products through various marketing activities[56] - The company is actively seeking suitable properties for acquisition to increase its storage capacity for products[56] Financing and Capital Management - The company has secured a financing facility with a maximum amount of HKD 110,000,000 for credit and overdraft financing[70] - The financing letter B includes a credit facility with a maximum amount of HKD 30,000,000 and a company credit card with a limit of HKD 100,000[72] - No dividends were declared or proposed for the current period, consistent with the previous year[40] - No stock options have been granted, exercised, cancelled, or lapsed since the adoption of the stock option plan, and there are no unexercised stock options at the end of the period[82] - The company has not purchased, sold, or redeemed any of its listed securities during the period and up to the report date[77] Market Position - The group has a single operating segment focused on the sale and distribution of alcoholic beverages in Hong Kong, with no significant revenue derived from other regions[18] - There were no individual customers contributing more than 10% of the total revenue during the nine months ended December 31, 2020[21] - The group adopted revised Hong Kong Financial Reporting Standards, which did not have any impact on its financial position or performance for the period[16]

Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 114,176,000, a decrease of 16.1% compared to HKD 136,115,000 for the same period in 2019[7]. - Gross profit for the same period was HKD 22,603,000, down 15.4% from HKD 26,684,000 in 2019[9]. - The net profit attributable to owners for the six months was HKD 4,522,000, a decrease of 24.1% compared to HKD 5,969,000 in the previous year[19]. - Basic and diluted earnings per share for the six months were HKD 1.13, down from HKD 1.49 in 2019, representing a decline of 24.2%[22]. - Total comprehensive income for the period was HKD 4,476,000, a decrease of 25.0% from HKD 5,969,000 in the same period last year[17]. - Operating cash flow for the six months was HKD 11,895,000, down from HKD 15,995,000 in 2019, indicating a decline of 25.8%[30]. - The group reported a revenue of HKD 53,856,000 for the three months ended September 30, 2020, a decrease of 17.8% compared to HKD 65,486,000 for the same period in 2019[50][58]. - Revenue decreased by approximately 16.1% from about HKD 136.1 million to about HKD 114.2 million due to the COVID-19 pandemic[72]. - Cost of sales decreased by approximately 16.3% from about HKD 109.4 million to about HKD 91.6 million, directly related to the decrease in revenue[73]. - Gross profit decreased by approximately 15.3% from about HKD 26.7 million to about HKD 22.6 million, with gross profit margins remaining stable at approximately 19.6% and 19.8%[74]. - The company recorded a profit attributable to owners of approximately HKD 4.5 million, down from about HKD 6.0 million in the previous period[82]. Cash Flow and Assets - Total assets as of September 30, 2020, were HKD 207,771,000, compared to HKD 205,124,000 as of March 31, 2020, showing a slight increase of 1.3%[23]. - Current liabilities amounted to HKD 231,022,000, a decrease from HKD 232,513,000 as of March 31, 2020, reflecting a reduction of 0.6%[23]. - The operating cash flow before changes in working capital was a net outflow of HKD 67,847 thousand[31]. - The net cash used in investing activities was HKD 2,698 thousand, compared to HKD 4,271 thousand in the previous year[32]. - The net cash used in financing activities was HKD 81,055 thousand, a significant increase from HKD 151,004 thousand in the prior year[33]. - The cash and cash equivalents at the end of the period increased to HKD 26,515 thousand, compared to a decrease of HKD 43,368 thousand in the previous year[33]. - The company reported a decrease in trade receivables, which positively impacted cash flow[31]. Financing and Costs - The company reported a financing cost of HKD 2,900,000 for the six months, down 31.9% from HKD 4,271,000 in the previous year[14]. - The financing costs for the six months ended September 30, 2020, were HKD 2,900,000, a decrease of 31.9% from HKD 4,271,000 in the same period of 2019[58][60]. - Administrative expenses decreased from about HKD 8.5 million to about HKD 7.1 million, mainly due to reduced legal and professional fees[79]. - Financing costs decreased from about HKD 4.3 million to about HKD 2.9 million, attributed to a reduction in trust receipt loans[80]. Market and Operational Strategy - The company is focused on expanding its market presence in the wine and alcoholic beverage sector[35]. - The group has undergone a restructuring, enhancing its operational efficiency and market positioning[38]. - The group has rented a new warehouse in Kwai Chung to enhance storage capacity and is actively seeking suitable properties for acquisition as its own warehouse[100]. - The group opened a retail store in Tsim Sha Tsui in December 2018 and is considering the establishment of a third retail store, subject to the impact of COVID-19 on the retail environment[100]. - The estimated use of net proceeds includes HKD 38.9 million for enhancing warehouse storage and HKD 23.3 million for establishing new retail stores, with a timeline for completion by March 31, 2021[103]. - The group is currently negotiating the acquisition of a property in Kwun Tong, as property prices in Hong Kong have shown a moderate decline since their peak in 2019 due to COVID-19[104]. Corporate Governance and Compliance - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards, ensuring compliance and transparency[36]. - The company has adopted new accounting policies that do not significantly impact its financial position or performance[40]. - The company is committed to high-level corporate governance and has adopted the principles and code provisions of the GEM Listing Rules Appendix 15[130]. - The Audit Committee, established on December 18, 2017, consists of three independent non-executive directors and is responsible for reviewing the financial reporting process and internal control systems[131]. - The Audit Committee has reviewed the unaudited condensed consolidated results for the period and found them to comply with applicable accounting standards and GEM Listing Rules[131]. Shareholding and Equity - As of September 30, 2020, the total issued shares of the company were 400,000,000[110]. - Shirz Limited holds 168,000,000 shares, representing 42% of the total issued shares[113]. - Sunshine Consultancy holds 112,000,000 shares, representing 28% of the total issued shares[114]. - The controlling shareholder, Mr. Ding Zhiwei, has a total beneficial interest of 70% in the company[119]. - The controlling shareholder is required to maintain at least 50% beneficial interest as per the financing agreements[120]. - No stock options have been granted, exercised, canceled, or lapsed since the adoption of the stock option plan in December 2017[123]. - The company and its subsidiaries did not purchase, sell, or redeem any listed securities during the reporting period[125]. - The company has confirmed compliance with the non-competition agreement established on December 18, 2017[127]. - All directors have adhered to the securities trading code of conduct during the reporting period[128].

Financial Performance - Revenue for the three months ended June 30, 2020, was HKD 60,320,000, a decrease of 14.5% compared to HKD 70,629,000 for the same period in 2019[5] - Gross profit for the same period was HKD 11,117,000, down 20.1% from HKD 13,922,000 year-on-year[5] - The net profit attributable to owners for the period was HKD 2,556,000, a decline of 16.2% compared to HKD 3,049,000 in the previous year[5] - Basic and diluted earnings per share were HKD 0.63, down from HKD 0.76 in the same quarter of 2019[5] - The company's profit and total comprehensive income decreased by approximately 16.2% to about HKD 2.6 million for the three months ended June 30, 2020, compared to HKD 3.0 million for the same period in 2019[80] - Revenue decreased by approximately 14.6% to about HKD 60.3 million for the three months ended June 30, 2020, down from approximately HKD 70.6 million in the same period of 2019, primarily due to the COVID-19 pandemic[81] - Gross profit decreased by approximately 20.1% to about HKD 11.1 million for the three months ended June 30, 2020, down from approximately HKD 13.9 million in the same period of 2019[83] Cost and Expenses - The cost of sales decreased to HKD 49,203,000 from HKD 56,707,000, reflecting a reduction of 13.3%[5] - Administrative expenses were reduced to HKD 3,433,000 from HKD 4,307,000, a decrease of 20.3%[5] - Selling and distribution expenses decreased from approximately HKD 4.2 million to about HKD 3.6 million, primarily due to rent reductions granted by retail landlords during the COVID-19 pandemic[86] - Administrative expenses decreased from approximately HKD 4.3 million to about HKD 3.4 million, mainly due to a reduction in legal and professional fees[87] - Financing costs decreased to HKD 1,753,000 from HKD 2,422,000, representing a reduction of 27.7%[5] - Financing costs decreased from approximately HKD 2.4 million to about HKD 1.8 million, primarily due to a reduction in trust receipt loans during the period[88] Other Income and Financial Adjustments - Other income increased to HKD 585,000 from HKD 128,000, showing a significant growth of 357.8%[5] - Other income for the three months ended June 30, 2020, included bank interest income of HKD 76,000 and net foreign exchange gains of HKD 519,000[66][67] - Other income increased from approximately HKD 128,000 in the previous year to about HKD 585,000 in the current period, mainly due to government subsidies related to COVID-19[84] Corporate Governance and Compliance - The company is committed to high levels of corporate governance, adhering to the GEM listing rules and corporate governance code[123] - The audit committee, established on December 18, 2017, consists of three independent non-executive directors and has reviewed the unaudited consolidated performance for the period[124] - The audit committee believes that the financial performance complies with applicable accounting standards and GEM listing rules[124] - The company confirmed compliance with the non-competition agreement established on December 18, 2017[121] - All directors have adhered to the securities trading code of conduct during the reporting period[122] Market Strategy and Future Outlook - The company is focused on expanding its market presence and enhancing its product offerings in the wine sector[29] - The company plans to continue monitoring the impact of COVID-19 on its financial condition and operational performance while adjusting its business strategies accordingly[94] Shareholder Information - As of June 30, 2020, the company had a total of 400,000,000 shares issued[99] - Shirz Limited holds 168,000,000 shares, representing 42% of the company's issued share capital[102] - Sunshine Consultancy holds 112,000,000 shares, representing 28% of the company's issued share capital[103] - The controlling shareholder holds a total beneficial interest of 70% in the company[110] Financing and Securities - The company entered into a financing agreement with a maximum financing amount of HKD 110,000,000 and HKD 3,000,000 for credit and overdraft facilities, respectively[109] - No stock options have been granted, exercised, canceled, or lapsed since the adoption of the stock option plan on December 18, 2017[116] - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[117] Financial Reporting Standards - The group applied the new Hong Kong Financial Reporting Standards and amendments starting from April 1, 2020, with no significant impact on financial performance or disclosures[40] - The group recognized lease liabilities of HKD 4,412,000 as of April 1, 2019, with current liabilities of HKD 2,211,000 and non-current liabilities of HKD 2,201,000[46][47] - The weighted average incremental borrowing rate applied was 4.7% for the recognition of lease liabilities[48] - The group recognized right-of-use assets of HKD 4,109,000 related to operating leases upon the application of HKFRS 16[51] - The group did not reassess contracts that were not previously identified as leases upon the initial application of HKFRS 16[42] Publication and Location - The report will be published on the GEM website and the company's website for at least seven days from the publication date[125] - The company is located at 26/Floor, AIA Financial Centre, 712 Prince Edward Road East, San Po Kong, Kowloon, Hong Kong[127]

Financial Performance - The Group's revenue decreased by approximately 16.6% from approximately HK$335.1 million for the year ended March 31, 2019, to approximately HK$279.4 million for the year ended March 31, 2020[22]. - Profit and total comprehensive income for the year ended March 31, 2020, amounted to approximately HK$11.9 million, representing a substantial decrease of approximately 63.5% compared to HK$32.8 million in 2019[22]. - The decrease in revenue was primarily caused by the outbreak of the COVID-19 pandemic[22]. - The decrease in profit was also attributed to a reduction in foreign exchange gains due to currency fluctuations, particularly the depreciation of EURO and GBP[22]. - The Group's gross profit decreased by approximately 20.8% from approximately HK$69.8 million for the year ended March 31, 2019, to approximately HK$55.3 million for the year ended March 31, 2020[42]. - The overall gross profit margin remained relatively stable at approximately 20.8% for the year ended March 31, 2019, and 19.8% for the year ended March 31, 2020[42]. - The cost of sales decreased by approximately 15.5% from approximately HK$265.3 million for the year ended March 31, 2019, to approximately HK$224.1 million for the year ended March 31, 2020[37]. - Other income increased from approximately HK$77,000 for the year ended March 31, 2019, to approximately HK$597,000 for the year ended March 31, 2020[43]. - The Group recorded net exchange gains of approximately HK$2.9 million for the year ended March 31, 2020, down from net gains of approximately HK$7.7 million for the year ended March 31, 2019[45]. - Selling and distribution expenses rose from approximately HK$14.3 million to approximately HK$17.7 million, attributed to higher rent, depreciation, and salaries[51]. - Administrative expenses increased from approximately HK$16.2 million to approximately HK$17.2 million, mainly due to higher salaries and allowances for directors and administrative staff[52]. - Finance costs increased by approximately 39.4% from approximately HK$6.1 million to approximately HK$8.5 million, primarily due to increased trust receipt loans[53]. - Income tax expense decreased by approximately 66.2% from approximately HK$8.4 million to approximately HK$2.8 million, due to a decrease in estimated assessable profit[54]. - Profit attributable to owners of the Company decreased to approximately HK$11.9 million from approximately HK$32.8 million[55]. Business Strategy and Operations - The Group focuses on premium collectible red wine, with selling prices at or above HK$1,000 per bottle[21]. - The Group operates primarily in the wholesale and retail of a wide spectrum of wine products and other alcoholic beverages in Hong Kong[21]. - The Group's business strategy includes a focus on premium products to mitigate market volatility risks[21]. - The Group is strengthening warehouse storage capability and operational efficiency by leasing new warehouses in Hong Kong and acquiring a professional warehouse management system[26]. - The Group plans to establish a third retail shop while considering the retail environment, location, and retail expenses[26]. - The Group aims to enrich its product portfolio by collaborating with wineries, particularly from French regions, to enhance market selection[29]. - The Board expects the global economy and retail environment to remain uncertain and challenging due to the ongoing impact of the COVID-19 pandemic[26]. - The Group's strategic development includes evaluating potential acquisitions and expansions based on market conditions[127]. - The Group continues to monitor the impact of COVID-19 on its financial position and operating results[128]. Corporate Governance and Compliance - The Group's directors confirm the accuracy and completeness of the information provided in the report[5]. - The Group has complied with all relevant laws and regulations in Hong Kong during the year, ensuring regulatory compliance[94]. - The company has a strong focus on corporate governance and internal control, as evidenced by the leadership roles held by its directors in various organizations[144]. - The company emphasizes the importance of compliance and governance, as indicated by the roles of its compliance officer and independent directors[140][153]. - The Company complied with all code provisions in the Corporate Governance Code during the year ended March 31, 2020[199]. - The Board is responsible for formulating strategic objectives and overseeing significant operational and financial matters, including mergers and acquisitions[200]. - The Company is committed to maintaining high standards of corporate governance to safeguard the interests of shareholders[199]. - The management team is delegated the implementation and execution of Board policies and strategies[200]. - The Company has a risk management control system in place to ensure effective governance[200]. Human Resources - The Group's total employee benefit expenses increased from approximately HK$9.6 million in 2019 to approximately HK$13.1 million in 2020, reflecting a growth of about 36.5%[92]. - As of March 31, 2020, the total number of employees decreased to 45 from 47 in the previous year[92]. Market and Financial Outlook - The Board anticipates ongoing challenges in the global economy and retail environment due to the COVID-19 pandemic, prompting a prudent approach to business strategies[128]. - The Group's exposure to foreign currency risk is significant due to foreign currency denominated trust receipt loans for wine product purchases, which may impact operational results and financial position[85]. - The Group has established a tracking and reporting system to monitor foreign currency exchange rate fluctuations effectively[88]. - The Group's management team is responsible for implementing internal control measures on foreign currency risk, including monitoring cash flow forecasts and actual receivables[87]. Investments and Acquisitions - There were no significant investments or material acquisitions during the year[74][75]. - The Group is currently in the process of identifying a suitable property to enhance warehouse storage capability, delaying the utilization of net proceeds to 2020 due to rising property prices[108]. - The Group's total outstanding loans from 兴龙 as of March 31, 2020, amounted to HK$13,015,000, a decrease from HK$13,794,000 in 2019[83]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $200 million allocated for potential deals[164].