STOCK CODE : 1705...6 B & S International Holdings Ltd. MANAGEMENT DISCUSSION AND ANALYSIS For the year ended 31 March 2018, turnover of the Group’s business totalled approximately

B & S International Holdings Ltd.

(Incorporated in the Cayman Islands with limited liability)

STOCK CODE : 1705

ANNUAL REPORT2018

Annual Report 2018 1

MANAGEMENT DISCUSSION AND ANALYSIS

ContentsFinancial Highlights 2

Corporate Information 3

Chairman’s Statement 4

Management Discussion and Analysis 6

Biographies Details of Directors and Senior Management

13

Corporate Governance Report 16

Environmental, Social and Governance Report

23

Report of the Directors 36

Independent Auditor’s Report 46

Consolidated Statement of Comprehensive Income

51

Consolidated Statement of Financial Position

52

Consolidated Statement of Changes in Equity

54

Consolidated Statement of Cash Flows 55

Notes to the Consolidated Financial Statements

56

Financial Information Summary 112

B & S International Holdings Ltd.2

FINANCIALHIGHLIGHTS

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2018

REVENUE ANDADJUSTED

NET PROFIT (note 2)

HK

$ m

illio

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Revenue Average same-store sales

SAME-STORE SALESPERFORMANCE —TENREN (天仁茗茶)

(HK$ million)

No. of same-store: 17 No. of same-store: 24

Year ended31 March

Average same-store sales growth rateAdjusted net pro�t

Year ended31 March

REVENUEBREAKDOWN

Retail Business

DistributionBusiness

2016 2017 2017 20182015 2016 2017 2018

• RevenuereachedHK$452.1million for theyearended31March2018 (“FY2018”), representingan increaseof22.9%ascomparedwithlastyear

• Samestoresalesgrowth(“SSSG”)(note 1)fortheTenRenretailstoreshaverecordeddouble-digitgrowthat13.7%

• Adjustednetprofit(note 2)increasedby23.0%toHK$34.8million

• ProposedafinaldividendofHK3centspershare,representingadividendpayoutratioofapproximately35.6%ontheadjustedprofitattributabletoownersoftheCompany(note 3)

Year ended 31 March2018 2017 Increase/

(decrease)HK$ million HK$million

Revenue 452.1 368.0 22.9%Gross Profit 115.8 91.2 27.0%Net profit 15.2 28.3 (46.3%)Adjustednetprofit(note 2) 34.8 28.3 23.0%Basicearningspershare(HKcents) 4.62 9.12 (49.3%)

Note 1: SSSG represented a comparison of average revenue derived from outlets that were in operation throughout the financial periods compared.

Note 2: Adjustednetprofitisderivedfromnetprofitexcludingthenon-recurringlistingexpensesofapproximatelyHK$19.6millionincurredduringFY2018.

Note 3: AdjustedprofitattributabletoownersoftheCompanyofapproximatelyHK$33.7millionisderivedfromprofitattributabletoownersof theCompanyofapproximatelyHK$14.1millionexcludingthenon-recurring listingexpensesofapproximatelyHK$19.6millionincurredduringFY2018.


CORPORATE INFORMATION

HEADQUARTERS AND PRINCIPAL PLACE OF BUSINESS IN HONG KONGUnit911,9thFloorTaiYauBuilding,181JohnstonRoad,WanChai,HongKong

PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE IN THE CAYMAN ISLANDSConyersTrustCompany(Cayman)LimitedCricketSquare,HutchinsDriveP.O.Box2681GrandCaymanKY1-1111Cayman Islands

HONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICEUnion Registrars LimitedSuites3301–04,33/F.,TwoChinachemExchangeSquare,338King’sRoad,NorthPoint,HongKong

INDEPENDENT AUDITORPricewaterhouseCoopers22/F,Prince’sBuilding,Central,HongKong

LEGAL ADVISERLocke Lord21/F, Bank of China Tower, 1 Garden Road, Central,HongKong

COMPLIANCE ADVISERLego Corporate Finance LimitedRoom1601,16/F,ChinaBuilding,29Queen‘sRoadCentral,HongKong

PRINCIPAL BANKERSThe Hongkong and Shanghai Banking Corporation LimitedLevel9,HSBCMainBuilding,1Queen’sRoadCentral,HongKong

Hang Seng Bank Limited83DesVoeusRoad,Central,HongKong

STOCK CODE1705

COMPANY’S WEBSITEwww.bandshk.com

PLACE OF INCORPORATIONCayman Islands

BOARD OF DIRECTORSExecutive Directors:

Mr.ChanKamChuenAndrew (Chief Executive Officer & Chairman)Mr.ChanSiuCheungStephenMr.ChauWingKongWilliamMs.TinHauLingJanny

Independent Non-executive Directors:

Mr.YuKaHoBernardMr.SeeHungYanPeterMr.ChungKwokMoJohn

COMPANY SECRETARYMr.TangKwokHay(FCPA, FRM)

AUTHORISED REPRESENTATIVESMr.ChanKamChuenAndrewMr.TangKwokHay(FCPA, FRM)

AUDIT COMMITTEEMr.ChungKwokMoJohn(Chairman)Mr.YuKaHoBernardMr.SeeHungYanPeter

REMUNERATION COMMITTEEMr.YuKaHoBernard(Chairman)Mr.SeeHungYanPeterMr.ChungKwokMoJohn

NOMINATION COMMITTEEMr.SeeHungYanPeter(Chairman)Mr.YuKaHoBernardMr.ChungKwokMoJohn

REGISTERED OFFICECricketSquare,HutchinsDriveP.O.Box2681GrandCaymanKY1-1111Cayman Islands


CHAIRMAN’S STATEMENT

Dear Shareholders,

Onbehalfoftheboard(the“Board”)ofdirectors(the“Directors”)ofB&SInternationalHoldingsLtd. (the“Company”,togetherwith itssubsidiaries,the“Group”), IampleasedtopresenttheannualreportoftheCompanyforthefinancialyearended31March2018(“FY2018”).

REVIEWFY2018markedasignificantyearfortheGroup’shistory.Theshares(the“Shares”)oftheCompanyweresuccessfullylistedontheMainBoardof theStockExchangeon14March2018.The listingstatusenablestheCompanytogainaccesstooneoftheworld’sbiggestcapitalmarketswhichprovidesmorefinancingchannelsfor futurecapitalneeds.The listing has also enhanced the Group’s reputation and brand awareness, which in turn helps maintaining the business relationshipwiththeexistingnetworkofsuppliersandcustomersandexploringpotentialbusinessopportunitieswithnewsuppliersandcustomers.

TheGroupisawell-establishedfoodandbeveragecompanywithover28yearsofoperatinghistoryinHongKong.TheGroupisprincipallyengagedintwobusinesssegments,namely:(i)thedistributionbusiness,and(ii)theretailbusiness.


CHAIRMAN’S STATEMENT

For the distribution business, it distributes and markets a diversified portfolio of overseas branded food and beverage productsthroughitssupplychainsolutionstooverseasbrandownersandlocalretailers.Theseproductsincludesweetsand candies, biscuits, cakes and pastries, instant drink powders, dried meat products, tea leaves, pasta, fresh eggs and condiments,etc.,whicharesourced fromJapan,Taiwan,Malaysia,Argentina, thePeople’sRepublicofChina (the“PRC”),TurkeyandtheUnitedKingdom,etc.TheGroupwasabletoofferatotalofapproximately7,000SKUsoffoodandbeverageproductsfromover100brands,including“UHA(味覺糖)”and“HsinTungYang(新東陽)”,whicharewidelysoldinsupermarketsandconveniencestores.

For the retail business, the Group is licenced to set up and self-operate retail outlets for a few overseas food and beveragebrandsinHongKong.Asat31March2018,itsetupatotalof43self-operatedretailoutlets.Itwaslicencedbyseveralbrandowners,including“TenRen(天仁茗茶)”and“UncleTetsu(徹思叔叔)”.Tobroadenthebrandportfolio,theGroupsuccessfullyintroducedaBritishchocolatebrand“HotelChocolat”,andaJapaneseramenbrandoriginatedinTaiwan“JiuTangWu(九湯屋)”.TheGrouphasstayedinnovativeinfoodretail,andbroughtsurprisestolocalcustomers.

ForFY2018,benefitingfrombuoyantinboundtourismandstronglocalconsumersentiment,thedomesticretailmarketshoweddefinitesignsofrecovery.AccordingtotheMonthlySurveyofRetailSales(MRS)fromtheCensusandStatisticsDepartment,thevalueoftotalretailsalesinMarch2018,provisionallyestimatedatHK$39.8billion,increasedby11.4%overthesamemonth in2017.Forthefirstquarterof2018, itwasprovisionallyestimatedthat thevalueof total retailsalesincreasedby14.3%overthesameperiodin2017.TheGrouphasmadetimelyandstrategicadjustmentsinordertoenhanceitscompetitivenessandmarketshare.

PROSPECTSMoving forward, theGroupwillcontinue to increase itsmarketshare inHongKongandwillmaintain itsexpansionmomentumwithaprudentandyetoptimisticapproach.TheGroupwillstrivetointroducemorebrandsandproductsofhighqualityfromaroundtheworldtodiversifyitsportfolioandexpanditscustomerbase,whilemaintaining/improvingthequalityofitsexistingbrandsandproducts.

APPRECIATIONLastly,onbehalfoftheBoard,Iwishtoextendmysincereappreciationtothemanagementteamandouremployeesfortheirunremittingefforts,andtoexpressmygratitudetoallshareholders,investors,customersandbusinesspartnersfortheirsteadfastsupport.WewillcontinuetograspeveryopportunityandendeavortostriveforthegreatestinterestfortheshareholdersandtheCompany.

Chan Kam Chuen AndrewChairman, Chief Executive Officer & Executive DirectorHongKong,26June2018



Fortheyearended31March2018,turnoveroftheGroup’sbusinesstotalledapproximatelyHK$452.1million (2017:approximatelyHK$368.0million), representingan increaseofapproximately22.9%,whichwasmainlyattributabletoadditionalsalesbroughtbytheretailbusiness.Grossprofit increasedfromapproximatelyHK$91.2million in thepreviousyear toapproximatelyHK$115.8millioninFY2018,representinganincreaseofapproximatelyHK$24.6millionwhichisequivalenttoanincreaseofapproximately27.0%.ProfitattributabletoownersoftheCompany forFY2018wasapproximatelyHK$14.1million (2017:approximatelyHK$27.4million),representingadecreaseofapproximately48.5%whichwasmainlyattributabletothenon-recurringlistingexpensesincurredduringFY2018.

TheGroupisawell-establishedfoodandbeveragecompanywithover28yearsofoperatinghistoryinHongKong. Ithastwobusinesssegments,namely (i) thedistributionbusinessand, (ii) theretailbusiness.

DISTRIBUTION BUSINESSFor distribution business, we distribute and market a diversified portfolio of overseas branded food and beverage products to mainly retailers, such as supermarket, pharmacy, convenience store and department store chains in Hong Kong.WeprovidesupplychainsolutionsfromimportingtheproductsfromtheoverseasbrandownerstomarketingtheproductstoretailsinHongKong.Ourserviceinclude(i)arranginginboundlogistics;(ii)relabelingtheproductstocomplywiththerelevantHongKongfoodsafetyandlabellinglaws;(iii)repackagingtheproductstosuittheneedsoftheretailersorconsumers;and (iv) formulatingmarketingandsalesstrategies, includingadvisingon retailprices,organizingpromotion campaigns as well as designing and producing customised display racks or stands to be placed at the customers’pointsofsales.

TheGroupwasabletoofferatotalofapproximately7,000SKUsoffoodandbeverageproductsfromover100brands,including“UHA(味覺糖)”and“HsinTungYang(新東陽)” whichareregardedaspopularitemsbythemarket.

InFY2018,therevenuefromthedistributionbusiness increasedtoapproximatelyHK$255.4million (2017:HK$243.1million),representinganincreaseofapproximatelyHK$12.3million,whichcontributedapproximately56.5%ofthetotalrevenue.

RETAIL BUSINESSWe principally prepare and/or sell overseas branded food and beverage products licensed to us at our self-operatedretailoutletsinHongKong.Asat31March2018,wehadsetup43self-operatedretailoutlets and the details of the outlets are set out below:

Total Number of StoresAs at 31 March

2018 2017 2016

TenRen (天仁茗茶) 33 24 17

JiuTangWu(九湯屋) 2 – –

Uncle Tetsu (徹思叔叔) 3 2 2Hotel Chocolat 3 – –Others 2 2 1

Total 43 28 20

Premium Green Tea Soft Ice Cream

UHA(味覺糖)Confectionery Products



DuringFY2018,thestrengtheningofconsumer’sspendingpowerdrovetheexpandingmomentumoftheGroup’sretailnetwork.ThenumberofTenRenretailoutletshas increasedby9stores, from24storesasat31March2017to33storesasat31March2018.Our“TenRen(天仁茗茶)”retailnetworkspansacrossHongKongIsland,KowloonandtheNewTerritoriesinHongKong.Thefollowinggraphshowsthegeographicaldistributionofour“TenRen(天仁茗茶)”retailnetworkinHongKongasat31March2018.

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TenRen (天仁茗茶)Retail Outlets

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InFY2018,theGrouphadalsoopenedoneoutletfor“UncleTetsu(徹思叔叔)”andintroducedtwonewretailbrandstoHongKong,oneisaBritishchocolatebrand,“HotelChocolat”,andtheotherisaJapaneseramenbrandoriginatedinTaiwan,“JiuTangWu(九湯屋)”.Asat31March2018,therewere3retailoutletsfortheBritishchocolatebrandand2outletsfortheramenbrand.TherevenuefromtheretailbusinessincreasedtoapproximatelyHK$196.7millioninFY2018(2017:approximatelyHK$124.9million), representingan increaseofapproximatelyHK$71.8millionwhichcontributedapproximately43.5%ofthetotalrevenue.

Premium Green Tea Roll Cake

913King’sOolongTea Pancake



Same store sales performance

Thegrowthinrevenuefrom“TenRen(天仁茗茶)”retailoutletswasnotonlydrivenbytheexpansionofitsretailnetworkintermsofnumberofretailoutlets,butalsobytheGroup’sabilitytogrowitssaleswithintheexistingoutlets.Weevaluateourgrowthwithin theexistingoutletsbycalculatingtheaveragesame-storesalesgrowth,whichcomparesaveragerevenuederivedfromoutletsthatwereinoperationthroughoutthefinancialperiodscompared.Thefollowingtablesetsforththeaveragesame-storesalesperformanceofour“TenRen(天仁茗茶)”retailoutlets:

Year ended 31 March

2016 2017 2017 2018

Number of same-store 17 24Average same-store sales HK$4.2million HK$4.6million HK$4.6 million HK$5.3 millionAverage same-store sales growth rate 8.9% 13.7%

Average selling prices and volume

Theaveragesellingpriceofour“TenRen (天仁茗茶)”beverageproducts increasedslightlyduringFY2018primarilybecauseweraisedourprices in lightof inflationandrisingrawmaterialcostsandrentalexpenses.Theaveragedailysalesvolumeofthebeverageproducts increasedthroughoutFY2018mainlyduetothe increase inthenumberofourretailoutlets.Thefollowingtablesetsforththeaveragesellingpriceandaveragedailysalesvolumeofour“TenRen(天仁茗茶)”productsfortheyearsindicated:

Year ended 31 March

2017 2018

Average selling price (HK$) Beverage products (per cup) 20.3 20.8 Side products (per unit) (Note) 25.4 27.1

Average daily sales volume Beverage products (per cup) 13,200 21,400 Side products (per unit) (Note) 1,400 1,400

Note: Sideproductsincludetea-favouredice-cream,packagetealeaves,packagedsnacksandteawares.

INDUSTRY REVIEWTheHongKongeconomyexpandedatafasterpacein2017amidastrongerglobaleconomy.AccordingtothestatisticspublishedbytheHongKongCensusandStatisticsDepartment,thenominalgrossdomesticproductgrewby6.9%in2017,fasterthanthegrowthsin2012–2016rangingfrom3.9%to6.1%.

Inthedistributionsector,distributionbusinessoperatorsinHongKongcontinuetofacethechallengesincluding:

Increasing operating costs

Distributionbusinessesare facing increasingrentalcostsofwarehousesandretailpremises.Thishasrestricted theexpansionsofbusinessscaleand increasedoperationalcosts fordistributionbusinesses.Ontheotherhand,asthedistributionbusinessishighlylabourintensiveandservice-oriented,increasinglabourcostsintheimport/exporttrading,wholesalingandretailindustrieshavelaidpressuretothedistributionbusiness.



The ease of online retailing

Nowadays, consumers can access to almost all products and services via the internet, contributed by the online retailing andemergenceofvariouspaymentplatforms.Also,manyfoodandbeveragebrandsallowonlinepurchasesandofferfastdeliveryservice,providinggreatconvenience forcustomers.However, thissomehowcreatescompetition fortraditional brick-and-mortar retailers as customers can directly purchase online rather than buying from the franchised outletsofthesebrands.

Intheretailsector,retailbusinessoperatorsinHongKongcontinuetofaceanumberofchallenges,whichincludethefollowing:

Pressure from rental and labour costs

Thecostofoperatingadrinkservingestablishment inHongKong iscontinuously increasingdue to thesignificantincrease inmarketwages followedbythe further increaseofstatutoryminimumwage in2017andtheyear-on-yearincrease inaveragerentalpriceofprivateretailpremises.Therisingoperatingcosttranslates into intensifying financialburdentotheoperators.

New Market Entrants in the tea drinks serving industry

The competition within the tea drinks serving industry is increasingly fierce because of the relatively lower entry barrier comparingtootherindustries.DuringFY2018,therehasbeenagrowingamountofnewteabrands’presenceinHongKongwith limitedproductdifferentiation.Teadrinksoperatorswill thereforeneed tospendmoreeffortonproductofferingandmarketingtoattractconsumers.

PROSPECTSLookingforwardtoopportunitiesandchallengesin2018,theGroupwillcontinuetoadhereofproductsofhighqualityandthemulti-branddevelopmentstrategy.

Fortheretailbusiness,theGroupplanstoopennewoutletsandintroducenewretailsbrands.

ThemajorexpansionplanoftheGroup’sexistingretailbrandsaresetoutasfollows:

Total Number of StoresFor the year ending 31 March

2018 2019 2020

TenRen(天仁茗茶) 33 41 49

JiuTangWu(九湯屋) 2 7 12

For the distribution business, the Group intends to enlarge its brand/product portfolio to remain competitive in the market andensureawiderselectionfor itscustomers.TheGroupwill focusonoverseasbrands/productsthatsuit thetastesandpreferencesofHongKongconsumers.



FINANCIAL OVERVIEWRevenue

Fortheyearended31March2018,theGroup’srevenueamountedtoapproximatelyHK$452.1million,representinganincreaseofapproximately22.9%fromapproximatelyHK$368.0millionforthesameperiodin2017.Thestrengtheningofconsumer’sspendingpower inHongKonghasdriventheexpandingmomentumof theGroup’sretailnetwork.ThenumberofTenRenretailoutletshasincreasedby9storesduringFY2018,from24storesasat31March2017to33storesasat31March2018.The revenue fromthe retailbusiness increased toapproximatelyHK$196.7million inFY2018, representingan increaseofapproximatelyHK$71.8million (2017:approximatelyHK$124.9million)whichcontributedapproximately43.5%ofthetotalrevenueastheresultofopeningofnewretailoutletsduringFY2018.

Therevenue fromthedistributionbusiness increasedtoapproximatelyHK$255.4million inFY2018, representinganincreaseofapproximatelyHK$12.3million (2017:approximatelyHK$243.1million)whichcontributedapproximately56.5%ofthetotalrevenuemainlyduetotheincreaseofsalesvolumetolocalretailersinHongKong.

Cost of Sales

Fortheyearended31March2018,theGroup’scostofsalesamountedtoapproximatelyHK$336.3million,representinganincreaseofapproximately21.5%fromapproximatelyHK$276.8millionforthesameperiodin2017.Theincreasewasgenerallyinlinewiththeincreaseinrevenue.Asapercentageofrevenue,costofsaleswasaccountedforapproximately74.4%inFY2018(2017:approximately75.2%).

Gross Profit and Gross Profit Margin

Fortheyearended31March2018,theGroup’sgrossprofitamountedtoapproximatelyHK$115.8million,representinganincreaseofapproximately27.0%fromapproximatelyHK$91.2millionforthesameperiodin2017.TheGroup’sgrossprofitmarginforFY2018increasedbyapproximately0.8%toapproximately25.6%ascomparedto24.8%in2017.TheGroup’sgrossprofitmarginhoveredatalevelsimilartolastyear.

Selling and distribution expenses

For theyearended31March2018,sellinganddistributionexpensesof theGroupamounted toHK$38.2million,representinganincreaseofapproximately20.1%fromHK$31.8millionforthesameperiodin2017.Suchincreasewasmainlyduetothe increase inadvertisingandpromotionexpensesmainlyduetothe increase innumberofpromotionactivitiesandmarketingeventsheldduringFY2018and the increase in transportationexpensesasa resultof theincreaseinsalesvolumewhencomparedtolastyear.

Administrative expenses

Fortheyearended31March2018,administrativeexpensesoftheGroupamountedtoHK$51.6million,representinganincreaseofapproximately120.5% fromHK$23.4million for thesameperiod in2017.Such increasewasmainlyattributabletotherecognitionoflistingexpensesamountingtoapproximatelyHK$19.6millionduringFY2018aswellastheincreaseintheheadcountandsalariesofouradministrativestaffandmanagementstaffasaresultoftheexpansionofourbusiness,whichwasinlinewiththeincreaseofourrevenueduringFY2018.



Finance costs, net

Fortheyearended31March2018,netfinancecostsoftheGroupamountedtoHK$2.4million,representinganincreaseofapproximately71.4%fromHK$1.4millionforthesameperiodin2017.Theincreasewasprimarilyduetotheincreasein financecostsasa resultof thedrawdownof term loansofapproximatelyHK$45.0millionandrevolving loansofapproximatelyHK$8.0millionduringFY2018.

Income tax expenses

Fortheyearsended31March2017and2018,theGrouprecordedincometaxexpensesofHK$5.5millionandHK$7.3million, respectively, representinganeffective tax rateofapproximately16.4%and32.6%, respectively, for thecorrespondingyears.Therelativelyhighereffectivetaxratefortheyearended31March2018wasduetotherecognitionoflistingexpenses,whichwasnottaxdeductible.

Net Profit

Profitattributabletoownersof theCompanyfor theyearended31March2018wasapproximatelyHK$14.1million,representingadecreaseofapproximately48.5%fromapproximatelyHK$27.4millionforthesameperiodin2017.Thenon-recurrenceof theone-off listingexpensesofapproximatelyHK$19.6million recognised inFY2018caused thedecreaseofnetprofit.Thenetprofitmargin(calculatedasprofitfortheyearasaratioofrevenue)fortheyearended31March2018wasapproximately3.4%,ascomparedtoapproximately7.7%forthesameperiodin2017.Basicearningspersharefortheyearended31March2018amountedtoapproximatelyHK4.62cents,ascomparedtoapproximatelyHK9.12centsforthesameperiodin2017.

Capital Expenditure

Duringtheyearended31March2018,capitalexpenditureamountedtoHK$17.7million.Thisamountwasusedmainlyfortheopeningofnewretailoutlets.

Liquidity and Financial Resources Review

OurGroup is financiallysoundwithbankdepositsandcashamounting toapproximatelyHK$118.4millionasat31March2018(2017:approximatelyHK$37.5million).Asat31March2018,thegearingratioof theGroupwas66.1%(2017:119.0%),whichwascalculatedbasedontotaldebtdividedbytotalequityat theendof thefinancialyearandmultipliedby100%.DebtofourGroupreferstobankborrowings,obligationunderhirepurchasecontractsandamountsduetorelatedparties.Asat31March2018,theGrouphastotalbankingfacilitiesofapproximatelyHK$146.8million(2017:approximatelyHK$95.8million)ofwhichHK$109.4million (2017:approximatelyHK$47.5million)hasbeenutilised.Weaimtomaintainflexibilityinfundingbykeepingsufficientbankbalances,committedcreditlinesavailableandinterest bearing borrowings which enable us to continue our business in a manner consistent with the short-term and long-termfinancialstrategiesoftheGroup.

Foreign Currency Risk

TheGroupoperatesinHongKongandisexposedtoforeignexchangeriskfromthepurchaseofgoodsfromoverseassuppliersandcashandbankborrowingsdenominated in foreigncurrencies,primarilywithrespect toJapaneseYen,TaiwanNewdollarandUnitedStatesdollar.

TheGroupwillcontinuetotakeproactivemeasuresandmonitorcloselyofitsexposuretosuchcurrencymovement.



Treasury Policies

TheGroupadoptsprudenttreasurypolicies.TheGroup’smanagementhasmonitoringprocedurestoensurethatfollow-upactionistakentorecoveroverduedebts.Inaddition,managementreviewsregularlytherecoverableamountofeachindividual trade receivable by taking into account the market conditions, customers’ profiles and contractual terms to ensurethatadequate impairment ismadefor irrecoverableamounts.Ontopof theseongoingcreditevaluations, theBoard closely monitors the Group’s liquidity position to ensure that the liquidity structure of the Group’s assets, liabilities andcommitmentscanmeetitsfundingrequirements.

Operating lease commitments

The Group’s operating lease commitments are related to the leased properties for the Group’s retail outlet and warehouses.TheGroup’soperatingleasecommitmentsamountedtoapproximatelyHK$44.0millionandapproximatelyHK$93.6millionasat31March2017and2018respectively.

Capital Structure

TheSharesweresuccessfullylistedontheMainBoardoftheStockExchangeontheListingDate.Therehasbeennochange in thecapitalstructureof theGroupsince then.Thesharecapitalof theCompanyonlycomprisesordinaryshares.Asat31March2018,theCompanyhad400,000,000Sharesinissue.

Capital commitments and contingent liabilities

Detailsof thecapitalcommitmentsaresetout innote29totheconsolidated financialstatementsof theGroup.TheGrouphasnomaterialcontingentliabilitiesasat31March2018.

Employees and remuneration policies

Asat31March2018,theGroupemployedatotalof494employees(2017:379)andtheemployeebenefitexpensesincludingdirectors’emolumentswereapproximatelyHK$70.1million.TheGroupoffersacomprehensiveremunerationpackagewhichisreviewedbymanagementonaregularbasis.TheincreaseinthenumberofemployeeswasmainlyduetotheincreaseinthescaleoftheGroup’sbusiness.

SIGNIFICANT INVESTMENTS, ACQUISITIONS AND DISPOSALSFortheyearended31March2018,theGroupdidnothaveanysignificantinvestments,acquisitionsordisposals,exceptforthereorganisationoftheGroupwithdetailssetforthintheprospectusoftheCompanydated26February2018(the“Prospectus”).

Use of Proceeds

TheShareshavebeensuccessfully listedon theMainBoardof theStockExchangeon theListingDate.Thenetproceedsfromthelisting,afterdeductingcommissionandexpensesinconnectionwiththelisting,wereapproximatelyHK$87.5million.Asat31March2018,thenetproceedsfromtheshareofferhavenotbeenused.TheDirectorswillreview the business opportunities available to the Group from time to time for applying the net proceeds according to the purposesstatedintheProspectus.TheDirectorsdonotanticipatethattherewillbeanymaterialchangetotheproposeduseofthenetproceedsfromtheshareoffer.


BIOGRAPHIES DETAILS OF DIRECTORSAND SENIOR MANAGEMENT

BOARD OF DIRECTORSExecutive Directors

Mr. Chan Kam Chuen Andrew (“Mr. Andrew Chan”),aged57, isourchairman,chiefexecutiveofficerandwasappointedasourexecutiveDirectoron21August2017.He joinedourGroup inFebruary1992and isprimarilyresponsible for sourcing brands and products, liaising with suppliers, overall management of retail business, strategic planningandbusinessdevelopmentofourGroup.Mr.AndrewChanisadirectorofWiseFineEnterpriseLimited(“WiseFine”),SawCorporationLimited (“SawCorporation”),National JadeLimited (“National Jade”) andSunnyLandCorporationLimited (“SunnyLand”),ouroperatingsubsidiaries.FromMay1985toFebruary1992,Mr.AndrewChanworkedat threedifferentcompaniesassales&marketingmanagerandmerchandisemanager.Mr.AndrewChanreceivedhisbachelor’sdegreeinartsfromTheUniversityofHongKonginNovember1985.

Mr.AndrewChanisthebrotherofMr.ChanSiuCheungStephenandthespouseofMs.TinHauLingJanny.

Mr. Chan Siu Cheung Stephen (“Mr. Stephen Chan”),aged59,wasappointedasourexecutiveDirectoron21August2017.He joinedourGroup inFebruary1990and isprimarilyresponsible foroverallmanagementofsalesandmarketingandliaisingwithcustomersofourGroup.Mr.StephenChanisadirectorofWiseFine,SawCorporationandSunnyLand,ouroperatingsubsidiaries.In1980s,heaccumulatedworkexperienceinthefieldofsalesandmarketingattwotradingcompaniesinHongKong.InFebruary1990,hefoundedthebusinessofourGroupasasoleproprietor,withMr.WilliamChaujoininghimasapartnerinDecember1990andhisbrotherMr.AndrewChanjoininghimasapartnerin1992.

Mr.StephenChanisthebrotherofMr.AndrewChanandthebrother-in-lawofMs.TinHauLingJanny.

Mr. Chau Wing Kong William (“Mr. William Chau”),aged57,wasappointedasourexecutiveDirectoron21August2017.Heisprimarilyresponsibleforoverallmanagementoffinance,inventorycontrol,logisticsandoperationofourGroup.Mr.WilliamChauisadirectorofWiseFine,SawCorporationandSunnyLand,ouroperatingsubsidiaries.Mr.ChauaccumulatedworkexperienceinthefieldofsalesandmarketingaswellasinventorycontrolatthreecompaniesinHongKong.From1985to1989,heranasilkscreenprintingbusiness. InDecember1990,he joinedourGroupasabusinesspartner.

Ms. Tin Hau Ling Janny (“Ms. Janny Tin”),aged56,wasappointedasourexecutiveDirectoron14November2017.She joinedourGroupon14November2017and isprimarily responsible forstrategicplanning,businessdevelopmentandoverseeingcompliancemattersofourGroup.FromApril1994toMarch1997,Ms.JannyTinworkedataHongKonglawfirmwhereshewasprimarilyresponsibleforconveyancingandlitigationworks.FromJuly1997toMay2001,Ms.JannyTinwasapartneratanotherHongKonglawfirmandshewasresponsibleforlitigationworksandadministration.Ms.JannyTinworkedasapartneratLo,Wong&TsuiSolicitorsfromMay2001toApril2004,andshecontinuedasaconsultantsinceApril2004,whereshe isresponsible forgeneralpractice.Ms.JannyTinreceivedherbachelor’sdegree in laws fromtheUniversityofLondon in theUnitedKingdominAugust1990.Ms.JannyTinwasadmittedasasolicitorintheUnitedKingdomandHongKonginOctober1993andJanuary1994,respectively.

Ms.JannyTinisthespouseofMr.AndrewChanandthesister-in-lawofMr.StephenChan.



Independent non-executive Directors

Mr. Yu Ka Ho Bernard (“Mr. Yu”),aged38,wasappointedasourindependentnon-executiveDirector,thechairmanof the remuneration committee and a member of each of the audit committee and nomination committee of the Company on12February2018.FromAugust2004toJuly2005,Mr.YuworkedatProJOB21.comandwassecondedtoReutersHongKongLimitedasadataanalyst in thedataoperationsdepartment,wherehewasresponsible forconductingresearchandupdating fixed incomedata.FromDecember2007 toNovember2008,Mr.Yuservedasa researchassistant at The Pacific Group Limited, an asset management firm, where he was responsible for stock trading and analysis.FromMay2010toJanuary2012,Mr.YuservedasaType9(assetmanagement)regulatedactivity licencedrepresentative under the SFO in Aquitaine Investment Advisors Ltd, a company engaged in asset management, where Mr.Yuwasengaged in fund riskmanagementand fundsupportduties.Mr.Yuheldvariouspositions inHaitongInternationalSecuritiesGroupfromJanuary2012toJuly2016withhis lastpositionasadirectorof thefixed income,currencyandcommoditiestradingdepartmentfromJanuary2016toJuly2016.FromJuly2016toJune2018,Mr.Yuhasbeenservingasanexecutivedirectorand theheadof fixed income trading,sales& tradingdivision in ICBCInternationalHoldingsLimited,wherehewasresponsible foroverseeingbondstradingandmarketmakingbusiness.SinceJune2018,Mr.Yuhasbeenservingasanexecutivedirectorof fixed income,currencyandcommoditiesdepartment in Haitong International Management Services Company Limited, where he is responsible for proprietary tradinginfixedincome,currencyandcommoditiesproducts.

Mr.Yureceivedhisbachelor’sdegreeinscienceandhismaster’sdegreeinbusinessadministrationfromtheUniversityofTorontoinNovember2003andJune2007,respectively.Mr.YuobtainedtheCFAcharterholderqualificationfromtheCFAInstituteinSeptember2012.

Mr. See Hung Yan Peter (“Mr. See”),aged56,wasappointedasour independentnon-executiveDirector, thechairman of the nomination committee and a member of each of the audit committee and remuneration committee of the Companyon12February2018.FromJuly1986 toSeptember2015,Mr.SeeservedvariouspositionsatFederalExpress (HongKong)Limitedwithhis lastpositionas themanagingdirectorof thecustomerserviceplanning&engineering department, where he was primarily responsible for overall management of the planning and engineering business.

Mr.Seereceivedhishighdiplomaincivilengineering(municipal)andassociateshipincivilandstructuralengineeringfromtheHongKongPolytechnic (nowknownasTheHongKongPolytechnicUniversity) inNovember1985andNovember1986, respectively.Mr.Seethenobtainedhismaster’sdegree inscience inmanagement (business) fromTheHongKongPolytechnicUniversityinOctober1995.

Mr. Chung Kwok Mo John (“Mr. Chung”),aged49,wasappointedasanindependentnon-executiveDirector,thechairman of the audit committee and a member of each of the remuneration committee and the nomination committee of theCompanyon12February2018.Heobtainedabachelor’sdegree ineconomicsfromMacquarieUniversity inApril1992andisamemberofCPAAustraliaandHongKongInstituteofCertifiedPublicAccountants,withover20yearsofexperience inauditing, financialmanagementandcorporate finance.Mr.Chungwasanauditorofan internationalaccountingfirmfrom1992to1999.

From2000,Mr.Chungheldseveralseniormanagementpositions,includingchieffinancialofficer,executivedirectorandindependentnon-executivedirector, inanumberof listedcompanies inHongKong.Mr.Chung ispresentlyavicepresidentofYongshengAdvancedMaterialsCompanyLimited,acompany listedontheStockExchange(stockcode:3608).Mr.Chungisalsocurrentlyanindependentnon-executivedirectorofthefollowingcompanieslistedontheStockExchange:(i)BYDElectronic(International)CompanyLimited(stockcode:285)sinceJune2013;(ii)ZhengyeInternationalHoldingsCompanyLimited(stockcode:3363)sinceMarch2011;and(iii)YTOExpress(International)HoldingsLimited(stockcode:6123)sinceDecember2017.



SENIOR MANAGEMENTMr. Tang Kwok Hay (“Mr. Tang”),aged32, isthechief financialofficerandcompanysecretaryofourGroup.Mr.TangjoinedtheGroupinJune2017andisresponsibleforoverseeingtheGroup’sdailyfinancialoperations,managingitsaccountingandinternalcontrol,aswellasitslegalaffairsandinvestorrelations.

Mr.Tanghasover10yearsofexperience inaccounting,auditingandfinancialcontrol.Prior to joiningourGroup,Mr.Tangservedasthefinancialcontroller inWPPMarketingCommunications (HK)Limitedfrom2013to2017,wherehewasprimarilyresponsible foroverseeingfinancialoperationsandprovidingcommercialsupport tomanagement.From2007to2013,Mr.TangworkedforPricewaterhouseCoopers,withhislastpositionasmanager,wherehewasinvolvedinanumberofauditandassurance,capitalmarkettransactionsandadvisoryprojectsadvisingcorporateclientsincludinglistedcompaniesandmultinationalcompanies.

Mr.Tang receivedhisbachelordegree inbusinessadministration fromTheChineseUniversityofHongKong inDecember2007.Heobtained thequalificationof financial riskmanager (FRM) fromtheGlobalAssociationofRiskProfessionalsandcertifiedpublicaccountant (CPA) fromtheHongKong InstituteofCertifiedPublicAccountants inSeptember2009andJanuary2011,respectively,andwasadmittedasafellowmemberoftheHongKongInstituteofCertifiedPublicAccountantsinMarch2018.


CORPORATEGOVERNANCEREPORT

CORPORATE GOVERNANCE PRACTICESThe Company is committed to achieving and maintaining the highest standard of corporate governance to safeguard Shareholder’sinterests.

TheCompanyhasbeenlistedontheStockExchangesince14March2018(the“ListingDate”).DuringtheperiodfromListing Date up to the date of this annual report, the Company has applied the principles in the Corporate Governance Code(the“CGCode”)assetoutinAppendix14totheRulesGoverningtheListingofSecuritiesontheStockExchange(the“ListingRules”).Thecorporategovernanceprinciplesof theCompanyemphasisesaneffectiveboardwithahighlevel of integrity, sound internal controls, as well as ensuring a high degree of transparency and accountability, which doesnotonlyenhancecorporatevalueforShareholdersbutalsoprotectsthelong-termsustainabilityoftheGroup.

In the opinion of the Board, during the period from the Listing Date up to the date of this annual report, the Company has compliedwithallthecodeprovisionsoftheCGCode,saveandexceptforcodeprovisionA.2.1whichstatesthattherolesofchairmanandchiefexecutiveofficershouldbeseparateandshouldnotbeperformedbythesameindividual.Mr.ChanKamChuenAndrewisbothourchairmanandchiefexecutiveofficerandisresponsiblefortheoverallmanagementoftheGroupanddirectingthestrategicdevelopmentandbusinessplansoftheGroup.

TheBoardbelievesthatvestingtherolesofthechairmanandchiefexecutiveofficer inthesameindividual(that is,Mr.ChanKamChuenAndrew)wouldenabletheCompanytoachievehigherresponsiveness,efficiencyandeffectivenesswhenformulatingbusinessstrategiesandexecutingbusinessplans.TheBoardbelievesthatthebalanceofpowerandauthority is sufficiently maintained by the operation of the senior management and the Board, which comprises experiencedandhigh-calibre individuals.TheBoardcurrentlycomprises fourexecutiveDirectors (includingMr.ChanKamChuenAndrew)andthree independentnon-executiveDirectorsandthereforehasa fairlystrong independenceelementinitscomposition.

The Board will nevertheless review the structure and composition of the Board from time to time in light of prevailing circumstances, in order to maintain a high standard of corporate governance practices of the Company and ensure compliancewiththecodeprovisionsoftheCGcode.

DIRECTORS’ SECURITIES TRANSACTIONSTheCompanyhasadoptedtheModelCodeforSecuritiesTransactionsbyDirectorsofListedIssuers(the“ModelCode”)assetout inAppendix10totheListingRulesas itsowncodeofconductgoverningtheDirectors’transactions inthelistedsecuritiesof theCompany.Employeesof theGroup(the“RelevantEmployees”)who,becauseof theirofficeoremployment,are likely topossess inside information in relation to theCompanyor itssecuritiesarealsosubject tocompliancewiththeModelCode.

The Company has made specific enquiry of all Directors, and each Directors has confirmed that he or she has complied withthestandardsassetout intheModelCodeduringtheperiodfromtheListingDatetothedateofthisreport.Noincident of non-compliance of the Model Code by the Relevant Employees was noted by the Company during the period fromtheListingDatetothedateofthisreport.

Annual Report 2018


17

BOARD OF DIRECTORSResponsibilities of the Board

The Board is responsible for the leadership and control of the Company and is vested with the overall management of theGroup’sbusiness.TheBoard iscollectively responsible forpromotingthesuccessof theCompanybyprovidingeffective leadershipanddirectionto itsbusiness,andensuringtransparencyandaccountabilityof itsoperations.Suchresponsibilities include implementing the strategies and plans as approved by the Board, formulating and monitoring the operation and production plans and budgets, as well as internal control systems, risk management systems, material transactions(inparticularthosethatmayinvolveaconflictofinterest),financialinformation,appointmentofDirectorsandothersignificantfinancialandoperationalmatters.

Inaddition, theBoardhasalsodelegatedvarious responsibilities to theboardcommitteesof theCompany.FurtherdetailsoftheboardcommitteesoftheCompanyaresetoutbelowinthisreport.

BOARD COMPOSITIONCurrently,theBoardcomprisessevenDirectors,includingfourexecutiveDirectorsandthreeindependentnon-executiveDirectors.

Membership of Board Committee(s)

Executive DirectorsMr.ChanKamChuenAndrew(Chief Executive Officer & Chairman) N/AMr.ChanSiuCheungStephen N/AMr.ChauWingKongWilliam N/AMs.TinHauLingJanny N/A

Independent non-executive DirectorsMr.YuKaHoBernard Chairman of Remuneration Committee

Member of Audit CommitteeMember of Nomination Committee

Mr.SeeHungYanPeter Chairman of Nomination CommitteeMember of Audit Committee

Member of Remuneration CommitteeMr.ChungKwokMoJohn Chairman of Audit Committee

Member of Remuneration CommitteeMember of Nomination Committee

DetailedbiographiesoftheDirectorscanbefoundonpages13to15ofthisannualreport.TherelationshipsbetweenthemembersoftheBoardarealsodisclosedunderthesamesection.

AllDirectorsareelectedforatermof threeyears,subjecttoretirementbyrotationandre-electionat theCompany’sannualgeneralmeeting(“AGM”).

TheDirectorsbringagoodbalanceofskillandexperiencetotheCompany.Theyhavebeenmadefullyawareoftheircollectiveandindividualresponsibilitiestoshareholders.AllBoardappointmentarebasedonmerit,andcandidatesareconsideredagainstvariousobjectivecriteria,withdueregardforthebenefitsofdiversityontheBoard.OversightofthisBoarddiversitypolicyistheresponsibilityofthenominationcommittee.



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TheCompanyhas three independentnon-executiveDirectors,whobringawide rangeofbusinessand financialexperiencetotheBoard.BytheiractiveparticipationinBoardmeetingandbytheirserviceonvariousBoardcommittees,the independentnon-executiveDirectorscontribute in importantwaystotheeffectivedirectionandstrategicdecision-makingof theGroup.Allof the independentnon-executiveDirectorsmeet theguidelinesunder theListingRules forassessingindependence,andeachhassignedadeclarationconfirminghisindependencepursuanttoRule3.13oftheListingRules.

FromtheListingDateuptothedateofthisannualreport,theBoardatalltimesmettherequirementofRules3.10(1)and(2)and3.10AoftheListingRulesrelatingtotheappointmentofatleastthreeindependentnon-executiveDirectors.

AfulllistofDirectorsisavailableontherespectivewebsitesoftheCompanyandtheStockExchange,andisdisclosedinallcorporatecommunicationsissuedbytheCompanyfromtimetotimeinaccordancewiththeListingRules.

DIRECTORS’ CONTINUOUS PROFESSIONAL DEVELOPMENTDirectors keep abreast of responsibilities as a director of the Company and of the conduct, business activities and developmentof theCompany.EverynewlyappointedDirectorwill receiveformalandcomprehensive inductiononthefirst occasion of his/her appointment to ensure appropriate understanding of the business and operations of the Company and full awareness of director’s responsibilities and obligations under the Listing Rules and relevant statutory requirements.

Directors should participate in appropriate continuous professional development to develop and refresh their knowledge andskillstoensurethattheircontributiontotheBoardremainsinformedandrelevant.AllDirectorsareencouragedtoattendrelevanttrainingcoursesattheCompany’sexpenses.

For theyearended31March2018upto thedateof thisannual report, theCompanyorganiseda trainingsessionconductedby lawyers forDirectorsandallDirectorshaveattendedthetrainingsession.Thesessionsconductedbylawyersfocusedoncorporategovernance,directors’duties,responsibilitiesandobligationsundertheListingRules.

BOARD COMMITTEESThe Board established the remuneration committee, nomination committee and audit committee to assist in carrying out itsresponsibilitiesandfunctions.Eachofthesecommitteeshasspecificwrittentermsofreferencesettingoutitsdutiesandauthority.Thecommitteeshavesufficientresourcestoexecutetheir requisitedutiesandenjoythesupportof themanagement.

REMUNERATION COMMITTEETheprimarydutiesoftheremunerationcommitteeareto(a)establishaformalandtransparentprocedurefordevelopingremunerationpolicy;(b)formulateandrecommendtotheBoardpoliciesandstructuresfortheremunerationofDirectorsand seniormanagement; (c) determine specific remunerationpackages for all executiveDirectors and seniormanagement in themannerspecified in its termsof reference; (d)make recommendations to theBoardon theremunerationofindependentnon-executiveDirectors;(e)reviewtheappropriatenessoftheremunerationpolicy;and(f)review and make recommendations to the Board as to the fairness and reasonableness of the terms of any Director’s serviceagreementwhichissubjecttotheapprovaloftheShareholdersingeneralmeetingpursuanttotheListingRules.ThecurrentmembersoftheremunerationcommitteeareMr.YuKaHoBernard,Mr.SeeHungYanPeterandMr.ChungKwokMoJohn,allbeingindependentnon-executiveDirectors.

Annual Report 2018


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NOMINATION COMMITTEETheprimarydutiesofthenominationcommitteeareto(a)reviewthestructure,sizeanddiversityoftheBoard;(b)assessthe independenceof independentnon-executiveDirectors; (c)makerecommendationstotheBoardonanyproposedchange to the Board or selection of individuals nominated for directorships, or on appointment or re-appointment of Directors.ThecurrentmembersofthenominationcommitteeareMr.SeeHungYanPeter,Mr.YuKaHoBernardandMr.ChungKwokMoJohn,allbeingindependentnon-executiveDirectors.

AUDIT COMMITTEETheprimarydutiesof theauditcommitteeare to (a)makerecommendationsto theBoardon theappointmentandremovalofexternalauditor;(b)reviewthefinancialstatementsandmaterialadviceinrespectoffinancialreportingand(c)overseethe internalcontrolproceduresof theCompany.Thecurrentmembersof theauditcommitteeareMr.ChungKwokMoJohn,Mr.YuKaHoBernardandMr.SeeHungYanPeter,allbeingindependentnon-executiveDirectors.

Thisannualreporthasbeenreviewedbytheauditcommittee.

The terms of reference of the audit committee is available on the respective websites of the Company and the Stock Exchange.

BOARD MEETINGSTheBoardscheduled1meetingbetweentheListingDateuptothedateofthisannualreport.AllDirectorsattendedthemeeting.TheCompanyexpectstoholdatleastfourmeetingsperyear,withspecialBoardmeetingsbeingscheduledasrequired.Formalnoticeofatleast14dayswillbegiveninrespectofaregularmeeting,whileforspecialBoardmeetings,reasonablenoticewillbegiven.

DIRECTORS’ LIABILITIES INSURANCEFromtheListingDateto31March2018,theCompanyhadarrangedforappropriateandadequateinsurancecovertoprotect theDirectors from legalactionarising from theperformanceof theirdutiesasaDirector.Such insurancecoverageisreviewedandrenewedbytheBoardonanannualbasis.

CORPORATE GOVERNANCE FUNCTIONThe Board is responsible for ensuring that the Company maintains and implements comprehensive corporate governance practicesandprocedures.FromtheListingDateto31March2018,theBoard:

(1) establishedand reviewed thecorporategovernancepoliciesandpracticesof theCompanyaswellasmaderelevantrecommendations;

(2) reviewedandmonitored the trainingandcontinuousprofessionaldevelopmentof theDirectorsandseniormanagementoftheGroup;

(3) reviewedandmonitoredthepoliciesandpracticesoftheCompanytoensurecompliancewithrelevant legalandregulatoryrequirements;

(4) established,reviewedandmonitoredthecodeofconductofDirectorsandemployeesoftheGroup;and

(5) reviewedcompliancewiththeCGCodeandmadenecessarydisclosureintheannualreport.



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This corporate governance report has been reviewed by the Board in fulfillment of its corporate governance responsibilities.

ATTENDANCE RECORD OF DIRECTORS AND COMMITTEE MEMBERSThe attendance record of each Director at the Board meeting and Board Committee meetings of the Company held during the period from the Listing Date and up to the date of this annual report is set out in the table below:

Attendance/Number of Meetings

Name of Directors BoardNomination Committee

Remuneration Committee

Audit Committee

GeneralMeeting

Executive DirectorsMr.ChanKamChuenAndrew 1/1 N/A N/A N/A N/AMr.ChanSiuCheungStephen 1/1 N/A N/A N/A N/AMr.ChauWingKongWilliam 1/1 N/A N/A N/A N/AMs.TinHauLingJanny 1/1 N/A N/A N/A N/A

Independent Non-executive DirectorsMr.ChungKwokMoJohn 1/1 1/1 1/1 1/1 N/AMr.YuKaHoBernard 1/1 1/1 1/1 1/1 N/AMr.SeeHungYanPeter 1/1 1/1 1/1 1/1 N/A

DIRECTORS’ RESPONSIBILITY IN RESPECT OF THE FINANCIAL STATEMENTSThe Directors acknowledge their responsibility for preparing the financial statements of the Company for the year ended 31March2018.TheDirectorsarenotawareofanymaterialuncertaintiesrelatingtoeventsorconditionsthatmaycastsignificantdoubtupontheCompany’sabilitytocontinueasagoingconcern.Thestatementoftheindependentauditorof the Company about their reporting responsibilities on the financial statements is set out in the Independent Auditor’s Reportonpages46to50ofthisannualreport.

AUDITOR’S REMUNERATIONAnanalysisoftheremunerationthatshouldbepaidtotheexternalauditoroftheCompany,PricewaterhouseCoopers,fortheauditoftheyearended31March2018andnon-auditservicesissetoutbelow:

Service Category Fees Paid/Payable

HK$’000

Services renderedAudit services 1,860Non-audit services (Note) 5,600

Total 7,460

Note: Non-audit services provided to the Group included the reporting accountant’s work in connection with the initial public offering of the Company.

Annual Report 2018


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RISK MANAGEMENT AND INTERNAL CONTROLSound and effective internal control systems are important to safeguard the Shareholders’ investment and the Company’sassetsandtheBoardisresponsibleformaintaininganadequateinternalcontrolsystemtosafeguardthem.

Procedures have been put in place to safeguard the Group’s assets against unauthorised use or disposal, to ensure proper accounting records are kept so that reliable financial information can be provided when required, and to ensure compliancewithallapplicable lawsandregulations.Theseprocedureshavebeenbasedon industrynormsandaredesignedtoprovidereasonableassuranceandprotectionagainsterrors,lossesandfraud.

IncompliancewithcodeprovisionC.2.5oftheCGCode,anevaluationandreviewoftheGroup’sinternalcontrolandriskmanagementsystemwasconductedbyanexternalindependentprofessionalconsultantduringtheyear.

The Board, through the audit committee, conducted an annual review on the effectiveness of the Group’s risk management and internal control systems in its financial, operational and compliance controls and risk management functions, includingbutnot limited to (i) theGroup’sability to respond tochanges in itsbusinessandexternalenvironment intermsofsignificantrisks; (ii) thescopeandqualityofmanagement’s ingoingmonitoringofrisksandofmonitoringresultstotheBoardinrelationtotheresultofriskandinternalcontrolreview;(iii)significantcontrolfailingorweaknesshavingbeenidentifiedandtheirrelatedimplications;and(iv)statusofcompliancewiththeListingRules.TheBoard is of the opinion that the Group’s risk management and internal control systems were adequate and effective from theListingDateto31March2018.

The Board, also through the audit committee, has reviewed the adequacy of the Group’s resources, staff qualifications andexperience,trainingprogramsandbudgetoftheCompany’saccountingandfinancialreportingfunctionsaswellasqualificationsandexperienceoftheinternalauditors.

COMPANY SECRETARYMr.TangKwokHay(“Mr.Tang”) isthecompanysecretaryoftheCompany.Mr.TangsupportstheBoardbyensuringthat reliable and relevant flow of information is maintained amongst members of the Board and that all procedures have beenadheredtoinaccordancewithapplicablelaws,rulesandregulations.Mr.TangisalsotheprimarycontactpersonwithintheCompanyforallmattersrelatingtothedutiesandresponsibilitiesofthecompanysecretary.

Duringtheyearended31March2018,Mr.TanghascompliedwithRule3.29oftheListingRulesinrelationtotakingofrelevantprofessionaltraining.

SHAREHOLDERS’ RIGHTSThecompany iscommitted tomaximizing transparency forshareholder,andensuring thatshareholdershaveclearknowledgeofdecisionsmadebytheCompany.

Procedures for Shareholders to Convene an Extraordinary General Meeting

Inaccordancewitharticle58ofthearticlesofassociationoftheCompany(the“ArticlesofAssociation”),extraordinarygeneral meeting shall be convened on the requisition of one or more Shareholders holding, at the date of deposit of the requisition, not less than one-tenth of the paid up capital of the Company carrying the right of voting at the general meetingsof theCompany.Suchrequisitionshallbemade inwriting to theBoardor thecompanysecretary for thepurposeof requiringanextraordinarygeneralmeeting tobecalledby theBoard for the transactionofanybusinessspecifiedinsuchrequisition.Suchmeetingshouldbeheldwithintwomonthsafterthedepositofsuchrequisition.



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Procedures for Raising Enquiries

The Shareholders of the Company may at any time send their enquiries and concerns in respect of the Company to the followingcorrespondenceaddress,emailaddressandfaxnumberof theCompany for theattentionof thecompanysecretary:

Address:Room911,9/F,TaiYauBuilding,181JohnstonRoad,WanChaiEmail:[email protected]:(852)28936632

The Shareholders may also direct their queries regarding their shareholdings, share transfer/registration, payment of dividendandchangeofcorrespondenceaddress to theCompany’sbranchshare registrar inHongKong,UnionRegistrars Limited:

Address:Suites3301–04,33/F.,TwoChinachemExchangeSquare,338King’sRoad,NorthPoint,HongKongEmail:[email protected]:(852)28493399Fax:(852)28493319

COMMUNICATION WITH SHAREHOLDERS AND INVESTORS/INVESTOR RELATIONSThe Company considers that effective communication with shareholders is essential for enhancing investor relations and investorunderstandingoftheGroup’sbusinessperformanceandstrategies.TheCompanyendeavourstomaintainanon-goingdialoguewithshareholdersandinparticular,throughAGM(s)andotherextraordinarygeneralmeetings.AttheAGM,Directors (or theirdelegatesasappropriate)areavailabletomeetShareholdersandanswertheirenquiries.TheCompany’swebsite(www.bandshk.com)providescomprehensiveandaccessiblenewsandinformationofthecompanytotheShareholders,otherstakeholdersandinvestors.TheCompanywillalsoupdatethewebsiteinformationfromtimetotimetoinformtheshareholdersandinvestorsofthelatestdevelopmentoftheCompany.

CONSTITUTIONAL DOCUMENTSAnup-to-dateversionoftheArticlesofAssociationisavailableonboththewebsitesoftheHongKongStockExchangeandtheCompany.


ENVIRONMENTAL,SOCIALANDGOVERNANCEREPORT

TheGroup ispleasedtopresentthefirstenvironmental,socialandgovernance(“ESG”)Report for theyearended31March2018.Thecontentof thisESGReportcovers theperformanceandefforts towardsenvironment,societyandgovernanceoftheCompanyanditssubsidiaries(the“Group”)initsmajoroperatinglocations.

ThisESGreportispreparedinaccordancewiththerequirementssetforthintheESGReportingGuideunderAppendix27oftheListingRules,itpresentsourmajorESGpolicies,initiativesandperformanceoftheGroupfortheyearended31March2018(“thereportingperiod”).

This report was approved by the Company’s Board of Directors and aims to provide a balanced representation of the Group’seffortontheESGmatterswhichcoveredtheGroup’soperationsforthereportingperiod.

Scope of report

TheGrouphas itsmajoroperations inHongKong.Thereportcontent focusedontheGroup’sdistributionandretailoperationinHongKongwhichincludedtheoffices,warehouseandretailshops.

Materiality Assessment

Following the discussion with our senior management and operational staff, we have identified the ESG issues relevant to theGroup.TheidentifiedESGissueshavebeenassessedbyconsideringtheirimportancetoourstakeholdersaswellastheGroup.AnESGReportingGuideContent Indexaresetoutonpages32to35of this report tocomplywith the“complyorexplain”provisioninaccordancetotheESGReportingGuide.

Corporate Social Responsibility (“CSR”) Vision, Policy and Strategy

The Group has adopted a CSR Policy in order to commit to the highest standards of corporate governance, and aims to integrateCSRintotheGroup’sbusinessstrategyandmanagementapproach.

CSR is viewed as a business philosophy that creates shared sustainable value with its stakeholders in the economic, socialandenvironmentaldimensions.TheGroup’sCSRVisionandCSRPolicyguide theGroup’sbusinessandoperationaldecisionstotakeintoaccountitsresponsibilitytotheCSRcornerstoneswithpragmaticobjectivesprovidingguidanceontheapplicationoftheseprinciplesinitsdailyoperations.TheGroup’sCSRPolicydescribesourlong-termapproach to specific issues in the four cornerstones: Marketplace, Workplace, Community and Environment, which is instrumentalinenablingourbusinesstooperateinasustainablemanner.Withineachofthecornerstones,coreprinciplesandpragmaticobjectivesprovideguidanceonpracticingCSRinourdailyoperations.

Environmental, Social and Governance Working Group

To demonstrate our commitment to transparency and accountability, the Company has established an ESG working group,whichhascleartermsofreferencethatsetoutthepowersdelegatedtoitbytheBoard.



MARKETPLACEThe Group aims to strike a balance between efficient operation and environmental protection and provide services in a sustainabilitymatter.Toenhancethesustainability,theGrouphasprovidedanonlineorderingchanneltothecustomersthrough electronic data interchange system and encourage using e-communication in the business operation and communicationwithsuppliersandcustomers.

Supply Chain Management

TheGrouphasrecognisedthesignificanceofsuppliersinaffectingthesustainabilityofallthebusinessoperations.Notonly the suppliers play a crucial role in influencing the overall performance but also imprint the Group’s reputation among thesocietieswhere theGroupoperates.Responsiblebehaviour,equalityandsensitivity towardsdynamicneedsofstakeholdersarethetopentitiesthatareaddressedwhenconductingthebusiness.Forthispurpose,itisensuredthatallthesupplychainpartnersaretreatedinafairandjustmannerduringtherelatedbusinessactivities.

The Group usually guarantees that there are multiple qualified suppliers of raw materials to control stability of supply and ensuretheproductionprocess issmoothandtimely.TheGrouphasestablishedanapprovedsupplier listwhichourpurchasingdepartment regularlyconductssupplier reviews toensureproductqualityandsafety.Allsuppliersarerequired to hold valid licences required by the government, and all imported goods shall obtain proper clearance from the respectiveauthorities.Thesupplierreviewandassessmentsystemisbasedonasetofselectioncriteria including,butnot limited to, the pricing and quality of ingredients, and the reputation, service, agility, delivery efficiency and past performanceofthesuppliers.

During the year, the Group is not aware of any key suppliers with any significant negative impact on business ethics, environmentalprotectionand labourpractice.TheGrouphasnot receivedanycomplaint fromsuppliersduring thereportingperiod.

Product and Services Responsibility

All theemployees,customersandassociatedprofessionalsareensuredprivacypertainingtotheirpersonaldata.ThePersonalData (Privacy)OrdinanceandguidelinesthatareannouncedbytheOfficeof thePrivacyCommissioner forPersonalDatainHongKongandtheprovisionsofprotectingpersonprivacystipulatedintherelatedlawsandregulationsinthePRCarecloselyfollowedbytheGroup.



As a food and beverage distributor with operation of well known retail brands, the Group has continuously monitored on thefollowinglawsandregulations.

Category Relevant laws and regulations

Food safety and product responsibility • PublicHealthandMunicipalServicesOrdinance• FoodSafetyOrdinance• ImportedGame,Meat,PoultryandEggsRegulations• ConsumerGoodsSafetyOrdinance• ImportandExport(Registration)Regulations• FoodandDrugs(CompositionandLabelling)Regulations

Restaurant Licensing • PublicHealthandMunicipalServicesOrdinance• FoodBusinessRegulation(Chapter132XoftheLawsofHongKong)• FrozenConfectionsRegulation (Cap.132ACof theLawsofHong

Kong)

Moreover, the Group has set up operational manual and perform continuous training to the operation team to ensure the lawsandpracticesarestrictlypursuedbytheGroup’soperationteam.Wevaluethecompliancetotheregulationandalsothequalityofproductsandservices.TheGrouphasinternalguidelineinmaintainingtheproductsquality,foodsafetyandhealthrelatedmatters.

The Group has a quality assurance department to assess the food ingredients of the distributed products and ensure all products has been checked that they have not contained prohibited ingredients and ensure the food label provides sufficientinformationtotheendusers.Fromimportingtostorage,theGroupkeeponmaintainingahighstandardoffoodprotectionandmonitoringtoensurethegoodsarestoredinacleanandsafeenvironment.

Wealsovalueourproductsqualityandthefoodsafetyonourproducts.TheGrouphasclearguidanceonmaintainingahighstandardofenvironmentalhygiene.TheGrouphasestablishedacleaningstandardproceduresandtraining isprovided to all operational staff to ensure they have followed the Group’s policy and maintained high standard of hygiene inthecentralkitchenandthecookingareaofallretailshops.

Anti-corruption

OurGroup implementsanAnti-CorruptionandWhistleblowingPolicy.Weprovideourstaffwithproperwhistleblowingchannelssothattheycanraiseconcernswhenneeded,withoutfearofreprisaloranynegativeimpacts.

We encourage our employees to voice out their opinion and our Group will not take any negative action against staff for voicingout theirconcernsthroughtheproperwhistleblowingchannels.OurGroupfullysupportsemployeestoraiseconcerns in good faith and the mentioned issue will be discussed by management and dealt with a professional and appropriatemanner.

The Group is not aware of any material non-compliance with the relevant laws and regulations that have a significant impactontheGrouprelatingtobribery,extortion,fraudandmoneylaundering.



WORKPLACEThe credit to the Group’s success and tremendous progression in the marketplace goes to the workforce, who has offeredhighefficiency,qualityandcommitmenttotheGroup.Todevelopaconduciveworkenvironment,theGroupaimsatbuildingacross-culturalworkforce,developingthecompetenciesofemployees,recognizing,motivatingandrewardingtalentandensuringthewell-beingandsafetyofallindividuals.TheGroupadoptedtheCodeofConductbyintroducingtheinternalguidelineonemployee’sCodeofConduct,suchasanti-bribery,anticorruptionandwhistleblowing.

Employment

The personal data ordinance, employment ordinance, minimum wages ordinance, non-discrimination policies and other ordinancesrelatedtooccupationalhealthandsafetyoftheemployeesarefollowedbytheGroup.

Forrecruitmentandselection,theGroupfollowsitsinternalpolicyforrecruitment.Thispolicyencouragestherecruitmentofthosecandidateswhohavethedesiredcompetenciesandattitudetoexecuteajob;andareequippedwithadequateexperienceandmerits.Thepolicyisnon-discriminatory,whereinthegender,religiousaffiliation,ethnicity,ageandraceofthecandidatearenotconsideredwhenrecruiting;onlythetalentisgiventhetoppriority.Also,thelabourcontractsaretimelydevelopedandastronglabourrelationshipismaintainedandpromotedinaccordancewiththelaw.Recruitmentisan essential process that caters to the recognition of talent, however, retaining that talent is also equally integral for attaininghigher rateofgrowthandsuccess. In this regard, theGrouphasestablishedapolicyonemployee’sremunerations and benefits, which emphasises on retaining the high-potential employees through entitlement of numerousspecialbenefits includedpaidbirthday leaveandmedicalbenefits.TheGroupalsooffersstaffbenefitsandsendsoutgiftstostaffduringfestivals.

Our staff handbook is well established and issued to all staff for their reference pertaining to office rules and benefits such astyphoonarrangements,annual leave,workinghours,officeattire, juryduty,salaryand lunchhoursaswellasotherrulesandbenefits.Weprovideemployeeswithproperwhistleblowingprocedures inplaceforouremployeestofollowwithoutfearofreprisalorreceivinganynegativefeedback.

Health and Safety

The Group is highly committed towards promoting a healthy and safe environment to all the employees as it facilitates a sustainablecorporateculture.Beinghealthynotonlycorrespondstopersonalbenefitsbutalsoincreasestheproductivityofindividuals,thusincreasingtheoverallefficiency.

To mitigate workplace accident, we always provide sufficient training to all new staff to ensure they are well trained and understoodtheworkingproceduresandequipmentbeingused.Thetrainingcontentsincludetheworkplacesafetyandproceduresofusingtheoperationalmachineries.Allequipment includingsanitary fitments,ventilationandfacilities forcleaning equipment are monitored by the Group periodically to remain at a high safety standards and well functional condition.TheGroupalsomakessure that firstaidkitsand fireextinguishingequipmentarepresentandplaced inappropriatelocationsinsideretailshops.



Wearealsotryingtomitigatetheriskofworkinjury,wehavesetupaninternalreportingsystemandrequirethestafftoreportevery injurytotheirsupervisor inordertoenhancethe internalguidanceand lowertheriskofre-occurrenceofsimilaraccident.

Duringthereportingperiod,theGroupwasnotawareofanymaterialincidentonthehealthandsafetyaspect.

Development and Training

The employees are rendered as the most valuable asset with which the business grows and flourishes in terms of both, monetaryandreputation.AttheGroup,theemployeesarevaluedandgivenimportancebynotonlyvarnishingtheirskillsforbusinessgrowthbutalsofortheircareergrowth.

Theemployeesaresubjectedtocontinuousandeffectivetrainingsthatpromoteknowledgeacquisitionandknowledgetransfer.Webelievetraininganddevelopmentof thestaff isoneof thekeytoourbusinesssuccess.Tomaintainthehigheststandardofourproductandservices,allstaffwill receiveonthe jobtrainingprovidedbytheirsupervisor.TheGroupalwaysencouragesandsupportsthestafftolookfortrainingopportunitiesbasedontheirjobdutiesandcareerdevelopmentneeds.

Moreover, suitableperformanceevaluationsareadopted formonitoring thedevelopmentof all theemployees.Comprehensive performance evaluation is effective in assessing the productivity and work efficiency of individuals that furtherassists in identifying theweaknessesandstrengths.A regular transparent reviewprocess isconducted forreviewingtheemployees’performance,attitudeandabilities.

Labour Standards

ItisessentialtonotethattheGroupiscommittedtowardsthegrowthandwell-beingofitsemployeesorworkforce.Allthelawsandregulationspertainingtothepreventionofchildandforcedlabourarestrictlyfollowed.

Duringthereportingperiod,theGroupwasnotawareofanynoncomplianceissueonthelabourstandards.



COMMUNITYThe Group has realised the significance of a sustainable community in facilitating the growth and development of all the businessoperations. It is theresponsibilityof theGrouptocontribute to thewell-beingof thecommunity inwhich itoperates.For thispurpose, theGrouphascontinuously involved incharitableactivities in thecommunitiesandencouragedtheemployeestoparticipateinin-houseorexternalcommunityactivities.

During the reporting period, the Group has supported the charitable activity organised by the Asbury Methodist Social Serviceandprovidedcharitablegiftstothepeopleneeded.TheeventaimedatsharingthehappinessandpromotinglovetothepovertyduringtheChineseNewYearFestival.TheGroupwillcontinuetoexploreothermeanstocontributemoretothecommunityandstrivetofacilitatethebuildingofahealthyandsustainablesocietyinthefuture.

ENVIRONMENTThe Group is devoted to conserving and protecting the environment, for which, several activities and measurements are undertaken.Moreover,theGrouphasrealiseditsroleasaresponsibleenterpriseandaimsatrecognizingtheeffectofitsoperationsontheenvironmentwhilefacilitatingitsfinancialgrowth.

Further, the Group performs its business operations in accordance with the environmental laws and abides by the applicable legislation.Adequatemeasurementsareundertaken tospreadenvironmentalawarenessamong theemployees,whicharetore-use,recycleanddisposethewastematerialsadequately.

Fuel consumption on the logistic arrangement

ThemajorsourceofairemissionsthatareindirectlygeneratedbytheGroupisattributedtothevehicleusagefromthedistributionbusiness.TheGrouphasoutsourcedthetransportationarrangementtoalogisticcompanyforthedistributionof food products to the self operated retail shops and customers including local supermarkets, pharmacies, convenience stores,departmentstores,bakeries,confectionerystoresandtradingcompanies.Theburningofpetroleumfor therunningofvehiclesproducesvariousairemissionssuchassulphuroxides,nitrogenoxidesandparticulatemattersemissions.

Inrespectofreducingthesulphuroxides,nitrogenoxidesandparticulatemattersemissions,theGroupcooperateswiththe logistic company by adopting a transportation day plan to ensure distributions are made on the same day for close locationswhichenablestheefficientuseofvehiclesandthe leastairemissionstobeproduced.Apart fromthat, theGroup has arranged direct delivery from the supplier to the retail shop location if possible and hence improve the operationalefficiencyandalsomitigatetheairpollutionfromthelogisticarrangement.

To further monitor the performance on this aspect, the Group will communicate with the logistic company to provide moredetailsonthefuelconsumptioninthebusinessoperation.



Energy usage management

The Group’s material resources consumption attributed to the purchased electricity and water by the retail shops, warehouse,centralkitchenandtheheadoffice.AstheGroupretailbusinessdoesnotcontainanyflamecooking,thegreenhouse gas emissions produced by the Group is basically indirect and attributed to the consumption of purchased electricityfrom“HKElectric”and“CLP”aswellaswaterfrom“WaterSuppliesDepartment”whichlocatedintheScope2and3ofgreenhousegasemissionarea.

TheGroupadherestotheconceptofenergyconservationandemissionreductionforgreenbusiness.Weaimtoimproveourenergyutilizationefficiencytoachieve low-carbonpracticesandemissionreductionthroughoutouroperationandstrivetosavetheresources.

TheGroupdeterminestomaximiseenergyconservationinitsofficeandretailshopsbypromotingefficientuseofpowerandadoptinggreen technologies.For instance, theGroupcontinues toupgradeequipmentsuchaspurchasingofenvironmental friendly electrical appliances with high efficient energy label, lighting and air-conditioning systems in order toincreaseenergyefficiency.Air-conditioningsystemscanbeadjustedtoaspecifictemperature,whichallowstheuserstosetatacomfortabletemperatureandavoidpowerwaste.Idlelightings,electricalappliances,aswellaselectricandelectronicdevices(includingbutnot limitedtocomputers,printers,photocopiersandairconditioners)willbeswitchedoff.Moreover,theGroupuseslightemittingdiode(“LED”)lightingandT5FluorescenttubesinsteadofincandescentlightbulbsinvariousareasoftheGroup’sofficeandretailshops.

TheGroupalsobelievesthatwater isessential toallcommunities.Wepromotewaterconservationtoouremployees.Reminders of water-saving responsibilities, in the form of notices and signs, are posted near to water outlets in the kitchensandoffices.TheGrouprecordsandanalysesthemonthlyconsumptionrateofwaterregularly.Afteridentifyingthecausesofhighratesofwaterconsumption,theGroupwilltakeremedialactiontominimisewateruse.

Packaging materials usage

Duringtheoperationofretailoutletssuchas“TenRen(天仁茗茶)”,“UncleTetsu(徹思叔叔)”and“JiuTangWu(九湯屋)”,theGroupconsumedseveralkindsofpackagingmaterialsinordertoprocessourproductstocustomers.Thepackagingmaterialsaregenerallypapercups,plasticpackagingofstraws,plasticbags,paperbagsandplasticdishes.

TheGroupisdedicatedtoconsumetheleastpackagingmaterialsaspossible. It istheGroup’spracticetoprovideasneededsoas toassess theapproximateamountofpackagingmaterialsneeded for theperiod.TheGroup isalsocommittedtosourcerecyclablepackagingmaterialsfromsupplierswitheco-friendlypracticeandengagement.

Wastage management

TheGroup’smaterialandmajorsolidand liquidwasteemission isattributedto theoperationof retailoutletswhereservesfoodandbeverageservicewhichfoodwasteandwastecookingoilarethemajoritywaste.

We ensure that we reduce waste through increasing our efficiency, avoiding over purchasing of ingredients and materials andothermethods inorder to limit theamountofwaste that isgeneratedduring theoperationofour retailshops.Generalwastageandfoodwasteisminimalforourcurrentoperation.TheGroupwillconsidertomaintainthewastagedataifthereisanychangeinourbusinessoperation.

The food waste and general waste are collected by the sanitary department of the government, while the Group has engagedaqualifiedcollectioncompanytocollectandreusewastecookingoilonaweeklybasis.Thewasteoilcollectioncompanyisalicensedfirmunderthe“EnvironmentalProtectionDepartment”registrationscheme.TheGrouppurchasesand prepares food on a need basis and we consider general waste and food waste has minimal effect to our ESG performancebasedonourcurrentpractice.TheGroupwillconsidercollectingwastagedatatoprovidemoredetailsonthewastagemanagementaspect.



For office general wastage management, the Group utilises e-communication when interacting with the customers to reducepaperusage.Also,forminimizingcarbonfootprintacrosstheoffice,theGrouppromotestheuseofe-statementforreducingpaperwork.

Environmental protection and reduction of wastage

TheGroup’semissionsaregenerallyindirect,non-hazardouswhichproducelessimpactduetothebusinessnature.TheGroup also promotes green approaches towards its operation practice for the retail outlets and office and we will further strengthenthepracticetocommittotheenvironmentalsustainability.

General practice

• Switchoffcomputers,printers,machinesandotherelectronicdevicesafterofficehoursorwhen leaving theworkplacetoreduceelectricityconsumption.

• Allwindowsanddoorsmustbeclosedwhentheair-conditionersturnon.

• Affixsaveenergypostersnearthemainswitchesinordertoremindouremployeesofenergysaving.

• Switchoffnon-essentiallightingifthereareonlyfewpeopleworkingintheofficeorretailoutlets.

Electricity and water usage management

• Allstaffshouldturnoffthewatertapwhenitisnotinuse.

• Allstaffshouldnotusethetapwaterforcleaningtheirbodyorclothing.

Wastage management

• Promote“bringyourownmugsortumblers”forbeveragepurchasebyprovidingdiscount.

• Disposetheusedoilinretailshoptoaqualifiedcollectorforrecycleuse.

• Returnusedtonercartridgestorespectivesuppliersforrecycling.

• Encourageduplexprintingandreuseofsingle-sideusedpaper.

• Refillpensinsteadofbuyinganewpenwhenneeded.

• Reducepaperprintingbyconductinge-filing.

• Encourageemployeestoadjustthemarginsandfontsizeofdocumentssoastooptimisetheuseofpaper.

As a socially responsible enterprise, protecting nature and the environment has become our inescapable social responsibility, theGroupconstantly looks forways tomaximisebenefitswithminimal resourceconsumptionandenvironmentalimpact,andcontinuetostriveforsustainabledevelopment.



Performance Summary

Emissions Indicators

Indicators 2018

TotalGHGemissions(tonnes) 21,659.52TotalGHGemissionsperfloorarea(tonnes/squarefeet) 0.29TotalGHGemissionsperemployee(tonnes/employee) 45.89Indirectemissions(tonnes)

• Scope2—Energyindirectemissions 1,283.82• Scope3—Otherindirectemissions 20,375.60

Electricity consumption

Indicators 2018

Totalelectricityconsumption(KWh) 2,248,894.78Totalelectricityconsumptionperfloorarea(KWh/squarefeet) 31.30Totalelectricityconsumptionperemployee(KWh/employee) 4,764.61

Packaging material consumption

Indicators 2018

Totalconsumption(tonnes) 3,687.03• Paper 1,868.46• Plastic 1,818.22• Fabric 0.35

Totalpackagingmaterialconsumptionperfloorarea(tonnes/squarefeet) 0.05Totalpackagingmaterialconsumptionperemployee(tonnes/employee) 3.96

Water consumption

Indicators 2018

Totalwaterconsumption(m3) 71,268.66Totalwaterconsumptionperfloorarea(m3/squarefeet) 1.00Totalwaterconsumptionperemployee(m3/employee) 150.99

1. Thegreenhousegas(“GHG”)emissionisprincipallyarisefromtheoperationalusethatgenerateindirectemissionfromthepackagingmaterials,electricity,freshwaterandsewagewaterusage.

2. TheGHGemission ispresent incarbondioxideequivalentbasedon the reporting requirementof theEPD’s“GuidelinestoAccount forandReportonGreenhouseGasEmissionsandRemovals forBuildings (Commercial,ResidentialorInstitutionalPurposes)inHongKong”issuedbyElectricalandMechanicalServicesDepartmentandEnvironmentalProtectionDepartmentandthe“CarbonAuditToolkit forSmallandMediumEnterprises inHongKong”publishedbytheUniversityofHongKongandCityUniversityofHongKong.



ESG Reporting Guide Content Index

Aspects, General disclosures and KPI Description 2018 ESG report

A.Environmental

Aspect A1: EmissionsGeneral Disclosure Information on:

(a) thepolicies;and Thisreport—Environment, page28

(b) compliancewithrelevantlawsandregulationsthat have a significant impact on the issuer relating to air and greenhouse gas emissions, discharges into water and land, and generation ofhazardousandnon-hazardouswaste

KPIA1.1 The types of emissions and respective emissions data Thisreport—Environment, page28Thisreport—Performance summary,page31

KPIA1.2 Greenhouse gas emissions in total and, where appropriate, intensity

Thisreport—Environment, page28Thisreport—Performance summary,page31

KPIA1.3 Totalhazardouswasteproducedand,where appropriate, intensity

Not applicable on the Group’sbusiness.

KPIA1.4 Totalnon-hazardouswasteproducedand,where appropriate, intensity

Thisreport—Environment, page29

KPIA1.5 Description of measures to mitigate emissions and results achieved


KPIA1.6 Descriptionofhowhazardousandnon-hazardous wastes are handled, reduction initiatives and results achieved






Aspect A2: Use of ResourcesGeneral Disclosure Policies on the efficient use of resources including

energy, water and other raw materialsThisreport—Environment, page29

KPIA2.1 Direct and/or indirect energy consumption by type in total and intensity


KPIA2.2 Water consumption in total and intensity Thisreport—Environment, page29Thisreport—Performance summary,page31

KPIA2.3 Description of energy use efficiency initiatives and results achieved

Thisreport—Environment, pages29to30

KPIA2.4 Description of whether there is any issue in sourcing water that is fit for purpose, water efficiency initiatives and results achieved


KPIA2.5 Total packaging material used for finished products and, if applicable, with reference to per unit produced


AspectA3:TheEnvironment and Natural ResourcesGeneral Disclosure Policies on minimising the issuer’s significant impact

on the environment and natural resourcesThisreport—Environment, page30

KPIA3.1 Description of the significant impacts of activities on the environment and natural resources and the actions taken to manage them






B.Social

Employment and Labour PracticesAspect B1: EmploymentGeneral Disclosure Information on:

(a) thepolicies;and Thisreport—Workplace, page26

(b) compliancewithrelevantlawsandregulationsthat have a significant impact on the issuer relating to compensation and dismissal, recruitment and promotion, working hours, rest periods, equal opportunity, diversity, anti-discrimination, and other benefits and welfare

Aspect B2: Health and SafetyGeneral Disclosure Information on:

(a) thepolicies;and Thisreport—Workplace, pages26to27

(b) compliancewithrelevantlawsandregulationsthat have a significant impact on the issuer relating to providing a safe working environment and protecting employees from occupational hazards

AspectB3:DevelopmentandTrainingGeneral Disclosure Policies on improving employees’ knowledge and skills

fordischargingdutiesatwork.Descriptionoftraining activities

Thisreport—Workplace, page27

AspectB4:LabourStandardsGeneral Disclosure Information on:

(a) thepolicies;and Thisreport—Workplace, page27

(b) compliancewithrelevantlawsandregulationsthat have a significant impact on the issuer relating to preventing child and forced labour





Operating PracticesAspectB5:SupplyChainManagementGeneral Disclosure Policies on managing environmental and social risks

of the supply chainThisreport—Marketplace, page24

AspectB6:ProductResponsibilityGeneral Disclosure Information on:

(a) thepolicies;and Thisreport—Marketplace, pages24to25

(b) compliancewithrelevantlawsandregulationsthat have a significant impact on the issuer relating to health and safety, advertising, labelling and privacy matters relating to products and services provided and methods of redress

AspectB7:Anti-corruptionGeneral Disclosure Information on:

(a) thepolicies;and Thisreport—Marketplace, page25

(b) compliancewithrelevantlawsandregulationsthat have a significant impact on the issuer relatingtobribery,extortion,fraudandmoneylaundering

CommunityAspectB8:CommunityInvestmentGeneral Disclosure Policies on community engagement to understand the

needs of the communities where the issuer operates and to ensure its activities takes into consideration the communities’ interests

Thisreport—Community, page28


REPORT OF THEDIRECTORS

DIRECTORS’ REPORTOur Board is pleased to present their report together with the audited consolidated financial statements of our Group for theyearended31March2018.

PRINCIPAL ACTIVITIESThe principal activity of our Company is investment holding and its subsidiaries principally engage in the distribution and retailoffoodandbeverageproducts.

AnanalysisofourGroup’sperformance for theyearbyoperatingsegments issetout innote5 to theconsolidatedfinancialstatements.

RESULTS AND APPROPRIATIONSTheresultsofourGroupfortheyearended31March2018aresetoutintheconsolidatedstatementofcomprehensiveincomeonpage51ofthisreport.

OurBoardrecommendsthepaymentofa finaldividendofHK3centspershare for theyearended31March2018,subjecttotheapprovalofShareholdersattheannualgeneralmeeting(the“AGM”),totheShareholderswhosenamesappearontheregisterofmembersoftheCompanyonMonday,10September2018.

CLOSURE OF REGISTER OF MEMBERSShareholderswhosenamesappearontheregisterofmembersofourCompanyonMonday,27August2018areentitledtoattendandvoteat theAGMofourCompany.The registerofmembersofourCompanywillbeclosed fromWednesday,22August2018toMonday,27August2018,bothdays inclusive. Inorder toqualify forattendingandvoting at the AGM, shareholders should ensure that all properly completed transfer forms accompanied by the relevant sharecertificatesmustbe lodged for registrationwith theCompany’sHongKongbranchshare registrar,UnionRegistrarsLimitedatSuites3301–04,33/F.,TwoChinachemExchangeSquare,338King’sRoadNorthPoint,HongKongnolaterthan4:00p.m.onTuesday,21August2018.

Fordeterminingtheentitlementtotheproposedfinaldividendfortheyearended31March2018(subjecttotheapprovaloftheshareholdersoftheCompanyattheAGM),theregisterofmembersoftheCompanywillbeclosedfromMonday,3September2018toMonday,10September2018(bothdaysinclusive),duringwhichperiodnotransferofshareswillberegistered. Inorder toqualify for theproposedfinaldividend,all transferdocumentsaccompaniedbytherelevantsharecertificatesmustbe lodgedwith thebranchshareregistrarandtransferofficeof theCompany inHongKong,UnionRegistrarsLimited,atSuites3301–04,33/F.,TwoChinachemExchangeSquare,338King’sRoad,NorthPoint,HongKongforregistrationnotlaterthan4:00p.m.onFriday,31August2018.

BUSINESS REVIEWAreviewofthebusinessofourGroupduringFY2018andadiscussiononourGroup’sfuturebusinessdevelopmentaresetoutinthe“Chairman’sStatement”aswellasthe“ManagementDiscussionandAnalysis”onpages4to5andpages6to12ofthisreportrespectively.AnanalysisofourGroup’sperformanceduringFY2018usingfinancialkeyperformanceindicatorsissetoutin“ManagementDiscussionandAnalysis”onpages6to12ofthisreport.Inaddition,theGroup’senvironmentalpoliciesandperformanceissetoutinthe“Environmental,SocialandGovernanceReport”onpages23to35ofthisreport.

SHARE CAPITALDetailsof themovements in thesharecapitalofourCompanyaresetout innote23 to theconsolidated financialstatements.



RESERVESDetailsofthemovementsinthereservesofourGroupandourCompanyduringFY2018aresetoutintheconsolidatedstatementofchangesinequity,note24andnote32totheconsolidatedfinancialstatements.

DISTRIBUTABLE RESERVESAsat31March2018, the reservesofourCompanyavailable fordistribution to theshareholdersofourCompanyamountedtoapproximatelyHK$172.0million.

PRE-EMPTIVE RIGHTSThere is no provision for pre-emptive rights under the Company’s articles of association or the laws of the Cayman IslandswhichwouldobligeourCompanytooffernewsharesonaproratabasistoexistingshareholders.

FINANCIAL INFORMATION SUMMARYAsummaryoftheresultsandtheassetsandliabilitiesoftheGroupissetoutonpage112oftheannualreport.

PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIESNeither the Company nor any of its subsidiaries has purchased, sold or redeemed any of the Company’s listed securities sincetheListingDateanduptothedateofthisreport.

SHARE OPTION SCHEMETheCompanyhasadoptedashareoptionscheme(the“ShareOptionScheme”)on12February2018.Asatthedateofthisreport,thetotalnumberofshareswhichmaybeissueduponexerciseofalloptionstobegrantedundertheShareOptionSchemeshallnotinaggregateexceed40,000,000Shares,being10%ofthetotalnumberofSharesinissueatthetimedealings intheSharesfirstcommenceontheStockExchange.ThetotalnumberofShares issuedandtobeissuedupontheexerciseof theoptionsgrantedor tobegrantedtoeacheligibleparticipantundertheShareOptionSchemeandanyotherschemesof theCompany (includingexercised,cancelledandoutstandingoptions) inany12-monthperioduptothedateofgrantshallnotexceed1%oftheSharesinissueasatthedateofgrant.

The purpose of the Share Option Scheme is to enable our Group to grant options to selected participants as incentives orrewardsfortheircontributiontoourGroup.TheBoardmay,atitsdiscretion,grantanoptiontotheeligibleparticipantstosubscribe for thesharesof theCompanyatanexercisepriceandsubject to theother termsof theShareOptionScheme.

TheShareOptionSchemewill remain in force foraperiodof tenyears from itseffectivedate (i.e.willexpireon12February2028).Subjecttocertainrestrictionscontained intheShareOptionScheme,anoptionmaybeexercised inaccordance with the terms of the Share Option Scheme and the terms of grant thereof at any time during the applicable optionperiod,whichisnotmorethantenyearsfromthedateofgrantofoption.Thereisnogeneralrequirementontheminimum period for which an option must be held or the performance targets which must be achieved before an option canbeexercisedunderthetermsoftheShareOptionScheme.However,atthetimeofgrantinganyoption,theBoardmay,onacasebycasebasis,makesuchgrantsubjecttosuchconditions,restrictionsor limitationsincludingbutnotlimited to those in relation to the minimum period of the options to be held and/or the performance targets to be achieved astheBoardmaydetermineinitsabsolutediscretion.

TheBoardconfirmsthattheShareOptionSchemeisincompliancewithChapter17oftheListingRules.Asat31March2018,nooptionhadbeengranted,exercised,cancelledor lapsedunder theShareOptionScheme.A totalof40,000,000SharesareavailableforissueundertheShareOptionScheme,representingapproximately10%ofthetotalissuedcapitaloftheCompanyasat31March2018.



RETIREMENT BENEFIT SCHEME(S)OurGroupparticipated inretirementbenefitscheme(s) inaccordancewiththerelevantrulesandregulations inHongKong.Particularsoftheretirementbenefitscheme(s)aresetoutinnote10totheconsolidatedfinancialstatements.

SUBSIDIARIESDetailsoftheCompany’sprincipalsubsidiariesasof31March2018aresetoutinnote15totheconsolidatedfinancialstatements.

MAJOR CUSTOMERS AND SUPPLIERSDuringFY2018,ourfivelargestcustomeraccountedfor32.4%ofourtotalrevenue,ofwhich22.9%ofourtotalrevenuewasgeneratedfromour largestcustomer.DuringFY2018,our five largestsuppliersaccountedfor60.1%ofour totalpurchasesofwhich33.7%ofourtotalpurchaseswasgeneratedfromourlargestsupplier.NoneofourDirectorsoranyoftheirrespectiveassociatesoranyshareholderwhichtothebestknowledgeofourDirectors,whoownmorethan5%of the Company’s issued share capital, had any interest in any of our Group’s five largest customers or suppliers during FY2018.

DIRECTORSTheDirectorsduringFY2018anduptothedateofthisreportareasfollows:

Executive Directors:Mr.ChanKamChuenAndrew(ChiefExecutiveOfficer&Chairman) (appointedon21August2017)Mr.ChanSiuCheungStephen (appointedon21August2017)Mr.ChauWingKongWilliam (appointedon21August2017)Ms.TinHauLingJanny (appointedon14November2017)

Independent Non-Executive Directors:Mr.YuKaHoBernard (appointedon12February2018)Mr.SeeHungYanPeter (appointedon12February2018)Mr.ChungKwokMoJohn (appointedon12February2018)

TherehavebeennochangesinDirectorsduringtheperiodfromtheListingDateto31March2018.

PursuanttoArticles84(1)and(2)oftheArticlesofAssociation,one-thirdoftheDirectorsforthetimebeing(or, if theirnumberisnotamultipleofthree,thenumbernearesttobutnotlessthanone-third)shallretirebyrotationateachAGM.A retiring Director shall be eligible for re-election and shall continue to act as a Director throughout the meeting at which he/sheretires.TheDirectorstoretirebyrotationshallincludeanyDirectorwhowishestoretireandnottoofferhimself/herselfforre-election.Inaddition,codeprovision(“CodeProvision”)A.4.2oftheCGCodestipulatesthateachDirectorshouldbesubjecttoretirementbyrotationatleastonceeverythreeyears.

Mr.ChanSiuCheungStephen,Mr.ChauWingKongWilliamandMr.ChungKwokMoJohnshallretirebyrotationattheforthcomingAGMand,beingeligible,offerthemselvesforre-election.TheCompanyhasreceivedannualconfirmationofindependencefromthethreeIndependentnon-executiveDirectorsinaccordancewithRule3.13oftheListingRulesandconsidersthemtobeindependent.



BIOGRAPHIES OF DIRECTORS AND SENIOR MANAGEMENTBiographicaldetailsof theDirectorsandtheseniormanagementof theGrouparesetoutonpages13to15of thisreport.

DIRECTORS’ SERVICE CONTRACTS/LETTERS OF APPOINTMENTEachoftheexecutiveDirectorshasrespectivelyenteredintoaservicecontractcommencingfromtheListingDatewiththeCompanyforaninitialtermofthreeyears.Theservicecontractsmaybeterminatedinaccordancewiththerespectivetermsoftheservicecontracts.

Thethree independentnon-executiveDirectorswereappointedpursuanttotherespective letterofappointmentforaninitialtermofthreeyearscommencingfromtheListingDate.Thelettersofappointmentmaybeterminatedinaccordancewiththerespectivetermsofthelettersofappointment.

Save as aforesaid, none of our Directors has or is proposed to enter into a service contract or letter of appointment with ourCompanyoranyofoursubsidiaries(otherthancontractsexpiringordeterminablebytheemployerwithinoneyearwithoutthepaymentofcompensation(otherthanstatutorycompensation)).

PERMITTED INDEMNITY PROVISIONDuring the financial year and up to date of this report, the Company has in force indemnity provisions for the benefit of theDirectors.Thepermitted indemnityprovisionsareprovidedaccording to theArticlesofAssociationsand theCompany has maintained the directors and officers liability insurance in respect of potential liability and costs associated withlegalanyproceedingswhichmaybebroughtagainsttheDirectorsoftheCompany.

DIRECTORS’ AND CHIEF EXECUTIVE’S INTERESTS AND SHORT POSITIONS IN SHARES AND UNDERLYING SHARESAsat31March2018,theinterestsandshortpositionsoftheDirectorsandthechiefexecutiveoftheCompanyinanyshares, underlying shares or debentures of the Company or any of its associated corporations within the meaning of Part XVoftheSecuritiesandFuturesOrdinance(the“SFO”)whichhadbeennotifiedtotheCompanyandtheStockExchangepursuanttoDivisions7and8ofPartXVoftheSFO(includinginterestsand/orshortpositionsofwhichtheyweretakenordeemedtohaveunderprovisionsoftheSFO),orwhichwererequiredtobeenteredintheregistermaintainedbytheCompanypursuant toSection352of theSFOorwhichwere required tobedisclosed,under theModelCode forSecuritiesTransactionsbyDirectorsofListedIssuersassetoutinAppendix10totheListingRules(the“ModelCode”)were as follows:

Name of Director Nature of InterestNumber of

shares

Percentage oftotal issuedShares (%)

Mr.ChanKamChuenAndrew Interest in a controlled corporation (note1) 100,000,000(longposition)

25.0

Mr.ChanSiuCheungStephen Interest in a controlled corporation (note2) 100,000,000(longposition)

25.0

Mr.ChauWingKongWilliam Interest in a controlled corporation (note3) 100,000,000(longposition)

25.0

Ms.TinHauLingJanny Interest of spouse (note4) 100,000,000(longposition)

25.0



Notes:

1. TheCompanywasdirectlyownedasto25.0%(being100,000,000Shares)byACACInvestmentLimited,whichinturnwasownedasto100%byMr.AndrewChan.ByvirtueoftheSFO,Mr.AndrewChanisdeemedtobeinterestedinthesamenumberofSharesheldbyACACInvestmentLimited.

2. TheCompanywasdirectlyownedasto25.0%(being100,000,000Shares)bySCSCHoldingsLimited,whichinturnwasownedasto100%byMr.StephenChan.ByvirtueoftheSFO,Mr.StephenChanisdeemedtobeinterestedinthesamenumberofSharesheldbySCSCHoldingsLimited.

3. TheCompanywasdirectlyownedasto25.0%(being100,000,000Shares)byCCSTInvestmentLimited,whichinturnwasownedasto100%byMr.WilliamChau.Byvirtueof theSFO,Mr.Chau isdeemedtobe interested inthesamenumberofSharesheldbyCCSTInvestmentLimited.

4. Ms.JannyTinisthespouseofMr.AndrewChan.ByvirtueoftheSFO,Ms.JannyTinwasdeemedtobeinterestedinthesamenumberofSharesinwhichMr.AndrewChanwasdeemedtobeinterestedundertheSFO.

Saveasdisclosedabove,asat31March2018,noneof theDirectorsnorchiefexecutiveof theCompanyhadanyinterests or short positions in the shares, underlying shares or debentures of the Company or its associated corporations (withinthemeaningofPartXVoftheSFO)whicharerequiredtobenotifiedtotheCompanyandtheStockExchangepursuant toDivisions7and8ofPartXVof theSFO(including interestsorshortpositionswhichtheyweretakenordeemedtohaveundersuchprovisionsoftheSFO),orarerequired,pursuanttoSection352oftheSFO,tobeenteredintheregisterreferredtotherein,orasotherwisenotifiedtotheCompanyandtheStockExchangepursuanttotheModelCodeandtheCodeofConduct.

SUBSTANTIAL SHAREHOLDERS’ INTERESTS IN SHARES AND UNDERLYING SHARESAsat31March2018,sofarastheDirectorsareaware,thefollowingpersons(otherthantheDirectorsorchiefexecutiveof theCompany),eitherdirectlyor indirectly,had interestsorshortpositions inthesharesorunderlyingsharesof theCompany,whicharerequiredtobedisclosedunderprovisionsofDivisions2and3ofPartXVoftheSFO,orwhichwillberequiredtoberecordedintheregistertobekeptpursuanttosection336oftheSFO:

Name of Shareholder Nature of InterestNumber of

Shares

Percentage oftotal issuedShares (%)

ACAC Investment Limited Beneficial interest (note1) 100,000,000(longposition)

25.0

SCSC Holdings Limited Beneficial interest (note2) 100,000,000(longposition)

25.0

Ms.CheungChoiNgo Interest of spouse (note3) 100,000,000(longposition)

25.0

CCST Investment Limited Beneficial interest (note4) 100,000,000(longposition)

25.0

Ms.TanChingBee Interest of spouse (note5) 100,000,000(longposition)

25.0



Notes:

1. TheentireissuedsharecapitalofACACInvestmentLimitediswholly-ownedbyMr.AndrewChan.

2. TheentireissuedsharecapitalofSCSCHoldingsLimitediswholly-ownedbyMr.StephenChan.

3. Ms.CheungChoiNgoisthespouseofMr.StephenChan.ByvirtueoftheSFO,Ms.CheungChoiNgowasdeemedtobeinterestedinthesamenumberofSharesinwhichMr.StephenChanwasdeemedtobeinterestedundertheSFO.

4. TheentireissuedsharecapitalofCCSTInvestmentLimitediswholly-ownedbyMr.WilliamChau.

5. Ms.TanChingBeeisthespouseofMr.WilliamChau.ByvirtueoftheSFO,Ms.TanChingBeewasdeemedtobeinterestedinthesamenumberofSharesinwhichMr.WilliamChauwasdeemedtobeinterestedundertheSFO.

Saveasdisclosedabove,asat31March2018,theDirectorshadnotbeennotifiedofanyothercorporationorindividual(other than theDirectorsorchiefexecutiveof theCompany)whohad interestsorshortpositions in thesharesorunderlyingsharesoftheCompany,whicharerequiredtobedisclosedunderprovisionofDivisions2and3ofPartXVoftheSFO,orwhicharerequiredtoberecordedintheregisterrequiredtobekeptpursuanttoSection336oftheSFO.

DIRECTORS’ RIGHT TO ACQUIRE SHARES OR DEBENTURESSaveasdisclosed in thisreport,atnotimeduringtheyearended31March2018wererightstoacquirebenefitsbymeans of the acquisition of shares in or debentures of the Company granted to any Director or their respective associates nor was the Company and any of its subsidiaries a party to any arrangement to enable the Directors or their respective associatestoacquiresuchrightsinanyotherbodycorporate.

DIRECTORS’ INTERESTS IN CONTRACTS OF SIGNIFICANCENo contracts of significance to which the Company or any of its subsidiaries was a party and in which any Director or any entity connected to a Director had a material interest, whether directly or indirectly, subsisted at the end of the financial yearended31March2018oratanytimeduringtheyear.

CONNECTED TRANSACTIONS AND CONTINUING CONNECTED TRANSACTIONSDetailsof thecontinuingconnectedtransactionsof theGroupduringFY2018havebeendisclosed intheProspectus.Certaincontinuingconnectedtransactionsareexemptedfromthereporting,announcement,shareholders’approvalandannual review requirementsunder theListingRules.Apart from the followingnon-exemptcontinuingconnectedtransactions, there were no transactions which need to be disclosed as connected transactions and continuing connectedtransactionsinaccordancewiththeListingRules.

Leasing of properties

WiseFineEnterpriseLimitedenteredintofivetenancyagreementswith(i)BestSourceEnterpriseLimited(“BestSource”)on22November2017and (ii)BestSourceandMs.JannyTinon22November2017, respectively (collectively, the“TenancyAgreements”),pursuanttowhichcertainpropertiesinYauTong,HongKong(collectively,the“Premises”)areleasedtoourGroupforafixedtermofthreeyearssubjecttothetermsandconditionsoftheTenancyAgreements.



BestSourceandMs.JannyTinaretheconnectedpersonsofourCompanysince:

(i) BestSourceisownedasto33.33%byeachofMr.AndrewChan,Mr.StephenChanandMr.WilliamChau,ourexecutiveDirectorsandsubstantialshareholders,hence it isanassociateofeachofMr.AndrewChan,Mr.StephenChanandMr.WilliamChau;and

(ii) Ms.JannyTin,beingthespouseofMr.AndrewChan,isalsoourexecutiveDirector.

AccordingtoInternationalValuationLimited,anindependentqualifiedvaluerengagedbyourGroup,themonthlyrentalpayable under the Tenancy Agreements for the Premises are fair and reasonable, consistent with the prevailing market unitrentsforsimilarpremisesinthevicinityasatthedateoftheTenancyAgreements,andonnormalcommercialterms.

Duringtheperiod fromthe22November2017to31March2018, theaggregaterentalexpenses (togetherwith theaggregateservicechargesandotheroutgoings)paidbytheGroupwasapproximatelyHK$2,775,000,whichdidnotexceedtheannualcapofHK$2,783,000fortheyearended31March2018asdisclosedintheProspectus.

The transactions contemplated under the Tenancy Agreements also constitute related party transactions of our Company underHKFRS,detailsofwhicharesetoutinnote31totheconsolidatedfinancialstatements.

Provision of Logistic Services

DuringFY2018,BoShingLogisticLimited (“BoShing”)hasbeenproviding logisticservices fordeliveryofproducts inHongKongfromoursupplierstoourGroupand/or fromourGrouptoourcustomers (the“LogisticServices”).On12February2018,BoShingenteredintoamasteragreement(the“MasterAgreementwithBoShing”)withourCompany,pursuant towhichBoShingagreedtoprovideuswith theLogisticServices foraperiod fromtheListingDateto31March2020.

AsBoShing iswholly-ownedby thesister (as to50%)andthebrother-in-law (as to50%)ofMr.WilliamChau,ourexecutiveDirectorandsubstantialshareholder,itisdeemedtobeaconnectedpersonofourCompany.

Theservices fee ispayablebyourGrouponamonthlybasispursuant totheMasterAgreementwithBoShing.Theterms and conditions of the transactions contemplated under the Master Agreement with Bo Shing are on normal commercial terms, negotiated on an arm’s length basis, fair and reasonable and no less favourable to our Group than thoseofferedbyotherindependentthirdpartiesforsimilarservices.

DuringtheperiodfromtheListingDateto31March2018,theaggregateservicefeepaidbytheGrouptoBoShingwasapproximatelyHK$725,000,whichdidnotexceedtheannualcapofHK$950,000fortheyearended31March2018asdisclosedintheProspectus.



ANNUAL REVIEW OF THE CONTINUING CONNECTED TRANSACTIONSTheindependentnon-executiveDirectorshavereviewedtheabovenon-exemptcontinuingconnectedtransactionsandconfirmedthat(a)theabovenon-exemptcontinuingconnectedtransactionshavebeenenteredintoonanarmlength’sbasisand intheordinaryandusualcourseofbusinessofourGroup; (b) thetermsofeachof theabovenon-exemptcontinuingconnectedtransactionsfortheyearended31March2018areonnormalcommercialtermsorbetter,fairandreasonable,andintheinterestsofourCompanyandourShareholderstakenasawhole;and(c)theannualcapsofeachoftheabovenon-exemptcontinuingconnectedtransactionsfortheyearended31March2018arefairandreasonableandintheinterestsofourCompanyandourShareholderstakenasawhole.

Pursuant toRule14A.56of theListingRules, theCompany’sauditorwasengagedtoperformcertainprocedures inrespectofthecontinuingconnectedtransactionssetoutaboveinaccordancewithHongKongStandardonAssuranceEngagements3000“AssuranceEngagementsOtherthanAuditsorReviewsofHistoricalFinancialInformation”andwithreferencetoPracticeNote740“Auditor’sLetteronContinuingConnectedTransactionsundertheListingRules”issuedbytheHongKong InstituteofCertifiedPublicAccountants.Theauditorhas issuedanunqualified lettercontaining itsfindingsandconclusionsinrespectofthecontinuingconnectedtransactionssetoutabove.

TheCompanyhascompliedwithdisclosurerequirements inaccordancewithChapter14AoftheListingRulesfortheyearended31March2018.

RELATED PARTY TRANSACTIONSDetails of related party transactions undertaken in the normal course of business of the Group are provided under note 31totheconsolidated financialstatements.Saveasthecontinuingconnectedtransactionssetout in theparagraphheaded “Connected transactionsandcontinuingconnected transactions”,noneof the relatedparty transactionsconstitutesaconnectedtransactionasdefinedundertheListingRulesthatisrequiredtobedisclosedinthisreport.

REMUNERATION FOR DIRECTORSIncompliancewith theCGCodeassetout inAppendix14 to theListingRules, theCompanyhasestablishedaremunerationcommitteeto formulateremunerationpolicies.TheDirectors’ remunerationaresubject toShareholders’approvalatgeneralmeetings.OtheremolumentsaredeterminedbytheBoardwithreferencetoDirectors’dutiesandresponsibilities, therecommendationsof theremunerationcommitteeandtheperformanceandresultsof theGroup.DetailsoftheremunerationoftheDirectorsaresetoutinnote33totheconsolidatedfinancialstatements.

CHANGES IN INFORMATION OF DIRECTORSSubsequent to the publication of the Prospectus, the changes in information of Directors are set out below pursuant to Rule13.51(2)andRule13.51B(1)oftheListingRules:

Mr.YuKaHoBernard,anindependentnon-executiveDirector,hadceasedtobeanexecutivedirectorandtheheadoffixedincometrading,sales&tradingdivisioninICBCInternationalHoldingsLimitedfromJune2018.SinceJune2018,hehasbeenservingasanexecutivedirectorof fixed income,currencyandcommoditiesdepartment inHaitongInternationalManagementServicesCompanyLimited,wherehe is responsible forproprietary trading in fixed income,currencyandcommoditiesproducts.

Mr.ChungKwokMoJohn,anindependentnon-executiveDirector,hasbeenservingasavicepresidentofYongshengAdvancedMaterialsCompanyLimited,acompany listedontheStockExchange (stockcode:3608)sinceFebruary2018.



Save as the changes as mentioned above, there is no changes in the information of the Directors subsequent to the publicationoftheProspectus.

SUFFICIENCY OF PUBLIC FLOATThe Company has maintained a sufficient public float as required under the Listing Rules throughout the period from the ListingDateuptothedateofthisreport.

DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTERESTS IN COMPETING BUSINESSAsat31March2018,apartfrom(i)theretailoffoodproductsbyNewOdaibawhichisownedbyMs.TanChingBee,thespouseofMr.WilliamChau; (ii) thewholesaleofconfectionaryproductsbyBestSkyHongKongLimitedwhich isownedasto60%byMr.StephenChan;and(iii)thewholesaleofconfectionaryproductsby賓仕佳貿易(深圳)有限公司 (BestSky (Shenzhen)TradingCompanyLimited*)which isownedas to100%byBestSkyHongKongLimitedasdisclosed in the Prospectus, none of the Directors and substantial shareholders of the Company and its subsidiaries, or their respective close associate, had interests in businesses which compete or are likely to compete, either directly or indirectly, with the businesses of the Company and its subsidiaries as required to be disclosed pursuant to the Listing Rules.

DEED OF NON-COMPETITIONThe substantial Shareholders have confirmed to the Company of their full compliance with the non-competition undertakingsandothertermsprovidedtotheCompanyunderthedeedofnon-competitiondated12February2018(the“DeedofNon-Competition”).

Theindependentnon-executiveDirectorshavereviewedthestatusofcomplianceoftheDeedofNon-Competitionandconfirmed that all the undertakings under the Deed of Non-Competition have been complied with by the substantial Shareholdersanddulyenforcedduringtheyearended31March2018.

CORPORATE GOVERNANCETheCompany’scorporategovernanceprinciplesandpracticesaresetout in the“CorporateGovernanceReport”onpages16to22ofthisreport.

USE OF PROCEEDS FROM INITIAL PUBLIC OFFERINGThestatusofthenetproceedsfromtheListingaresetoutinthe“ManagementDiscussionandAnalysis“onpage12ofthisreport.



AUDITORPricewaterhouseCoopers will retire at the conclusion of the forthcoming AGM of the Company and be eligible to offer themselvesforre-appointment.AresolutionwillbeproposedattheAGMtobeheldonMonday,27August2018tore-appointPricewaterhouseCoopersastheCompany’sauditoruntil theconclusionofthenextAGMandtoauthorisetheBoardtofixtheirremuneration.

* TheEnglishnameofthePRCentitymentionedhereinandmarkedwith“*”isatranslationfromitsChinesenameandisforidentificationpurposesonly.

On behalf of the Board

Mr. Chan Kam Chuen AndrewChairman and Chief Executive OfficerHongKong,26June2018


INDEPENDENT AUDITOR’S REPORT

To the Shareholders of B & S International Holdings Ltd.(incorporated in the Cayman Islands with limited liability)

OPINIONWhat we have audited

Theconsolidated financialstatementsofB&S InternationalHoldingsLtd. (the“Company”)and itssubsidiaries (the“Group”)setoutonpages51to111,whichcomprise:

• theconsolidatedstatementoffinancialpositionasat31March2018;• theconsolidatedstatementofcomprehensiveincomefortheyearthenended;• theconsolidatedstatementofchangesinequityfortheyearthenended;• theconsolidatedstatementofcashflowsfortheyearthenended;and• thenotestotheconsolidatedfinancialstatements,whichincludeasummaryofsignificantaccountingpolicies.

Our opinion

In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of the Groupasat31March2018,andofitsconsolidatedfinancialperformanceanditsconsolidatedcashflowsfortheyearthenendedinaccordancewithHongKongFinancialReportingStandards(“HKFRSs”)issuedbytheHongKongInstituteofCertifiedPublicAccountants (“HKICPA”)andhavebeenproperlyprepared incompliancewith thedisclosurerequirementsoftheHongKongCompaniesOrdinance.

BASIS FOR OPINIONWeconductedouraudit inaccordancewithHongKongStandardsonAuditing(“HKSAs”) issuedbytheHKICPA.Ourresponsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the ConsolidatedFinancialStatementssectionofourreport.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

Independence

Weare independentoftheGroupinaccordancewiththeHKICPA’sCodeofEthicsforProfessionalAccountants(“theCode”),andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeCode.



KEY AUDIT MATTERSKeyauditmattersare thosematters that, inourprofessional judgment,wereofmostsignificance inourauditof theconsolidatedfinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditoftheconsolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opiniononthesematters.

Thekeyauditmatteridentifiedinourauditisrevenuerecognition.

Key Audit Matter How our audit addressed the Key Audit Matter

Revenue recognition

RefertoNote2.19fortheGroup’saccountingpoliciesonrevenuerecognitionandNote6 for theanalysisofrevenueof theGroup for theyearended31March2018.

The Group recognised revenue from sales of goods amounted toHK$452million for theyearended31March2018,ofwhichHK$255millionwerecontributedfromdistributionsegmentandHK$197millionwerecontributedfromretailsegment.

Revenue from sales of goods is recognised when the amount of revenue can be reliably measured and the risk and reward of the products have been transferred to the customers, which is usually at the time when the products are delivered to the customers for distribution segmentandatpointofsalefortheretailsegment.

We focused on revenue recognit ion due to i ts magnitudeandthenatureoftheGroup’sbusiness.Therecording of revenue involves h igh volume of transactions derived from sales to multiple customers in different locations such that we have incurred significant timeandresourcesincarryingoutourworkinthisarea.

We understood, evaluated and validated management’s key internalcontrolsinitsrevenuerecognitionprocess.

For revenue from distribution segment, we tested samples of sales transactions against sales orders, shipping documents, invoices and other supporting documents where relevant.To theextent that thosesaleshavebeensettled, we also reviewed bank advice and/or bank statements in support of the payment made by the customers.Furthermore,wetestedsalestransactionsthattook place shortly before and after the balance sheet date to assess whether sales transactions were recognised in the correctreportingperiods.

For revenue from retail segment, we tested samples of sales transactions against daily sales reports for self-owned stores or sales statements for concessionary stores and reviewed bank advice and/or bank statements in support of thepaymentreceived.

Our work also included testing of a sample of revenue-related journalentrieson riskbasedcriteriaby inquiringmanagement of their nature and inspecting the relevant supportingdocuments.

Based on the procedures performed above, we found that the Groups’ sales transact ions being tested were recognised in a manner consistent with the Group’s revenue recognitionaccountingpolicy.



OTHER INFORMATIONThedirectorsof theCompanyare responsible for theother information.Theother informationcomprisesallof theinformation included in the annual report other than the consolidated financial statements and our auditor’s report thereon.

Ouropinionontheconsolidatedfinancialstatementsdoesnotcovertheother informationandwedonotexpressanyformofassuranceconclusionthereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we arerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.

RESPONSIBILITIES OF DIRECTORS AND AUDIT COMMITTEE FOR THE CONSOLIDATED FINANCIAL STATEMENTSThe directors of the Company are responsible for the preparation of the consolidated financial statements that give a true andfairview inaccordancewithHKFRSs issuedbytheHKICPAandthedisclosurerequirementsof theHongKongCompanies Ordinance, and for such internal control as the directors determine is necessary to enable the preparation of consolidatedfinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

In preparing the consolidated financial statements, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternativebuttodoso.

TheauditcommitteeisresponsibleforoverseeingtheGroup’sfinancialreportingprocess.



AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTSOurobjectivesaretoobtainreasonableassuranceaboutwhethertheconsolidatedfinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Wereportouropinionsolelytoyou,asabody,andfornootherpurpose.Wedonotassumeresponsibilitytowardsoracceptliabilitytoanyotherpersonforthecontentsofthisreport.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithHKSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterial if, individuallyor intheaggregate,theycouldreasonablybeexpectedto influencetheeconomicdecisionsofuserstakenonthebasisof theseconsolidatedfinancialstatements.

AspartofanauditinaccordancewithHKSAs,weexerciseprofessionaljudgmentandmaintainprofessionalscepticismthroughouttheaudit.Wealso:

• Identifyandassesstherisksofmaterialmisstatementof theconsolidatedfinancialstatements,whetherduetofraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficientandappropriate toprovideabasis forouropinion.Theriskofnotdetectingamaterialmisstatementresulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations,ortheoverrideofinternalcontrol.

• Obtainanunderstandingof internalcontrol relevant to theaudit inorder todesignauditprocedures thatareappropriate in thecircumstances,butnot for thepurposeofexpressinganopinionontheeffectivenessof theGroup’sinternalcontrol.

• Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebythedirectors.

• Concludeontheappropriatenessofthedirectors’useofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexists related toeventsorconditions thatmaycastsignificantdoubtontheGroup’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,weare required todrawattention inourauditor’s report to the relateddisclosures in theconsolidatedfinancialstatementsor, ifsuchdisclosuresare inadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheGrouptoceasetocontinueasagoingconcern.

• Evaluate theoverallpresentation,structureandcontentof theconsolidated financialstatements, including thedisclosures, and whether the consolidated financial statements represent the underlying transactions and events in amannerthatachievesfairpresentation.

• Obtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithin theGroup toexpressanopinionon theconsolidated financialstatements.Weare responsible for thedirection,supervisionandperformanceofthegroupaudit.Weremainsolelyresponsibleforourauditopinion.



AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

We communicate with the audit committee regarding, among other matters, the planned scope and timing of the audit andsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.

We also provide the audit committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bearonourindependence,andwhereapplicable,relatedsafeguards.

From the matters communicated with the audit committee, we determine those matters that were of most significance in theauditof theconsolidated financialstatementsof thecurrentperiodandare therefore thekeyauditmatters.Wedescribe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublic interestbenefitsofsuchcommunication.

Theengagementpartnerontheauditresultinginthisindependentauditor’sreportisLeungPoWahPauline.

PricewaterhouseCoopersCertified Public Accountants

HongKong,26June2018


Fortheyearended31March2018

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

2018 2017Note HK$’000 HK$’000

Revenue 6 452,125 367,978Cost of sales 9 (336,300) (276,800)

Gross profit 115,825 91,178Other losses, net 7 (1,466) (1,117)Other income 8 315 301Sellinganddistributionexpenses 9 (38,224) (31,799)Administrativeexpenses 9 (51,599) (23,386)

Operating profit 24,851 35,177

Finance income 11 108 –Finance costs 11 (2,467) (1,388)

Finance cost, net 11 (2,359) (1,388)

Profit before income tax 22,492 33,789Incometaxexpense 12 (7,329) (5,529)

Profit and total comprehensive income for the year 15,163 28,260

Profit and total comprehensive income attributable to:Owners of the Company 14,085 27,356Non-controlling interest 1,078 904

15,163 28,260

Earnings per share for profit attributable to owners of the Company during the year (expressed in HK cents per share) —basicanddiluted 13 4.62 9.12

Theaboveconsolidatedstatementofcomprehensive incomeshouldberead inconjunctionwith theaccompanyingnotes.


Asat31March2018

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

2018 2017Note HK$’000 HK$’000

ASSETSNon-current assetsProperty, plant and equipment 16 20,611 12,486Deferredincometaxassets 22 1,017 1,073Deposits and other assets 19 9,767 15,631Financial assets at fair value through profit or loss 17 – 5,522

31,395 34,712

Current assetsInventories 18 24,456 18,733Trade receivables 20 73,385 62,973Deposits, prepayments and other receivables 19 8,385 6,724Restricted cash 21 22,500 –Cash and cash equivalents 21 118,402 37,477

247,128 125,907

Total assets 278,523 160,619

EQUITYEquity attributable to owners of the CompanyShare capital 23 4,000 –Reserves 24 79,794 5Retained earnings 24 57,632 58,547

141,426 58,552Non-controlling interest 15 5,853 4,775

Total equity 147,279 63,327


Asat31March2018

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

2018 2017Note HK$’000 HK$’000

LIABILITIESNon-current liabilityObligation under hire purchase contracts 26 – 67

Current liabilitiesTrade and other payables 25 31,618 18,197Incometaxpayables 2,272 3,740Amounts due to related parties 31 8,209 42,791Obligation under hire purchase contracts 26 – 98Bank borrowings 26 89,145 32,399

131,244 97,225

Total liabilities 131,244 97,292

Total equity and liabilities 278,523 160,619

Theaboveconsolidatedstatementoffinancialpositionshouldbereadinconjunctionwiththeaccompanyingnotes.

Theconsolidatedfinancialstatementsonpages51to111wereapprovedbytheBoardofDirectorson26June2018andweresignedonitsbehalf.

Mr. Chan Kam Chuen Andrew Mr. Chau Wing Kong, WilliamDirector Director



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to owners of the Company

NoteShare

capital

Reservesand

retainedearnings

Non–controlling

interest TotalHK$’000 HK$’000 HK$’000 HK$’000(Note 23) (Note 24) (Note 15)

Balance at 1 April 2016 – 46,736 5,341 52,077

Profit and total comprehensive income for the year – 27,356 904 28,260Transactions with owners in their capacity as owners:Dividends 14 – (15,540) (1,470) (17,010)

Balance at 31 March 2017 – 58,552 4,775 63,327

Balance at 1 April 2017 – 58,552 4,775 63,327

Profit and total comprehensive income for the year – 14,085 1,078 15,163

Transaction with owners in their capacity as owners:Deemed distribution to the then shareholders – (3,654) – (3,654)Shares issued pursuant to the Capitalisation 3,000 (3,000) – –Shares issued pursuant to the Listing 1,000 99,000 – 100,000Listingexpenseschargedtosharepremium – (12,557) – (12,557)Dividends 14 – (15,000) – (15,000)

Balance at 31 March 2018 4,000 137,426 5,853 147,279

Theaboveconsolidatedstatementofchangesinequityshouldbereadinconjunctionwiththeaccompanyingnotes.



CONSOLIDATED STATEMENT OF CASH FLOWS

2018 2017Note HK$’000 HK$’000

Cash flows from operating activitiesCash generated from operations 27(a) 28,263 28,242Incometaxpaid (8,574) (5,279)

Net cash generated from operating activities 19,689 22,963

Cash flows from investing activitiesPurchase of property, plant and equipment (17,077) (11,316)Purchase of key management life insurance contracts (3,593) (3,032)Proceeds from sales of financial assets at fair value through profit or loss 6,210 –Interest received 108 –Restricted cash (22,500) –

Net cash used in investing activities (36,852) (14,348)

Cash flows from financing activitiesProceeds from bank borrowings 158,555 110,446Repayments of bank borrowings (102,856) (104,320)Issuance of shares 100,000 –Net repayments of obligation under hire purchase contracts (165) (157)Amounts due to related parties (42,422) (5,827)Payment for professional fee in connection with IPO (12,557) –Interest paid (2,467) (1,388)

Netcashgeneratedfrom/(usedin)financingactivities 98,088 (1,246)

Net increase in cash and cash equivalents 80,925 7,369Cash and cash equivalents at beginning of the year 37,477 30,108

Cash and cash equivalents at end of the year 21 118,402 37,477

Theaboveconsolidatedstatementofcashflowsshouldbereadinconjunctionwiththeaccompanyingnotes.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1 GENERAL INFORMATION AND REORGANISATION1.1 General information

TheCompanywasincorporatedintheCaymanIslandson21August2017asanexemptedcompanywithlimited liabilityunder theCompaniesLaw (Cap.22,Law3of1961asconsolidatedand revised)of theCaymanIslands.TheaddressoftheCompany’sregisteredofficeisCricketSquare,HutchinsDrive,POBox2681,GrandCayman,KY1-1111,CaymanIslands.

TheCompanyisaninvestmentholdingcompany.TheCompanyanditssubsidiaries(together,“theGroup”)areprincipallyengaged in (i)distributionof foodandbeverageproducts (“DistributionBusiness”)and (ii)provisionofcateringservices(“RetailBusiness”)inHongKong(collectively,the“Business”).

Prior tothe incorporationof theCompanyandthecompletionofareorganisation(the“Reorganisation”) inpreparationforthelistingoftheCompany’sshareontheMainBoardofTheStockExchangeofHongKongLimited (“theMainBoard”), theGroup’sbusinesswasoperatedbyWiseFineEnterpriseLimited,SawCorporationLimitedandNationalJadeLimited(the“OperatingSubsidiaries”),andthedistributionbusinesssegment(the“IncludedBusiness”)ofBestSourceEnterpriseLimited(“BestSource”),whichareallcompaniesincorporatedinHongKongandcontrolledbyMr.ChanKamChuen,Andrew,Mr.ChanSiuCheung,StephenandMr.ChauWingKong,William(“theControllingShareholders”).TheReorganisationwascompletedon31January2018andsincethen,theCompanybecametheholdingcompanyoftheOperatingSubsidiariesandallothercompaniesnowcomprisingtheGroup.

TheCompany’sshareswerelistedontheMainBoardon14March2018.

Theseconsolidated financialstatementsarepresented inHongKongdollars (“HK$”),unlessotherwisestated.

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe principal accounting policies applied in the preparation of these consolidated financial statements are set out below.Thesepolicieshavebeenconsistentlyappliedtoalltheyearspresented,unlessotherwisestated.

2.1 Basis of preparation

Theconsolidated financialstatementshavebeenprepared inaccordancewithallapplicableHongKongFinancialReportingStandards(“HKFRSs”)issuedbytheHongKongInstituteofCertifiedPublicAccountants(“HKICPA”)andthedisclosure requirementsof theHongKongCompaniesOrdinance.Theconsolidatedfinancial statements have been prepared under the historical cost convention, as modified by the financial assetsatfairvaluethroughprofitorloss,whicharecarriedatfairvalue.

Immediately prior to the Reorganisation, the Group’s business was primarily conducted through the Operating Subsidiariesand the IncludedBusinessofBestSource.Pursuant to theReorganisation, theGroup’sbusinessweretransferredtoandheldbytheCompany.TheCompanyhasnotbeen involved inanyotherbusinessprior totheReorganisationanddoesnotmeetthedefinitionofabusiness.TheReorganisation ismerely a reorganisation of the Group’s business with no change in management and the ultimate owners of theGroup’sbusinessremainsubstantiallythesame.



2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

2.1 Basis of preparation (Continued)

The Group resulting from the Reorganisation is regarded as a continuation of the Group’s business under the OperatingSubsidiaries.Accordingly,thisconsolidatedfinancialstatementshasbeenpreparedandpresentedasacontinuationoftheGroup’sbusinessasiftheGroupstructurehasexistedasat1April2016.

The consolidated financial statements also included financial information of the Included Business of Best Sourceupto31January2018(dateoftransferoftheIncludedBusinessfromBestSourcetotheGroup)inthe following manner:

• TransactionsofBestSource specifically identified as relating to the IncludedBusinesswereconsolidated in the consolidated financial statements, while those specifically identified as relating to theotherbusinessofBestSource(the“ExcludedBusiness”)werenotconsolidatedintheconsolidatedfinancialstatements;

• Expenses incurredbyBestSourcewhichwerenotspecifically identifiedasrelatingto the IncludedBusinesswereallocatedasappropriateandtheportionofexpensesrelatingtotheIncludedBusinessisconsolidatedintotheconsolidatedfinancialstatements,asifsuchexpenseswerepaidbyBestSourceonbehalfoftheGroup;

• Currentanddeferred incometaxesonprofitsattributabletothe IncludedBusinesscalculatedontheabovebasisareprovidedforusingtheHongKongprofitstaxrateof16.5%duringtherelevantperiods;and

• Inter-companytransactionsandbalancesbetweengroupcompanies includingthe IncludedBusinesswereeliminatedonconsolidation.

Thepreparationofconsolidatedfinancialstatements inconformitywithHKFRSsrequirestheuseofcertaincriticalaccountingestimates. Italso requiresmanagement toexercise its judgement in theprocessofapplyingtheGroup’saccountingpolicies.Theareasinvolvingahigherdegreeofjudgementorcomplexity,orareas where assumptions and estimates are significant to the consolidated financial statements are disclosed inNote4.

(a) Amendments to existing standards adopted by the Group

ThefollowingamendmentstoexistingstandardsaremandatoryfortheGroup’sfinancialyearbeginningonorafter1April2017andhavebeenadopted in thepreparationof theconsolidated financialstatements.

AmendmentstoHKAS7 Statement of cash flowsAmendmentstoHKAS12 IncometaxesAmendmentstoHKFRS12 Disclosure of interest in other entities

TheadoptionoftheseamendmentstoexistingstandardshasnomaterialeffectonthepreparationoftheGroup’sconsolidatedfinancialstatements.





(b) New and amended standards and interpretations not yet adopted

The following new and amended standards and interpretations have been issued but are not effective forthefinancialyearbeginningon1April2017andhavenotbeenearlyadoptedbytheGroup:

Effective forannual periods

beginning onor after

Amendments to Annual ImprovementsProjects HKFRS1andHKAS28

Annualimprovements2014–2016cycle 1January2018

AmendmentstoHKFRS2 Classification and measurement of share-based payment transactions

1January2018

AmendmentstoHKFRS4 ApplyingHKFRS9financialinstruments withHKFRS4insurancecontracts

1January2018

HKFRS9 Financial instruments 1January2018HKFRS15 Revenue from contracts with customers 1January2018AmendmenttoHKFRS15 ClarificationtoHKFRS15 1January2018AmendmentstoHKAS28 Investmentsinassociatesandjointventures 1January2018AmendmentstoHKAS40 Transfers of investment property 1January2018HK(IFRIC)-Int22 Foreign currency transactions and

advance consideration1January2018

AmendmentstoHKFRS9 Prepayment features with negative compensation

1January2019

HKFRS16 Leases 1January2019HK(IFRIC)-Int23 Uncertaintyoverincometaxtreatments 1January2019AmendmentstoHKAS28(2011) Investmentsinassociateandjointventures 1January2019HKFRS17 Insurance contracts 1January2021AmendmentstoHKFRS10 andHKAS28

Sale or contribution of assets between an investoranditsassociateorjointventure

To be announced byHKICPA





(b) New and amended standards and interpretations not yet adopted (Continued)

The Group’s assessment of the impact of these new standards and interpretations is set out below:

HKFRS 9 “Financial instruments”

The new standard addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new rules for hedge accounting and a new impairment model for financial assets.TheGrouphasdecidednottoadoptHKFRS9untilitbecomesmandatoryon1January2018.

TheGroupdoesnotexpectthenewguidancetohaveasignificant impactontheclassificationandmeasurement of its financial assets for the following reasons:

• debt instrumentscurrentlyclassifiedas loansand receivableswould likelycontinue tobemeasuredatamortisedcost;

• equityinvestmentscurrentlymeasuredatfairvaluethroughprofitorlosswouldlikelycontinuetobemeasuredonthesamebasisunderHKFRS9.

There will be no impact on the Group’s accounting for financial liabilities, as the new requirements only affect the accounting for financial liabilities that are designated at fair value through profit or loss and the Groupdoesnothaveanysuchliabilities.ThederecognitionruleshavebeentransferredfromHKAS39“FinancialInstruments:RecognitionandMeasurement”andhavenotbeenchanged.

Thenewimpairmentmodelrequirestherecognitionofimpairmentprovisionsbasedonexpectedcreditlosses (“ECL”) rather thanonly incurredcredit lossesas is thecaseunderHKAS39. Itapplies tofinancial assets classified at amortised cost, debt instruments measured at a fair value through other comprehensiveincome,contractassetsunderHKFRS15“RevenuefromContractswithCustomers”,leasereceivables,loancommitmentsandcertainfinancialguaranteecontracts.TheGroupassessthatadoptingHKFRS9willnothavematerial impact to theGroup’s resultsofoperationsand financialposition.

Thenewstandardalso introducesexpandeddisclosure requirementsandchanges inpresentation.Theseareexpectedtochangethenatureandextentof theGroup’sdisclosuresabout its financialinstrumentsparticularlyintheyearoftheadoptionofthenewstandard.HKFRS9mustbeappliedforfinancial years commencingonor after 1 January 2018. TheGroupwill apply the new rulesretrospectivelyforthefinancialyearbeginningon1April2018.






HKFRS 15 “Revenue from contracts with customers”

TheHKICPAhas issuedanewstandardforrecognitionofrevenue.HKFRS15will replaceHKAS18whichcoverscontractsforgoodsandservicesandHKAS11whichcoversconstructioncontracts.Thenew standard is based on the principle that revenue is recognised when control of a good or service transferstoacustomer.Thenewstandardpermitseitherafullretrospectiveoramodifiedretrospectiveapproachfortheadoption.

HKFRS15establishesacomprehensive framework fordeterminingwhentorecogniserevenueandhowmuchrevenuetorecognisethrougha5-stepapproach:

(1) Identifythecontract(s)withcustomer;

(2) Identifyseparateperformanceobligationsinacontract;

(3) Determinethetransactionprice;

(4) Allocatetransactionpricetoperformanceobligations;and

(5) Recogniserevenuewhenperformanceobligationissatisfied.

The core principle is that the Group should recognise revenue to depict the transfer of promised goods orservicestothecustomerinanamountthatreflectstheconsiderationtowhichtheGroupexpectstobeentitledinexchangeforthosegoodsorservices.Itmovesawayfromarevenuerecognitionmodelbasedonan“earningsprocess”toan“asset-liability”approachbasedontransferofcontrol.

TheGroup’s revenue recognitionpoliciesaredisclosed inNote2.19.Currently, revenue fromdistribution of food and beverage products and from catering services are recognised in the consolidated statements of comprehensive income at the point of sale to customers or when a group entity has delivered products to the customer, the customer has accepted the products and collectabilityoftherelatedreceivablesisreasonablyassured.

The directors, based on the results of an initial assessment, consider that the new standard does not haveasignificantimpactontheconsolidatedfinancialstatements.

Thenewstandardismandatoryforfinancialyearscommencingonorafter1January2018.TheGroupdidnotadoptthestandardbeforeitseffectivedate.






HKFRS 16 “Leases”

UnderHKFRS16,lesseesarerequiredtorecognisealeaseliabilityreflectingfutureleasepaymentsanda right-of-useasset forall leasecontracts in thebalancesheet.Lesseeswillalsohave topresentinterestexpenseon the lease liabilityanddepreciationon the right-of-useasset in the incomestatement.IncomparisonwithoperatingleaseunderHKAS17,thiswillchangenotonlytheallocationofexpensesbutalso the totalamountofexpensesrecognised foreachperiodof the leaseterm.Thecombination of a straight-line depreciation of the right-of-use asset and the effective interest rate method applied to the lease liability will result in a higher total charge to profit or loss in the initial years ofthelease,anddecreasingexpensesduringthelatterpartoftheleaseterm.Thenewstandardhasincludedanoptionalexemption forcertainshort-term leasesand leasesof low-valuesassets.Thisexemptioncanonlybeappliedbylessees.

TheGroup isa lesseeofcertain retailshopswhicharecurrentlyclassifiedasoperating leases.TheGroup’scurrentaccountingpolicy forsuch leases,assetout inNote2.21, is to record the rentalexpenses inGroup’sconsolidatedstatementofcomprehensive incomefor thecurrentyearwiththedisclosureofrelatedfutureminimumleasepaymentsasoperatingleasecommitments(Note29(b)).Asat31March2018, theGroup’s totalnon-cancellableoperating leasecommitmentsamounted toHK$93,609,000.Thenewstandardwillthereforeresultinaderecognitionofprepaidoperatingleases,increase in right-of-use assets and increase in lease liabilities in the consolidated statement of financial position. In theconsolidatedstatementofcomprehensive income,asaresult, theannual rentalandamortisationexpensesofprepaidoperating leaseunderotherwise identical circumstanceswilldecrease,whiledepreciationof right-of-useofassetsand interestexpensearising fromthe leaseliabilitieswill increase.Giventhat thetotalnon-cancellableoperating leasecommitmentsaccount for71%ofthetotalliabilitiesoftheGroupasat31March2018,theDirectorsexpectthattheadoptionofHKFRS16ascomparedwiththecurrentaccountingpolicywouldresult insignificant impactontheGroup’sfinancialpositions.TheGroupwillapplythisnewstandardforthefinancialyearbeginningonorafter1April2019.

TherearenootherstandardsthatarenotyeteffectiveandthatwouldbeexpectedtohaveamaterialimpactontheGroup’sfinancialperformanceandposition.

2.2 Subsidiaries

2.2.1 Consolidation

Subsidiariesareentities (includingastructuredentity)overwhichtheGrouphascontrol.TheGroupcontrolsanentitywhenitisexposedto,orhasrightsto,variablereturnsfromitsinvolvementwiththeentityandhas theability toaffect those returns through itspowerover theentity.SubsidiariesareconsolidatedfromthedateonwhichcontrolistransferredtotheGroup.Theyaredeconsolidatedfromthedatethatcontrolceases.

MergeraccountingmethodstipulatedunderHongKongAccountingGuideline5,“Mergeraccountingforcommoncontrolcombinations” isusedtoaccount foracquisitionsofbusinessesundercommoncontrolbeforeandaftertheacquisitions.Thedifferencebetweenfairvalueofacquisitionconsiderationandcarryingamountofnetassetsacquiredisadjustedtomergerreserve.




2.2 Subsidiaries (Continued)

2.2.1 Consolidation (Continued)

The consolidated financial statements incorporate the financial statements of the combining entities or businesses in which the common control combination occurs as if they had been combined from the datewhenthecombiningentitiesorbusinesses firstcameunder thecontrolof thecontrollingparty.Thenetassetsof thecombiningentitiesorbusinessesarecombinedusingtheexistingbookvaluesfromthecontrollingparties’perspective.Noamountisrecognisedinrespectofgoodwillorexcessofacquirer’s interest in the net fair value of acquired identifiable assets and liabilities over cost at the time ofcommoncontrolcombination,totheextentofthecontinuationofthecontrollingparty’sinterest.

TheGroupappliestheacquisitionmethodtoaccount forbusinesscombinations.Theconsiderationtransferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the formerownersof theacquireeand theequity interests issuedby theGroup.Theconsideration transferred includes the fair value of any asset or liability resulting from a contingent considerationarrangement.Identifiableassetsacquiredandliabilitiesandcontingentliabilitiesassumedinabusinesscombinationaremeasuredinitiallyattheirfairvaluesattheacquisitiondate.

The Group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis.Non-controlling interests in theacquireethatarepresentownership interestsandentitle theirholders to a proportionate share of the entity’s net assets in the event of liquidation are measured at either fair value or the present ownership interests’ proportionate share in the recognised amounts of theacquiree’sidentifiablenetassets.Allothercomponentsofnon-controllinginterestsaremeasuredattheiracquisitiondatefairvalue,unlessanothermeasurementbasisisrequiredbyHKFRSs.Acquisition-relatedcostsareexpensedasincurred.

If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previouslyheldequity interest intheacquiree isre-measuredtofairvalueattheacquisitiondate;anygainsorlossesarisingfromsuchre-measurementarerecognisedinprofitorloss.

Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date.Subsequentchangestothe fairvalueof thecontingentconsiderationthat isdeemedtobeanassetor liability is recognised inaccordancewithHKAS39either inprofitor lossorasachangetoothercomprehensive income.Contingentconsiderationthat isclassifiedasequity isnotremeasured,anditssubsequentsettlementisaccountedforwithinequity.

Theexcessoftheconsiderationtransferred,theamountofanynon-controllinginterestintheacquireeand the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of theidentifiablenetassetsacquiredisrecordedasgoodwill.Ifthetotalofconsiderationtransferred,non-controlling interest recognised and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directlyintheconsolidatedstatementsofcomprehensiveincome.




2.2 Subsidiaries (Continued)

2.2.1 Consolidation (Continued)

Intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated.Unrealised lossesarealsoeliminated.Whennecessary,amountsreportedbysubsidiarieshavebeenadjustedtoconformwiththeGroup’saccountingpolicies.

Transactions with non-controlling interests that do not result in a loss of control are accounted for as equity transactions—that is,as transactionswith theownersof thesubsidiary in theircapacityasowners.Thedifferencebetweenfairvalueofanyconsiderationpaidandtherelevantshareacquiredofthecarryingamountofnetassetsofthesubsidiaryisrecordedinequity.Gainsorlossesondisposalstonon-controllinginterestsarealsorecordedinequity.

Gainsorlossesondisposalstonon-controllinginterestsarealsorecordedinequity.WhentheGroupceases to have control, any retained interest in the entity is re-measured to its fair value at the date whencontrolislost,withthechangeincarryingamountrecognisedinprofitorloss.Thefairvalueistheinitial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, jointventureor financialasset. Inaddition,anyamountspreviously recognised inothercomprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the relatedassetsor liabilities.Thismaymean thatamountspreviously recognised inothercomprehensiveincomearereclassifiedtoprofitorloss.

2.2.2 Separate financial statements

Investmentsinsubsidiariesareaccountedforatcostlessimpairment.Costincludesdirectattributablecostsof investment.Theresultsofsubsidiariesareaccounted forby thecompanyon thebasisofdividendreceivedandreceivable.

Impairment testing of the investments in subsidiaries is required upon receiving a dividend from these investmentsifthedividendexceedsthetotalcomprehensiveincomeofthesubsidiaryintheperiodthedividend is declared or if the carrying amount of the investment in the separate financial statements exceeds thecarryingamount in theconsolidated financialstatementsof the investee’snetassetsincludinggoodwill.

2.3 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operatingdecision-makers.Thechiefoperatingdecision-makers,whoareresponsibleforallocatingresourcesandassessingperformanceof theoperatingsegmentshasbeen identifiedastheExecutiveDirectorswhomakestrategicdecisions.




2.4 Foreign currency translation

(a) Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the currencyoftheprimaryeconomicenvironmentinwhichtheentityoperates(“thefunctionalcurrency”).TheconsolidatedfinancialstatementsarepresentedinHK$,whichistheCompany’sfunctionalandtheGroup’spresentationcurrency.

(b) Transactions and balances

Foreigncurrency transactionsare translated into the functionalcurrencyusing theexchange ratesprevailingatthedatesofthetransactionsorvaluationwhereitemsarere-measured.Foreignexchangegains and losses resulting from the settlement of such transactions and from the translation at year-end exchangeratesofmonetaryassetsandliabilitiesdenominated inforeigncurrenciesarerecognised intheconsolidatedstatementsofcomprehensiveincome.

All other foreign exchangegains and lossesarepresented in the consolidated statementsofcomprehensiveincomewithin“otherlosses,net”.

2.5 Property, plant and equipment

Property,plantandequipment isstatedathistoricalcost lessaccumulateddepreciation.Historicalcostincludesexpenditurethatisdirectlyattributabletotheacquisitionoftheitems.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Groupand thecostof the itemcanbemeasured reliably.Allother repairsandmaintenancecostsarecharged in the consolidated statements of comprehensive income during the financial period in which they areincurred.

Depreciation on property, plant and equipment is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives, as follows:

Leasehold improvements Shorter of remaining lease terms or useful livesFurnitureandfixtures 20%Plantandmachinery 30%Computerandofficeequipment 30%Motorvehicles 30%

Theasset’sresidualvaluesanduseful livesarereviewed,andadjusted ifappropriate,at theendofeachreportingperiod.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amountisgreaterthanitsestimatedrecoverableamount(Note2.6).

Gains and losses on disposals are determined by comparing proceeds with carrying amount and are recognisedwithin“otherlosses,net”intheconsolidatedstatementsofcomprehensiveincome.




2.6 Impairment of non-financial assets

Assetsthathavean indefiniteuseful lifearenotsubjecttoamortisationandareat leasttestedannually forimpairment.Assetswhicharesubject toamortisationare reviewed for impairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountmaynotberecoverable.Animpairmentlossisrecognised for theamountbywhich theasset’scarryingamountexceeds its recoverableamount.Therecoverableamountisthehigherofanasset’sfairvaluelesscoststosellandvalueinuse.Forthepurposesof assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cashflows(cash-generatingunits).Non-financialassetsthatsufferedanimpairmentarereviewedforpossiblereversaloftheimpairmentateachreportingdate.

2.7 Financial assets

(a) Classification

The Group classifies its financial assets as at fair value through profit or loss as well as loans and receivables.Theclassificationdependsonthepurposeforwhichthefinancialassetswereacquired.Managementdeterminestheclassificationofitsfinancialassetsatinitialrecognition.

(i) Financial assets at fair value through profit or loss

Financialassetsatfairvaluethroughprofitorlossarefinancialassetsheldfortrading.Afinancialassetisclassifiedinthiscategoryifacquiredprincipallyforthepurposeofsellingintheshortterm.Assetsinthiscategoryareclassifiedascurrentassetsifexpectedtobesettledwithin12months;otherwise,theyareclassifiedasnon-current.

(ii) Loans and receivables

Loansandreceivablesarenon-derivative financialassetswith fixedordeterminablepaymentsthatarenotquoted inanactivemarket.Theyare included incurrentassets,except for theamounts thataresettledorexpectedtobesettledmorethan12monthsafter theendof thereportingperiod.Theseareclassifiedasnon-currentassets.TheGroup’sloansandreceivablescomprise“tradereceivables”,“deposits,otherreceivablesandotherassets”and“cashandcashequivalents”intheconsolidatedstatementsoffinancialposition(Notes2.9and2.10).

The Group has acquired life insurance contracts for key management which include both investmentandinsuranceelements.Theseinvestmentinsurancecontractsareinitiallyrecognisedat the amount of the premium paid and subsequently carried at cash surrender value at the end of each reporting period, with changes in values being recognised in the consolidated statements ofcomprehensiveincome.




2.7 Financial assets (Continued)

(b) Recognition and measurement

Regularwaypurchasesandsalesoffinancialassetsarerecognisedonthetrade-date—thedateonwhichtheGroupcommitstopurchaseorselltheasset.Investmentsareinitiallyrecognisedatfairvalueplustransactioncosts forall financialassetsnotcarriedat fairvaluethroughprofitor loss.Financialassets carried at fair value through profit or loss are initially recognised at fair value, and transaction costsareexpensed in theconsolidatedstatementsofcomprehensive income.Financialassetsarederecognisedwhentherights to receivecash flowshaveexpiredorhavebeentransferredandtheGrouphas transferredsubstantiallyall risksand rewardsofownership.Loansandreceivablesaresubsequentlycarriedatamortisedcostusingtheeffectiveinterestmethod.

Gainsorlossesarisingfromchangesinthefairvalueofthe“financialassetsatfairvaluethroughprofitorloss”categoryarerecognisedintheconsolidatedstatementsofcomprehensiveincomeintheperiodinwhichtheyarise.

(c) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the consolidated statements of financial position when there is a legally enforceable right to offset the recognised amounts and there is anintentiontosettleonanetbasisorrealisetheassetandsettletheliabilitysimultaneously.Thelegallyenforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

(d) Impairment of financial assets

TheGroupassessesat theendofeachreportingperiodwhether there isobjectiveevidencethatafinancialassetorgroupoffinancialassetsisimpaired.Afinancialassetoragroupoffinancialassetsisimpairedandimpairmentlossesareincurredonlyifthereisobjectiveevidenceofimpairmentasaresultofoneormoreeventsthatoccurredaftertheinitialrecognitionoftheasset(a“lossevent”)andthatlossevent (orevents)hasan impactontheestimatedfuturecashflowsof thefinancialassetorgroupoffinancialassetsthatcanbereliablyestimated.

For loans and receivables, the amount of the loss is measured as the difference between the asset’s carryingamountandthepresentvalueofestimatedfuturecashflows (excluding futurecredit lossesthathavenotbeen incurred)discountedat the financialasset’soriginaleffective interest rate.Thecarrying amount of asset is reduced and the amount of the loss is recognised in the consolidated statementsofcomprehensiveincome.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be relatedobjectivelytoaneventoccurringaftertheimpairmentwasrecognised(suchasanimprovementinthedebtor’screditrating),thereversalofthepreviouslyrecognisedimpairmentlossisrecognisedintheconsolidatedstatementsofcomprehensiveincome.




2.8 Inventories

Inventoriesarestatedatthelowerofcostandnetrealisablevalue.Costisdeterminedusingthefirst-in,first-out (FIFO)method.Thecostcomprisescostsofpurchase,costsofconversionandothercosts incurred inbringingthe inventoriestotheirpresent locationandcondition.Netrealisablevalue is theestimatedsellingpriceintheordinarycourseofbusiness,lessapplicablesellingexpenses.

2.9 Trade and other receivables

Trade and other receivables are amounts due from customers for the merchandise sold in the ordinary courseofbusiness. Ifcollectionof tradeandother receivables isexpected inoneyearor less (or in thenormaloperatingcycleof thebusiness if longer), theyareclassifiedascurrentassets. Ifno, theyarepresentedasnon-currentassets.

Trade and other receivables are recognised initially at fair value and subsequently measured at amortised costusingtheeffectiveinterestmethod,lessprovisionforimpairment.SeeNote2.7(b)forfurtherinformationabouttheGroup’saccountingfortradeandotherreceivablesandNote2.7(d)foradescriptionoftheGroup’simpairmentpolicy.

2.10 Cash and cash equivalents

For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term highly liquid investments with originalmaturitiesofthreemonthsorless.

2.11 Share capital

Ordinarysharesareclassifiedasequity.Incrementalcostsdirectlyattributabletotheissueofnewsharesoroptionsareshowninequityasadeduction,netoftax,fromtheproceeds.

2.12 Trade and other payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of businessfromsuppliers.Tradepayablesareclassifiedascurrentliabilitiesifpaymentisduewithinoneyearorless(orinthenormaloperatingcycleofthebusinessif longer).Ifnot,theyarepresentedasnon-currentliabilities.

Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost usingtheeffectiveinterestmethod.




2.13 Borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred.Borrowings aresubsequentlycarriedatamortisedcost;anydifferencebetweentheproceeds(netoftransactioncosts)andthe redemption value is recognised in the consolidated statements of comprehensive income over the period oftheborrowingsusingtheeffectiveinterestmethod.

Feespaidontheestablishmentofloanfacilitiesarerecognisedastransactioncostsoftheloantotheextentthatitisprobablethatsomeorallofthefacilitywillbedrawndown.Inthiscase,thefeeisdeferreduntilthedraw-downoccurs.Totheextentthereisnoevidencethatitisprobablethatsomeorallofthefacilitywillbedrawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of thefacilitytowhichitrelates.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement oftheliabilityforatleast12monthsaftertheendofthereportingperiod.

2.14 Borrowing costs

Borrowing costs are recognised in statement of comprehensive income in the period in which they are incurred.

2.15 Current and deferred income tax

The taxexpense for the yearcomprisescurrentanddeferred income tax.Tax is recognised in theconsolidatedstatementsofcomprehensiveincome,excepttotheextentthatitrelatestoitemsrecognisedinother comprehensive incomeor directly in equity. In this case the tax is also recognised in othercomprehensiveincomeordirectlyinequity,respectively.

(a) Current income tax

Thecurrentincometaxiscalculatedonthebasisofthetaxlawsenactedorsubstantivelyenactedatthe reportingdate in thecountrywhere theCompanyoperatesandgenerates taxable income.Managementperiodicallyevaluatespositions taken in taxreturnswith respect tosituations inwhichapplicable taxregulation issubject to interpretationandestablishesprovisionswhereappropriateonthebasisofamountsexpectedtobepaidtothetaxauthorities.




2.15 Current and deferred income tax (Continued)

(b) Deferred income tax

Inside basis difference

Deferredincometaxisrecognised,usingtheliabilitymethod,ontemporarydifferencesarisingbetweenthe taxbasesof assetsand liabilities and their carryingamounts in theconsolidated financialstatements.However,deferred incometax isnot recognised if itarises from initial recognitionofanasset or liability in a transaction other than a business combination that at the time of the transaction affectsneitheraccountingnortaxableprofitorloss.Deferredincometaxisdeterminedusingtaxrates(andlaws)thathavebeenenactedorsubstantivelyenactedbythereportingdateandareexpectedtoapplywhen the relateddeferred incometaxasset is realisedor thedeferred incometax liability issettled.

Deferredincometaxassetsarerecognisedtotheextentthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhichthetemporarydifferencescanbeutilised.

Outside basis differences

Deferredincometaxliabilitiesareprovidedontaxabletemporarydifferencesarisingfrominvestmentsinsubsidiaries,except fordeferred incometax liabilitywherethetimingofthereversalof thetemporarydifference is controlled by the Group and it is probable that the temporary difference will not reverse in theforeseeablefuture.

Deferred income tax assets are recognisedondeductible temporarydifferencesarising frominvestmentsinsubsidiariesonlytotheextentthatitisprobablethetemporarydifferencewillreverseinthefutureandthereissufficienttaxableprofitavailableagainstwhichthetemporarydifferencecanbeutilised.

(c) Offsetting

Deferred incometaxassetsand liabilitiesareoffsetwhenthere isa legallyenforceablerighttooffsetcurrenttaxassetsagainstcurrenttaxliabilitiesandwhenthedeferredincometaxesassetsandliabilitiesrelate to incometaxes leviedby thesametaxationauthorityoneither the taxableentityordifferenttaxableentitieswherethereisanintentiontosettlethebalancesonanetbasis.




2.16 Employee benefits

(a) Pension obligations

The Group operates a number of Mandatory Provident Fund Schemes established under the Hong KongMandatoryProvidentFundSchemesOrdinance for itsemployee.Theseplansare fundedbypaymentsfromemployeesandbytheGroupandtheGroup’scontributionstotheplansareexpensedas incurred.Theassetsareheld separately from thoseof theGroupandmanagedby relatedindependentprofessionalfundmanagers.

(b) Employee leave entitlements

Employeeentitlementstoannual leavearerecognisedwhentheyaccruetoemployees.Aprovisionismade for the estimated liability for annual leave as a result of services rendered by employees up to the reportingdate.

Employeeentitlementstosickleaveandmaternityleavearenotrecogniseduntilthetimeofleave.

(c) Bonus plans

TheexpectedcostofbonuspaymentsarerecognisedasaliabilitywhentheGrouphasapresentlegalor constructive obligation as a result of services rendered by employees and a reliable estimate of the obligationcanbemade.

Liabilities forbonusplansareexpected tobesettledwithin12monthsandaremeasuredat theamountsexpectedtobepaidwhentheyaresettled.

(d) Long service payments

The Group’s net obligation in respect of long service payments to its employees upon the termination of their employment or retirement when the employee fulfils certain circumstances under the Hong KongEmploymentOrdinanceistheamountoffuturebenefitthatemployeeshaveearnedinreturnfortheirservicesinthecurrentandpriorperiods.

(e) Termination benefits

Termination benefits are payable when the employment is terminated by the Group before the normal retirementdate,orwheneveranemployeeacceptsvoluntary redundancy inexchange for thesebenefits.TheGrouprecognisesterminationbenefitsattheearlierofthefollowingdates: (a)whentheGroupcannolongerwithdrawtheofferofthosebenefits;and(b)whentheentityrecognisescostsforarestructuring that iswithin thescopeofHKAS37“Provision,ContingentLiabilitiesandContingentAssets”and involvesthepaymentofterminationbenefits. Inthecaseofanoffermadetoencouragevoluntaryredundancy,terminationbenefitsaremeasuredbasedonthenumberofemployeesexpectedtoaccepttheoffer.




2.17 Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events;itisprobablethatanoutflowofresourceswillberequiredtosettletheobligation;andtheamounthasbeenreliablyestimated.Restructuringprovisionsmainlycompriseleaseterminationpenaltiesandemployeeterminationpayments.Provisionsarenotrecognisedforfutureoperatinglosses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determinedbyconsideringtheclassofobligationsasawhole.Aprovisionisrecognisedevenifthelikelihoodofanoutflowwithrespecttoanyoneitemincludedinthesameclassofobligationsmaybesmall.

Provisionsaremeasuredat thepresentvalueof theexpendituresexpected tobe required tosettle theobligationusingapre-taxratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheobligation.Theincreaseintheprovisionduetopassageoftimeisrecognisedasinterestexpense.

2.18 Provision for reinstatement cost

Provision for reinstatement cost represents the present value of the estimated cost for the restoration work of theGroup’sleasedretailshopsagreedtobecarriedoutupontheexpiryoftherelevantleasesusingarisk-freepre-taxinterestrate.Theprovisionhasbeendeterminedbythedirectorsbasedontheirbestestimates.The related reinstatement costs have been included as leasehold improvements in the consolidated statementoffinancialposition(seeNote2.5).

2.19 Revenue recognition

Revenue comprises the fair value of the consideration received or receivable for the sale of goods in the ordinarycourseof theGroup’sactivities.Revenue isshownnetofvalue-addedtax, returns, rebatesanddiscountsandaftereliminatingsaleswithintheGroup.

The Group recognises revenue from sales of goods when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and when specific criteria have been met for eachof theGroup’sactivitiesasdescribedbelow.TheGroupbases itsestimatesof returnonhistoricalresults, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

(a) Distribution business

Sales of foods and beverage products are recognised when a group entity has delivered products to the customer, the customer has accepted the products, there is no unfulfilled obligations that could affect the customer’s acceptance of the products and the amount of sales can be reliably measured anditisprobablethatfutureeconomicbenefitswillflowtotheentities.Accumulatedexperienceisusedtoestimateandprovideforsalesreturnatthetimeofsale.

(b) Retail business

Salesoffoodsandbeverageproductsarerecognisedatthepointofsaletocustomers.




2.20 Interest income

Interestincomeisrecognisedusingtheeffectiveinterestmethod.Whenaloanandreceivableisimpaired,theGroup reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interestincome.Interestincomeonimpairedloanandreceivablesarerecognisedusingtheoriginaleffectiveinterestrate.

2.21 Leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classifiedasoperating leases.Paymentsmadeunderoperating leases(netofany incentivesreceivedfromthelessor)arechargedtotheconsolidatedstatementsofcomprehensiveincomeonastraight-linebasisovertheperiodofthelease.

TheGroupleasescertainproperty,plantandequipment.Leasesofproperty,plantandequipmentwheretheGrouphassubstantiallyalltherisksandrewardsofownershipareclassifiedasfinanceleases.Financeleasesare capitalised at the lease’s commencement at the lower of the fair value of the leased property and the presentvalueoftheminimumleasepayments.

Each leasepayment isallocatedbetween the liability and financecharges.Thecorresponding rentalobligations,netof financecharges,are included inother long-termpayables.The interestelementof thefinance cost is charged to the consolidated statements of comprehensive income over the lease period so as toproduceaconstantperiodicrateof interestontheremainingbalanceoftheliabilityforeachperiod.Theproperty, plant and equipment acquired under finance leases is depreciated over the shorter of the useful life oftheassetandtheleaseterm.

2.22 Dividend distribution

Dividend distribution to the Company’s shareholders is recognised as a liability in the consolidated financial statements in the period in which the dividends are approved by the Company’s shareholders or directors, whereappropriate.

Dividend proposed or declared after the reporting period but before the financial statements are authorised forissue,aredisclosedasanon-adjustingeventandarenotrecognisedasliabilityattheendofthereportingperiod.

2.23 Financial guarantee

Afinancialguarantee(akindof insurancecontract) isacontractthatrequiresthe issuertomakespecifiedpayments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when dueinaccordancewiththeoriginalormodifiedtermsofadebt instrument.TheGroupdoesnotrecogniseliabilities for financial guarantee at inception, but perform a liability adequacy test at each reporting date by comparing its net liability regarding the financial guarantee with the amount that would be required if the financialguaranteewouldresult inapresent legalorconstructiveobligation. If the liability is less than itspresent legal or constructive obligation amount, the entire difference is recognised in the consolidated statementsofcomprehensiveincomeimmediately.



3 FINANCIAL RISK MANAGEMENT3.1 Financial risk factors

TheGroup’sactivitiesexpose it toavarietyof financial risks:marketrisk (includingforeignexchangerisk,cashflowandfairvalueinterestraterisk),creditrisk,andliquidityrisk.TheGroup’soverallriskmanagementprogram focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on theGroup’s financialperformance.Riskmanagement iscarriedoutunderpoliciesapprovedby theExecutiveDirectors,whoprovideprinciplesforoverallriskmanagement.

(i) Foreign exchange risk

TheGroupoperatesinHongKongandisexposedtoforeignexchangeriskfromthepurchaseofgoodsfrom overseas suppliers and cash and bank borrowings denominated in foreign currencies, primarily withrespecttoJapaneseYen(“JPY”),TaiwanNewdollar(“TWD”)andUnitedStatesdollar(“USD”).

Managementcloselymonitorsforeigncurrencyexchangeexposureandwilltakemeasurestominimisethecurrency translation risk.TheGroupmanages its foreignexchange riskbyperforming regularreviewsof theGroup’snet foreignexchangeexposure.TheGrouphasnotusedanyhedgingarrangementtohedgeitsforeignexchangeriskexposure.

AsHongKongdollarsarepeggedagainstUSD,managementconsiders that theGroup ismainlyexposedtoforeigncurrencyriskwithrespecttoJPYandTWD.

HadHK$bestrengthened/weakenedby5%againstJYPwithallothervariablesheldconstant, thepost-taxprofit fortheyearended31March2018wouldhavebeenHK$529,000higher/lower (2017:HK$904,000higher/lower),mainlyasaresultof foreignexchangegains/lossesontranslationofJPY-denominatedcashandcashequivalent,tradeandotherpayablesandbankborrowings.

HadHK$bestrengthened/weakenedby5%againstTWDwithallothervariablesheldconstant, thepost-taxprofit for theyearended31March2018wouldhavebeenHK$97,000higher/lower (2017:HK$69,000higher/lower),mainlyasaresultof foreignexchangegains/lossesontranslationofTWD-denominatedtradeandotherpayables.

(ii) Interest rate risk

The Group’s cash flow and fair value interest rate risk primarily relates to cash at banks, bank borrowingsandobligationunderhirepurchasecontracts.Borrowings issuedatvariableratesexposetheGrouptocash flow interest-raterisk.Borrowings issuedat fixedratesexposetheGroupto fairvalueinterestraterisk.

TheGrouphasobligationunderhirepurchasecontractswhicharesubjecttofairvalueinterestrateriskandtheexposureisnotsignificant.Exceptforthat,theGroupdoesnothaveanyfairvalueinterestraterisk.TheGroup’s interestrateriskprimarily relatesto itsbankborrowings.TheGroupcurrentlydoesnothedgeitsinterestraterisk.However,managementmonitorstherelatedinterestrateriskexposurecloselyandwillconsiderhedgingsignificant interest rate riskexposureshould theneedarise.TheinterestratesandtermsofrepaymentofborrowingsaredisclosedinNote26.



3 FINANCIAL RISK MANAGEMENT (Continued)

3.1 Financial risk factors (Continued)

(ii) Interest rate risk (Continued)

Had interest ratesbeen50basispointshigher/lower than theprevailing interest rate,withallothervariablesheldconstant, thepost-taxprofit for theyearended31March2018wouldhavebeenHK$372,000lower/higher(2017:HK$135,000lower/higher),mainlyasaresultofhigher/lowerinterestexpensesonfloatingratebankborrowings.

(iii) Credit risk

Creditriskismanagedonagroupbasis.TheGroup’sfinancialassetsaretradereceivables,deposits,other receivablesandotherassetsandcashatbanks.Theamountsof thoseassetsstated in theconsolidatedstatementsoffinancialpositionrepresenttheGroup’smaximumexposuretocreditriskinrelationtofinancialassets.

For the Distribution Business, the Group’s credit risk is concentrated on a number of long established customers.Asat31March2018, trade receivables fromthe fivemajorcustomersaccounted forapproximately69%(2017:approximately68%)oftheGroup’stotaltradereceivables.

The Group has policies in place to ensure that sales are made to customers with appropriate credit historiesand to limit theamountofcreditexposure toany individualcustomer.TheGroup isnotexposedtomajorcreditriskwithrespecttoitsretailbusiness.

The Group reviews the recoverable amount of each individual trade receivable at each reporting date to ensure thatadequate impairment lossesaremade for irrecoverableamounts.TheGroup’spastexperienceincollectionoftradereceivablesfallswithintherecordedallowances.

The credit risk on financial assets at fair value through profit or loss and cash at banks are limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.TheGrouphaspolicies that limit theamountofcredit exposure toanyone financialinstitution.

For deposits and other receivables, the Group regularly monitors the financial position of these companies/counterpartiestoassesstheirrecoverability.Managementdoesnotexpectanylossesfromnon-performancebythesecounterparties.

(iv) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents and the availabilityoffundingthroughanadequateamountofavailablecreditfacilities.TheGroupmanagesitsliquidity risk by controlling the level of inventories, closely monitoring the turnover days of trade receivables,monitoringitsworkingcapitalrequirementsandkeepingcreditlinesavailable.




3.1 Financial risk factors (Continued)

(iv) Liquidity risk (Continued)

Management monitors rolling forecasts of the Group’s bank facilities and cash and cash equivalents on thebasisofexpectedcash flows.TheGroup’spolicy is to regularlymonitorcurrentandexpectedliquidity requirements to ensure that it maintains sufficient cash balances and adequate credit facilities tomeetitsliquidityrequirementsintheshortandlong-term.

On demand

Less than 1 year Over 1 year Total

HK$’000 HK$’000 HK$’000 HK$’000

As at 31 March 2018Trade and other payables – 31,618 – 31,618Amounts due to related parties – 8,209 – 8,209Bank borrowings 89,145 – – 89,145

89,145 39,827 – 128,972

As at 31 March 2017Trade and other payables – 18,197 – 18,197Amounts due to related parties – 42,791 – 42,791Obligation under hire purchase contracts – 102 68 170Bank borrowings 32,399 – – 32,399

32,399 61,090 68 93,557

The table below summarises the maturity analysis of the Group’s bank loans with a repayable on demand clausebasedonagreedscheduledrepaymentssetoutintheloanagreements.Astheamountsincludedalsointerestpayments, theyweregreater than theamountsdisclosed in the“ondemand” timeband in thematurityanalysiscontainedabove.

2018 2017HK$’000 HK$’000

Within 1 year 60,804 31,258Between 1 and 2 years 19,625 397Between2and5years 12,588 872

93,017 32,527

Taking into account the Group’s financial position, the Directors do not consider that it is probable that the bankswillexercisetheirdiscretionstodemand immediaterepayment.TheExecutiveDirectorsbelievethatsuch loans will be repaid in accordance with the scheduled repayment dates as set out in the loan agreements.




3.2 Capital risk management

TheGroup’sobjectiveswhenmanagingcapitalaretosafeguardtheGroup’sabilitytocontinueasagoingconcern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimalcapitalstructuretoreducethecostofcapital.

Inorder tomaintainoradjust thecapitalstructure, theGroupmayadjust theamountofdividendspaidtoshareholders,issuenewsharesorsellassetstoreducedebts.TheGroupmonitorscapitalonthebasisofthegearingratio.Thisratioiscalculatedattotaldebtdividedbytotalcapital.Totaldebtsarecalculatedastotalborrowings (includingcurrentandnon-currentborrowingsasshown in theconsolidatedstatementsoffinancialposition)andamountsduetorelatedparties.Totalcapitalrepresenttotaldebtsandequityasshownintheconsolidatedstatementsoffinancialposition.

2018 2017HK$’000 HK$’000

Bank borrowings 89,145 32,399Obligation under hire purchase contracts – 165Amounts due to related parties 8,209 42,791

Total debts 97,354 75,355Total equity 147,279 63,327

Total capital 244,633 138,682

Gearing ratio 40% 54%

3.3 Fair value estimation

The carrying values of the Group’s current financial assets, including trade receivables, deposits, other receivables, other assets and cash and cash equivalents, and the Group’s current financial liabilities, including tradeandotherpayables,amountsduetorelatedpartiesandbankborrowingsapproximatetheirfairvaluesduetotheirshortmaturities.

Financial instruments carried at fair value are measured according to the levels of the fair value hierarchy defined as follows:

• Quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities(level1).

• Inputsotherthanquotedpricesincludedwithinlevel1thatareobservablefortheassetorliability,eitherdirectly(thatis,asprices)orindirectly(thatis,derivedfromprices)(level2).

• Inputs for theassetor liability thatarenotbasedonobservablemarketdata (that is,unobservableinputs)(level3).




3.3 Fair value estimation (Continued)

At31March2018,theGroupdidnothaveanyfinancialassetscarriedatfairvalue.

At31March2017,theGroup’sfinancialassetsatfairvaluethroughprofitorlossweremeasuredbylevel3fairvaluehierarchy.

Therewerenotransfersbetweenlevels1,2and3duringtheyear.

The fair values of financial instruments traded in active markets are based on quoted market prices at the reportingdate.Amarket is regardedasactive ifquotedpricesarereadilyandregularlyavailable fromanexchange,dealer,broker, industrygroup,pricingservice,orregulatoryagency,andthosepricesrepresentactualandregularlyoccurringmarkettransactionsonanarm’slengthbasis.TheGroupdoesnothavelevel1financialinstruments.

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques.Thesevaluationtechniquesmaximisetheuseofobservablemarketdatawhereitisavailableandrelyaslittleaspossibleonentityspecificestimates.Ifallsignificantinputsrequiredtoassessthefairvalueofaninstrumentareobservable,theinstrumentisincludedinlevel2.TheGroupdoesnothavelevel2financialinstruments.

If one or more of the significant inputs is not based on observable market data, the instrument is included in level3.TheGroup’s financialassetsat fairvalue throughprofitor lossasat31March2017comprisedinvestment fund issuedbyreputablebanks inHongKong, the fairvalueofwhicharedeterminedby theGroup’sshareof theunderlyingassetsvalueof the relevant funds,which isnotanobservable input.Managementestimatesthefairvaluewithreferencetoquotationsprovidedbythebanks.

The carrying values less impairment provision of trade and other receivables and payables are a reasonable approximationoftheirfairvalues.Thefairvalueoffinancialliabilitiesfordisclosurepurposesisestimatedbydiscounting the future contractual cash flows at the current market interest rate that is available to the Group forsimilarfinancialinstruments.



4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS4.1 Critical accounting estimates and assumptions

Estimatesandjudgmentsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors,includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.

TheGroupmakeestimatesandassumptionsconcerningthefuture.Theresultingaccountingestimateswill,bydefinition,seldomequaltherelatedactualresults.Theestimatesandassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow.

(a) Estimated useful lives of property, plant and equipment

The Group’s management determines the estimated useful lives, and related depreciation charges for itsproperty,plantandequipment.Theestimatesarebasedonthehistoricalexperienceoftheactualusefullivesofproperty,plantandequipmentofsimilarnatureandfunctions.Managementwillincreasethedepreciationchargeswhereuseful livesare lessthanpreviouslyestimated lives. Itwillwriteofforwrite-downtechnicallyobsoleteornon-strategicassets thathavebeenabandonedorsold.Actualeconomic livesmaydiffer fromestimateduseful lives.Periodic reviewcould result inachange indepreciablelivesandthereforeaffectthedepreciationchargesinfutureperiods.

(b) Provision for impairment of trade receivables

The Group’s management determines the provision for impairment of trade receivables based on an assessmentoftherecoverabilityofthereceivables.Thisassessmentisbasedonthefinancialposition,repayment history and credit rating of its customers and the current market condition, and requires the useofjudgementsandestimates.Managementreassessestheprovisionateachreportingdate.

(c) Impairment of property, plant and equipment

Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicatethatthecarryingamountsmaynotberecoverable.Therecoverableamountshave been determined based on the higher of value-in-use calculations or fair value less costs to sell calculations.Thecalculationsrequiretheuseofjudgementsandestimates.Managementjudgementisrequiredintheareaofassetimpairmentparticularlyinassessing:(i)whetheraneventhasoccurredthatmayindicatethattherelatedassetvaluesmaynotberecoverable;(ii)whetherthecarryingvalueofanasset can be supported by the recoverable amount, being the higher of fair value less costs to sell and net present value of future cash flows which are estimated based upon the continued use of the asset in thebusiness;and (iii) theappropriatekeyassumptions tobeapplied inpreparingcash flowprojections includingwhether thesecash flowprojectionsarediscountedusinganappropriaterate.Changing the assumptions selected by management in assessing impairment, including the discount ratesor thegrowthrateassumptions inthecashflowprojections,couldaffect thenetpresentvalueused in the impairment test and as a result affect the Group’s financial position and results of operations.



4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Continued)

4.1 Critical accounting estimates and assumptions (Continued)

(d) Current and deferred income tax

TheGroupissubjecttoincometaxesinHongKong.Significantjudgmentisrequiredindeterminingtheprovision for incometaxes.Therearemanytransactionsandcalculations forwhichtheultimate taxdetermination isuncertain.TheGrouprecognises liabilities foranticipatedtaxaudit issuesbasedonestimatesofwhetheradditional taxeswillbedue.Where the final taxoutcomeof thesematters isdifferent from the amounts that were initially recorded, such differences would impact the current and deferredincometaxassetsandliabilitiesintheperiodinwhichsuchdeterminationismade.

Deferred taxassets relating tocertain temporarydifferencesand tax lossesare recognisedwhenmanagementconsiders it isprobable that future taxableprofitwillbeavailableagainstwhich thetemporarydifferencesortaxlossescanbeutilised.Wheretheexpectationisdifferentfromtheoriginalestimates,suchdifferencewill impact the recognitionofdeferred taxassetsand incometax in theperiodinwhichsuchestimatesarechanged.

(e) Net realisable value of inventories

The Group writes down inventories to net realisable value based on an assessment of the realisability of inventories.Write-downsof inventoriesare recordedwhereeventsorchanges incircumstancesindicatethat thebalancesmaynotberealised.The identificationofwrite-downsrequirestheuseofjudgmentandestimates.Theseestimatesarebasedon themarketconditionand thehistoricalexperienceofsellingpricesofsimilarnature.Where theexpectation isdifferent from theoriginalestimate, such difference will impact the carrying value of inventories and write-downs of inventories in theperiodinwhichsuchestimatehasbeenchanged.


NOTES TOTHE CONSOLIDATED FINANCIAL STATEMENTS

5 SEGMENT INFORMATIONThechiefoperatingdecision-makerhasbeenidentifiedastheExecutiveDirectorsoftheGroup(collectivelyreferredtoasthe“CODM”)thatmakestrategicdecisions.TheCODMreviewstheinternalreportingoftheGroupinordertoassessperformanceandallocateresources.

TheGroup isprincipallyengaged inDistributionBusinessandRetailBusiness inHongKong.TheExecutiveDirectorsconsiders thebusiness fromaproductperspective.They reviewed thequalitative factorssuchasbusiness activities, economic and legal characteristics and quantitative factors such as the financial performance of theDistributionBusinessandRetailBusinesstoassesstheperformanceoftheoperatingsegments.

No geographical segment information is presented as all the sales and operating profits of the Group are derived in HongKongandalloperatingassetsoftheGrouparelocatedinHongKong.

ThesegmentinformationprovidedtotheCODMforthereportablesegmentsfortheyearsended31March2018and2017isasfollows:

For the year ended 31 March 2018Distribution

BusinessRetail

Business TotalHK$’000 HK$’000 HK$’000

Segment revenue 255,432 196,693 452,125

Segment results 45,854 29,785 75,639

Unallocatedexpenses (49,637)Other losses, net (1,466)Other income 315Finance costs, net (2,359)

Profitbeforeincometax 22,492Incometaxexpense (7,329)

Profit for the year 15,163

Segment items included:Depreciation 1,390 8,175 9,565



5 SEGMENT INFORMATION (Continued)

Fortheyearended31March2017Distribution

BusinessRetail


Segment revenue 243,075 124,903 367,978

Segment results 41,124 16,863 57,987

Unallocatedexpenses (21,994)Other losses, net (1,117)Other income 301Finance costs (1,388)

Profitbeforeincometax 33,789Incometaxexpense (5,529)

Profit for the year 28,260

Segment items included:Depreciation 958 6,077 7,035

Thesegmentassetsasat31March2018and2017andthereconciliationtothetotalassetsareasfollows:

As at 31 March 2018Distribution

BusinessRetail


Total segment assets 89,062 45,019 134,081

Total segment assets include:Additionstonon-currentassets(otherthanfinancial instrumentsanddeferredincometaxassets) 2,103 15,587 17,690

Asat31March2017Distribution

BusinessRetail


Total segment assets 78,527 28,048 106,575

Total segment assets include:Additionstonon-currentassets(otherthanfinancial instrumentsanddeferredincometaxassets) 3,126 7,740 10,866



5 SEGMENT INFORMATION (Continued)

Reconciliation of total segment assets to total assets is provided as follows:

2018 2017HK$’000 HK$’000

Total segment assets 134,081 106,575Unallocated: Deferredincometaxassets 1,017 1,073 Keymanagementlifeinsurancecontracts 2,273 9,972 Financial assets at fair value through profit or loss – 5,522 Amount due from a related party 250 – Restricted cash 22,500 – Cash and cash equivalents 118,402 37,477

Total assets 278,523 160,619

Thesegmentliabilitiesasat31March2018and2017andthereconciliationtothetotalliabilitiesareasfollows:

As at 31 March 2018Distribution

BusinessRetail


Total segment liabilities 49,674 15,833 65,507

Asat31March2017Distribution

BusinessRetail


Total segment liabilities 41,373 7,789 49,162

Reconciliation of total segment liabilities to total liabilities is provided as follows:

2018 2017HK$’000 HK$’000

Total segment liabilities 65,507 49,162Unallocated: Other payables 3,504 – Incometaxpayables 2,272 3,740 Amounts due to related parties 8,209 42,791 Bank borrowings 51,752 1,599

Total liabilities 131,244 97,292



6 REVENUEThe Group is principally engaged in distribution of food and beverage products and provision of catering services in HongKong.

Revenue from Distribution Business and Retail Business recognised during the year are as follows:

2018 2017HK$’000 HK$’000

Sales of goods 255,432 243,075Catering services 196,693 124,903

452,125 367,978

For theyearended31March2018,customerA fromDistributionBusinessaccounted forapproximately23%(2017:approximately26%)oftheGroup’srevenue.

Allothercustomersindividuallyaccountedforlessthan10%oftheGroup’srevenuefortheyearsended31March2018and2017.

7 OTHER LOSSES, NET2018 2017

HK$’000 HK$’000

Fair value gain on financial assets at fair value through profit or loss (Note 17) 688 398Change in cash surrender value of key management life insurance contracts (Note 19) (478) (413)Exchangeloss (1,676) (1,102)

(1,466) (1,117)

8 OTHER INCOME2018 2017

HK$’000 HK$’000

Rental income 85 120Sundry income 230 181

315 301

Sundryincomemainlyincludeddividendincomefrominvestmentfunds.



9 EXPENSES BY NATUREExpensesincludedincostsofsales,sellinganddistributionexpensesandadministrativeexpensesareanalysedasfollows:

2018 2017HK$’000 HK$’000

Cost of inventories sold 221,813 200,355Depreciation of property, plant and equipment (Note 16) 9,565 7,035Employeebenefitexpenses(Note 10) 70,110 46,773Operating lease rentals in respect of rented premises (Note) 46,173 31,650Utilitiesexpenses 10,046 7,532Transportationandlogisticserviceexpenses 14,341 12,546Freight charges 5,315 5,076Advertisingandpromotionexpenses 15,938 12,644Auditor’s remuneration —Auditservices 1,912 110 —Non-auditservices 200 –Franchise fee 3,065 1,589Travellingexpenses 1,379 1,167Write off of slow-moving and obsolete inventories – 106Write off of impaired trade receivables (Note 20) 86 276Listingexpenses 19,655 –Others 6,525 5,126

426,123 331,985

Representing: Cost of sales 336,300 276,800 Sellinganddistributionexpenses 38,224 31,799 Administrativeexpenses 51,599 23,386

426,123 331,985

Note: TheoperatingleaserentalsincludescontingentrentalsofHK$6,834,000fortheyearended31March2018(2017:HK$4,289,000),inrespectoftheGroup’scateringbusiness.



10 EMPLOYEE BENEFIT EXPENSES (INCLUDING DIRECTORS’ EMOLUMENTS)Employeebenefitexpensesareasfollows:

2018 2017HK$’000 HK$’000

Wages, salaries, bonuses and allowances 65,829 42,622Pensioncosts—definedcontributionplans 3,059 2,004Staff welfare and benefits 1,222 2,147

70,110 46,773

Contributions totallingapproximatelyHK$762,000 (2017:HK$486,000)arepayable to theMandatoryProvidentFundasat31March2018.

(a) Five highest paid individuals

The five individuals whose emoluments were the highest in the Group include one director whose emolument is reflected in theanalysispresented inNote33during theyearended31March2018 (2017: two).Theemolumentspayabletotheremainingfourindividuals(2017:three)areasfollows:

2018 2017HK$’000 HK$’000

Wages, salaries, bonuses and allowances 2,806 2,277Pensioncosts—definedcontributionplans 69 53Staff welfare and benefits 1 9

2,876 2,339

The emoluments fell within the following bands:

Number of individuals

2018 2017

Emolument bandsHK$NiltoHK$1,000,000 4 3

During the year, the Group had not paid any emoluments to the directors or any of the five highest paid individualsasaninducementtojoinoruponjoiningtheGroup,orascompensationforlossofoffice.



11 FINANCE COSTS, NET2018 2017

HK$’000 HK$’000

Finance income —Bankinterestincome 108 –

Finance costs —Interestexpenseonbankborrowings (2,464) (1,379) —Interestexpenseonhirepurchasecontracts (3) (9)

(2,467) (1,388)

Finance costs, net (2,359) (1,388)

12 INCOME TAX EXPENSEHongKongprofitstaxhasbeenprovidedforattherateof16.5%ontheestimatedassessableprofitsfortheyearended31March2018(2017:16.5%).

Theamountoftaxationchargedtotheconsolidatedstatementsofcomprehensiveincomerepresents:

2018 2017HK$’000 HK$’000

Currentincometax 7,273 6,103Deferredincometax(Note 22) 56 (574)

7,329 5,529

ThetaxationontheGroup’sprofitbeforeincometaxdiffersfromthetheoreticalamountthatwouldariseusingthetaxationrateofHongKongasfollows:

2018 2017HK$’000 HK$’000

Profitbeforeincometax 22,492 33,789

Calculatedatataxationrateof16.5%(2017:16.5%) 3,711 5,575Incomenotsubjecttotax (162) (95)Expensesnotdeductiblefortaxationpurposes 3,900 126Taxcredits (120) (60)Others – (17)

7,329 5,529



13 EARNINGS PER SHARE(a) Basic

Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by the weightedaveragenumberofordinarysharesinissueduringtheyear.

2018 2017

ProfitattributabletoownersoftheCompany(HK$’000) 14,085 27,356

Weightedaveragenumberofordinarysharesinissue(thousands) 304,932 300,000

Basicearningspershare(HKcents) 4.62 9.12

The weighted average number of ordinary shares for the purpose of calculating basic earnings per shares has beendeterminedontheassumptionthattheReorganisationandCapitalisationIssueasdescribedinNote23hadbeeneffectivefrom1April2016.

(b) Diluted

Fortheyearsended31March2018and2017,dilutedearningspershareequalsbasicearningspershareastherewasnodilutivepotentialshares.

14 DIVIDENDS2018 2017

HK$’000 HK$’000

2017interimdividendpaidtothethenowners – 17,0102018specialdividendpaid 15,000 –

Dividendsduring the yearended31March2017 representeddividendsdeclaredby thecompaniesnowcomprisingtheGrouptothethenownersof thecompanies fortheyearended31March2017,aftereliminatingintra-groupdividends.Theratesfordividendandthenumberofsharesrankingfordividendsarenotpresentedassuchinformationisnotconsideredmeaningfulforthepurposeofthisreport.

On14February2018, theCompanydeclaredaspecialdividend, totallingHK$15million, to theControllingShareholders.HK$10,814,000ofthespecialdividendwassettledbywayofdistributioninspeciethroughnovationof benefits under the key management life insurance contracts owned by the Group, while the remaining HK$4,186,000wassettledthroughbalancesduetotheControllingShareholders’accounts.

A final dividend in respectof the year ended31March2018ofHK3centsperordinary share, totallingHK$12,000,000,wasproposedbytheBoardon26June2018whichissubjecttotheapprovalofshareholdersatthe forthcomingannualgeneralmeeting.Theseproposeddividendsarenotreflectedasdividendpayable in theconsolidatedstatementoffinancialposition.



15 SUBSIDIARIESDetailsoftheprincipalsubsidiariesoftheCompanyasat31March2018areasfollows:

Name of subsidiaries

Place and date of

incorporationParticulars of issued share capital

Equity interest attributable

to the Group Principal activities

Directly held by the CompanyBands Investment Limited BVI,

22September20171shareofUS$1each 100% Investment holding

Indirectly held by the CompanyNationalJadeLimited HongKong,

22August199610,000ordinaryshares ofHK$1each

51% Distribution of food and beverage products

Saw Corporation Limited HongKong, 24January2003

3ordinaryshare ofHK$1each

100% Distribution of foods and beverage products

Sunny Land Corporation Limited HongKong, 16June2017

3ordinaryshares ofHK$1each

100% Distribution of foods and beverage products

Wise Fine Enterprise Limited HongKong, 1March2004

3ordinaryshares ofHK$1each

100% Distribution of foods and beverage products and provision of catering services



15 SUBSIDIARIES (Continued)

(a) Material non-controlling interest

Asat31March2018,theGroup’snon-controllinginterestamountingtoapproximatelyHK$5,853,000(2017:HK$4,775,000),isattributabletoNationalJadeLimited,a51%ownedsubsidiaryoftheCompany.

Summarised financial information of the subsidiary with material non-controlling interest

Setoutbelowarethesummarisedfinancial informationofNationalJadeLimited,whichhasnon-controllingintereststhatismaterialtotheGroup.

2018 2017HK$’000 HK$’000

Summarised statement of financial positionNon-current assets 12 –Current assets 18,321 18,265Current liabilities (6,389) (8,520)Net assets 11,944 9,745

Summarised statement of comprehensive incomeRevenue 68,329 70,916Profit and total comprehensive income for the year 2,200 1,844Total comprehensive income allocated to non-controlling interest 1,078 904Dividends paid to non-controlling interest – 1,470

Summarised statement of cash flowsNet cash generated from operating activities 1,379 579Net cash used in investing activities (14) –Net cash used in financing activities (2,203) (365)Net(decrease)/increaseincashandcashequivalents (838) 214

Theinformationaboveisbeforeinter-companyeliminations.



16 PROPERTY, PLANT AND EQUIPMENT

Leasehold improvements

Plant and machinery

Furniture and fixtures

Computer and office

equipmentMotor

vehicles TotalHK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

At 1 April 2016 Cost 15,408 3,234 553 1,105 3,306 23,606 Accumulated depreciation (9,937) (798) (501) (738) (2,977) (14,951)

Net book amount 5,471 2,436 52 367 329 8,655

Year ended 31 March 2017 Opening net book amount 5,471 2,436 52 367 329 8,655 Additions 8,325 1,440 305 796 – 10,866 Depreciation (Note 9) (5,484) (1,103) (43) (267) (138) (7,035)

Closing net book amount 8,312 2,773 314 896 191 12,486

At 31 March 2017 Cost 23,733 4,674 858 1,901 3,306 34,472 Accumulated depreciation (15,421) (1,901) (544) (1,005) (3,115) (21,986)

Net book amount 8,312 2,773 314 896 191 12,486

Year ended 31 March 2018 Opening net book amount 8,312 2,773 314 896 191 12,486 Additions 13,975 1,970 474 1,271 – 17,690 Depreciation (Note 9) (7,170) (1,629) (120) (559) (87) (9,565)

Closing net book amount 15,117 3,114 668 1,608 104 20,611

At 31 March 2018 Cost 35,288 6,644 1,332 3,172 3,306 49,742 Accumulated depreciation (20,171) (3,530) (664) (1,564) (3,202) (29,131)

Net book amount 15,117 3,114 668 1,608 104 20,611

Depreciation of the Group’s property, plant and equipment has been charged to the consolidated statement of comprehensive income as follow:

2018 2017HK$’000 HK$’000

Cost of sales 8,176 6,077Sellinganddistributionexpenses 538 427Administrativeexpenses 851 531

9,565 7,035



17 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS2018 2017

HK$’000 HK$’000

Unlisted investments:—Investmentfunds(Note a) – 5,522

Note:

(a) Asat31March2017,investmentfundscomprisedportfoliofundsissuedbyreputablebanksinHongKongwhichprimarilyinvestin listedsecuritiesandbonds.These investmentfundsaredenominatedinHongKongdollars,withfairvaluesbeingdeterminedwithreferencetothevalueoftheunderlyingassetsofthefunds.Theinvestmentfundsweredisposedoffduringtheyear.

(b) Fairvaluegainof investment fundsofHK$688,000 (2017:HK$398,000)are recorded inother losses,net in thestatementofcomprehensiveincome(Note7).

18 INVENTORIES2018 2017

HK$’000 HK$’000

Raw materials 5,868 3,018Finished goods 18,588 15,715

24,456 18,733

Inventories mainly comprise food and beverage products which are stated at the lower of cost and net realisable value.

ThecostofinventoriesrecognisedasexpenseandincludedincostofsalesamountedtoHK$221,813,000(2017:HK$200,355,000).



19 DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES2018 2017

HK$’000 HK$’000

Non-current Rental deposits 7,419 4,202 Deposits for the purchase of property, plant and equipment 75 1,457 Keymanagementlifeinsurancecontracts(Note) 2,273 9,972

9,767 15,631

Current Prepayments 3,467 2,919 Rental and other deposits 3,987 3,252 Other receivables 604 152 Amount due from related parties (Note 31) 311 218 Incometaxrecoverable 16 183

8,385 6,724

18,152 22,355

Note:

Asat31March2018and2017, theGroup’skeymanagement life insurancecontractswerepledgedassecurities forcertainof theGroup’sbankborrowings (Note26(b)).Thecarryingvalueofsuch insurancecontracts representedthecashsurrendervalueof theinsurancecontracts.TheseinsurancecontractsaredenominatedinUSDandHK$.

The movements of the insurance contracts were as follows:

2018 2017HK$’000 HK$’000

Beginning of year 9,972 7,353Premium paid 3,593 3,032Transfer to the Controlling Shareholders (Note 14) (10,814) –Change in cash surrender value of key management life insurance contracts (Note 7) (478) (413)

End of year 2,273 9,972

Thecarryingamountsofdepositsandotherreceivablesapproximatetheirfairvalues.



19 DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES (Continued)

The carrying amounts of the deposits, prepayments and other receivables are denominated in the following currencies:

2018 2017HK$’000 HK$’000

HongKongdollar 16,169 12,288United States dollar 914 9,075Taiwan New dollar 890 732Renminbi 99 260VietnamDong 35 –Japaneseyen 44 –Euro 1 –

18,152 22,355

Themaximumexposure tocredit riskateach reportingdate is the fairvalueofeachclassof the receivablesmentionedabove.

20 TRADE RECEIVABLES2018 2017

HK$’000 HK$’000

Trade receivables —thirdparties 72,923 56,586 —relatedparties(Note 31) 462 6,387

73,385 62,973

TheGroup’sretailsalesaresettledoncashbasis.TheGroupgenerallygrantscreditperiodrangedfrom0to120daystoitscustomersfortheDistributionBusiness.

Asat31March2018and2017,theageinganalysisofthetradereceivablesbasedoninvoicedatewasasfollows:

2018 2017HK$’000 HK$’000

0–30days 27,931 22,88931–60days 18,321 15,15461–90days 16,220 12,78091–180days 10,438 11,301Over180days 475 849

73,385 62,973

Asat31March2018, trade receivablesofHK$21,472,000 (2017:HK$11,184,000)werepastduebutnotimpaired.Theserelatetoanumberof independentcustomers forwhomthere isnosignificant financialdifficultyandbasedonpastexperience,theoverdueamountscanberecovered.



20 TRADE RECEIVABLES (Continued)

Asat31March2018and2017,theageinganalysisofthesetradereceivablesbasedonduedatewasasfollows:

2018 2017HK$’000 HK$’000

Not yet past due 51,913 51,789Past due by: 1–30days 11,164 8,715 31–60days 7,093 1,093 61–90days 2,098 463 Over90days 1,117 913

73,385 62,973

Duringtheyearended31March2018,tradereceivablesofHK$86,000(2017:HK$276,000)werewrittenoff.

Thetradereceivablesfromthefivemajorcustomersaccountedforapproximately69%ofthetotaltradereceivablesasat31March2018(2017:approximately68%).TheGroup’screditriskmanagementisdisclosedinNote3totheconsolidatedfinancialstatements.

ThecarryingamountsoftradereceivablesaredenominatedinHongKongdollars.

Thecarryingamountsoftradereceivablesapproximatetheirfairvaluesduetotheirshortmaturities.Themaximumexposure tocredit riskat the reportingdate is the fairvaluementionedabove.TheGroupdoesnotholdanycollateralassecurity.

21 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH(a) Cash and cash equivalents

2018 2017HK$’000 HK$’000

Cash at banks 117,707 36,960Cash on hand 695 517

118,402 37,477

Cash and cash equivalents are denominated in the following currencies:

2018 2017HK$’000 HK$’000

HongKongdollar 118,346 36,162United States dollar 17 1,279Renminbi 30 28JapaneseYen 9 8

118,402 37,477



21 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH (Continued)

(b) Restricted cash

Asat31March2018, theGrouphadrestricteddepositsheldatbanksassecurities forcertainbankingfacilities(2017:HK$Nil).TherestricteddepositsaredenominatedinHK$.

22 DEFERRED INCOME TAXTheanalysisofdeferredincometaxassetsoftheGroupwasasfollows:

2018 2017HK$’000 HK$’000

Deferredincometaxassetstoberecoveredaftermorethan12months 1,017 1,073

MovementsindeferredincometaxassetsoftheGroupduringtheyearareasfollows:

Decelerated tax depreciation

2018 2017HK$’000 HK$’000

As at 1 April 1,073 499(Charged)/creditedtotheconsolidatedstatementsof comprehensive income (Note 12) (56) 574

Asat31March 1,017 1,073

Asat31March2018and2017,theGrouphasnosignificantunrecogniseddeferredincometaxassets.



23 SHARE CAPITALNumber of

sharesShare capital

HK$’000

Authorised:OrdinarySharesofHK$0.01eachAt21August2017(dateofincorporation)(Note (i)) 39,000,000 390Increase in authorised share capital (Note (iii)) 9,961,000,000 99,610

At31March2018 10,000,000,000 100,000

Issued and fully paid:OrdinarySharesofHK$0.01eachAt21August2017(dateofincorporation) (Note (i)) 300 –Shares issued pursuant to the Reorganisation (Note (ii)) 1,200 –Shares issued pursuant to the Capitalisation (Note (iv)) 299,998,500 3,000Shares issued pursuant to the Listing (Note (v)) 100,000,000 1,000

At31March2018 400,000,000 4,000

Notes:

(i) On21August2017,theCompanywasincorporatedintheCaymanIslandsundertheCompaniesLawasanexemptedcompanywithlimitedliability,withanauthorisedsharecapitalofHK$390,000dividedinto39,000,000sharesofHK$0.01each.Onthedateof incorporation, one share was allotted and issued as fully paid to an initial nominee subscriber and was subsequently transferred toMr.AndrewChan,theControllingShareholder.

(ii) PursuanttotheReorganisation,theCompanyissued1,200newordinarysharesasconsiderationforacquisitionofthesubsidiariesnowcomprisingtheGroupfromtheControllingShareholders.

(iii) On12February2018,theauthorisedsharecapitaloftheCompanywasincreasedfrom39,000,000sharesofHK$0.01eachto10,000,000,000sharesofHK$0.01each,bythecreationofanadditional9,961,000,000shares,rankingparipassuinallrespectswiththethenexistingshares.

(iv) Pursuant tothewrittenresolutionspassedbytheshareholderson12February2018andconditionaluponthesharepremiumaccount of the Company being credited as a result of the share offer, the directors of the Company are authorised to capitalise an amountofHK$2,999,985standingtothecreditofthesharepremiumaccountoftheCompanybyapplyingsuchsuminpayingupinfullatparof299,998,500sharesforallotmentandissuetothethenshareholders(the“Capitalisation”).

(v) On14March2018,theCompanyissued100,000,000ordinarysharesofHK$0.01eachatapriceofHK$1persharepursuanttotheinitialpublicofferingandlistingoftheCompany’ssharesintheMainBoard.NetproceedsfromsuchofferingaretobeusedasworkingcapitalfortheGroup.



24 RESERVESShare

premiumCapitalreserve

Other reserve

Retained earnings Total

HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

Balance at 1 April 2016 – – 5 46,731 46,736Profit and total comprehensive income for the year – – – 27,356 27,356Transactions with owners in their capacity as owners: Dividends – – – (15,540) (15,540)

Balance at 31 March 2017 – – 5 58,547 58,552

Balance at 1 April 2017 – – 5 58,547 58,552Profit and total comprehensive income for the year – – – 14,085 14,085Transaction with owners in their capacity as owners: Deemed distribution to the then shareholders (Note a) – (3,654) – – (3,654) Shares issued pursuant to the Capitalisation (Note 23) (3,000) – – – (3,000) Shares issued pursuant to the Listing (Note 23) 99,000 – – – 99,000 Transaction costs attributable to the Listing (Note 23) (12,557) – – – (12,557) Dividends – – (15,000) (15,000)

Balance at 31 March 2018 83,443 (3,654) 5 57,632 137,426

Note a:

This represents the difference between the net assets of the Included Business of Best Source and the consideration paid by the Group, whichwastreatedasadeemeddistributiontotheshareholders(Note2.1).

25 TRADE AND OTHER PAYABLES2018 2017

HK$’000 HK$’000

Trade payables 8,935 5,473Accruals for employee benefits 10,040 6,645Provision for unused annual leave 732 487Provision for long service payment 728 728Provision for reinstatement costs 2,113 1,424Accrualsforoperatingexpenses 8,170 1,700Accruals for property, plants and equipment 166 935Other payables 734 805

31,618 18,197



25 TRADE AND OTHER PAYABLES (Continued)

The ageing analysis of trade payables based on invoice date was as follows:

2018 2017HK$’000 HK$’000

0–30days 7,615 5,32131–60days 141 6261–90days 800 –Over90days 379 90

8,935 5,473

Thecarryingamountsof theGroup’s tradeandotherpayablesapproximate their fairvaluesdueto theirshortmaturities.

The carrying amounts of trade and other payables were denominated in the following currencies:

2018 2017HK$’000 HK$’000

HongKongdollar 24,972 13,854United States dollar 1,272 1,533Taiwan New dollar 3,204 1,641Renminbi 191 95JapaneseYen 1,227 1,074Pound sterling 752 –

31,618 18,197



26 BANK BORROWINGS AND OBLIGATION UNDER HIRE PURCHASE CONTRACTS

2018 2017HK$’000 HK$’000

Non-currentObligation under hire purchase contracts (Note (a)) – 67

CurrentBank borrowings (Note (b)) 89,145 32,399Obligation under hire purchase contracts (Note (a)) – 98

89,145 32,497

Total borrowings 89,145 32,564

(a) Obligation under hire purchase contracts

TheGroupleasescertainmotorvehiclesunderfinanceleases.Asat31March2018and2017,theGroup’sfinance leases were repayable as follows:

2018 2017HK$’000 HK$’000

Gross finance lease liabilities — minimum lease paymentsNo later than 1 year – 102Laterthan1yearandnolaterthan5years – 68

– 170Future finance charges on finance leases – (5)

Present value of financial lease liabilities – 165

The present value of finance lease liabilities are as follows:No later than 1 year – 98Laterthan1yearandnolaterthan5years – 67

– 165

The Group’s obligation under hire purchase contracts are secured by the Group’s motor vehicles with carryingvaluesofHK$191,000asat31March2017.Therights to the leasedassetare reverted to thelessorsintheeventofdefaultoftheleaseliabilitiesbytheGroup.



26 BANK BORROWINGS AND OBLIGATION UNDER HIRE PURCHASE CONTRACTS (Continued)

(b) Bank borrowings

Bankborrowings representmainly the import loansand term loansdrawnby theGroup.TheGroup’sborrowings, after taking into account of repayable on demand clause, are repayable as follows:

2018 2017HK$’000 HK$’000

Within 1 year or on demand 89,145 32,399

The Group’s bank borrowings repayable based on the scheduled repayment dates are as follows:

2018 2017HK$’000 HK$’000

Within 1 year 58,895 31,176Between 1 and 2 years 18,250 376Between2and5years 12,000 847

89,145 32,399

Asat31March2018,theGroup’sbankingfacilitiesaresecuredby:

(i) KeymanagementlifeinsurancecontractswithcarryingvaluesofHK$2,273,000asat31March2018(2017:HK$9,972,000)(Note19);

(ii) CrossguaranteesbytheGroup’scompaniesanditsrelatedcompanies(2017:same);

(iii) PersonalguaranteesbytheGroup’scontrollingshareholders(2017:same);

(iv) RestrictedcashdepositsofHK$22,500,000(Note21(b))(2017:HK$Nil);and

(v) TradereceivablewithcarryingvaluesofHK$12,528,000asat31March2018(2017:HK$37,057,000).

In addition to the above, the Group is required to comply with certain restrictive financial covenants imposed bythebanks.



26 BANK BORROWINGS AND OBLIGATION UNDER HIRE PURCHASE CONTRACTS (Continued)

(b) Bank borrowings (Continued)

Theeffective interest ratesofbankborrowingsasat31March2018were2.3%to5.3%(2017:2.2%to5.5%).

Thecarryingamountsofbankborrowingsapproximatetheirfairvaluesduetotheirshortmaturities.

The personal guarantees provided by the Group’s directors and cross guarantees by its related companies werereleasedonsubsequentto31March2018.

An analysis of the carrying amounts of the Group’s bank borrowings and obligation under hire purchase contracts by currency was as follows:

2018 2017HK$’000 HK$’000

United States dollar at floating rates 7,558 9,975HKdollaratfloatingrates 69,963 1,840Euro at floating rates 121 –JapaneseYenatfloatingrates 11,503 20,584HKdollaratfixedrate – 165

89,145 32,564



27 CASH GENERATED FROM OPERATING ACTIVITIES(a) Reconciliation of profit before income tax to cash generated from operations:

2018 2017HK$’000 HK$’000

Profitbeforeincometax 22,492 33,789Adjustmentsfor: Depreciation of property, plant and equipment (Note 16) 9,565 7,035 Change in cash surrender value of key management life insurance contracts (Note 19) 478 413 Fair value gain on financial assets at fair value through profit or loss (Note 17) (688) (398) Unrealisedexchangeloss 1,047 267 Inventory write-off – 106 Write-off of trade receivables (Note 20) 86 276 Finance income (Note 11) (108) – Finance costs (Note 11) 2,467 1,388

35,339 42,876Changes in working capital:Inventories (5,723) (1,354)Trade receivables (10,498) (9,989)Deposits, prepayments and other receivables (5,045) (3,096)Trade and other payables 14,190 (195)

Cash generated from operations 28,263 28,242

(b) Reconciliation of liabilities arising from financing activities

Non-cash changes

As at 1 April 2017 Cash flows Dividends

Foreign exchange

movement

Deemedshareholders’

distributionAs at

31 March 2018HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

Amounts due to related parties (Note) 42,791 (42,422) 4,186 – 3,654 8,209Obligation under hire purchase contracts 165 (165) – – – –Bank borrowings 32,399 55,699 – 1,047 – 89,145

Total liabilities from financing activities 75,355 13,112 4,186 1,047 3,654 97,354

Note: Amounts due to related parties include, among other movements, dividend paid to the then shareholders during the year ended31March2018amountingtoHK$4,186,000.



27 CASH GENERATED FROM OPERATING ACTIVITIES (Continued)

(b) Reconciliation of liabilities arising from financing activities (Continued)

Non-cash changes

As at 1April2016 Cash flows Dividends

Foreign exchange

movementAs at

31March2017HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

Amounts due to related parties (Note) 31,608 (5,827) 17,010 – 42,791Obligation under hire purchase contracts 322 (157) – – 165Bank borrowings 26,006 6,126 – 267 32,399

Total liabilities from financing activities 57,936 142 17,010 267 75,355

Note: Amounts due to related parties include, among other movements, dividend paid to the then shareholders and non-controllinginterestduringtheyearended31March2017amountingtoHK$15,540,000andHK$1,470,000respectively.

28 FINANCIAL INSTRUMENTS BY CATEGORIES2018 2017

HK$’000 HK$’000

Loans and receivables —Tradereceivables 73,385 62,973 —Deposits,otherreceivablesandotherassets 14,669 19,253 —Restrictedcash 22,500 – —Cashandcashequivalents 118,402 37,477

228,956 119,703

Financial assets at fair value through profit or loss —Investmentfunds – 5,522

Financial liabilities at amortised cost —Tradeandotherpayables 28,045 15,558 —Amountsduetorelatedparties 8,209 42,791 —Obligationunderhirepurchasecontracts – 165 —Bankborrowings 89,145 32,399

125,399 90,913



29 COMMITMENTS(a) Capital commitments

2018 2017HK$’000 HK$’000

Contracted but not provided for —Property,plantandequipment 1,428 100

(b) Operating lease commitments

The Group had future aggregate minimum lease payments under non-cancellable operating leases as follows:

2018 2017HK$’000 HK$’000

Not later than one year 45,521 23,967Later than one year and not later than five years 48,088 20,066

93,609 44,033

The above lease commitments only include commitments for basic rentals, and do not include commitments foradditionalrentalpayable,ifany,whenturnoverofindividualretailshopexceedsapre-determinedlevelasitisnotpossibletodetermineinadvancetheamountofsuchadditionalrentals.

30 FINANCIAL GUARANTEEAsat31March2018and2017,theGrouphadexecutedcrossguaranteeswithitsrelatedcompaniesforcertainbankingfacilitieswhichweresharedwiththerelatedcompanies.Asat31March2018,nobankingfacilities(2017:HK$10,514,000)wereutilisedbyarelatedcompany.

The directors of the Company has conducted an assessment on the fair values of the financial guarantee provided to the related party on the date of the guarantee and each reporting date in accordance with the Group’s accountingpolicyasstatedinNote2.23andconcludedthattheestimatedamountthatwouldbepayabletothosebanksforassumingtheobligationswasminimal.Accordingly,noprovisionwasmadeasat31March2018(2017:Nil).

Thecrossguaranteeswasreleasedonsubsequentto31March2018.

Inaddition,asat31March2018,theGroupexecutedcertainperformancebondsinfavourofitslandlordstotallingHK$2,869,000(2017:Nil)inlieuofrentaldeposits.



31 RELATED PARTY TRANSACTIONSAsat31March2018, themajorshareholdersof theCompanyareACAC InvestmentLimited,SCSCHoldingsLimitedandCCST InvestmentLimited,whichowned25%,25%and25%of theCompany’s issuedsharesrespectively.Theultimatecontrollingpartiesof theGroupareMr.ChanKamChuen,Andrew,Mr.ChanSiuCheung,StephanandMr.ChauWingKong,William,thedirectorsoftheCompany,respectively.

(a) Names and relationships with related parties

Relatedpartiesarethosepartiesthathavetheability tocontrol, jointlycontrolorexertsignificant influenceover theotherparty inholdingpowerover the investee;exposure,or rights, tovariable returns from itsinvolvementwiththeinvestee;andtheabilitytouseitspowerovertheinvesteetoaffecttheamountoftheinvestor’s returns.Partiesarealsoconsideredtoberelated if theyaresubject tocommoncontrolor jointcontrol.Relatedpartiesmaybeindividualsorotherentities.

The following individuals and companies are related parties of the Group that had balances and/or transactionswiththeGroupduringtheyearsended31March2018and2017.

Name of related parties Relationship with the Group

Mr.ChanKamChuen,Andrew Controlling ShareholderMr.ChanSiuCheung,Stephen Controlling ShareholderMr.ChauWingKong,William Controlling ShareholderMr.FungKingWai,Paul Non-controlling interest

賓士佳貿易（深圳）有限公司 ControlledbyMr.ChanSiuCheung,Stephenand Mr.ChanKamChuen,Andrew

Ms.TinHauLing,Janny Spouse of a Controlling ShareholderBestSkyHongKongLimited ControlledbyMr.ChanSiuCheung,StephenNew Odaiba ControlledbyspouseofMr.ChauWingKong,WilliamD&WBalloonCompany (formerlyknownasB&S TradingCompanyLimited)

ControlledbyMr.ChauWingKong,William

Best Source ControlledbyMr.ChanKamChuen,Andrew, Mr.ChauWingKong,WilliamandMr.ChanSiuCheung,Stephen

Save as disclosed elsewhere in the consolidated financial statements, the Group had the following related transactionsduringtheyearsended31March2018and2017.



31 RELATED PARTY TRANSACTIONS (Continued)

(b) Balances with related parties:

2018 2017HK$’000 HK$’000

Trade related receivables

—賓士佳貿易(深圳)有限公司 – 236—NewOdaiba 217 3,762—D&WBalloonCompany 245 2,389

462 6,387

Amount due from related parties (Note)—BestSkyHongKongLimited 61 218—Mr.FungKingWai,Paul 250 –

311 218

Amounts due to related parties (Note)—BestSource 8,014 –—Mr.ChanKamChuen,Andrew 37 15,620—Mr.FungKingWai,Paul – 6,316—Mr.ChanSiuCheung,Stephen 105 9,632—Mr.ChauWingKong,William 53 11,223

8,209 42,791

Note: Amountsduefrom/torelatedpartiesarenon-tradeinnature.

Themaximumoutstandingbalancedue fromrelatedpartiesduringtheyearsended31March2018wasHK$311,000(2017:HK$218,000).

Asat31March2018and2017,balanceswithrelatedpartieswereunsecured,interest-free,denominatedinHK$,andexpectedtorepaywithinoneyear.



31 RELATED PARTY TRANSACTIONS (Continued)

(c) In addition to those disclosed elsewhere in the consolidated financial statements, the Group had the following transactions with related parties:

2018 2017HK$’000 HK$’000

Continued transactionsSale of goods to a related party—NewOdaiba 5,701 19,031

Rentalexpensechargedbyrelatedparties—BestSource 5,692 4,902—BestSourceandMs.TinHauLing,Janny 1,140 979

Discontinued transactionsRental income received from a related party—BestSkyHongKongLimited 60 120

Sale of goods to a related party—D&WBalloonCompany 2,162 6,247

Write off of balance due from related parties—BestSkyHongKongLimited 96 –

—賓仕佳貿易（深圳）有限公司 236 –

Salesofgoodsandrentalexpensesandincomewerebasedontermsmutuallyagreedwithrelatedpartiesandintheordinarycourseofbusiness.

(d) Key management compensation

KeymanagementincludesExecutiveDirectorsandtheseniormanagementoftheGroup.

Compensation of the key management personnel of the Group, including director’s remunerations as disclosedinNote10totheconsolidatedfinancialstatements,wasasfollows:

2018 2017HK$’000 HK$’000

Wages, salaries, bonuses and allowances 2,576 1,650Pensioncosts—definedcontributionplans 69 54Staff welfare and benefits 18 69

2,663 1,773



32 STATEMENT OF FINANCIAL POSITION AND RESERVE MOVEMENT OF THE COMPANYStatement of financial position of the Company

As at

Note31 March

2018HK$’000

ASSETSNon-current assetInvestment in subsidiaries 76,212

Current assetsAmount due from a subsidiary 32,000Cash and cash equivalents 87,510

119,510

Total assets 195,722

EQUITYEquity attributable to owners of the CompanyShare capital 4,000Reserves (a) 159,655Retained earnings (a) 12,389

Total equity 176,044

LIABILITIESCurrent liabilitiesAccruals and other payables 1,305Amount due to a subsidiary 18,373

Total liabilities 19,678

Total equity and liabilities 195,722

ThestatementoffinancialpositionoftheCompanywasapprovedbytheBoardofDirectorson26June2018andwassignedonitsbehalf.

Mr. Chan Kam Chuen, Andrew Mr. Chau Wing Kong, WilliamDirector Director



32 STATEMENT OF FINANCIAL POSITION AND RESERVE MOVEMENT OF THE COMPANY (Continued)

Note (a): Reserve movement of the Company

Sharepremium

Contributedsurplus

Retainedearnings Total

HK$’000 HK$’000 HK$’000 HK$’000

Balances at 21 August 2017 (date of incorporation) – – – –Total comprehensive incomeProfit for the year – – 27,389 27,389

Transactions with owners in their capacity as owners:Issue of shares pursuant to the Reorganisation – 76,212 – 76,212Issue of shares pursuant to the Capitalisation (Note 23) (3,000) – – (3,000)Issue of shares pursuant to the Listing (Note 23) 99,000 – – 99,000Transaction costs attributable to the Listing (Note 23) (12,557) – – (12,557)Dividend – – (15,000) (15,000)

Balances at 31 March 2018 83,443 76,212 12,389 172,044

TheCompanywasincorporatedon21August2017and,asat31March2018,theCompanyhasauthorisedsharecapitalofHK$100,000,000,dividedinto10,000,000,000sharesofHK$0.01each.Asat31March2017,theCompanyhadnotbeenincorporatedand,accordingly,ithadnoassets,liabilitiesordistributablereservesonthatdate.

33 BENEFITS AND INTERESTS OF DIRECTORS(a) Directors’ emoluments

Theremunerationsofthedirectorsfortheyearended31March2018issetoutbelow:

Fees SalariesDiscretionary

bonuses

Allowances and benefits

in kind

Employer’s contribution to

a retirement benefit scheme

Emoluments paid or

receivable in respect of director’s

other services in connection

with the management of the affairs

of the Company or its subsidiary

undertaking TotalHK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

Year ended 31 March 2018Executive DirectorsMr.ChanKamChuen,Andrew (Chairman & CEO) (Note (i)) – 377 – 16 18 – 411Mr.ChauWingKong,William(Note (i)) – 685 – – 18 – 703Mr.ChanSiuCheung,Stephen(Note (i)) – 590 – 2 18 – 610Ms.TinHauLing,Janny(Note (ii)) – 7 – – – – 7

Independent Non-executive DirectorsMr.YuKaHo,Bernard(Note (iii)) 7 – – – – – 7Mr.SeeHungYan,Peter(Note (iii)) 7 – – – – – 7Mr.ChungKwokMo,John(Note (iii)) 7 – – – – – 7

21 1,659 – 18 54 – 1,752



33 BENEFITS AND INTERESTS OF DIRECTORS (Continued)

(a) Directors’ emoluments (Continued)

Theremunerationsofthedirectorsfortheyearended31March2017issetoutbelow:

Fees SalariesDiscretionary

bonuses

Allowances and benefits

in kind

Employer’s contribution to

a retirement benefit scheme

Emoluments paid or

receivable in respect of director’s

other services in connection

with the management of the affairs

of the Company or its subsidiary

undertaking TotalHK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

Year ended 31 March 2017Executive DirectorsMr.ChanKamChuen,Andrew (Chairman & CEO) (Note (i)) – 362 – 66 18 – 446Mr.ChauWingKong,William(Note (i)) – 694 – – 18 – 712Mr.ChanSiuCheung,Stephen(Note (i)) – 594 – 3 18 – 615Ms.TinHauLing,Janny(Note (ii)) – – – – – – –

– 1,650 – 69 54 – 1,773

Notes:

(i) Mr.ChanKamChuen,Andrew,Mr.ChauWingKong,WilliamandMr.ChanSiuCheung,StephenwereappointedasExecutiveDirectoroftheCompanyon21August2017.

(ii) Ms.TinHauLing,JannywasappointedasExecutiveDirectoroftheCompanyon14November2017.

(iii) Mr.YuKaHo,Bernard,Mr.SeeHungYan,PeterandMr.ChungKwokMo,Johnwereappointedas IndependentNon-executiveDirectorsoftheCompanyon12February2018.

The remuneration shown above represents remuneration received from the Group by these directors in their capacity as employees to the Company or Operating Subsidiary and no directors waived or agreed to waive anyemolumentduringtheyearsended31March2018and2017.



33 BENEFITS AND INTERESTS OF DIRECTORS (Continued)

(b) Directors’ retirement and termination benefits

No retirement benefits were paid to or receivable by any directors in respect of their other services in connection with the management of the affairs of the Company or its subsidiaries undertaking during the year ended31March2018(2017:Nil).

No payment was made to the directors as compensation for early termination of the appointment during the yearended31March2018(2017:Nil).

(c) Consideration provided to third parties for making available directors’ services

No payment was made to any former employers of the directors for making available the services of them as adirectoroftheCompanyduringtheyearended31March2018(2017:Nil).

(d) Information about loans, quasi-loans and other dealings in favour of directors, controlled bodies corporate by and connected entities with such directors

Saveasdisclosed inNote31, therewerenoother loans,quasi-loansandotherdealings in favourof thedirectors, controlled bodies corporate by and connected entities with such directors during the year ended 31March2018(2017:Nil).

(e) Directors’ material interests in transactions, arrangements or contracts

SaveasdisclosedintheNote31,nosignificanttransactions,arrangementsandcontractsinrelationtotheGroup’s business to which the Group was a party and in which a director of the Company had a material interest, whether directly or indirectly, subsisted at the end of the year or at any time during the year ended 31March2018(2017:Nil).


FINANCIALINFORMATION SUMMARY

RESULTS

Year ended 31 March2018 2017 2016 2015

RESULTS HK$’000 HK$’000 HK$’000 HK$’000

Revenue 452,125 367,978 299,770 282,558Profitbeforeincometax 22,492 33,789 25,296 19,334Incometaxexpenses (7,329) (5,529) (4,145) (3,084)Profit for the year 15,163 28,260 21,151 16,250

As at 31 March

ASSETS, EQUITY AND LIABILITIES2018 2017 2016 2015

HK$’000 HK$’000 HK$’000 HK$’000

ASSETSNon-current assets 31,395 34,712 25,551 19,487Current assets 247,128 125,907 105,410 87,233

Total assets 278,523 160,619 130,961 106,720

EQUITY AND LIABILITIESTotal equity 147,279 63,327 52,077 43,976

Non-current liabilities – 67 165 62Current liabilities 131,244 97,225 78,719 62,682

Total liabilities 131,244 97,292 78,884 62,744

Total equity and liabilities 278,523 160,619 130,961 106,720

Note: ThesummaryoftheresultsoftheGroupforeachofthethreeyearsended31March2015,2016and2017andoftheassets,equityandliabilitiesasat31March2015,2016and2017havebeenextractedfromtheProspectus.

Thefinancial informationfortheyearended31March2014wasnotdisclosedasconsolidatedfinancialstatementsfortheGrouphavenotbeenprepared for thisyear.Thesummaryabovedoesnot formpartof theaudited financialstatements.

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STOCK CODE : 1705...6 B & S International Holdings Ltd. MANAGEMENT DISCUSSION AND ANALYSIS For the year ended 31 March 2018, turnover of the Group’s business totalled approximately