| SEGMENT INFORMATION |
3. Segment information
Information regarding the Company’s net income and operating income is disclosed in the unaudited interim condensed consolidated statements of income. Segment expenses and other items are reviewed by the CODM on the same basis as presented in the unaudited interim condensed consolidated statements of income.
The Company has one reportable segment: sale of apparel products. Segment was identified based on the Company’s internal reporting and how the chief operating decision maker (“CODM”, the Chief Executive Officer of the Company) assesses the performance of the business. The CODM reviews the results of operations and net income when marking decisions about allocating resources and assessing the performance. The sale of apparel products segment generated revenue by providing one-stop apparel solution service and sales of own-branded apparel products through retail stores. All assets of the Company are located in Hong Kong and the UK and revenues are generated based on the geographical locations. Key financial performance measures of the segments are as follows:
|
|
|
For the six months ended June 30,
|
| |
|
2024
|
|
2025
|
|
2025
|
| |
|
HKD
|
|
HKD
|
|
US$
|
|
REVENUES, NET
|
|
79,256,623 |
|
|
60,236,666 |
|
|
7,673,558 |
|
| |
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES
|
|
|
|
|
|
|
|
|
|
|
– Related party
|
|
(3,504,012 |
)
|
|
(5,385,166 |
)
|
|
(686,017 |
)
|
|
– External
|
|
(59,393,295 |
)
|
|
(29,052,173 |
)
|
|
(3,700,961 |
)
|
| |
|
(62,897,307 |
)
|
|
(34,437,339 |
)
|
|
(4,386,978 |
)
|
|
Gross profit
|
|
16,359,316 |
|
|
25,799,327 |
|
|
3,286,580 |
|
| |
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
|
|
(2,045,399 |
)
|
|
(3,581,199 |
)
|
|
(456,209 |
)
|
|
General and administrative:
|
|
|
|
|
|
|
|
|
|
|
Lease expenses – Related party
|
|
(360,000 |
)
|
|
(360,000 |
)
|
|
(45,860 |
)
|
|
Depreciation
|
|
(276,041 |
)
|
|
(820,441 |
)
|
|
(104,516 |
)
|
|
Amortization
|
|
|
|
|
(1,241,642 |
)
|
|
(158,173 |
)
|
|
Staff cost
|
|
(7,743,398 |
)
|
|
(10,644,573 |
)
|
|
(1,356,014 |
)
|
|
Leases expenses
|
|
(2,110,406 |
)
|
|
(3,070,526 |
)
|
|
(391,155 |
)
|
|
Professional fee
|
|
(479,456 |
)
|
|
(2,937,417 |
)
|
|
(374,198 |
)
|
|
Reversal of expected credit losses
|
|
(267,373 |
)
|
|
2,291,797 |
|
|
291,952 |
|
|
Others
|
|
(2,590,533 |
)
|
|
(3,175,760 |
)
|
|
(404,560 |
)
|
|
Total expenses
|
|
(15,872,606 |
)
|
|
(23,539,761 |
)
|
|
(2,998,733 |
)
|
|
INCOME FROM OPERATION
|
|
486,710 |
|
|
2,259,566 |
|
|
287,847 |
|
| |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSES)
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
49,895 |
|
|
|
|
|
|
|
|
Interest expense
|
|
(1,460,788 |
)
|
|
(622,140 |
)
|
|
(79,255 |
)
|
|
Change in a fair value of investment of a joint venture
|
|
|
|
|
33,934 |
|
|
4,323 |
|
|
Agency income – related party
|
|
2,361,596 |
|
|
1,248,117 |
|
|
158,998 |
|
|
Other income
|
|
|
|
|
18,264 |
|
|
2,327 |
|
|
Other expense
|
|
(24,805 |
)
|
|
(15,885 |
)
|
|
(2,024 |
)
|
|
Total other income, net
|
|
925,898 |
|
|
662,290 |
|
|
84,369 |
|
|
INCOME BEFORE TAX EXPENSES
|
|
1,412,608 |
|
|
2,921,856 |
|
|
372,216 |
|
|
INCOME TAX EXPENSES
|
|
|
|
|
(885,588 |
)
|
|
(112,815 |
)
|
|
NET INCOME
|
|
1,412,608 |
|
|
2,036,268 |
|
|
259,401 |
|
|
|
|
As of
December 31,
2024
|
|
As of June 30,
2025
|
| |
|
HKD
|
|
HKD
|
|
US$
|
|
Total assets
|
|
135,647,692 |
|
|
137,766,523 |
|
|
17,550,100 |
|
|
Total liabilities
|
|
(78,821,221 |
)
|
|
(79,582,661 |
)
|
|
(10,138,048 |
)
|
|
Net assets
|
|
56,826,471 |
|
|
58,183,862 |
|
|
7,412,052 |
|
|
3. Segment information
Information regarding the Company’s net income and operating income is disclosed in the consolidated statements of income. Segment expenses and other items are reviewed by the CODM on the same basis as presented in the consolidated statements of income.
The Company has one reportable segment: sale of apparel products. Segment was identified based on the Company’s internal reporting and how the chief operating decision maker (“CODM”, the Chief Executive Officer of the Company) assesses the performance of the business. The sale of apparel products segment generated revenue by providing one-stop apparel solution service and sales of own-branded apparel products through retail stores. All assets of the Company are located in Hong Kong and the UK and revenues are generated based on the geographical locations.
Key financial performance measures of the segments are as follows:
|
|
|
For the years ended December 31,
|
| |
|
2023
|
|
2024
|
|
2024
|
| |
|
HKD
|
|
HKD
|
|
US$
|
|
Revenues, net
|
|
174,202,627 |
|
|
235,667,734 |
|
|
30,339,448 |
|
| |
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
|
|
|
|
|
|
|
|
– Related parties
|
|
(34,213,521 |
)
|
|
(7,915,189 |
)
|
|
(1,018,987 |
)
|
|
– External
|
|
(104,940,795 |
)
|
|
(178,307,992 |
)
|
|
(22,955,056 |
)
|
| |
|
(139,154,316 |
)
|
|
(186,223,181 |
)
|
|
(23,974,043 |
)
|
|
Gross profit
|
|
35,048,311 |
|
|
49,444,553 |
|
|
6,365,405 |
|
| |
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
|
|
(3,132,277 |
)
|
|
(4,392,521 |
)
|
|
(565,486 |
)
|
|
General and administrative:
|
|
|
|
|
|
|
|
|
|
|
Depreciation – related party
|
|
(720,000 |
)
|
|
(720,000 |
)
|
|
(92,692 |
)
|
|
Depreciation
|
|
(2,540,273 |
)
|
|
(3,831,567 |
)
|
|
(493,269 |
)
|
|
Amortization
|
|
(112,049 |
)
|
|
(1,481,738 |
)
|
|
(190,756 |
)
|
|
Staff cost
|
|
(13,260,898 |
)
|
|
(18,486,483 |
)
|
|
(2,379,917 |
)
|
|
Professional fee
|
|
(2,204,622 |
)
|
|
(2,840,139 |
)
|
|
(365,634 |
)
|
|
Provision for expected credit losses
|
|
(1,383,316 |
)
|
|
(1,253,368 |
)
|
|
(161,356 |
)
|
|
Others
|
|
(2,648,351 |
)
|
|
(4,867,313 |
)
|
|
(626,610 |
)
|
|
Total expenses
|
|
(26,001,786 |
)
|
|
(37,873,129 |
)
|
|
(4,875,720 |
)
|
|
Income from operation
|
|
9,046,525 |
|
|
11,571,424 |
|
|
1,489,685 |
|
| |
|
|
|
|
|
|
|
|
|
|
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
92,951 |
|
|
31,954 |
|
|
4,114 |
|
|
Interest expense
|
|
(5,759,182 |
)
|
|
(3,759,032 |
)
|
|
(483,931 |
)
|
|
Agency income – related party
|
|
2,662,034 |
|
|
1,170,664 |
|
|
150,709 |
|
|
Other income
|
|
326 |
|
|
134,230 |
|
|
17,280 |
|
|
Other expense
|
|
(302,784 |
)
|
|
—
|
|
|
—
|
|
|
Total other expenses, net
|
|
(3,306,655 |
)
|
|
(2,422,184 |
)
|
|
(311,828 |
)
|
|
Income before tax expenses
|
|
5,739,870 |
|
|
9,149,240 |
|
|
1,177,857 |
|
|
|
|
As of December 31,
|
| |
|
2023
|
|
2024
|
|
2024
|
| |
|
HKD
|
|
HKD
|
|
US$
|
|
Total assets
|
|
90,616,829 |
|
|
135,647,692 |
|
|
17,463,045 |
|
|
Total liabilities
|
|
(93,003,639 |
)
|
|
(78,821,221 |
)
|
|
(10,147,305 |
)
|
|
Net (liabilities) assets
|
|
(2,386,810 |
)
|
|
56,826,471 |
|
|
7,315,740 |
|
|