Sustainability and Governance Report

☐ Group Executive Chairmans STATEMENT Dear Shareholders, On behalf of the Board of Directors, I am pleased to present the Annual Report of the Group for the financial year ended 31 March 2020. ("FY2020"). Below are some highlights of the performance of the Group for the financial year ended 31 March 2020. Financial Review The Group's revenue for the year ended 31 March 2020 was $25.53 million, a 6.6% increase from $23.95 million registered in FY2019. The increase in sales was mainly due to the improved performance of its Taiwan subsidiary. There was no major fluctuation in gross profit margin for the year ended 31 March 2020. Other operating income increased by 200%, mainly due to the gain on disposal of the building previously classified as held for sale from the Malaysia subsidiary, as announced on 1 February 2019. Distribution costs increased by 6.2% or $0.55 million mainly due to increase in the marketing cost for the e-commerce and online marketing for the Taiwan subsidiary. General and administrative expenses decreased by 9.9% or $0.45 million. Administrative expenses were higher in the last financial year due to the high depreciation expenses arising from the renovations carried out at the various stores of the Taiwan subsidiary. Fewer such renovations were observed in the current financial year. The Group's share of results of the associated company decreased by 16.0%, from $4.76 million in FY2019 to $4.00 million in FY2020 due to a decrease in sales performance of the associated company. Profit attributable to owners of the company was $5.05 million for the year ended 31 March 2020, as compared to $3.77 million in FY2019. Balance Sheet Review The Group's current trade and other receivables decreased from $4.65 million to $4.02 million mainly due to faster collection of receivables from Taiwan subsidiary during the year. The Group's non-current trade and other receivables decreased from $2.80 million to $2.41 million mainly due to faster collection from related parties during the year. The Group's and the Company's property, plant and equipment increased mainly due to new assets acquired for the Taiwan subsidiary and net off against the depreciation charged during the financial year. The Group's and the Company's right-of-use asset increased due to capitalisation of the leases for offices premises, warehouse, motor vehicles and retail outlets in accordance with SFRS(I) 16. These were net off against the depreciation charged during the financial year.

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