# 15. SHARE BASED PAYMENT TRANSACTIONS

The Company has adopted a share option scheme (“Share Option Scheme”) on 1 March 2018 to enable the Company to grant options to selected participants as incentives or rewards for their contribution to the Group and continuing efforts to promote the interest of the Group. The terms of the Share Option Scheme are in accordance with Chapter 23 of the GEM Listing Rules.

Details of Share Options and their movements during the six months ended 30 September 2020 are as follows:

<table><tr><td rowspan="3"></td><td rowspan="2">Date of Grant</td><td rowspan="2">Exercise
price per
Share</td><td colspan="6">Number of Shares issuable under the options</td></tr><tr><td>as at
01/04/
2020</td><td>granted
during the
period</td><td>exercised
during the
period</td><td>lapsed
during the
period</td><td>as at
30/09/
2020</td><td>Exercise
period</td></tr><tr><td></td><td>HK$</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Director</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Ms. Wong Bik Kwan Bikie 
(“Ms. Wong”)</td><td>18/04/2019</td><td>0.12</td><td>7,980,000</td><td>–</td><td>–</td><td>–</td><td>7,980,000</td><td>Note 1</td></tr><tr><td>Emlpofyees o the Group</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>In aggregate</td><td>18/04/2019</td><td>0.12</td><td>14,480,000</td><td>–</td><td>–</td><td>(1,000,000)</td><td>13,480,000</td><td>Note 1</td></tr><tr><td></td><td></td><td></td><td>22,460,000</td><td>–</td><td>–</td><td>(1,000,000)</td><td>21,460,000</td><td></td></tr></table>

# Notes:

1. (i) up to 40% of the Share Options are exercisable on or after 18 April 2019;

(ii) up to 70% of the Share Options are exercisable on or after 18 April 2020;

(iii) all the remaining Share Options are exercisable on or after 18 April 2021;

and in each case, not later than 17 April 2024.

Save as disclosed above, no options were granted, exercised, forfeited, cancelled or lapsed during the six months ended 30 September 2020.

# 16. RELATED PARTY TRANSACTIONS

(a) Save as disclosed elsewhere in these consolidated financial statements, the Group had the following transactions with its related parties during the reporting periods:

<table><tr><td rowspan="4"></td><td colspan="2">For the six months ended
30 September</td></tr><tr><td>2020</td><td>2019</td></tr><tr><td>HK$’000</td><td>HK$’000</td></tr><tr><td>(Unaudited)</td><td>(Unaudited)</td></tr><tr><td>Rental expense paid to a related company (note (i))</td><td>533</td><td>177</td></tr><tr><td>Compensation of key management personnel (note (ii))</td><td></td><td></td></tr><tr><td>Salaries, allowances and other benefits</td><td>3,006</td><td>2,870</td></tr><tr><td>Contributions to defined contribution retirement lpan</td><td>45</td><td>38</td></tr><tr><td>Equity-settled share-based payment expenses</td><td>101</td><td>831</td></tr><tr><td></td><td>3,152</td><td>3,739</td></tr></table>

Notes:

(i) The Group entered into a lease agreement of warehouse with Solaire International Limited (“Solaire”). Solaire is held by Ms. Wong, Chairman, Chief Executive Officer and Executive Director of the Company. The transaction is conducted on normal commercial terms or better and is a connected transaction. The transaction is a de minimis transaction in accordance with GEM Listing Rules 20.74(1) fully exempt from the reporting, annual review, announcement, circular (including independent financial advice) and shareholders’ approval requirements.

(ii) The compensation represents the remuneration paid and was payable to the directors and other members of key management during the reporting periods.

(b) The amount due to a related company is unsecured, interest-free and repayable on demand.

# 17. CORONAVIRUS DISEASE 2019 OUTBREAK

Due to the outbreak of the COVID-19 epidemic in January 2020, a series of precautionary and control measures have been and continued to be implemented. It has impacted the global business environment. Up to the date of this financial statements, COVID-19 has not resulted in material impact to the Group. Pending the development and spread of COVID-19 subsequent to the date of this financial statements, further changes in economic conditions may have impact on the financial results of the Group, the extent of which could not be estimated as at the date of this financial statements. The Group will continue to monitor the development of COVID-19 and react actively to its impact on the financial position and operating results of the Group.