# (ii) Right-of-use assets

The analysis of the net book value of right-of-use assets by class of underlying asset is as follows:

<table><tr><td rowspan="3"></td><td colspan="2">As of March 31,</td><td rowspan="2">As of
August 6,
2019</td></tr><tr><td>2018</td><td>2019</td></tr><tr><td>HK$’000</td><td> HK$’000</td><td> HK$’000</td></tr><tr><td>Buildings leased for own use, carried at depreciated cost ......</td><td>3,386</td><td>3,350</td><td>2,116</td></tr></table>

Orizen Group has obtained the right to use other properties as its offices and warehouses through tenancy agreements. The leases typically run for an initial period of 1 to 3 years.

The analysis of expense items in relation to leases recognized in the consolidated statement of profit or loss and other comprehensive income is as follows:

<table><tr><td rowspan="3"></td><td colspan="2">As of March 31,</td><td rowspan="2">Period from
April 1, 2019 to
August 6, 2019</td></tr><tr><td>2018</td><td>2019</td></tr><tr><td>HK$’000</td><td> HK$’000</td><td> HK$’000</td></tr><tr><td>Depreciation charge of rihgt-of-use assets by class of
underliyng asset:</td><td></td><td></td><td></td></tr><tr><td>Buildings leased for own use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td>616</td><td>2,431</td><td>1,744</td></tr><tr><td>Interest on lease liabilities (note (3)(i)) . . . . . . . . . . . . . . . . . . . . .</td><td>43</td><td>117</td><td>35</td></tr></table>

# (8) Investment in a subsidiary

Details of Orizen’s subsidiary are as follows:

<table><tr><td rowspan="2">Company name</td><td rowspan="2">Form of
business
structure</td><td rowspan="2">Place of
incorporation
and
business</td><td rowspan="2">Particulars
of issued
and paid-up
caiptal</td><td colspan="3">Proportion of ownership interest</td><td rowspan="2">Principal
activities</td></tr><tr><td>effective
interest</td><td>Held by
Orizen</td><td>Held by a
subsidiary</td></tr><tr><td>PCCH</td><td> Incorporated</td><td> Hong Kong</td><td> 100 ordinary
shares</td><td>100%</td><td>100%</td><td> –</td><td> Trading,
wholesaling
and
retailing
of Chinese
medicine</td></tr></table>

# (9) Inventories

# (i) Inventories in the consolidated statement of financial position comprise:

<table><tr><td rowspan="3"></td><td colspan="2">As of March 31,</td><td rowspan="2">As of
August 6,
2019</td></tr><tr><td>2018</td><td>2019</td></tr><tr><td>HK$’000</td><td> HK$’000</td><td> HK$’000</td></tr><tr><td>Finished goods ..........................................</td><td>16,424</td><td>11,649</td><td>12,084</td></tr></table>

# (10) Trade and other receivables

<table><tr><td rowspan="3"></td><td colspan="2">As of March 31,</td><td rowspan="2">As of
August 6,
2019</td></tr><tr><td>2018</td><td>2019</td></tr><tr><td>HK$’000</td><td> HK$’000</td><td> HK$’000</td></tr><tr><td>Trade receivables ........................................</td><td>7,334</td><td>8,067</td><td>8,896</td></tr><tr><td>Other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td>1</td><td>679</td><td>693</td></tr><tr><td>Deposits and prepayments ................................</td><td>1,530</td><td>881</td><td>1,223</td></tr><tr><td></td><td>8,865</td><td>9,627</td><td>10,812</td></tr></table>

At March 31, 2018 and 2019 and August 6, 2019, the deposits and prepayments expected to be recovered after more than one year amounted to HK\$745,000, HK\$727,000 and HK\$926,000 respectively. The remaining trade and other receivables are expected to be recovered within one year.

Orizen Group normally allows a credit period of within 90 days to its customers.

# Aging analysis

As of the end of the reporting period, the aging analysis of trade receivables (which are included in trade and other receivables) based on the invoice date and net of loss allowance, is as follows:

<table><tr><td rowspan="3"></td><td colspan="2">As of March 31,</td><td rowspan="2">As of
August 6,
2019</td></tr><tr><td>2018</td><td>2019</td></tr><tr><td>HK$’000</td><td> HK$’000</td><td> HK$’000</td></tr><tr><td>Less than 1 month .......................................</td><td>5,512</td><td>6,494</td><td>6,742</td></tr><tr><td>1to6months............................................
</td><td>1,822</td><td>1,573</td><td>2,154</td></tr><tr><td></td><td>7,334</td><td>8,067</td><td>8,896</td></tr></table>

The aging analysis of trade receivables (net of loss allowance) by due dates is as follows:

<table><tr><td rowspan="3"></td><td colspan="2">As of March 31,</td><td rowspan="2">As of
August 6,
2019</td></tr><tr><td>2018</td><td>2019</td></tr><tr><td>HK$’000</td><td> HK$’000</td><td> HK$’000</td></tr><tr><td>Current .................................................</td><td>5,512</td><td>6,494</td><td>6,150</td></tr><tr><td>Less than 1 month past due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td>946</td><td>666</td><td>1,667</td></tr><tr><td>1 to 3 months past due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td>581</td><td>455</td><td>791</td></tr><tr><td>Over 3 months past due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td>295</td><td>452</td><td>288</td></tr><tr><td></td><td>7,334</td><td>8,067</td><td>8,896</td></tr></table>

# (11) Cash and cash equivalents and other cash flow information

# (i) Cash and cash equivalents comprise:

<table><tr><td rowspan="3"></td><td colspan="2">As of March 31,</td><td rowspan="2">As of
August 6,
2019</td></tr><tr><td>2018</td><td>2019</td></tr><tr><td>HK$’000</td><td> HK$’000</td><td> HK$’000</td></tr><tr><td>Cash at bank and on hand .................................</td><td>9,806</td><td>23,155</td><td>5,260</td></tr></table>

# (ii) Reconciliation of profit before taxation to cash generated from operations:

<table><tr><td rowspan="3"></td><td rowspan="3">Note</td><td colspan="2">Year ended March 31,</td><td rowspan="2">Period from
April 1, 2019
to August 6,
2019</td></tr><tr><td>2018</td><td>2019</td></tr><tr><td>HK$’000</td><td> HK$’000</td><td> HK$’000</td></tr><tr><td>Operating activities</td><td></td><td></td><td></td><td></td></tr><tr><td>Profit before taxation ...................................</td><td></td><td>24,717</td><td>26,166</td><td>10,655</td></tr><tr><td>Adjustments for:</td><td></td><td></td><td></td><td></td></tr><tr><td>Depreciation ..........................................</td><td>(3)(iii)</td><td>786</td><td>2,617</td><td>1,804</td></tr><tr><td>Finance costs ..........................................</td><td>(3)(i)</td><td>43</td><td>117</td><td>35</td></tr><tr><td>Interest income from bank deposits . . . . . . . . . . . . . . . . . . . . . .</td><td>(2)</td><td>(2)</td><td>(6)</td><td>(12)</td></tr><tr><td>Changes in workinig calpta:</td><td></td><td></td><td></td><td></td></tr><tr><td>(Increase)/decrease in inventories ........................</td><td></td><td>(9,484)</td><td>4,775</td><td>(435)</td></tr><tr><td>Decrease/(increase) in trade and other receivables ..........</td><td></td><td>1,313</td><td>(762)</td><td>(1,185)</td></tr><tr><td>Increase/(decrease) in trade and other payables ............</td><td></td><td>5,187</td><td>2,416</td><td>(8,127)</td></tr><tr><td>Cash generated from operations ........................</td><td></td><td>22,560</td><td>35,323</td><td>2,735</td></tr></table>