# EDGAR Filing Document

**Accession Number:** 0002046573
**File Stem:** 0001493152-25-013472
**Filing Date:** 2025-9
**Character Count:** 95734
**Document Hash:** c2f9d3c55c94a6a36cce47d186477c54
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-25-013472.hdr.sgml**: 20250915

**ACCESSION NUMBER**: 0001493152-25-013472

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 3

**CONFORMED PERIOD OF REPORT**: 20250915

**FILED AS OF DATE**: 20250915

**DATE AS OF CHANGE**: 20250915

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Pitanium Ltd
- **CENTRAL INDEX KEY:** 0002046573
- **STANDARD INDUSTRIAL CLASSIFICATION:** PERFUMES, COSMETICS & OTHER TOILET PREPARATIONS [2844]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 000000000
- **STATE OF INCORPORATION:** K3
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42669
- **FILM NUMBER:** 251314496

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 30F, GRAVITY, 29 HING YIP STREET
- **STREET 2:** KWUN TONG, KOWLOON,
- **CITY:** HONG KONG
- **PROVINCE COUNTRY:** K3
- **BUSINESS PHONE:** 00852-6206 2950

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 30F, GRAVITY, 29 HING YIP STREET
- **STREET 2:** KWUN TONG, KOWLOON,
- **CITY:** HONG KONG
- **PROVINCE COUNTRY:** K3

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington**, **D**.**C**. **20549**

**FORM 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER**

**PURSUANT TO RULE 13a-16 OR 15d-16**

**UNDER THE SECURITIES EXCHANGE ACT OF 1934**

**For the month of September 2025**

**Commission File Number**: **001**-**42669**

**PITANIUM LIMITED**

**(Registrant**'**s Name)**

**30F**, **Gravity**, **29 Hing Yip Street**,

**Kwun Tong**, **Kowloon**, **Hong Kong**

**(Address of principal executive offices)**

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

**Information Contained in this Form 6-K Report**

Pitanium Limited ("Pitanium") and its subsidiary (collectively, the "Company") is furnishing this Form 6-K to provide six-month interim financial statements.

**Special Note Regarding Forward-Looking Statements**

Statements in this current report with respect to the Company's current plans, estimates, strategies, beliefs and other statements that are not historical facts are forward-looking statements about the future performance of the Company. Forward-looking statements include, but are not limited to, those statements using words such as "believe," "expect," "plans," "strategy," "prospects," "forecast," "estimate," "project," "anticipate," "aim," "intend," "seek," "may," "might," "could" or "should," and words of similar meaning in connection with a discussion of future operations, financial performance, events, or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public. These statements are based on management's assumptions, judgments, and beliefs in light of the information currently available to it. The Company cautions investors that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, including but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the Company with the U.S. Securities and Exchange Commission. Therefore, investors should not place undue reliance on such forward-looking statements. Actual results may differ significantly from those set forth in the forward-looking statements.

All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by the cautionary statements and any other cautionary statements that may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

**Financial Statements and Exhibits.**

<u>Exhibits:</u>

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Unaudited Interim Consolidated Financial Statements as of March 31, 2025 and for the Six Months Ended March 31, 2025 and 2024](ex99-1.htm) |
| 99.2 | [Operating and Financial Review in Connection with the Unaudited Interim Consolidated Financial Statements for the Six Months Ended March 31, 2025 and 2024](ex99-2.htm) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Date: September 15, 2025 | **Pitanium Limited** | **Pitanium Limited** |
|  | By: | */s/ Ying Yeung Wong* |
|  | Name: | Ying Yeung Wong |
|  | Title: | Chief Executive Officer and Director |

---

## Exhibit 99.1

**Exhibit 99.1**

**UNAUDITED COMBINED FINANCIAL STATEMENTS**

**AS OF MARCH 31, 2025 AND SEPTEMBER 30, 2024 AND**

**FOR THE SIX-MONTH PERIODS ENDED MARCH 31, 2025 AND MARCH 31, 2024**

**PITANIUM LIMITED**

**INDEX TO UNAUDITED COMBINED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| Content | **Page** |
| [Unaudited Combined Balance Sheets as of March 31, 2025 and September 30, 2024](#sd_001) | F-2 |
| [Unaudited Combined Statements of Operations and Comprehensive Income (Loss) for the six-month periods ended March 31, 2025 and March 31, 2024](#sd_002) | F-3 |
| [Unaudited Combined Statements of Changes in Shareholders' Equity for the six-month periods ended March 31, 2025 and March 31, 2024](#sd_003) | F-4 |
| [Unaudited Combined Statements of Cash Flows for the six-month periods ended March 31, 2025 and March 31, 2024](#sd_004) | F-5 |
| [Notes to Unaudited Combined Financial Statements](#sd_005) | F-6-F-22 |

---

**PITANIUM LIMITED AND ITS SUBSIDIARY**

**Unaudited Combined Balance Sheet**

**As of September 30, 2024 and March 31, 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **As of<br> Sep 30, 2024** | **As of <br> Mar 31, 2025** | **As of <br> Mar 31, 2025** |
|  | Note | **HK$** | **HK$** | **US$** |
| **ASSETS** |  |  |  |  |
| **CURRENT ASSETS** |  |  |  |  |
| Cash |  | 16964489 | 11523694 | 1481218 |
| Inventories |  | 5037965 | 6034908 | 775708 |
| Other current assets |  | 3728625 | 6922896 | 889847 |
| Tax recoverable |  | - | 1892807 | 243295 |
| **TOTAL CURRENT ASSETS** |  | 25731079 | 26374305 | 3390068 |
| **NON-CURRENT ASSETS** |  |  |  |  |
| Property, plant and equipment |  | 3743333 | 4528721 | 582107 |
| Right-of-use assets |  | 5095127 | 2962759 | 380824 |
| Other non-current assets |  | 1127150 | 554728 | 71303 |
| Deferred tax assets |  | 450409 | 593904 | 76338 |
| **TOTAL NON-CURRENT ASSETS** |  | 10416019 | 8640112 | 1110572 |
| **TOTAL ASSETS** |  | **36147098** | **35014417** | **4500640** |
| **LIABILITIES** |  |  |  |  |
| **CURRENT LIABILITIES** |  |  |  |  |
| Other payables |  | 3470381 | 7953543 | 1022323 |
| Bank borrowings |  | 12267161 | 10596755 | 1362073 |
| Finance lease liabilities |  | 202350 | 453162 | 58248 |
| Operating lease liabilities |  | 4030908 | 2005927 | 257835 |
| Tax payable |  | 2296963 | - | - |
| **TOTAL CURRENT LIABILITIES** |  | 22267763 | 21009387 | 2700479 |
| **NON-CURRENT LIABILITY** |  |  |  |  |
| Finance lease liabilities |  | 504770 | 1482990 | 190619 |
| Operating lease liabilities |  | 1645751 | 1480141 | 190252 |
| **TOTAL NON-CURRENT LIABILITY** |  | 2150521 | 2963131 | 380871 |
| **TOTAL LIABILITY** |  | **24418284** | **23972518** | **3081350** |
| **SHAREHOLDERS' EQUITY** |  |  |  |  |
| Class A ordinary shares (par value of US$0.0001 per share; 18,000,000 Class A ordinary shares outstanding as of September 30, 2024 and March 31, 2025 respectively) |  | 13986 | 13986 | 1800 |
| Class B ordinary shares (par value of US$0.0001 per share; 3,000,000 Class B ordinary shares outstanding as of September 30, 2024 and March 31, 2025 respectively) |  | 2331 | 2331 | 300 |
| Additional paid-in capital |  | 100 | 100 | 13 |
| Subscription receivable |  | (16317) |  |  |
| Retained earnings |  | 11728714 | 11025482 | 1417177 |
| **TOTAL SHAREHOLDERS' EQUITY** |  | **11728814** | **11041899** | **1419290** |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** |  | **36147098** | **35014417** | **4500640** |

---

**\* The shares and per share information are presented on a retroactive basis to reflect the Reorganization completed on November 28, 2024.**

*See accompanying notes to the unaudited combined financial statements.*

**PITANIUM LIMITED AND ITS SUBSIDIARY**

**Unaudited Combined Statements of Operations and Comprehensive Income (Loss)**

**For the Six-Month Periods Ended March 31, 2025 and March 31 2024**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six-month period ended** | **For the six-month period ended** | **For the six-month period ended** |
|  | **Mar 31, 2024**<br>**HK$** | **Mar 31, 2025**<br>**HK$** | **Mar 31, 2025**<br>**US$** |
| **Revenue** | 35873602 | 36360058 | 4665553 |
| Cost of revenue | (7280663) | (4664412) | (598515) |
| **Gross profit** | **28592939** | **31695646** | **4067038** |
| **Operating expenses** |  |  |  |
| Selling and marketing expenses | (5877734) | (6425977) | (824551) |
| General and administrative expenses | (18884728) | (26604455) | (3413760) |
| **Total operating expenses** | **(24762462)** | **(33030432)** | **(4238311)** |
| **Income / (loss) from operation** | **3830477** | **(1334786)** | **(171273)** |
| **Other income / (expense)** |  |  |  |
| Interest income | 90905 | 22993 | 2950 |
| Other income | 114672 | 700000 | 89821 |
| Interest expenses | (439436) | (234934) | (30146) |
| Total other (expenses) / income, net | (233859) | 488059 | 62625 |
| **Income / (loss) before provision for income taxes** | **3596618** | **(846727)** | **(108648)** |
| Income tax (expenses**) / credit** | (494284) | 143495 | 18413 |
| **Net income / (loss)** | **3102334** | **(703232)** | **(90235)** |
| **Other comprehensive income** |  |  |  |
| Foreign currency translation adjustments, net of tax | - | - | - |
| **Total comprehensive income / (loss)** | **3102334** | **(703232)** | **(90235)** |
| Net income / (loss) per share | 0.15 | (0.03) | (0.004) |
| **Weighted average shares outstanding used in calculating basic and diluted net income / (loss) per share** | 21000000 | 21000000 | 21000000 |

---

**\* The shares and per share information for the six-month periods ended March 31, 2024 are presented on a retroactive basis to reflect the Reorganization completed on November 28, 2024.**

*See accompanying notes to the unaudited combined financial statements.*

**PITANIUM LIMITED AND ITS SUBSIDIARY**

**Unaudited Combined Statements of Changes in Shareholders' Equity**

**For the Six-Month Periods Ended March 31, 2025 and March 31, 2024**

**(Expressed in HK Dollars, except for the number of shares)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class A**<br> **Ordinary Shares**  | **Class A**<br> **Ordinary Shares**  | **Class B<br> Ordinary Shares** | **Class B<br> Ordinary Shares** | | | | |
|  | **Share** | **Amount** | **Share** | **Amount** | **Subscription**<br>**receivable** | **Additional Paid-in**<br>**Capital** | **Retained**<br>**Earnings** | **Total Shareholders'**<br>**Equity** |
|  | | HK$ | | **HK$** | HK$ | **HK$** | **HK$** | **HK$** |
| **Balance as of September 30, 2023** | 18000000 | 13986 | 3000000 | **2331** | (16317) | **100** | 10159634 | **10159734** |
| Net income |  |  |  |  |  |  | 3102334 | 3102334 |
| Dividend paid |  |  |  |  |  |  | (7327215) | **(7327215)** |
| **Balance as of April 1, 2024 \*** | 18000000 | 13986 | 3000000 | **2331** | (16317) | **100** | 5934753 | 5934853 |
| Net income |  |  |  | **-** |  | **-** | 5793961 | 5793961 |
| **Balance as of September 30, 2024 \*** | 18000000 | 13986 | 3000000 | **2331** | (16317) | **100** | 11728714 | 11728814 |
| Net loss |  |  |  |  |  |  | (703232) | (703232) |
| **Balance as of March 31, 2025** | 18000000 | 13986 | 3000000 | **2331** | - | **100** | **11025482** | 11041899 |

---

**\* The shares and per share information are presented on a retroactive basis to reflect the Reorganization completed on November 28, 2024.**

*See accompanying notes to the unaudited combined financial statements.*

**PITANIUM LIMITED AND ITS SUBSIDIARY**

**Unaudited Combined Statements of Cash Flows**

**For the Six-Month Periods Ended March 31, 2025 and March 31, 2024**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six-month period ended** | **For the six-month period ended** | **For the six-month period ended** |
|  | **Mar 31, 2024** | **Mar 31, 2025** | **Mar 31, 2025** |
|  | **HK$** | **HK$** | **US$** |
| **Cash flows from operating activities** |  |  |  |
| Net income / (loss) | 3102334 | (703232) | (90235) |
| Adjustments to reconcile net income to net cash used in operating activities: |  |  |  |
| Gain on disposal of property, plant and equipment | (114672) | (700000) | (89821) |
| Depreciation of property, plant and equipment | 1008608 | 1042811 | 133809 |
| Deferred income taxes | (234733) | (143495) | (18413) |
| Changes in operating assets and liabilities: |  |  |  |
| Inventories | 506007 | (996942) | (127923) |
| Other current assets | 871235 | (2621850) | (336424) |
| Other payables | 167707 | 4483162 | 575258 |
| Operating lease liabilities | (33690) | (58222) | (7471) |
| Tax payables | 239685 | (4189770) | (537612) |
| **Net cash generated from / (used in) operating activities** | **5512481** | **(3887538)** | **(498832)** |
| **Investing activities** |  |  |  |
| Purchase of property, plant and equipment | (337437) | (1828200) | (234586) |
| Proceeds from disposal of property, plant and equipment | 648995 | 700000 | 89821 |
| **Net cash generated from / (used in) investing activities** | **311558** | **(1128200)** | **(144765)** |
| **Financing activities** |  |  |  |
| Proceeds from bank borrowings | 9000000 |  |  |
| Repayment of bank borrowings | (1080857) | (1670406) | (214339) |
| Proceeds from the issuance of new shares |  | 16317 | 2094 |
| Proceeds from finance lease | 850000 | 1358000 | 174252 |
| Principal payments under finance lease obligations | (213652) | (128968) | (16549) |
| Dividend paid | (7327215) | - | - |
| **Net cash generated from / (used in) financing activities** | **1228276** | **(425057)** | **(54542)** |
| Effect of exchange rate changes on cash held in foreign currencies |  |  | (4026) |
| Net change in cash | 7052315 | (5440795) | (698139) |
| Cash at the beginning of the year | 18974339 | 16964489 | 2183383 |
| **Cash at the end of the year** | **26026654** | **11523694** | **1481218** |
| **Supplemental disclosures of cash flows information:** |  |  |  |
| Cash paid for income taxes | 489332 | 4189770 | 537612 |
| Cash paid for interest expense | (439436) | (234934) | (30146) |
| Cash paid for operating leases | 3570180 | 3946554 | 506403 |
| **Supplemental disclosures of non-cash flows information:** |  |  |  |
| Lease liabilities arising from obtaining right-of-use assets | 312160 |  |  |

---

*See accompanying notes to the unaudited combined financial statements.*

**PITANIUM LIMITED AND ITS SUBSIDIARY**

**Notes to Unaudited Combined Financial Statements**

**Note 1. Organization and Business Description**

Pitanium Limited ("Pitanium", the "Company") is a company incorporated in the British Virgin Islands on October 22, 2024. The Company is a holding company and conducts businesses primarily through its subsidiary (collectively, the "Group"). The principal activities of the Group encompass selling a diverse range of beauty products, including well-known brand name products and self-developed items, through both online platforms and retail outlets in Hong Kong.

**Reorganization**

In anticipation of an initial public offering ("IPO") of its equity securities, Pitanium Limited ("Pitanium", "the Company") was incorporated under the laws of the British Virgin Islands as the holding company of Here We Seoul Limited ("HWS") on October 22, 2024.

On November 28, 2024, Pitanium acquired 100% of the equity interests from the Original shareholders in HWS, the primary operating subsidiary of the Company in Hong Kong.

On October 25, 2024, and November 28, 2024, the Company issued proportionate shares to the Original shareholders of HWS, resulting in the same shareholding structure for the Company and HWS.

Due to the fact that the Company and its subsidiary were effectively controlled by the same shareholders immediately before and after the reorganization completed on November 28, 2024, as described above (the "Reorganization"), the Reorganization was accounted for as a recapitalization. The restructuring mentioned above has been accounted for as a transfer of assets among entities under common control as the beneficial interest of each shareholder immediately before and after the completion of the Reorganization remained unchanged. Mr. Ying Yeung Wong and Ms. Yuen Yi Young remain the controlling shareholders both immediately before and after completion of Reorganization. Given such Reorganization was completed after September 30, 2024, the Group's unaudited combined financial statements have been prepared as if the current corporate structure has been in existence throughout the periods presented.

As of March 31, 2025, the Company's wholly owned subsidiary is Here We Seoul Limited, a company incorporated in Hong Kong on December 9, 2013. The principal of HWS is selling a diverse range of beauty products.

**Note 2. Summary of Significant Accounting Policies**

***Basis of Presentation***

The accompanying unaudited combined financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (the "U.S. GAAP").

***Principles of combination***

As the Reorganization was accounted for as restructuring of entities under common control, the accompanying unaudited combined financial statements have been prepared by using historical cost basis and include the assets, liabilities, revenue, expenses and cash flows that were directly attributable to these entities for all periods presented.

The unaudited combined financial statements include the financial statements of the Company and its subsidiary. All intercompany transactions and balances among the Company and its subsidiary have been eliminated upon combination. A subsidiary is an entity in which (i) the Company directly or indirectly controls more than 50% of the voting power; or (ii) the Company has the power to appoint or remove the majority of the members of the board of directors or to cast a majority of votes at the meetings of the board of directors or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or equity holders. For subsidiaries where the Group's ownership in the subsidiary is less than 100%, the equity interest not held by the Group is shown as non-controlling interests.

***Use of Estimates and Assumptions***

 ****

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities as of the date of the financial statements. These estimates and assumptions also impact the reported amounts of revenues and expenses during the reporting period.

These estimates and judgments are based on historical data, information currently available to the Group, and various other assumptions that the Group believes are reasonable under the circumstances. Significant estimates made by management include, but are not limited to, the allowance for credit losses, determination of the useful lives of property, plant, and equipment, impairment of long-lived assets, valuation of deferred tax assets, uncertain tax positions, operating lease right-of-use assets and liabilities, revenue recognition, and contingencies.

Actual results could differ from those estimates.

***Foreign Currency Translation and transaction***

The reporting currency of the Company and its subsidiary is the Hong Kong Dollar ("HKD"). The functional currency of the Company and its subsidiary is the Hong Kong dollars ("HKD"). The USD information presented is provided for convenience and translation purposes in accordance with Rule 3-20(b)(1) of Regulation S-X.

The unaudited financial statements of the Group with functional currency of HK$, are translated into US$ using the exchange rate as of the balance sheet date for assets and liabilities and average exchange rate for the year for income and expense items. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in statements of changes in shareholders' equity. Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss). Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.

For the Group, except for the shareholders' equity, the balance sheet accounts on September 30, 2024 and March 31, 2025 were translated at HK$7.7698 to US$1.00 and HK$7.779875 to US$1.00, respectively. The shareholders' equity accounts were translated at their historical rate. The average translation rates applied to statements of operations for the six months ended March 31, 2024 and March 31, 2025 were HK$7.8269 to $1.00 and HK$7.7933 to US$1.00, respectively. Cash flows were also translated at average translation rates for the periods. Therefore, amounts reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets.

***Cash***

Cash consists of cash on hand, deposits with banks and other monetary funds. The Group maintains cash with various financial institutions primarily in Hong Kong. The Group considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. As of September 30, 2024 and March 31, 2025, cash balances were HK$16,964,489 (approximately US$2,183,388) and HK$11,523,694 (approximately US$1,481,218) respectively. The majority of the Group's cash is saved in licensed banks in the Hong Kong. Cash balances in bank accounts in Hong Kong are insured under the Deposit Protection Scheme introduced by the Hong Kong Government for a maximum amount of HK$800,000 (approximately US$102,382). The Group has not experienced any losses in bank accounts and believes it is not exposed to any risks on its cash in bank accounts.

The nature and components of the cash as of September 30, 2024 and March 31, 2025 were as follow:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of <br> Sep 30, 2024** | **As of <br> Mar 31, 2025** | **As of <br> Mar 31, 2025** |
|  | **HK$** | **HK$** | **US$** |
| Bank balances kept in Hong Kong licensed banks | 16037938 | 11041770 | 1419273 |
| Cash on hand | 926551 | 481924 | 61945 |
|  | 16964489 | 11523694 | 1481218 |

---

***Other non-current assets***

Other non-current assets represent the amounts that the Group has an unconditional right to consideration, which are stated at the historical carrying amount net of allowance for credit loss.

***Inventories.***

Inventories primarily consist of finished goods. which are stated at the lower of cost or net realizable value. Cost of inventories is determined using the first-in, first-out method and includes all costs to acquire and other costs to bring the inventories to their present location and condition. Our Group takes ownership, risks, and rewards of the products purchased.

Inventories are written down to estimated net realizable value, which could be impacted by certain factors including historical usage, expected demand, anticipated sales price, and other factors. Our Group continuously evaluates the recoverability of our Group's inventories, and inventory provisions are recorded in the statements of operations. Our Group did not record write-down of potentially obsolete inventories or lower cost or market adjustment for the six-month periods ended March 31, 2024 and March 31, 2025.

***Other current assets***

Other current assets represent advance payments made to the vendors or service providers for future services. Prepayments are short-term in nature and are reviewed periodically to determine whether their carrying value has become impaired. The Group considers the assets to be impaired if the realizability of the prepayments becomes doubtful. As of September 30, 2024, and March 31, 2025, there was no allowance recorded as the Group considers all of the prepayments fully realizable.

Prepayments represented deposits made to suppliers for acquiring beauty products, with product delivery scheduled within 1 to 6 months. Other deposits mainly comprised utility and building management fee deposits, which will only be refunded upon the Group vacating the property. Rental deposits will only be refunded by the landlords in the event of rental agreements expiring without renewal.

***Property, Plant and Equipment, net***

Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation are provided for on a straight-line basis following industry standards for the related assets as follows:

---

| | |
|:---|:---|
| Furniture and fixture | 5 years |
| Motor vehicle | 3 years |
| Electronic equipment | 5 years |
| Leasehold improvements | 5 years |

---

Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the statements of operations and comprehensive income in other income or expenses.

The Group also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives.

**Finance lease**

A lease is classified as a finance lease if it meets any of the following criteria at lease commencement:

1. The
 lease transfers ownership of the underlying asset to the lessee by the end of the lease term

2. The
 lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise.

3. The
 lease term is for the major part of the remaining economic life of the underlying asset. However, if the commencement date falls
 at or near the end of the economic life of the underlying asset, this criterion shall not be used for purposes of classifying the
 lease.

4. The
 present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the
 lease payments in accordance with ASC 842-10-30-5(f) equals or exceeds substantially all of the fair value of the underlying asset.

5. The
 underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease
 term.

Finance leases are recorded as both an asset and a liability at the lower of the fair value of the asset and the present value of the minimum lease payments at the commencement of the lease term. Finance lease payments are apportioned between the finance charge and the reduction of the outstanding liability.

**Operating leases**

The Group determines whether an arrangement is or contains a lease at inception. A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. All leases of the Group are currently classified as operating leases. Operating leases are included in operating lease right-of-use ("ROU") assets, operating lease liability, current, and operating lease liability, non-current in the Group's balance sheets. Please refer to Note 7 for the disclosures regarding the Group's method of adoption of ASC 842 and the impacts of adoption on its financial position, results of operations and cash flows.

ROU assets represent the Group's right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. The operating lease ROU assets and lease liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. As most of the Group's leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. The operating lease ROU assets also includes any lease payments made and excludes lease incentives. The Group's lease terms may include options to extend or terminate the lease. Renewal options are considered within the ROU assets and lease liabilities when it is reasonably certain that the Group will exercise that option. Lease expenses for lease payments are recognized on a straight-line basis over the lease term.

For operating leases with a term of one year or less, the Group has elected not to recognize a lease liability or ROU asset on its balance sheets. Instead, it recognizes the lease payments as expenses on a straight-line basis over the lease term. Short-term lease costs are immaterial to its statements of operations and cash flows. The Group has operating lease agreements with insignificant non-lease components and have elected the practical expedient to combine and account for lease and non-lease components as a single lease component.

The Group reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Group reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Group has elected to include the carrying amount of operating lease liabilities in any tested asset group and include the associated operating lease payments in the undiscounted future pre-tax cash flows.

***Fair Value of Financial Instruments***

The fair value of a financial instrument is defined as the exchange price that would be received from an asset or paid to transfer a liability (as exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The carrying amounts of financial assets and liabilities, such as cash, accounts receivable, prepayments and other current assets, accounts payable, and other current liabilities, approximate their fair values because of the short maturity of these instruments and market rates of interest.

ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

---

| | |
|:---|:---|
| Level 1 — | Quoted prices in active markets for identical assets and liabilities. |
| Level 2 — | Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
| Level 3 — | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |

---

The Group considers the carrying amount of its financial assets and liabilities, which consist primarily of deferred IPO expenses, prepayments and other current assets, accounts payable, income taxes payable, accrued expenses and other current liabilities approximate the fair value of the respective assets and liabilities as of September 30, 2024 and March 31, 2025 due to their short-term nature.

***Bank borrowings***

Bank borrowings are recognized initially at fair value, net of transaction costs incurred. Bank borrowings are subsequently stated at amortized cost; any difference between the proceeds net of transaction costs and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method. At the end of balance sheet dates, the total outstanding balances of the bank loan are classified as current liability as the bank has sole discretion to request a full redemption at any time.

***Other payables***

Other payables mainly represented accrued salaries and pension costs, accrued consultancy fee and accrued accounting fees. They are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). Otherwise, they are presented as non-current liabilities.

***Related party transactions***

A related party is generally defined as (i) any person and or their immediate family hold 10% or more of the Company's securities, (ii) the Company's management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Related parties may be individuals or corporate entities.

Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature.

***Revenue Recognition***

The Group adopted ASC Topic 606 Revenue from Contracts with Customers ("ASC 606") on October 1, 2022. Accordingly, the financial statements for the six-month periods ended March 31, 2024 and March 31, 2025 are presented under ASC 606. Under ASC 606, revenue is recognized when control of promised goods or services is transferred to the Group's customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract(s) with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) we satisfy the performance obligation.

The Group recognizes revenue at a point in time when the control of products have been transferred to customers. The transfer of control is considered complete when products have been picked up or accepted by customers. In the normal course of business, the Group's products are sold with no right of return unless the item is defective.

For the six-month periods ended March 31 2024 and March 31, 2025, the Group's revenues were primarily derived from sales of products through their online shop and offline sales channels mainly their retail stores. The product categories including (i) skincare products; (ii) haircare products; (iii) cosmetic products; and (iv) other products.

The Group recognizes revenue for its products sold when it has satisfied a performance obligation by transferring significant risks and rewards of ownership of promised products to the customer. Furthermore, the customer obtains the legal title of and accepts the promised products at a specific time. For each performance obligation satisfied at a point in time, the Group recognizes revenue at a point in time by measuring whether the performance obligation has been met.

*<u>Segment reporting</u>*

The Company operates and manages its business as a single segment, in accordance with ASC 280, Segment Reporting. The Company's chief operating decision maker ("CODM") is the Chairman. The Company's CODM assesses the Company's performance and results of operations on a consolidated basis. The Company generates substantially all of its revenue from clients in Hong Kong. Accordingly, no geographical segments are presented. Substantially all of the Company's long-lived assets are located in Hong Kong.

*<u>Revenue from sales of products through online shop</u>*

The Group generates revenue over time from the sale of (i) skincare products; (ii) haircare products; (iii) cosmetic products; and (iv) other products to customers through their online shop. The Group hosts and manages an online shop to display its best-selling products and latest marketing and promotional initiatives on its home page. The Group regularly updates its online shop to keep customers updated about its product offerings.

*<u>Revenue from sales of products through offline</u>*

For the six-month periods ended March 31, 2024 and March 31, 2025, the Group generates revenue from operating retail stores in prime shopping areas in Hong Kong, including Causeway Bay, Tsim Sha Tsui, Mong Kok, Tseung Kwan O, Tuen Mun, Yuen Long and Shatin by selling the (i) skincare products; (ii) haircare products; (iii) cosmetic products; and (iv) other products.

The summary of the Group's total revenues by online and retailing sales for the six-month periods ended March 31, 2024 and March 31, 2025 were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Mar 31, 2024** | **Mar 31, 2025** | **Mar 31, 2025** |
|  | **HK$** | **HK$** | **US$** |
| Online Sales | 19713967 | 20126926 | 2582593 |
| Retailing Sales | 16159635 | 16233132 | 2082960 |
| **Total** | **35873602** | **36360058** | **4665553** |

---

The summary of the Group's total revenues by product categories for the six-month periods ended March 31, 2024 and 31 March 2025 was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Mar 31, 2024** | **Mar 31, 2025** | **Mar 31, 2025** |
|  | **HK$** | **HK$** | **US$** |
| Skincare | 16530957 | 19086428 | 2449081 |
| Hair Care | 10831345 | 8543365 | 1096245 |
| Cosmetics | 5413372 | 4966139 | 637232 |
| Others | 3097928 | 3764126 | 482995 |
| **Total** | **35873602** | **36360058** | **4665553** |

---

The skincare products mainly include the facial-care products such as serums, cleansing products, face masks and toners.

The haircare products mainly include shampoo, conditioners, hair serum, hair supplements, hair treatment, scalp scrub, hair oil and hair masks.

The Cosmetic products mainly include the sales of primer, compact powder, eyeliner, mascara, lipsticks, lip gloss and lip balm.

Other products mainly include the body-care products such as deodorant, makeup remover, body lotion and sunblock as well as health supplements, laundry detergents and dishwashing detergents.

***Cost of Revenue***

The Group's cost of revenue is primarily comprised of the purchase costs, transportation and packaging costs. These costs are expenses as incurred.

***Selling and marketing expenses***

Selling and marketing expenses mainly represented our advertising and marketing expenses for (i) the advertisements through Facebook and Small Red Book and procurement of the SEO-search engine and online media search services; (ii) the production of the videos and photos related to the advertisements; and (iii) the offline advertisements in public transport, magazines and shopping malls.

***General and administrative expenses***

General and administrative expenses mainly consist of (i) salaries, welfare and insurance expenses for the Group's administrative personnel, (ii) depreciations and amortizations, (iii) lease expenses relating to leased properties used for administrative, warehouse and retail shops, and (iv) others, which primarily include traveling, legal and professional fee, office expenses, and other miscellaneous expenses for administrative purposes.

***Borrowing Costs***

All borrowing costs are recognized in interest expenses in the statement of operations and comprehensive income in the period in which they are incurred.

***Government Subsidies***

Government subsidies primarily relate to one-off entitlement granted by the Hong Kong government pursuant to the Employment Support Scheme under the Anti-epidemic Fund. The Group recognizes government subsidies as other income when they are received because they are not subject to any past or future conditions. No government subsidies were received for the six-month periods ended March 31, 2024 and March 31, 2025.

***Employee Benefit Plan***

Employees of the Group located in Hong Kong participate in a compulsory saving scheme (pension fund) for the retirement of residents in Hong Kong. Employees are required to contribute monthly to mandatory provident fund schemes provided by approved private organizations, according to their salaries and the period of employment. The Group required to contribute to the plan based on certain percentages of the employees' salaries, up to a maximum amount specified by the local government. Total expenses for the plan were HK$720,042 (approximately US$91,996) and HK$728,504 (approximately US$93,478) for the six-month periods ended March 31, 2024 and March 31, 2025, respectively.

***Income Taxes***

The Group accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

The provisions of ASC 740-10-25, "Accounting for Uncertainty in Income Taxes," prescribe a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures.

The Group believes there were no uncertain tax positions at September 30, 2024 and March 31, 2025, respectively. The Group does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. The Group is not currently under examination by an income tax authority, nor has been notified that an examination is contemplated.

***Comprehensive Income***

Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income refers to revenue, expenses, gains and losses that under U.S. GAAP are recorded as an element of shareholders' equity but are excluded from net income. Other comprehensive income consists of foreign currency translation adjustment resulting from the Group translating its financial statements from functional currency into reporting currency. The financial statements of the Group with a functional currency of HK$, are translated into US$ presentation currency using the exchange rate as of the balance sheet date for assets and liabilities and average exchange rate for the year for income and expense items. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Translation adjustments resulting from this process are included in accumulated foreign currency translation adjustments under other comprehensive income (loss).

***Earnings Per Share***

The Group computes earnings per share ("EPS") in accordance with ASC 260, "Earnings per Share" ("ASC 260"). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS are computed by dividing income available to ordinary shareholders of the Group by the weighted average ordinary shares outstanding during the period. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. As of September 30, 2024, and March 31, 2025, there were no dilutive shares.

***Commitments and Contingencies***

In the normal course of business, the Group is subject to contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters. Liabilities for contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.

If the assessment of a contingency indicates that it is probable that a material loss is incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the Group's financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed.

***Significant Risks***

*Currency Risk*

The Group's operating activities are transacted in Hong Kong. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations. The Group considers the foreign exchange risk in relation to transactions denominated in US$ with respect to HK$ is not significant as HK$ is pegged to US$.

*Concentration and Credit Risk*

Financial instruments that potentially subject the Group to the concentration of credit risks consist of cash and accounts receivable. The maximum exposures of such assets to credit risk are their carrying amounts as of the balance sheet dates. The Group deposits its cash with financial institutions located in Hong Kong. As of September 30, 2024, and March 31, 2025, HK$16,037,938 (approximately US$2,064,138) and HK$11,041,770 (approximately US$1,419,273) were deposited with financial institutions located in Hong Kong. The Deposit Protection Scheme introduced by the Hong Kong Government insured each depositor at one bank for a maximum amount of HK$800,000 (approximately US$102,829). Otherwise, these balances are not covered by insurance. The Group believes that no significant credit risk exists as these financial institutions have high credit quality and the Group has not incurred any losses related to such deposits.

Given that the Group regularly evaluates its customers' financial standing and typically does not require collateral for transactions, the credit risk associated with accounts receivable remains low. The Group primarily focuses on retail sales where payments are received before goods are delivered, significantly reducing the risk of doubtful debts. Consequently, the Group has not deemed it necessary to establish allowances for doubtful accounts as reflected in financial records over the reported periods.

For the six-month periods ended March 31, 2024 and March 31, 2025, all of the Group's assets were located in Hong Kong and all of the Group's revenue were derived from Hong Kong. The Group does not have a concentration of its revenue and accounts receivable with specific customers.

The Group's business model in retail selling is characterized by a diversified customer base without any single predominant client. This distribution of sales across numerous customers helps to mitigate dependency on any one particular buyer, reducing the risk associated with relying heavily on a sole source of revenue.

Furthermore, the Group's sales data reflects this diversified customer base. The total sales attributed to the top 10 customers combined do not represent a significant portion of the Group's overall sales revenue. Specifically, the sales generated from these top 10 customers collectively account for less than 2% of the Group's total sales volume.

This dispersion of sales across multiple customers underscores the Group's resilience to fluctuations or potential issues that could arise from relying on a small number of major clients. By not being heavily reliant on a few key customers, the Group can better withstand individual customer-related challenges and maintain a more stable revenue stream. This diversified approach to customer distribution helps to safeguard the Group's financial stability and reduces the impact of any potential fluctuations in the purchasing behavior of specific clients.

Interest rate risk

Fluctuations in market interest rates may negatively affect the Group's financial condition and results of operations. The Group is exposed to floating interest rate risk on cash deposit and floating rate borrowings, and the risks due to changes in interest rates is not material. The Group has not used any derivative financial instruments to manage the interest risk exposure.

**Recent Accounting Pronouncements**

The Group continually assesses new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Group's financial reporting, the Group undertakes a study to determine the consequences of such change to its financial statements and ensures that there are proper controls in place to ascertain that the Group's financial statements properly reflect the change.

In October 2023, FASB issued ASU No. 2023-06, *Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative*. The amendments in the ASU are intended to amend certain disclosure and presentation requirements for a variety of topics within the ASC. These amendments align the requirements in the ASC to the removal of certain disclosure requirements set out in Regulation S-X and Regulation S-K, as announced by the SEC. The effective date for each amended topic in the ASC is either the date on which the SEC's removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, or on June 30, 2027, if the SEC has not removed the requirements by that date. Early adoption is prohibited. We are currently evaluating the effects of the standard on our consolidated financial statements and related disclosures.

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures* ("ASU 2023-09"). ASU 2023-09 expands existing income tax disclosures for rate reconciliations by requiring disclosure of certain specific categories and additional reconciling items that meet quantitative thresholds and expands disclosures for income taxes paid by requiring disaggregation by certain jurisdictions. ASU 2023-09 is effective for annual periods beginning after December 15, 2024; early adoption is permitted. The Company is evaluating the impact the updated guidance will have on its disclosures for the year ending March 31, 2026.

In November 2024, the FASB issued ASU No. 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)* ("ASU 2024-03"). ASU 2024-03 requires, in the notes to the annual and interim financial statements, disaggregated information about certain income statement expense line items. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact the updated guidance will have on its disclosures.

In January 2025, the FASB issued ASU 2025-01, "Income Statement – Comprehensive Income – Expense Disaggregation Disclosure (Subtopic 220-40): Clarifying the Effective Date." This pronouncement revises the effective date of ASU 2024-03 and clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Entities within the ASU's scope are permitted to early adopt the accounting standard update.

**Note 3. Inventories**

Inventories consisted of the following at:

---

| | | | |
|:---|:---|:---|:---|
|  | **Sep 30, 2024** | **Mar 31, 2025** | **Mar 31, 2025** |
|  | **HK$** | **HK$** | **US$** |
| Finished Goods | 5037965 | 6034908 | 775708 |
| **Total Inventories** | **5037965** | 6034908 | 775708 |

---

The Group's inventory turnover days increased from 126 days for the six-month period ended March 31, 2024, to 217 days by March 31, 2025, reflecting a longer inventory holding period. To mitigate the risk of obsolete inventory, the Group actively promotes and offers complimentary items for products that may have lower demand. These complimentary items are managed through close monitoring of demand, usage, and sales patterns to ensure they contribute positively to inventory turnover and do not result in potential obsolescence issues.

As of March 31, 2025, the inventories did not contain any complimentary items. All complimentary items were recorded as cost of sales during the year.

**Note 4. Other Current Assets**

Other current assets consisted of the following at:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** |
|  | **Sep 30, 2024** | **Mar 31, 2025** | **Mar 31, 2025** |
|  | **HK$** | **HK$** | **US$** |
| Deferred initial public offering costs (Deferred IPO costs) |  | 3680675 | 473102 |
| Rental deposits | 1948820 | 2137499 | 274747 |
| Other deposits | 320600 | 207686 | 26696 |
| Prepayment | 1459205 | 897036 | 115302 |
| **Total other current assets** | **3728625** | **6922896** | **889847** |

---

Deferred IPO costs consist of legal, accounting, underwriting, and other professional fees that are directly attributable to the Group's planned or completed initial public offering of its shares. These costs are initially capitalized as an asset within Other Current Assets on the balance sheet.

Upon completion of the offering, the deferred IPO costs will be reclassified to shareholders' equity as a reduction of the gross proceeds from the offering. If the IPO is abandoned, the deferred IPO costs will be expensed immediately in the period in which the decision to terminate the offering is made.

IPO-related costs that are not directly attributable to the equity issuance — such as those related to ongoing accounting compliance, general legal services, or internal administrative efforts — are expensed as incurred.

As of 31 March 2025, Other Current Assets include US$3,680,675 of deferred IPO costs related to the Group's planned initial public offering. These costs will be charged against equity upon completion of the offering.

**Note 5. Property, plant and Equipment, net**

Property, plant and equipment, stated at cost less accumulated depreciation, consisted of the following as of :

---

| | | | |
|:---|:---|:---|:---|
|  | **As of**<br>**Sep 30, 2024** | **As of**<br>**Mar 31, 2025** | **As of**<br>**Mar 31, 2025** |
|  | **HK$** | **HK$** | **US$** |
| Office furniture and equipment | 2590799 | 2885799 | 370931 |
| Motor vehicles | 3803655 | 3714960 | 477509 |
| Leasehold improvements | 5172100 | 5172100 | 664805 |
| Less: accumulated depreciation | (7823221) | (7244138) | (931138) |
| **Total** | **3743333** | **4528721** | **582107** |

---

Depreciation expenses of property, plant and equipment totaled HK$1,771,926 (approximately US$226,389) and HK$1,042,812 (approximately US$133,809) for the six-month periods ended March 31 2024 and March 31, 2025, respectively.

In the six-month period ended March 31, 2025, the Group sold one motor vehicle, incurring a gain of HK$700,000 (approximately US$89,821) from the disposal of these assets. In the six-month ended March 31, 2024, the Group the Group sold two motor vehicles, incurring a gain of HK$114,672 (approximately US$14,651) from the disposal of these assets.

**Note 6. Finance Lease Liabilities**

The leases of the Company were classified as finance leases mainly for motor vehicles.

Supplemental balance sheet information related to finance lease was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of**<br>**Sep 30, 2024** | **As of**<br>**Mar 31, 2025** | **As of**<br>**Mar 31, 2025** |
|  | **HK$** | **HK$** | **US$** |
| Current portion of finance lease liabilities | 202350 | 453162 | 58248 |
| Non-current finance lease liabilities | 504770 | 1482990 | 190619 |
|  | 707120 | 1936152 | 248867 |

---

Expenses for finance lease for the six-month periods ended March 31, 2024 and March 31, 2025 were HK$236,415 (approximately US$30,205) and HK$158,685 (approximately US$30,362) respectively.

The weighted average remaining lease terms and discount rates for all of finance leases were as follows as of September 30, 2024 and March 31, 2025:

---

| | | |
|:---|:---|:---|
|  | **As of**<br>**Sep 30, 2024** | **As of**<br>**Mar 31, 2025** |
| **Weighted average discount rate** |  |  |
| OCBC Bank (Hong Kong) Limited | 6.14% | 5.58% |

---

The following table presents maturity of finance lease liabilities as of March 31, 2025:

---

| | |
|:---|:---|
|  | **As of Mar 31** |
|  | **HK$** |
| **Remaining finance lease term:** |  |
| FY2026 | 453162 |
| FY2027 | 481392 |
| FY2028 | 449307 |
| FY2029 | 288133 |
| FY2030 | 264159 |
| **Total payment** | 1936153 |

---

**Note 7. Operating Lease Liabilities**

As of September 30, 2024, and March 31, 2025, the Group has operating leases with its third parties recorded on its balance sheets for office and shop spaces that expire on various dates through October 2026. When determining the lease term, at lease commence date, the Group considers options to extend or terminate the lease when it is reasonably certain that it will exercise or not exercise that option. The Group's lease arrangements may contain both lease and non-lease components. The Group has separately accounted for lease and non-lease components based on their nature. Payments under the Group's lease arrangement are fixed.

The following table shows ROU assets and operating lease liabilities, the unaudited combined financial statement line items as of September 30, 2024 and March 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** |
|  | **Sep 30, 2024** | **Mar 31, 2025** | **Mar 31, 2025** |
|  | **HK$** | **HK$** | **US$** |
| **Assets** |  |  |  |
| Operating lease right-of-use assets, net | 5095127 | 2962759 | 380824 |
| **Liabilities** |  |  |  |
| Operating lease liabilities, current | 4030908 | 2005927 | 257835 |
| Operating lease liabilities, non-current | 1645751 | 1480141 | 190252 |
| **Total lease liabilities** | **5676659** | **3486068** | **448087** |
| Weighted average remaining lease term (in years) | 2.76. | 3.11 | 3.11 |
| Weighted average discount rate (%) | 3.60% | 3.60% | 3.60% |

---

Information relating to operating lease activities during the six-month periods ended March 31, 2024 and March 31, 2025, is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six-month period ended** | **For the six-month period ended** | **For the six-month period ended** |
|  | **Mar 31, 2024** | **Mar 31, 2025** | **Mar 31, 2025** |
|  | **HK$** | **HK$** | **US$** |
| Operating lease right-of-use assets, obtained in exchange for operating leases | 312160 | - | - |
| ***Operating lease expenses*** |  |  |  |
| Total operating lease expenses | 3570180 | 3946554 | 506403 |

---

Maturities of lease liabilities were as follows:

---

| | | |
|:---|:---|:---|
|  | **Mar 31, 2025** | **Mar 31, 2025** |
|  | **HK$** | **US$** |
| **For the year ending March 31** |  |  |
| 2026 | 2746095 | 352974 |
| 2027 | 819910 | 105389 |
| Total lease payments | 3566005 | 458363 |
| Less: imputed interest | (79937) | (10275) |
| Total | 3486068 | 448088 |

---

**Note 8. Bank borrowings** 

Components of bank borrowings are as follows as of September 30, 2024 and March 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Note** | **Interest rate** | **Sep 30, 2024** | **Mar 31, 2025** | **Mar 31, 2025** |
|  | | | **HK$** | **HK$** | **US$** |
| Bank of China (Hong Kong) – Loan 1 | (1) | 3.625% | 9000000 | 8707159 | 1119190 |
| Bank of China (Hong Kong) – Loan 2 | (2) | 5.000% | 3267161 | 1889596 | 242883 |
| &nbsp;&nbsp;&nbsp;Total |  |  | 12267161 | 10596755 | 1362073 |

---

(1) On November 29, 2023, our Operating Subsidiary borrowed HK$9,000,000 (approximately US$1,158,328) as working capital for 120 months at an annual interest rate of 3.625% under the loan agreement with Bank of China (Hong Kong). The loan was secured by personal guarantees from the directors of Here We Seoul Limited and under the SME Financing Guarantee Scheme guaranteed by The HKMC Insurance Limited. The outstanding balance of the bank loan is classified as current liability as the bank has sole discretion to request a full redemption at any time.

(2) On November 29, 2022, our Operating Subsidiary borrowed HK$8,000,000 (approximately US$1,029,625) as working capital for 36 months at an annual interest rate of 5% under the loan agreement with Bank of China (Hong Kong). The loan was secured by personal guarantees from the directors of Here We Seoul Limited and under the SME Financing Guarantee Scheme guaranteed by The HKMC Insurance Limited. The outstanding balance of the bank loan is classified as current liability as the bank has sole discretion to request a full redemption at any time.

Interest expenses pertaining to the above bank borrowings for the six month periods ended March 31, 2024 and March 31, 2025 amounted to HK$234,290 (approximately US$29,934) and HK$205,217 (approximately US$26,332), respectively.

As of the date of this report, a total of HK$6,403,245 (approximately US$823,052) of the bank borrowings as of March 31, 2025 has been repaid.

**Note 9. Other non-current assets**

Other non-current assets are as follows as of September 30, 2024 and March 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **Sep 30, 2024** | **Mar 31, 2025** | **Mar 31, 2025** |
|  | **HK$** | **HK$** | **US$** |
| Rental deposits | 924564 | 554728 | 71303 |
| Other deposits | 202586 | - | - |
| **Total other non-current assets** | **1127150** | 554728 | 71303 |

---

The majority of other deposits consist of utility and building management fee deposits, refundable only when the Group leaves the property. Landlords will refund rental deposits if rental agreements expire without renewal. Rental agreements are scheduled to expire between April 2025 and October 2026.

**Note 10. Other Payable**

Components of other payable are as follows as of September 30, 2024 and March 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **Sep 30, 2024** | **Mar 31, 2025** | **Mar 31, 2025** |
|  | **HK$** | **HK$** | **US$** |
| Accruals for operating expenses | 2013700 | 6500402 | 835541 |
| Salary payable | 1456681 | 1453141 | 186782 |
| Total other payables | 3470381 | 7953543 | 1022323 |

---

The increase in accruals for operating expenses as of 31 March 2025 is primarily due to higher legal and professional fees, which account for approximately HK$4 million. These costs were incurred to enhance the company's accounting, operational, and marketing functions, as well as to meet IPO-related requirements.

Subsequent to the reporting date, the majority of these accrued expenses have been settled, and management continues to monitor and manage working capital prudently.

**Note 11. Income Taxes**

*Hong Kong*

In accordance with the relevant tax laws and regulations of Hong Kong, a company registered in Hong Kong is subject to income taxes within Hong Kong at the applicable tax rate on taxable income. Hong Kong profit tax rates are 8.25% on assessable profits up to HK$2,000,000 (US$256,631), and 16.5% on any part of assessable profits exceeding that threshold.

For the six-month period ended March 31, 2025, the Group incurred a tax loss and, as such, no current income tax expense is recognized. Instead, a deferred tax credit has been recorded, arising from temporary differences and unused tax losses. In contrast, for the six-month period ended March 31, 2024, the Group generated taxable profits and was subject to current Hong Kong profits tax accordingly.

The components of the income tax (expense) / credit are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six-month period ended** | **For the six-month period ended** | **For the six-month period ended** |
|  | **Mar 31, 2024** | **Mar 31, 2025** | **Mar 31, 2025** |
|  | **HK$** | **HK$** | **US$** |
| **Current** |  |  |  |
| Hong Kong | 729017 |  |  |
| **Deferred** |  |  |  |
| Hong Kong | (234733) | (143495) | (18413) |
| **Income tax expenses / (credit)** | 494284 | (143495) | (18413) |

---

The Company measures deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the corresponding tax bases of assets and liabilities, using the applicable tax rates.

Components of the Group's deferred tax asset and liability are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Sep 30, 2024** | **Mar 31, 2025** | **Mar 31, 2025** |
| **Deferred tax assets:** | **HK$** | **HK$** | **US$** |
| Depreciation and amortization | 450409 | 462756 | 59481 |
| Tax losses | - | 131148 | 16857 |
| Total deferred tax assets | 450409 | 593904 | 76338 |
| Less: valuation allowance | - | - | - |
| Deferred tax assets, net of valuation allowance | 450409 | 593904 | 76338 |
| **Deferred tax assets, net** | 450409 | 593904 | 76338 |

---

As of September 30, 2024, the Group have income taxes payable for HK$2,296,963 (approximately US$295,627). As of March 31, 2025, the Group have income taxes recoverable for HK$1,892,807 (approximately US$243,295).

The following table reconciles Hong Kong statutory rates to the Group's effective tax:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six-month period ended** | **For the six-month period ended** | **For the six-month period ended** |
|  | **Mar 31, 2024** | **Mar 31, 2025** | **Mar 31, 2025** |
|  | **HK$** | **HK$** | **US$** |
| Profit / (loss) before income taxes | 3596618 | (846727) | (108648) |
| Hong Kong Profits Tax rate | 16.50% | 16.50% | 16.50% |
| Income taxes computed at Hong Kong Profits Tax rate | 593442 | (139710) | (17927) |
| **Reconciling items:** |  |  |  |
| Tax effect of non-deductible expenses |  | 4 | 1 |
| Tax effect of income that is not taxable\* | (16658) | (3789) | (487) |
| Effect of two-tier tax rate | (82500) | - | - |
| **Income tax expense / (benefit)** | 494284 | (143495) | (18413) |

---

**\*** Income that is not taxable mainly consisted of the interest income and the government subsidies which are non-taxable under Hong Kong income tax law.

*<u>Uncertain tax positions</u>*

The Group evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of September 30, 2024, and March 31 2025, the Group did not have any significant unrecognized uncertain tax positions. The Group did not incur any interest and penalties related to potential underpaid income taxes for the six-month periods ended September 30, 2024 and March 31, 2025. The Group also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from March 31, 2025.

**Note 12. Shareholders' Equity**

***Ordinary shares***

On October 25, 2024, the Company issued and allotted 10,000,000 Class A Ordinary Shares and 3,000,000 Class B Ordinary Shares at a consideration of US$0.0001 per share.

On November 28, 2024, the Company issued and allotted 6,666,660 Class A Ordinary Shares at a consideration of US$0.0001 per share.

On December 3, 2024, the Company issued and allotted 1,333,340 Class A Ordinary Shares at a consideration of US$0.0001 per share. Consequently, there were 18,000,000 Class A Ordinary Shares and 3,000,000 Class B Ordinary Shares in aggregate. The share and per share are presented on a retroactive basis.

The subsidiary of Company, Here We Seoul Limited was established under the laws of the Hong Kong on December 9, 2013. The issued and fully paid number of Ordinary Shares was 100 with $1.00 per share.

**Note 13. Dividend**

During the six-month period ended March 31, 2024, the board of directors of the subsidiary resolved to declare a dividend totaling HK$7,327,215 (US$936,158) to its shareholders. During the six-month period ended March 31, 2025, the board of directors resolved not to declare any dividend.

**Note 14. Commitments and Contingencies**

***<u>Lease Commitments</u>***

As of March 31, 2025, the Group has no short-term lease commitments or leases that have not yet commenced but would create significant rights and obligations not already recognized in the right-of-use assets and lease liabilities.

The table below summarizes the Group's non-cancellable operating lease commitments as of March 31, 2025:

---

| | |
|:---|:---|
|  | **Operating Lease Commitment** |
|  | HK$ |
| Within 1 year | 277459 |
| 2- 5years | 4050 |
| **Total** | 281509 |

---

***<u>Contingencies</u>***

The Group is subject to legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Group does not anticipate that the final outcome arising out of any such matters will have a material adverse effect on its financial position, cash flows or results of operations on an individual basis or in the aggregate. As of September 30, 2024, and March 31, 2025, the Group is not a party to any material legal or administrative proceedings.

**Note 15. Subsequent Event**

The Group evaluated all events and transactions that occurred after March 31, 2025 up through the date the Group issued these unaudited combined financial statements on September 5, 2025, for disclosure or recognition in the unaudited combined financial statements of the Group as appropriate.

The Company's Registration Statement on Form F-1 (File No. 333-284998) for the Initial Public Offering, originally filed with the U.S. Securities and Exchange Commission (the "SEC") on February 14, 2025, as amended, was declared effective by the SEC on May 29, 2025.

On May 29, 2025, the Company entered into an underwriting agreement with Cathay Securities, Inc., in connection with its Initial Public Offering. The shares began trading on the Nasdaq Capital Market under the symbol "PTNM" on May 30, 2025. On June 2, 2025, the Company consummated its Initial Public Offering of an aggregate of 1,750,000 Class A ordinary shares at a price of US$4.00 per share to the public for a total of US$7 million of gross proceeds to the Company, before deducting underwriting discounts and estimated offering expenses.

On June 2, 2025, the underwriter partially exercised the over-allotment option, purchasing an additional 172,500 Class A ordinary shares. On June 13, 2025, the underwriter exercised the remaining portion of the over-allotment option, acquiring a further 90,000 Class A ordinary shares at the public offering price of US$4.00 per share, in accordance with the underwriting agreement.

## Exhibit 99.2

**Exhibit 99.2**

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br> AND RESULTS OF OPERATIONS**

*The information in this report contains forward-looking statements. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements included elsewhere in this report. This discussion contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. See "Special Note Regarding Forward-Looking Statements" for a discussion of the uncertainties, risks, and assumptions associated with these statements. Actual results and the timing of events could differ materially from those discussed in our forward-looking statements as a result of many factors, including those set forth elsewhere in this report.*

**Overview**

Pitanium Limited (the "Company") is a holding company incorporated in British Virgin Islands. Its operating subsidiary, Here We Seoul Limited, is a retailer in Hong Kong (the "Operating Subsidiary") focusing on the sale of its proprietary brand products, namely PITANIUM and BIG PI online. It also generates revenue from the offline sale at six retail stores situated in Hong Kong's premier shopping destinations. This positioning not only enhances the brand's visibility but also aligns it with the discerning tastes of its target demographic.

The brand "**PITANIUM**" was launched in 2019 and began by offering high-end skincare and haircare solutions to spas in Hong Kong. These brand products were later offered for sale to retail customers in our online shop, which allows customers to enjoy the use of professional skincare and haircare products in the comfort of their homes, thereby promoting their health and well-being. The brand "**BIG PI**" was launched in 2023 and offers whole sets of products to its retail customers using different product formulas.

Our Operating Subsidiary emphasizes product design and development with an in-house product development team working closely with its original equipment manufacturing ("**OEM**") and original design manufacturing ("**ODM**") suppliers. It takes a proactive approach to expanding its product portfolio to stay ahead of market trends and showcase its ability to cater to the evolving needs of its customers.

**Key Factors Affecting Our Results of Operations**

We believe the following key factors may affect the financial condition and results of operations of our Operating Subsidiary:

●  ***Growth of the online retail sales of beauty and personal care products market in Hong Kong:*** Our Operating Subsidiary's financial performance is closely tied to the overall health
 and consumer demand within Hong Kong's online beauty and personal care market. Fluctuations
 in economic conditions, shifts in consumer spending power, and market sentiment can significantly
 impact our sales. Although broader industry trends provide context, our results may deviate
 based on brand positioning and customer loyalty. Continued investment in digital platforms
 and customer engagement is essential to sustaining growth amid a competitive and evolving
 landscape.

●  ***Coverage of our sales channel:*** Our multi-channel approach, particularly the strategic use
 of physical retail stores in high-traffic areas, remains a key driver of customer acquisition
 and brand visibility. The retail channel complements our online presence by meeting the preferences
 of consumers who favor in-person experiences. Effective management of store operations and
 site selection is crucial to maintaining sales efficiency and profitability. Failure to expand
 or optimize our retail footprint may limit our ability to reach new customers or deepen our
 market penetration.

●  ***Market recognition of our brand "PITANIUM" and "BIG PI":*** Brand strength
 directly influences customer trust, purchase intent, and repeat business. Our marketing efforts
 across social media, digital advertising, and offline channels are designed to reinforce
 the value and credibility of our offerings. We also leverage the personal branding of our
 founders to connect with consumers and distinguish our products in a crowded market. A decline
 in marketing effectiveness or consumer engagement could adversely impact sales momentum and
 competitive positioning.

●  ***Prices of raw materials:*** Our cost of sales is sensitive to changes in raw material costs,
 transportation fees, and currency exchange rates, as many of our products are sourced internationally.
 Inflationary pressure or unfavorable exchange movements can erode profit margins if not properly
 managed. We employ a cost-plus pricing strategy and maintain high gross margins to buffer
 against such risks. Nonetheless, sustained cost increases could limit pricing flexibility
 or reduce competitiveness.

●  ***Product mix:*** The composition of our product offerings affects both revenue and margin performance,
 as different categories carry different cost structures and profit profiles. Our ability
 to curate a product mix aligned with evolving consumer trends is critical to maintaining
 financial performance. We regularly adjust inventory and marketing focus to respond to demand
 shifts, promotional cycles, and seasonal behavior. A failure to optimize product mix may
 lead to reduced efficiency, margin compression, or inventory risk.

**Results of Operations**

***Six Months ended March 31, 2025 and 2024***

The following table sets forth a summary of our consolidated statements of operations and comprehensive income for the six months ended March 31, 2024 and 2025, respectively. This information should be read together with our unaudited consolidated financial statements and related notes included elsewhere in this report. The results of operations in any period are not necessarily indicative of our future trends.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended** | **For the Six Months Ended** | **For the Six Months Ended** | | |
|  | **March 31,**<br> **2024** | **March 31,**<br> **2025** | **March 31,**<br> **2025** | **Change** | **Change** |
|  | **HK$** | **HK$** | **US$** | **Amount (HK$)** | **%** |
| **Revenue** | $35873602 | $36360058 | $4665553 | $486456 | 1.36% |
| **Cost of revenue** | (7280663) | (4664412) | (598515) | (2616251) | (35.93)% |
| **Gross profit** | **28592939** | **31695646** | **4067038** | 3102707 | 10.85% |
| **Operating expenses** |  |  |  |  |  |
| Selling and marketing expenses | (5877734) | (6425977) | (824551) | 548243 | 9.33% |
| General and administrative expenses | (18884728) | (26604455) | (3413760) | 7719727 | 40.88% |
| **Total operating expenses** | $**(24762462)** | $**(33030432)** | $**(4238311)** | $8267970 | 33.39% |
| **Income / (loss) from operation** | **3830477** | **(1334786)** | **(171273)** | (5165263) | (134.85)% |
| **Other income / (expenses):** |  |  |  |  |  |
| Interest income | $90905 | $22993 | $2950 | $(67912) | (74.71)% |
| Other income | 114672 | 700000 | 89821 | 585328 | 510.44% |
| Interest expenses | (439436) | (234934) | (30146) | (204502) | (46.54)% |
| Total other income / (expenses), net | $(233859) | $488059 | $62625 | $721918 | 308.70% |
| **Income / (loss) before provision for income taxes** | **3596618** | $**(846727)** | $**(108648)** | $(4443345) | (123.54)% |
| Income tax (expenses) / credit | (494284) | 143495 | 18413 | 637779 | 129.03% |
| **Net income / (loss)** | $**3102334** | $**(703232)** | $**(90235)** | $(3805566) | (122.67)% |

---

<u>Revenue</u>

For the six months ended March 31, 2024 and 2025, our revenue was primarily generated from four product categories: (i) skincare products, which mainly include facial-care items such as serums, cleansers, face masks, and toners; (ii) haircare products, which include shampoos, conditioners, hair treatments, and hair masks; (iii) cosmetic products, mainly comprising primers, compact powders, eyeliners, mascaras, and lipsticks; and (iv) other products, including body-care items such as deodorants, makeup removers, and cuticle oils, as well as health supplements, laundry detergents, and dishwashing liquids.

Revenue for the six months ended March 31, 2025, was HK$36,360,058 (approximately US$4,665,553), representing an increase of HK$486,456 (approximately US$62,420), or 1.36%, from HK$35,873,602 in the same period of 2024. The growth was primarily driven by increased marketing efforts, including the production of new videos for various marketing channels, which enhanced our brand awareness and contributed to greater market acceptance and recognition of our products.

The summary of our total revenues by product categories for the six-month periods ended March 31, 2024 and 2025 is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Mar 31, 2024** | **Mar 31, 2025** | **Mar 31, 2025** |
|  | **HK$** | **HK$** | **US$** |
| Skincare | 16530957 | 19086428 | 2449081 |
| Haircare | 10831345 | 8543365 | 1096245 |
| Cosmetics | 5413372 | 4966139 | 637232 |
| Others | 3097928 | 3764126 | 482995 |
| **Total** | **35873602** | **36360058** | **4665553** |

---

<u>Cost of Revenue</u>

Cost of revenue for the six months ended March 31, 2025, was HK$4,664,412 (approximately US$598,515), representing a decrease of HK$2,616,251 (approximately US$335,705), or 35.93%, from HK$7,280,663 in the same period of 2024. The decrease was primarily attributable to our ability to source products at more favorable prices from suppliers.

<u>Gross Profit and Gross Margin</u>

Gross profit for the six months ended March 31, 2025 was HK$31,695,646 (approximately US$4,067,038), representing an increase of HK$3,102,707 (approximately US$398,125), or 10.9%, compared to HK$28,592,939 for the same period in 2024. Gross profit margin for the six months ended March 31, 2025 also rose to 87.17% from 79.70% in the same period of 2024, primarily reflecting the Company's improved ability to source products at more favorable prices from suppliers.

<u>Selling and Marketing Expenses</u>

Selling and marketing expenses for the six months ended March 31, 2025 were HK$6,425,977 (approximately US$824,551), representing an increase of HK$548,243 (approximately US$70,348), or 9.33%, from HK$5,877,734 in the same period of 2024. The increase was primarily due to higher spending on new advertising channels and the expansion of campaign reach.

<u>General and Administrative Expenses</u>

General and administrative expenses for the six months ended March 31, 2025 amounted to HK$26,604,455 (approximately US$3,413,760), representing an increase of HK$7,719,727, or 40.88%, from HK$18,884,728 in the same period of 2024. The increase was primarily attributable to higher professional service fees, expansion of personnel, and investments in cost optimization initiatives.

<u>Other Income</u>

Other income for the six months ended March 31, 2025 increased to HK$700,000 (approximately US$89,821), representing an increase of HK$585,328 (approximately US$75,107), or 510.44%, from HK$114,672 in the same period of 2024, mainly due to a gain on the disposal of a motor vehicle.

<u>Income Tax (Credit) Expenses</u>

The Company recorded an income tax credit of HK$143,495 (approximately US$18,413) for the six months ended March 31, 2025, compared to income tax expenses of HK$494,284 for the same period in 2024. The shift was primarily due to a loss before provision for income taxes and the recognition of deferred tax assets as a result of the tax losses for the six months ended March 31, 2025.

<u>Net Income</u>

As a result of the foregoing, our Company recorded a net loss of HK$703,232 (approximately US$90,235) for the six months ended March 31, 2025, compared to a net income of HK$3,102,334 for the same period in 2024.

**Liquidity and Capital Resources**

We financed our operations primarily through cash flows from operations and bank borrowings. The Company maintains cash with various financial institutions, primarily located in Hong Kong. As of September 30, 2024 and March 31, 2025, our cash balances were HK$16,964,489 and HK$11,523,694 (approximately US$1,481,218), respectively. Our outstanding bank borrowings amounted to HK$12,267,161 as of September 30, 2024, and HK$10,596,755 (approximately US$1,362,073) as of March 31, 2025. These bank loans bore interest at rates ranging from 3.625% to 5.000%.

As of September 30, 2024, our current assets and current liabilities were approximately HK$25,731,079 and HK$22,267,763, respectively. As of March 31, 2025, current assets increased to approximately HK$26,734,305 (approximately US$3,390,068), while current liabilities decreased to approximately HK$21,009,387 (approximately US$2,700,479).

**Bank Borrowings**

Components of bank borrowings are as follows as of September 30, 2024 and March 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Interest rate** | **Sep 30, 2024** | **Mar 31, 2025** | **Mar 31, 2025** |
|  |  | **HK$** | **HK$** | **US$** |
| Bank of China (Hong Kong) – Loan 1<sup>(1)</sup> | 3.625% | 9000000 | 8707159 | 1119190 |
| Bank of China (Hong Kong) – Loan 2<sup>(2)</sup> | 5.000% | 3267161 | 1889596 | 242883 |
| &nbsp;&nbsp;&nbsp;**Total** |  | **12267161** | **10596755** | **1362073** |

---

(1) On
 November 29, 2023, our Operating Subsidiary borrowed HK$9,000,000 (approximately US$1,158,328)
 as working capital for 120 months at an annual interest rate of 3.625% under the loan agreement
 with Bank of China (Hong Kong). The loan was secured by personal guarantees from the directors
 of Here We Seoul Limited and under the SME Financing Guarantee Scheme guaranteed by The HKMC
 Insurance Limited. The outstanding balance of the bank loan is classified as current liability
 as the bank has sole discretion to request a full redemption at any time.

(2) On
 November 29, 2022, our Operating Subsidiary borrowed HK$8,000,000 (approximately US$1,029,625)
 as working capital for 36 months at an annual interest rate of 5% under the loan agreement
 with Bank of China (Hong Kong). The loan was secured by personal guarantees from the directors
 of Here We Seoul Limited and under the SME Financing Guarantee Scheme guaranteed by The HKMC
 Insurance Limited. The outstanding balance of the bank loan is classified as current liability
 as the bank has sole discretion to request a full redemption at any time.

Interest expenses pertaining to the above bank borrowings for the six-month periods ended March 31, 2024 and March 31, 2025 amounted to HK$234,290 (approximately US$29,934) and HK$205,217 (approximately US$26,332), respectively.

As of the date of this report, a total of HK$6,403,245 (approximately US$823,052) of the bank borrowings as of March 31, 2025 has been repaid.

**Cash Flows**

The following table summarizes our cash flows for the periods indicated:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six-month periods ended** | **For the six-month periods ended** | **For the six-month periods ended** |
|  | **Mar 31, 2024** | **Mar 31, 2025** | **Mar 31, 2025** |
|  | **HK$** | **HK$** | **US$** |
| Net cash generated from / (used in) operating activities | 5512481 | (3887538) | (498832) |
| Net cash used in investing activities | (311558) | (1128200) | (144765) |
| Net cash generated from / (used in) financing activities | 1228276 | (425057) | (54542) |
| Effect of exchange rate changes on cash held in foreign currencies |  |  | (4026) |
| Net change in cash | 7052315 | (5440795) | (698139) |
| Cash at the beginning of the period | 18974339 | 16964489 | 2183383 |
| **Cash at the end of the period** | **26026654** | **11523694** | **1481218** |

---

For the six months ended March 31, 2025, we recorded a net cash outflow of HK$5,440,795 (approximately US$698,139), compared to a net inflow of approximately HK$7,052,315 for the same period in 2024. The decrease in cash flow was primarily attributable to the absence of bank loan proceeds in the current period. In the prior period, the Group received a bank loan of HK$9 million, which significantly contributed to cash inflows. In the current period, the Group invested approximately HK$1.8 million in the acquisition of fixed assets to support ongoing business operations. Additionally, operating expenses increased due to higher spending on advertising and promotional activities aimed at enhancing brand visibility, along with elevated professional service fees and personnel costs. These increases reflect the Group's continued investment in operational efficiency and infrastructure. As a result, cash and cash equivalents decreased from HK$16,964,489 (US$2,183,383) as of the beginning of the period to HK$11,523,694 (US$1,481,218) as of March 31, 2025.

**Operating Activities**

For the six months ended March 31, 2024, net cash generated from operating activities amounted to HK$5,512,481, primarily driven by net income of approximately HK$3.1 million and a decrease in deposits and prepayments, which contributed positively to cash flow

For the six months ended March 31, 2025, net cash used in operating activities was HK$3,887,538 (approximately US$498,832), primarily due to an increase in inventory of approximately HK$1 million and the recognition of deferred IPO costs of around HK$3.7 million, partially offset by other operating inflows.

**Investing Activities**

For the six months ended March 31, 2024, net cash generated from investing activities was HK$311,558, primarily attributable to proceeds of approximately HK$0.6 million from the disposal of motor vehicles, partially offset by the purchase of fixed assets amounting to around HK$0.3 million.

For the six months ended March 31, 2025, net cash used in investing activities was HK$1,128,200 (approximately US$144,765), primarily due to the purchase of fixed assets totaling approximately HK$1.8 million, partially offset by proceeds of around HK$0.7 million from the disposal of a motor vehicle.

**Financing Activities**

For the six months ended March 31, 2024, net cash generated from financing activities was HK$1,228,276, largely due to proceeds from bank borrowings and lease financing, offset by dividend payments and other repayments.

For the six months ended March 31, 2025, net cash used in financing activities was HK$425,057 (approximately US$54,542), mainly due to repayments of bank borrowings and lease obligations, partially offset by proceeds from new finance leases and a small issuance of new shares.

**Effect of Exchange Rate Changes**

A minor negative impact of approximately US$4,026 resulted from foreign exchange rate fluctuations on cash balances.

As a result, the Company's ending cash balance declined to approximately US$1.48 million as of March 31, 2025, compared to approximately US$2.18 million at the beginning of the period.

**Trend Information**

We are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on our net revenues, net income, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition.

**Off-Balance Sheet Arrangements**

We did not have during the periods presented, and we do not currently have, any off-balance sheet financing arrangements or any relationships with unconsolidated entities or financial partnerships, including entities sometimes referred to as structured finance or special purpose entities, that were established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

**Statement Regarding Unaudited Financial Information**

The unaudited financial information set forth above is subject to adjustments that may be identified when audit work is performed on the Company's year-end financial statements, which could result in significant differences from this unaudited financial information.

**Controls and Procedures**

There has been no change in our internal control over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

● Gross
 profit margin increased by 7.47% from 79.70% to 87.17% for the six months ended March 31,
 2025, compared to the same period in 2024. The improvement was mainly driven by the Company's
 ability to source products at more favorable prices from suppliers.

● Selling
 and marketing expenses increased by 9.33%, primarily due to the engagement of new advertising
 agencies, the launch of new promotional programs, and expanded efforts to reach new customers.

● General
 and administrative expenses increased by 40.88%, primarily driven by higher professional
 service fees and personnel expansion, reflecting ongoing investments in operational efficiency
 and infrastructure.

● Net
 loss for the six-month period ended March 31, 2025 was HK$703,232 (approximately US$90,235),
 compared to a net income of HK$3,102,334 for the same period in 2024. The loss was primarily
 driven by increased general and administrative expenses. These increases reflected higher
 professional service fees and personnel expansion costs, and were partially offset by growth
 in gross profit and other income.