– 1 –

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Top Standard Corporation(Incorporated in the Cayman Islands with limited liability)

(Stock code: 8510)

ANNOUNCEMENT OF INTERIM RESULTSFOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE “STOCK EXCHANGE”)

GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration.

Given the companies listed on GEM are generally small and mid-sized companies, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM.

This announcement, for which the directors (the “Directors”) of Top Standard Corporation (the “Company”, together with its subsidiaries, the “Group”) collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM of the Stock Exchange (the “GEM Listing Rules”) for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that, to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

– 2 –

FINANCIAL HIGHLIGHTS

During the six months ended 30 September 2018:

• theGroup recordedunaudited revenueof approximatelyHK$59.2million (2017:HK$48.5million), representingan increaseofapproximately22.1%ascompared tothecorrespondingperiodended30September2017;and

• theGroup recordedanunaudited lossattributable to theownersof theCompanyofapproximatelyHK$15.2million(2017:HK$10.1million).

During the three months ended 30 September 2018:

• theGroup recordedunaudited revenueof approximatelyHK$29.0million (2017:HK$25.9 mi l l ion) , represent ing an increase of 12.0% as compared to thecorrespondingperiodended30September2017;and

• theGroup recordedanunaudited lossattributable to theownersof theCompanyofapproximatelyHK$9.0million(2017:HK$10.2million).

– 3 –

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018 (UNAUDITED)

TheDirectorsherebyannouncetheunauditedcondensedconsolidatedresultsoftheGroupforthe threemonths and sixmonths ended30September2018, togetherwith theunauditedcomparativefiguresforthecorrespondingperiodsin2017,asfollows:

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the three months and six months ended 30 September 2018

For the three months ended30 September

For the six months ended30 September

2018 2017 2018 2017Notes HK$’000 HK$’000 HK$’000 HK$’000

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Revenue 3 29,018 25,881 59,178 48,489Otherincome 69 – 114 1Rawmaterialsand consumablesused (10,612) (7,015) (21,382) (12,866)Staffcosts (12,093) (8,820) (24,337) (17,102)Depreciation (1,835) (1,262) (3,600) (2,470)Rentalandrelatedexpenses (7,490) (5,812) (14,353) (10,268)Utilitiesexpenses (1,981) (1,116) (4,012) (2,190)Other expenses (3,858) (1,144) (6,492) (2,392)Listing expenses – (10,290) – (10,290)Financecosts 4 (201) (138) (338) (257)

Loss before taxation (8,983) (9,716) (15,222) (9,345)Incometaxcredit(expense) 5 6 (438) – (772)

Loss and total comprehensive expense for the period (8,977) (10,154) (15,222) (10,117)

Loss and total comprehensive expense for the period attributable to owners of the Company (8,977) (10,154) (15,222) (10,117)

Loss per share —basic(HongKongcents) (1.12) (1.69) (1.90) (1.69)

–4–

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAt 30 September 2018

As at30 September

2018

Asat31March

2018Notes HK$’000 HK$’000

(Unaudited) (Audited)

Non-current assets Propertyandequipment 8 22,573 23,092 Deposits 9 7,893 7,590 Depositsforacquisitionofpropertyandequipment 9 33 – Deferredtaxassets 432 432

30,931 31,114

Current assets Inventories 710 648 Tradereceivables,depositsandprepayments 9 18,350 4,688 Taxrecoverable 1,151 559 Bankbalancesandcash 30,580 52,127

50,791 58,022

Current liabilities Tradeandotherpayablesandaccruals 11 13,602 16,294 Bankborrowings 12 32,266 21,740 Obligationunderafinancelease 167 53

46,035 38,087

Net current assets 4,756 19,935

Total assets less current liabilities 35,687 51,049

Non-current liabilities Obligationunderafinancelease – 140 Provisions 960 960 Deferredtaxliabilities 109 109

1,069 1,209

Net assets 34,618 49,840

Capital and reserves Sharecapital 10 8,000 8,000 Reserves 26,618 41,840

Equity attributable to owners of the Company 34,618 49,840

–5–

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFor the six months ended 30 September 2018

Attributable to owners of the Company

Sharecapital

Sharepremium

Otherreserves

Accumulatedprofits(losses) Total

HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

Balanceasat1April2017(Audited) – 8,072 4,686 (1,256) 11,502Lossandtotalcomprehensiveexpenses fortheperiod – – – (10,117) (10,117)

Balanceasat30September2017 (Unaudited) – 8,072 4,686 (11,373) 1,385

(Unaudited)Balanceasat1April2018(Audited) 8,000 60,304 4,686 (23,150) 49,840Lossandtotalcomprehensiveexpenses fortheperiod – – – (15,222) (15,222)

Balanceasat30September2018 (Unaudited) 8,000 60,304 4,686 (38,372) 34,618

–6–

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWFor the six months ended 30 September 2018

For the six months ended30 September

2018 2017HK$’000 HK$’000

(Unaudited) (Unaudited)

OPERATING ACTIVITIESLossbeforetaxation (15,222) (9,345)Adjustmentsfor: Depreciation 3,600 2,470 Financecosts 338 257

Operatingcashflowsbeforemovementsin workingcapital (11,284) (6,618)Increase(decrease)ininventories (62) 25Increaseintradereceivables, depositsandprepayments (13,956) (11,970)Increase(decrease)inamountsduefrom relatedparties/formerrelatedparties (9) (3,827)(Decrease)increaseintradeand otherpayablesandaccruals (2,779) 10,630Increase(decrease)inamountsdueto relatedparties 87 (504)

Cashusedinoperations (28,003) (12,264)HongKongprofitstaxpaid (592) (514)

NET CASH USED IN OPERATING ACTIVITIES (28,595) (12,778)

INVESTING ACTIVITIESAdvancetorelatedparties/formerrelatedparties – (12,571)Repaymentfromrelatedparties/former relatedparties – 23,380Depositspaidforacquisitionof propertyandequipment (33) (5,610)Purchasesofpropertyandequipment (3,081) (88)

NET CASH USED IN INVESTING ACTIVITIES (3,114) 5,111

–7–

For the six months ended30 September

2018 2017HK$’000 HK$’000

(Unaudited) (Unaudited)

FINANCING ACTIVITIESAdvancefromrelatedparties – 1,287Repaymenttorelatedparties – (2,182)Repaymentofobligationunderfinancelease (26) (23)Newborrowingsraised 19,109 15,946Repaymentofbankborrowings (8,583) (7,069)Interestspaid (338) (257)

NET CASH FROM FINANCING ACTIVITIES 10,162 7,702

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (21,547) 35

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 52,127 1,352

CASH AND CASH EQUIVALENTS AT END OF THE YEAR, representedbybankbalancesandcash 30,580 1,387

– 8 –

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 GENERAL INFORMATION

TopStandardCorporation(the“Company”)wasincorporatedandregisteredasanexemptedcompanywithlimited liability in theCayman Islandsunder theCompaniesLaw,Chapter22of the lawsof theCaymanIslandson11February2016.TheCompany’sshareshavebeen listedonGEMofTheStockExchangeofHongKongLimited(the“Stock Exchange”)on13February2018.

TheaddressesoftheCompany’sregisteredofficeandtheprincipalplaceofbusinessare4thFloor,HarbourPlace,103SouthChurchStreet,P.O.Box10240,GrandCaymanKY1-1002,CaymanIslandsand4thFloor,CodaPlaza,51GardenRoad,Central,HongKong,respectively.

The immediateandultimateholdingcompany is JSSGroupCorporation (“JSS Group”). JSSGroup isalimitedliabilitycompanyincorporatedintheBritishVirginIslands(the“BVI”)andwholly-ownedbyMr.ChukStanley(“Mr. Stanley Chuk”),whoisanexecutivedirectoroftheCompany.

TheCompanyisaninvestmentholdingcompanyanditssubsidiariesareprincipallyengagedinoperationofrestaurants.

2 BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES

Theunauditedcondensedconsolidated interimfinancialstatementsof theGroupfor thesixmonthsended30September2018(the“2018 Interim Financial Statements”)havebeenpreparedinaccordancewiththeaccountingprinciplesgenerallyaccepted inHongKongwhich includeHongKongAccountingStandard(“HKAS”) 34 “InterimFinancialReporting” issued by theHongKong Institute ofCertifiedPublicAccountants(“HKICPA”)andtheapplicabledisclosurerequirementsofGEMListingRules.

The2018InterimFinancialStatementsshouldbereadinconjunctionwiththeannualauditedconsolidatedfinancialstatementsfortheyearended31March2018,whichhavebeenpreparedinaccordancewithHongKongFinancialReportingStandards(“HKFRS”).

The2018 InterimFinancialStatementsarepresented in thousandofHongKongdollars (“HK$’000”),whichisalsothefunctionalcurrencyoftheCompany.

Exceptasdescribedbelow,theaccountingpoliciesandmethodsofcomputationusedinthepreparationofthe2018 InterimFinancialStatementsareconsistentwith thoseadopted inpreparing theannualauditedconsolidatedfinancialstatementsfortheyearended31March2018.

Incurrentperiod, theGrouphasapplied the followingnewor revisedHongKongFinancialReportingStandards(“new HKFRSs”)issuedbytheHKICPAwhichareorhavebecomeeffective.

HKAS28(Amendment) InvestmentsinassociatesandjointventuresHKAS40(Amendments) TransferofinvestmentpropertyHKFRS1(Amendment) FirsttimeadoptionofHKFRSHKFRS2(Amendments) ClassificationandMeasurementofShare-BasedPaymentTransactionsHKFRS4(Amendments) ApplyingHKFRS9FinancialinstrumentswithHKFRS4

InsurancecontractsHKFRS9 FinancialInstrumentsHK(IFRIC)-Int22 ForeignCurrencyTransactionsandAdvanceConsideration

Theapplicationof thesenewHKFRSs in thecurrentperiodhashadnomaterial effectiveon theamountsreportedinthesecondensedconsolidatedfinancialstatementsand/ordisclosuressetoutinthosecondensedconsolidatedfinancialstatements.

–9–

3 REVENUE AND SEGMENT INFORMATION

Revenue represents the fair valueof amounts received and receivable from restaurant operations forservicesprovidedandfoodservedandnetofdiscount,andmembershipfeeincomefromexternalcustomersforprivileged services in theGroup’s restaurantsduring theyear.TheGroup’s revenue fromexternalcustomersbasedontheirnatureisdetailedbelow:

For the six months ended30 September2018 2017

HK$’000 HK$’000(Unaudited) (Unaudited)

Cateringserviceincome(includingservicesprovidedandfoodserved) 58,812 48,131Membershipfeeincome 366 358

59,178 48,489

Theconsolidatedfinancialstatementsreported to themanagementof theGroup,being thechiefoperatingdecisionmaker,forthepurposeofassessmentofsegmentperformanceandresourcesallocationfocusingondifferentrestaurantsoftheGroup.NooperatingsegmentsidentifiedbythechiefoperatingdecisionmakerhavebeenaggregatedinarrivingatthereportablesegmentsoftheGroup.

TheGroup’soperatingandreportablesegmentsare(i)SichuaneseandCantonesecuisineunderthebrandof“SanXiLou(三希樓)”(“San Xi Lou”);(ii)vegetariancuisineunderthebrandof“PureVeggieHouse(心齋)”(“Pure Veggie House”);(iii)JapanesecuisinelocatedinCentral,HongKong(“Ronin Central”);and(iv)JapanesecuisinelocatedinWanchai,HongKong(“Ronin Wanchai”).

Segment revenue and results

San Xi Lou

PureVeggieHouse

RoninCentral

RoninWanchai

Segmenttotal Eliminated Consolidated

HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

For the six months ended 30 September 2018Externalrevenue 42,869 6,222 5,379 4,707 59,178 – 59,178Intersegmentsales – – – – – – –

Total 42,869 6,222 5,379 4,707 59,178 – 59,178

Segmentresults (1,026) 293 (1,101) (1,787) (3,621) – (3,621)

Otherincome 114Financecosts (338)Listing expense –Other expenses (11,377)

Lossbeforetaxation (15,222)

– 10 –

SanXiLou

PureVeggieHouse

RoninCentral

RoninWanchai

Segmenttotal Eliminated Consolidated

HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

For the six months ended 30 September 2017Externalrevenue 27,436 7,077 5,991 7,985 49,489 – 48,489Intersegmentsales 1,344 – – – 1,344 (1,344) –

Total 28,780 7,077 5,991 7,985 49,833 (1,344) 48,489

Segmentresults 5,623 1,246 (252) 170 6,787 – 6,787

Otherincome 1Financecosts (257)Listing expense (10,290)Other expenses (6,358)

Lossbeforetaxation (10,117)

Segment assets and liabilities

San XiLou

PureVeggieHouse

RoninCentral

RoninWanchai Consolidated

HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

As at 30 September 2018ASSETSSegmentassets 22,934 954 6,960 5,120 35,968

Unallocatedpropertyand equipment 43Deferredtaxassets 432Unallocatedprepayments 13,548Taxrecoverable 1,151Bankbalancesandcash 30,580

Consolidatedtotalassets 81,722

LIABILITIESSegmentliabilities 9,709 1,073 750 869 12,401

Unallocatedotherpayables andaccruals 2,101Bankborrowings 32,266Obligationunderfinancelease 167Unallocatedprovision 60Deferredtaxliabilities 109

Consolidatedtotalliabilities 47,104

– 11 –

SanXiLou

PureVeggieHouse

RoninCentral

RoninWanchai Consolidated

HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

As at 31 March 2018ASSETSSegmentassets 21,433 932 7,268 3,076 32,709

Unallocatedpropertyand equipment 50Deferredtaxassets 432Unallocatedprepayments 3,259Taxrecoverable 559Bankbalancesandcash 52,127

Consolidatedtotalassets 89,136

LIABILITIESSegmentliabilities 10,585 912 982 813 13,292

Unallocatedotherpayables andaccruals 3,902Bankborrowings 21,740Obligationunderfinancelease 193Unallocatedprovision 60Deferredtaxliabilities 109

Consolidatedtotalliabilities 39,296

Forthepurposesofmonitoringsegmentperformancesandallocatingresourcesbetweensegments:

• allassetsareallocatedtooperatingandreportablesegments,otherthancertainpropertyandequipmentforcorporateuse,deferred taxassets,unallocatedprepayments, tax recoverable,non-tradenatureamountsduefromrelatedparties/formerrelatedpartiesandbankbalancesandcash.

• all liabilities are allocated to operating and reportable segments, other than tax payable, bankborrowings,obligationunder finance lease,certainotherpayablesandaccruals,non-tradeamountsduetorelatedparties,unallocatedprovisionanddeferredtaxliabilities.

– 12 –

Other segment information

San Xi LouPure Veggie

HouseRonin

CentralRonin

WanchaiTotal

segment Unallocated TotalHK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

For the six months ended 30 September 2018Amountsincludedinthemeasureof segmentprofit(loss)orsegmentassets:

Additionsofpropertyandequipment 230 – 89 2,762 3,081 – 3,081Depreciationofpropertyandequipment 1,804 77 1,044 668 3,593 7 3,600

SanXiLouPureVeggie

HouseRonin

CentralRonin

WanchaiTotal

segment Unallocated TotalHK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

For the six months ended 30 September 2017Amountsincludedinthemeasureof segmentprofit(loss)orsegmentassets:

Additionsofpropertyandequipment 27 36 – 25 88 – 88Depreciationofpropertyandequipment 678 146 1,056 583 2,463 7 2,470

Geographical information

Nogeographical segment information ispresentedas theGroup’s revenue isallderived fromHongKongbasedon the locationofgoodsdeliveredandservicesprovided,andallof theGroup’snon-currentassetsarelocatedinHongKongbyphysicallocationofassets.

Information about major customers

Noindividualcustomeraccountedforover10%oftheGroup’stotalrevenueduringeachofthesixmonthsended30September2018and2017.

4 FINANCE COSTS

For the three months ended30 September

For the six months ended30 September

2018 2017 2018 2017HK$’000 HK$’000 HK$’000 HK$’000

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Thefinancecostsrepresent interest on: —Bankborrowings 198 135 333 250 —Obligationunderfinancelease 3 3 5 7

201 138 338 257

– 13 –

5 INCOME TAX EXPENSE

HongKongprofits taxhasbeenprovidedat the rateof16.5%(2017:16.5%)on theestimatedassessableprofitforthesixmonthsended30September2018.

6 DIVIDEND

NodividendhasbeenpaidordeclaredbytheCompanyforthesixmonthsended30September2018(2017:Nil).

7 LOSS PER SHARE

Basic loss per share is calculatedbydividing the loss attributable to owners of theCompanyby theweightedaveragenumberofordinarysharesinissueduringtheperiod.

For the three months ended30 September

For the six months ended30 September

2018 2017 2018 2017(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Lossattributabletoownersof thecompany(HK$’000) (8,977) (10,154) (15,222) (10,117)

Weightedaveragenumberof ordinarysharesinissues (inthousands) 800,000 600,000 800,000 600,000

Basicanddilutedlossespershare (HKcents) (1.12) (1.69) (1.90) (1.69)

Thenumberofordinaryshares for thepurposeofcalculatingbasic losspersharehasbeendeterminedontheassumptionthatthereorganisationandthecapitalisationissueasdescribedinnote10hasbeeneffectiveon1April2017.

Nodilutedlosspershareinformationhasbeenpresentedforthesixmonthsended30September2018and2017astherewerenopotentialordinarysharesoutstandingduringbothperiods.

8 PROPERTY AND EQUIPMENT

During thesixmonthsended30September2018, theGroupacquiredpropertyandequipmentatacostofapproximatelyHK$3.1million(2017:HK$0.9million).

–14–

9 TRADE RECEIVABLES, DEPOSITS AND PREPAYMENTS

At30 September

2018

At31March

2018HK$’000 HK$’000

(Unaudited) (Audited)

Tradereceivables 740 1,310Deposits,prepaymentandotherreceivables 26,128 10,968

Total 26,868 12,278

Analysedforreportingpurposesas: Non-currentassets 7,926 7,590 Currentassets 18,942 4,688

26,868 12,278

The following is an ageing analysis of trade receivables presentedbasedon the invoicedate,whichapproximatedtheservicerendereddate,attheendofthereportingperiods.

At30 September

2018

At31March

2018HK$’000 HK$’000

(Unaudited) (Audited)

1to30days 704 99631to60days – 15461to90days 3 75Over90days 33 85

740 1,310

–15–

10 SHARE CAPITAL

Number ofshares of

the Company Share capital Share premiumHK$’000 HK$’000

Authorised: At1April2016and31March2017 38,000,000 380,000 380 Increaseinauthorisedsharecapital 1,962,000,000 19,620,000 19,620

At31March2018and30September2018 2,000,000,000 20,000,000 20,000

Issued and fully paid: At1April2016 1 – – Issueofshares 9,999 100 –

At31March2017 10,000 100 – Capitalisationissue 599,990,000 5,999,900 6,000 Issueofshares 200,000,000 2,000,000 2,000

At31March2018and30September2018 800,000,000 8,000,000 8,000

11 TRADE AND OTHER PAYABLES AND ACCRUALS

At30 September

2018

At31March

2018HK$’000 HK$’000

(Unaudited) (Audited)

Tradepayables 3,090 3,526Otherpayablesandaccruals 10,512 12,768

Total 13,602 16,294

Thefollowingisanageinganalysisoftradepayablespresentedbasedontheinvoicedateattheendofthereporting periods:

At30 September

2018

At31March

2018HK$’000 HK$’000

(Unaudited) (Audited)

1to30days 3,090 2,56331to60days – 82961to90days – 109Over90days – 25

3,090 3,526

–16–

12 BANK BORROWINGS

At30 September

2018

At31March

2018HK$’000 HK$’000

(Unaudited) (Audited)

Carryingamount(shownundercurrentliabilities) thatcontainsarepaymentondemandclausebasedon scheduledrepaymentterms:

—Withinoneyear 32,266 21,740 —Morethanoneyearbutnotexceedingtwoyears – –

32,266 21,740

Thebankborrowingsareat floating ratewhichcarry interestatHK$BestLendingRateplusorminusaspreadorHongKong InterbankOfferedRate (“HIBOR”)plus2.5%.Theeffective interest rateon theGroup’sbankborrowingsrangedfrom2.00%to5.50%perannumasat31March2018and30September2018.

Asat31March2018,bankborrowingsofHK$21,500,000areunsecuredandguaranteedbyagroupentity.

BankborrowingsofHK$240,000asat31March2018areunsecuredandguaranteedbyagroupentity.Subsequent to the endof the reportingperiod, the corporateguaranteeshavebeen releasedupon fullsettlementofthebankborrowings.

Asat30September2018,bankborrowingsofHK$22,266,000areunsecuredandguaranteedbyagroupentity.BankborrowingsofHK$10,000,000are securedandpledgedbya fixeddepositofHK$8,000,000ownedbyHigherTopLimited,awhollyownedsubsidiaryoftheCompany.

–17–

13 RELATED PARTY TRANSACTIONS

Saveasdisclosedelsewhere in theseunauditedcondensedconsolidated interimfinancial statements, theGrouphadthefollowingtransactionswithrelatedparties:

For the six months ended30 September2018 2017

HK$’000 HK$’000

Cateringincomefrom: —Mr.StanleyChuk 102 251 —Mr.KYChuk 20 151

122 402

Advertisingfeepaid/payabletoDarnassusLimited 63 84Parkingfeepaid/payabletoDarnassusLimited 239 705Rentalexpensespaid/payabletoCharmRegionLimited 1,200 2,200

During thesixmonthsended30September2017,Mr.KYChukandMr.SteveChukprovided jointandseveralguarantees to fullyguarantee thedueobservanceandcomplianceofa tenancyagreement to thelandlord.TheguaranteesbyMr.KYChukandMr.SteveChukhadbeen released inFebruary2018andtherewasnoguaranteeprovidedbyMr.KYChukandMr.SteveChukduring thesixmonthsended30September2018.

Compensation of key management personnel

The remunerationofexecutivedirectorsandothermembersofkeymanagementduring the sixmonthsended30September2018and2017wereasfollows:

For the six moths ended30 September2018 2017

HK$’000 HK$’000

Short-termbenefits 900 –Post-employmentbenefits 36 –

936 –

– 18 –

MANAGEMENT DISCUSSION AND ANALYSIS

BUSINESS REVIEW

TheGroup is aHongKongbased restaurantgroup thatoffersSichuaneseandCantonese,fusionvegetarian and Japanese cuisinesunder the “SanXiLou (三希樓)”, “PureVeggieHouse (心齋)” and“Ronin (浪人)”brands, respectively.TheGroup’s revenue for the sixmonthsended30September2018wasprimarilyderived fromcatering income through itsrestaurants.

For thesixmonthsended30September2018, theGroup recordedan increase in revenueofapproximatelyHK$10.7million, representing an increaseof approximately22.1%, fromapproximatelyHK$48.5millionforthesixmonthsended30September2017toapproximatelyHK$59.2millionforthesixmonthsended30September2018.Suchincreasewasmainlydueto the inclusionof revenuederived from thesecondSichuaneseandCantonese restaurantoftheGroupunderthe“SanXiLou(三希樓)”brandopenedatTimesSquareinCausewayBay(“SXL Time Square”)inNovember2017.

On13February2018 (the“Listing Date”), thesharesof theCompany (the“Share”)weresuccessfully listedonGEMbywayofpublicofferandplacing (the“Share Offer”).Afterdeducting all the relevant commissions and expensesborneby theCompany, therewereapproximatelyHK$42.3millionofnetproceeds (the“Net Proceeds”) from theShareOffer.TheGroupwillutilisesuchnetproceedsinaccordancewiththebusinessstrategiesassetoutin theCompany’sprospectus (the“Prospectus”)dated31January2018,asupdated in theCompany’s announcementdated9October2018.Fordetails, please refer to the sectionheaded“Useofproceeds”inthisannouncement.

FINANCIAL REVIEW

Revenue

TheGroup’s revenue increased toapproximatelyHK$59.2million for thesixmonthsended30September 2018 from approximatelyHK$48.5million for the sixmonths ended 30September2017, representing an increaseof approximately22.1%.Such increase in theGroup’srevenuewasmainlyattributabletotheinclusionofrevenuederivedfromSXLTimesSquare.

Raw materials and consumables used

TherawmaterialsandconsumablesusedincreasedtoapproximatelyHK$21.4millionforthesixmonthsended30September2018fromapproximatelyHK$12.9millionforthesixmonthsended30September2017, representing an increaseof approximately65.9%,whichwasmainlydue to theGroup’s increasedpurchasesof rawmaterialsandconsumables since theopeningofSXLTimesSquare.TheDirectorsbelieved that such increase,whichwasnot inproportionwith theGroup’s revenuegrowth,wasprimarilydue to a shift in customers’orderingpreference.

–19–

Staff costs

TheGroup’sstaffcostsincreasedtoapproximatelyHK$24.3millionforthesixmonthsended30September 2018 from approximatelyHK$17.1million for the sixmonths ended 30September2017, representing an increaseof approximately42.1%.Such increase in theGroup’s staffcostswasmainlyattributable to staffemployedbySXLTimesSquareandahighernumberofadministrativeandmanagementpersonnelemployedbytheGroupaftertheSharesbecamelistedinFebruary2018.

Depreciation

TheGroup’sdepreciation increased to approximatelyHK$3.6million for the sixmonthsended30September2018 fromapproximatelyHK$2.5million for thesixmonthsended30September2017,representinganincreaseofapproximately42.1%.TheGroup’sdepreciationincreasedprimarilydue to theadditionaldepreciationcharge incurredby theGrouparisingfromleaseholdimprovementofSXLTimesSquare.

Rental and related expenses

Rentaland relatedexpenses increased toapproximatelyHK$14.4million for thesixmonthsended30September2018fromapproximatelyHK$10.3millionfor thesixmonthsended30September2017, representing an increaseof approximately39.8%.Such increase in theGroup’s rental and relatedexpenseswasmainlydue to the rental expense incurredon thepremisesforSXLTimesSquareafteritscommencementofbusiness.

Utilities expenses

TheGroup’sutilitiesexpensesincreasedtoapproximatelyHK$4.0millionforthesixmonthsended30September2018 fromapproximatelyHK$2.2million for thesixmonthsended30September2017, representingan increaseof approximately81.8%.TheGroup’sutilitiesexpensesincreasedprimarilyduetotheadditionalwater,gasandelectricitychargesincurredbytheGrouparisingfromSXLTimesSquare.

Other expenses

Other expenses increased to approximatelyHK$6.5million for the sixmonths ended30September2018fromapproximatelyHK$2.4millionfor thesixmonthsended30September2017, representingan increaseofapproximately170.8%.Themain reason for the increaseweretheincreaseinprofessionalandauditors’feesafterthelistingoftheCompanyonGEM(the“Listing”)inFebruary2018andtheincreaseinadvertisingandpromotionexpenses.

– 20 –

Loss and total comprehensive expense

TheGroup recordeda loss and total comprehensiveexpense for the sixmonthsended30September 2017 and 2018 of approximatelyHK$10.1million andHK$15.2million,respectively.The increase in the loss and total comprehensive expenseof theGroupofapproximatelyHK$5.1millionwasmainlyattributabletothefactorsdiscussedabove.

Basic loss per share

TheGroup’sbasiclosspershareincreasedtoapproximately1.90HKcentsforthesixmonthsended30September2018 fromapproximately1.69HKcents for the sixmonthsended30September2017,representinganincreaseofapproximately0.21HKcents.Suchchangewasinlinewiththeincreaseinthelossandtotalcomprehensiveexpenseforthesixmonthsended30September2018.

RESERVES

MovementsinreservesoftheGroupforthesixmonthsended30September2018aresetoutaboveintheunauditedcondensedconsolidatedstatementofchangesinequity.

COMPARISON OF BUSINESS STRATEGIES WITH ACTUAL BUSINESS PROGRESS

ThefollowingsetsoutacomparisonofthebusinessstrategiesasstatedintheProspectuswiththeGroup’sactualbusinessprogressupto30September2018.

Business strategies as statedin the Prospectus

Actual business progressup to 30 September 2018

Openingnewrestaurants TheGrouphas takenover theoperationsofMJHTST(asdefinedbelow)andwaspreparingforitsre-openinginOctober2018.TheGroupwasalsoofferedalocationfor thenewrestaurantunder the“PureVeggieHouse(心齋)”brandinTaipei,TaiwaninJune2018andwaspreparingforitsopening.

Establishingacentralkitchen TheGroupcommissioneda feasibility study reportonestablishing the central kitchen andwas identifyingsuitablepremisesforthecentralkitchen.

Renovatingourpremisesand upgradingourequipment

RefurbishmentworkofRoninWanchaiwascompletedinJuly2018.

Upgradingourinformationsystem TheGroup isobtaining feequotations for theupgradeofinformationsystem.

Strengtheningourmarketingefforts Themarketingwork for strengthening theGroup’sbrandawarenesshascommencedandwillcontinue.

– 21 –

USE OF PROCEEDS

TheCompanyhasbeensuccessfullylistedofGEMontheListingDatebytheShareOfferof200,000,000 sharesat theofferpriceofHK$0.35each.Afterdeductingcommissionsandexpenses borne by theCompany in connectionwith theShareOffer, theCompanyhadreceivedtheNetProceedsintheamountofapproximatelyHK$42.3million.

Asat30September2018,theNetProceedshadbeenutilisedasfollows:

UsesNet Proceeds

allocated

Amountutilised as at

30 September2018

Balance as at30 September

2018HK$ million HK$ million HK$ million

Establishingacentralkitchen 16.0 – 16.0Renovatingourpremisesandupgrading ourequipment 10.7 7.3 3.4EstablishinganewrestaurantinKowloon 8.9 – 8.9Repaymentofutilisedbankingfacility 3.6 3.6 –Strengthenourmarketingefforts 1.0 1.0 –Upgradingourinformationsystem 0.9 – 0.9Generalworkingcapital 1.2 1.2 –

42.3 13.1 29.2

Asat30September2018,theGrouphasutilisedtheNetProceedsofapproximatelyHK$13.1million.

Asmentioned in theannouncementof theCompanydated9October2018, theBoardhadresolvedthat(i)partoftheNetProceedsthatwasoriginallyintendedfortheestablishmentofacentralkitchenintheamountofapproximatelyHK$10.0millionwouldbeappliedtowardspayingtheset-upcostsoftheGroup’snewSichuaneserestaurantinKowloonunderthebrand“Man JiangHong (滿江紅)” (“MJH TST”), and (ii) theNetProceeds in the amount ofapproximatelyHK$8.9million thatwasoriginally intended for theestablishmentofanewrestaurantunderthe“PureVeggieHouse(心齋)”brandinKowloonwouldbeappliedtowardstheGroup’snewrestaurantunderthesamebrandinTaipei,Taiwan(“PVH Taipei”).

– 22 –

Reasons for the change in the use of proceeds

Establishing a central kitchen

AsdisclosedintheProspectus,theGroupintendstoestablishacentralkitcheninHongKong.TheGrouphadcommissioneda feasibility study reportonestablishing thecentralkitchen,whichincludedmatterssuchastheproductionprocess,employeesafetyandtraining,projectmanagementaspectsof thecentralkitchen,and financialbenefitsandpotential risks to theGroup for investing into thecentralkitchen. Inviewof thedifficultiesencounteredby theGroup in identifying suitablepremises for thecentralkitchenand thepossibilityofbeingunable to identifysuitablepremises in thenear future,and taking intoconsiderationof therecent financialperformanceof theGroup, theBoardconsiders that thereallocationofsomeof the cashcurrently available from theNetProceeds towardsotherdevelopmentsof theGroupwouldallowtheGrouptobetterutilisetheidlecashandwouldbeinthebestinterestoftheCompanyanditsshareholders.

TheGroupwillcontinue to identifysuitablepremises for thecentralkitchenand theBoardintendsthatthecentralkitchentobeestablishedinthefuturewillbefundedbyacombinationof the remainder of theNetProceeds (in the amount of approximatelyHK$6.0million)originally intended for thecentralkitchen togetherwith internal resourcesof theGroupandexternalfinancing,wherenecessary.

New restaurant — Man Jiang Hong in Tsim Sha Tsui, Kowloon

Asdisclosed in theannual reportof theCompany for theyearended31March2018 (the“2018 Annual Report”)and the firstquarterly reportof theCompany for the threemonthsended30June2018 (the“2018 Q1 Report”), theGrouphas takenover theoperationsofaSichuanese restaurantunder thebrand“ManJiangHong(滿江紅)” locatedatG/Fand1/F,No.27GranvilleRoad,TsimShaTsui,Kowloon,HongKong.MJHTSTwas re-opened inOctober2018.

TheBoardbelievesthatbytakingovertheoperationsofMJHTST,theGroupwillbeableto:

• expandthegeographicalcoverageofitsrestaurantnetworkinHongKongtotheKowloonPeninsula;

• targetacustomergroup that isdistinct fromtheGroup’sSanXiLourestaurant,namelyvalue-consciousSichuanese-cuisinecustomers. Inaddition, theBoardbelieves thatMJHTST is located in oneof the busy shoppingdistricts inTsimShaTsui, has been inoperationforanumberofyearsandalreadyhasanestablishedbrandnameandcustomer-baseatitscurrentlocation,andtheGroupwillbeabletoretainatleastpartofitsexistingcustomer-basewhileattractingnewcustomers to thisnewly renovated restaurant.TheBoardexpects tobeable tocross-market theGroup’sother restaurantsbyconductingactivepromotionsandbyleveragingontheTopStandardmembershipscheme;and

• achieveasynergyeffectwithitsexistingSichuaneserestaurantsoperatedunderthebrand“SanXiLou(三希樓)”byachievingeconomyofscaleintheGroup’sprocurements,andtheGroup’smanagementwillbeable tobring its extensiveexperience inSichuanesecuisineintoMJHTSTtoenhanceitsmenuofferings.

– 23 –

Ontheotherhand,theBoardconsidersthatthenewrevenuestreamsthatwillbederivedfromMJHTSTwouldgivetheGroupabettercashflowpositionandadriverforrevenuegrowth,which theBoardbelieveswouldenhance thevalueof theCompany to its shareholdersandalsotothepotentialinvestors.

Inviewof thechanging lifestyle trends, the imageandbrandsof theGroupand toofferadiningenvironmentthatismoreappealingtotheGroup’scustomers,theBoardconsidersthattheapplicationofNetProceeds in theamountofapproximatelyHK$10.0million thatwasoriginallyintendedforestablishmentofacentralkitchentowardsthecarryingoutofamajorrenovation inMJHTSTwithanaim toupgrade itspre-existing imageand investment in itsmarketingwouldbringa long-termbenefit to theGroupand to the“ManJiangHong(滿江紅)”brand.

New restaurant — Pure Veggie House in Taipei, Taiwan

Asdisclosedinthe2018AnnualReportandthe2018Q1Report,theGrouphasbeenactivelyexploringopportunities inexpanding its restaurantnetwork.Whilenosuitablevenuehasyetbeen identified inHongKongby theGroup forournewPureVeggieHouse restaurant, theGroupwasofferedbythelandlordofBreezeNanshanMall(微風南山),anewshoppingmalllocatedatNo.3,SonglianRoad (松廉路),XinyiDistrict (信義區),Taipei,Taiwan, in June2018 toopenanewrestaurantunder the“PureVeggieHouse (心齋)”brand.PVHTaipei isexpectedtoopeninlate2018orearly2019.

TheBoardbelieves that theopeningofPVHTaipeiwillbring the followingbenefits to theGroup:

• theopeningofPVHTaipeipresentsabusinessopportunity for theGroup toexpand itsrestaurantnetworkoverseas.TheBoardbelieves that this isa recognitionofour“PureVeggieHouse(心齋)”brand,andalsopresentsanopportunityfortheGrouptodiversifyour revenue s t ream, to bui ld up our brand and to expand our customer baseinternationally;and

• BreezeNanshanMall is locatedadjacent to the“Taipei101/WorldTradeCenter”metrostation inTaipei,has itsowncarpark for itscustomersand is locatedwithinanupscaleofficeandshoppingdistrict inTaipei. Inaddition,BreezeNanshanMall isalsoadjacenttoanumberofother large-scalemajordepartment stores.TheBoardbelieves that thislocation isanareawithahighpotentialcustomer flowand iseasilyaccessible tobothpedestriansandvehicles.

TheBoardintendstoapplyNetProceedsintheamountofapproximatelyHK$8.9millionthatwasoriginallyintendedforestablishmentofanewPureVeggieHouserestaurantinKowloontowardstheestablishmentofPVHTaipei.

Save as above, theBoard confirms that theusesof theNetProceeds for theCompany’sstrategicplanasdisclosedintheProspectusremainunchanged.

–24–

LIQUIDITY AND FINANCIAL RESOURCES

Asat30September2018, theGrouphad totalassetsofapproximatelyHK$81.7million (31March2018: approximatelyHK$89.1million),which is financedby total liabilities andshareholders’ equity (comprising share capital and reserves) of approximatelyHK$47.1million(31March2018:approximatelyHK$39.3million)andapproximatelyHK$34.6million(31March2018:approximatelyHK$49.8million), respectively.Thecurrent ratioasat30September2018oftheGroupwasapproximately1.1times(31March2018:approximately1.5times).

Asat30September2018, theGrouphadbankbalancesandcashofapproximatelyHK$30.6million (31March2018:approximatelyHK$52.1million).The total interest-bearing loanoftheGroupasat30September2018wasapproximatelyHK$32.3million (31March2018:approximatelyHK$21.7million).Thegearingratio(calculatedbasedoninterestbearingloanandtheobligationunderfinanceleasedividedbytotalequity)oftheGroupasat30September2018wasapproximately0.9times(31March2018:approximately0.4times).

FOREIGN EXCHANGE EXPOSURE

TheGroupoperates inHongKongwithmajorityof the transactionsbeingsettled inHKD.Foreignexchange risk arises from future commercial transactions, recognisedassets andliabilities,whicharedenominated ina currency that isnot the functional currencyof theGroup.

The transactionsandmonetaryassetsdenominated inRMBareminimal for thesixmonthsended30September2017and2018, theGroupconsiders therewerenosignificant foreignexchangerisksinrespectofRMBforbothperiods.

CAPITAL STRUCTURE

TheSharesweresuccessfullylistedonGEMontheListingDate.ThesehasbeennochangesinthecapitalstructureoftheGroupsincethen.ThesharecapitaloftheGroupcomprisesonlyordinaryshares.

Asat30September2018, theCompanyissuedsharecapitalwasHK$8,000,000divided into800,000,000SharesofHK$0.01each.

BANK BORROWINGS

As at 30 September 2018, the total bank borrowings of theGroup, all ofwhichweredenominated inHKD, amounted to approximatelyHK$32.3million (31March 2018:approximatelyHK$21.7million) andborne floating interest rates from2.0% to5.5%perannumasat30September2018.No financial instrumentwasbeingused for interest ratehedgingpurpose.

Saveasdisclosedinthisannouncement,theGroupdidnothaveotherbankborrowingsforthesixmonthsended30September2018(31March2018:nil).

–25–

PLEDGE OF ASSETS

Asat30September2018, theGroup’sobligationundera finance leasewassecuredby thelessor’s title to the leased asset,whichhad a carrying amountof approximatelyHK$0.2million.TheGroup has also pledge a fixed deposit ofHK$8.0million to secure bankborrowingsofHK$10,000,000(31March2018:approximatelyHK$0.2million).

COMMITMENTS

TheGroupwascommitted tomake futureminimumleasepaymentsundernon-cancellableoperating leases.TheGroup’s operating lease commitments amounted to approximatelyHK$42.2millionasat30September2018(31March2018:approximatelyHK$42.3million).

EMPLOYEES AND REMUNERATION POLICY

Asat30September2018,thetotalnumberoffull timeandcasualorparttimeemployeesoftheGroupwas196(31March2018:229).Totalstaffcosts(includingDirectors’emoluments)were approximatelyHK$24.3million for the sixmonths ended30September 2018 (sixmonthsended30September2017:approximatelyHK$17.1million).

Employees’ remuneration is commensuratewith their job nature, qualifications andexperience. Salaries andwages are normally reviewed annually based on performanceappraisalsandotherrelevantfactors.TheGroupcontinuestooffercompetitiveremunerationpackagesandbonustoeligiblestaff,basedontheperformanceoftheGroupandtheindividualemployee.

MATERIAL ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE COMPANIES

Savefor thereorganisationof theGroupinpreparationfor theListingandtheestablishmentof thecertainsubsidiarieswholly-ownedfor theoperationofPVHTaipeiandMJHTST, theGroupdidnothaveanymaterialacquisitionnordisposalof subsidiaries,associatesor jointventuresduringthesixmonthsended30September2017and2018.

CONTINGENT LIABILITIES

As at 31March 2018 and30September 2018, theGrouphad no significant contingentliabilities.

CAPITAL COMMITMENTS

Asat31March2018and30September2018,theGroupdidnothaveanysignificantcapitalcommitments.

–26–

DIVIDEND

TheBoarddoesnotrecommendthepaymentofinterimdividendforthesixmonthsended30September2018.

SIGNIFICANT INVESTMENTS HELD BY THE GROUP AND PLANS FOR MATERIAL INVESTMENTS AND CAPITAL ASSETS

Saveasdisclosedinthisannouncement,theGroupdidnotholdanysignificantinvestmentsasat31March2018and30September2018.SaveasdisclosedinthisannouncementandintheProspectus,theGroupdoesnothaveotherplansformaterialinvestmentsandcapitalassetsasatthedateofthisannouncement.

PRINCIPAL RISKS AND UNCERTAINTIES

The followings are theprincipal risks anduncertainties facedby theGroup,whichmaymateriallyandadverselyaffectitsbusiness,financialconditionorresultsofoperations:

1. During the sixmonths ended 30 September 2018, all of theGroup’s revenuewasgeneratedinHongKong.IfHongKongexperiencesanyadverseeconomicconditionduetoeventsbeyondourcontrol, suchasnaturaldisasters, contagiousdiseaseoutbreaks,terroristattacks,alocaleconomicdownturn,masscivildisobediencemovementsorifthelocal authoritiesplace additional restrictionsor burdensonusor onour industry ingeneral,ouroverallbusinessand resultsofoperationsmaybemateriallyandadverselyaffected.

2. Rental expenses, cost of rawmaterials and consumables, staff cost anddepreciationcontributedmajorityof theGroup’soperatingcost.The following factorsareuncertainandmayaffectthecostcontrolmeasuresoftheGroup:

(i) TheGroup’s business depends on reliable sources of large quantities of foodingredientssuchasseafood,vegetablesandmeat.Thepriceoffoodingredientsmaycontinuetoriseorfluctuate.

(ii) Minimumwage requirements inHongKongwas raised fromHK$32.5perhour toHK$34.5perhourwitheffectfrom1May2017,andmayfurtherincreaseandaffectourstaffcostsinthefuture.

(iii)As at 30September2018, theGroup leased all theproperties for its restaurantsoperating inHongKong.Therefore, theGroup is exposed to risks relating to thecommercial realestate rentalmarket, includingunpredictableandpotentiallyhighoccupancycosts.

3. Ifourexpansionplanprovestobeunsuccessful,ourbusinessandgrowthprospectsmaybeadverselyimpacted.

–27–

PROSPECT

TheSharesweresuccessfullylistedonGEMon13February2018.TheBoardconsiders thattheCompany’spubliclistingstatusontheStockExchangeallowstheCompanytoaccessthecapitalmarket for corporate finance activities,which assists theCompany in its futurebusiness development, enhances theGroup’s corporate profile and recognition, andstrengthenstheGroup’scompetitivenessandincreaserevenue.

Further,wehavecompletedtherefurbishmentworkofthepremisesofourJapaneserestaurantunderthe“Ronin(浪人)”brandlocatedinWanchaiinJuly2018.

TheGrouphasrecentlyincreaseditsmarketingeffortsandhasutilisedpartofitsproceedsofListing for thispurpose.TheDirectorsbelieve that theGroup’smarketingeffortswillallowtheGroup tobettercompete in the increasinglycompetitivecateringservices industry,andalso to increase theawarenessby thepublicof theGroup’sbrandsand thenewofferingsoftheGroup’srestaurants.Webelievethat inthelongrun,ourbrandswillenhanceourmarketpositionandenhanceourGroup’s reputation. It is therefore important forus topromoteourbrandsthroughstrengtheningourmarketingeffortsandopeningnewrestaurants.

AsmentionedintheCompany’sannualreportfortheyearended31March2018,theGroupisactivelyexploringopportunities inexpanding its restaurantnetwork.TheGrouphas takenovertheoperationsofMJHTSTandre-openedthisrestaurantinOctober2018,whichtargetsmiddle-endandvalue-consciouscustomers.TheGroupbelieves thatwouldbringpositiveimpactstotheGroup.

TheGroup iscontinuing itspreparations toopenanewrestaurantunder the“PureVeggieHouse (心齋)”brand inTaipei,Taiwan, and theGroup is in theprocessof finalising thelocationof thenewrestaurant.Subject to theentering intoofa leaseagreement for thenewpremises, theDirectorsexpect thenewrestaurantwillcommenceoperations inorbefore thefirstquarterof2019.

TheGroup is also looking for a suitable location inHongKong for theopeningof anewrestaurantunderthe“PureVeggieHouse(心齋)”brandandalsoplanningtore-locatesomeofitsexisting restaurants inCodaPlaza inCentral toother location(s) inHongKong.FurtherannouncementswillbemadebytheCompanyinduecourse.

– 28 –

CORPORATE GOVERNANCE AND OTHER INFORMATION

DIRECTORS’ AND CHIEF EXECUTIVE’S INTERESTS AND SHORT POSITIONS IN SHARES, UNDERLYING SHARES AND DEBENTURES

Asat30September2018, the interests and shortpositionsof theDirectors and thechiefexecutiveoftheCompanyintheshares,underlyingsharesanddebenturesoftheCompanyoranyof its associated corporations (within themeaningofPartXVof theSecurities andFuturesOrdinance (the“SFO”))whichhavebeennotified to theCompanyand theStockExchangepursuanttoDivisions7and8ofPartXVoftheSFO(includinginterestsandshortpositionswhichtheyweretakenordeemedtohavetakenundersuchprovisionsoftheSFO),orwhichwererecordedintheregisterrequiredtobekeptpursuanttosection352oftheSFO,orasotherwisenotified to theCompanyand theStockExchangepursuant toRules5.46 to5.67oftheGEMListingRuleswereasfollows:

(i) Interests and short positions in the Shares, underlying shares and debentures of the Company

NameCapacity/Nature of Interest

Number ofShares

Long/ShortPosition

ApproximatePercentage ofShareholding

in the Company(%)

Mr.ChukStanley (“Mr. Stanley Chuk”)

Interestincontrolled corporation(Note 1) 486,720,000 Long 60.84%

Mr.ChukKinYuen (“Mr. KY Chuk”)

Interestincontrolledcorporation(Note 2) 56,640,000 Long 7.08%

Notes:

(1) 486,720,000ShareswereheldbyJSSGroupCorporation(“JSS Group”),whichiswhollyownedbyMr.StanleyChuk.Assuch,Mr.StanleyChukwasdeemed tobe interested inall thesharesheldbyJSSGrouppursuanttoPartXVoftheSFO.

(2) 56,640,000ShareswereheldbyJ&WGroupLimited(“J & W Group”),whichiswhollyownedbyMr.KYChuk.Assuch,Mr.KYChukwasdeemed tobe interested inall thesharesheldbyJ&WGrouppursuanttoPartXVoftheSFO.

–29–

(ii) Interests and short positions in the shares, underlying shares and debentures of associated corporations

Name

Name ofAssociatedCorporation

Capacity/Nature of Interest

Number ofShares

Long/ShortPosition

ApproximatePercentage ofShareholdingin AssociatedCorporation

(%)

Mr.StanleyChuk JSSGroup Beneficialowner 1,000 Long 100%

Mr.KYChuk J&WGroup Beneficialowner 1 Long 100%

Saveasdisclosedabove,asat30September2018,noneoftheDirectorsorthechiefexecutiveof theCompanyhadorwasdeemed tohave any interest or short position in the shares,underlyingsharesordebenturesof theCompanyor itsassociatedcorporations (within themeaningofPartXVof theSFO) thatwas required tobenotified to theCompanyand theStockExchangepursuanttoDivisions7and8ofPartXVoftheSFO(includinginterestsandshortpositionswhich theywere takenordeemed tohave takenundersuchprovisionsof theSFO),orrequired toberecordedin theregisterrequired tobekeptunderSection352of theSFO,orasotherwisenotifiedtotheCompanyandtheStockExchangepursuanttoRules5.46to5.67oftheGEMListingRules.

DIRECTORS’ RIGHTS TO ACQUIRE SHARES OR DEBENTURES

Saveasotherwisedisclosedinthisannouncement,atnotimeduringthesixmonthsended30September2018was theCompanyoranyof its subsidiariesaparty toanyarrangement thatwould enable theDirectors to acquire benefits bymeans of acquisitionof shares in, ordebenturesof,theCompanyoranyotherbodycorporate,andnoneoftheDirectorsoranyoftheirspousesorchildrenundertheageof18weregrantedanyrighttosubscribefortheequityordebtsecuritiesoftheCompanyoranyotherbodycorporateorhadexercisedanysuchright.

– 30 –

SUBSTANTIAL AND OTHER SHAREHOLDERS’ INTERESTS AND SHORT POSITIONS IN SHARES AND UNDERLYING SHARES

Asat30September2018, to thebestknowledgeof theDirectors, thefollowingpersons(notbeingaDirectororchiefexecutiveof theCompany)had interestsor shortpositions in thesharesorunderlyingsharesoftheCompanywhichwouldfalltobedisclosedtotheCompanyandtheStockExchangeundertheprovisionsofDivisions2and3ofPartXVoftheSFO,orwhichwere recorded in the register required tobekeptby theCompanypursuant to section336oftheSFO:

NameCapacity/Nature of Interest

Number ofShares

Long/Short Position

ApproximatePercentage ofShareholding

in the Company(%)

JSSGroup Beneficialowner 486,720,000 Long 60.84%

J&WGroup Beneficialowner 56,640,000 Long 7.08%

Mrs.ChukChengSau Mun,Winnie

Interestofspouse (Note 1)

56,640,000 Long 7.08%

OxloCorporation (“Oxlo”)

Beneficialowner (Note 2)

56,640,000 Long 7.08%

Mr.ChukChonFai,Steve (“Mr. Steve Chuk”)

Interestincontrolled corporation(Note 2)

56,640,000 Long 7.08%

Notes:

(1) Mrs.ChukChengSauMun,Winnie,beingthespouseofMr.KYChuk,wasdeemedtobeinterestedinthesamenumberofSharesheldbyMr.KYChuk.

(2) 56,640,000ShareswereheldbyOxlo,whichiswhollyownedbyMr.SteveChuk.Assuch,Mr.SteveChukwasdeemedtobeinterestedinalltheSharesheldbyOxlopursuanttoPartXVoftheSFO.

Save as disclosed above, as at 30September2018, theDirectorswerenot awareof anypersons (whowerenotDirectorsorchiefexecutiveof theCompany)whohadan interestorshortposition in the sharesorunderlying sharesof theCompanywhichwould fall tobedisclosed to theCompanyor theStockExchangeunderDivisions2and3ofPartXVof theSFO,orwhichwouldbe required,pursuant toSection336of theSFO, tobeentered in theregisterreferredtotherein.

– 31 –

PURCHASE, SALE OR REDEMPTION OF THE LISTED SECURITIES OF THE COMPANY

NeithertheCompanynoranyofitssubsidiariespurchased,soldorredeemedanyofthelistedsecuritiesof theCompanyduring thesixmonthsended30September2018,andneither theCompanynoranyofitssubsidiarieshadissuedorgrantedanyconvertiblesecurities,options,warrants or similar rights or exercised any conversionor subscription rights under anyconvertible securities,options,warrantsor similar rightsduring the sixmonthsended30September2018.

COMPETING INTERESTS

Asat30September2018,noneoftheDirectorsorthecontrollingshareholders(asdefinedintheGEMListingRules)oftheCompanyortheirrespectivecloseassociates(asdefinedintheGEMListingRules)wasconsidered tohaveany interests inabusinesswhichcompetedorwas likely tocompete, eitherdirectlyor indirectly,with thebusinessof theGroupand/orcaused,orwaslikelytocause,anyotherconflictsofinterestwiththeGroup,asrequiredtobedisclosedunderRule11.04oftheGEMListingRules.

COMPLIANCE ADVISER’S INTEREST

Asat thedateof thisannouncement,CLCInternationalLimited (“CLC”), thecomplianceadviserof theCompany,hasconfirmed that except for thecomplianceadviser agreemententered intobetween theCompanyandCLCdated30 January2018,neitherCLCnor itsdirectors, employeesorcloseassociateshadany interest in relation to theGroupwhich isrequiredtobenotifiedtotheCompanypursuanttoRule6A.32oftheGEMListingRules.

CORPORATE GOVERNANCE

TheCompanyhas not engaged in any activities fallingunder the continuingdisclosurerequirementspursuanttotheRules17.22and17.24oftheGEMListingRules.

DIRECTORS’ SECURITIES TRANSACTIONS

TheCompanyhasadoptedacodeofconductregardingsecuritiestransactionsbytheDirectorsontermsnolessexactingthantherequiredstandardofdealingssetoutinRules5.48to5.67of theGEMListingRules.TheCompanyhadalsomadespecificenquiryofall theDirectorsandtheCompanywasnotawareofanynon-compliancewiththerequiredstandardofdealingsregardingsecurities transactionsby theDirectorsduring thesixmonthsended30September2018.

– 32 –

COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE

TheCompany’scorporategovernancepracticesarebasedonprinciplesandcodeprovisionsintheCorporateGovernanceCodeandCorporateGovernanceReportassetoutinAppendix15totheGEMListingRules(the“Corporate Governance Code”).Saveasdisclosedbelow,theGrouphascompliedwiththecodeprovisionsoftheCorporateGovernanceCode:

CodeprovisionA.2.1of theCorporateGovernanceCodeprovides that the roleofchairmanandchiefexecutiveshouldbeseparateandshouldnotbeperformedby thesame individual.Mr.StanleyChukisthechairmanandthechiefexecutiveofficeroftheCompany.InviewofMr.StanleyChukbeinga founderof theGroupandhasbeenoperatingandmanaging themainoperatingsubsidiariesoftheCompany,theBoardbelievesthatitisinthebestinterestoftheGrouptohaveMr.StanleyChuktakingupbothrolesforeffectiveoperationalmanagementandstrategicbusinessdevelopment.Further,theBoardbelievesthatbothpositionsrequirein-depthknowledgeandconsiderableexperienceoftheGroup’sbusinessandMr.StanleyChukis themost suitable person to occupy both positions for theGroup and facilitating theimplementationandexecutionoftheGroup’sbusinessstrategyasdisclosedintheProspectus.Therefore, theDirectors consider that the deviation from code provisionA.2.1 of theCorporateGovernanceCodeisappropriate,andMr.StanleyChukbeingthechairmanandthechiefexecutiveofficercanpreserveandenhancethephilosophiesof theGroup,preserve theleadershipdirectionoftheGroup,andallowanefficientdischargeoftheexecutivefunctionsof thechief executiveas thedecisionmaker.TheDirectorsalsobelieve that abalanceofpowerandauthority isadequatelyensuredby theoperationsof theBoardwhichcomprisesindividualswith diverse professional backgrounds and experiences including threeindependentnon-executiveDirectors.TheBoardshallneverthelessreviewthestructurefromtimetotimeinlightofprevailingcircumstances.

AUDIT AND RISK MANAGEMENT COMMITTEE

The audit and riskmanagement committee of the Company (the “Audit and Risk Management Committee”) has been establishedwithwritten terms of reference incompliancewithRules5.28and5.29of theGEMListingRulesandcodeprovisionC.3.3oftheCorporateGovernanceCode.TheAudit andRiskManagementCommittee currentlyconsistsof three independentnon-executiveDirectors,namelyMs.ChianYatPing,as thechairmanof theAuditandRiskManagementCommittee,Mr.YewTakYun,PaulandMr.ChanKwokKi,Stephen.Theprimarydutiesof theAuditandRiskManagementCommitteeinclude, among others,monitoring compliancewith the laws and regulations that areapplicabletotheoperationsoftheGroup,reviewingthereportsandfindingssubmittedbytheinternalcontrolconsultant toensure theeffectivenessof theGroup’s regulatorycomplianceproceduresandsystem,reviewingandmonitoringtheGroup’sfinancialreportingprocess,theriskmanagement procedures aswell as internal control system, reviewing theGroup’sfinancial information, considering issues relating to the external auditors and theirappointment,andperformingotherdutiesandresponsibilitiesasassignedbytheBoard.

– 33 –

Pursuant to codeprovisionC.3.3of theCorporateGovernanceCode, theAudit andRiskManagementCommittee togetherwith themanagementof theCompanyhave reviewed thefinancial reportingmatters including the reviewof theunaudited interimresults for thesixmonthsended30September2018of theGroupandconfirmed that thepreparationof suchcompliedwithapplicableaccountingprinciplesandpracticesadoptedbytheCompanyandtherequirementsoftheStockExchange,andadequatedisclosurehadbeenmade.

EVENTS AFTER THE REPORTING PERIOD

Saveasdescribedin thisannouncement, theDirectorsarenotawareofanysignificanteventrequiringdisclosurethathastakenplacesubsequentto30September2018anduptothedateofthisannouncement.

PUBLICATION OF INTERIM REPORT

The interim report of theCompany containing all the information requiredby theGEMListingRuleswillbedespatchedtotheshareholdersoftheCompanyandwillalsobeavailableforviewingonthewebsiteofStockExchangeatwww.hkexnews.hkandonthewebsiteoftheCompanyatwww.topstandard.com.hk.

ByorderoftheBoardofTop Standard Corporation

Chuk StanleyChairman

HongKong,9November2018

As at the date of this announcement, the executive Directors are Mr. Chuk Stanley, Mr. Lam Ka Wong, Johnson and Mr. Chuk Kin Yuen; and the independent non-executive Directors are Ms. Chian Yat Ping, Mr. Yew Tak Yun, Paul and Mr. Chan Kwok Ki, Stephen.

This announcement will remain on the “Latest Company Announcements” page of the GEM website at www.hkgem.com for at least seven days from the date of its posting. This announcement will also be published on the website of the Company at www.topstandard.com.hk.