Financial Performance - The group's profit before tax was approximately HKD 75,096,000 for 2024, a decrease of 55.05% compared to HKD 166,564,000 in 2023[6]. - Basic earnings per share for 2024 were calculated based on the profit attributable to shareholders, resulting in a significant decline from the previous year[6]. - For the year ending March 31, 2024, the group's revenue was HKD 628,996,000, a decrease of 7.1% compared to HKD 677,165,000 in 2023[33]. - The net profit for the year was HKD 76,538,000, down 55.2% from HKD 170,923,000 in 2023[33]. - The total comprehensive income for the year was HKD 64,585,000, a decrease of 50.2% from HKD 129,572,000 in 2023[34]. - The company's equity increased from HKD 1,729,855 thousand in 2023 to HKD 1,794,440 thousand in 2024, an increase of about 3.7%[49]. - The group reported a financial cost of HKD 1,403,000 for the year, compared to HKD 258,000 in 2023, indicating a significant increase[33]. - The group recognized a net loss of HKD 11,953,000 from foreign exchange differences related to overseas operations[34]. Dividends - The total dividend for the year is proposed at HKD 0.06 per share, an increase from HKD 0.05 per share in 2023, with a special dividend of HKD 0.03[11]. - The proposed final dividend is HKD 0.03 per share, totaling HKD 71,938,000, compared to no dividend in 2023[116]. - The proposed final dividend is HKD 0.03 per share, and a special dividend of HKD 0.03 per share is also recommended, pending approval at the upcoming annual general meeting[89]. Assets and Liabilities - The group's cash and cash equivalents amounted to approximately HKD 560,937,000 as of March 31, 2024, compared to HKD 665,196,000 in 2023, reflecting a decrease of 15.7%[33]. - Total assets decreased from HKD 2,553,077 thousand in 2023 to HKD 2,516,771 thousand in 2024, representing a decline of approximately 1.4%[48]. - Non-current assets decreased from HKD 776,549 thousand in 2023 to HKD 739,925 thousand in 2024, a reduction of about 4.7%[48]. - Current assets increased from HKD 1,115,628 thousand in 2023 to HKD 1,216,846 thousand in 2024, reflecting an increase of approximately 9.0%[48]. - Total liabilities decreased from HKD 1,806,014 thousand in 2023 to HKD 1,877,756 thousand in 2024, indicating an increase of approximately 3.9%[49]. - The company reported a decrease in total liabilities from HKD 162,331 thousand in 2023 to HKD 162,322 thousand in 2024, a marginal decline[67]. Receivables and Inventory - The group's receivables decreased to HKD 62,645,000 in 2024 from HKD 74,483,000 in 2023, indicating a reduction of 16%[7]. - The aging analysis of accounts receivable shows that overdue amounts over 90 days decreased significantly from HKD 24,989,000 in 2023 to HKD 15,789,000 in 2024[8]. - The company’s inventory decreased from HKD 74,483 thousand in 2023 to HKD 62,645 thousand in 2024, a decline of approximately 16.0%[48]. - The company’s receivables increased significantly from HKD 292,832 thousand in 2023 to HKD 523,219 thousand in 2024, an increase of approximately 78.5%[48]. Business Segments - The media business remains the most profitable segment, demonstrating resilience against digital media challenges[16]. - The group's media business faced significant challenges during the reporting period, with overall revenue decreasing by approximately HKD 60,886,000, or about 10% compared to the previous year[101]. - Total revenue from publishing and advertising decreased from HKD 509,900 thousand in 2023 to HKD 464,813 thousand in 2024, a decline of about 8.8%[78]. - Digital media business revenue decreased by approximately HKD 15,799,000, or about 14%, totaling around HKD 99,363,000 compared to the same period last year[101]. - The publishing and advertising revenue of "Oriental Daily" was approximately HKD 464,813,000, down by about HKD 45,087,000, or approximately 9% year-on-year[101]. Financing Business - The financing business continues to expand, with the total loan amount and interest income reaching the highest growth in recent years[17]. - Management anticipates steady growth in financing business next year, despite challenges in the property market[17]. - The financing business's receivables amount to approximately HKD 523,917,000, an increase of about HKD 224,077,000 or approximately 75% compared to the previous year[127]. - The total loan interest income from the financing business is approximately HKD 45,453,000, an increase of about HKD 14,478,000 or approximately 47% compared to the previous year[127]. - The average loan-to-value ratio is approximately 74%[127]. Market Conditions - The overall office vacancy rate in Hong Kong has reached new highs, impacting investor confidence and market activity[129]. - The group anticipates a decrease in rental income due to the sluggish local office leasing market, despite stable rental income from local properties[129]. - The government’s removal of the additional stamp duty on residential properties has increased transaction volumes, but restoring market confidence will take time[129]. - The group will prudently select high-return projects for investment purposes amid cautious market conditions[129]. Employee and Operational Costs - Employee costs decreased by approximately HKD 11,985,000 or approximately 3% compared to the previous year[126]. - The cost of raw materials for the printing media slightly decreased by approximately HKD 1,577,000 or approximately 2% compared to the previous year[126]. - The group employed 856 employees as of March 31, 2024, compared to 908 employees in 2023[109]. Investment Properties - The valuation of the group's investment properties decreased by approximately HKD 21,817,000, or about 12%, compared to last year[102]. - The valuation of hotel properties held by the group in Australia increased by AUD 3,360,000, or about 9%, offsetting some of the valuation losses from local investment properties[102]. - The group plans to actively seek buyers for its hotel property to lock in profits and enhance cash flow, having held the property for nearly twenty years[129]. Government Support - The company received government grants of approximately HKD 22,250,000 under the Employment Support Scheme to retain employees during the pandemic[61]. - The company recognized government grants of approximately HKD 27,000 thousand under the maternity leave reimbursement scheme[77].

Financial Performance - The company's profit before tax for the six months ended September 30, 2023, was HKD 34,758,000, a decrease of 66.3% compared to HKD 103,059,000 in the same period of 2022[1]. - The group reported a net profit attributable to shareholders of approximately HKD 30,744,000, down 63.7% from HKD 84,690,000 in the previous year[34]. - The basic earnings per share for the period were approximately HKD 0.0128, compared to HKD 0.0354 for the same period last year, reflecting a decrease of 63.8%[34]. - Net profit for the period was HKD 31,789, down 62.9% from HKD 85,549 in the same period of 2022[48]. - Total comprehensive income for the period was HKD 14,680, a decrease of 53% compared to HKD 31,232 in the previous year[48]. - The decline in profit was primarily due to the cessation of government support subsidies, which amounted to approximately HKD 15,116,000 in the previous year, and a net loss of approximately HKD 19,595,000 from the sale of Australian properties and a settlement with an Australian hotel operator[105]. Revenue and Sales - Revenue from external customers in Hong Kong for the six months ended September 30, 2023, was HKD 306,748,000, a decrease of 8.7% from HKD 335,948,000 in the same period of 2022[12]. - The group's total revenue for the six months ended September 30, 2023, was approximately HKD 312,085,000, a decrease of 9.4% compared to HKD 344,429,000 for the same period in 2022[30]. - Revenue from newspaper publishing and advertising was HKD 233,675,000, down 8.1% from HKD 254,165,000 in the previous year[26]. - Internet subscription and advertising revenue decreased to HKD 50,082,000 from HKD 60,442,000, representing a decline of 17.8%[26]. - The overall revenue of Oriental Daily decreased by approximately HKD 20,490,000, a decline of about 8% compared to the same period last year[115]. - Digital media business revenue fell by approximately HKD 10,360,000, down about 17% year-on-year[115]. Cash Flow and Assets - Operating cash flow before changes in working capital was HKD 50,775,000, down 47.4% from HKD 96,568,000 year-on-year[1]. - The net cash from operating activities for the period was HKD 65,945,000, compared to HKD 70,987,000 in the previous year, reflecting a decline of 7.9%[1]. - The group recorded a decrease in cash and cash equivalents to HKD 253,229,000 as of September 30, 2023, down from HKD 665,196,000 as of March 31, 2023[41]. - The net cash and cash equivalents decreased to HKD 531,673,000 as of September 30, 2023, down from HKD 665,196,000 as of March 31, 2023, indicating a decline of approximately 20.1%[65]. - Current assets increased to HKD 1,204,685,000 as of September 30, 2023, compared to HKD 1,119,815,000 as of March 31, 2023, representing an increase of about 7.6%[62]. - The total assets of the company as of September 30, 2023, were HKD 1,948,405,000, an increase from HKD 1,892,177,000 as of March 31, 2023[10]. Dividends and Shareholder Returns - The company did not declare an interim dividend for the reporting period, compared to an interim dividend of HKD 0.03 per share in the previous year[15]. - The group has not declared a final dividend for the year ended March 31, 2023, compared to a total dividend of approximately HKD 143,876,000 for the previous period[33]. Liabilities and Equity - The total liabilities increased to HKD 128,388,000 as of September 30, 2023, compared to HKD 86,163,000 as of March 31, 2023, which is an increase of about 48.9%[62]. - The company’s equity attributable to owners as of September 30, 2023, was HKD 1,732,062,000, an increase from HKD 1,717,885,000 as of March 31, 2023, reflecting a growth of approximately 0.8%[63]. - The net asset value as of September 30, 2023, was HKD 1,744,535,000, up from HKD 1,729,855,000 as of March 31, 2023, showing a slight increase of approximately 0.8%[63]. Impairments and Fair Value - The company reported a loss of HKD 6,553,000 in fair value of investment properties for the period, with no comparable figure in the previous year[1]. - The fair value loss on investment properties for the reporting period was approximately HKD 6,553,000, compared to no loss for the same period in 2022[70]. - The group confirmed a property impairment of approximately HKD 5,224,000 as of September 30, 2023, compared to no impairment in the previous year[35]. - The valuation of the group's investment properties decreased by approximately HKD 16,500,000, or about 13%, compared to March 31, 2023[135]. Employment and Operations - As of September 30, 2023, the group employed 872 staff, a decrease from 908 staff as of March 31, 2023[123]. - The group plans to continue implementing cost-saving measures to manage production costs, which are expected to remain under pressure[119]. Corporate Governance - The board of directors confirmed compliance with the standard code for securities trading throughout the reporting period[126]. - The group has adopted most of the best practices outlined in the corporate governance code during the reporting period[125]. Shareholding Structure - The total issued shares of the company as of September 30, 2023, were 2,397,917,898 shares[154]. - As of September 30, 2023, Conyers Trustee Services (BVI) Limited holds 1,547,851,284 shares, representing 64.55% of the company's total issued shares[156]. - The ownership structure indicates significant control by a few entities, with the top three shareholders holding over 64% of the shares[156].

Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended September 30, 2023, the Group's revenue decreased by approximately 9% year-on-year to HKD 312.085 million, with profit attributable to owners of the Company significantly down 64% to approximately HKD 30.744 million, and basic earnings per share falling from 3.53 HK cents to 1.28 HK cents Consolidated Statement of Profit or Loss Key Data | Indicator | For the 6 months ended Sep 30, 2023 (HKD thousands) | For the 6 months ended Sep 30, 2022 (HKD thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 312,085 | 344,429 | -9.4% | | Profit before tax | 34,758 | 103,059 | -66.3% | | Profit for the period | 31,789 | 85,549 | -62.8% | | Profit attributable to owners of the Company | 30,744 | 84,690 | -63.7% | | Basic earnings per share | 1.28 HK cents | 3.53 HK cents | -63.7% | - Other comprehensive loss for the period primarily resulted from exchange differences arising from the translation of overseas operations, amounting to a net loss of approximately **HKD 17.11 million**[34](index=34&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of September 30, 2023, the Group's total assets were approximately HKD 1.948 billion, total equity approximately HKD 1.745 billion, with net current assets increasing from HKD 1.034 billion to HKD 1.076 billion primarily due to a significant rise in loans and interest receivables, while cash and cash equivalents decreased from HKD 665.196 million to HKD 531.673 million Balance Sheet Overview | Indicator | Sep 30, 2023 (HKD thousands) | Mar 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | **Non-current assets** | 743,720 | 772,362 | | **Current assets** | 1,204,685 | 1,119,815 | | Of which: Cash and cash equivalents | 531,673 | 665,196 | | Of which: Loans and interest receivables (current) | 520,602 | 292,832 | | **Current liabilities** | 128,388 | 86,163 | | **Net current assets** | 1,076,297 | 1,033,652 | | **Net assets/Total equity** | 1,744,535 | 1,729,855 | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) As of September 30, 2023, total equity attributable to owners of the Company slightly increased to HKD 1.732 billion from HKD 1.718 billion on April 1, 2023, primarily influenced by profit for the period of HKD 30.744 million and exchange difference losses of HKD 16.57 million - During the reporting period, equity attributable to owners of the Company increased from approximately **HKD 1.718 billion** to approximately **HKD 1.732 billion**[40](index=40&type=chunk) - Total comprehensive income for the period was approximately **HKD 14.68 million**, comprising profit of approximately **HKD 31.79 million** and exchange losses from overseas operations of approximately **HKD 17.11 million**[40](index=40&type=chunk)[30](index=30&type=chunk) Notes to the Condensed Consolidated Financial Statements [Basis of Preparation and Principal Accounting Policies](index=6&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%202.%20%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) These condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, with accounting policies consistent with the annual financial statements as of March 31, 2023, and the adoption of new standards had no significant impact on the Group's accounting policies - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[42](index=42&type=chunk) - Several new or revised accounting standards were adopted during the reporting period, but they had no significant impact on the Group's accounting policies[67](index=67&type=chunk)[45](index=45&type=chunk) [Revenue and Segment Information](index=8&type=section&id=4.%20%E6%94%B6%E5%85%A5%E5%8F%8A%205.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's revenue primarily derives from three segments: newspaper publishing, loan business, and other operations, with newspaper publishing remaining the main source despite a year-on-year decline, while loan business revenue grew, and the vast majority of revenue and non-current assets are located in Hong Kong Revenue and Results by Business Segment (HKD thousands) | Reportable Segment | Revenue (2023 H1) | Revenue (2022 H1) | Profit/(Loss) (2023 H1) | Profit/(Loss) (2022 H1) | | :--- | :--- | :--- | :--- | :--- | | Newspaper publishing | 283,757 | 314,607 | 20,984 | 60,929 | | Loan business | 19,046 | 16,891 | 16,973 | 15,833 | | All other operating segments | 9,282 | 12,931 | (1,375) | 21,295 | | **Total** | **312,085** | **344,429** | **36,582** | **98,057** | Revenue and Non-current Assets by Geographical Area (HKD thousands) | Region | Revenue from External Customers (2023 H1) | Non-current Assets (Sep 30, 2023) | | :--- | :--- | :--- | | Hong Kong | 306,748 | 521,479 | | Australia | 5,337 | 204,318 | - During the reporting period, two major customers from the newspaper publishing segment contributed approximately **HKD 160 million** in revenue, accounting for approximately **51%** of total revenue[86](index=86&type=chunk) - Government subsidies (Employment Support Scheme) of approximately **HKD 15.12 million** in the prior corresponding period were not available in the current reporting period[70](index=70&type=chunk)[48](index=48&type=chunk) [Notes on Key Financial Items](index=12&type=section&id=%E9%97%9C%E9%8D%B5%E8%B2%A1%E5%8B%99%E9%A0%85%E7%9B%AE%E9%99%84%E8%A8%BB) This section details key financial statement items, including a significant reduction in income tax expense, the board's decision not to declare an interim dividend, fair value losses on investment properties, a substantial increase in loans receivable, and a decrease in cash and cash equivalents partly due to new restricted bank deposits [Income Tax Expense](index=13&type=section&id=7.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense for the period was approximately HKD 2.97 million, a significant decrease from HKD 17.51 million in the prior year, primarily due to reductions in both current and deferred tax Composition of Income Tax Expense (HKD thousands) | Item | For the 6 months ended Sep 30, 2023 | For the 6 months ended Sep 30, 2022 | | :--- | :--- | :--- | | Current tax | 3,576 | 10,559 | | Deferred tax | (607) | 6,951 | | **Total income tax expense** | **2,969** | **17,510** | [Dividends and Earnings Per Share](index=13&type=section&id=8.%20%E8%82%A1%E6%81%AF%E5%8F%8A%209.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) The Board resolved not to declare an interim dividend for the current period, contrasting with the prior year's interim dividend of 3 HK cents and a special dividend of 2 HK cents per share, while basic earnings per share decreased by 64% year-on-year to 1.28 HK cents - The directors resolved not to declare an interim dividend for the six months ended September 30, 2023[26](index=26&type=chunk) - Basic earnings per share were **1.28 HK cents**, calculated based on profit attributable to owners of the Company of approximately **HKD 30.74 million** and 2,397,917,898 ordinary shares in issue[15](index=15&type=chunk)[36](index=36&type=chunk) [Property, Plant and Equipment and Investment Properties](index=14&type=section&id=10.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E3%80%81%E8%A8%AD%E5%82%99%E5%8F%8A%2011.%20%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD) During the period, the Group acquired approximately HKD 11.33 million in property, plant, and equipment, while the fair value of investment properties decreased by approximately HKD 6.55 million, mainly due to lower valuations of Hong Kong properties partially offset by increased valuations of Australian properties - During the reporting period, the Group purchased approximately **HKD 11.33 million** in property, plant and equipment, and recognized an impairment of approximately **HKD 5.22 million** for leasehold buildings[16](index=16&type=chunk) Fair Value Movement of Investment Properties (HKD thousands) | Item | Sep 30, 2023 | Mar 31, 2023 | | :--- | :--- | :--- | | Fair value at beginning of period | 332,649 | 313,267 | | Fair value change | (6,553) | 38,613 | | Exchange adjustment | (8,942) | (19,231) | | **Fair value at end of period** | **317,154** | **332,649** | [Trade and Other Receivables and Payables](index=16&type=section&id=13.%20%E6%87%89%E6%94%B6%E5%B8%B3%E9%A0%85%E5%8F%8A%2016.%20%E6%87%89%E4%BB%98%E5%B8%B3%E9%A0%85) As of September 30, 2023, the Group's total trade and other receivables were HKD 44.421 million and total trade and other payables were HKD 8.643 million, both decreasing from the beginning of the period, with the majority of receivables aged within 60 days Ageing Analysis of Trade and Other Receivables and Payables (HKD thousands) | Item | Sep 30, 2023 | Mar 31, 2023 | | :--- | :--- | :--- | | **Trade and other receivables** | 44,421 | 58,774 | | 0 – 60 days | 20,697 | 25,933 | | **Trade and other payables** | 8,643 | 11,376 | | 0 – 60 days | 8,105 | 10,980 | [Related Party Transactions and Contingent Liabilities](index=18&type=section&id=19.%20%E9%97%9C%E9%80%A3%E6%96%B9%E4%BA%A4%E6%98%93%E5%8F%8A%2020.%20%E6%9C%AA%E6%B1%BA%E8%A8%B4%E8%A8%9F) During the reporting period, the Group paid approximately HKD 622,000 in legal fees to a law firm where Mr. Lai Hing Chiu, a non-executive director, serves as a senior partner, and the Group has several outstanding lawsuits for which the directors believe adequate provisions have been made - Legal fees of approximately **HKD 622,000** were paid to Messrs. Yiu, Lai, Li & Co, a related party[10](index=10&type=chunk) - The Group has several outstanding lawsuits involving defamation and other matters, for which the directors believe adequate provisions have been made for potential liabilities[31](index=31&type=chunk) Management Discussion and Analysis [Review of Financial Performance](index=20&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E5%9B%9E%E9%A1%A7) During the reporting period, the Group's profit decreased by 64% year-on-year to HKD 30.744 million, and revenue declined by 9% to HKD 312.085 million, with the profit decrease primarily attributed to the absence of prior-period government subsidies, gains from Australian property sales, and current period investment property valuation decreases and impairment of leasehold buildings, resulting in an approximate 15% profit decline excluding these factors - The primary reasons for the profit decrease include: - Approximately **HKD 15.12 million** in government support subsidies in the prior corresponding period, with none in the current period - Approximately **HKD 19.6 million** in gains from the sale of Australian properties and reversal of provisions in the prior corresponding period - Approximately **HKD 11.78 million** in investment property valuation decreases and impairment of leasehold buildings in the current period[13](index=13&type=chunk) [Business Review and Outlook](index=21&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E8%88%87%E5%B1%95%E6%9C%9B) The Group's three core businesses show mixed performance, with media business facing challenges due to weak Hong Kong economic recovery, property investment maintaining stable rental income but experiencing valuation pressure in Hong Kong commercial properties partially offset by Australian hotel property appreciation, and the financing business demonstrating strong growth in loan portfolio size and interest income with an optimistic outlook [Media Business](index=21&type=section&id=%E5%AA%92%E9%AB%94%E6%A5%AD%E5%8B%99) The Group's media business faces significant challenges due to insufficient economic recovery in Hong Kong, population outflow, and increased competition, resulting in an 8% year-on-year decline in overall Oriental Daily News revenue and a 17% decline in digital media revenue, with future strategies focusing on cross-platform promotion and video content expansion to boost advertising revenue in the second half - Oriental Daily News revenue decreased by approximately **HKD 20.49 million** (**-8%**) year-on-year, and digital media business revenue decreased by approximately **HKD 10.36 million** (**-17%**) year-on-year[111](index=111&type=chunk) - The "on.cc Oriental Daily News" mobile application has accumulated over **10 million** downloads and launched new programs like "East Watch" to attract users[109](index=109&type=chunk) - Looking ahead, government economic stimulus measures and major events are expected to help boost advertising revenue in the second half of the year[97](index=97&type=chunk) [Property Investment Business](index=23&type=section&id=%E7%89%A9%E6%A5%AD%E6%8A%95%E8%B3%87%E6%A5%AD%E5%8B%99) In Hong Kong property investment, the North Point commercial property is fully leased with stable rental income but experienced a valuation decrease of approximately HKD 16.5 million due to economic downturn, while Australian hotel property valuation increased by AUD 1.92 million due to strong tourism, partially offsetting losses, and the Group is actively seeking buyers for the Australian hotel to lock in profits - Hong Kong investment property valuation decreased by approximately **HKD 16.5 million** (**-13%**) compared to March 31, 2023, and recorded an impairment loss of approximately **HKD 5.22 million** for leasehold properties[94](index=94&type=chunk) - The Australian hotel property valuation increased by **AUD 1.92 million** (**+5%**), and the Group continues to actively seek buyers to dispose of the hotel[94](index=94&type=chunk)[116](index=116&type=chunk) [Financing Business](index=23&type=section&id=%E8%9E%8D%E8%B3%87%E6%A5%AD%E5%8B%99) The financing business continues its strong growth, with loans receivable significantly increasing by 75% to approximately HKD 524 million at period-end, and interest income rising 13% year-on-year to HKD 19.05 million, as the Group focuses on high-quality clients primarily with first mortgages on properties and has no bad debt record, leading management to be optimistic about its prospects - Loans receivable increased by approximately **HKD 224 million** (**+75%**) compared to March 31, 2023, reaching approximately **HKD 524 million**[113](index=113&type=chunk) - Total loan interest income was approximately **HKD 19.05 million**, an increase of approximately **HKD 2.16 million** (**+13%**) year-on-year[113](index=113&type=chunk) - Management expects the financing business to expand steadily and is optimistic about its prospects[117](index=117&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E8%88%87%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) As of September 30, 2023, the Group maintained a solid financial position with net current assets of approximately HKD 1.076 billion, including HKD 531.673 million in cash and bank balances, while the gearing ratio slightly increased from 0.4% to 2.1%, with capital expenditure for the period at approximately HKD 11.33 million and no significant investment plans currently Liquidity and Capital Structure | Indicator | Sep 30, 2023 | Mar 31, 2023 | | :--- | :--- | :--- | | Net current assets (HKD thousands) | 1,076,297 | 1,033,652 | | Cash and bank balances (HKD thousands) | 531,673 | 665,196 | | Gearing ratio | 2.1% | 0.4% | - Capital expenditure for the reporting period was approximately **HKD 11.33 million**, compared to **HKD 1.6 million** in the prior corresponding period[25](index=25&type=chunk) - Approximately **HKD 278 million** in short-term time deposits have been pledged as collateral for the Group's bank overdrafts[108](index=108&type=chunk) Other Information [Corporate Governance and Other Disclosures](index=25&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2) The Group complied with all code provisions of the Corporate Governance Code during the reporting period, and the Audit Committee reviewed the interim financial statements without objection, while the Group currently has no foreign currency hedging policy but continuously monitors risks, employed 872 staff at period-end, and did not purchase, sell, or redeem any listed securities during the period - The Group has complied with all code provisions of Appendix 14 "Corporate Governance Code" of the Listing Rules[103](index=103&type=chunk) - The Audit Committee has discussed and reviewed the unaudited condensed consolidated interim financial statements with management and has no objections[102](index=102&type=chunk) - As of September 30, 2023, the Group employed **872** staff, a decrease from **908** as of March 31, 2023[101](index=101&type=chunk) - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[121](index=121&type=chunk)

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) This section provides a concise overview of the Group's financial performance and position for the reporting period [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the year ended March 31, 2023, the Group's total revenue decreased by 7.9% to HKD 677.16 million, yet profit for the year slightly increased by 1.8% to HKD 171 million, with EPS flat at HKD 6.95 cents Consolidated Statement of Profit or Loss Key Data (HKD thousands) | Indicator | 2023 | 2022 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 677,165 | 735,782 | -7.9% | | Profit Before Tax | 212,778 | 199,387 | +6.7% | | **Profit for the Year** | **170,923** | **167,874** | **+1.8%** | | Profit Attributable to Owners of the Company | 166,564 | 166,744 | -0.1% | | Total Comprehensive Income for the Year | 129,572 | 165,392 | -21.7% | | **Earnings Per Share (Basic & Diluted)** | **HKD 6.95 cents** | **HKD 6.95 cents** | **0.0%** | - Despite a decline in publishing and advertising revenue, a net gain of approximately **HKD 11.3 million** from the sale of Australian property, coupled with Hong Kong government subsidies and stringent cost control, led to a slight increase in overall profit compared to the previous year[8](index=8&type=chunk)[102](index=102&type=chunk) [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2023, the Group's total assets decreased by 8.1% to HKD 1.89 billion, primarily due to investment property disposals, while net assets declined to HKD 1.73 billion, maintaining a robust financial position with HKD 1.03 billion in net current assets and HKD 665 million in cash Consolidated Statement of Financial Position Key Data (HKD thousands) | Indicator | March 31, 2023 | March 31, 2022 | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 772,362 | 774,260 | -0.2% | | Total Current Assets | 1,119,815 | 1,283,628 | -12.8% | | **Total Assets** | **1,892,177** | **2,057,888** | **-8.1%** | | Total Current Liabilities | 86,163 | 121,689 | -29.2% | | Non-current Liabilities | 76,159 | 72,144 | +5.6% | | **Net Assets** | **1,729,855** | **1,864,055** | **-7.2%** | | Cash and Cash Equivalents | 665,196 | 633,593 | +5.0% | [Business Review and Outlook](index=17&type=section&id=Business%20Review%20and%20Outlook) This section provides an overview of the Group's operational performance across its segments and its strategic future plans [Business Review](index=17&type=section&id=Business%20Review) During the reporting period, the Group faced macroeconomic challenges, with media business revenue declining by 8%, yet overall profit slightly increased due to property sales, government subsidies, and strict cost control, while financing business remained stable and property investment showed mixed performance [Media Business](index=18&type=section&id=Media%20Business) Affected by a weak Hong Kong economy, media business revenue declined by approximately 8%, with publishing and advertising revenue down 6% and digital media revenue down 14%, despite a 27% rise in raw material costs, mitigated by a 2% reduction in staff costs and a 22% decrease in other operating expenses - Oriental Daily News publishing and advertising revenue decreased by **6%** year-on-year to **HKD 510 million**; digital media business revenue decreased by **14%** year-on-year to **HKD 115 million**[107](index=107&type=chunk) - Printing media raw material costs increased by **27%** year-on-year, but staff costs decreased by approximately **2%**[107](index=107&type=chunk) - The Group's on.cc mobile application accumulated over **10 million** downloads, and the financial platform on.cc Money18 has nearly **1 million** registered users, demonstrating strong digital media influence[90](index=90&type=chunk)[91](index=91&type=chunk) [Financing Business](index=19&type=section&id=Financing%20Business) The financing business demonstrated stable performance, with outstanding loans at approximately HKD 300 million and total interest income increasing by 1% to HKD 30.98 million, maintaining a prudent strategy focused on first mortgage short-term property loans with no bad debt recorded Financing Business Key Indicators | Indicator | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Loans Receivable (HKD) | ~299.8 million | ~302.7 million | -1% | | Total Loan Interest Income (HKD) | 30,975,000 | 30,612,000 | +1% | - The Group's financing business operates prudently, carefully selecting quality clients, primarily focusing on first mortgage property loans, and continuously monitoring collateral market values to control risk[109](index=109&type=chunk) [Property Investment](index=19&type=section&id=Property%20Investment) The property investment portfolio showed mixed performance, with Australian hotel property valuations rising by 28% due to tourism recovery and a successful sale of an investment property for AUD 38 million, while Hong Kong commercial property valuations declined by 5% due to market weakness despite full occupancy - Successfully sold a portion of Australian investment property for **AUD 38 million**, distributing a special interim dividend to shareholders in the current year[87](index=87&type=chunk)[93](index=93&type=chunk) - Australian hotel property valuation increased by **AUD 8.4 million** (**+28%**) due to tourism recovery[93](index=93&type=chunk) - Hong Kong North Point commercial property valuation decreased by approximately **HKD 6.5 million** (**-5%**) due to market weakness[93](index=93&type=chunk) [Business Outlook](index=20&type=section&id=Business%20Outlook) The Group anticipates a recovery in advertising revenue with Hong Kong's economic rebound and border reopening, continuing to develop digital media and diversified paid content, while steadily expanding financing operations and actively seeking buyers for Australian hotel properties to lock in profits - Hong Kong's economic recovery and border reopening with mainland China are expected to stimulate increased advertising by clients, driving a rebound in the Group's advertising revenue[112](index=112&type=chunk) - Resources will continue to be invested in developing new media businesses, improving advertising formats for e-commerce marketing, and developing diversified paid content platforms[112](index=112&type=chunk)[114](index=114&type=chunk) - The financing business outlook is optimistic, with expected steady expansion and capital allocation for higher returns[113](index=113&type=chunk) - The Group will continue to actively seek buyers for its Australian hotel properties to lock in profits and prudently select high-return local investment projects[96](index=96&type=chunk) [Dividend Policy](index=14&type=section&id=Dividend%20Policy) The Board resolved not to declare a final dividend for the year ended March 31, 2023, resulting in a total annual dividend of HKD 5 cents per share, including interim and special interim dividends, lower than the previous year's HKD 9 cents per share Annual Dividend Comparison | Dividend Type | FY2023 (Per Share) | FY2022 (Per Share) | | :--- | :--- | :--- | | Interim Dividend | 3 HK cents | 3 HK cents | | Special Interim Dividend | 2 HK cents | N/A | | Final Dividend | N/A | 3 HK cents | | Special Final Dividend | N/A | 3 HK cents | | **Total Annual Dividend** | **5 HK cents** | **9 HK cents** | - The Board resolved not to declare a final dividend for the year ended March 31, 2023[60](index=60&type=chunk)[103](index=103&type=chunk) [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed explanations and disclosures for various items presented in the financial statements [Basis of Preparation and Changes in Accounting Policies](index=5&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) These financial statements are prepared in accordance with HKFRS, with the Group adopting several new and revised HKFRS standards during the year, which had no significant impact on the financial statements, and no material impact is expected from future adoptions - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, generally accepted accounting principles in Hong Kong, and the Companies Ordinance[24](index=24&type=chunk) - The Group has initially applied several revised standards effective on or after January 1, 2022, including amendments related to onerous contracts costs and references to the Conceptual Framework[13](index=13&type=chunk)[25](index=25&type=chunk) - The adoption of these new or revised standards has not had any significant impact on the consolidated financial statements[17](index=17&type=chunk) [Revenue and Segment Information](index=8&type=section&id=Revenue%20and%20Segment%20Information) The Group's total revenue is primarily derived from three operating segments: newspaper publishing, loan business, and other operations, with newspaper publishing being the largest contributor at HKD 625 million, and the majority of revenue and non-current assets located in Hong Kong External Customer Revenue by Segment (HKD thousands) | Operating Segment | 2023 | 2022 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Newspaper Publishing | 625,062 | 676,039 | -7.5% | | Loan Business | 30,975 | 30,612 | +1.2% | | All Other Operating Segments | 21,128 | 29,131 | -27.5% | | **Total** | **677,165** | **735,782** | **-7.9%** | External Customer Revenue by Geographical Region (HKD thousands) | Region | 2023 | 2022 | | :--- | :--- | :--- | | Hong Kong | 664,796 | 715,779 | | Australia | 12,369 | 20,003 | | **Total** | **677,165** | **735,782** | - During the reporting period, the Group received approximately **HKD 22.28 million** in government grants, primarily from the Hong Kong Government's "Employment Support Scheme"[39](index=39&type=chunk)[40](index=40&type=chunk) [Key Financial Items Notes](index=13&type=section&id=Key%20Financial%20Items%20Notes) This section details key financial items including income tax, earnings per share, trade receivables and payables, borrowings, and asset disposals, noting increased tax expense, stable EPS, significantly reduced payables, a low-interest related-party loan, and the sale of an Australian investment property [Income Tax Expense](index=13&type=section&id=Income%20Tax%20Expense) Income tax expense for the year increased by 32.8% to HKD 41.86 million, comprising HKD 20.38 million in Hong Kong profits tax and HKD 14.67 million in Australian corporate income tax Income Tax Expense Breakdown (HKD thousands) | Item | 2023 | 2022 | | :--- | :--- | :--- | | Hong Kong Profits Tax | 20,376 | 25,908 | | Australian Corporate Income Tax | 14,671 | – | | Deferred Tax | 6,808 | 5,605 | | **Total** | **41,855** | **31,513** | [Earnings Per Share](index=14&type=section&id=Earnings%20Per%20Share) Basic earnings per share for the year ended March 31, 2023, remained flat at HKD 6.95 cents, with diluted earnings per share being identical due to the absence of any dilutive potential shares during the year - Basic earnings per share are calculated based on profit attributable to owners of the Company of approximately **HKD 166.6 million** and 2,397,917,898 ordinary shares in issue[61](index=61&type=chunk) - Diluted earnings per share are the same as basic earnings per share as there were no potentially dilutive shares[81](index=81&type=chunk) [Trade Receivables and Payables](index=15&type=section&id=Trade%20Receivables%20and%20Payables) As of the reporting period end, trade receivables net of impairment allowance were HKD 58.77 million, with an increased proportion of amounts over 90 days, while trade payables significantly decreased by 45.7% to HKD 11.38 million, primarily due within 60 days Trade Receivables Aging Analysis (HKD thousands) | Aging | 2023 | 2022 | | :--- | :--- | :--- | | 0–60 Days | 25,933 | 27,567 | | 61–90 Days | 7,852 | 12,018 | | Over 90 Days | 24,989 | 17,322 | | **Total** | **58,774** | **56,907** | Trade Payables Aging Analysis (HKD thousands) | Aging | 2023 | 2022 | | :--- | :--- | :--- | | 0–60 Days | 10,980 | 19,255 | | 61–90 Days | 158 | 1,084 | | Over 90 Days | 238 | 635 | | **Total** | **11,376** | **20,974** | [Borrowings](index=16&type=section&id=Borrowings) As of March 31, 2023, the Group's borrowings totaled HKD 7.57 million, representing an unsecured AUD loan from a non-controlling shareholder of a subsidiary, bearing an annual interest rate of 4% and repayable on demand - Borrowings consist of an other loan of **HKD 7.57 million**, unsecured, provided by a non-controlling shareholder of a subsidiary, bearing an annual interest rate of **4%**, and repayable on demand[66](index=66&type=chunk)[68](index=68&type=chunk) [Sale of Investment Property](index=16&type=section&id=Sale%20of%20Investment%20Property) The Group completed the sale of a portion of its Australian investment property on June 23, 2022, for a total consideration of AUD 38 million, generating a net gain of approximately HKD 11.3 million for the current year - The sale of an Australian investment property was completed on June 23, 2022, for a consideration of **AUD 38 million** (approximately **HKD 207 million**)[87](index=87&type=chunk)[100](index=100&type=chunk) - This disposal generated a net gain of approximately **AUD 2.087 million** (approximately **HKD 11.3 million**)[70](index=70&type=chunk) [Other Important Information](index=21&type=section&id=Other%20Important%20Information) This section covers additional crucial details regarding the Group's financial resources, liquidity, and corporate governance practices [Financial Resources and Liquidity](index=21&type=section&id=Financial%20Resources%20and%20Liquidity) The Group maintains ample liquidity, with net current assets of HKD 1.03 billion and cash and cash equivalents of HKD 665 million as of March 31, 2023, and a very low gearing ratio of 0.4%, indicating a robust financial structure Liquidity and Capital Structure (HKD thousands) | Indicator | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | | Net Current Assets | 1,033,652 | 1,161,939 | | Cash and Cash Equivalents | 665,196 | 633,593 | | Gearing Ratio | 0.4% | 0.4% | - Capital expenditure for the current year was approximately **HKD 4.71 million**, a significant decrease from **HKD 9.66 million** in the previous year[116](index=116&type=chunk) [Corporate Governance and Compliance](index=21&type=section&id=Corporate%20Governance%20and%20Compliance) During the reporting period, the company complied with all applicable Corporate Governance Code provisions, with the Audit Committee reviewing the annual results, and no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries occurred - The company has complied with all applicable code provisions set out in Appendix 14 of the Listing Rules, "Corporate Governance Code"[98](index=98&type=chunk) - The Audit Committee, in conjunction with management, reviewed the Group's adopted accounting standards and practices and the full-year results for the reporting period[99](index=99&type=chunk) - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[122](index=122&type=chunk)

Financial Performance - Revenue for the six months ended September 30, 2022, was HKD 344,429,000, a decrease of 6.9% compared to HKD 370,323,000 in the same period of 2021[5] - Net profit for the period was HKD 85,549,000, representing an increase of 20.9% from HKD 70,749,000 in the previous year[5] - Basic and diluted earnings per share increased to HKD 3.53 cents from HKD 2.94 cents, reflecting a growth of 20.1%[7] - Total comprehensive income for the period was HKD 31,232,000, down from HKD 52,830,000 in the same period last year, a decrease of 41.1%[5] - The company reported a pre-tax profit of HKD 103,059,000 for the six months ended September 30, 2022, compared to HKD 90,079,000 in the same period of 2021, representing an increase of approximately 14.4%[13] - The income tax expense for the reporting period was HKD 17,510,000, a decrease of 8.4% from HKD 19,330,000 for the six months ended September 30, 2021[44] - The unaudited consolidated profit attributable to the company's owners was approximately HKD 84,690,000, an increase of about HKD 14,175,000 or approximately 20.1% year-on-year[67] Assets and Liabilities - Non-current assets, including property, plant, and equipment, amounted to HKD 413,345,000 as of September 30, 2022, down from HKD 427,480,000 as of March 31, 2022[9] - Current assets totaled HKD 1,181,958,000, a decrease from HKD 1,283,628,000 as of March 31, 2022[9] - Total liabilities decreased to HKD 110,963,000 from HKD 121,689,000, indicating a reduction of 8.8%[9] - The company's equity attributable to owners decreased to HKD 1,743,227,000 from HKD 1,855,463,000, a decline of 6.0%[11] - Total assets as of September 30, 2022, were HKD 1,924,173,000, a decrease from HKD 2,057,888,000 as of March 31, 2022[33] - The group's liabilities as of September 30, 2022, were HKD 172,762,000, compared to HKD 135,836,000 as of March 31, 2022[33] Cash Flow and Investments - Operating cash flow before changes in working capital decreased to HKD 96,568,000 from HKD 106,261,000, a decline of about 9.6% year-over-year[13] - Net cash generated from operating activities was HKD 70,987,000, down from HKD 116,353,000, indicating a decrease of approximately 39.1%[13] - The net cash used in investing activities was HKD 186,582,000, a substantial improvement from a net cash used of HKD 5,298,000 in the prior year[15] - The group’s capital expenditure during the reporting period was approximately HKD 1,596,000, compared to approximately HKD 6,283,000 for the six months ended September 30, 2021[69] Revenue Breakdown - Revenue from publishing and advertising was HKD 254,165,000, down 6.3% from HKD 271,285,000 year-on-year[28] - Internet subscription and advertising revenue decreased to HKD 60,442,000 from HKD 67,227,000, representing a decline of 10.5%[28] - Revenue from external customers in Hong Kong was HKD 335,948,000, down from HKD 358,599,000 in the previous year[38] - Oriental Daily's overall revenue decreased by approximately HKD 17,120,000, a decline of about 6.3% compared to the same period last year[79] - On.cc's revenue also fell by approximately HKD 6,785,000, down about 10.1% year-on-year[79] Dividends - The company paid dividends totaling HKD 143,876,000 during the reporting period, compared to HKD 167,854,000 in the same period last year, reflecting a decrease of approximately 14.3%[19] - The company declared a final dividend of HKD 0.03 per share and a special dividend of HKD 0.03 per share, totaling approximately HKD 143,876,000, compared to HKD 167,854,000 for the same period last year[45] - The board declared an interim dividend of HKD 0.03 per share and a special dividend of HKD 0.02 per share, to be distributed on December 22, 2022[73] Foreign Exchange and Other Income - The company reported a foreign exchange loss of HKD 54,317,000 during the period, compared to a gain of HKD 17,919,000 in the previous year[5] - Other income increased significantly to HKD 32,269,000 from HKD 14,765,000, marking a growth of 118.5%[5] - The company reported a significant foreign exchange loss of HKD 53,050,000 during the period, impacting overall financial results[19] Shareholding Structure - As of September 30, 2022, Mr. Ma Chengfa holds 1,547,851,284 shares, representing 64.55% of the company's total issued shares[92] - Mr. Ma Jinghao holds 95,916,000 shares, accounting for 4.00% of the company's total issued shares[92] - The total number of issued shares as of September 30, 2022, is 2,397,917,898[94] - Conyers Trustee Services (BVI) Limited, as trustee of Ocean Trust, holds 1,547,851,284 shares, which is 64.55% of the company[98] - Ocean Greatness Limited and Marsun Holdings Limited also hold 1,547,851,284 shares each, representing 64.55%[98] - Magicway Investment Limited holds 1,222,941,284 shares, which is 51.00% of the company[98] - Ever Holdings Limited holds 324,910,000 shares, accounting for 13.55% of the company[98] - Perfect Deal Trading Limited holds 149,870,000 shares, representing 6.25% of the company[98] - The company has not disclosed any other individuals holding shares or related interests as of September 30, 2022[99] Operational Challenges - The company faced uncertainties in its business environment due to the COVID-19 pandemic, impacting its operations and financial condition[90] - The group expects advertising revenue to continue to be under pressure, impacting overall profitability for the fiscal year[82]

Financial Performance - The audited consolidated annual profit for the year ended March 31, 2022, was HKD 167,874,000, a decrease of HKD 44,957,000 or 21% compared to the previous year, primarily due to the absence of government subsidy income and reduced foreign exchange gains [6]. - Excluding the aforementioned factors, the overall profit for the reporting year actually increased by HKD 57,966,000, representing a 53% rise compared to the previous year [6]. - The media business revenue for the group reached HKD 676,039,000, with Oriental Daily's publishing and advertising revenue increasing by HKD 16,991,000, or 3% year-on-year [19]. - Digital media revenue rose to HKD 134,401,000, an increase of HKD 6,882,000, or 5% compared to the previous year, benefiting from the trend of mobile usage and online shopping [19]. - The total loan amount for Oriental Financing was HKD 302,770,000, a 4% increase year-on-year, with total loan interest income reaching HKD 30,612,000, up HKD 9,531,000, or 45% [21]. Assets and Liabilities - As of March 31, 2022, the net current assets amounted to HKD 1,161,939,000, an increase from HKD 1,013,168,000 in 2021, with cash and bank balances totaling HKD 633,593,000 [7]. - The group's property, plant, and equipment had a carrying value of approximately HKD 427,480,000 as of March 31, 2022, representing about 20.8% of the total assets, down from 22.3% in 2021 [194]. - The fair value of investment properties, including those classified as held for sale, is approximately HKD 524,086,000 as of March 31, 2022, compared to HKD 489,998,000 in 2021, representing about 25.5% of the total assets of the group (2021: 23.5%) [197]. Dividends - The company proposed a final dividend of HKD 0.03 per share and a special dividend of HKD 0.03 per share, compared to HKD 0.02 and HKD 0.05 respectively in the previous year, maintaining an annual dividend of HKD 0.09 [10]. - The board has proposed a final dividend of HKD 0.03 per share and a special dividend of HKD 0.03 per share, totaling an expected distribution of HKD 143,876,000 [32]. - The company's distributable reserves for the reporting year amounted to HKD 239,520,000, a decrease of 39.1% from HKD 393,352,000 in 2021 [38]. Operational Highlights - The company reported over 32 million live streaming views on its news platform during the reporting year, indicating strong user engagement [15]. - The revamped "on.cc" platform introduced new features, enhancing user experience and engagement with real-time news and live broadcasts [15]. - The "onCH Video" platform provided continuous news and commentary, gaining popularity for its engaging presentation style during the pandemic [16]. - The "on.net Money18" platform underwent a redesign, improving clarity and user accessibility for financial information, which was well-received by users [16]. Employee and Cost Management - The group has reduced employee numbers from 1,078 to 960, resulting in a decrease in employee costs by HKD 58,336,000, or 13% [21]. - The employee turnover rate for the group was 15% of the total workforce [52]. - The company plans to increase employee training opportunities and compensation to address the higher employee turnover rate attributed to recent immigration trends [155]. Corporate Governance - The company has adopted a corporate governance code to ensure high governance standards and protect shareholder interests [109]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced composition [113]. - The company has complied with the corporate governance code and adopted most of the recommended best practices as of the fiscal year ending March 31, 2022 [110]. - The board meets at least four times a year, approximately once per quarter, to discuss business performance and strategies [119]. Risk Management - The company has established a comprehensive risk management policy and system to effectively identify, assess, analyze, and mitigate risks associated with strategic, operational, financial reporting, and compliance objectives [151]. - The board confirmed that the risk management and internal control systems are effective and sufficient, with no unusual circumstances or additional risks identified during the annual review [157]. - The internal audit was conducted by an independent professional firm, which evaluated the effectiveness of the internal control system and risk management mechanisms [161]. Environmental and Social Responsibility - The company has implemented various environmental measures, achieving expected goals in pollution reduction and resource utilization [45]. - The company has installed a solar photovoltaic system to reduce carbon emissions and promote renewable energy usage [45]. - The company made charitable donations totaling HKD 1,160,000 during the reporting year, compared to none in 2021 [93]. Shareholder Relations - The company has established a shareholder communication policy to facilitate effective communication and encourage active participation from shareholders [175]. - The company encourages shareholders holding at least 5% of voting rights to request a general meeting and propose agenda items [170]. Audit and Compliance - The independent auditor's report confirmed compliance with ethical standards and the adequacy of audit evidence obtained [187]. - The audit procedures included evaluating the adequacy of the impairment provisions and the reasonableness of the assumptions used in the expected credit loss model [191]. - The audit committee reviewed the accounting standards and practices adopted by the group for the fiscal year [57].

官方 東方企控集團有限公司 ( 股份代號 : 18 ) 2021/ F 1 : 公司資料 | --- | --- | |------------------------------------------------|------------------------------------------------------------------------------------------| | | | | 董事會 | 企業社會責任委員會 | | 執行董事 馬澄發先生， BBS 主席 | 馬澄發先生， BBS （主席） 湛祐楠先生 浦炳榮先生， JP | | 馬澄財先生 | 公司秘書 | | 副主席 林順泉先生 行政總裁 | 朱卓婷女士 （於 2021 年 9 月 1 日辭任） 黃嘉邦先生 | | | （於 2021 年 9 月 1 日獲委任） | | 非執行董事 黎慶超先生 | 律師 | | | 姚黎李律師行 | | 獨立非執行董事 湛祐楠先生 浦炳榮先生， JP | 核數師 恒健會計師行有限公司 | | 林日輝先生 | 執業會計師 | | 常務委員會 （主席） | 主要往來銀行 | | 馬澄發先生， ...

Financial Performance - The audited consolidated annual profit for the year ended March 31, 2021, was HKD 212,831,000, a significant increase from a loss of HKD 11,567,000 in the previous year, driven by reduced production costs and operational expenses, as well as government subsidies totaling HKD 61,289,000[8]. - Total revenue for 2021 was HKD 699,619,000, a decrease of 15.0% from HKD 823,014,000 in 2020[198]. - The company reported a profit before tax of HKD 235,948,000, compared to a loss of HKD 12,296,000 in the previous year[198]. - Net profit for the year was HKD 212,831,000, a turnaround from a loss of HKD 11,567,000 in 2020[198]. - Basic and diluted earnings per share for 2021 were HKD 8.81 cents, compared to a loss of HKD 0.46 cents per share in 2020[198]. - Total comprehensive income for the year was HKD 237,718,000, recovering from a loss of HKD 28,868,000 in 2020[198]. - Other income increased significantly to HKD 93,354,000 from HKD 43,123,000, representing a growth of 116.6%[198]. - The fair value adjustment of investment properties resulted in a gain of HKD 39,896,000, contrasting with a loss of HKD 53,209,000 in the prior year[198]. - Foreign exchange gains amounted to HKD 41,634,000, compared to a loss of HKD 30,111,000 in 2020[198]. Assets and Liabilities - As of March 31, 2021, the group's net current assets were approximately HKD 1,013,168,000, an increase from HKD 875,103,000 in 2020, with cash and bank balances amounting to HKD 654,265,000[9]. - The group's capital debt ratio was 0.4% as of March 31, 2021, compared to 0.3% in 2020, indicating a stable financial position[9]. - The group has no significant contingent liabilities as of March 31, 2021, reflecting a strong financial health[11]. - The carrying value of leased properties was HKD 409,071,000, representing 20% of the total assets, down from 22% the previous year[165]. - The fair value of the group's investment properties was estimated at HKD 489,998,000, which accounted for 24% of total assets, an increase from 20% in the previous year[168]. - Significant receivables and interest amounted to HKD 292,238,000, representing about 14% of total assets, up from 12% the previous year[179]. Revenue and Dividends - Revenue from publishing newspapers and advertising decreased by HKD 135,087,000, or 20.5%, to HKD 524,647,000 compared to the previous year[21]. - Digital media advertising revenue increased by 8.8%, reaching HKD 127,519,000, an increase of HKD 10,349,000 year-on-year[21]. - The company proposed a final dividend of HKD 0.02 per share and a special dividend of HKD 0.05 per share, resulting in a total annual dividend of HKD 0.09 per share for the year[12]. - The company declared an interim dividend of HKD 0.02 per share and proposed a final dividend of HKD 0.02 and a special dividend of HKD 0.05, totaling approximately HKD 167,854,000[40]. - The available distributable reserves as of March 31, 2021, amounted to HKD 393,352,000, an increase from HKD 174,326,000 in 2020[45]. Digital Media and Engagement - The "Oriental Daily" maintained its position as the top-selling paid newspaper in Hong Kong for 45 consecutive years, highlighting its importance during the COVID-19 pandemic[17]. - The website and mobile platform "on.cc" recorded 830 million monthly page views, indicating strong reader engagement and popularity[17]. - The new platform "TiBo" was launched to provide comprehensive global sports information, enhancing the group's digital media offerings[17]. - The mobile game application "Ma Cheung Boss" became one of the most popular horse racing information apps in Hong Kong, expanding the group's digital media business[17]. - The number of readers for "Oriental Daily" reached 3,090,368, surpassing "Apple Daily" by 1,613,715 readers, or 109.3%[26]. - The company plans to enhance digital media development and user experience, targeting a younger audience with new platforms and paid multimedia content[26]. Corporate Governance - The company has complied with the Hong Kong Stock Exchange's listing rules and has adopted most of the recommended best practices in corporate governance[63]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced composition[103]. - The company has adopted a corporate governance policy to ensure high standards and protect shareholder interests[102]. - The board has established six committees: Executive Committee, Audit Committee, Remuneration Committee, Nomination Committee, Investment Committee, and Corporate Social Responsibility Committee to ensure high levels of corporate governance[112]. - The company emphasizes the importance of independent opinions from committees to maintain effective oversight and governance[112]. - The company has a shareholder communication policy aimed at promoting effective communication with shareholders and stakeholders[148]. Employee and Operational Insights - The group employed 1,078 employees as of March 31, 2021, a decrease from 1,197 employees in 2020[32]. - The employee turnover rate for the reporting year was approximately 10.1% of the total workforce[59]. - The company emphasizes employee training and development to enhance skills and knowledge[58]. - The company has established a retirement benefits plan detailed in the financial statements[86]. - The company encourages continuous professional development for all directors, providing training on financial management, corporate governance, and regulatory updates[130]. Risk Management and Compliance - The company has established a comprehensive risk management policy to identify, assess, and mitigate risks associated with strategic, operational, financial reporting, and compliance objectives[132]. - The internal control system is designed to provide reliable financial information for internal use and external reporting, ensuring compliance with applicable laws and regulations[135]. - The board is responsible for monitoring compliance with legal and regulatory requirements[108]. - The internal audit team conducts regular reviews to ensure policies and operational procedures are properly implemented and assets are adequately protected[136]. - The auditor's responsibility includes evaluating the appropriateness of accounting policies and the reasonableness of estimates and disclosures made by management[191]. Environmental Initiatives - The group has implemented various environmental measures, including the installation of solar photovoltaic systems to reduce carbon emissions[52]. - The group has adopted a paperless office initiative, utilizing electronic forms and internal communication systems to reduce paper consumption[52].

Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 336,741,000, a decrease of 23% compared to HKD 436,181,000 for the same period in 2019[6] - Operating profit increased to HKD 88,989,000, up 100% from HKD 44,355,000 in the previous year[6] - Net profit for the period was HKD 87,351,000, compared to HKD 36,614,000 in the same period last year, representing a 138% increase[6] - Basic and diluted earnings per share were HKD 3.64 cents, up from HKD 1.52 cents in the previous year[8] - Total comprehensive income for the period was HKD 103,151,000, significantly higher than HKD 29,905,000 in the prior year[6] - The company's profit before tax for the six months ended September 30, 2020, was HKD 88,861,000, compared to HKD 44,225,000 for the same period in 2019, representing a 100% increase[16] - The company reported a total comprehensive income of HKD 102,345,000 for the six months ended September 30, 2020, compared to HKD 29,905,000 for the same period in 2019, marking an increase of approximately 242%[21] - The unaudited consolidated profit attributable to the owners of the company increased by 139% to HKD 87,323,000, mainly due to cost-saving measures and foreign exchange gains[67] Assets and Liabilities - Non-current assets as of September 30, 2020, amounted to HKD 953,018,000, an increase from HKD 928,587,000 as of March 31, 2020[10] - Current assets totaled HKD 1,071,313,000, compared to HKD 968,510,000 as of March 31, 2020[10] - The company's equity attributable to owners was HKD 1,413,964,000, with reserves of HKD 431,973,000 as of September 30, 2020[12] - The company reported a net cash position of HKD 645,052,000 as of September 30, 2020, compared to HKD 594,108,000 at the end of March 2020[10] - The company's total equity as of September 30, 2020, was HKD 1,851,846,000, compared to HKD 1,807,468,000 in the previous year, representing an increase of about 2.4%[21] - The net current assets as of September 30, 2020, were HKD 952,728,000, an increase from HKD 875,103,000 as of March 31, 2020[68] - The total receivables as of September 30, 2020, amounted to HKD 64,386,000, a decrease from HKD 73,932,000 as of March 31, 2020[56] - The total payables as of September 30, 2020, were HKD 10,673,000, down from HKD 15,974,000 as of March 31, 2020[57] Cash Flow - Operating cash flow for the period was HKD 44,830,000, a significant decrease from HKD 167,206,000 in the previous year, reflecting a decline of approximately 73%[16] - The net cash increase for the period was HKD 47,125,000, down from HKD 117,991,000 in the same period last year, indicating a decrease of about 60%[17] - The company’s interest income from bank deposits and short-term deposits was HKD (3,641,000), a slight improvement from HKD (4,333,000) in the previous year, showing a reduction in losses[16] Revenue Breakdown - Publishing and advertising revenue was HKD 259,474,000, down from HKD 356,200,000, representing a decline of 27.2%[33] - Internet subscription and advertising revenue remained stable at HKD 58,334,000, slightly up from HKD 58,101,000[33] - Restaurant operations revenue was HKD 3,235,000, a decrease from HKD 3,541,000[33] - Revenue from external customers in Hong Kong is HKD 331,961,000, down 22.1% from HKD 426,191,000 in 2019[39] - The advertising and circulation revenue of the "Oriental Daily" was HKD 259,474,000, a decrease of 27% compared to the same period last year[77] - Digital media advertising revenue remained stable at HKD 58,316,000, comparable to the previous year[77] Government Support - Government subsidies received included HKD 30,688,000 from the Hong Kong government's Employment Support Scheme and HKD 1,025,000 from the Australian Taxation Office's JobKeeper program[34] - The company received government subsidies totaling HKD 31,713,000 from both the Hong Kong and Australian governments[77] Foreign Exchange Impact - The company experienced a foreign exchange gain of HKD 15,800,000 during the period, compared to a loss of HKD 6,709,000 in the previous year[6] - The company recorded a foreign exchange gain of HKD 28,262,000 due to the appreciation of the Australian dollar[77] - The foreign exchange gain from properties located in Australia is HKD 43,566,000, compared to a loss of HKD 46,293,000 as of March 31, 2020[51] - The company experienced a foreign exchange loss of HKD 28,262,000 during the period, compared to a gain of HKD 11,276,000 in the previous year, indicating a significant negative shift[16] Operational Insights - The company is focusing on technology development, including a mobile application that supports advanced streaming video technology[74] - The company plans to enhance social marketing, programmatic marketing, and short video marketing strategies to boost advertising revenue as the consumer market recovers[80] - The board anticipates a downward trend in the Hong Kong property market but believes that investment properties will still generate rental income[80] - The company employed 1,189 staff as of September 30, 2020, a slight decrease from 1,197 staff on March 31, 2020[82] Shareholder Information - As of September 30, 2020, the total issued shares of the company were 2,397,917,898 shares[100] - Mr. Ma Chengfa holds 1,552,651,284 shares, representing 64.75% of the company's equity[92] - Mr. Ma Chengfa also has interests in Perfect Deal Trading Limited, which holds 149,870,000 shares, equating to 6.25% of the company's equity[91] - Mr. Ma Chengcai holds 95,916,000 shares, which is 4.00% of the company's equity[92] - Conyers Trustee Services (BVI) Limited, as trustee, holds 1,552,651,284 shares, representing 64.75% of the company's equity[96] - Ocean Greatness Limited and Marsun Holdings Limited each hold 1,552,651,284 shares, also representing 64.75% of the company's equity[96] - Magicway Investment Limited holds 1,222,941,284 shares, which is 51.00% of the company's equity[96] - Ever Holdings Limited holds 329,710,000 shares, representing 13.75% of the company's equity[96] - The total equity interests of Mr. Ma Chengfa and his spouse, Ms. Hong Meifang, amount to 1,702,521,284 shares, or 71.00% of the company's equity[96] - The ownership percentages are calculated based on the total issued shares as of September 30, 2020[100]

Financial Performance - The company reported a consolidated annual loss of HKD 11,567,000 for the year ended March 31, 2020, a decline of 114% compared to a profit of HKD 92,672,000 in the previous year, primarily due to decreased revenue from the printing media business and a drop in the fair value of investment properties in Hong Kong and Australia [7]. - The group’s main revenue source, advertising and circulation income from the "Oriental Daily," decreased to HKD 659,734,000, down HKD 75,228,000 or approximately 10.2% compared to the previous year [16]. - Digital media business revenues, including news content licensing and advertising, saw a decline, with advertising revenue at HKD 117,248,000, down HKD 5,145,000 or about 4.2% year-on-year [16]. - Total revenue from newspaper and advertising income was HKD 776,982,000, accounting for 94% of the group's total revenue, a decrease from HKD 857,355,000 in 2019 [144]. - The company reported a significant decrease in operating profit, with a loss of HKD 12,041 compared to a profit of HKD 94,973 in 2019 [189]. - The company reported a loss before tax of HKD 12,296,000 for the year ended March 31, 2020, compared to a profit of HKD 94,698,000 in 2019, indicating a significant decline in performance [197]. Assets and Liabilities - As of March 31, 2020, the company's net current assets were approximately HKD 875,103,000, an increase from HKD 821,337,000 in 2019, with cash and bank balances amounting to HKD 594,108,000 compared to HKD 524,039,000 in the previous year [8]. - Total assets decreased from HKD 1,896,544,000 in 2019 to HKD 1,803,690,000 in 2020, reflecting a reduction of approximately 4.9% [194]. - The company's total equity decreased from HKD 1,825,521,000 in 2019 to HKD 1,748,695,000 in 2020, a decline of approximately 4.2% [194]. - The group had significant receivables and interest amounting to HKD 223,922,000 as of March 31, 2020, which was about 12% of total assets [171]. - The group's accounts receivable amounted to approximately HKD 77,632,000, down from HKD 102,818,000 in 2019, with an expected credit loss provision of about HKD 3,700,000 [148]. Cash Flow - The company's net cash generated from operating activities was HKD 121,095,000 in 2020, a turnaround from a cash outflow of HKD 2,026,000 in 2019 [197]. - The company experienced a net cash inflow from investing activities of HKD 1,628,000 in 2020, compared to a cash outflow of HKD 458,000 in 2019 [197]. - Cash and cash equivalents increased to HKD 594,108,000 in 2020 from HKD 524,039,000 in 2019, representing a growth of about 13.3% [200]. Dividends - The company did not recommend the payment of a final dividend for the reporting year, compared to a final dividend of HKD 0.02 per share in 2019 [11]. - The company paid dividends of HKD 47,958,000 in 2020, a significant decrease from HKD 719,375,000 in 2019, indicating a reduction in shareholder returns [200]. Employee and Operational Metrics - As of March 31, 2020, the group employed 1,197 staff, down from 1,375 in the previous year [24]. - The employee turnover rate for the reporting year was approximately 12.2% of the total workforce [50]. - The company has implemented short-term measures to address revenue declines, including workforce reduction and cost control, while also distributing special bonuses totaling HKD 5,600,000 to frontline reporters [16]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance performance [91]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure [92]. - The company has adopted a set of corporate governance policies in compliance with the Hong Kong Stock Exchange's listing rules [91]. - The company has established a corporate social responsibility committee to address social and environmental issues [87]. Risk Management - The company has established a comprehensive risk management policy and system to effectively identify, assess, analyze, and mitigate risks [122]. - The board and audit committee conducted an annual review of the effectiveness of the risk management and internal control systems, confirming compliance with the relevant codes [128]. - The company has established a risk management committee to oversee the reporting and disclosure of inside information [122]. Digital Media and User Engagement - The website and mobile platform of on.cc recorded over 830 million total page views per month, indicating a strong user base globally [14]. - The digital media business has diversified, with the mobile application "Horse Racing Boss" becoming one of the most popular horse racing information apps in Hong Kong [14]. - "on.cc Money18" has become one of the most popular financial information platforms in Hong Kong, with a significant increase in reader numbers during the reporting year [15]. - The company has focused on enhancing video quality and live broadcasting capabilities for its online television platform, leading to a noticeable increase in new readers [15]. Environmental Policies - The company has implemented various environmental policies aimed at reducing waste and pollution, achieving expected targets in pollution reduction and resource utilization during the reporting year [42].