Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 614,479,742, a decrease of 13.5% compared to HKD 710,500,522 for the same period in 2019[4] - Gross profit for the same period was HKD 49,888,423, down from HKD 53,372,841, reflecting a decline of 6.9%[4] - The net profit for the period was HKD 19,519,687, a decrease of 15.5% from HKD 23,135,630 in the previous year[4] - Total comprehensive income for the period was HKD 27,389,692, significantly up from HKD 11,152,737 in the prior year, representing an increase of 145.5%[4] - Basic and diluted earnings per share were HKD 0.30, down from HKD 0.36 in the previous year, indicating a decline of 16.7%[6] - The company reported a gross profit of HKD 49,888,423 for the lending segment and HKD 6,560,683 for the trading segment[25] - Profit for the period decreased to HKD 19,500,000, a decline of 15.6% from HKD 23,100,000 in the previous year, primarily due to reduced gross profit and increased general and administrative expenses[62] Assets and Liabilities - Non-current assets decreased to HKD 12,776,069 from HKD 17,726,205, a reduction of 27.5%[8] - Current assets increased slightly to HKD 950,313,456 from HKD 949,272,146, showing a marginal growth of 0.1%[8] - Total liabilities decreased to HKD 130,058,132 from HKD 161,222,273, a decrease of 19.4%[10] - The company's equity increased to HKD 828,118,673 from HKD 800,728,981, reflecting a growth of 3.4%[10] - Total assets as of September 30, 2020, were HKD 963,089,525, slightly down from HKD 966,998,351 as of March 31, 2020[29] - Total liabilities as of September 30, 2020, were HKD 134,970,852, a decrease from HKD 166,269,370 as of March 31, 2020[29] Cash Flow and Financing - The company reported a net cash inflow from operating activities of HKD 6,128,878 for the six months ended September 30, 2020, compared to a net outflow of HKD 26,134,651 in the same period last year[14] - The total cash and cash equivalents at the end of the period were HKD 6,391,962, down from HKD 31,655,824 at the end of the same period last year[14] - The company incurred finance costs of HKD 6,572,375 during the period, compared to HKD 9,116,167 in the previous year[14] - The company completed the issuance of convertible bonds totaling HKD 500,000,000 to Yunnan Baiyao Group through its trustee, Shanghai International Trust Co., Ltd.[60] - The company plans to issue convertible bonds with a total amount of approximately HKD 500 million, with net proceeds of about HKD 498 million allocated for expanding CBD-related business[87] Operational Highlights - The company is primarily engaged in lending and trading activities, with a focus on expanding its financing services and product offerings[16] - The lending division reported a total loan amount of HKD 2,300,000, significantly down from HKD 67,600,000 in the previous year, with only 2 loans issued compared to 13 last year[70] - Revenue generated from the lending business was approximately HKD 43,300,000, contributing about 7.1% to the group's total revenue, while the segment profit accounted for 98.8% of the group's total segment profit[70] - Trade division generated revenue of approximately HKD 571.2 million, accounting for 92.9% of total group revenue[72] - The trading division successfully expanded its product categories to include sugar and personal care products[101] Expenses and Cost Management - The company reported a significant reduction in selling and distribution expenses, which fell to HKD 307,696 from HKD 622,134, a decrease of 50.6%[4] - General and administrative expenses increased to approximately HKD 23.5 million from HKD 20.8 million in the previous year, primarily due to rising employee costs and professional fees[73] - The cost of inventory recognized as an expense for the six months ended September 30, 2020, was HKD 564,591,319, down from HKD 657,127,681 in the previous year[34] Shareholder Information - The total number of shares as of September 30, 2020, was 6,448,152,160, with a par value of HKD 0.01 per share[59] - The company did not declare or propose any dividends for the six months ended September 30, 2020[41] - The company did not recommend the distribution of an interim dividend for the reporting period, consistent with the previous year[64] - Shareholders' equity increased from approximately HKD 800.7 million to HKD 828.1 million, a rise of 3.4%[78] Credit and Receivables - The average credit period for trade receivables was 90 days as of September 30, 2020[42] - The total receivables, including loans and interest, were HKD 530,638,766 as of September 30, 2020, slightly down from HKD 532,924,004 as of March 31, 2020[45] - The group reported no overdue or impaired receivables as of the reporting date, indicating stable credit quality[51] - The average loan term for secured and unsecured loans provided to customers is between 3 to 5 years, with fixed annual interest rates ranging from 1% to 2.4%[47] Governance and Compliance - The company has complied with the corporate governance code during the reporting period, with some deviations noted[116] - The company has established a nomination committee to review board composition and recommend appointments, consisting of two executive directors and three independent non-executive directors[124] - The remuneration committee, which includes two executive directors and three independent non-executive directors, reviews director remuneration and group compensation policies[125] - The audit committee, comprising three independent non-executive directors, has reviewed the group's unaudited interim financial statements for the reporting period[127]

Financial Performance - For the fiscal year ending March 31, 2020, the company's revenue was HKD 1,162,200,000, an increase of approximately 27.7% compared to HKD 910,100,000 for the previous year[5] - Gross profit for the same period was HKD 108,100,000, up about 24.3% from HKD 87,000,000, with a gross margin of 9.3% compared to 9.6% in the previous year[5] - Profit for the year increased to HKD 49,600,000, a 12.0% rise from HKD 44,300,000 in the previous year, primarily due to increased revenue and profit from the lending segment[5] - The lending segment generated revenue of approximately HKD 89,700,000, up from HKD 74,100,000 in the previous year[14] - The trade segment in China generated approximately HKD 860,000,000 in revenue, an increase from HKD 773,900,000, while the Hong Kong trade segment generated approximately HKD 212,500,000, up from HKD 62,100,000[15] - The increase in revenue was mainly driven by higher loan demand from clients in the lending segment and increased procurement orders from trade clients[5] - Basic and diluted earnings per share for the year ended March 31, 2020, were HKD 0.77, slightly up from HKD 0.76 in the previous year[22] Lending Segment - The total amount of loans in the lending segment was HKD 82,700,000, down from HKD 231,200,000 in the previous year, with a total of 18 loans issued compared to 29 in the previous year[14] - The weighted average annual percentage rate for loans was 18.2%, slightly down from 18.4% in the previous year[14] - The company plans to continue providing new loans and renewing existing loans, expecting the lending division to remain a major source of revenue and profit in the coming years[46] - The company has established clear credit policies and monitoring measures to ensure the recovery of loans and manage credit risk effectively[9] Expenses and Taxation - The group's general and administrative expenses for the year ended March 31, 2020, were approximately HKD 41.3 million, an increase of 9.5% compared to HKD 37.7 million for the year ended March 31, 2019[19] - Financial expenses for the year ended March 31, 2020, amounted to HKD 5 million, remaining consistent with the previous year's level[20] - Income tax expenses for the year ended March 31, 2020, were HKD 10.5 million, up from HKD 7.6 million in the previous year, primarily due to increased profits from the bond issuance segment[21] Assets and Liabilities - Total assets increased by 11.3% to approximately HKD 967 million, driven by increases in right-of-use assets, receivables, inventory, and amounts due from a shareholder[26] - The current ratio (current assets/current liabilities) was 5.89 times as of March 31, 2020, down from 8.3 times the previous year[29] - The debt-to-asset ratio (total liabilities/total assets) was 17% as of March 31, 2020, compared to 12% the previous year[29] Corporate Governance - The company has maintained high standards of corporate governance, adhering to the corporate governance code as of March 31, 2020[116] - The board consists of nine members, including executive, non-executive, and independent non-executive directors[122] - The company has a clear structure for the separation of roles between the chairman and the CEO, with the roles currently held by different individuals[117] - The company has established three committees: the Audit Committee, the Nomination Committee, and the Remuneration Committee, each with specific responsibilities outlined in the corporate governance code[135] Shareholder Information - As of March 31, 2020, the total number of issued ordinary shares was 6,448,152,160 shares, unchanged from 2019[31] - The company has a structured process for shareholders to propose resolutions at general meetings, ensuring transparency and shareholder rights[176] - The company allows shareholders to nominate individuals for directorships according to its articles of association, with the election procedures published on the company’s website[142] Risk Management - The company has implemented a risk management framework to identify, assess, manage, and report risks, including strategic, credit, operational, market, liquidity, legal, and regulatory risks[164] - The internal audit function operates independently and assesses the effectiveness of the risk management and internal control systems[167] - The audit committee is responsible for reviewing the effectiveness of the internal control system and ensuring compliance with relevant regulations[161] Legal and Regulatory Matters - The company has faced legal challenges regarding its subsidiaries, impacting the consolidation of certain financial results[182] - The independent auditor expressed concerns about the adequacy of disclosures related to related party transactions due to the loss of control over deconsolidated subsidiaries[192] Environmental Commitment - The company is committed to complying with environmental laws and regulations, implementing effective environmental policies to reduce greenhouse gas emissions[178]

Financial Performance - The company reported a revenue of HKD 710.5 million for the six months ended September 30, 2019, compared to HKD 657.1 million for the same period in 2018, representing an increase of approximately 8.5%[4] - Gross profit for the same period was HKD 53.4 million, up from HKD 42.2 million year-on-year, indicating a growth of about 26.5%[4] - The net profit attributable to the owners of the company was HKD 23.1 million, compared to HKD 18.6 million in the previous year, reflecting a year-on-year increase of approximately 24.5%[5] - The total comprehensive income for the period was HKD 11.2 million, significantly higher than HKD 2.2 million in the prior year, marking an increase of around 409%[4] - Basic and diluted earnings per share increased to HKD 0.36 from HKD 0.34, representing a growth of approximately 5.9%[5] - The pre-tax profit for the six months ended September 30, 2019, was HKD 29,666,377[22] - Profit for the six months increased to approximately HKD 23,100,000, a rise of about 24.2% from HKD 18,600,000 in the previous interim period[58] Assets and Liabilities - Total assets as of September 30, 2019, amounted to HKD 1,022.4 million, compared to HKD 863.2 million as of March 31, 2019, showing an increase of about 18.5%[7] - The total assets as of September 30, 2019, amounted to HKD 1,041,175,891, an increase from HKD 868,645,961 as of March 31, 2019[28] - The total liabilities as of September 30, 2019, were HKD 265,068,504, compared to HKD 103,691,311 as of March 31, 2019[29] - The company's total equity increased to HKD 776.1 million from HKD 765.0 million, reflecting a growth of approximately 1.5%[8] - The company reported a significant increase in inventory to HKD 18.8 million from HKD 5.5 million, indicating a rise of approximately 241%[7] - The company’s financial liabilities, including bonds and lease liabilities, totaled HKD 78.2 million, compared to HKD 68.4 million in the previous period, an increase of about 14%[7] Cash Flow - The net cash used in operating activities for the six months ended September 30, 2019, was HKD (26,134,651), a significant improvement compared to HKD (102,495,229) for the same period in 2018[12] - The net cash used in investing activities amounted to HKD (3,837,034), slightly higher than HKD (3,458,848) in the previous year[12] - The net cash used in financing activities increased to HKD (9,116,167) from HKD (1,925,000) in the prior period[12] - The total decrease in cash and cash equivalents was HKD (39,087,852), which is an improvement from HKD (107,879,077) in the previous year[12] - The cash and cash equivalents at the end of the period stood at HKD 31,655,824, compared to HKD 19,676,157 at the same time last year[12] Business Segments - The group operates in two main segments: lending services and trading of goods and commodities, focusing on resource allocation and performance evaluation[21] - The segment profit for the lending division was HKD 32,820,202, while the trading division reported a segment profit of HKD 2,621,746, leading to a total segment profit of HKD 35,441,948[22] - The trading segment generated revenue of approximately HKD 536.7 million in China and HKD 130.2 million in Hong Kong for the six months ended September 30, 2019, compared to HKD 271.3 million and HKD 24.5 million respectively in the same period of 2018, representing increases of 97.8% and 431.4%[67] - The lending division reported total loans of HKD 67,600,000, down from HKD 133,600,000 in the previous year, with a total of 13 loans issued compared to 17 in the previous year[65] - The trading division has expanded its product categories to include sugar and personal care products, and is now engaged in international trade of CBD isolate powder[103] Investments and Financing - The company entered into a subscription agreement with Yunnan Baiyao Group Co., Ltd. to issue convertible bonds totaling HKD 730,000,000[54] - Upon full conversion of the convertible bonds, the company will issue approximately 2,829,457,364 shares, representing about 43.88% of the existing issued share capital[55] - The net proceeds from the subscription are intended for the development of industrial hemp and CBD-related businesses, research and development, investments, acquisitions, and other opportunities[55] - The company issued unsecured corporate bonds with a total principal amount of HKD 70,000,000, with an annual interest rate of 5.5%[48] - The company completed the sale of 60% equity in a subsidiary for HKD 100,000, along with a 30% share of compensation from a civil lawsuit related to mining assets[84] Corporate Governance - The company has complied with the corporate governance code, with the exception of the chairman and CEO roles being held by the same individual since January 23, 2017[115] - The board diversity policy aims to ensure sustainable and balanced development by considering various diversity aspects in the selection of board members[123] - The nomination committee is composed of two executive directors and three independent non-executive directors, focusing on board composition and succession planning[124] - The remuneration committee reviews director remuneration and the group's compensation policies, consisting of two executive directors and three independent non-executive directors[125] - The audit committee reviews accounting standards and practices, including discussions on audit, internal control, risk management, and financial reporting[127] Future Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[4] - The group is exploring opportunities in the entire industrial hemp supply chain, including cultivation, extraction, and product development, to capitalize on the growing demand for CBD[72] - The company plans to hold a special general meeting to obtain independent shareholder approval for the subscription agreement[54] - The company is actively seeking suitable investment opportunities to diversify its business portfolio[104] - The lending division is expected to continue providing a steady cash inflow, adapting to market conditions and monetary policies[102]

Financial Performance - The group's revenue for the year ended March 31, 2019, was HKD 910.1 million, an increase of approximately 18.6% compared to HKD 767.6 million for the year ended March 31, 2018[6]. - Gross profit for the year ended March 31, 2019, was HKD 87 million, up 55.3% from HKD 56 million in the previous year, with a gross margin of 9.6% compared to 7.3%[6]. - The group's profit increased to HKD 44.3 million for the year ended March 31, 2019, compared to a loss of HKD 1.5 million in the previous year[7]. - Revenue for the year ended March 31, 2019, was HKD 910,081,910, representing a 18.5% increase from HKD 767,607,149 in 2018[194]. - Gross profit for the same period was HKD 87,004,954, up from HKD 56,039,212, indicating a significant improvement in profitability[194]. - The net profit for the year was HKD 44,267,894, a turnaround from a loss of HKD 1,493,920 in the previous year[194]. - Total comprehensive income for the year was HKD 32,007,670, compared to HKD 11,577,892 in 2018, reflecting strong overall performance[194]. - Basic and diluted earnings per share increased to HKD 0.76 from a loss of HKD 0.03 in the prior year[196]. Revenue Breakdown - The lending division generated revenue of approximately HKD 74.1 million for the year ended March 31, 2019, up from approximately HKD 46.7 million in the previous year[14]. - The trading division in China generated revenue of approximately HKD 773.9 million, an increase from HKD 714.4 million in the previous year, selling 103,130 tons of edible oil and 28,209 tons of sugar[15]. - The trading division in Hong Kong generated revenue of approximately HKD 62.1 million, significantly up from HKD 6.5 million in the previous year, selling 379,877 units of cosmetics and 112,926 units of personal care products[15]. Expenses and Liabilities - General and administrative expenses for the year ended March 31, 2019, were approximately HKD 37,700,000, a decrease of 26.1% compared to HKD 51,000,000 for the previous year due to cost control measures implemented by the company[19]. - Financial expenses incurred as of March 31, 2019, amounted to HKD 4,650,000, remaining similar to the previous year, primarily related to interest from bonds issued in prior years[20]. - Income tax expenses for the year ended March 31, 2019, were HKD 7,600,000, an increase from HKD 1,300,000 in the previous year, mainly due to an increase in the company's profits[21]. - The total amount of loans in the lending division was HKD 231.2 million, down from HKD 301.6 million in the previous year[12]. - The average annual percentage rate for loans ranged from 12.0% to 28.8%, with a weighted average of 18.4% compared to 17.3% in the previous year[12]. Assets and Equity - Total equity increased by 37.4% to approximately HKD 765,000,000 as of March 31, 2019, from about HKD 556,600,000, primarily due to a share issuance that raised approximately HKD 178,800,000[25]. - Cash and cash equivalents as of March 31, 2019, were HKD 74,700,000, down from HKD 144,000,000 the previous year[27]. - The current ratio (current assets/current liabilities) improved to 8.3 times from 4.0 times the previous year, indicating a strong liquidity position[28]. - Total assets as of March 31, 2019, amounted to HKD 863,187,842, an increase from HKD 731,841,245 in 2018[199]. - Current liabilities decreased to HKD 103,691,311 from HKD 181,108,047, improving the company's liquidity position[199]. Corporate Governance - The company is committed to corporate governance practices, including the establishment of audit, nomination, and remuneration committees[82]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange's listing rules for the year ending March 31, 2019[99]. - The roles of Chairman and CEO are currently held by the same individual, which the board believes benefits the company's business outlook and management[100]. - Independent non-executive directors are required to stand for re-election at least once every three years, ensuring adequate governance measures are in place[101]. - The company has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee, each with specific responsibilities outlined in governance codes[117]. Risk Management and Audit - The company has implemented a risk management framework to identify, assess, manage, and report risks, including strategic, credit, operational, market, liquidity, legal, and regulatory risks[147]. - The audit committee reviewed the effectiveness of the internal control system and found no significant control failures, although some operational improvements were recommended[147]. - The company has established an internal audit function, independent of daily operations, to evaluate risk management and internal control systems[148]. - The audit committee is responsible for reviewing the financial information and overseeing the financial reporting system and risk management[141]. Shareholder Information - The company issued a total of 1,000,000,000 shares at a subscription price of HKD 0.18 per share, completing the subscription agreement on November 22, 2018[29]. - The company raised approximately HKD 180 million from a share subscription agreement, with a net amount of HKD 178.8 million allocated for various business developments[31]. - The subscription price of HKD 0.180 per share was at a discount of about 1.207% compared to the average closing price of HKD 0.1822 over the five trading days prior to the subscription agreement[69]. - Major shareholders, including Yunnan Baiyao Holdings, controlled 1,908,025,360 shares, representing 29.59% of the issued share capital as of March 31, 2019[75]. Employee Compensation - Total employee compensation for the year ended March 31, 2019, was approximately HKD 9,900,000, an increase from HKD 6,100,000 in the previous year[42]. - The Compensation Committee reviewed and recommended salary increases for all directors and senior management for the fiscal year ending March 31, 2019, considering factors such as comparable company salary levels and performance-based compensation[119]. Miscellaneous - The company has no significant capital commitments or contingent liabilities as of March 31, 2019[39][40]. - The company has not pledged any assets as collateral for general bank financing as of March 31, 2019[39]. - The company is actively seeking suitable investment opportunities to diversify its business portfolio[47]. - The company has no outstanding bank borrowings as of March 31, 2019[57].