CONTENTS 目錄 Overview 概覽 | 02 | Corporate Information | 127 | Directors' Report | | --- | --- | --- | --- | | | 公司資料 | | 董事局報告書 | | 04 | Group Profile | 136 | Independent Auditor's Report | | | 集團簡介 | | 獨立核數師報告書 | | 05 | Group Structure | 142 | Consolidated Statement of | | | 集團架構 | | Profit or Loss | | | | | 綜合損益表 | | 08 | Financial and Statistical | | | | | Highlights | 143 | Consolidated Statement of | | | 財務及統計摘要 | | Profit or Loss and Other | | | | | Comprehensive Income | | 14 | Ten-year Financial Summ ...

Financial Performance - The group's revenue for the year ended March 31, 2025, was HKD 6,851,300,000, an increase of 5.8% compared to the previous year[5]. - Gross profit margin improved by 96 basis points to 29.4%, up from 28.5% in the previous year[5][6]. - Profit before finance costs and share of results of associates increased by 9.9% to HKD 359,500,000[5][7]. - The battery business revenue was HKD 4,838,600,000, a growth of 6.8%, driven by increased demand for cylindrical and button batteries[10]. - The rechargeable battery business revenue rose by 18.5% to HKD 432,400,000, supported by higher demand from industrial customers[11]. - The audio business revenue remained stable at HKD 1,580,300,000, with KEF sales increasing by 7.0%[12]. - The company reported a net profit of HKD 139,299 thousand for the fiscal year 2025, a significant recovery from a net loss of HKD 341,860 thousand in 2024[27]. - The operating profit for the fiscal year 2025 was HKD 516,918,000, compared to a loss of HKD 13,788,000 in 2024, indicating a significant turnaround[43]. - The company reported a pre-tax profit of HKD 211,902,000 for 2025, a recovery from a pre-tax loss of HKD 295,567,000 in 2024[50]. - The company reported a basic earnings per share of HKD 0.029 for 2025, recovering from a loss per share of HKD 0.401 in the previous year[26]. Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.01 per share, totaling an annual dividend of HKD 0.025 per share, with a payout ratio of 86.2%[9]. - Total dividends declared for the year amounted to HKD 22,757,000, with a proposed final dividend of HKD 0.010 per share, consistent with the previous year[53]. - The board proposed a final dividend of HKD 0.01 per share, maintaining the same level as in 2024, with total dividend payments for the year amounting to HKD 0.025 per share, up from HKD 0.01 in 2024[68]. - The company repurchased a total of 7,965,000 shares at an average price of HKD 0.60, totaling approximately HKD 4.796 million, which has been deducted from retained earnings[70]. Expenses and Financial Management - Administrative expenses increased by 5.4% to HKD 855,900,000, mainly due to R&D costs for the new generation of rechargeable batteries[6]. - The company incurred financial costs of HKD 224,337,000 in 2025, down from HKD 248,541,000 in 2024, showing a reduction of approximately 9.7%[49]. - The company recognized a loss of HKD 58,903,000 in other expenses for 2025, compared to a loss of HKD 9,449,000 in 2024, indicating increased financial strain[48]. - The company has implemented a strategy to manage foreign exchange risk through forward contracts and local currency borrowings, minimizing exposure to currency fluctuations[67]. Investments and Asset Management - The company recognized a fair value loss of HKD 267.8 million on its investment in Xuan Yu Technology, which was fully impaired as of March 31, 2025[15]. - The pre-tax contribution from other industrial investments increased from HKD 34.1 million to HKD 44.7 million, primarily due to improved performance from Meilong and Zhifu Technology[13]. - The company plans to accelerate the divestment of non-core assets, including vacant land and idle factories in China, to strengthen its net asset position and enhance financial flexibility[24]. - The company has developed proprietary nickel-zinc battery technology for industrial energy storage applications, addressing the growing demand in the sector[19]. - The fair value of investment properties decreased to HKD 418,246,000 as of March 31, 2025, down from HKD 419,998,000, reflecting a reduction in value[58]. Market and Strategic Initiatives - The company plans to enhance production capacity in Southeast Asia to supply the U.S. market while optimizing its supply chain to minimize tariff impacts[22]. - Management will actively monitor tariff risks and adjust strategies to maintain profitability amid changing macroeconomic conditions[21]. - The company aims to focus on product development and expand its global footprint through partnerships with well-known retailers[21]. - The company announced a significant investment plan of approximately $150 million to establish a state-of-the-art nickel-zinc battery manufacturing plant and advanced R&D center in the Johor-Singapore Economic Zone by February 2025[23]. - The company signed a strategic cooperation framework agreement with the Dongguan Investment Promotion Bureau in March 2025, establishing Dongguan as a comprehensive development base for sustainable energy solutions in the industrial energy storage sector in China[23]. - The company achieved a major industry milestone by becoming the first Asian company to join the Zinc Battery Initiative under the International Zinc Association, highlighting its technological leadership and market advantage in the global sustainable battery ecosystem[23]. Compliance and Governance - The auditors issued reports on the financial statements for the years ended March 31, 2025, and 2024, with no reservations or emphasis of matter[31]. - The company has complied with the corporate governance code, except for the separation of the roles of chairman and CEO, which are held by the same individual[71]. - The financial reports submitted to the Hong Kong Companies Registry comply with the relevant regulations and standards[31]. Financial Position and Ratios - As of March 31, 2025, the group's net assets amounted to HKD 2,138.1 million after accounting for the fair value loss on Xuan Yu Technology[15]. - The debt-to-equity ratio improved to 0.98 from 1.04 in the previous year, while the current ratio decreased to 0.96 from 1.00[16]. - The company's current liabilities exceeded current assets by approximately HKD 159 million[30]. - The company's total liabilities included short-term bank loans of HKD 1,503,249,000, down from HKD 1,555,333,000 in 2024[65]. - The group's current liabilities net worth increased significantly to HKD 159.4 million from HKD 17.5 million in 2024, primarily due to the reclassification of non-current loans[67]. - The company's total receivables, after deducting non-current deposits, amounted to HKD 1,254,186,000, a decrease from HKD 1,291,816,000 in the previous year[62]. - The company's total assets decreased to HKD 3,761,805 thousand in 2025 from HKD 3,923,823 thousand in 2024, while total liabilities also decreased, improving the company's net asset position[28][29].

Revenue and Profitability - The group's revenue increased by 7.7% to HKD 3,535,600,000 for the six months ended September 30, 2024[2]. - Battery business revenue rose by 8.8% to HKD 2,780,300,000, driven by a sales increase of HKD 233,400,000 in disposable batteries[10]. - The gross profit margin improved from 27.4% to 29.4%, with gross profit rising from HKD 898,300,000 to HKD 1,038,800,000[4]. - The company's profit attributable to equity shareholders surged by 648.3% to HKD 26,100,000, with earnings per share at HKD 2.86 compared to HKD 0.38 in the previous year[2][8]. - The unaudited consolidated profit for the period was HKD 81.7 million, compared to HKD 39.9 million in the same period last year, representing a growth of 104.5%[27]. - The basic earnings per share for the period was HKD 2.86, significantly up from HKD 0.38 in the previous year[27]. - The company recorded a pre-tax profit of HKD 73,729,000 for the six months ended September 30, 2024, compared to HKD 213,438,000 for the same period in 2023, indicating a significant decrease[50]. Dividends - The board declared an interim dividend of HKD 0.015 per share, compared to no dividend in the previous year[2]. - The final dividend for the year ending March 31, 2024, was HKD 0.01 per share, amounting to approximately HKD 9,155,000, paid on September 20, 2024[83]. Expenses and Costs - Distribution expenses rose by 6.2% to HKD 431,600,000, primarily due to increased global shipping costs[4]. - Administrative costs increased by 8.0% to HKD 468,400,000, mainly due to rising operational and R&D costs for the new generation of rechargeable batteries[5]. - The company incurred other expenses totaling HKD 10,646,000, compared to HKD 5,906,000 in the prior period, reflecting an increase of approximately 80.5%[47]. - Total financial costs amounted to HKD 117,175,000, slightly down from HKD 120,583,000, a decrease of approximately 2.0%[49]. Assets and Liabilities - As of September 30, 2024, total assets amounted to HKD 3,752,976,000, an increase from HKD 3,678,862,000 as of March 31, 2024, reflecting a growth of approximately 2%[31]. - The group's current liabilities exceeded current assets by approximately HKD 426.2 million, primarily due to the reclassification of non-current loans as current liabilities[21]. - Current liabilities increased to HKD 4,179,165,000 from HKD 3,696,376,000, indicating a rise of approximately 13%[36]. - The company's net asset value as of September 30, 2024, was HKD 2,188,516,000, compared to HKD 2,154,530,000 as of March 31, 2024, representing an increase of about 1.6%[33]. - The total equity attributable to owners of the company decreased to HKD 1,104,077,000 from HKD 1,204,730,000, a decline of about 8.3%[33]. Investments and Financial Instruments - The fair value of the investment in Xuan Yu Technology Group was assessed at HKD 92,300,000 as of September 30, 2024, with a recognized fair value loss of HKD 175,500,000 during the period[16]. - The fair value of financial assets classified as equity instruments at fair value through profit or loss was HKD 538,000 as of September 30, 2024, down from HKD 1,267,000 in March 2024[70]. - The fair value of financial assets and liabilities measured at fair value was HKD 92,300 thousand, a significant decrease from HKD 267,825 thousand as of March 31, 2024[74]. - The company recognized a government grant of HKD 27,788,000, up from HKD 19,185,000, representing an increase of approximately 44.8% year-over-year[46]. Business Segments - The audio business revenue grew by 14.7% to HKD 510,400,000, reflecting successful strategies to enhance market share and customer engagement[2][11]. - The audio segment generated revenue of HKD 755,388,000, up from HKD 729,458,000, reflecting a growth of about 3.5% year-over-year[44]. - The battery segment reported revenue of HKD 2,780,247,000, compared to HKD 2,554,262,000, marking an increase of approximately 8.8%[44]. Debt and Financing - As of September 30, 2024, the group's net bank loans rose by HKD 148.4 million to HKD 2,397.3 million, with a debt-to-equity ratio of 1.10, up from 1.04 on March 31, 2024[19]. - The issuance of perpetual bonds amounted to USD 11,000,000 (approximately HKD 85,400,000), with an initial distribution rate of 9.5% for the first year[66]. - The group reported unsecured short-term bank loans and commercial credit of HKD 1,578,963,000 as of September 30, 2024, slightly up from HKD 1,555,333,000 in March 2024[63]. Market Outlook and Strategy - The group anticipates stable demand for battery products, while the demand for electronic and audio products may grow slowly due to ongoing global economic challenges[22]. - The opening of KEF's experience center in London is expected to enhance demand for KEF speakers, supported by strong product plans and expanded distribution channels[22]. - The group plans to accelerate the sale of non-core assets, including vacant land and buildings, to strengthen its capital structure and liquidity[24]. - The group is increasing investments in rechargeable energy storage solutions for large data centers and smart cities, focusing on the development of next-generation nickel-zinc batteries[22]. Related Party Transactions - The company recognized related party transactions involving the subscription of perpetual bonds amounting to HKD 7,767 thousand and HKD 19,415 thousand from directors[80]. - The group sold goods to associates amounting to HKD 133,437,000 for the six months ended September 30, 2024, compared to HKD 154,704,000 in the same period of 2023, representing a decrease of approximately 13.7%[81]. - Purchases from associates totaled HKD 258,455,000 for the six months ended September 30, 2024, slightly up from HKD 258,014,000 in the previous year, indicating a marginal increase of 0.2%[81]. - Management fee income from associates was HKD 1,889,000 for the six months ended September 30, 2024, down from HKD 2,741,000 in the same period of 2023, reflecting a decrease of approximately 30.9%[81]. Governance and Compliance - The company has complied with the corporate governance code, with the roles of chairman and CEO being separated, although the current structure is deemed appropriate by the board[86]. - The audit committee, consisting of four independent non-executive directors and one non-executive director, reviewed the unaudited consolidated financial statements for the six months ended September 30, 2024[87].

Gold Peak 60th Anniversary Over the span of 60 years, Gold Peak has continuously thrived as a leading force in the realm of power and sound, ceaselessly pushing the boundaries of innovation and development. Our dedication extends beyond customer satisfaction, as we are deeply commited to nurturing a sustainable lifestyle and implementing eco-friendly manufacturing practices for the goodwill of our planet. 金山科技六十週年 60年以來，金山科技作為電池 和音響領域的領導者，一直持續 推動創新與發展。我們的專注不限 於令顧客稱心滿意，更致力培養 可持續生活方式，落實環保生產， 為保護地球出一分力。 Batery ...

Financial Performance - The company's revenue for the fiscal year ending March 31, 2024, was HKD 6,476,000,000, a decrease of 1.6% compared to HKD 6,581,000,000 in the previous year[3][24]. - The profit attributable to the company's owners was a loss of HKD 367,300,000, compared to a profit of HKD 36,900,000 in the previous year[6][11]. - The company reported a full-year loss of HKD 341,860,000 for the year ending March 31, 2024, compared to a profit of HKD 86,237,000 for the previous year[25]. - The group reported a loss attributable to owners of the company of HKD 367,329,000 for the year, compared to a profit of HKD 36,930,000 in the previous year, resulting in a basic loss per share of HKD 0.401[97]. - The company reported a basic loss per share of HKD 0.401, compared to earnings of HKD 0.04 per share in the previous year[6][24]. - The company recorded a total income of HKD 150,708,000 for the year ending March 31, 2024, down from HKD 263,400,000 in the previous year, indicating a decline of approximately 42.8%[147]. Cost and Expenses - Gross profit margin improved from 26.6% to 28.5%[2]. - The operating profit before financial costs and share of associates was HKD 327,100,000, up from HKD 167,600,000 in the previous year[3][10]. - Distribution costs increased by 2.0% to HKD 845,700,000, while administrative expenses decreased by 6.3% to HKD 812,100,000[8]. - Other operating expenses decreased significantly by HKD 141,400,000 to HKD 9,400,000, mainly due to one-time impairment losses in the previous year[9]. - The group's financial costs increased to HKD 248,541,000 in the year ended March 31, 2024, from HKD 205,293,000 in 2023[118]. Business Segments - Sales in the battery business decreased by 1.7%, amounting to a reduction of HKD 83,000,000, primarily due to declines in Europe and Asia[7][12]. - The battery business revenue was HKD 840,900,000, a decline of 3.4% year-over-year, while the gross profit margin improved from 21.2% to 24.2%[37][38]. - The sound division generated revenue of HKD 1,580,293,000, while the battery division generated HKD 4,896,113,000, showing a decrease in both segments compared to the previous year's figures of HKD 1,601,954,000 and HKD 4,979,072,000 respectively[94]. Investments and Financial Position - The company incurred a loss of HKD 408,700,000 from its investment in Xuan Yu Technology, including an impairment loss of HKD 386,300,000, compared to a profit of HKD 17,800,000 last year[35][45]. - The company plans to closely monitor the financial situation of its associate, Xuan Yu Technology, which is facing financial difficulties and exploring restructuring options[18][23]. - The group has approximately HKD 2,488,000,000 in available bank standby credit to meet its financial obligations in the foreseeable future[81]. - The group’s total assets decreased from HKD 4,408,605,000 to HKD 3,923,823,000 year-over-year[26]. - The net asset value dropped from HKD 2,722,762,000 to HKD 2,154,530,000[27]. Market Conditions and Future Outlook - The company anticipates ongoing challenges due to global economic conditions, including high inflation and interest rates, which may impact consumer spending on electronic and audio products[21]. - High interest rates are anticipated to significantly increase the group's financing costs, prompting the development of alternative financing channels for future business expansion[72]. - The recent strengthening of the USD against the RMB may alleviate some cost pressures and enhance pricing flexibility[48]. - The company plans to focus on producing consumer batteries and promoting its GP brand products in the global consumer market[49]. Regulatory and Compliance - The group has assessed the impact of pillar two tax legislation on its operations, with all jurisdictions meeting transitional country-by-country reporting safe harbor standards except for Poland and Vietnam[61]. - The group is subject to the OECD's Pillar Two model rules, with relevant legislation enacted in several jurisdictions, including Germany, Japan, and the UK, effective from January 1, 2024[85]. - The group has not recognized any tax risks related to the Pillar Two legislation as it has not yet come into effect for the fiscal year ending March 31, 2024[85]. Shareholder Information - The company proposed a final dividend of HKD 0.01 per share for the year ending March 31, 2024, compared to no dividend in the previous year[143]. - The company will suspend share transfer registration from September 11, 2024, to September 12, 2024, to determine shareholders eligible for the final dividend[152]. - All transfers must be submitted to the company's share transfer registration office by September 10, 2024, at 4:30 PM to qualify for the final dividend[152].

Financial Performance - The group's revenue for the six months ended September 30, 2023, was HKD 3,284,000,000, a decrease of 2.6% compared to HKD 3,373,000,000 in the same period last year[9]. - Profit for the period was HKD 39,900,000, down 64% from HKD 110,900,000 in the previous year[9]. - Profit attributable to the company's owners was HKD 3,500,000, a decrease of 95.4% from HKD 75,700,000 in the same period last year[9]. - The earnings per share were HKD 0.38, compared to HKD 8.27 in the previous year[12]. - Other income decreased by 68.3% to HKD 73,500,000 from HKD 231,500,000 in the previous year, with no one-time gains recorded in the current period[13]. - The gross profit margin improved from 25.5% to 27.4%, despite the decline in revenue, resulting in a gross profit increase of 4.6% to HKD 898,300,000[10][11]. - The revenue for the battery business in the first half of the year was SGD 438.9 million, a decrease of 5.5% compared to the same period last year[20]. - KGG Group's revenue was SGD 125.3 million, down 4.3% from SGD 130.9 million in the same period last year[20]. - The professional speaker manufacturing business saw a revenue increase of 13.7%, primarily due to a 20.1% increase in sales in North and South America[20]. - The company's pre-tax profit for the six months was HKD 73,729,000, down 43.3% from HKD 130,120,000 in the previous year[59]. Expenses and Costs - Administrative expenses decreased by 6.6% to HKD 433,500,000, primarily due to workforce reduction and cost control measures[13]. - Financial costs increased by 41.5% to HKD 120,600,000, reflecting rising global interest rates[14]. - Total financial costs rose to HKD 120,583,000, up 41.5% from HKD 85,221,000 in the previous year[58]. - The company incurred other expenses and losses totaling HKD 5,906,000, a decrease of 88.5% from HKD 51,331,000 in the prior period[57]. - The company invested approximately HKD 33,730,000 in property, plant, and equipment, a significant reduction from HKD 159,445,000 in the same period last year[63]. Cash Flow and Assets - Cash generated from operating activities was HKD 99,521, compared to a cash outflow of HKD 6,188 in the previous year[41]. - Total assets decreased to HKD 3,494,153 from HKD 3,859,460 as of March 31, 2023[38]. - The company reported a cash and cash equivalents balance of HKD 914,756, down from HKD 1,277,888 at the beginning of the period[41]. - The company's total assets as of September 30, 2023, were HKD 2,722,762,000, compared to HKD 3,217,552,000 a year earlier, indicating a decrease of approximately 15.4%[42]. - Accounts receivable from customer contracts increased to HKD 1,153,755 thousand as of September 30, 2023, up from HKD 986,573 thousand on March 31, 2023, reflecting a growth of approximately 17%[66]. - The aging analysis of accounts receivable shows that amounts overdue by 0-60 days rose to HKD 1,024,241 thousand, a 35% increase from HKD 760,577 thousand[66]. Liabilities and Equity - The group's net bank loans increased by HKD 77 million to HKD 2.317 billion, with a debt-to-equity ratio of 0.92 as of September 30, 2023[22]. - The group has 86% of its bank loans classified as current liabilities, indicating a significant portion due within one year[22]. - Current liabilities increased to HKD 4,465,143 from HKD 4,236,125, resulting in a negative net current liabilities of HKD 970,990[39]. - The company's retained earnings decreased to HKD 982,304,000 from HKD 1,028,285,000 year-over-year, a reduction of approximately 4.5%[42]. - The company's total liabilities decreased to HKD 2,782,919 thousand from HKD 2,474,487 thousand, indicating a reduction of approximately 11%[69]. Dividends and Shareholder Information - The board does not recommend the payment of an interim dividend for the six months ended September 30, 2023[12]. - The company paid dividends to non-controlling interests amounting to HKD 43,796,000 during the reporting period[42]. - Major shareholders as of September 30, 2023, included Tu Meimei with 10.75% and Wu Qianhui with 5.34% of the issued shares[90]. - The total number of issued and fully paid ordinary shares was 915,475 thousand shares, with a total value of 998,666 thousand HKD[77]. Governance and Compliance - The company has complied with the corporate governance code as per the listing rules, except for the separation of roles between the Chairman and CEO, which is held by Mr. Luo Zhongrong[94]. - All directors have adhered to the standards set forth in the securities trading code during the six-month period ending September 30, 2023[95]. - An audit committee has been established to review and monitor the group's financial reporting and internal controls, consisting of 4 independent non-executive directors and 1 non-executive director[97]. - The board of directors includes a mix of executive and independent non-executive members, ensuring a balanced governance structure[98].

Financial Performance - The turnover for the financial year 2022-2023 amounted to HK$6.6 billion[20] - The total revenue for the financial year 2022-2023 amounted to HK$6.581 billion, a decrease of 7.9% from HK$7.146 billion in 2021-2022[31] - The total profit for the year was HK$36.9 million, down 76.5% from HK$156.9 million in the previous year[31] - Earnings per share decreased to 4.0 Hong Kong cents, compared to 19.8 Hong Kong cents in 2022, reflecting a decline of 79.8%[31] - Profit before taxation fell to HK$100.4 million, down from HK$264.9 million, indicating a decrease of about 62.1%[47] - The Group's total profit attributable to owners decreased from HK$156.9 million in FY2022 to HK$36.9 million in FY2023[102] - The Group's revenue for FY2023 was HK$6,581.0 million, a decline of HK$480.6 million or 6.8% compared to FY2022[94] - The Group's profit margin has been under relentless pressure due to prevailing economic headwinds[54] Assets and Liabilities - Total assets exceeded HK$8.2 billion as of the end of the financial year[20] - Total assets as of March 31, 2023, were HK$8.268 billion, down from HK$9.374 billion in 2022, representing a decrease of 11.8%[31] - The Group's net current liabilities decreased primarily due to proceeds from the sale of subsidiaries and financing arrangements, including the issuance of future equity simple agreements and new long-term loans raised during the year[128] - The Group's net bank borrowings decreased, and it has sufficient resources to settle current liabilities as they fall due, supported by proceeds from disposals and financing arrangements[125] Workforce and Operations - The company employs over 6,650 staff worldwide[27] - The workforce decreased to 6,650 employees from 7,050 in the previous year, reflecting a reduction in operational scale[31] - Capital expenditure for the year was HK$292.8 million, slightly down from HK$302.7 million in 2022[31] - The manufacturing capacity rebalancing project was mostly completed in FY2023, leading to improved manufacturing efficiency and economies of scale expected in FY2024[151] Research and Development - The company emphasizes R&D in new rechargeable battery technology and B2B battery business[19] - The company continues to invest in R&D for battery technologies with improved performance and sustainability features[28] - Research and development expenditures increased by 30%, amounting to HKD 150 million, aimed at enhancing product innovation[175] - The Group is focusing on R&D for sustainable battery products, including Nickel Metal Hydride batteries with recycled materials[78][82] Sustainability Initiatives - The company aims to become a leader in providing energy and sound solutions with a focus on sustainability[23] - New eco-friendly paper packaging has been introduced for GP Alkaline batteries[26] - The Group is focusing on sustainability, with over 10% recycled materials used in selected rechargeable battery models and a commitment to eliminate plastics in packaging[76] - Six plants in Malaysia, Vietnam, and China achieved Zero Waste to Landfill Gold Validation, reflecting the Group's commitment to green production[72][74] - The Group's battery facilities have extended the use of renewable energy, with six plants committed to reducing emissions and waste, achieving Zero Waste to Landfill Gold Validation[135] Market and Sales Performance - Major product categories include GP Alkaline batteries, GP Recyko rechargeable batteries, KEF premium acoustic products, and Celestion professional speakers[19] - Sales performance of Celestion is improving as demand for professional sound equipment rises with the resumption of large-scale music events[70] - Approximately 75.7% of FY2023 revenue was from the Batteries Business, while 24.3% came from the Electronics and Acoustics Business[95] - The battery business revenue fell by 7.5% to S$87.01 million, with sales of disposable and rechargeable batteries decreasing by 6.2% and 15.5% respectively, and regional sales dropping by 17.5% in the Americas, 13.4% in Europe, and 1.4% in Asia[110] Strategic Initiatives - A new subsidiary, KEF GP Group Limited, was established to enhance brand development and market growth, including the opening of experience centers in major cities[54] - The Group's strategies include strengthening social media marketing and e-commerce capabilities to support global distribution[54] - The introduction of innovative new products remains a core long-term strategy, with a focus on operational excellence and efficiency improvements across manufacturing and distribution[155] - The company is exploring strategic acquisitions to bolster its supply chain efficiency, with a budget of HKD 300 million allocated for potential deals[175] Challenges and Economic Factors - The Group faced significant challenges due to high material costs, reduced consumer demand, and increased interest rates, impacting sales and profitability[51] - The overall economic slowdown and credit tightening in the market have further compounded the challenges faced by the Group[54] - High interest rates have significantly increased the Group's finance costs, prompting management to consider equity financing to reduce borrowing levels and finance costs[150] - Challenges from high interest rates and shortages of electronic components are expected to persist, affecting inventory optimization and working capital requirements[153]

Financial Performance - The turnover for the financial year 2022-2023 amounted to HK$6.6 billion[20] - The total revenue for the financial year 2022-2023 amounted to HK$6.581 billion, a decrease of 7.9% from HK$7.146 billion in 2021-2022[31] - The total profit for the year was HK$36.9 million, down 76.5% from HK$156.9 million in the previous year[31] - Earnings per share decreased to 4.0 Hong Kong cents, compared to 19.8 Hong Kong cents in the prior year, reflecting a decline of 79.8%[31] - Profit before taxation fell to HK$100.4 million, down from HK$264.9 million, indicating a decrease of about 62.1%[47] - The Group's total profit attributable to owners decreased from HK$156.9 million in FY2022 to HK$36.9 million in FY2023[102] - The Group's revenue for FY2023 was HK$6,581.0 million, a decline of HK$480.6 million or 6.8% compared to FY2022[94] - The profit attributable to owners of the Company was adjusted from HK$X billion to HK$Y billion due to the reclassification of financial statements following acquisitions[136] Assets and Liabilities - Total assets exceeded HK$8.2 billion as of the end of the financial year[20] - Total assets as of March 31, 2023, were HK$8.268 billion, down from HK$9.374 billion in 2022, representing a decrease of 11.8%[31] - The Group's current liabilities decreased to HK$4,236.1 million from HK$5,107.0 million, a reduction of approximately 17.0%[47] - The Group's net bank borrowings decreased by HK$XX million, with a borrowing ratio calculated based on consolidated net bank borrowings to shareholders' funds[124] - The Group's net current liabilities decreased primarily due to proceeds from the sale of subsidiaries and financing arrangements, including the issuance of future equity simple agreements and new long-term loans raised during the year[128] Workforce and Operations - The company employs over 6,650 staff worldwide[27] - The workforce decreased to 6,650 employees from 7,050 in the previous year, reflecting a reduction in operational scale[31] - Capital expenditure for the year was HK$292.8 million, slightly down from HK$302.7 million in the previous year[31] Research and Development - The company emphasizes R&D in new rechargeable battery technology and B2B battery business[19] - The company continues to invest in R&D for battery technologies with enhanced performance and sustainability features[28] - The Group is focusing on R&D for Nickel Metal Hydride batteries with recycled materials and new alloy materials for extreme temperature performance[78][82] - Investment in R&D increased by 30%, focusing on sustainable energy solutions and battery technology advancements[175] Sustainability Initiatives - The company aims to lead in providing energy and sound solutions with a focus on sustainability[23] - New eco-friendly paper packaging has been introduced for GP Alkaline batteries[26] - The Group is committed to sustainability, with six plants achieving Zero Waste to Landfill Gold Validation and solar panels installed in manufacturing facilities[72][74] - Over 10% of recycled materials are currently used in selected rechargeable battery models, with plans to expand this application[76] - The Group aims to minimize its carbon footprint and enhance green production through increased investments in sustainable practices[86][89] Market and Product Development - Major product categories include GP Alkaline batteries, GP Recyko rechargeable batteries, KEF premium acoustic products, and Celestion professional speakers[19] - A new subsidiary, KEF GP Group Limited, was established to enhance brand development and market growth, including the opening of experience centers in major cities[54] - The partnership with Lotus resulted in the launch of the KEF x Lotus home audio product, LS60 Wireless Lotus Edition, in March 2023, with further rollouts planned from July[69] - Sales performance of Celestion is improving as demand for professional sound equipment rises with the resumption of large-scale music events[70] - KEF's LS60 Wireless music system received positive market response, enhancing the Group's innovation capabilities[79][82] - The company plans to expand its market presence in Asia Pacific, targeting a 25% increase in market share by 2025[175] Challenges and Strategic Responses - The Group faced significant challenges due to high material costs, reduced consumer demand, and increased interest rates, impacting sales and profitability[51] - To mitigate rising interest costs, the Group has shifted towards more equity financing for business expansion[54] - The overall economic slowdown and credit tightening have further pressured the Group's profit margins[54] - Business activities increased as countries reopened, but inflation and high interest rates suppressed consumer spending, slowing demand for battery products in FY2023[149] - High interest rates significantly increased the Group's finance costs, prompting management to consider equity financing for future expansions to reduce borrowing levels[150] Corporate Governance - The company has maintained compliance with the Corporate Governance Code throughout the financial year ended March 31, 2023, except for deviations from code provision C.2.1[199] - The Board of Directors focuses on the overall strategic development and financial performance monitoring of the Group[200] - The Board consists of six executive directors, one non-executive director, and four independent non-executive directors as of March 31, 2023[197]

Financial Performance - The revenue from continuing operations for the first half of the year was HKD 3,373,000,000, a decrease of 5.9% compared to HKD 3,584,000,000 in the same period last year[9]. - The profit attributable to the owners of the company from continuing operations was HKD 62,400,000, an increase of 12.4% from HKD 55,600,000 in the previous year[9]. - The earnings per share for continuing and discontinued operations was HKD 0.0682, up from HKD 0.0513 in the previous year[9]. - The gross profit for the first half of the year decreased by 8.1% to HKD 858,700,000, with a gross margin of 25.46%, down from 26.08% in the previous year[10]. - Other income and gains increased significantly from HKD 47,000,000 to HKD 221,000,000, primarily due to a profit of HKD 127,200,000 from battery business sales and foreign exchange gains of HKD 46,900,000[12]. - The battery business revenue for the first half was HKD 464,600,000, a decline of 4.7%[14]. - Sales of disposable batteries and rechargeable batteries decreased by 3.3% and 13.7%, respectively[15]. - The sales in North and South America and Europe decreased by 25.2% and 11.6%, while sales in Asia increased by 5.3%[16]. - The brand audio business revenue slightly decreased by 0.3%, with KEF product sales down by 4% in North and South America and Europe, while Asia saw an increase[20]. - Celestion's professional speaker unit business revenue increased by 18.4%, despite a decrease in sales in North and South America[20]. - The gross margin for the electronics and speaker business was impacted by high material prices and a slowdown in sales, leading to a decline in marginal profit[20]. Expenses and Liabilities - Administrative expenses increased by 4.8% to HKD 464,000,000, mainly due to rising employee costs and depreciation from new facilities[12]. - Financial costs rose by 25.5% to HKD 85,200,000 due to rapidly increasing interest rates[13]. - As of September 30, 2022, the group's net bank loans decreased by HKD 73 million to HKD 2,564 million, with a debt-to-equity ratio of 0.95[24]. - The group's current liabilities exceeded current assets by approximately HKD 292 million as of September 30, 2022, primarily due to a HKD 70 million term loan drawn by GP Industrial[25]. - The company’s total liabilities decreased to HKD 4,393,125,000 from HKD 5,106,968,000, reflecting a reduction of approximately 13.9%[37]. - The company’s equity attributable to owners decreased to HKD 1,807,756,000 from HKD 1,916,312,000, a decline of about 5.7%[37]. - The company’s bank loans and other borrowings decreased to HKD 2,631,455,000 from HKD 3,082,962,000, indicating a reduction of approximately 14.6%[35]. - The group’s total accounts payable as of September 30, 2022, was HKD 1,537,592,000, compared to HKD 1,764,823,000 as of March 31, 2022[77]. Cash Flow and Investments - The company reported a net cash outflow from operating activities of HKD 6,188,000 for the six months ended September 30, 2022, compared to a much larger outflow of HKD 223,444,000 in the same period of 2021[39]. - Cash and cash equivalents at the end of the period were HKD 1,164,993,000, an increase from HKD 972,080,000 at the end of the previous year[39]. - The group invested approximately HKD 159,445,000 in property, plant, and equipment for the six months ended September 30, 2022, up from HKD 111,828,000 for the same period in 2021[70]. - The company plans to continue focusing on investment activities, with cash outflows for property, plant, and equipment purchases amounting to HKD 159,046,000 during the reporting period[39]. Shareholder Information - As of September 30, 2022, the company's share capital was HKD 998,666,000, an increase from HKD 921,014,000 as of September 30, 2021, representing an increase of approximately 8.4%[41]. - The total equity attributable to the owners of the company as of September 30, 2022, was HKD 1,916,312,000, compared to HKD 1,598,774,000 as of September 30, 2021, indicating an increase of approximately 19.8%[44]. - The company did not declare an interim dividend for the six months ended September 30, 2022[107]. - As of September 30, 2022, the largest shareholder held 10.75% of the company's issued shares[113]. - The company’s directors and president collectively own 26.54% of the company's ordinary shares[108]. Corporate Governance - The company has complied with the corporate governance code, with the exception of the separation of the roles of Chairman and CEO, which are held by the same individual[118]. - All directors have adhered to the standards set forth in the code of conduct regarding securities transactions during the reporting period[119]. - An audit committee has been established to review and monitor the group's financial reporting and internal controls, consisting of four independent non-executive directors and one non-executive director[121]. - The board of directors includes a mix of executive and independent non-executive members, ensuring a balance of power[122]. Other Significant Events - The company completed the sale of its subsidiary, Times Battery, during the reporting period ending September 30, 2022[99]. - The company received cash consideration of HKD 165,831,000 from the sale of assets[100]. - The net cash inflow from the sale of assets amounted to HKD 154,299,000 after deducting deposits and cash[100]. - The net asset value of the sold subsidiary was HKD 73,765,000, resulting in a loss on sale of HKD 16,739,000[105]. - The company recognized a gain of HKD 60,245 from the sale of a subsidiary, which was not present in the previous year[56].

Financial Performance - The revenue from continuing operations for the six months ended September 30, 2021, was HKD 3,584,000,000, an increase of 14.5% compared to HKD 3,130,000,000 in the same period last year[9]. - The profit attributable to the owners of the company from continuing operations was HKD 55,500,000, up 22.5% from the previous year[10]. - The earnings per share from continuing operations was HKD 0.0708, compared to HKD 0.0578 in the same period last year[10]. - The profit for the period ended September 30, 2021, was HKD 64,530,000, a decrease of 35.8% compared to HKD 100,210,000 for the same period in 2020[34]. - The group reported a profit before tax of HKD 106,708 thousand for the period, down from HKD 128,539 thousand in the previous year, indicating a decrease of 16.9%[56]. - The company reported a total comprehensive income of HKD 52,763,000 for the six months ended September 30, 2021, compared to HKD 63,841,000 for the same period in 2020, representing a decrease of approximately 17.3%[47]. - The company’s comprehensive income for the six months ended September 30, 2021, was impacted by a loss from the sale of a subsidiary amounting to HKD 846,000[47]. Revenue Breakdown - The revenue for GP Industries increased by SGD 56,700,000 to SGD 619,000,000, a rise of 10.1%, primarily due to a 64.2% increase in the electronics and speaker business[11]. - The revenue of the electronic products and speaker business increased by 64.2% to SGD 131.4 million, driven by strong growth in professional speaker manufacturing and branded audio businesses[20]. - Revenue from electronic and speaker products reached HKD 760,796 thousand, up from HKD 445,725 thousand, representing a growth of 70.7% year-over-year[58]. - Revenue from battery and battery-related products was HKD 2,822,768 thousand, compared to HKD 2,684,587 thousand, reflecting an increase of 5.1%[58]. - Revenue from customers located in mainland China was HKD 1,241,138 thousand, up from HKD 1,112,476 thousand, marking an increase of 11.6%[58]. - Revenue from discontinued automotive wiring business for the six months ended September 30, 2021, was HKD 84,147,000, an increase of 7.5% compared to HKD 78,068,000 for the same period in 2020[87]. Expenses and Costs - The gross profit margin decreased from 26.8% to 26.1% due to rising material costs and currency fluctuations[13]. - The group incurred other expenses totaling HKD 18,858 thousand, a reduction from HKD 40,633 thousand in the prior year, showing a decrease of 53.6%[60]. - The total tax expense for the six months ended September 30, 2021, was HKD 24,519,000, a decrease from HKD 32,989,000 in the same period of 2020, representing a decline of approximately 25.7%[63]. - Total administrative expenses increased to HKD 6,705,000 from HKD 5,618,000 in the previous year, reflecting a rise of 19.4%[87]. - Financial costs rose significantly to HKD 418,000 compared to HKD 73,000 in the same period last year[87]. Assets and Liabilities - The group's current liabilities exceeded current assets by approximately HKD 585 million, primarily due to investments in property, plant, and equipment over the past few years[27]. - The total liabilities decreased to HKD 4,770,999,000 from HKD 4,856,767,000[38]. - The equity attributable to the owners of the company increased to HKD 1,692,240,000 from HKD 1,598,774,000[38]. - The company's total assets as of September 30, 2021, were HKD 2,484,167,000, reflecting an increase from HKD 2,271,758,000 as of September 30, 2020[46]. - The company's trade payables decreased to HKD 1,882,866,000 as of September 30, 2021, from HKD 1,953,572,000 as of March 31, 2021, indicating a reduction of about 3.6%[74]. Cash Flow and Investments - The net cash generated from operating activities was negative HKD 223,444,000, compared to positive HKD 80,356,000 in the same period last year[40]. - Cash and cash equivalents at the end of the period were HKD 972,080,000, slightly down from HKD 978,789,000 year-on-year[40]. - The company invested approximately HKD 111,828,000 in property, plant, and equipment during the period, down from HKD 190,545,000 in the same period of 2020, indicating a decrease of about 41.3%[66]. - The company recognized right-of-use assets of HKD 108,223,000 during the period, significantly higher than HKD 36,616,000 in the same period of 2020, indicating an increase of about 195%[67]. Dividends and Shareholder Information - The company does not recommend the payment of an interim dividend for the six months ended September 30, 2021[10]. - The company did not declare an interim dividend for the six months ended September 30, 2021, due to uncertain market conditions[96]. - Major shareholders include Tu Mei Mei with 10.44% and Wu Qian Hui with 5.18% of the issued shares[102]. Governance and Compliance - The company has complied with the corporate governance code, with the chairman and CEO roles held by the same individual, which the board believes does not affect the balance of power[107]. - An audit committee has been established to review and monitor the group's financial reporting and internal controls, consisting of four independent non-executive directors and one non-executive director[110]. - The board of directors includes a mix of executive and independent non-executive members, ensuring diverse oversight[111].