Core Viewpoint - As of July 18, 160 stocks reached their 52-week highs, with notable performances from China New Economy Investment (00080), Aoyuan Group Equity (02905), and Zhong An Holdings Group (08462) showing high growth rates of 288.89%, 55.28%, and 50.00% respectively [1][2]. Summary by Category 52-Week High Performers - China New Economy Investment (00080) closed at 0.440, with a peak price of 0.700, achieving a growth rate of 288.89% [2]. - Aoyuan Group Equity (02905) closed at 0.218, with a peak price of 0.250, achieving a growth rate of 55.28% [2]. - Zhong An Holdings Group (08462) closed at 0.221, with a peak price of 0.228, achieving a growth rate of 50.00% [2]. - Other notable performers include Hualian International (00969) with a growth rate of 40.13% and Zhongke Bio (01237) with a growth rate of 37.25% [2]. Additional High Performers - Wanma Holdings (06928) closed at 0.550 with a growth rate of 30.43% [2]. - Lepu Biopharma-B (02157) closed at 7.940 with a growth rate of 24.54% [2]. - Other stocks with significant growth include ZhiJianYueDong (06860) at 17.14% and China Jindian Group (08281) at 17.12% [2]. 52-Week Low Performers - The document also lists stocks that reached their 52-week lows, with XI Ernan CO-U (09311) showing a decline of 16.10% [6]. - Other notable declines include XI Ernan CO (07311) at -12.62% and Haotian International Construction Investment (01341) at -5.70% [6].

Financial Performance - Revenue for the fiscal year ending March 31, 2025, was HKD 2,594,735, representing a 29% increase from HKD 2,009,545 in the previous year[2] - Profit before tax increased by 52% to HKD 189,625 from HKD 125,142 year-on-year[4] - Net profit attributable to equity holders rose by 53% to HKD 154,386 compared to HKD 100,853 in the prior year[2] - Basic earnings per share increased by 53% to HKD 24.5 from HKD 16.0[4] - Revenue from Mainland China and Hong Kong rose to HKD 1,840,082,000 in 2025, up 27% from HKD 1,449,902,000 in 2024[13] - Operating profit before tax increased to HKD 189,625,000 in 2025, representing a growth of 51.6% compared to HKD 125,142,000 in 2024[13] - The group's revenue from customer contracts reached HKD 2,594,735,000 in 2025, a 29.1% increase from HKD 2,009,545,000 in 2024[18] - International market revenue grew by 37% to HKD 716 million, up from HKD 522 million in the previous year[41] Assets and Liabilities - The total assets value was HKD 4,358,964, a 5% increase from HKD 4,143,750[2] - Total assets for the group increased from HKD 4,143,750,000 in 2024 to HKD 4,358,964,000 in 2025, marking an increase of approximately 5.2%[14] - The group’s liabilities increased from HKD 1,069,681,000 in 2024 to HKD 1,270,592,000 in 2025, an increase of approximately 18.7%[14] - The total net receivables from trade and notes amounted to HKD 1,573,798,000 in 2025, an increase from HKD 1,318,304,000 in 2024[25] - The net current assets stood at HKD 1,997,648, reflecting a 1% increase from HKD 1,985,180[6] - Cash and bank balances decreased to HKD 528,179 from HKD 825,777, indicating a significant reduction[6] - The group had no bank loans as of March 31, 2025, maintaining a net cash balance of HKD 667 million, down HKD 207 million from the previous year[47] Dividends and Shareholder Returns - The company declared a cash dividend of HKD 11.8 per share, up 48% from HKD 8.0 in the previous year[2] - The proposed final dividend is HKD 0.08 per share, compared to HKD 0.05 per share in the previous year, with a total dividend of HKD 0.118 per share for the fiscal year[31] - The company’s dividend payout for the year was HKD 55,487,000, down from HKD 64,945,000 in 2024, with a proposed final dividend of HKD 0.080 per share[24] Operational Highlights - The company launched new product lines including large two-plate injection molding machines and all-electric injection molding machines, catering to sectors like new energy vehicles and 3C electronics[42] - The company achieved a significant breakthrough with a 4,500-ton two-plate machine featuring a pre-melting technology capable of 280 kg injection volume, successfully delivered to overseas clients[42] - The establishment of a digital center aims to enhance decision-making and production efficiency through a unified data platform and process engine[43] - The company initiated the "Empowering Thousands of Industries" program, providing end-to-end solutions for various sectors, enhancing flexible production and refined operations[43] - The new "iChen Smart Family" intelligent production system was launched, offering solutions for smart factory construction and AI-based mold adjustment[44] Market and Economic Environment - The global economic environment remains uncertain, influenced by geopolitical tensions and trade protectionism, impacting the overall business landscape[34] - The company is actively managing market and financial risks amid increasing geopolitical tensions and trade protectionism[36] Corporate Governance and Compliance - The company has complied with all provisions of the corporate governance code, except for the rotation of directors every three years, as the chairman and CEO are not required to do so under Bermuda law[62] - The roles of the chairman and group president are held by the same individual, which the company deems suitable due to the individual's skills and experience[63] - The company has adopted a code of conduct for directors' securities trading, which meets or exceeds the standards set forth in the listing rules[64] - The independent auditor has agreed that the financial figures for the fiscal year ending March 31, 2025, are consistent with the preliminary financial statements[66] - The audit committee has reviewed the consolidated financial statements and discussed internal controls and financial reporting matters[67]

Core Points - As of June 13, 2025, Suchang Chai A (000570) closed at 5.49 yuan, down 2.49% from last week's 5.63 yuan [1] - The company's current total market capitalization is 3.874 billion yuan, ranking 161 out of 229 in the automotive parts sector and 3603 out of 5150 in the A-share market [1] Company Announcements - Suchang Chai A's wholly-owned subsidiary, Changzhou Changchai Benniu Diesel Engine Parts Co., Ltd., will be absorbed and merged by Changzhou Changniu Machinery Co., Ltd. [1] - The board of directors held the third temporary meeting of 2025, approving the merger proposal, which involves the absorption of all assets, liabilities, and rights of Changzhou Changchai Benniu Diesel Engine Parts Co., Ltd. by Changzhou Changniu Machinery Co., Ltd. [1] - The merger will not affect the company's operational performance or consolidated financial statements, and it does not constitute a related party transaction or a major asset restructuring [1]

Core Viewpoint - The planned acquisition of approximately 60% of Bochuang Intelligent Equipment Co., Ltd. by Yuehongyuan A has been terminated due to price disagreements after over five months of negotiations, jeopardizing the company's strategy to transition into the high-end equipment manufacturing sector [2][5]. Group 1: Acquisition Details - The acquisition process began on January 2, 2025, when Yuehongyuan A signed an agreement with the controlling shareholders of Bochuang Intelligent, aiming to expand into the intelligent injection molding equipment sector [4]. - An earnest money deposit of 130 million yuan was paid by Yuehongyuan A on January 23, 2025, and a bank guarantee was provided to secure the transaction [4][5]. - Despite ongoing due diligence and negotiations, the formal share transfer agreement was never signed, leading to the termination of the acquisition [4][5]. Group 2: Financial Performance - In 2024, Yuehongyuan A reported a revenue of 489.56 million yuan, a year-on-year increase of 38.98%, but faced a net loss of 47.70 million yuan, indicating struggles in its core real estate business [6][7]. - The company has emphasized the need for a "second growth curve," with the acquisition of Bochuang Intelligent seen as a critical step in this direction [6][8]. Group 3: Impact of Termination - The termination of the acquisition means that Bochuang Intelligent's plans for a backdoor listing through Yuehongyuan A have failed, marking another setback for the company, which had previously attempted to list on the STAR Market [5][6]. - Yuehongyuan A has stated that the risks from the termination are manageable, as the earnest money is secured through share pledges and bank guarantees, and it will not adversely affect existing operations [8].

Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 1,208,819,000, representing a 21% increase from HKD 1,002,400,000 in the same period last year[4] - Profit before tax increased by 24% to HKD 78,997,000 compared to HKD 63,722,000 in the previous year[4] - Profit attributable to equity holders of the company rose by 29% to HKD 65,160,000 from HKD 50,501,000 year-on-year[4] - Basic earnings per share increased by 29% to HKD 10.3 cents, up from HKD 8.0 cents in the previous year[4] - The company reported a total comprehensive income of HKD 65,833,000 for the period, compared to a loss of HKD 68,907,000 in the previous year[19] - The group reported a cost of goods sold of HKD 931,845,000 for the six months ended September 30, 2024, up from HKD 755,902,000 in 2023, indicating an increase of 23.2%[68] - The group’s profit attributable to equity holders for the six months ended September 30, 2024, was HKD 65,160,000, an increase of 29.1% from HKD 50,501,000 in 2023[79] Assets and Liabilities - Total assets grew by 10% to HKD 4,335,067,000 compared to HKD 3,925,071,000 in the previous year[4] - Total liabilities increased to HKD 1,225,705,000 from HKD 1,069,681,000, representing a rise of approximately 14.6%[23] - Current assets increased to HKD 3,136,760,000 from HKD 2,939,132,000, reflecting a growth of approximately 6.7%[22] - The company's net asset value reached HKD 3,109,362,000, compared to HKD 3,074,069,000, marking an increase of about 1.2%[23] - Current liabilities rose to HKD 1,113,453,000 from HKD 953,952,000, which is an increase of approximately 16.7%[22] Dividends - The company declared an interim dividend of HKD 3.8 cents per share, a 27% increase from HKD 3.0 cents in the previous year[4] - The group declared an interim dividend of HKD 0.038 per share for the six months ended September 30, 2024, totaling HKD 23,960,000, compared to HKD 0.030 per share and HKD 18,916,000 in the same period of 2023[78] Cash Flow - Net cash inflow from operating activities for the six months ended September 30, 2024, was HKD 59,949,000, a decrease of 64.1% compared to HKD 165,923,000 for the same period in 2023[50] - The company reported a net cash outflow from investing activities of HKD 82,146,000 for the six months ended September 30, 2024, compared to HKD 49,336,000 in the previous year, reflecting a significant increase in investment expenditures[50] - Total cash and cash equivalents at the end of the period were HKD 762,235,000, up from HKD 692,410,000 year-over-year, indicating an increase of approximately 10.06%[50] Stock Options and Equity - The company’s total issued share capital remained at 63,053,000 shares as of September 30, 2024, consistent with the previous reporting period[36] - A total of 3,350,000 stock options were granted on September 16, 2024, representing approximately 0.53% of the company's issued ordinary shares[106] - The maximum number of ordinary shares that can be issued under the stock option plan is 63,053,160, equivalent to 10% of the company's issued share capital[97] - The company has no treasury shares as of September 30, 2024[190] Market and Operational Insights - The group launched several new products, including a 550-ton dual-board model and various electric and hybrid models, enhancing product adaptability and customer production efficiency[140] - The group is collaborating with Rockwell Automation to implement a phased smart factory upgrade, aiming to enhance production efficiency and management through advanced technology[143] - The overall economic environment in mainland China remains stable, with a GDP growth target of around 5% for the fiscal year[136] - The group plans to expand its technical service centers in Brazil, India, and Vietnam to strengthen local market presence and customer service[139] Risk Management - Effective risk management plays a crucial role in achieving the group's strategic objectives, ensuring long-term business adaptability[200] - The audit committee continues to review the group's risk management and internal control systems for the six months ending September 30, 2024[200] - Details of the group's risk management and internal control systems are available in the 2023/24 annual report, specifically in the corporate governance report on pages 48 to 49[200] Employee and Management Compensation - The total number of full-time employees increased to approximately 2,500 from 2,400 as of March 31, 2024, reflecting the company's commitment to competitive compensation and employee development[157] - The company’s management compensation totaled HKD 4.582 million for the six months ended September 30, 2024, slightly up from HKD 4.534 million in the previous year[125]

Financial Performance - The company reported a revenue of HKD 1,208,819,000 for the six months ending September 30, 2024, representing a 21% increase from HKD 1,002,400,000 in the same period last year[2]. - Profit attributable to equity holders was HKD 65,160,000, up 29% from HKD 50,501,000 year-on-year[3]. - Basic earnings per share increased to HKD 10.3 cents, a 29% rise compared to HKD 8.0 cents in the previous year[3]. - The gross profit for the period was HKD 276,974,000, compared to HKD 246,498,000 last year[4]. - Total comprehensive income for the period was HKD 65,833,000, compared to a loss of HKD 68,907,000 in the same period last year[6]. - The adjusted profit before tax for the group was HKD 78,997,000, compared to HKD 63,722,000 in the previous year, marking a 24% increase[18]. - The cost of goods sold for the period was HKD 931,845,000, up from HKD 755,902,000, indicating a rise in production costs[18]. Assets and Equity - The total assets reached HKD 4,335,067,000, reflecting a 10% growth from HKD 3,925,071,000[2]. - The company's net current assets amounted to HKD 2,023,307,000, a 5% increase from HKD 1,926,849,000[2]. - The company's total equity attributable to equity holders increased to HKD 3,094,076,000, up from HKD 2,935,393,000, a 5% rise[2]. - As of September 30, 2024, the group's net current assets amounted to HKD 20.23 billion, a 2% increase from HKD 19.85 billion on March 31, 2024[49]. - Cash and bank balances (including pledged deposits) were HKD 8.94 billion, up from HKD 8.74 billion on March 31, 2024, reflecting an increase of HKD 200 million[49]. - The group has no bank loans as of September 30, 2024, maintaining a net cash position of HKD 8.94 billion[49]. Revenue Segmentation - Revenue from the mainland China and Hong Kong segment reached HKD 890,834,000, a 22.6% increase from HKD 726,760,000 in the same period last year[16]. - The Taiwan segment reported revenue of HKD 21,441,000, up from HKD 17,805,000, while the segment incurred a loss of HKD 4,848,000 compared to a loss of HKD 2,993,000 last year[16]. - Revenue from other overseas countries was HKD 296,544,000, an increase of 15% from HKD 257,835,000 in the previous year[16]. - The group's total revenue for the six months ended September 30, 2024, was HKD 1,208,819,000, compared to HKD 1,002,400,000 for the same period in 2023, reflecting a growth of 20.6%[16]. - The company's revenue from mainland China and Hong Kong reached HKD 891 million, a 23% increase from HKD 727 million in the previous year[43]. - Revenue from Taiwan increased by 17% to HKD 21 million, up from HKD 18 million in the previous year[43]. - International market revenue rose by 16% to HKD 297 million, compared to HKD 257 million in the previous year[45]. Dividends - The company declared a cash dividend of HKD 3.8 cents per share, a 27% increase from HKD 3.0 cents previously[2]. - The company declared an interim dividend of HKD 0.038 per share, totaling HKD 23,960,000, compared to HKD 0.030 per share and HKD 18,916,000 in the previous year[23]. - Basic earnings per share for the period were HKD 65,160,000, an increase from HKD 50,501,000 in the same period last year[24]. - The company declared an interim dividend of HKD 0.038 per share, up from HKD 0.030 per share in the previous year[37]. Operational Insights - The company launched several new products, including a 550-ton dual-board model and various electric and hybrid models, enhancing its product line[47]. - The company achieved a breakthrough in pre-melting technology with a shot weight of 280 kg, successfully implemented in a 4500-ton dual-board machine[48]. - The total number of full-time employees as of September 30, 2024, was approximately 2,500, up from 2,400 on March 31, 2024[62]. Market Outlook and Strategy - The GDP growth rate in mainland China is projected to remain around 5%, supported by government investment in infrastructure and manufacturing[44]. - The overall economic environment remains uncertain, with inflation easing but geopolitical tensions and high public debt posing risks to global stability[40]. - The group anticipates facing multiple challenges in the second half of the fiscal year, with a conservative investment attitude from global customers due to market uncertainties[63]. - The strategy for the second half of the year includes increased resources for market promotion, launching more industry-specific models, and technological innovation[63]. Financial Management and Risks - The group has implemented a robust financial management policy to ensure sufficient liquidity for capital investments and operational needs[50]. - The group has assessed foreign currency risks and has strategies in place to mitigate these risks, particularly concerning fluctuations in the Renminbi[59]. - The group has not made any significant investments, acquisitions, or disposals in its subsidiaries or associates during the six months ended September 30, 2024[54]. Compliance and Governance - The company has adopted a code of conduct for directors' securities trading, which is at least as stringent as the standards set out in the Listing Rules Appendix C3[66]. - No purchases, sales, or redemptions of the company's listed securities were made by the company or any of its subsidiaries in the six months ending September 30, 2024[68]. - The audit committee and management have reviewed the unaudited interim results for the six months ending September 30, 2024, including discussions on internal controls and financial reporting matters[69].

Financial Performance - The company's profit for the year 2024 is HKD 98,859,000, a decrease of 23.3% from HKD 128,785,000 in 2023[1] - Total comprehensive income for the year is HKD 69,627,000, compared to a loss of HKD 62,502,000 in the previous year[1] - Revenue from customer contracts for 2024 is HKD 2,009,545,000, down 13.1% from HKD 2,312,584,000 in 2023[12] - Profit attributable to equity holders fell by 23% to HKD 101 million (2023: HKD 130 million), with basic earnings per share at HKD 0.16 (2023: HKD 0.207)[40] - The group recorded total revenue of HKD 2.010 billion for the fiscal year ending March 31, 2024, a decrease of 13% from HKD 2.313 billion in 2023, with a 4% impact from the depreciation of the RMB against the USD[40] - Profit before tax for the same period was HKD 125,142 thousand, down 21% from HKD 158,941 thousand year-on-year[79] - The company reported a basic earnings per share of HKD 0.160, down from HKD 0.207, reflecting a 23% decrease[79] - The company’s cash dividend per share was HKD 0.080, a reduction of 32% from HKD 0.118 in the previous year[79] Revenue Breakdown - Revenue from customer contracts in Mainland China and Hong Kong is HKD 1,449,902,000, a decrease from HKD 1,670,556,000 in 2023[12] - Revenue from mainland China and Hong Kong decreased by 13% to HKD 1.450 billion (2023: HKD 1.671 billion), while Taiwan's revenue plummeted by 40% to HKD 38 million (2023: HKD 63 million)[44] - The international market revenue declined by 10% to HKD 522 million (2023: HKD 579 million), with significant challenges in Vietnam due to reduced foreign investment and weak European consumer markets[47] - The group’s performance in the mainland Chinese market was impacted by weak consumer demand and overcapacity, leading to a 13% drop in revenue to HKD 1.450 billion (2023: HKD 1.671 billion)[46] Assets and Liabilities - Non-current assets total HKD 1,204,618,000 in 2024, an increase from HKD 1,178,385,000 in 2023[2] - Current assets amount to HKD 2,939,132,000, slightly down from HKD 2,970,924,000 in the previous year[2] - Current liabilities total HKD 953,952,000, compared to HKD 980,520,000 in 2023[2] - The net current asset value is HKD 1,985,180,000, a slight decrease from HKD 1,990,404,000 in 2023[2] - The total assets value was HKD 4,143,750 thousand, showing no significant change from HKD 4,149,309 thousand in the previous year[79] - The total liabilities ratio is not reported as the group holds a net cash balance as of March 31, 2024[115] Cash Flow and Financial Management - Cash and bank deposits (including pledged deposits) increased to HKD 874 million from HKD 671 million in 2023, representing a year-on-year increase of HKD 203 million[16] - The group has maintained a robust financial management policy, ensuring sufficient liquidity to meet capital investment and operational funding needs[27] - The group has pledged trade receivables of HKD 73,307,000 as of March 31, 2024, down from HKD 93,639,000 in 2023, indicating a decrease of 21.7%[50] Market and Economic Outlook - The group anticipates a cautious outlook for the coming year, acknowledging both challenges and opportunities in the political and economic landscape[31] - The overall economic environment remains challenging, with high interest rates and global inflation impacting consumer spending and business operations across various markets[40] - Current global economic forecasts indicate that over half of economists expect continued weakening in the global economy next year, with cautious expectations for economic prospects[127] Research and Development - Eleven new patents were added during the fiscal year, including two invention patents[26] - The group plans to complete the innovative R&D center and new logistics center in Shenzhen, enhancing production capacity resilience[26] Employee and Workforce - The number of full-time employees increased to approximately 2,400, up from 2,300 in the previous year, reflecting a growth in workforce[119]

Revenue Performance - For the six months ended September 30, 2023, total revenue decreased by 24% to HKD 1,002 million compared to HKD 1,322 million in the same period last year[30]. - Revenue from mainland China and Hong Kong was HKD 727 million, down 24% from the previous year[30]. - Revenue from Taiwan fell 53% to HKD 18 million, down from HKD 38 million in the previous year[31]. - Revenue for the six months ended September 30, 2023, was HKD 1,002,400,000, a decrease of 24% compared to HKD 1,321,680,000 for the same period in 2022[192]. - Revenue from Mainland China and Hong Kong was HKD 726,760,000, down 23.7% from HKD 952,551,000 in 2022[192]. - Revenue from other overseas countries was HKD 257,835,000, a decrease of 22.1% from HKD 330,987,000 in the previous year[192]. Profitability - The group faced a total comprehensive loss of HKD 278,337 thousand for the period, compared to a gain of HKD 75,213 thousand in the previous year[4]. - The profit attributable to equity holders decreased by 33% to HKD 50.5 million, down from HKD 75.1 million in the previous year[54]. - Basic earnings per share were HKD 0.08, compared to HKD 0.119 in the previous year[54]. - Profit before tax for the same period was HKD 63,722,000, down 31% from HKD 92,177,000 year-on-year[139]. - Net profit attributable to equity holders was HKD 50,501,000, a decline of 33% from HKD 75,104,000 in the previous year[128]. - Gross profit for the six months was HKD 76,140,000, a decline of 30% from HKD 108,997,000 in the previous year[192]. Dividends - The board declared an interim dividend of HKD 0.03 per share, down from HKD 0.045 in the previous year[53]. - The net cash dividend was HKD 0.03 per share, down from HKD 0.045, reflecting a 33% reduction[127]. - The interim dividend declared for the six months ended September 30, 2023, is HKD 0.030 per share, down from HKD 0.045 in 2022, totaling HKD 18,916,000 compared to HKD 28,374,000 in the previous year[194]. Assets and Liabilities - The net asset value as of September 30, 2023, was HKD 550,899 thousand, down from HKD 585,382 thousand at the beginning of the period[16]. - Total assets as of September 30, 2023, were HKD 3,925,071,000, a slight decrease of 1% from HKD 3,962,299,000[139]. - Total liabilities decreased to HKD 875,252,000, down 10.7% from HKD 980,520,000[142]. - Total equity as of September 30, 2023, was HKD 2,953,730,000, a decline of 3.7% from HKD 3,068,181,000[143]. - The company reported a significant reduction in inventory, which decreased to HKD 692,376,000 from HKD 791,763,000, representing a decline of 12.5%[142]. Accounts Receivable and Payable - The accounts receivable as of September 30, 2023, totaled HKD 413,116 thousand, a decrease from HKD 454,352 thousand as of March 31, 2023[17]. - As of September 30, 2023, total trade and notes receivables were HKD 1,324,662,000, compared to HKD 1,479,451,000, representing a decrease of approximately 10.5%[196]. - The aging analysis of trade receivables shows that amounts overdue for more than 365 days increased to HKD 224,201,000 from HKD 165,373,000, marking a rise of about 35.5%[197]. - The group has adopted a strict policy to control credit terms and accounts receivable to minimize credit risk[42]. - Trade receivables as of September 30, 2023, amounted to HKD 999,272,000, a decrease from HKD 1,117,396,000 as of March 31, 2023, reflecting a reduction of approximately 10.6%[196]. Operational Strategies - The group has initiated the mass production of new models, including the upgraded MK6 PRO flagship product, to enhance market competitiveness[33]. - The group has implemented measures to reduce procurement costs and expand the sales team to address the challenges posed by the current economic environment[29]. - The company plans to continue its strategy of cost management and operational efficiency to enhance profitability in the upcoming quarters[145]. Market Conditions - The economic slowdown in developed economies has led to a decline in exports from developing countries, with Vietnam's export value dropping by 8.5% year-on-year as of September 2023[55]. Shareholder Information - The company’s chairman, Ms. Jiang Liyuan, holds 100% of the shares in Zhenxiong Investment, which owns 399,641,620 shares, accounting for 63.38% of the company's issued shares[68]. - The company’s major shareholder, Chiangs' Industrial Holdings Limited, holds 399,641,620 shares, representing 63.38% of the total[109]. - The total number of shares available for issuance under the share option scheme is 58,533,160, representing 9.28% of the company's issued shares as of the report date[69]. Compliance and Governance - The company has maintained compliance with all corporate governance codes during the reporting period[114]. - The company has not established any arrangements that would allow directors to benefit from purchasing the company's shares or bonds during the six months ended September 30, 2023[70].

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company experienced a significant decline in revenue and profit for the six months ended September 30, 2023 Results Summary for the Six Months Ended September 30 (Unaudited) | Indicator | Six Months Ended September 30 (Unaudited) | Change | | :--- | :--- | :--- | | | **2023 (HKD thousands)** | **2022 (HKD thousands)** | **(YoY)** | | **Revenue** | 1,002,400 | 1,321,680 | -24% | | **Profit before tax** | 63,722 | 92,177 | -31% | | **Profit attributable to owners of the Company** | 50,501 | 75,104 | -33% | | **Basic earnings per share (HK cents)** | 8.0 | 11.9 | -33% | | **Cash dividend per share (HK cents)** | 3.0 | 4.5 | -33% | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated financial statements, including income, comprehensive income, and financial position [Consolidated Income Statement](index=2&type=section&id=Consolidated%20Income%20Statement) For the six months ended September 30, 2023, the company's revenue decreased by 24% year-on-year to HKD 1.002 billion, with gross profit down 20% to HKD 246 million, resulting in a 33% decline in profit attributable to owners of the Company to HKD 50.5 million Key Data from Consolidated Income Statement (Six Months Ended September 30) | Item (HKD thousands) | 2023 (Unaudited) | 2022 (Unaudited) | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | 1,002,400 | 1,321,680 | -24.2% | | **Gross profit** | 246,498 | 308,872 | -20.2% | | **Profit before tax** | 63,722 | 92,177 | -30.9% | | **Profit for the period** | 50,499 | 74,323 | -32.1% | | **Profit attributable to owners of the Company** | 50,501 | 75,104 | -32.8% | - Basic earnings per share decreased from **11.9 HK cents** in the prior year to **8.0 HK cents**, a **32.8%** reduction[4](index=4&type=chunk) [Consolidated Statement of Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) During the period, net other comprehensive expense from foreign operations translation differences was HKD 120 million, significantly lower than HKD 280 million in the prior year, leading to a total comprehensive expense of HKD 68.91 million - Exchange differences on translation of foreign operations were the primary source of other comprehensive expense, amounting to **-HKD 118 million** for the current period, compared to **-HKD 277 million** in the prior period[6](index=6&type=chunk) - Total comprehensive expense for the period was **HKD 68.91 million**, of which **HKD 68.20 million** was attributable to owners of the Company[6](index=6&type=chunk) [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of September 30, 2023, the Group's total assets were HKD 3.925 billion, net current assets remained stable at HKD 1.927 billion, and total shareholders' equity was HKD 2.935 billion, indicating a stable financial structure Balance Sheet Summary | Item (HKD thousands) | September 30, 2023 (Unaudited) | March 31, 2023 (Audited) | Change | | :--- | :--- | :--- | :--- | | **Total non-current assets** | 1,122,970 | 1,178,385 | -4.7% | | **Total current assets** | 2,802,101 | 2,970,924 | -5.7% | | **Total current liabilities** | 875,252 | 980,520 | -10.7% | | **Net current assets** | 1,926,849 | 1,990,404 | -3.2% | | **Net assets** | 2,953,730 | 3,068,181 | -3.7% | | **Equity attributable to owners of the Company** | 2,935,393 | 3,049,140 | -3.7% | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes on the accounting policies, revenue segmentation, taxation, dividends, and receivables supporting the consolidated financial statements [1. Accounting Policies](index=6&type=section&id=1.%20Accounting%20Policies) The interim financial statements are prepared in accordance with HKAS 34, with the adoption of new and revised HKFRSs during the period having no significant impact on the financial statements - The adoption of new and revised Hong Kong Financial Reporting Standards during the reporting period had no significant financial impact or material changes to accounting policies in the condensed interim financial statements[12](index=12&type=chunk) [2. Revenue and Segment Information](index=7&type=section&id=2.%20Revenue%20and%20Segment%20Information) The Group, primarily engaged in manufacturing and selling injection molding machines, saw revenue decline across all three operating segments, with Mainland China and Hong Kong remaining the main source despite a 24% year-on-year decrease, and Taiwan experiencing the largest drop of 53% Revenue and Results by Operating Segment (Six Months Ended September 30) | Segment (HKD thousands) | Revenue (2023) | Revenue (2022) | Change | Results (2023) | Results (2022) | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Mainland China and Hong Kong** | 726,760 | 952,551 | -23.7% | 62,900 | 87,374 | -28.0% | | **Taiwan** | 17,805 | 38,142 | -53.3% | (2,993) | 2,897 | -203.3% | | **Other Overseas Countries** | 257,835 | 330,987 | -22.1% | 16,233 | 18,726 | -13.3% | | **Total** | 1,002,400 | 1,321,680 | -24.2% | 76,140 | 108,997 | -29.9% | [4. Income Tax Expense](index=8&type=section&id=4.%20Income%20Tax%20Expense) Income tax expense for the period decreased by 26% to HKD 13.22 million from HKD 17.85 million in the prior year, primarily due to a reduction in current tax expense from other regions - No Hong Kong profits tax was provided for the period as there was no assessable profit arising in Hong Kong, and tax expense from other regions decreased by **50%** year-on-year to **HKD 9.59 million**[17](index=17&type=chunk)[21](index=21&type=chunk) [5. Dividends and 6. Earnings Per Share](index=9&type=section&id=5.%20Dividends%20and%206.%20EPS) The Board declared an interim dividend of HKD 0.030 per share, a 33% decrease from HKD 0.045 last year, with basic earnings per share also down 33% to HKD 0.080, showing no dilutive effect from share options - An interim dividend of **HKD 0.030** per ordinary share was declared, totaling approximately **HKD 18.92 million**[23](index=23&type=chunk) - Basic earnings per share was **HKD 0.080**, calculated based on profit for the period of **HKD 50.50 million** and a weighted average of **631 million** ordinary shares outstanding[19](index=19&type=chunk)[24](index=24&type=chunk) [7. Trade and Bills Receivable](index=10&type=section&id=7.%20Trade%20and%20Bills%20Receivable) As of September 30, 2023, total trade and bills receivable decreased to HKD 1.325 billion from HKD 1.479 billion at the beginning of the year, with an increase in trade receivables over one year, though the Group perceives no significant concentration of credit risk Aging Analysis of Trade Receivables (Net) | Aging | September 30, 2023 (HKD thousands) | March 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Within 90 days | 356,710 | 337,415 | | 91 to 180 days | 129,729 | 202,952 | | 181 to 365 days | 200,906 | 319,359 | | Over one year | 224,201 | 165,373 | | **Total** | **911,546** | **1,025,099** | [Management's Discussion and Analysis](index=13&type=section&id=Management%27s%20Discussion%20and%20Analysis) This section provides management's insights into the company's business performance, market conditions, new product development, operational efficiency, financial liquidity, and future outlook [Business Performance](index=13&type=section&id=Business%20Performance) The Group's first-half performance faced challenges due to global economic downturn, high interest rates, and weak consumption, resulting in a 24% decrease in turnover to HKD 1.002 billion and a 33% decline in profit attributable to owners to HKD 50.5 million, prompting cost reduction and sales team restructuring measures - Global economic downturn, US interest rate hikes, suppressed consumption, geopolitical crises, and Sino-US trade disputes were the main external factors contributing to the performance decline[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) - The Group swiftly implemented contingency measures, including cost reduction, sales team expansion, new client development, and new product line launches[44](index=44&type=chunk) [Market Analysis](index=14&type=section&id=Market%20Analysis) All major markets experienced performance declines, with Mainland China seeing a 24% drop due to export slowdown and weak domestic demand, Taiwan a 53% decrease due to reliance on European and US markets, and other overseas countries a 22% decline amid global consumption weakness and high interest rates Turnover by Customer Region | Customer Region | 2023 (HKD millions) | 2022 (HKD millions) | Change | | :--- | :--- | :--- | :--- | | **Mainland China and Hong Kong** | 727 | 953 | -24% | | **Taiwan** | 18 | 38 | -53% | | **Other Overseas Countries** | 257 | 331 | -22% | | **Total** | **1,002** | **1,322** | **-24%** | [Mainland China and Hong Kong](index=14&type=section&id=Mainland%20China%20and%20Hong%20Kong) The Mainland China market faced dual pressures from export deceleration and weak domestic demand, leading to a 24% year-on-year decline in Group turnover to HKD 727 million, partly due to a significant reduction in orders from a major new energy vehicle client compared to the prior year - The Mainland China market faced dual pressures from export deceleration and weak domestic demand, with manufacturing PMI consistently hovering around the **50** boom-bust line[46](index=46&type=chunk)[47](index=47&type=chunk) - A significant order of nearly **RMB 200 million** from BYD in the prior year was a key reason for the substantial year-on-year decline in sales this period[47](index=47&type=chunk) [Taiwan](index=14&type=section&id=Taiwan) Taiwanese clients, primarily supplying European and US markets, were severely impacted by weak consumption and geopolitical instability in those regions, leading to a 53% year-on-year decline in turnover to HKD 18 million for the period - Taiwan market turnover significantly declined by **53%** to **HKD 18 million**, primarily impacted by weak consumption in European and US markets[48](index=48&type=chunk) [Other Overseas Countries](index=14&type=section&id=Other%20Overseas%20Countries) International markets also faced global consumption weakness, high interest rates, and currency depreciation, particularly in export-oriented Southeast Asian countries, resulting in a 22% decline in the Group's international market turnover to HKD 257 million, despite continued investment in potential growth markets - International market turnover decreased by **22%** to **HKD 257 million**, primarily due to global economic weakness[57](index=57&type=chunk) - The Group continues to strengthen market development in adverse conditions, actively investing in countries with growth potential such as India, Brazil, Mexico, and Turkey[50](index=50&type=chunk) [New Technology and Product Development](index=15&type=section&id=New%20Technology%20and%20Product%20Development) To address the market's emphasis on cost-effectiveness, the Group began mass production of new machine models in the first half, including the cost-effective MK6.6 series, high-performance MK6 plus/max series, flagship MK6 PRO, and large two-platen TP SMART, expected to contribute to sales in the second half - In response to the current market environment, the Group launched four new product lines, covering diverse market demands from high cost-effectiveness to flagship high-end models[51](index=51&type=chunk)[52](index=52&type=chunk)[58](index=58&type=chunk) [Production Operations and Cost Control](index=15&type=section&id=Production%20Operations%20and%20Cost%20Control) The Group has completed production base renovation and automation implementation, with plans for further smart factory upgrades, and will continue to strengthen supply chain management and implement Value Improvement (VI) cost control activities to enhance product competitiveness amid insufficient market demand and intense competition - The Group will continue to enhance the automation and intelligence levels of its production bases and deepen the implementation of Total Quality Management (TQM)[58](index=58&type=chunk) - To address market competition, the Group will actively promote comprehensive production operation cost reduction[58](index=58&type=chunk) [Liquidity and Financial Position](index=15&type=section&id=Liquidity%20and%20Financial%20Position) The Group's financial position remains robust, with net current assets of HKD 1.927 billion and a net cash balance of HKD 741 million at period-end, an increase of HKD 70 million from the beginning of the year, and no bank loans, resulting in a zero gearing ratio - As of September 30, 2023, the Group held a net cash balance of **HKD 741 million** with no bank loans, thus reporting a zero gearing ratio[55](index=55&type=chunk)[59](index=59&type=chunk) [Second Half Outlook](index=17&type=section&id=Second%20Half%20Outlook) The second half is expected to remain challenging due to global economic uncertainty, high interest rates, and geopolitical tensions, which will continue to impact consumer confidence and the Chinese economy, though the Group will persist in R&D investment, new product launches, and sales channel strengthening to mitigate market impact and capture future recovery opportunities - Business in the second half is expected to remain constrained by macroeconomic uncertainties, particularly the unfavorable export situation in China[69](index=69&type=chunk) - The Group will continue to invest in R&D, launch market-demanded products, and strengthen its sales team and channel management to prepare for future market recovery[69](index=69&type=chunk) [Dividends and Shareholder Information](index=13&type=section&id=Dividends%20and%20Shareholder%20Information) This section details the interim dividend declaration, record date, and payment schedule for shareholders - The Board declared an interim dividend of **HKD 0.030** per ordinary share (compared to **HKD 0.045** in the prior period)[38](index=38&type=chunk) - The record date for the dividend is December 18, 2023, with payment expected around January 11, 2024[38](index=38&type=chunk) - To be eligible for the dividend, share transfer registration will be suspended from December 15 to 18, 2023[39](index=39&type=chunk) [Corporate Governance and Other Information](index=17&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section outlines the company's adherence to corporate governance principles, the audit committee's review of interim results, and the absence of share repurchases during the period - The company complied with most provisions of the Corporate Governance Code during the reporting period, with two deviations: the Chairman and Managing Director are not subject to rotation and re-election, and the roles of Chairman and Group President are held by the same person (Ms. Chiang Lai Yuen)[70](index=70&type=chunk) - The Audit Committee has reviewed these interim results and continues to review the Group's risk management and internal control systems[71](index=71&type=chunk)[75](index=75&type=chunk) - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[73](index=73&type=chunk)

[Performance Highlights](index=1&type=section&id=%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) This section provides an overview of the group's financial performance and key indicators for the fiscal year [Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) For the fiscal year ended March 31, 2023, the Group's overall performance significantly declined, with revenue, profit before tax, and profit attributable to equity holders all recording double-digit decreases of 15%, 33%, and 39% respectively, reflecting operational pressures Key Financial Indicators for FY2023 | Indicator | 2023 (HKD thousands) | 2022 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | **Revenue (HKD thousands)** | 2,312,584 | 2,728,763 | -15% | | **Profit Before Tax (HKD thousands)** | 158,941 | 238,568 | -33% | | **Profit Attributable to Equity Holders (HKD thousands)** | 130,289 | 213,309 | -39% | | **Total Assets (HKD thousands)** | 4,149,309 | 4,429,327 | -6% | | **Equity Attributable to Shareholders (HKD thousands)** | 3,049,140 | 3,209,049 | -5% | | **Basic Earnings Per Share (HK cents)** | 20.7 | 33.8 | -39% | | **Cash Dividend Per Share (HK cents)** | 11.8 | 16.8 | -30% | | **Average Return on Equity (%)** | 4.2 | 6.9 | -39% | [Consolidated Financial Statements](index=2&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the Group's consolidated income statement, comprehensive income statement, and statement of financial position [Consolidated Income Statement](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) For the current fiscal year, the Group's revenue decreased by 15% year-on-year to HKD 2.313 billion, primarily due to a disproportionate decline in cost of sales relative to revenue, resulting in reduced gross profit and a 40% drop in profit for the year to HKD 129 million Consolidated Income Statement Summary | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 2,312,584 | 2,728,763 | | Gross Profit | 548,052 | 647,275 | | Profit Before Tax | 158,941 | 238,568 | | Profit for the Year | 128,785 | 213,994 | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Despite recording a profit for the year of HKD 129 million, the Group reported a total comprehensive expense of HKD 62.5 million for the current year, primarily due to a HKD 190 million exchange difference loss from translating overseas operations, contrasting sharply with last year's total comprehensive income of HKD 318 million - Total comprehensive income for the year shifted from a **HKD 318 million profit** last year to a **HKD 62.5 million expense**, primarily due to significant exchange differences from translating overseas operations[51](index=51&type=chunk) Composition of Comprehensive Income/Expense | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | | :--- | :--- | :--- | | Profit for the Year | 128,785 | 213,994 | | Other Comprehensive Income/(Expense) | (191,287) | 103,813 | | **Total Comprehensive Income/(Expense) for the Year** | **(62,502)** | **317,807** | [Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of March 31, 2023, the Group's total assets were HKD 4.149 billion, a 6% decrease from the prior year, with net assets at HKD 3.068 billion, down 5% year-on-year, while maintaining a robust financial position with net current assets of HKD 1.990 billion and no interest-bearing bank loans at year-end Key Financial Position Data | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | | :--- | :--- | :--- | | Total Non-current Assets | 1,178,385 | 1,280,106 | | Total Current Assets | 2,970,924 | 3,149,221 | | **Total Assets** | **4,149,309** | **4,429,327** | | Total Current Liabilities | 980,520 | 1,106,731 | | Total Non-current Liabilities | 100,608 | 94,134 | | **Net Assets** | **3,068,181** | **3,228,462** | | **Total Equity** | **3,068,181** | **3,228,462** | [Notes to the Financial Statements](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes on the basis of preparation, accounting policies, segment information, revenue recognition, dividends, earnings per share, and accounts receivable/payable [Basis of Preparation and Accounting Policies](index=6&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) These financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the HKICPA, with the Group's initial adoption of several revised standards this year having no significant impact on its financial position or performance - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, with the initial adoption of certain revised standards this year having no significant financial impact[33](index=33&type=chunk)[56](index=56&type=chunk)[34](index=34&type=chunk) [Operating Segment Information](index=7&type=section&id=2.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) All of the Group's geographical segments experienced revenue declines, with Mainland China and Hong Kong, as the primary revenue source, seeing a 16% drop to HKD 1.671 billion, Taiwan experiencing the most significant decrease at 52%, and other overseas markets remaining relatively stable with a slight 5% dip, while one major customer contributed over 10% of total revenue this year Revenue by Geographical Region | Region | 2023 (HKD thousands) | 2022 (HKD thousands) | | :--- | :--- | :--- | | Mainland China and Hong Kong | 1,670,556 | 1,986,848 | | Taiwan | 63,358 | 132,282 | | Other Overseas Countries | 578,670 | 609,633 | | **Total** | **2,312,584** | **2,728,763** | - For the year ended March 31, 2023, a single customer located in Mainland China and Hong Kong contributed **HKD 351 million** in revenue, accounting for over **10%** of the Group's total revenue[40](index=40&type=chunk) [Revenue](index=9&type=section&id=3.%20%E6%94%B6%E7%9B%8A) The Group's revenue is entirely derived from the sale of injection molding machines and related products, recognized when control of the goods transfers to the customer, typically upon delivery, with payment terms generally ranging from 30 to 180 days after delivery - All of the Group's revenue is derived from the sale of injection molding machines and related products, recognized upon delivery of the goods[63](index=63&type=chunk) - Performance obligations for products are satisfied upon delivery, with payment terms typically ranging from **30 to 180 days**[15](index=15&type=chunk) [Dividends](index=11&type=section&id=6.%20%E8%82%A1%E6%81%AF) The Board recommended a final dividend of HKD 7.3 cents per share, bringing the total annual dividend to HKD 11.8 cents per share, including the interim dividend, representing a 30% decrease from last year's HKD 16.8 cents per share Dividend Per Share Details (HK cents) | Item | 2023 | 2022 | | :--- | :--- | :--- | | Interim Dividend | 4.5 | 5.2 | | Proposed Final Dividend | 7.3 | 11.6 | | **Total Annual Dividend** | **11.8** | **16.8** | - The proposed final dividend is expected to be distributed around September 21, 2023[19](index=19&type=chunk) [Earnings Per Share](index=12&type=section&id=7.%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%AC%8A%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share for the year decreased by 39% from HKD 33.8 cents to HKD 20.7 cents due to a decline in profit attributable to equity holders, with diluted earnings per share remaining identical to basic earnings per share as share options had no dilutive effect - Basic earnings per share is calculated based on the **HKD 130 million** profit for the year and a weighted average of **631 million** ordinary shares outstanding[92](index=92&type=chunk) Earnings Per Share (HK cents) | Item | 2023 | 2022 | | :--- | :--- | :--- | | Basic | 20.7 | 33.8 | | Diluted | 20.7 | 33.8 | [Accounts Receivable and Payable](index=12&type=section&id=%E6%87%89%E6%94%B6%E5%8F%8A%E6%87%89%E4%BB%98%E8%B3%AD%E6%AC%BE) Total trade receivables increased this year, with a higher proportion of receivables over 90 days, while total trade and bills payables decreased, primarily concentrated within 90 days [Trade and Bills Receivables](index=12&type=section&id=8.%20%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E5%8F%8A%E7%A5%A8%E6%93%9A%E8%B3%AD%E6%AC%BE) Net trade receivables increased from HKD 878 million to HKD 1.025 billion, with an aging analysis indicating a higher proportion of receivables over 90 days, suggesting a potential extension of the collection cycle Aging Analysis of Trade Receivables (HKD thousands) | Aging | 2023 | 2022 | | :--- | :--- | :--- | | Within 90 days | 337,415 | 297,820 | | 91 to 180 days | 202,952 | 159,723 | | 181 to 365 days | 319,359 | 232,306 | | Over one year | 165,373 | 187,990 | | **Total** | **1,025,099** | **877,839** | [Finance Lease Receivables](index=14&type=section&id=9.%20%E6%87%89%E6%94%B6%E8%9E%8D%E8%B3%87%E7%A7%9F%E8%B3%83%E8%B3%AD%E6%AC%BE) Net finance lease receivables significantly decreased from HKD 4.68 million to HKD 1.62 million, reflecting a reduction in the scale of finance lease operations Finance Lease Receivables (HKD thousands) | Item | 2023 | 2022 | | :--- | :--- | :--- | | Net Finance Lease Receivables | 1,616 | 4,682 | [Trade and Bills Payables](index=15&type=section&id=10.%20%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E5%8F%8A%E7%A5%A8%E6%93%9A%E8%B3%AD%E6%AC%BE) Total trade and bills payables decreased from HKD 696 million to HKD 623 million, with the aging analysis indicating that the vast majority of payables are due within 90 days Aging Analysis of Trade and Bills Payables (HKD thousands) | Aging | 2023 | 2022 | | :--- | :--- | :--- | | Within 90 days | 370,423 | 384,486 | | 91 to 180 days | 169,849 | 225,315 | | 181 to 365 days | 68,008 | 71,323 | | Over one year | 15,087 | 14,570 | | **Total** | **623,367** | **695,694** | [Management Discussion and Analysis](index=16&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E4%B9%8B%E8%AB%96%E8%BF%B0%E5%8F%8A%E5%88%86%E6%9E%90) This section provides management's insights into the Group's business performance, market conditions, new product development, production capabilities, financial position, and future outlook [Business Performance and Market Analysis](index=16&type=section&id=%E6%A5%AD%E5%8B%99%E8%A1%A8%E7%8F%BE%E8%88%87%E5%B8%82%E5%A0%B4%E5%88%86%E6%9E%90) This fiscal year's performance decline is primarily attributed to severe global economic conditions, where the Russia-Ukraine conflict, high global inflation, and central bank interest rate hikes led to weak consumer demand, significantly impacting export-oriented markets in Mainland China and Taiwan, while internal demand in Mainland China also softened due to a real estate downturn, and growth in individual emerging markets like India and the Middle East could not offset the substantial impact from developed European and American markets - Macroeconomic factors such as global inflation, interest rate hikes, the Russia-Ukraine conflict, and US-China trade tensions have slowed global economic growth, severely impacting the Group's export-oriented business[106](index=106&type=chunk)[80](index=80&type=chunk)[108](index=108&type=chunk) Turnover by Customer Region | Customer Region | 2023 (HKD millions) | 2022 (HKD millions) | Change | | :--- | :--- | :--- | :--- | | Mainland China and Hong Kong | 1,671 | 1,987 | -16% | | Taiwan | 63 | 132 | -52% | | Other Overseas Countries | 579 | 610 | -5% | | **Total** | **2,313** | **2,729** | **-15%** | - The Mainland China market experienced a **16% decline** in performance due to shrinking export orders and weak domestic consumption caused by a sluggish real estate sector[82](index=82&type=chunk)[83](index=83&type=chunk) [New Technology and Product Development](index=18&type=section&id=%E6%96%B0%E6%8A%80%E8%A1%93%E5%8F%8A%E6%96%B0%E7%94%A2%E5%93%81%E9%96%8B%E7%99%BC) Facing market challenges, the Group maintained R&D investment, holding a major online launch event during the year to release six new product series and preview three higher-specification series, with new product lines targeting diverse market demands from cost-effective household items to high-precision automotive components, aiming to enhance product competitiveness - The Group held a major online launch event, introducing **six new product lines and machine models** for various industries and applications, and previewing **three higher-specification new series**[112](index=112&type=chunk) - New product series include the cost-effective MK6.6/A "Artisan" series, the high-precision MK6.6/B "Brilliance" series, the DM III series for high-end multi-material products, and the SPARK series for large, high-precision products[85](index=85&type=chunk) [Production Capacity and Cost Control](index=19&type=section&id=%E7%94%A2%E7%94%9F%E7%94%A2%E8%83%BD%E8%88%87%E6%88%90%E6%9C%AC%E6%8E%A7%E5%88%B6) The Group has completed equipment automation upgrades and expanded capacity at its main production bases, with future plans for automated assembly lines to enhance efficiency, and will strengthen supply chain management and actively pursue cost control initiatives to bolster product competitiveness amidst uncertain demand - The Group has completed renovation and equipment automation upgrades at its main production bases and plans to introduce automated assembly lines and flexible processing production lines[87](index=87&type=chunk) - Facing market uncertainties, the Group will strengthen supply chain management and promote comprehensive production cost reduction to address intense market competition[114](index=114&type=chunk)[133](index=133&type=chunk) [Financial Position Review](index=19&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81) The Group's financial position remains robust, with net current assets of HKD 1.990 billion and net cash of HKD 671 million at year-end, no bank loans, and a one-time gain of HKD 31 million from the return of the Tai Po Industrial Estate factory premises in Hong Kong during the year Liquidity Indicators (HKD millions) | Indicator | 2023 (HKD millions) | 2022 (HKD millions) | | :--- | :--- | :--- | | Net Current Assets | 1,990 | 2,042 | | Cash and Bank Balances | 671 | 700 | | Bank Loans | 0 | 22 | | **Net Cash Balance** | **671** | **678** | - The return of the Tai Po Industrial Estate factory premises and land generated a one-time **HKD 31 million** gain on disposal for the Group[134](index=134&type=chunk) - No gearing ratio is reported as the Group maintains a net cash balance[135](index=135&type=chunk) [Outlook for the Coming Year](index=21&type=section&id=%E4%BE%86%E5%B9%B4%E5%B1%95%E6%9C%9B) Management maintains a cautious outlook for the coming year, anticipating continued severe challenges from weak global consumption, high interest rates, and geopolitical risks, with the Group's strategy focusing on investing in sales and service networks, particularly in strategic overseas markets, and continuously strengthening R&D to enhance competitiveness and prepare for market recovery amidst adversity - Management anticipates very severe challenges in the upcoming fiscal year, primarily due to adverse factors such as weak global consumption, a high-interest rate environment, and geopolitical tensions[121](index=121&type=chunk)[140](index=140&type=chunk) - Response strategies include strengthening sales and service networks, particularly by establishing more local service centers in overseas markets, and continuously increasing R&D investment to launch targeted new products[140](index=140&type=chunk)[122](index=122&type=chunk) [Other Information](index=16&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E8%A8%8A) This section covers details regarding dividends, shareholder matters, and corporate governance practices [Dividends and Shareholder Matters](index=16&type=section&id=%E8%82%A1%E6%81%AF%E5%8F%8A%E8%82%A1%E6%9D%B1%E4%BA%8B%E5%AE%9C) The company proposed a final dividend of HKD 7.3 cents per share, subject to approval at the Annual General Meeting, with the announcement detailing the book closure dates and related arrangements for determining shareholders' entitlement to the dividend - The proposed final dividend of **HKD 7.3 cents per ordinary share** is subject to approval at the Annual General Meeting on August 28, 2023[77](index=77&type=chunk) - To determine eligibility for the final dividend, share transfer registration will be suspended from September 5 to September 7, 2023[104](index=104&type=chunk) - The final dividend is expected to be distributed on September 21, 2023[19](index=19&type=chunk) [Corporate Governance](index=21&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The company complied with the Corporate Governance Code in the Listing Rules this year, with two deviations: the roles of Chairman and Group President are not segregated and are held by the same individual, and the Chairman is not subject to retirement by rotation as per regulations, though the company believes the current structure provides strong and consistent leadership - The company deviates from the Corporate Governance Code as the roles of Chairman and Group President are concurrently held by Ms. Chiang Lai Yuen[141](index=141&type=chunk) - Another deviation is that the Chairman and Managing Director are not required to retire by rotation, which is in accordance with relevant Bermuda company law provisions[123](index=123&type=chunk)