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)

Financial Performance - Revenue for the six months ended September 30, 2022, was HKD 1,321,680, a decrease of 15% compared to HKD 1,557,052 in the same period last year[4] - Profit before tax decreased by 44% to HKD 92,177 from HKD 165,668 year-on-year[4] - Profit attributable to equity holders was HKD 75,104, down 39% from HKD 123,162 in the previous year[4] - Basic earnings per share decreased to HKD 11.9 cents, a decline of 39% from HKD 19.5 cents in the same period last year[4] - Total revenue for the six months ended September 30, 2022, was HKD 1,321,680,000, a decrease of 15.1% from HKD 1,557,052,000 in the same period last year[67] - Adjusted profit before tax for the six months ended September 30, 2022, was HKD 108,997,000, down 39.8% from HKD 180,974,000 in the previous year[67] - The company’s total comprehensive income for the period was not specified, indicating no significant earnings or losses reported[39] Assets and Liabilities - Total assets decreased by 11% to HKD 3,962,299 from HKD 4,459,165 year-on-year[4] - Shareholders' equity decreased by 5% to HKD 2,933,529 compared to HKD 3,082,758 in the previous year[4] - Net current assets decreased by 9% to HKD 1,869,375 from HKD 2,054,677 year-on-year[4] - Non-current assets decreased from HKD 1,280,106,000 to HKD 1,165,408,000, a decline of approximately 9%[23] - Current assets decreased from HKD 3,149,221,000 to HKD 2,796,891,000, a decline of about 11%[23] - Total liabilities decreased from HKD 1,106,731,000 to HKD 927,516,000, a reduction of approximately 16%[23] - Total equity decreased from HKD 3,228,462,000 to HKD 2,950,506,000, a decline of around 9%[24] - Cash and bank balances decreased from HKD 671,911,000 to HKD 574,928,000, a decrease of about 14%[23] Cash Flow and Dividends - The net cash inflow from operating activities for the six months ended September 30, 2022, was HKD 77,470,000, compared to a net outflow of HKD 214,265,000 for the same period in 2021[56] - The company reported a net cash outflow from financing activities of HKD 94,498,000 for the six months ended September 30, 2022, compared to HKD 118,263,000 in the previous year, indicating a reduction of approximately 20.1%[56] - The cash and cash equivalents at the end of the period were HKD 574,928,000, down from HKD 817,649,000 at the end of the previous year, reflecting a decrease of about 29.7%[56] - The company paid dividends amounting to HKD 73,142,000 during the reporting period, slightly higher than HKD 72,511,000 paid in the same period last year[56] - The company declared an interim dividend of HKD 0.045 per share, totaling HKD 28,374,000, compared to HKD 0.052 per share and HKD 32,788,000 in the previous year[79] Revenue Breakdown - Revenue from the China and Hong Kong segment was HKD 952,551,000, a decline of 16.9% compared to HKD 1,145,843,000 in the prior year[67] - Revenue from Taiwan decreased by 56.1% to HKD 38,142,000 from HKD 86,677,000 year-on-year[67] - Revenue from other overseas countries increased slightly by 2.3% to HKD 330,987,000 from HKD 324,532,000[67] - The revenue from the mainland China market decreased by 17% to HKD 953 million, compared to HKD 1,146 million in the previous year[120] - The international market revenue slightly increased by 2% to HKD 331 million, compared to HKD 324 million in the previous year, despite significant regional disparities[122] Operational Challenges - The company experienced disruptions in logistics and supply chains due to COVID-19 lockdowns in Shanghai, impacting component imports and product exports[113] - The manufacturing PMI in mainland China remained below the 50 mark for four months in the first half of the fiscal year, indicating contraction in manufacturing activity[119] - The GDP growth forecast for China was significantly lowered to 4.5%, marking one of the lowest growth rates in nearly 30 years[119] Shareholder Information - The company has issued 630,531,600 shares as of September 30, 2022, with a par value of HKD 0.10 per share[95] - The major shareholder, Chen Hsong Investments, holds 399,641,620 shares, representing approximately 63.38% of the company's issued ordinary shares[160] - David Michael Webb holds 15,147,200 shares (2.40%) and an additional 22,746,800 shares (3.61%) through Preferable Situation Assets Limited[160] Governance and Compliance - The company has complied with all corporate governance codes except for the requirement that each director should retire at least once every three years[165] - The audit committee reviewed the unaudited interim results for the six months ending September 30, 2022, discussing internal controls and financial reporting matters[171] - The company has adopted a code of conduct for directors' securities trading, confirming compliance with the standards set forth in the code[166]

Financial Performance - Revenue for the year ended March 31, 2022, was HK$2,728,763,000, representing a 16% increase from HK$2,360,553,000 in 2021[18]. - Profit before tax decreased by 12% to HK$238,568,000 from HK$270,802,000 in the previous year[18]. - Profit attributable to equity holders of the Company increased by 5% to HK$213,309,000 compared to HK$203,021,000 in 2021[18]. - Total assets rose by 1% to HK$4,429,327,000 from HK$4,378,438,000[18]. - Shareholders' funds increased by 7% to HK$3,209,049,000 from HK$2,996,532,000[18]. - Basic earnings per share improved by 5% to 33.8 HK cents from 32.2 HK cents[18]. - Cash dividends per share also increased by 5% to 16.8 HK cents from 16.0 HK cents[18]. - Net assets per share rose by 6% to HK$5.1 from HK$4.8[18]. - Return on average shareholders' funds decreased to 6.9% from 7.2%[18]. - Return on average total assets declined to 4.8% from 5.2%[18]. Market Performance - The Group's primary market, China, experienced mild turnover growth due to COVID-19 outbreaks and geopolitical tensions affecting exports[27]. - The international turnover recorded material growth despite geopolitical instabilities in the second half of the financial year[27]. - The Group's turnover in Mainland China reached HK$1,987 million, reflecting a 5% increase from HK$1,891 million in the previous year, despite a significant 38% growth in the first half of the financial year[51][52]. - The Taiwan market saw a remarkable 35% growth in turnover, reaching HK$132 million, up from HK$98 million in the previous year, driven by recovering consumption in developed countries[56][59]. - International turnover grew by 64% to HK$610 million, compared to HK$372 million in the previous year, benefiting from the recovery in the European and U.S. markets[61]. Product Development and Innovation - The Group successfully launched the MK6e "Evolution" series, maintaining a similar sales ratio in the small-to-medium tonnage segment[27]. - The company plans to invest more resources into R&D for new products, including the upcoming MK6.6/A "Artisan" series, enhancing the hot-selling MK6 production line[27]. - The Group plans to focus on developing the next generation of advanced two-platen injection moulding machines to enhance production efficiency for customers in the electric vehicle and environmental sectors[31][40]. - The Group's new product, the MK6.6/A Artisan Edition, aims to enhance customer competitiveness and adapt to various application scenarios[58]. - The Group is set to launch the new MK6.6/A "Artisan" models, enhancing the popular MK6 product line to provide better, more affordable options for a wider range of applications[62]. Challenges and Risks - The first half of the financial year experienced robust growth due to strong internal demand and exports in China, while the second half faced significant challenges from global economic shocks and geopolitical tensions[36][40]. - The Group's production capacity was severely impacted by COVID-19 lockdowns in major Chinese cities, particularly in Shenzhen, which disrupted logistics and deliveries[39][40]. - The overall market environment remains uncertain due to ongoing geopolitical tensions and economic instability, which the Group aims to address through strategic realignment and new product development[30][31]. - The Group faced challenges from rising raw material prices and supply chain disruptions due to COVID-19 lockdowns, impacting production and logistics[51][52]. - Economic indicators in China showed a GDP growth rate of only 4.8%, leading to a downward revision of the annual GDP growth target to 5.5%[48]. Corporate Governance - The company has complied with all code provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules, except for specific deviations regarding director retirement and separation of roles[121]. - The board consists of two executive directors and four independent non-executive directors, ensuring a diverse governance structure[125]. - The Company has adopted a Code of Conduct for Securities Transactions by Directors, ensuring compliance with the required standards throughout the year ended 31 March 2022[153]. - The Company has a strong commitment to maintaining high standards of corporate governance to safeguard shareholder interests and enhance performance[121]. - The Company has established appropriate policies to assess and manage risks in pursuit of its strategic objectives[135]. Management and Leadership - Ms. Lai Yuen Chiang has been with the Group since 1988 and became the Chairman in April 2018, overseeing management and business development[107]. - Mr. Stephen Hau Leung Chung joined the Group in 2001 and serves as the Group Chief Officer for Strategy, Sales, and Marketing, bringing over 14 years of experience in various sectors[108]. - The company has a strong board with members holding significant positions in various industries, enhancing its strategic direction and governance[110]. - The Group's leadership is focused on strategic growth and market expansion, leveraging the expertise of its directors[110]. - The board includes independent non-executive directors with extensive backgrounds in finance and management, ensuring diverse perspectives in decision-making[112]. Environmental and Social Responsibility - The Group's environmental policy focuses on minimizing operational impacts on the environment and promoting clean production[94]. - The Group has implemented training programs to raise environmental protection awareness among employees and engage suppliers and customers in environmental initiatives[98]. - The Group's procurement policy is based on maintaining good relationships and communications with high-quality suppliers as strategic partners[89]. - The Group remains committed to compliance with relevant laws and regulations across its operations in Mainland China, Hong Kong, and Taiwan[100]. Financial Management - The Group recorded a net cash position of HK$678 million as of March 31, 2022, down from HK$1,129 million, representing a decrease of HK$451 million[72]. - The Group's income tax expense decreased to HK$25 million from HK$66 million in the previous year, a reduction of HK$41 million[72]. - Capital commitments as of March 31, 2022, amounted to HK$13 million, primarily for upgrading industrial facilities and purchasing production equipment in Mainland China[80]. - The Group's borrowings in Japanese yen were HK$22 million as of March 31, 2022, down from HK$24 million in the previous year[82]. - The Group has pledged bank deposits of HK$27 million as of March 31, 2022, compared to HK$52 million in the previous year[77].

Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 1,557,052,000, representing a 51% increase from HKD 1,030,042,000 in the same period last year[5]. - Profit before tax increased by 64% to HKD 165,668,000, compared to HKD 101,269,000 in the previous year[5]. - Profit attributable to equity holders of the company rose by 68% to HKD 123,162,000, up from HKD 73,187,000 year-on-year[5]. - Basic earnings per share increased to HKD 0.195, a 68% rise from HKD 0.116 in the prior year[5]. - The average return on equity improved to 4.1%, up from 2.7% in the previous year, marking a 52% increase[5]. - The average return on total assets rose to 2.8%, a 40% increase from 2.0% in the previous year[5]. - The total tax expense for the six months ended September 30, 2021, was HKD 40,741,000, compared to HKD 27,948,000 in the previous year[71]. - The group did not recognize any Hong Kong profits tax due to no taxable profits arising from Hong Kong during the period[70]. Assets and Liabilities - Total assets grew by 15% to HKD 4,459,165,000, compared to HKD 3,866,656,000 in the previous year[5]. - Shareholders' equity increased by 10% to HKD 3,082,758,000 from HKD 2,808,113,000 year-on-year[5]. - Net current assets increased by 9% to HKD 2,054,677,000 from HKD 1,886,356,000 year-on-year[5]. - Non-current assets increased to HKD 1,159,783,000 as of September 30, 2021, up from HKD 1,098,416,000 as of March 31, 2021, representing a growth of 5.6%[30]. - Current liabilities decreased to HKD 1,244,705,000 from HKD 1,255,722,000, showing a reduction of 0.9%[30]. - Total equity increased to HKD 3,101,281,000 as of September 30, 2021, up from HKD 3,013,046,000, representing a growth of 2.9%[31]. Cash Flow and Investments - For the six months ended September 30, 2021, the net cash outflow from operating activities was HKD (214,265,000), compared to a cash inflow of HKD 141,766,000 in the same period last year[57]. - The company reported a net cash outflow from investing activities of HKD (13,657,000) for the period, compared to HKD (4,312,000) in the previous year[57]. - Financing activities resulted in a net cash outflow of HKD (118,263,000), significantly higher than HKD (35,472,000) in the prior year[57]. - The total cash and cash equivalents at the end of the period were HKD 817,649,000, down from HKD 1,136,492,000 at the end of the previous year[57]. - The company has allocated HKD 26,130,000 for deposits on property, plant, and equipment, up from HKD 22,879,000, indicating ongoing investment in infrastructure[30]. - The company plans to continue its investment in property, plant, and equipment, with expenditures of HKD (38,406,000) during the period[57]. Market and Segment Performance - The revenue from the China and Hong Kong segment was HKD 1,145,843,000, up 38% from HKD 829,192,000 in the same period last year[67]. - The Taiwan segment reported revenue of HKD 86,677,000, a significant increase from HKD 39,233,000 in the previous year[67]. - The profit before tax from the overseas segment was HKD 22,867,000, compared to HKD 9,737,000 in the previous year, marking a substantial growth[67]. - International market revenue doubled to HKD 324 million, up from HKD 162 million, driven by strong demand in Europe and the Americas[111]. Challenges and Economic Conditions - The company faced challenges due to a rapid increase in the Producer Price Index (PPI) in mainland China, which rose over 10% within six months, impacting manufacturing costs and overall profit levels[104]. - The company experienced a decline in industrial production in mainland China due to high raw material prices and power restrictions, with GDP growth dropping from 7.9% in Q2 to 4.9% in Q3 of the fiscal year[104]. - The market environment for the second half of the fiscal year is expected to be extremely unpredictable, influenced by raw material price fluctuations, US-China trade disputes, and the development of COVID-19 variants[124]. Corporate Governance and Management - The company has complied with all provisions of the corporate governance code during the six-month period ending September 30, 2021, with exceptions noted[149]. - The chairman and group president roles are held by the same individual, which is deemed suitable for the company due to her skills and experience[151]. - The audit committee and management reviewed the unaudited interim results for the six-month period ending September 30, 2021, discussing internal controls and financial reporting matters[156]. Employee and Shareholder Information - The total number of full-time employees increased to approximately 2,400 as of September 30, 2021, up from 2,200 in 2020, reflecting the company's commitment to competitive compensation and employee development[123]. - The company has issued 630,531,600 ordinary shares, with a par value of HKD 0.10 per share, unchanged from the previous period[86]. - The major shareholder, Zhenxiong Investment, holds 399,641,620 shares, accounting for 63.38% of the company[143].

震雄集團有限公司 CHEN HSONG HOLDINGS LIMITED (於百慕逵註冊成立之有限公司) (Incorporated in Bermuda with limited liability) (股份代號 Stock Code: 00057) 2020/21 ANNUAL REPORT 年報 UM CHEN HSONG JM120-MK6a JETMASTER ■ JI SAEN HISONS प्रति ulu 財務摘要 Financial Highlights 截至二零二一年三月三十一日止年度 Year ended 31 March 2021 | --- | --- | --- | --- | --- | |------------------------|--------------------------------------------|-----------|-----------|---------------| | | | 2021 | 2020 | 變動 \nChange | | | | | | | | 業績摘要 （港幣千元） | RESULTS HIGHLIGHTS (HK$' ...

Financial Performance - For the six months ended September 30, 2020, the company reported a revenue of HKD 1,030,042,000, representing a 32% increase from HKD 781,360,000 in the same period last year[4] - The profit attributable to equity holders for the same period was HKD 73,187,000, a significant increase of 115% compared to HKD 34,101,000 in the previous year[4] - Basic earnings per share rose to HKD 11.6 cents, up 115% from HKD 5.4 cents year-on-year[3] - The gross profit margin for the period was approximately 27.1%, compared to 23.3% in the previous year[30] - The company reported a pre-tax profit of HKD 101,269,000, which is a 102% increase from HKD 50,158,000 year-on-year[4] - The total comprehensive income for the period was HKD 178,716,000, compared to a loss of HKD 80,720,000 in the previous year[32] - The group's profit before tax for the six months ended September 30, 2020, was HKD 73,187,000, compared to HKD 34,101,000 in 2019, representing a significant increase of 114%[66] - The adjusted profit before tax for the company was HKD 101,269,000 for the six months ended September 30, 2020, compared to HKD 50,158,000 in 2019, indicating a growth of 101.5%[59] Assets and Liabilities - The company's total assets increased to HKD 3,866,656,000, reflecting a 13% growth from HKD 3,414,096,000[4] - Current assets increased to HKD 2,832,279,000 from HKD 2,431,450,000, representing a significant growth of about 16.5%[35] - The total liabilities increased to HKD 1,044,309,000 from HKD 764,263,000, indicating a rise of approximately 37%[36] - The company's net assets increased to HKD 2,822,347,000 from HKD 2,678,310,000, showing a growth of around 5.4%[36] - As of September 30, 2020, non-current assets totaled HKD 1,034,377,000, an increase from HKD 1,011,123,000 as of March 31, 2020, reflecting a growth of approximately 2.6%[35] Cash Flow and Dividends - The company declared a cash dividend of HKD 4.5 cents per share, which is a 29% increase from HKD 3.5 cents in the prior year[3] - The company reported a net cash inflow from operating activities of HKD 141,766,000 for the six months ended September 30, 2020, compared to HKD 139,318,000 in the same period of 2019, reflecting a slight increase of 1.05%[49] - The company experienced a net increase in cash and cash equivalents of HKD 101,982,000, compared to HKD 113,967,000 in the previous year[49] - The cash and cash equivalents at the end of the period were HKD 1,136,492,000, compared to HKD 754,729,000 in 2019, showing an increase of 50.6%[49] Market Performance - Revenue from the China and Hong Kong segment reached HKD 829,192,000, a significant increase from HKD 507,823,000 in 2019, representing a growth of 63.2%[59] - Revenue from Taiwan decreased by 43% to HKD 39 million, down from HKD 68 million in 2019[91][96] - Revenue from other overseas markets fell by 21% to HKD 162 million, down from HKD 205 million in the previous year[91][98] - The group achieved over 60% growth in the Chinese market, with revenue reaching HKD 829 million, up from HKD 508 million in the previous year[90][95] Operational Efficiency - The group implemented measures to enhance production efficiency, resulting in a total production value increase of over 40% compared to the same period last year[100] - The new MK6e series injection molding machines accounted for nearly half of the group's sales in the small and medium-sized injection molding machine segment[94] - The SPARK series of all-electric injection molding machines gained significant market acceptance, contributing to the group's growth during the pandemic[99] Shareholder Information - The company reported a total of 399,641,620 shares held by major shareholder Zhenxiong Investment, representing approximately 63.38% of the issued ordinary shares[126] - The company has no outstanding stock options as of September 30, 2020, and no options were granted, exercised, or lapsed during the six-month period[123] - The company’s major shareholders include Schroders Plc, holding 50,012,000 shares, which is approximately 7.93% of the total[126] Corporate Governance - The company has complied with all provisions of the corporate governance code as of September 30, 2020, except for deviations related to the rotation of directors every three years[130] - The chairman and group president roles are held by the same individual, which the company deems suitable for providing strong leadership and effective decision-making[132] - The audit committee and management reviewed the unaudited interim results for the six months ending September 30, 2020, including discussions on internal controls and financial reporting[138] Future Outlook - The outlook for the second half of the year remains optimistic due to effective pandemic control and the promotion of the domestic circulation economy[110] - The group aims to enhance market share and competitiveness despite ongoing global economic uncertainties[110] - The group plans to continue developing new materials and technologies, including high-end injection molding processes for the 5G and electronics industries[99]

Financial Performance - Revenue for the year ended March 31, 2020, was HK$1,513,363,000, a decrease of 7% from HK$1,635,938,000 in 2019[3] - Profit attributable to equity holders of the Company increased by 4% to HK$93,651,000 from HK$90,279,000 in the previous year[3] - Basic earnings per share rose by 4% to 14.9 HK cents from 14.3 HK cents[4] - Total assets remained stable at HK$3,442,573,000, a slight decrease of 0% from HK$3,451,745,000[3] - Net current assets increased by 9% to HK$1,765,510,000 from HK$1,612,556,000[3] - For the financial year ended March 31, 2020, the Group reported total turnover of HK$1,513 million, a decline of 7% compared to HK$1,636 million in 2019[20] - Profit attributable to equity holders increased by 4% to HK$94 million, up from HK$90 million in the previous year[20] - The Group's basic earnings per share increased to HK14.9 cents from HK14.3 cents in the previous year[36] - The Group's profit attributable to equity holders was HK$35 million, down from HK$58 million in 2019, after accounting for special items such as foreign exchange losses and one-time gains from property sales[78] Dividends - Cash dividends per share increased by 29% to 9.0 HK cents from 7.0 HK cents in 2019[4] - The company proposed a special final dividend of 1.7 HK cents, contributing to a total annual dividend of 9.0 HK cents[6] - The Board recommended a special final dividend of HK1.7 cents, bringing the total full-year dividend payout to HK9.0 cents, compared to HK7.0 cents in 2019[21] - The Board recommended a final dividend of HK3.8 cents per share and a special final dividend of HK1.7 cents per share for this financial year[38] Impact of COVID-19 - The management anticipated a recovery in the second half of the fiscal year following a trade agreement between the US and China, but was impacted by the COVID-19 pandemic[18] - The company faced significant challenges due to global economic conditions, particularly from the US-China trade tensions and the COVID-19 outbreak[18] - The economic environment in 2020 was severely affected by the COVID-19 pandemic, with significant disruptions to consumption and industrial production in China[37] - The COVID-19 pandemic caused a significant impact, wiping out two to three months of global consumption and leading to serious GDP drops in many countries[43] - Production facilities were shut down for nearly a month due to the pandemic, but the Group was among the first to resume operations in mid-February 2020[74] - The Group's efforts in customer engagement during the pandemic helped mitigate the impact on turnover, demonstrating strong support from its customer base[59] Market Performance - The Group's sales performance in the first half of the financial year declined by 12% year-on-year, but the new MK6e product line saw strong sales growth in Q3, compensating for most of the first half's decline[44] - The Group's turnover in Mainland China and Hong Kong for the year was HK$1,039 million, a decrease of 2% from HK$1,062 million in 2019[49] - The Group's turnover from Taiwan dropped by 22% to HK$98 million, down from HK$125 million in 2019[49] - The Group's turnover from other overseas countries decreased by 16% to HK$376 million, compared to HK$449 million in 2019[49] - The Group's China business experienced a 13% decline in the first half of the year, but managed to achieve only a 2% overall decline for the year due to strong support from customers[56] - International turnover dropped by 16% to HK$376 million from HK$449 million in 2019 due to shipping disruptions caused by the COVID-19 pandemic[66] - Taiwan market turnover decreased by 22% to HK$98 million from HK$125 million in 2019, reflecting the impact of global lockdowns on export activities[67] Strategic Initiatives - The Group plans to focus on developing specialized solutions for specific application segments, including the "TP ii" second-generation large machines and the MK6e series for electric appliances[29] - The Group aims to enhance competitiveness by investing in new technologies, improving quality, and expanding market share despite ongoing uncertainties from the trade war and pandemic[33] - The Group plans to continue investing in specialized, value-creating solutions to meet diverse industry needs, aligning with the Chinese government's technological development roadmap[73] - The Group's strategic direction is "Customers First," focusing on customer needs during the pandemic to strengthen relationships[118] Corporate Governance - The Company has complied with all provisions of the Corporate Governance Code, except for specific deviations regarding director rotation[140] - The Company recognizes the importance of good corporate governance practices in safeguarding shareholder interests and enhancing performance[140] - The Company is committed to maintaining high standards of corporate governance practices[140] - The roles of Chairman and Chief Executive Officer are held by the same individual, which is considered appropriate for the Group[140] - The Company has a diverse board with members having international experience across various sectors[143] - The Company has established a formal and transparent arrangement for considering matters related to financial reporting and overseeing the relationship with external auditors[192] Employee Management - The Group had approximately 2,200 full-time employees as of March 31, 2020, down from 2,300 in 2019[113] - The Group's employee remuneration and welfare packages are competitive, with performance-based rewards[115] - The Group conducted regular training programs to enhance staff quality and teamwork[116] Financial Management - The Group maintained a prudent financial management strategy, ensuring sufficient liquidity to meet funding requirements for investments and operations[85] - Cash and bank balances increased to HK$1,018 million from HK$688 million, an increase of HK$330 million year-over-year[82] - The Group recorded a net cash position of HK$919 million, up from HK$614 million, reflecting an increase of HK$305 million[82] - Bank borrowings rose to HK$99 million from HK$74 million, an increase of HK$25 million, utilized for general working capital[82] Risk Management - The board is responsible for risk assessment and management in pursuit of strategic objectives[154] - The Group's annual plan on risk management control was reviewed[197] - The internal audit findings and management responses were evaluated[197]

Financial Performance - The company's revenue for the six months ended September 30, 2019, was HKD 781,360,000, a decrease of 12% compared to HKD 888,280,000 in the same period last year[4]. - The profit attributable to equity holders for the same period was HKD 34,101,000, representing a 70% increase from HKD 20,051,000 year-on-year[20]. - Basic earnings per share increased by 74% to HKD 5.4 compared to HKD 3.1 in the previous year[3]. - The average return on equity rose to 1.3%, an 86% increase from 0.7% in the previous year[3]. - The gross profit margin for the period was approximately 23.3%, down from 22.8% in the previous year[21]. - The company reported a pre-tax profit of HKD 50,158,000, an increase of 58% from HKD 31,785,000 in the previous year[21]. - The company’s total comprehensive income for the period was HKD 20,051,000, reflecting a significant change from the previous year[41]. - Profit attributable to equity holders increased by 70% to HKD 341 million, up from HKD 201 million in the previous year, primarily due to reduced foreign exchange losses and improved overall gross margin[114]. Assets and Liabilities - The total assets as of September 30, 2019, were HKD 3,414,096,000, a slight increase of 2% from HKD 3,331,706,000[4]. - The net cash position increased to HKD 1,585,330,000, reflecting a 2% growth from HKD 1,560,535,000[4]. - Total liabilities increased to HKD 678,992,000, representing an increase of 11.2% from HKD 610,515,000[24]. - The total equity attributable to equity holders of the company was HKD 2,660,984,000, a decrease of 3.8% from HKD 2,766,076,000[26]. - The net asset value decreased to HKD 1,585,330,000, down 1.7% from HKD 1,612,556,000[24]. - The company reported a decrease in trade receivables to HKD 24,673,000, down 19.9% from HKD 30,779,000[24]. - The company has a total of HKD 518,431,000 in inventory, down 6.2% from HKD 552,996,000[24]. - The total trade and bills receivables stood at HKD 910,737,000 as of September 30, 2019, compared to HKD 915,098,000 on March 31, 2019, a slight decrease of 0.5%[89]. Cash Flow and Dividends - The net cash inflow from operating activities for the six months ended September 30, 2019, was HKD 139,318,000, compared to a net outflow of HKD 77,132,000 in the same period of 2018[45]. - The company paid dividends of HKD 25,221,000 during the period, compared to HKD 31,527,000 in the previous year[45]. - The company declared a cash dividend of HKD 3.5 per share, up 17% from HKD 3.0 per share in the previous year[3]. - The interim dividend declared for the six months ended September 30, 2019, is HKD 0.035 per share, up from HKD 0.03 per share in 2018, totaling HKD 22,069,000 compared to HKD 18,916,000 in the previous year, representing a 16.0% increase[83]. Market Conditions and Business Strategy - The group experienced a slowdown in business performance due to global trade weakness, tensions in US-China relations, and a weakening domestic economy in China[114]. - The group noted that China's industrial output growth rate fell to below 5% year-on-year in July 2019, marking the slowest growth in many years[114]. - The GDP growth rate in China for Q3 2019 fell to 6%, below market expectations, prompting the central government to implement tax cuts to stimulate the economy[116]. - The company is focusing on expanding its market presence and developing new technologies to enhance its competitive edge[27]. - The company plans to enhance market share with the new MK6e "evolution" model and improve overall performance in the second half of the year[135]. Accounting and Compliance - The adoption of HKFRS 16 resulted in an increase in lease liabilities by HKD 2,210,000[55]. - The right-of-use assets increased by HKD 37,823,000, while prepaid land lease payments decreased by HKD 34,206,000[55]. - The company confirmed compliance with the corporate governance code during the six months ended September 30, 2019, with some deviations noted[157]. - The audit committee reviewed the unaudited interim results for the six months ended September 30, 2019[163]. Employment and Shareholder Information - The total number of full-time employees was approximately 2,200 as of September 30, 2019, a decrease from 2,300 in 2018[134]. - Major shareholder Chen Hsong Investment holds 399,641,620 shares, representing 63.38% of the issued ordinary shares[152]. - The company did not grant or exercise any share options during the six months ended September 30, 2019[149].