Revenue Performance - For the six months ended 30 September 2023, revenue from property sales was HK$42,544,000, an increase of 26.5% compared to HK$33,627,000 in the same period of 2022[9]. - Revenue from contact lens sales and leasing and trading of computer equipment reached HK$40,066,000, up 51.8% from HK$26,376,000 in the previous year[9]. - For the six months ended September 30, 2023, total revenue was HK$87,203, a decrease from HK$140,220 in the same period of 2022, representing a decline of approximately 37.8%[88]. - The external sales revenue from the contact lens business was HK$26,376 for the reporting period[88]. - Revenue for the six months ended September 30, 2023, was HK$140,220,000, representing an increase from HK$87,203,000 in the same period of 2022, a growth of 60.7%[147]. Financial Losses - The company reported a loss attributable to owners of HK$64,879,000 for the six months ended 30 September 2023, compared to a loss of HK$10,541,000 in the same period of 2022, indicating a significant increase in losses[36]. - Loss before taxation for the six months was HK$75,683,000, compared to a loss of HK$36,021,000 in the same period last year, reflecting a worsening of 109.5%[147]. - The company reported a loss for the period of HK$88,428,000, significantly higher than the loss of HK$1,216,000 in the same period of 2022[147]. - Total comprehensive expense attributable to owners of the Company was HK$64,278,000 for the six months ended September 30, 2023, compared to HK$26,331,000 for the same period in 2022[164]. Asset and Liability Management - As of 30 September 2023, the group had net current liabilities of approximately HK$241,845,000[2]. - Current liabilities exceeded current assets, resulting in net current liabilities of HK$241,845,000 as of September 30, 2023, compared to HK$225,879,000 as of March 31, 2023[151]. - The company's net assets decreased to HK$556,188,000 as of September 30, 2023, down from HK$622,428,000 as of March 31, 2023[151]. - Borrowings as of September 30, 2023, were HK$649,947,000, a decrease from HK$691,754,000 as of March 31, 2023[150]. Impairment and Depreciation - Impairment loss on properties held for sale was recorded at HK$9,880,000, indicating a new challenge for the company[26]. - Depreciation of property, plant, and equipment amounted to HK$54,371,000, which is a significant increase from HK$27,760,000 in the same period last year[26]. - The company incurred a depreciation expense of HK$210,119,000 for property, plant, and equipment during the reporting period[52]. - Impairment losses on properties held for sale amounted to HK$9,880,000, while impairment losses on property, plant, and equipment were HK$17,349,000[147]. Cash Flow and Interest Income - Bank interest income increased significantly to HK$5,481,000, compared to HK$1,237,000 in the previous year, marking a growth of 344.5%[13]. - Cash and bank balances increased to HK$331,918,000 as of September 30, 2023, compared to HK$268,997,000 as of March 31, 2023[150]. - The Group's interest receivables as of September 30, 2023, were HK$6,524, slightly down from HK$6,944 as of March 31, 2023[93]. Equity and Dividends - No interim dividend was declared for the reporting period, consistent with the previous year where no dividend was paid or proposed[37]. - The company reported a basic and diluted loss per share of HK$0.32 for the six months ended September 30, 2023, compared to HK$0.05 for the same period in 2022[164]. - The company’s total equity decreased to HK$556,188,000 as of September 30, 2023, from HK$622,428,000 as of March 31, 2023[151]. Investments and Capital Expenditures - The company made prepayments for machinery and equipment amounting to HK$113,766,000 and server equipment of HK$105,702,000 during the reporting period[50]. - The Group has entered into agreements to acquire a contact lens production line in China for a total consideration of approximately HK$356,036,000, with HK$317,172,000 already paid as of the reporting date[90]. - The Group has invested a total of RMB36,808,000 (approximately HK$40,490,000) in developing cross-border settlement systems and platforms[64].

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) During the reporting period, the company's revenue increased by 60.8% to HKD 140.22 million, driven by contact lens and computer equipment leasing businesses, but net loss significantly widened to HKD 88.43 million due to asset impairment and increased financing costs, with basic loss per share expanding from HKD 0.05 cents to HKD 0.32 cents Key Consolidated Statement of Profit or Loss Data (For the six months ended September 30) | Metric | 2023 (Thousand HKD) | 2022 (Thousand HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Revenue** | 140,220 | 87,203 | +60.8% | | **Gross Profit** | 20,061 | 3,551 | +464.9% | | **Loss Before Tax** | (75,683) | (36,021) | +100.1% | | **Loss for the Period** | (88,428) | (1,216) | +7172.0% | | **Loss Attributable to Owners of the Company** | (64,879) | (10,541) | +515.5% | | **Basic Loss Per Share (HK cents)** | (0.32) | (0.05) | +540.0% | - The significant increase in loss during the reporting period was primarily due to: 1) substantial impairment losses on production equipment and inventories in the contact lens business; 2) impairment of properties held for sale due to a weak property market; 3) inability to capitalize financing costs as major construction projects were completed; and 4) the absence of a significant tax credit present in the prior period[164](index=164&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of September 30, 2023, the company's total assets were HKD 2.29 billion, total liabilities HKD 1.73 billion, and net assets (total equity) HKD 556.19 million, all decreasing from March 31, 2023, with a net current liability position of approximately HKD 241.85 million indicating short-term liquidity pressure Key Financial Position Data | Metric | September 30, 2023 (Thousand HKD) | March 31, 2023 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | 2,287,700 | 2,378,267 | -3.8% | | **Total Liabilities** | 1,731,512 | 1,755,839 | -1.4% | | **Net Assets (Total Equity)** | 556,188 | 622,428 | -10.6% | | **Net Current Liabilities** | (241,845) | (225,879) | -7.1% | - Despite the net current liabilities, the Directors believe the Group has sufficient working capital for the next 12 months, considering good banking relationships and internally generated funds, thus the financial statements are prepared on a going concern basis[20](index=20&type=chunk)[41](index=41&type=chunk) [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) [Segment Reporting](index=7&type=section&id=Item%204.%20Segment%20Reporting) The Group operates six business segments, with the computer equipment leasing and trading business being the sole profitable segment, contributing HKD 10.92 million in profit, while the contact lens and property development segments incurred the largest losses of HKD 48.97 million and HKD 29.34 million respectively, with these three segments also being the primary revenue sources - The Group primarily operates six business segments: (1) Property Development; (2) Hotel Business; (3) International Business Settlement; (4) Contact Lens Business; (5) Leasing and Trading of Computer Equipment; and (6) Financing Business[44](index=44&type=chunk)[72](index=72&type=chunk) Revenue and Results by Business Segment (For the six months ended September 30) | Business Segment | 2023 Revenue (Thousand HKD) | 2023 (Loss)/Profit (Thousand HKD) | 2022 Revenue (Thousand HKD) | 2022 (Loss)/Profit (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Property Development | 42,544 | (29,337) | 33,627 | (4,464) | | Hotel Business | – | – | – | – | | International Business Settlement | – | (5,030) | – | (4,078) | | Contact Lens Business | 40,066 | (48,966) | 26,376 | (22,249) | | Leasing and Trading of Computer Equipment | 57,610 | 10,922 | 27,200 | 2,007 | | Financing Business | – | 154 | – | (654) | | **Total** | **140,220** | **(72,257)** | **87,203** | **(29,438)** | Revenue from External Customers and Non-Current Assets by Geographical Region | Region | 2023H1 Revenue (Thousand HKD) | 2022H1 Revenue (Thousand HKD) | Non-Current Assets as of Sep 30, 2023 (Thousand HKD) | Non-Current Assets as of Mar 31, 2023 (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 57,610 | 27,200 | 141,407 | 181,117 | | China | 82,610 | 60,003 | 494,827 | 556,788 | | **Total** | **140,220** | **87,203** | **636,234** | **737,905** | [Management Discussion and Analysis](index=24&type=section&id=Management%20Discussion%20and%20Analysis) [Overall Performance Review](index=24&type=section&id=Overall%20Performance%20Review) During the reporting period, Group revenue grew by 60.8% to HKD 140.22 million, with gross profit margin significantly improving from 4.07% to 14.31% due to increased contact lens production line utilization, yet net loss dramatically widened from HKD 1.22 million to HKD 88.43 million primarily due to asset impairment losses and expensed financing costs - Revenue growth was primarily driven by increased contributions from the contact lens segment and the leasing and trading of computer equipment segment[182](index=182&type=chunk) - Gross profit margin significantly improved to **14.31%** (compared to **4.07%** in the prior period), mainly due to a substantial increase in contact lens production line utilization returning to normal levels post-pandemic[163](index=163&type=chunk) - The expanded loss for the period was mainly attributable to: **HKD 27.16 million** impairment of contact lens related assets, **HKD 9.88 million** impairment of properties held for sale, **HKD 28.03 million** in financing costs that could not be capitalized, and the absence of a **HKD 36.08 million** tax credit present in the prior period[164](index=164&type=chunk) [Business Review and Prospects](index=25&type=section&id=Business%20Review%20and%20Prospects) Business segments showed mixed performance, with computer equipment leasing and trading becoming a core growth and profit driver with plans for reinvestment, while the contact lens business saw sales rebound after strategic investment but still faced losses, property development suffered from market weakness and impairments, international business settlement stalled due to geopolitical factors and subsidiary liquidation, and the financing business adopted a cautious approach with no new loans [Property Development and Hotel Business](index=26&type=section&id=Property%20Development%20and%20Hotel%20Business) The property development business, centered on the 'Zhenghe City' project in Liuzhou, Guangxi, generated HKD 42.54 million in revenue from approximately 6,000 square meters of sales, but segment loss expanded to HKD 29.34 million due to HKD 28.03 million in expensed financing costs and HKD 9.88 million in impairment losses from a weak market, while the hotel business is expected to commence operations in 2024 - The increase in segment loss was primarily due to the expensing of financing costs and impairment losses on properties held for sale[237](index=237&type=chunk) - An impairment loss of **HKD 9.88 million** was recognized after external expert assessment, as the net realizable value was below the carrying amount[209](index=209&type=chunk) - Construction of the hotel business building is complete, with operations expected to commence in **2024**, generating revenue[300](index=300&type=chunk) [International Business Settlement](index=25&type=section&id=International%20Business%20Settlement) Affected by the global political environment and subsidiary liquidation, this business segment made no substantial progress and generated no revenue during the reporting period, incurring a segment loss of HKD 5.03 million primarily from rent and staff costs, while the company continues to monitor opportunities for alternative clearing and settlement channels arising from de-dollarization trends - Due to geopolitical conflicts and limited development of central bank digital currencies, the settlement platform project made no substantial progress, with no additional investment during the period[185](index=185&type=chunk) - Due to a winding-up petition filed against IBS Hong Kong, a wholly-owned Lithuanian subsidiary engaged in settlement business, this segment generated no revenue during the period, resulting in a segment loss of **HKD 5.03 million**[186](index=186&type=chunk)[276](index=276&type=chunk) [Contact Lens Business](index=30&type=section&id=Contact%20Lens%20Business) The contact lens business, which previously underperformed, introduced strategic investor Aier Eye Hospital Group in July 2023, leading to increased sales revenue of HKD 40.07 million due to market recovery and operational improvements, but segment loss remained high at HKD 48.97 million due to salaries, depreciation, R&D, and production equipment impairment, with the Group's stake to decrease to 34% post-transaction - The Group introduced Aier Eye Hospital Group, a listed company, as a strategic investor, selling part of its equity and injecting capital, with the Group's shareholding to decrease to **34%** upon completion of the transaction[240](index=240&type=chunk)[294](index=294&type=chunk) Contact Lens Business Performance | Metric | 2023H1 (Thousand HKD) | 2022H1 (Thousand HKD) | | :--- | :--- | :--- | | Sales Revenue | 40,066 | 26,376 | | Segment Loss | (48,966) | (22,249) | - The first installment of investor capital injection has been received, with the transaction expected to be completed in early **2024**[212](index=212&type=chunk) [Leasing and Trading of Computer Equipment](index=31&type=section&id=Leasing%20and%20Trading%20of%20Computer%20Equipment) This business performed strongly, becoming a primary revenue and profit source for the Group, with income from leasing data storage equipment (servers) reaching HKD 57.61 million, more than doubling year-on-year, and segment profit at HKD 10.92 million; the company reinvested rental income to acquire an additional 450 servers, bringing the total to 1,410, all fully leased, providing stable income Leasing and Trading of Computer Equipment Business Performance | Metric | 2023H1 (Thousand HKD) | 2022H1 (Thousand HKD) | | :--- | :--- | :--- | | Revenue | 57,610 | 27,200 | | Segment Profit | 10,922 | 2,007 | - The company reinvested rental income to acquire an additional **450** servers, bringing the total to **1,410** units, all fully leased, providing a stable income source for the Group[260](index=260&type=chunk) - The company is optimistic about the demand for secure, encrypted cloud storage and is monitoring Hong Kong's cryptocurrency-friendly policies, potentially leading to further involvement in cryptocurrency trading and asset production in the future[242](index=242&type=chunk)[301](index=301&type=chunk) [Financing Business](index=32&type=section&id=Financing%20Business) Given macroeconomic uncertainties, the Group adopted a cautious strategy for its financing business, issuing no new loans during the reporting period, while continuing to monitor fully impaired overdue loans by inventorying collateral and exploring recovery possibilities - Due to the uncertain macroeconomic environment, the Group adopted a cautious strategy for its future financing business, with no new loans issued during the period[261](index=261&type=chunk) - For impaired overdue loans, the company continues to monitor collateral status and explore recovery opportunities[216](index=216&type=chunk) [Financial Review](index=33&type=section&id=Financial%20Review) As of the reporting period end, the Group recorded net current liabilities of HKD 241.85 million and a current ratio of 0.85, indicating short-term liquidity strain; total borrowings were approximately HKD 825 million, with a debt-to-equity ratio of 1.48, slightly up from the period start, funded primarily by internal resources, borrowings, and past equity financing, with approximately HKD 24.38 million in unutilized bank facilities Key Financial Ratios | Metric | September 30, 2023 | March 31, 2023 | | :--- | :--- | :--- | | Current Ratio | 0.85 | 0.86 | | Debt-to-Equity Ratio (Total Borrowings/Total Equity) | 1.48 | 1.45 | - As of September 30, 2023, bank balances and cash were approximately **HKD 332 million**, with net current liabilities of approximately **HKD 241.85 million**[247](index=247&type=chunk) - Total borrowings were approximately **HKD 825 million**, with **85%** due within one year; approximately **HKD 358 million** of property, plant, and equipment were pledged as collateral for borrowings[248](index=248&type=chunk)[251](index=251&type=chunk) [Other Disclosures](index=35&type=section&id=Other%20Disclosures) [Dividend Policy](index=35&type=section&id=Dividend) The Board of Directors has resolved not to declare any interim dividend for the period ended September 30, 2023 - The Board has resolved not to declare any interim dividend for the reporting period (**2022**: nil)[110](index=110&type=chunk)[254](index=254&type=chunk) [Corporate Governance](index=36&type=section&id=Corporate%20Governance) The company largely complied with the Corporate Governance Code during the reporting period, with a key deviation being the vacant positions of Chairman and Chief Executive Officer, whose responsibilities are collectively handled by the executive directors, and the Audit Committee has reviewed the interim financial information - The company deviated from the Corporate Governance Code as both the Chairman and Chief Executive Officer positions are vacant, with their responsibilities collectively undertaken by the executive directors[305](index=305&type=chunk)[307](index=307&type=chunk) - The company's Audit Committee, comprising three independent non-executive directors, has reviewed this interim financial report and deemed it properly prepared with sufficient disclosures[311](index=311&type=chunk) - The company's auditors have reviewed this interim financial information in accordance with relevant standards and found no material issues[312](index=312&type=chunk)

Cover and Performance Announcement [Consolidated Financial Statements](index=1&type=section&id=Consolidated%20Financial%20Statements) During the reporting period, the company's revenue significantly increased, and gross profit substantially improved, leading to a narrowed annual loss; however, the balance sheet shows a decrease in both total assets and net assets, with liquidity pressure evident as net current assets turned into net current liabilities [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the year ended March 31, 2023, the Group's revenue surged by 184% year-on-year to HK$866 million, driving gross profit up over 13 times to HK$251 million, significantly narrowing the annual loss to HK$82.09 million despite property write-downs and increased finance costs Summary of Annual Consolidated Income Statement | Metric | 2023 (HK$ Thousands) | 2022 (HK$ Thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 865,703 | 304,416 | +184.4% | | Gross Profit | 250,531 | 17,747 | +1311.7% | | Loss Before Tax | (54,614) | (131,890) | Loss narrowed 58.6% | | Loss for the Year | (82,088) | (145,171) | Loss narrowed 43.5% | | Loss Attributable to Owners of the Company | (72,716) | (119,137) | Loss narrowed 38.9% | | Basic Loss Per Share (HK Cents) | (0.36) | (0.59) | Loss narrowed 39.0% | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2023, the Group's total assets decreased by 24.7% to HK$2.378 billion, and total liabilities decreased by 28.0% to HK$1.756 billion, with net assets reducing by 13.6% to HK$622 million, notably shifting from net current assets to net current liabilities, indicating increased short-term repayment pressure Summary of Consolidated Statement of Financial Position | Metric | March 31, 2023 (HK$ Thousands) | March 31, 2022 (HK$ Thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Assets | 2,378,267 | 3,159,851 | -24.7% | | Total Liabilities | 1,755,839 | 2,439,782 | -28.0% | | Total Equity (Net Assets) | 622,428 | 720,069 | -13.6% | | Current Assets | 1,397,183 | 2,382,447 | -41.3% | | Current Liabilities | 1,623,062 | 2,251,927 | -27.9% | | Net Current (Liabilities) Assets | (225,879) | 130,520 | Shift from positive to negative | [Notes to the Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail the basis of preparation, accounting policy changes, revenue and performance by business segment, and specifics of key asset and liability items, highlighting property development and computer equipment leasing as primary revenue sources, the going concern basis despite net current liabilities, and significant write-downs of properties held for sale and full impairment of loan receivables [Basis of Preparation and Accounting Policies](index=5&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, with directors maintaining a going concern basis despite net current liabilities of HK$226 million as of March 31, 2023, believing the Group has sufficient working capital, and revisions to HKFRS applied this year had no significant impact on financial position - Despite the Group having **net current liabilities of HK$226 million**, the directors believe the Group has sufficient working capital to meet its needs for the next 12 months, thus the consolidated financial statements are prepared on a going concern basis[25](index=25&type=chunk) - Revisions to Hong Kong Financial Reporting Standards applied this year had no significant impact on the Group's financial position and performance[54](index=54&type=chunk) [Revenue and Segment Reporting](index=9&type=section&id=Revenue%20and%20Segment%20Reporting) Total revenue for the year increased by 184% year-on-year to HK$866 million, with property development remaining the largest source, computer equipment leasing and trading emerging as a new growth engine, and contact lens business revenue growing, while international business settlement had no revenue, and property development turned profitable, computer equipment business recorded a profit, and contact lens business losses expanded Revenue by Business Segment | Business Segment | 2023 Revenue (HK$ Thousands) | 2022 Revenue (HK$ Thousands) | | :--- | :--- | :--- | | Property Sales | 714,134 | 292,042 | | Computer Equipment Leasing and Trading | 111,404 | 219 | | Contact Lens Sales | 40,165 | 2,159 | | International Business Settlement Services | – | 9,878 | | Financing Services | – | 118 | | **Total** | **865,703** | **304,416** | Segment (Loss)/Profit by Business Segment | Business Segment | 2023 Segment (Loss)/Profit (HK$ Thousands) | 2022 Segment (Loss)/Profit (HK$ Thousands) | | :--- | :--- | :--- | | Property Development | 3,788 | (34,340) | | Computer Equipment Leasing and Trading | 16,129 | 129 | | Contact Lens Business | (48,095) | (40,598) | | International Business Settlement | (6,700) | (41,265) | | Financing Business | (1,377) | (19,607) | - One customer from the computer equipment leasing and trading business contributed approximately **HK$87.12 million** in revenue, accounting for over **10% of the Group's total revenue**[118](index=118&type=chunk) [Management Discussion and Analysis](index=29&type=section&id=Management%20Discussion%20and%20Analysis) Management reviewed the year's operations, noting significant revenue growth due to property deliveries and narrowed losses, with business segments showing divergence: property development as a pillar, computer equipment leasing as a new highlight, contact lens business in an investment phase with expanding losses, and international settlement and financing businesses largely stagnant, while financially, liquidity pressure increased and the debt ratio rose, with the company positive about property development, contact lens, and computer equipment businesses, but cautious about financing [Overall Performance](index=29&type=section&id=Overall%20Performance) The Group's revenue nearly doubled to HK$866 million this year, primarily from property development, with gross profit margin significantly increasing from 5.8% to 28.9%; despite strong revenue and gross profit, the Group still recorded a loss of HK$82.09 million, largely due to a HK$173 million write-down of properties held for sale and increased finance costs to HK$72.08 million, though this was a substantial reduction from HK$145 million in the prior year Key Performance Indicators | Metric | Year Ended March 31, 2023 | Year Ended March 31, 2022 | | :--- | :--- | :--- | | Revenue (HK$ Thousands) | 865,703 | 304,416 | | Gross Profit Margin (%) | 28.9% | 5.8% | | Loss for the Year (HK$ Thousands) | (82,088) | (145,171) | | Loss Per Share (HK Cents) | (0.36) | (0.59) | - Significant revenue growth primarily stemmed from property development business (**HK$714 million**), computer equipment leasing and trading business (**HK$111 million**), and contact lens business (**HK$40.17 million**)[208](index=208&type=chunk) - The annual loss was mainly due to a **HK$173 million write-down of properties held for sale** and increased finance costs to **HK$72.08 million** as finance costs were no longer capitalized following the completion of major construction works[210](index=210&type=chunk) [Review of Operations and Prospects](index=30&type=section&id=Review%20of%20Operations%20and%20Prospects) The Group's business segments showed divergent performance, with property development achieving strong revenue and turning profitable, computer equipment leasing and trading rapidly expanding, contact lens business revenue growing but losses expanding due to investment, international business settlement stagnating due to geopolitical factors and subsidiary liquidation, and financing business suspended with full impairment provisions for existing loans due to macroeconomic uncertainty [Property Development and Hotel Business](index=31&type=section&id=Property%20Development%20and%20Hotel%20Business) Property development was the core driver this year, with sales of approximately 79,000 square meters generating HK$714 million in revenue and a segment profit of HK$3.79 million, successfully turning profitable, primarily from the completion and delivery of three buildings in Zone F of 'Zhenghe City' in Liuzhou; however, a HK$173 million write-down of properties held for sale was recognized due to fair value declines, and the hotel building is completed but not yet operational, generating no revenue - The property development segment sold approximately **79,000 square meters**, generating revenue of approximately **HK$714 million** and a segment profit of approximately **HK$3.79 million**, primarily due to the delivery of newly completed units in Zone F[225](index=225&type=chunk) - A **HK$173 million write-down of properties held for sale** was recognized this year as net realizable value was below carrying amount, mainly due to a decrease in the fair value of remaining unsold parking spaces[249](index=249&type=chunk)[210](index=210&type=chunk) - Construction of the hotel building is completed but the completion acceptance certificate has not yet been obtained, with revenue expected only after the hotel commences operations[250](index=250&type=chunk) [Contact Lens Business](index=36&type=section&id=Contact%20Lens%20Business) Contact lens business revenue significantly increased year-on-year to HK$40.17 million, but segment loss expanded to HK$48.10 million due to high salaries, depreciation, and R&D expenses; the company is in a capacity enhancement phase, with 5 of 7 production lines operational, expecting monthly capacity to reach 21 million units after full commissioning by end of 2023, and is actively pursuing US FDA and EU CE certifications for international market expansion, planning to launch its own brand in H2 2023 - This segment recorded sales revenue of **HK$40.17 million**, but incurred a loss of **HK$48.10 million** due to salaries, depreciation, and R&D expenses[230](index=230&type=chunk) - Capacity continues to expand, with plans to complete the installation of the remaining 2 production lines in Q3 2023, at which point full capacity will reach approximately **21 million units per month**[227](index=227&type=chunk) - The company has initiated the US FDA qualification application and plans to apply for CE certification to expand into international markets, while also planning to build its own brand via e-commerce platforms in H2 2023[228](index=228&type=chunk)[230](index=230&type=chunk) [Computer Equipment Leasing and Trading Business](index=37&type=section&id=Computer%20Equipment%20Leasing%20and%20Trading%20Business) This business became a new growth point for the Group, with annual revenue reaching HK$111 million and a segment profit of HK$16.13 million; the Group has deployed and fully leased out 960 sets of servers in Hong Kong, providing a stable revenue stream, and plans to reinvest rental income to purchase an additional 450 sets of servers for leasing, capitalizing on the demand for cloud distributed storage - This year, revenue from leasing data storage equipment was approximately **HK$87.12 million**, revenue from trading equipment was approximately **HK$24.28 million**, and segment profit was **HK$16.13 million**[255](index=255&type=chunk) - All **960 sets of servers** deployed in Hong Kong have been leased to customers, with the cost of each server expected to be recovered within **14 to 30 months**[232](index=232&type=chunk)[254](index=254&type=chunk) - The Group decided to reinvest rental income to purchase an additional **450 sets of servers** for leasing[233](index=233&type=chunk) [International Business Settlement and Financing Business](index=30&type=section&id=International%20Business%20Settlement%20and%20Financing%20Business) International business settlement made little progress, generating no revenue this year due to the liquidation of a wholly-owned subsidiary in Lithuania engaged in settlement business; in financing, given the uncertain macroeconomic environment in China, the Group has suspended new financing activities and made full impairment provisions for long-overdue loan receivables, attempting to recover loans by realizing collateral - The International Business Settlement segment generated no revenue during the year due to a winding-up petition filed by IBS Hong Kong, a Lithuanian subsidiary[68](index=68&type=chunk) - The Group adopted a cautious strategy for future financing business and suspended offering new financing services in China[237](index=237&type=chunk) - The Group prudently made **full impairment provisions** for long-overdue loan receivables due to the borrowers' unresponsive engagement[236](index=236&type=chunk) [Financial Review](index=40&type=section&id=Financial%20Review) As of March 31, 2023, the Group's financial position faced challenges, with total assets and total equity both decreasing, the current ratio falling from 1.06 to 0.86, and net current liabilities of HK$226 million recorded, indicating tightening short-term liquidity; the debt-to-equity ratio increased from 1.29 to 1.45, reflecting higher leverage, with total borrowings approximately HK$901 million, 86% due within one year - The Group recorded **net current liabilities of approximately HK$226 million**, compared to net current assets of approximately **HK$131 million** in the prior year. The **current ratio was 0.86**, down from **1.06** in the prior year[260](index=260&type=chunk)[242](index=242&type=chunk) - The **debt-to-equity ratio** (total borrowings to total equity) was **1.45**, higher than **1.29** in the prior year[244](index=244&type=chunk) - As of March 31, 2023, the Group's total borrowings were approximately **HK$901 million**, with **86% due within one year**[260](index=260&type=chunk) - Approximately **HK$294 million** of property, plant, and equipment were pledged as security for the Group's bank and other borrowings[245](index=245&type=chunk) [Corporate Governance and Other Information](index=42&type=section&id=Corporate%20Governance%20and%20Other%20Information) The Board does not recommend a final dividend for the year ended March 31, 2023; the company complied with most provisions of the Corporate Governance Code this year, but with deviations primarily due to vacant Chairman and CEO positions, with related responsibilities collectively undertaken by executive directors, and the Audit Committee reviewed the annual results, with neither the company nor its subsidiaries purchasing, selling, or redeeming the company's securities during the year - The Board does not recommend the payment of a dividend for the year ended March 31, 2023[202](index=202&type=chunk) - The company deviated from the Corporate Governance Code due to vacant Chairman and Chief Executive Officer positions, with their duties collectively handled by executive directors[269](index=269&type=chunk) - During the year ended March 31, 2023, neither the company nor any of its subsidiaries purchased, sold, or redeemed the company's securities[267](index=267&type=chunk)

Financial Performance - Revenue for the six months ended September 30, 2022, was HK$87,203,000, a decrease of 66.4% compared to HK$259,170,000 in the same period of 2021[10]. - Gross profit for the period was HK$3,551,000, down from HK$40,913,000, reflecting a significant decline in profitability[10]. - Loss before taxation was HK$36,021,000, compared to a profit of HK$34,805,000 in the previous year[10]. - The loss attributable to owners of the company was HK$10,541,000, compared to a loss of HK$5,942,000 in the same period last year[11]. - Total comprehensive expense for the period was HK$23,701,000, a significant increase from HK$1,004,000 in the prior year[11]. - The Group reported a loss for the period of HK$34,805,000 for the six months ended September 30, 2022, compared to a profit of HK$18,042,000 in 2021, marking a shift of 292.5%[94]. - No interim dividend was declared for the reporting period, consistent with the previous year where no dividend was paid[98]. Assets and Liabilities - Non-current assets increased to HK$954,254,000 as of September 30, 2022, from HK$777,404,000 as of March 31, 2022[13]. - Current liabilities decreased to HK$2,010,838,000 from HK$2,251,927,000, indicating improved management of short-term obligations[13]. - The net assets decreased to HK$696,368 thousand from HK$720,069 thousand, representing a decline of approximately 3.3%[14]. - Total assets less current liabilities increased to HK$927,314 thousand from HK$907,924 thousand, reflecting a growth of approximately 2.1%[14]. - Non-current liabilities, including borrowings and lease liabilities, rose to HK$230,946 thousand, up from HK$187,855 thousand, indicating an increase of about 22.9%[14]. - The Group's total non-current assets as of September 30, 2022, were HK$731,069,000, compared to HK$493,374,000 as of March 31, 2022, reflecting an increase of 48.2%[80]. - The total amount of completed properties held for sale and properties under development for sale is HK$1,601,135,000, compared to HK$1,802,459,000 as of 31 March 2022, representing a decrease of approximately 11.2%[141]. Cash Flow - For the six months ended September 30, 2022, cash flows from operating activities showed a net cash outflow of HK$ (15,061) thousand compared to an inflow of HK$ 23,218 thousand in the same period of 2021[30]. - Cash used in investing activities was HK$ (241,106) thousand, a significant increase from HK$ (61,800) thousand in the previous year, indicating a higher investment outflow[30]. - The company reported a net decrease in cash and cash equivalents of HK$232,200,000 for the six months ended September 30, 2022, compared to a decrease of HK$55,207,000 in the prior year[32]. - Cash and cash equivalents at the end of the period were HK$288,584,000, down from HK$584,197,000 at the end of the same period in 2021[32]. - The company reported cash and bank balances of HK$288,584,000, a decrease from HK$522,507,000 as of March 31, 2022[13]. Revenue Breakdown - The Group reported revenue from property sales of HK$33,627,000 for the six months ended September 30, 2022, a decrease of 86.8% compared to HK$254,505,000 in the same period of 2021[55]. - Revenue from international business settlement services was HK$0 for the current period, down from HK$4,412,000 in the previous year[55]. - Sales of contact lenses increased significantly to HK$26,376,000 from HK$232,000, marking a substantial growth[55]. - Revenue from leasing and trading of computer equipment was HK$27,200,000, compared to HK$259,149,000 in the prior year, indicating a decline[55]. - Financing service income was reported as HK$0 for the current period, down from HK$259,170,000 in the previous year[55]. Management and Strategy - The Directors believe the Group will have sufficient financial resources to meet its working capital requirements in the foreseeable future[54]. - The Group will actively negotiate with financial institutions for the renewal of borrowings to secure necessary funds[54]. - The company continues to focus on enhancing its manufacturing production and management capabilities through investments in technology and infrastructure[108]. Impairment and Credit Risk - The Group recognized a full impairment loss of RMB 36,808,000 (approximately HK$ 44,773,000) for the International Business Settlement Segment due to a recoverable amount determined to be nil[110]. - The Group's management considers the credit risk associated with trade and other receivables to be minimal, with a general provision for impairment loss recognized[153]. - The loss allowance for trade receivables was HK$330,000 as of 30 September 2022, compared to HK$135,000 as of 31 March 2022, reflecting an increase in credit risk management[144]. Shareholder Information - As of September 30, 2022, the total number of issued and fully paid ordinary shares is 20,319,072,320[196]. - The authorized ordinary shares amount to 498,000,000,000, with non-voting convertible preference shares totaling 2,000,000,000[196]. - The contributed surplus of the Group reflects the difference between the nominal value of shares and share premium, adjusted for dividends and capital reductions[197].

Financial Performance - The company recorded a revenue of approximately HK$304,416,000 for the year ended March 31, 2022, representing a significant increase compared to HK$85,521,000 in the previous year, marking a growth of approximately 256%[13] - The overall gross profit was approximately HK$17,747,000, with a gross profit margin of 5.8%, down from 24.8% in the previous year, indicating a decrease in profitability[14] - The loss for the year was HK$145,171,000, slightly higher than the loss of HK$140,050,000 in the previous year, reflecting ongoing challenges[10] - The net asset value per share decreased to HK$3.54 from HK$4.14 in the previous year, indicating a decline in the company's asset value[10] Revenue Drivers - The increase in revenue was primarily driven by the sales of car parking spaces and completed units in the property development segment of Liuzhou Zhenghe[13] - The company's business was significantly impacted by the global COVID-19 pandemic in the preceding financial year, but operations resumed to normal with the easing of restrictions[13] - The construction works and sales offices resumed normal operations, contributing to the revenue growth in the current year[13] - Approximately 44,000 square meters of property were sold in Liuzhou Zhenghe, generating segment revenue of approximately HK$292,042,000 for the current year, compared to HK$75,733,000 in 2021[79] Impairment and Losses - The Group incurred a loss of approximately HK$145,171,000 for the current year, compared to HK$140,050,000 in 2021, primarily due to impairment losses on loan receivables, intangible assets, and properties held for sale[17] - The substantial loss was also attributed to HK$17,294,000 impairment loss on loan receivables and HK$44,773,000 on intangible assets related to the IBS settlement platform system[17] - An impairment of HK$24,373,000 was required for the platform during the year due to uncertainties associated with the ongoing conflict between Russia and Ukraine[20] - The contact lens segment recorded sales revenue of HK$2,159,000 for the year, up from HK$1,829,000 in 2021, but incurred a loss of HK$40,598,000, significantly higher than the previous year's loss of HK$13,752,000[87][90] Property Development - Zhenghe City project consists of two phases, with Phase I providing approximately 485,000 square meters of gross floor area and Phase II expected to provide an additional 513,000 square meters[29] - The total saleable area of completed properties that were unsold as of March 31, 2022, was 375,000 square meters, while the total gross floor area under development was 998,000 square meters[30] - The construction works of 36 villas were completed and sold in the past financial years, contributing to the overall sales performance[43] - The hotel building in Zone E1 has a gross floor area of approximately 31,000 square meters, with operations expected to commence in 2023[79] Financial Position - As of March 31, 2022, the Group's total assets were approximately HK$3,159,851,000, down from HK$3,363,492,000 as of March 31, 2021, representing a decrease of about 6.05%[115] - The Group recorded total equity of approximately HK$720,069,000 as of March 31, 2022, compared to HK$841,501,000 as of March 31, 2021, indicating a decline of approximately 14.4%[115] - The Group's net current assets decreased to approximately HK$130,520,000 as of March 31, 2022, from HK$289,728,000 as of March 31, 2021, a reduction of about 55.1%[115] - Total borrowings amounted to approximately HK$929,464,000 as of March 31, 2022, an increase from HK$875,888,000 as of March 31, 2021, representing a rise of about 6.1%[115] Governance and Management - The company has not officially appointed a Chairman or CEO during the year ended March 31, 2022, with responsibilities handled collectively by executive Directors[172] - The company complied with the Corporate Governance Code except for specific deviations, including the lack of a Chairman and CEO[172] - The Board believes the current management structure allows contributions from all executive Directors, benefiting the continuity of policies and strategies[173] - The Board maintained at least three independent non-executive directors throughout the year, with at least one possessing appropriate professional qualifications in accounting or related financial management expertise[183] Employee and Operational Insights - The total headcount of the Group increased to 190 employees as of March 31, 2022, up from 170 in the previous year[128] - The Group's total staff costs for the year were approximately HK$46.1 million, an increase from approximately HK$41.2 million in the previous year[128] - The Group's employee benefits include performance bonuses, medical insurance, and education subsidies to encourage continuous professional development[132] - The Group's operations are subject to extensive governmental regulations in the PRC, which may lead to changes in market conditions, including price instability and demand imbalance in the property market[135] Risk Management - The Group's financial instruments include assets measured at fair value, with risks including market risk, credit risk, and liquidity risk, as detailed in Note 36 of the consolidated financial statements[141] - The Group actively monitors changes in laws and regulations to minimize risks associated with financing and land acquisition for new developments[136] - The Group has implemented financial crime risk management activities, including adherence to anti-money laundering policies and client due diligence screening[146] - The Group acknowledges ongoing challenges in developing alternative settlement channels despite the difficulties faced[24]

International Business Settlement International Business Settlement Holdings Limited 國際商業結算控股有限公司 (Incorporated in Bermuda with limited liability 於百慕娃註冊成立之有限公司) (Stock Code: 00147 股份代號 : 00147) INTERIM REPORT Contents 目錄 Contents 目錄 | --- | --- | --- | |------------------------------------------------------------------------------------|-------|------------------------------| | Corporate Information | 2 | 公司資料 | | Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | 4 | 簡明綜合損益 ...

International Business Settlement International Business Settlement Holdings Limited 國際商業結算控股有限公司 (Incorporated in Bermuda with limited liability 於百慕逵註冊成立之有限公司) (Stock Code: 00147 股份代號 : 00147) Annual Report 202 Contents 目錄 Contents 目錄 Corporate Information 2 公司資料 Management's Statement 4 管理層報告 Biographical Details of Directors 26 董事履歷資料 Corporate Governance Report 28 企業管治報告 Environmental, Social and Governance Report 45 環境、社會及管治報告 Directors' Report 105 董事會報告 Independent Auditor's Report 115 獨立核數師報告 Consoli ...

International BS Business International Business Settlement Holdings Limited 國際商業結算控股有限公司 (Incorporated in Bermuda with Ilimited Iliability 於百慕逵註冊成立之有限公司) (Stock Code: 00147 股份代號 : 00147) Interim Report 201 Contents 目錄 Contents 目錄 | --- | --- | --- | |------------------------------------------------------------------------------------|-------|------------------------------| | Corporate Information | 2 | 公司資料 | | Report on Review of Condensed Consolidated Interim Financial Statements | 4 | 簡明綜合中期財務報表審閱報告 | | ...

35 International Business Settlement International Business Settlement Holdings Limited 國際商業結算控股有限公司 (Incorporated in Bermuda with limited liability 於百慕達註冊成立之有限公司) (Stock Code: 00147 股份代號 : 00147) Annual Report 2019/2020 年報 Contents 目錄 Corporate Information 2 公司資料 Management's Statement 4 管理層報告 Biographical Details of Directors 29 董事履歷資料 Corporate Governance Report 32 企業管治報告 Environmental, Social and Governance Report 49 環境、社會及管治報告 Directors' Report 96 董事會報告 Independent Auditor's Report 106 獨立核數師報告 Other Co ...

International Business Settlement International Business Settlement Holdings Limited 國際商業結算控股有限公司 (Incorporated in Bermuda with Iimited liability 於百慕達註冊成立之有限公司) (Stock Code: 00147 股份代號 : 00147) Interim Report 2019 中期報告 Contents 目錄 Contents 目錄 | --- | --- | --- | |------------------------------------------------------------------------------------|-------|------------------------------| | Corporate Information | 2 | 公司資料 | | Report on Review of Condensed Consolidated Interim Financial Statements | 4 | 簡明綜合中期 ...