The Group's annual results announcement provides a comprehensive overview of its financial performance and position for the year [Consolidated Statement of Profit or Loss](index=1&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) Profit for the year ended March 31, 2023, decreased by **46.49% to 48.84 million Hong Kong Dollars**, mainly due to reduced revenue and higher finance costs Profit for the Year | Metric | 2023 (HKD) | 2022 (HKD) | Change (YoY) | | :----- | :--------- | :--------- | :----------- | | Profit for the year | 48,843,913 | 91,277,986 | -46.49% | | Attributable to owners of the Company | 48,869,383 | 91,356,972 | -46.49% | | Attributable to non-controlling interests | (25,470) | (78,986) | -67.75% | Revenue | Metric | 2023 (HKD) | 2022 (HKD) | Change (YoY) | | :----- | :--------- | :--------- | :----------- | | Revenue | 501,313,169 | 694,563,912 | -27.75% | Gross Profit | Metric | 2023 (HKD) | 2022 (HKD) | Change (YoY) | | :----- | :--------- | :--------- | :----------- | | Gross profit | 107,799,872 | 87,821,864 | +22.75% | Profit Before Tax | Metric | 2023 (HKD) | 2022 (HKD) | Change (YoY) | | :----- | :--------- | :--------- | :----------- | | Profit before tax | 65,498,446 | 84,073,501 | -22.10% | Increase in Fair Value of Investment Properties | Metric | 2023 (HKD) | 2022 (HKD) | Change (YoY) | | :----- | :--------- | :--------- | :----------- | | Increase in fair value of investment properties | 298,698,048 | 134,757,261 | +121.66% | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the year ended March 31, 2023, the Group recorded a total comprehensive expense of **7.32 million Hong Kong Dollars**, a significant decrease from last year's income, mainly due to exchange differences Total Comprehensive (Expense)/Income for the Year | Metric | 2023 (HKD) | 2022 (HKD) | Change (YoY) | | :----- | :--------- | :--------- | :----------- | | Total comprehensive (expense)/income for the year | (7,324,495) | 113,954,070 | -106.43% | Exchange Differences Arising on Translation of Overseas Operations | Metric | 2023 (HKD) | 2022 (HKD) | Change (YoY) | | :----- | :--------- | :--------- | :----------- | | Exchange differences arising on translation of overseas operations | (57,332,657) | 18,489,702 | -410.06% | [Consolidated Statement of Financial Position](index=3&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) Total assets slightly increased, driven by investment properties and properties under development for sale, while net current assets significantly decreased Assets and Liabilities Overview | Metric | 2023 (HKD) | 2022 (HKD) | Change (YoY) | | :----- | :--------- | :--------- | :----------- | | Non-current assets | 5,614,061,618 | 5,110,530,298 | +9.85% | | Current assets | 2,894,245,337 | 3,228,249,846 | -10.35% | | Total consolidated assets | 8,508,306,955 | 8,338,780,144 | +2.03% | Liabilities Overview | Metric | 2023 (HKD) | 2022 (HKD) | Change (YoY) | | :----- | :--------- | :--------- | :----------- | | Current liabilities | 2,353,389,093 | 2,314,977,547 | +1.66% | | Non-current liabilities | 3,608,769,287 | 3,407,197,183 | +5.92% | | Total consolidated liabilities | 5,962,158,380 | 5,722,174,730 | +4.20% | Net Current Assets | Metric | 2023 (HKD) | 2022 (HKD) | Change (YoY) | | :----- | :--------- | :--------- | :----------- | | Net current assets | 540,856,244 | 913,272,299 | -40.80% | Investment Properties | Metric | 2023 (HKD) | 2022 (HKD) | Change (YoY) | | :----- | :--------- | :--------- | :----------- | | Investment properties | 4,890,224,988 | 4,347,962,250 | +12.47% | Properties Under Development for Sale | Metric | 2023 (HKD) | 2022 (HKD) | Change (YoY) | | :----- | :--------- | :--------- | :----------- | | Properties under development for sale | 1,560,933,226 | 1,325,975,077 | +17.72% | [Notes to the Consolidated Financial Statements](index=5&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section details the accounting policies, revenue breakdown, segment performance, and other financial disclosures [Basis of Preparation and Application of Accounting Standards](index=5&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E6%87%89%E7%94%A8) The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, with no significant impact from new amendments - Financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and comply with disclosure requirements of the Hong Kong Stock Exchange Listing Rules and Hong Kong Companies Ordinance[23](index=23&type=chunk) - Financial statements are prepared on a historical cost basis, except for investment properties, certain financial instruments, and other assets measured at fair value[23](index=23&type=chunk) - Amendments to Hong Kong Financial Reporting Standards applied during the year had no significant impact on the Group's financial position or performance[19](index=19&type=chunk)[24](index=24&type=chunk) [Revenue and Segment Information](index=6&type=section&id=%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) Total revenue decreased by **27.75% to 501.31 million Hong Kong Dollars** in 2023, mainly due to reduced watch manufacturing revenue, while hotel operations revenue increased [Revenue Analysis](index=6&type=section&id=%E6%94%B6%E7%9B%8A%E5%88%86%E6%9E%90) Revenue from watch and watch movements significantly decreased, while hotel operations saw substantial growth Revenue by Product/Service | Product/Service | 2023 (HKD) | 2022 (HKD) | Change (YoY) | | :-------------- | :--------- | :--------- | :----------- | | Watch and watch movements | 411,793,738 | 629,416,156 | -34.69% | | Property sales | – | 472,352 | -100.00% | | Hotel operations | 89,519,431 | 64,675,404 | +38.42% | | Total Revenue | 501,313,169 | 694,563,912 | -27.75% | [Segment Results](index=7&type=section&id=%E5%88%86%E9%83%A8%E6%A5%AD%E7%B8%BE) Property development and investment, along with hotel operations, showed significant growth

Financial Performance - For the six months ended September 30, 2022, the company reported total revenue of HKD 266,291,000, a decrease of 29% from HKD 374,119,000 in the same period of 2021[2]. - Gross profit for the same period was HKD 45,569,000, slightly up from HKD 45,200,000 year-on-year[2]. - The net profit for the period was HKD 21,305,000, down 66.9% compared to HKD 64,315,000 in the previous year[5]. - Basic earnings per share decreased to HKD 2.26 from HKD 6.65, reflecting a significant decline in profitability[2]. - The profit before tax for the six months ended September 30, 2022, was HKD 23,974,000, compared to HKD 63,696,000 for the same period in 2021, indicating a significant decrease of about 62%[36][44]. - The profit attributable to shareholders for the same period was approximately HKD 21,330,000, compared to HKD 64,354,000 in the previous year, reflecting a decline of approximately 67%[99]. Revenue and Sales - The total revenue for the six months ended September 30, 2022, was HKD 266,291,000, a decrease from HKD 374,119,000 in the previous year, representing a decline of approximately 29%[40][51]. - Revenue from external sales in Hong Kong and China was HKD 256,500,000 for the six months ended September 30, 2022, down from HKD 362,448,000 in the previous year, a decrease of approximately 29%[51]. - The company recorded other income of HKD 7,771,000, a substantial increase from HKD 2,292,000 in the prior year[2]. Assets and Liabilities - Total assets as of September 30, 2022, were HKD 6,041,027,000, compared to HKD 6,023,802,000 as of March 31, 2022[19]. - The company’s total liabilities decreased to HKD 3,527,345,000 from HKD 3,407,197,000[19]. - The company reported a net asset value attributable to equity holders of HKD 2,512,322,000, down from HKD 2,615,220,000[19]. - The total borrowings of the group as of September 30, 2022, were approximately HKD 4,645,000,000, with a repayment period of 30 years[106]. - The capital-to-debt ratio as of September 30, 2022, was 1.36, up from 1.25 as of March 31, 2022[106]. Cash Flow - The company’s cash and cash equivalents decreased to HKD 903,481,000 from HKD 1,100,196,000[16]. - Cash and cash equivalents at the end of the period were HKD 903,481,000, down from HKD 1,018,923,000 at the end of the previous year, a decrease of about 11%[24]. - The net cash generated from operating activities for the six months ended September 30, 2022, was HKD 113,972,000, compared to a net cash used of HKD 262,995,000 for the same period in 2021[24]. - The company’s total cash outflow from investing activities was HKD 99,147,000 for the six months ended September 30, 2022, compared to HKD 9,455,000 in the previous year, indicating a significant increase in cash used for investments[24]. Dividends and Share Capital - The interim dividend declared for 2022 is HKD 0.03 per share, consistent with the previous year's dividend of HKD 0.03 per share[10]. - The total issued and fully paid share capital as of September 30, 2022, was HKD 92,773,000, down from HKD 94,931,000 as of March 31, 2022, indicating a decrease of approximately 2.3%[80]. - The company repurchased a total of 21,580,000 shares during the six months ended September 30, 2022, with a total cost of approximately HKD 21,942,256[118]. Investments and Properties - The fair value of investment properties increased from HKD 4,347,962,000 as of March 31, 2022, to HKD 4,547,514,000 as of September 30, 2022, representing an increase of approximately 4.6%[11]. - The company holds 100% equity in several long-term investment properties located in Hong Kong, including The Putman, 99 Bonham, One96, and The Jervois[126]. - The company is currently developing a project at 88 Queen Street East, Toronto, with a total area of 3,197 square meters, expected to be completed in 2024[134]. - The company maintains a diverse portfolio of commercial, industrial, and residential properties, reflecting a balanced investment strategy[126]. - The company is focused on long-term property investments, ensuring stability and potential growth in asset value[126]. Employee and Management - The group employed approximately 240 employees across Hong Kong, China, and other overseas countries as of September 30, 2022, with total staff costs recognized in the profit and loss statement amounting to approximately HKD 52,000,000 for the period[111]. - The management's remuneration for the period was approximately HKD 17,226,000, slightly down from HKD 17,826,000 for the same period last year[86]. Corporate Governance - The company has complied with the corporate governance code, except for specific provisions regarding the appointment and rotation of non-executive directors[119]. - The audit and risk management committee has reviewed the accounting principles and practices adopted by the group for the six months ended September 30, 2022[122]. - The company has adopted a standard code for securities trading by directors, confirming compliance during the review period[123].

Financial Performance - The group reported a consolidated profit attributable to shareholders of HKD 91,356,972 for the year ended March 31, 2022, a decrease of 21.5% from HKD 116,262,504 for the previous year[17]. - Basic and diluted earnings per share for the year were HKD 0.095, down from HKD 0.118 in the previous year[17]. - Total revenue for the year ended March 31, 2022, was HKD 694,563,912, a decrease of 51.8% compared to HKD 1,442,829,063 in the previous year[178]. - Gross profit for the year was HKD 87,821,864, down 45.4% from HKD 160,600,989 in the prior year[178]. - The net profit for the year was HKD 91,277,986, representing a decline of 21.5% from HKD 116,186,190 in the previous year[178]. - The company reported a total comprehensive income of HKD 113,954,070 for the year, down from HKD 218,290,835 in the previous year[182]. - The company’s total equity attributable to owners was HKD 2,558,209,285 as of March 31, 2022, compared to HKD 2,403,276,021 the previous year, reflecting a growth of 6.4%[190]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.03 per share, consistent with the previous year's final dividend[18]. - A mid-term dividend of HKD 0.005 per share was distributed, totaling HKD 4,827,490, with a proposed final dividend of HKD 0.03 per share, amounting to approximately HKD 28,450,000[65]. - The company aims to balance sufficient capital for business development and shareholder returns, considering factors such as actual and expected performance, liquidity, and future expansion plans when determining dividends[145]. Investments and Acquisitions - The group completed the acquisition of residential property at 26 Royal Bay, 8 Whitehead Road, for long-term investment purposes[41]. - The group expects the project at 1 South Bay Road to be topped out around Q4 2022 and completed in Q2 2023[31]. - The group plans to launch a new hybrid smartwatch series designed and developed in-house, to be sold under licensed and proprietary brands[38]. - The group aims to seek safe and high-value investment opportunities in various regional markets amid global inflation and rising interest rates[32]. - The group completed the sale of three villas in a joint venture project at 45 Tai Tam Road, with the revenue included in the consolidated results for the year[24]. Financial Position and Borrowings - As of March 31, 2022, the total borrowings of the group amounted to approximately HKD 4,620,000,000, an increase of about HKD 528,000,000 compared to the previous year[44]. - The capital-to-debt ratio as of March 31, 2022, was 1.25, slightly up from 1.24 in the previous year, calculated based on long-term borrowings of approximately HKD 3,281,000,000 and shareholder equity of approximately HKD 2,615,000,000[44]. - The total cash and bank balances as of March 31, 2022, were approximately HKD 1,100,000,000, compared to HKD 1,095,000,000 in the previous year[44]. - 85% of the group's borrowings were in HKD, with 11% in CAD, 2% in GBP, 1% in JPY, and 1% in USD as of March 31, 2022[48]. - As of March 31, 2022, approximately HKD 6,058,000,000 worth of properties and fixed deposits were pledged as collateral for bank financing[50]. Corporate Governance - The company has maintained compliance with the corporate governance code as per the listing rules, with some deviations noted in the annual report[94]. - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors[108]. - The company has established three committees to assist the board in fulfilling its responsibilities, including the audit and risk management committee, nomination committee, and remuneration committee[107]. - The board has confirmed the independence of all independent non-executive directors according to the guidelines set out in the listing rules[128]. - The company has adopted a board diversity policy since 2016, considering factors such as gender, race, language, culture, and professional experience[132]. Audit and Risk Management - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2022[155]. - The audit identified the valuation of investment properties as a key audit matter due to the significant estimates and judgments involved[159]. - Management is responsible for preparing financial statements that are free from material misstatement due to fraud or error, and for maintaining effective internal controls[166]. - The auditors assessed the appropriateness of accounting policies and the reasonableness of accounting estimates and disclosures made by management[172]. - The board believes that the current risk management and internal control systems are sufficient and effective[135]. Operational Highlights - The watch manufacturing and accessories segment experienced growth in both revenue and profit during the review period[19]. - The hotel operations showed improvement with increased occupancy rates and rental income compared to the previous year[23]. - The company reported a net cash outflow from operating activities of HKD 417,390,159 for the year, compared to an inflow of HKD 632,294,503 in the previous year[195]. - The company reported a decrease in inventory of HKD 6,004,903, contrasting with an increase of HKD 67,426,886 in the previous year[195]. Shareholder Rights - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special general meeting[146]. - A minimum of 5% of voting shareholders or at least 100 shareholders is required to propose a resolution at the annual general meeting or special general meeting[149].

Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 374,119,000, a decrease of 66.0% compared to HKD 1,099,391,000 in 2020[2] - Gross profit for the same period was HKD 45,200,000, down 61.1% from HKD 116,097,000 in the previous year[2] - Net profit for the period was HKD 64,315,000, a decline of 17.8% from HKD 78,228,000 in 2020[5] - Basic and diluted earnings per share were both HKD 6.65, compared to HKD 7.89 in the prior year, reflecting a decrease of 15.7%[2] - Total comprehensive income for the period was HKD 67,649,000, down 48.9% from HKD 132,198,000 in 2020[8] - Revenue from external sales for the six months ended September 30, 2021, was HKD 374,119 thousand, a decrease from HKD 1,099,391 thousand in 2020[36] - The pre-tax profit for the period was HKD 63,696 thousand, with a net profit of HKD 64,315 thousand[39] - The total financial expenses for the period were HKD 36,021 thousand, down from HKD 41,976 thousand in 2020[55] - The company incurred a loss of HKD (51,624) thousand from fair value changes of financial assets, compared to a loss of HKD (8,767) thousand in the previous year[54] - Basic and diluted earnings per share for the six months ended September 30, 2021, were HKD 64,354, compared to HKD 78,260 for the same period in 2020, representing a decrease of approximately 17.7%[64]. - The interim dividend declared for the year 2021 is HKD 0.03 per share, consistent with the previous year, with total dividends for the period amounting to HKD 29,037, a slight decrease from HKD 29,692 in 2020[65]. Assets and Liabilities - Non-current assets, including investment properties, increased to HKD 4,097,970,000 from HKD 3,946,423,000 as of March 31, 2021[13] - Current assets totaled HKD 2,997,262,000, an increase from HKD 2,641,975,000 at the end of March 2021[17] - Current liabilities rose to HKD 2,005,370,000 from HKD 1,530,245,000, indicating a significant increase in obligations[16] - The company reported a net cash position of HKD 1,018,923,000 as of September 30, 2021, compared to HKD 1,095,051,000 at the end of March 2021[13] - The total cash and cash equivalents decreased by HKD 74,013 thousand, compared to an increase of HKD 106,489 thousand in the prior year[24] - As of September 30, 2021, the total borrowings of the group amounted to approximately HKD 4,349,000,000, with a repayment period of 30 years[106] - The capital-to-debt ratio as of September 30, 2021, was 1.25, compared to 1.24 on March 31, 2021, calculated based on long-term bank borrowings of approximately HKD 3,233,000,000 and shareholder equity of approximately HKD 2,591,000,000[106] - The total cash and bank deposits as of September 30, 2021, were approximately HKD 1,019,000,000, a decrease from HKD 1,095,000,000 as of March 31, 2021[106] - 86% of the group's borrowings were in HKD, 10% in CAD, 2% in JPY, 1% in USD, and 1% in GBP as of September 30, 2021[107] - As of September 30, 2021, approximately HKD 5,438,000,000 worth of properties and bank deposits were pledged as collateral for bank financing[110] Cash Flow - For the six months ended September 30, 2021, the net cash used in operating activities was HKD (262,995) thousand, compared to HKD (147,395) thousand for the same period in 2020[21] - The net cash used in investing activities for the same period was HKD (9,455) thousand, a significant decrease from HKD (194,692) thousand in 2020[22] - The net cash generated from financing activities was HKD 198,437 thousand, down from HKD 448,576 thousand in the previous year[23] Property and Development - The company reported a significant increase in revenue from Hong Kong and China, reaching HKD 362,448 thousand compared to HKD 192,069 thousand in the previous year[51] - The group completed the sale of two villas in a joint venture project, contributing to the revenue for the six months ended September 30, 2021[99] - The acquisition of all shares and related shareholder loans of Jietuo Limited was completed on October 29, 2021, for a consideration of HKD 132,558,000[94][96] - The group expects gradual improvement in revenue and profit for its watch and watch accessories business despite ongoing COVID-19 impacts[100] - The hotel business is anticipated to see steady increases in occupancy rates and rental income as travel restrictions ease[100] - The group has completed renovation and expansion works at a villa on Deep Water Bay Road and has begun interior decoration plans[101] - Construction of a luxury residential project at South Bay Road is progressing as planned[102] - The foundation work for the third phase of a residential apartment in Toronto is nearing completion, with superstructure work set to commence soon[102] - The group will continue to seek property investment and development opportunities in Hong Kong, Toronto, and London[105] Corporate Governance and Compliance - The group has complied with the corporate governance code, except for certain provisions regarding the appointment and re-election of non-executive directors[122] - The audit and risk management committee has reviewed the accounting principles and practices adopted by the group for the six months ended September 30, 2021[126] - The company is committed to adhering to the standards set forth in the listing rules, ensuring transparency and governance[128] - The company is actively managing its property portfolio to maximize returns and ensure compliance with listing rules[128] Employee and Management Costs - The total staff costs, including directors' remuneration, were HKD 50,124 thousand, slightly down from HKD 51,022 thousand in the same period last year[60] - Management compensation for the period was approximately HKD 17,826,000, down from HKD 22,159,000 for the same period last year, reflecting a decrease of about 19.5%[82] - Employee costs recognized in the profit and loss statement included director remuneration of approximately HKD 50,000,000 for the period[111] Share Repurchase - The group repurchased a total of 4,276,000 shares during the six months ended September 30, 2021, at a total cost of approximately HKD 4,572,386[121]

Financial Performance - The group's audited consolidated profit attributable to shareholders for the year ended March 31, 2021, was HKD 116,262,504, a decrease of 5% from HKD 120,824,879 for the year ended March 31, 2020[7]. - Basic and diluted earnings per share for the year ended March 31, 2021, were both HKD 0.118, compared to HKD 0.120 for the previous year[7]. - Total revenue for the year ended March 31, 2021, was HKD 1,442,829,063, an increase from HKD 1,282,228,074 in the previous year, representing a growth of approximately 12.5%[163]. - Gross profit for the year was HKD 160,600,989, compared to HKD 114,026,154 in the previous year, indicating a significant increase of about 40.9%[163]. - The company reported a net profit of HKD 116,186,190 for the year, slightly down from HKD 120,786,082 in the previous year, reflecting a decrease of around 3.3%[166]. - Total comprehensive income for the year was HKD 218,290,835, a significant increase from HKD 71,272,927 in the previous year, representing a growth of about 206.5%[166]. Dividend and Shareholder Returns - The board proposed a final dividend of HKD 0.03 per share, consistent with the previous year's final dividend[8]. - The company declared an interim dividend of HKD 0.005 per share, totaling approximately HKD 4,886,490, and proposed a final dividend of HKD 0.03 per share, amounting to about HKD 29,067,000[56]. - The company aims to balance sufficient capital for business development and shareholder returns when determining dividend distribution[135]. - The company paid dividends totaling HKD 34,578,659, down from HKD 45,544,919 in the previous year[185]. Impact of COVID-19 - The watch manufacturing and trading segment was negatively impacted by the COVID-19 pandemic during the review period[9]. - The hotel operations segment experienced a decrease in revenue and profit due to severe restrictions on international travel caused by the pandemic[13]. - The group recognized approximately HKD 101,000 in rental reductions related to COVID-19 in the profit and loss statement for the year ended March 31, 2021[193]. - The group anticipates gradual improvement in the watch manufacturing and trading business as global vaccination rates increase[18]. - The hotel operations segment saw a decline in revenue and profit due to the adverse effects of the COVID-19 pandemic, prompting the group to shift focus towards long-term tenants to improve occupancy rates and stabilize revenue[35]. Property and Investment Activities - The group completed the sale of a residential property in Canada and is undergoing significant renovations on another property to enhance its capital value[14]. - The group is exploring development opportunities in the luxury residential sector in London and low-density townhouses in the Greater Toronto Area[23][24]. - The fair value of the group's investment properties in Hong Kong and China recorded moderate growth during the review period[34]. - The fair value of the group's investment properties reached HKD 3,946,422,950 as of March 31, 2021, with a fair value increase of HKD 89,949,145 recognized in the consolidated income statement for the year[145]. - The group's available-for-sale development properties amounted to HKD 792,036,770 as of March 31, 2021, with significant management estimates involved in determining their recoverable amounts[148]. Financial Position and Borrowings - As of March 31, 2021, the group's total borrowings amounted to approximately HKD 4.092 billion, an increase of about HKD 67 million from the previous year, with a capital-to-debt ratio of 1.24[36]. - The group's cash and bank balances totaled approximately HKD 1.095 billion as of March 31, 2021, compared to HKD 1.090 billion in the previous year[36]. - As of March 31, 2021, approximately HKD 4.898 billion of the group's properties and fixed deposits were pledged as collateral for bank financing[42]. - The company incurred audit fees of HKD 1,950,000 for audit services and HKD 487,000 for non-audit services, totaling HKD 2,437,000 for the year[130]. - New bank loans amounted to HKD 1,169,015,240, an increase from HKD 683,313,430 in the previous year[185]. Corporate Governance - The company has maintained compliance with the corporate governance code as per the listing rules, with some deviations noted in the annual report[84]. - The board of directors consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors[99]. - The company is committed to maintaining high standards of corporate governance and has complied with the relevant codes[96]. - The company has established a remuneration committee to review and recommend compensation policies for directors and senior management, ensuring a transparent process[112]. - The board has confirmed the independence of all independent non-executive directors based on annual independence confirmation letters received[118]. Audit and Risk Management - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2021[141]. - The audit was conducted in accordance with Hong Kong auditing standards, ensuring compliance with ethical responsibilities[142]. - The company believes it has sufficient resources and expertise in accounting and financial reporting functions to manage risks effectively[126]. - The board has reviewed the effectiveness of the internal control and risk management systems, ensuring they are adequate and effective[126]. - An independent professional has been appointed to perform internal audit functions, assessing various business and operational risks[127].

NATIONAL ELECTRONICS HOLDINGS LIMITED 股份代號 : 213 Stock Code: 213 二 0 二 0 年度中期業績報告 二零二零年中期報告 National Electronics Holdings Limited（「本公司」）董事（「董事」）組成之董事會（「董事 會」）欣然提呈本公司及其附屬公司（統稱「本集團」）截至二零二零年九月三十日止六個月 之中期業績。 簡明綜合損益表 截至二零二零年九月三十日止六個月 | --- | --- | --- | --- | |-------------------------------------------|-------|----------------------------------------------------|---------------------------| | | | 截至九月三十日止六個月 \n二零二零年 （未經審核） | 二零一九年 （未經審核） | | | 附註 | 千港元 | 千港元 | | 收益 銷售成本 | 3 | 1,099,391 (983,294) | 382,738 (310, ...

Financial Performance - The audited consolidated profit attributable to shareholders for the year ended March 31, 2020, was HKD 120,824,879, a decrease from HKD 221,825,779 for the year ended March 31, 2019[19]. - Basic and diluted earnings per share for the year ended March 31, 2020, were HKD 0.12, down from HKD 0.217 for the previous year[19]. - Total revenue for the year ended March 31, 2020, was HKD 673,878,931, a decrease of 23.5% compared to HKD 881,447,549 in 2019[182]. - Gross profit decreased to HKD 114,026,154, down 29.2% from HKD 160,943,090 in the previous year[182]. - The company reported a net profit of HKD 120,786,082, a decline of 45.6% from HKD 221,825,779 in 2019[184]. - The company experienced a decrease in pre-tax profit, reporting HKD 123,738,236 for 2020, down from HKD 299,910,448 in 2019, reflecting a decline of approximately 58.8%[197]. - Financial expenses increased to HKD 115,362,915 in 2020, up from HKD 90,375,429 in 2019, representing a rise of about 27.7%[197]. - The company recorded a significant loss from joint ventures of HKD 73,452,208 in 2020, compared to a profit of HKD 3,910,784 in 2019[197]. - The fair value loss on investment properties was HKD 138,831,295 for the year, compared to a loss of HKD 415,178,334 in the previous year, indicating a reduction in losses[197]. - The company reported a decrease in inventory write-downs, with a gain of HKD 224,365 in 2020, compared to a loss of HKD 2,299,244 in 2019[197]. Dividends and Reserves - The board proposed a final dividend of HKD 0.03 per share for the year ended March 31, 2020, consistent with the previous year's final dividend[20]. - The company declared an interim dividend of HKD 0.005 per share, totaling HKD 5,053,360, and proposed a final dividend of HKD 0.03 per share, amounting to approximately HKD 29,745,000[65]. - As of March 31, 2020, the company's distributable reserves amounted to HKD 177,257,863, a decrease from HKD 231,295,347 in 2019[70]. - The company aims to balance sufficient capital maintenance for business development and shareholder returns, considering various factors such as actual and expected performance, liquidity, and future expansion plans when determining dividends[148]. Operational Challenges - The watch manufacturing and trading segment experienced a decline in revenue and profit due to ongoing US-China trade tensions and the COVID-19 pandemic[21]. - The hotel operations segment also saw a decrease in revenue and profit due to social unrest in Hong Kong and the COVID-19 outbreak[25]. - The group has taken various remedial measures to manage operational costs effectively due to the negative impacts of social unrest and the COVID-19 outbreak on hotel operations[44]. Investments and Projects - The group completed the sale of two villas in a joint venture project in Hong Kong, with sales mentioned in the interim report[26]. - The group completed the sale of part of the land and property located at 88 Queen Street East, Toronto, Canada for CAD 107,000,000[42]. - The group sold two villas at the luxury residential development project at 45 Dapeng Road, Hong Kong, for a total consideration of HKD 916,000,000[42]. - The group has initiated foundation works for a luxury residential project in Hong Kong, expected to complete in Q1 2021[31]. - The group expects the first phase of the residential development project at 88 Queen Street East, Toronto, to complete transactions in Q4 2020, with proceeds of approximately HKD 430,000,000 to be used for repaying bank loans[43]. - The group is developing a new series of hybrid smartwatches that combine traditional watch aesthetics with digital functionalities[39]. Financial Position - As of March 31, 2020, the total borrowings of the group amounted to approximately HKD 4,025,000,000, an increase of about HKD 149,000,000 from the previous year[45]. - The group's capital-to-debt ratio as of March 31, 2020, was 1.19, compared to 1.35 in 2019, calculated based on long-term borrowings of approximately HKD 2,858,000,000[45]. - As of March 31, 2020, the group's bank deposits and cash totaled approximately HKD 1,090,000,000, an increase from HKD 812,000,000 in 2019[45]. - The group has approximately HKD 4,955,000,000 of properties and fixed deposits pledged as collateral for bank financing as of March 31, 2020[51]. - The company’s total equity increased to HKD 2,403,276,021 from HKD 2,374,345,714, a rise of 1.2%[190]. - The company’s total equity as of March 31, 2020, was HKD 2,401,735,729, a slight increase from HKD 2,374,345,714 in the previous year[192]. Governance and Compliance - The company has complied with the corporate governance code as per the listing rules, with some deviations noted in the annual report[94]. - The company has established three committees to assist the board in fulfilling its responsibilities: Audit and Risk Management Committee, Nomination Committee, and Remuneration Committee[109]. - The company has a robust internal control and risk management system in place, which was reviewed during the year[117]. - The audit report for the year was conducted by Guo Wei CPA Limited, which will be proposed for reappointment at the upcoming annual general meeting[102]. - The independent auditor's report was issued on June 24, 2020, by the auditing firm, which is responsible for the audit direction, supervision, and execution[181]. Audit and Financial Reporting - The company is responsible for preparing financial statements that are true and fair according to the Hong Kong Financial Reporting Standards[170]. - The auditor's responsibility includes obtaining reasonable assurance that the financial statements are free from material misstatement due to fraud or error[173]. - The auditor evaluates the appropriateness of accounting policies and the reasonableness of accounting estimates made by management[176]. - The auditor communicates with governance regarding the planned scope and timing of the audit and any significant audit findings[179]. - The total fees for audit services amounted to HKD 1,950,000, while non-audit services totaled HKD 302,000, leading to a combined total of HKD 2,252,000[145].

Financial Performance - Revenue for the six months ended September 30, 2019, was HKD 382,738,000, a decrease of 19.3% compared to HKD 474,242,000 in 2018[2] - Gross profit for the same period was HKD 71,998,000, down 10.4% from HKD 80,104,000 in 2018[2] - Net profit for the period was HKD 63,224,000, representing a decline of 11.5% from HKD 71,408,000 in the previous year[4] - Basic and diluted earnings per share were both HKD 0.0624, compared to HKD 0.0696 in 2018[2] - Total comprehensive income for the period was HKD 65,253,000, an increase of 10.4% from HKD 59,010,000 in 2018[10] - Total revenue for the period reached HKD 2,232,517, a decrease of 12,398 compared to the previous period[16] - The pre-tax profit for the period was HKD 74,541,000, with a net profit of HKD 71,408,000 after tax expenses of HKD 3,133,000[69][70] - Revenue from Hong Kong and China was HKD 372,686,000, down 18.8% from HKD 459,351,000 in the previous year[75] - The total financial expenses for the period were HKD 76,762,000, compared to HKD 58,364,000 in the previous year, indicating an increase of 31.5%[79] Assets and Liabilities - Non-current assets decreased to HKD 4,208,986,000 from HKD 4,679,067,000 as of March 31, 2019[12] - Current assets increased to HKD 2,847,425,000 from HKD 2,210,107,000 as of March 31, 2019[12] - Total liabilities increased to HKD 1,367,538,000 from HKD 1,149,146,000 as of March 31, 2019[14] - The company reported retained earnings of HKD 2,003,175, reflecting a stable financial position[16] - The company recognized lease liabilities of HKD 58,611,000 as of April 1, 2019, with current lease liabilities at HKD 22,602,000 and non-current lease liabilities at HKD 36,009,000[52] - Accounts payable as of September 30, 2019, totaled HKD 101,529,000, an increase from HKD 88,183,000 as of March 31, 2019[96] - Total borrowings amounted to approximately HKD 3.94 billion, with HKD 850 million due within one year[118] Cash Flow - Net cash generated from operating activities was HKD 19,900, up from HKD 13,833 in the previous period[19] - Cash flow from investing activities was HKD 421,367, compared to a cash outflow of HKD 117,582 in the previous period[20] - Cash flow from financing activities was HKD 34,614, an improvement from a cash outflow of HKD 54,267 in the previous period[21] - The net increase in cash and cash equivalents was HKD 475,881, compared to a decrease of HKD 158,016 in the previous period[22] - Cash and cash equivalents at the end of the period totaled HKD 1,299,979, up from HKD 708,502 in the previous period[25] - The group has a cash balance of approximately HKD 1.3 billion as of September 30, 2019, up from HKD 812 million as of March 31, 2019[118] Investment and Property - The company reported a fair value increase of investment properties amounting to HKD 20,443,000 compared to HKD 2,615,000 in 2018[2] - The fair value of investment properties as of September 30, 2019, was HKD 3,261,670,000, reflecting a decrease from HKD 3,816,951,000 as of March 31, 2019[89] - The company recognized a gain of HKD 19,560,000 from the sale of properties, machinery, and equipment during the period[78] - The total rental income net of expenses was HKD 33,122,000, down from HKD 42,999,000 in the previous year[81] - The fair value of investment properties in Hong Kong and China is determined using the residual method, reflecting the quality of completed development projects[92] Segment Performance - For the six months ended September 30, 2019, the company reported total revenue of HKD 382,738,000, with external sales from watch manufacturing and trading amounting to HKD 327,082,000[63] - The company achieved a segment profit of HKD 39,222,000, with hotel operations contributing HKD 25,048,000 to this figure[63] - The company’s segment performance included a profit of HKD 7,705,000 from property development and investment[63] Dividends and Share Capital - The company proposed an interim dividend of HKD 0.005 per share, consistent with the previous year[87] - The issued and fully paid share capital as of September 30, 2019, was HKD 101,079,000, with 1,010,794,962 shares in issue[102] - The company declared an interim dividend of HKD 0.005 per share, consistent with the previous year[114] Management and Governance - The company has established an Audit and Risk Management Committee, consisting of independent non-executive directors, to review accounting principles and practices[137] - The company has adopted a standard code for securities trading that meets or exceeds the requirements set out in the listing rules[138] - As of the report date, the executive directors include Mr. Li Yuanqing and others, while independent non-executive directors include Dr. Sun Bingshu and others[139]

Financial Performance - The audited consolidated profit attributable to owners for the year ended March 31, 2019, was HKD 221,825,779, compared to HKD 218,708,930 for the year ended March 31, 2018, representing a slight increase of 0.97%[8] - Basic and diluted earnings per share for the year ended March 31, 2019, were both HKD 0.217, compared to HKD 0.215 and HKD 0.213 for the year ended March 31, 2018, indicating a year-on-year increase of 0.93%[8] - The company's revenue for the year ended March 31, 2019, was HKD 881,447,549, a decrease of 37.2% compared to HKD 1,405,711,077 in 2018[173] - Gross profit for the year was HKD 160,943,090, down from HKD 174,694,714 in the previous year, reflecting a decline of 7.8%[173] - The company reported a net profit of HKD 221,825,779, slightly up from HKD 218,708,930 in 2018, indicating a growth of 1.0%[176] - The total comprehensive income for the year was HKD 242,274,451, compared to HKD 200,992,867 in the previous year, reflecting an increase of approximately 20.5%[183] Dividends - The board proposed a final dividend of HKD 0.03 per share and a special cash dividend of HKD 0.01 per share, consistent with the previous year's dividends[9] - The company declared an interim dividend of HKD 0.005 per share, totaling HKD 5,101,510 for the year ended March 31, 2019[55] - The proposed final dividend is HKD 0.03 per share and a special cash dividend of HKD 0.01 per share, amounting to approximately HKD 40,526,000[55] - The company aims to balance sufficient capital for business development and shareholder returns, considering actual and expected performance, liquidity, and future expansion plans when determining dividends[140] - The company reported a decrease in dividends paid, totaling HKD (45,770,629) for the year, slightly lower than HKD (46,102,109) in the previous year[183] Revenue and Profit Segments - The watch manufacturing and trading segment experienced a decline in revenue and profit due to the adverse effects of the US-China trade war[10] - The hotel operations segment continued to grow, with improved revenue and profit performance compared to the previous year, driven by enhanced brand recognition[14] - The group anticipates continued weak demand for quartz watches and accessories, expecting another challenging year due to the ongoing trade war[19] - The group continues to improve hotel operations to enhance room rates and occupancy, resulting in satisfactory growth in revenue and profit from the hotel business[33] Investments and Assets - The group entered into a sale agreement for the second phase of a mixed-use development project in Toronto, Canada, for CAD 107,000,000, with a net book value of approximately CAD 56,700,000 as of February 28, 2019[31] - The fair value of the group's investment properties reached HKD 3,816,951,052, with an increase of HKD 415,178,334 recognized in the consolidated income statement for the year[151] - The group's available-for-sale development properties amounted to HKD 881,054,373 as of March 31, 2019, with significant management estimates involved in determining their recoverable amounts[157] - The valuation of available-for-sale development properties is based on the lower of cost and net realizable value, which is estimated by deducting estimated completion costs and selling costs from actual or estimated selling prices[157] Financial Position and Borrowings - The total borrowings of the group as of March 31, 2019, were approximately HKD 3,876 million, an increase of about HKD 423 million from HKD 3,453 million in 2018[34] - The capital-to-debt ratio as of March 31, 2019, was 1.35, up from 1.20 in 2018, calculated based on long-term borrowings of approximately HKD 3,202 million and shareholders' equity of approximately HKD 2,374 million[34] - The group had cash and bank balances totaling approximately HKD 812 million as of March 31, 2019, down from HKD 865 million in 2018[34] - The company’s long-term bank loans rose to HKD 3,201,974,212 from HKD 2,679,999,609, an increase of 19.4%[181] Corporate Governance - The company has complied with the corporate governance code as per the listing rules, with some deviations noted in the annual report[85] - The board of directors consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors[101] - The attendance rate for board meetings was 100% for all directors, with four meetings held during the year[105] - The company has established a set of standards for securities trading by directors, ensuring compliance with the relevant regulations[99] Audit and Compliance - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2019, in accordance with Hong Kong Financial Reporting Standards[147] - The audit report for the year was conducted by Guo Wei CPA Limited, which will be proposed for reappointment at the upcoming annual general meeting[93] - The independent auditor's report emphasizes the importance of professional judgment and maintaining professional skepticism throughout the audit process[165] - The auditor identified and assessed risks of material misstatement due to fraud or error, designing audit procedures to address these risks[165] Market and Strategic Outlook - The group is exploring strategies to diversify its product offerings, including the development of other electronic products, in response to the changing global trade environment[26] - A new multifunctional sports watch with Bluetooth connectivity and various tracking features is being developed to enhance the product lineup[28] - The group is carefully monitoring the market to determine the optimal timing for launching sales of its luxury residential development project in Hong Kong[21]