Community Investment and Social Responsibility - Community investment increased by 8.8%[16] - Total community investment hours increased by 21%[16] - The company has collaborated with "World Vision" since 2016 for a book recycling charity sale, receiving significant support from tenants[1] - The company emphasizes employee well-being and community investment for long-term value creation[17] - The company has been recognized for its corporate social responsibility, receiving the "20 Years Plus Caring Company" award from the Hong Kong Council of Social Service in 2024[174] - The company has actively engaged in charitable activities, including blood donation events and support for underprivileged children and families[174] - The group is actively promoting community service projects, including providing hot meals and fruit to the underprivileged and homeless individuals[179] - The group collaborates with various social welfare organizations to host community activities and workshops, enhancing community engagement[177] Environmental Sustainability - Water consumption decreased by 12%[16] - Packaging materials reduced by 27%[16] - Scope 1 greenhouse gas emissions reduced by 70%[16] - Scope 3 greenhouse gas emissions reduced by 56%[16] - The company has been actively promoting energy-saving and environmental protection initiatives[1] - The company is committed to sustainability initiatives, aiming to reduce carbon emissions by 20% over the next five years[20] - The group has implemented energy-saving measures, including adjusting indoor temperatures to 25.5°C and reducing the use of personal fax and photocopy machines to save electricity[181] - The group aims to reduce electricity density by 6% by the fiscal year 2027/28 compared to 2022/23[188] - The group has not faced significant fines or non-monetary sanctions for violating environmental laws during the reporting period[183] - The group has been actively involved in environmental protection projects, encouraging employees to conserve energy in daily operations[181] Financial Performance and Growth - The company reported a significant increase in user data, with a year-over-year growth of 25% in active users[20] - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[20] - The company reported a revenue increase of 20% to HKD 177,192,000 for the year, compared to HKD 147,353,000 in the previous year[43] - The company reported a 30% increase in net profit for the last fiscal year, reaching $15 million[20] - The loss attributable to shareholders decreased by 35% to HKD 122,649,000, down from HKD 188,289,000 in the prior year[43] - The core profit before tax increased by 165% to HKD 96,986,000, compared to HKD 36,547,000 last year[43] - The group reported a loss attributable to shareholders of HKD 122,649,000, an improvement from a loss of HKD 188,289,000 in the previous year, with core profit increasing by 257% to HKD 84,108,000[55] - Total revenue increased by approximately 20% to HKD 177,192,000, compared to HKD 147,353,000 in the previous year[55] Operational Efficiency and Market Expansion - The company is investing in new technology development, allocating approximately $5 million for R&D in the upcoming year[20] - Market expansion plans include entering two new international markets by Q3 2024, aiming for a 10% market share within the first year[20] - The company plans to enhance its operational efficiency by implementing new supply chain technologies, expected to reduce costs by 8%[20] - The company is considering strategic acquisitions to enhance its product offerings, with a budget of $20 million earmarked for potential targets[20] Corporate Governance and Leadership - The company appointed Ms. Lu Rongwen as an executive director on December 12, 2023, enhancing its leadership team[22] - The board of directors includes experienced members with extensive backgrounds in finance and management, ensuring strong governance[21] - The company has complied with all provisions of the corporate governance code except for specific clauses regarding the separation of roles between the chairman and CEO, which have remained unfilled since April 2015[82] - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, with half of the board being independent[90] - The board is responsible for monitoring management performance and ensuring good corporate governance practices are followed[94] - The company has received independence confirmation letters from all independent non-executive directors, affirming their independence as per regulatory requirements[98] - The board will continue to review and improve corporate governance practices to ensure proper regulation of business activities and decision-making processes[84] Employee Development and Well-being - The company is committed to employee development and providing a safe and healthy workplace, aiming for long-term sustainable growth[88] - Employee costs increased by 18% to HKD 22,215,000 due to bonuses and salary adjustments[65] - Employees are entitled to paid leave including annual leave, maternity leave, and examination leave, ensuring work-life balance[194] - The company is committed to fair and equal treatment in recruitment, promotion, transfer, and training, establishing diverse teams based on business development needs[195] Risk Management and Internal Controls - The group has implemented a robust risk management and internal control system, with annual reviews conducted to assess its effectiveness[141] - The internal audit function has reviewed key processes, including financial reporting and lease management, to identify significant control weaknesses[152] - Management confirms that effective risk management mechanisms and internal control systems have been implemented for the fiscal year ending March 31, 2024[155] - The company has adopted a whistleblowing policy to address any suspected misconduct or fraud related to financial reporting and internal controls[154] - The risk assessment process involves identifying, evaluating, and prioritizing major risks based on their impact and likelihood[148] Shareholder Communication and Engagement - The company has established a shareholder communication policy to ensure timely and equal access to information for shareholders and potential investors[157] - The board has reviewed the implementation of shareholder communication policies and is satisfied with the effectiveness of various communication channels[163] - Shareholders holding at least 5% of total voting rights can request a general meeting according to the Companies Ordinance[160] - The company encourages shareholders to attend annual general meetings to discuss progress and matters[167] - The company will issue a supplementary circular containing candidate details for director nominations as required by listing rules[170] - The board will consider various factors, including financial condition and future prospects, when proposing dividends[173]

Financial Performance - The group reported a pre-tax loss of HKD 175,293,000 for the year[1]. - For the fiscal year ending March 31, 2024, the total revenue was HK$177,192,000, an increase from HK$147,353,000 in the previous year, representing a growth of approximately 20.2%[56]. - The company reported a basic loss per share of HK$0.30 for the year, compared to a loss of HK$0.46 in the previous year[66]. - The loss attributable to shareholders decreased by 35% to HKD 122,649,000 from HKD 188,289,000 in the prior year[116]. - The pre-tax core profit, excluding fair value losses on investment properties, increased by 165% to HKD 96,986,000 from HKD 36,547,000[116]. - The net cash flow from operating activities increased by 57% to HKD 124,735,000, compared to HKD 79,294,000 in the previous year[160]. Revenue and Income - Financial investment segment revenue rose to HKD 48,097,000, with a profit of HKD 44,253,000, a significant recovery from a loss of HKD 17,830,000 in the previous year[14]. - The income from warehouse operations decreased to HK$17,284,000 from HK$20,232,000, reflecting a decline of about 14.4%[42]. - The total rental income from investment properties decreased by 10% to HK$111,811,000 from HK$101,644,000[44]. - The rental income from the group's main investment property was HKD 77,127,000, remaining stable compared to HKD 77,637,000 in the previous year[20]. - The property investment income increased by 10% to HKD 111,811,000, while segment profit (excluding fair value losses) was HKD 62,378,000, nearly unchanged from the previous year[12]. Dividends - Total dividends distributed amounted to HKD 22,275,000, down from HKD 32,400,000 in the previous year[18]. - The company declared a total dividend of HK$0.07 per share for the year, up from HK$0.05 per share in the previous year, marking a 40% increase[45]. - The group proposed a final dividend of HKD 0.045 per share, totaling HKD 18,225,000, compared to HKD 12,150,000 in the previous year, marking a 50% increase[86]. - The company aims to maintain a stable long-term dividend income for shareholders, reflecting its commitment to generous dividend payouts based on business conditions and performance[48]. Assets and Liabilities - The total assets of the company as of March 31, 2024, were HK$3,984,017,000, slightly down from HK$4,008,080,000 in the previous year[69]. - The company's total assets amounted to HKD 4,045,923,000, with cash and bank balances totaling HKD 865,397,000[128]. - The group’s total liabilities decreased slightly to HKD 4,008,080,000 from HKD 4,084,017,000, reflecting a reduction of 1.9%[93]. - The group has no loans or borrowings, resulting in a zero debt-to-equity ratio[129]. Market Conditions - The group anticipates continued downward pressure on rental levels due to increased vacancy rates in the commercial property market[36]. - The group has not observed significant recovery in the consumer market, maintaining a cautious outlook for its warehouse operations segment[15]. - The average occupancy rate for the main investment property, Zhenwan Plaza, fell to 89% from 91%, a decrease of 2%[50]. - The average warehouse storage volume dropped from approximately 14,000 cubic meters last year to about 11,000 cubic meters this year[148]. Corporate Governance - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules, confirming compliance for the year ending March 31, 2024[167]. - The audit committee currently consists of three independent non-executive directors and one non-executive director, with the chairman possessing appropriate professional qualifications in accounting or related financial management[170]. - The company is committed to maintaining high levels of corporate governance to enhance shareholder value through integrity, transparency, and responsible conduct[171].

Financial Performance - For the six months ended September 30, 2023, the company reported a loss attributable to shareholders of approximately HKD 51,740,000, a decrease of about 61.6% compared to a loss of HKD 134,744,000 in the same period of 2022[2]. - Total revenue increased by approximately 30.2% to HKD 88,864,000 from HKD 68,243,000 in the previous year[2]. - The company's loss per share decreased from HKD 0.33 to HKD 0.13[2]. - The company recorded a fair value loss on investment properties of HKD 90,700,000, compared to a loss of HKD 119,140,000 in the same period of 2022[11]. - Basic profit, excluding the fair value loss on investment properties, turned from a loss of HKD 15,604,000 in the previous year to a profit of HKD 38,960,000[20]. - Total comprehensive income for the period was HKD 71,815,000, contrasting with a total comprehensive loss of HKD 134,744,000 in the same period last year[62]. - The company reported a loss before tax of HKD 44,397,000 for the six months ended September 30, 2023, compared to a loss of HKD 128,340,000 for the same period in 2022[89]. - Basic loss per share for the period was HKD 0.128, an improvement from a loss of HKD 0.333 per share in the previous year[93]. Revenue Breakdown - Rental income for the period rose to HKD 55,976,000, an increase of 14.2% from HKD 49,010,000 in the same period last year[5]. - The logistics division's revenue fell by approximately 12.6% to HKD 9,000,000 compared to HKD 10,290,000 in the previous year[22]. - Revenue for the six months ended September 30, 2023, was HKD 88,864,000, representing a 30.3% increase from HKD 68,243,000 in the same period of 2022[62]. - Property investment income increased to HKD 55,976,000, up 14.5% from HKD 49,012,000 year-on-year[62]. - Interest income surged to HKD 21,194,000, a significant increase from HKD 5,512,000 in the previous year[62]. - Revenue from warehouse operations for the six months ended September 30, 2023, was HKD 9,000,000, down from HKD 10,293,000 in the previous year, representing a decline of approximately 12.6%[70]. Cash Flow and Assets - As of September 30, 2023, the company's cash and bank balances were HKD 20,236,000, down from HKD 99,306,000 as of March 31, 2023[13]. - The net cash generated from operating activities was HKD 63,368,000, compared to HKD 167,402,000 in the previous year, indicating a decrease of about 62.2%[65]. - The company experienced a net cash outflow from investing activities of HKD 130,378,000, an improvement from HKD 266,092,000 in the prior year, reflecting a reduction of approximately 51%[65]. - Cash and cash equivalents at the end of the period stood at HKD 20,236,000, up from HKD 16,324,000 year-over-year, marking an increase of about 24.5%[65]. - Current assets rose to HKD 3,104,507,000, compared to HKD 3,075,939,000 at the end of the previous reporting period[63]. - Total assets as of September 30, 2023, amounted to HKD 4,125,932,000, an increase from HKD 4,056,534,000 at the end of March 2023[88]. Shareholder Returns and Dividends - The company declared an interim dividend of HKD 0.025 per share, up from HKD 0.02 per share in the previous year[21]. - The company paid dividends amounting to HKD 12,060,000, down from HKD 24,153,000, indicating a decrease of approximately 50%[65]. - Major shareholder Kenan Financial Limited holds approximately 36.45% of the issued shares, totaling 147,610,335 shares[34]. Corporate Governance and Future Outlook - The group has complied with all corporate governance codes except for specific provisions regarding the separation of roles between the chairman and CEO[39]. - The company anticipates that improvements in local consumption and the completion of ongoing renovations will enhance competitiveness and rental rates in the future[23]. - The group aims to provide higher returns to shareholders in the next economic upcycle as the Hong Kong economy is expected to recover[25]. Investments and Financial Position - The group is exploring several investment opportunities and has engaged professional consultants for development research[25]. - The group's net asset value increased by approximately 1.5% to HKD 3,960,738,000, with net asset value per share rising to HKD 9.78 from HKD 9.63[30]. - The fair value of investment properties at the end of the period was HKD 2,916,700,000, up from HKD 2,854,500,000 at the beginning of the period[94]. - The group has committed to acquiring properties, machinery, and equipment, as well as renovating investment properties, amounting to HKD 22,357,000 as of September 30, 2023, up from HKD 8,274,000 as of March 31, 2023[121]. Employee Costs and Management - Employee costs increased by approximately 22.0% to HKD 10,923,000 compared to HKD 8,950,000 for the six months ended September 30, 2022[26]. - The group has maintained a stable employee count of 39 as of September 30, 2023, consistent with the previous period[31]. - The group reported a total of HKD 667,000 in compensation for directors and key management personnel during the period, a decrease from HKD 778,000 for the six months ended September 30, 2022[122]. Financial Assets and Liabilities - The group’s financial assets measured at fair value through profit or loss include listed equity investments valued at HKD 64,903,000 as of September 30, 2023, down from HKD 71,095,000 as of March 31, 2023[129]. - The group’s non-listed equity investments are valued at HKD 15,313,000 as of September 30, 2023, a slight decrease from HKD 15,366,000 as of March 31, 2023[129]. - The group’s net gain from non-listed investments during the period was HKD 532,000, compared to a loss of HKD 1,245,000 for the six months ended September 30, 2022[131]. - The group’s total receivables over 90 days as of September 30, 2023, amounted to HKD 972,000, compared to HKD 170,000 as of March 31, 2023[127]. - The company believes that the carrying value of other financial assets and liabilities measured at amortized cost is similar to their fair value[132]. - The fair value of these financial assets and liabilities is measured using widely accepted valuation models based on discounted cash flow analysis[132].

[Financial Highlights](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) [Financial Highlights](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) For the six months ended September 30, 2023, the Group's total revenue increased by 30.2% to HKD 88.86 million, and loss attributable to owners of the Company significantly narrowed by 61.6% to HKD 51.74 million. Excluding the impact of fair value loss on investment properties, the Group's underlying business turned from a loss in the prior period to a profit, indicating improved core operating performance Financial Highlights for the Six Months Ended September 30, 2023 | Indicator | 2023 Sep 30 (Six Months) | 2022 Sep 30 (Six Months) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | HKD 88,864,000 | HKD 68,243,000 | +30.2% | | **Loss Attributable to Owners of the Company** | HKD 51,740,000 | HKD 134,744,000 | -61.6% | | **Loss Per Share** | HKD 0.13 | HKD 0.33 | -60.6% | | **Interim Dividend** | HKD 2.5 HK cents per share | HKD 2.0 HK cents per share | +25.0% | - Excluding fair value loss on investment properties, the Group's underlying profit turned from a loss of **HKD 15.60 million** in the prior period to a profit of **HKD 38.96 million** for the period, indicating significant improvement in core business profitability[70](index=70&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%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) During the reporting period, the Group's revenue increased by 30.2% to HKD 88.86 million, primarily due to increased property investment and interest income. Although impairment on fair value of investment properties was HKD 90.70 million, it narrowed from HKD 119.14 million in the prior year, leading to significant reductions in both loss before tax and loss attributable to owners of the Company Key Items from Statement of Profit or Loss (For the Six Months Ended September 30) | Item (HKD thousands) | 2023 | 2022 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Revenue** | 88,864 | 68,243 | +30.2% | | Impairment loss on fair value of investment properties | (90,700) | (119,140) | Loss reduced by 23.9% | | Staff costs | (10,923) | (8,950) | +22.0% | | **Loss Before Tax** | (44,397) | (128,340) | Loss reduced by 65.4% | | **Loss Attributable to Owners of the Company for the Period** | (51,740) | (134,744) | Loss reduced by 61.6% | | **Loss Per Share (HKD)** | (0.13) | (0.33) | Loss reduced by 60.6% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of September 30, 2023, the Group's total assets increased to HKD 4.13 billion, and net assets (equity attributable to owners of the Company) were HKD 3.96 billion, showing growth from the beginning of the period. The asset structure is primarily non-current assets, especially investment properties. The company maintains a strong financial position with a current ratio of 16.93 times and no bank loans Key Items from Statement of Financial Position | Item (HKD thousands) | 2023 Sep 30 | 2023 Mar 31 | Change | | :--- | :--- | :--- | :--- | | Investment Properties | 2,916,700 | 2,854,500 | +2.2% | | **Total Assets** | 4,125,932 | 4,056,534 | +1.7% | | **Total Liabilities** | 165,194 | 155,461 | +6.3% | | **Equity Attributable to Owners of the Company** | 3,960,738 | 3,901,073 | +1.5% | - The Group has ample liquidity with a current ratio of approximately **16.93 times** and no bank loans[43](index=43&type=chunk) [Notes to the Financial Statements](index=5&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) [Revenue and Segment Information](index=6&type=section&id=%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) The Group's total revenue growth was primarily driven by the property investment and financial investments segments. Property investment revenue grew by 14.2%, and the financial investments segment saw a 167.3% increase in revenue due to significantly higher bank interest income. However, the core warehouse operations segment's revenue decreased by 12.6% year-on-year, reflecting challenges in this business Segment Revenue (For the Six Months Ended September 30) | Segment | 2023 (HKD thousands) | 2022 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Warehouse Operations | 9,000 | 10,293 | -12.6% | | Property Investment | 55,976 | 49,012 | +14.2% | | Financial Investments | 23,888 | 8,938 | +167.3% | | **Consolidated Total Revenue** | **88,864** | **68,243** | **+30.2%** | Segment (Loss) Profit (For the Six Months Ended September 30) | Segment | 2023 (HKD thousands) | 2022 (HKD thousands) | | :--- | :--- | :--- | | Warehouse Operations | (2,411) | 750 | | Property Investment | (53,435) | (88,706) | | Financial Investments | 16,094 | (36,084) | | **Consolidated Segment (Loss) Profit** | **(39,752)** | **(124,040)** | [Dividends](index=9&type=section&id=%E8%82%A1%E6%81%AF) The Board of Directors resolved to declare an interim dividend of HKD 2.5 HK cents per share, a 25% increase from HKD 2 HK cents per share in the prior year, demonstrating confidence in the company's future cash flow. The total dividend amounted to approximately HKD 10.13 million - The Board of Directors resolved to declare an interim dividend of **HKD 2.5 HK cents per share**, higher than **HKD 2 HK cents per share** in the prior year[19](index=19&type=chunk) Dividend Distribution | Dividend Type | 2023 | 2022 | | :--- | :--- | :--- | | Interim Dividend (per share) | HKD 2.5 HK cents | HKD 2.0 HK cents | | Total Interim Dividend (HKD thousands) | 10,125 | 8,100 | [Loss Per Share](index=9&type=section&id=%E6%AF%8F%E8%82%A1%E4%BA%8F%E6%8D%9F) During the reporting period, basic loss per share was HKD 0.13, a significant narrowing from HKD 0.33 per share in the prior year. This was primarily due to a substantial reduction in loss attributable to owners of the Company. Diluted loss per share was not presented as there were no potential dilutive shares during the period - Basic loss per share is calculated based on the **loss attributable to owners of the Company of HKD 51.74 million** and **405,000,000 issued shares**[20](index=20&type=chunk) Loss Per Share Comparison | Indicator | 2023 Sep 30 (Six Months) | 2022 Sep 30 (Six Months) | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (HKD) | 51,740,000 | 134,744,000 | | Basic Loss Per Share (HKD) | 0.13 | 0.33 | [Management Discussion and Analysis](index=11&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) [Business Review](index=11&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE) The Group's business segments showed mixed performance. Warehouse operations experienced a revenue decline due to a weak macroeconomic environment; property investment achieved revenue growth by successfully leasing new floor areas; and the financial investments segment benefited from a high-interest rate environment, with a significant increase in interest income, effectively offsetting the adverse impact on the warehouse business [Warehouse Operations Segment](index=11&type=section&id=%E8%B4%A7%E4%BB%93%E8%90%A5%E8%BF%90%E5%88%86%E9%83%A8) Affected by global high-interest rates, trade disputes, and geopolitical tensions, the warehouse operations segment performed below expectations. Total storage volume dropped to its lowest point since the pandemic, leading to a 12.6% year-on-year revenue decrease to HKD 9.00 million. To address challenges, the Group has leased out some warehouse floors to reduce operating area and maintain storage rates - Due to continued weak overseas and mainland demand, revenue from the warehouse operations segment decreased by **12.6%** to **HKD 9.00 million**[27](index=27&type=chunk) - Total storage volume fell to approximately **10,000 cubic meters** at the end of September 2023, the lowest level since the 2020 pandemic[27](index=27&type=chunk) [Property Investment Segment](index=11&type=section&id=%E7%89%A9%E4%B8%9A%E6%8A%95%E8%B5%84%E5%88%86%E9%83%A8) Despite increased office supply in the East Kowloon area and challenges from nearby construction, the property investment segment achieved revenue growth. By successfully leasing two floors of the Safety Godown Centre IV property in Kwai Chung, rental income for the first half increased to HKD 55.98 million, a 14.2% year-on-year increase - Successfully leasing two floors of the Safety Godown Centre IV property in Kwai Chung drove a **14.2%** year-on-year increase in rental income to **HKD 55.98 million** for the first half[34](index=34&type=chunk) - Cheung Wan Plaza business faces continuous pressure from increased office supply in East Kowloon and ongoing improvement works at Kwun Tong Ferry Pier[34](index=34&type=chunk) [Financial Investments Segment](index=11&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%95%E8%B5%84%E5%88%86%E9%83%A8) Benefiting from a conservative investment strategy, with most liquid assets placed in time deposits, the financial investments segment performed satisfactorily. Bank interest income increased by approximately 3.2 times year-on-year to HKD 20.42 million, leading to a net profit of HKD 16.09 million for the segment, effectively hedging risks from other businesses - Due to a conservative strategy, interest income from banks increased by approximately **3.2 times** to **HKD 20.42 million** in the first half[29](index=29&type=chunk) - The segment recorded a net profit of **HKD 16.09 million**, with its revenue performance able to offset the adverse operating environment of warehouse logistics[29](index=29&type=chunk) [Outlook and Investment Plans](index=12&type=section&id=%E5%B1%95%E6%9C%9B%E4%B8%8E%E6%8A%95%E8%B5%84%E8%AE%A1%E5%88%92) Looking ahead, the Group maintains cautious optimism for the warehouse business, expecting government stimulus plans to drive improvement. For property investment, high interest rates are anticipated to continue pressing property valuations. Concurrently, the Group is actively seeking new investment opportunities in the adjusted property market to generate higher returns for shareholders - Warehouse business: Expecting government stimulus consumption plans to drive an increase in storage rates and turnover rates in the second half[37](index=37&type=chunk) - Property investment: Anticipating interest rates to remain high, further losses are expected upon revaluation of investment properties[38](index=38&type=chunk) - Investment plans: The Group will closely monitor investment opportunities and has explored several, including engaging professional consultants for development studies[32](index=32&type=chunk)[39](index=39&type=chunk) [Financial Review](index=13&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%B1) During the period, the Group's total revenue reached HKD 88.86 million, a 30.2% year-on-year increase. Staff costs rose by 22.0% due to increased salaries and bonuses. Net assets increased by 1.5% to HKD 3.96 billion, and net asset value per share increased to HKD 9.78. The company maintains strong liquidity with a current ratio of 16.93 times and no bank borrowings - Staff costs increased by approximately **22.0%** year-on-year to **HKD 10.92 million**, primarily due to increases in basic salaries and bonuses[41](index=41&type=chunk) - The Group recorded an impairment loss on fair value of investment properties of **HKD 90.70 million**, a reduction from **HKD 119.14 million** in the prior year[41](index=41&type=chunk) - The Group's net assets increased by approximately **1.5%** to **HKD 3.96 billion**, with net asset value per share increasing to **HKD 9.78**[45](index=45&type=chunk) [Other Information](index=14&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Employees and Risk Management](index=14&type=section&id=%E5%83%87%E5%91%98%E5%8F%8A%E9%A3%8E%E9%99%A9%E7%AE%A1%E7%90%86) As of the end of the reporting period, the Group's employee count remained stable at 39, but staff costs increased by 22.0% year-on-year. The Group's foreign exchange risk is primarily related to USD investments, but due to the HKD's peg to the USD, the risk is considered immaterial. No significant contingent liabilities or asset pledges were present during the period - As of September 30, 2023, the Group had **39 employees**, consistent with the beginning of the period. Staff costs increased by approximately **22.0%** to **HKD 10.92 million** during the period[46](index=46&type=chunk) - The Group's foreign currency risk is primarily related to **USD-denominated securities investments and deposits**, but management considers the risk immaterial. A foreign exchange loss of **HKD 0.67 million** was recorded during the period[48](index=48&type=chunk) - As of the end of the reporting period, the Group had no significant contingent liabilities or asset pledges[49](index=49&type=chunk)[50](index=50&type=chunk) [Corporate Governance](index=15&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB) The company complied with most corporate governance code provisions during the reporting period, but some deviations existed. Key issues included the continuous vacancy of the Chairman and Chief Executive Officer positions since 2015, and the number of independent non-executive directors falling below Listing Rules requirements due to a resignation. The company is actively seeking suitable candidates to fill the vacancies - The company deviated from the Corporate Governance Code, primarily because the roles of **Chairman of the Board and Chief Executive Officer** have been vacant since April 5, 2015[55](index=55&type=chunk) - Due to the resignation of an independent non-executive director, the Board of Directors did not meet the requirement of at least **three independent non-executive directors** as stipulated by Listing Rule 3.10(1)[57](index=57&type=chunk) - The company is seeking suitable candidates for appointment as independent non-executive directors to fill the vacancy and comply with the Listing Rules[58](index=58&type=chunk)

Company Location and Facilities - The company is located in a prime area of Hong Kong's Kowloon East, specifically at 2 Wing Yip Street, Kwun Tong, with a 180-degree view of Victoria Harbour[29] - The LU+ Business Centre features high-quality meeting venues for multifunctional purposes and a state-of-the-art gym room[31] Risk Management and Governance - The company has implemented effective risk management mechanisms and internal control systems as of March 31, 2023[7] - The board has reviewed the implementation of the shareholder communication policy and is satisfied with its effectiveness[12] - The company has adopted a whistleblowing policy to ensure transparency and accountability in handling suspicious activities and fraud[6] - The company maintains a zero-tolerance policy towards corruption and has established a comprehensive anti-corruption framework[6] - The company has engaged a professional firm for internal audit functions to assist the board in reviewing the internal control systems[16] - The company has a strong governance structure, with experienced board members overseeing its operations and strategic direction[52][54] - The company emphasizes high standards of business ethics and governance, requiring all employees to act legally and ethically according to the company's policies[171] - The board is responsible for long-term strategy formulation and monitoring, approving dividends, and reviewing significant acquisitions and asset sales[179] - The company has established a mechanism for directors to seek independent professional advice to ensure strong decision-making independence[180] - The board will continue to review and improve corporate governance practices to ensure proper regulation of business activities and decision-making processes[169] Shareholder Engagement and Dividends - The company encourages shareholders to attend annual general meetings to discuss progress and matters[2] - The company has a dividend policy in place, although specific figures are not detailed in the provided content[25] - The company aims to provide shareholders with a long-term stable dividend income, subject to performance and business environment considerations[40] - The company proposed a final dividend of HKD 0.03 per share, totaling HKD 12.15 million, down from HKD 0.06 per share in the previous year[81] - The board aims to provide stable long-term dividend income to shareholders, with generous dividends based on business conditions and company performance[164] Community Engagement and Social Responsibility - The company has been recognized for 20 consecutive years with the "Caring Company" logo, reflecting its commitment to social responsibility[41] - The company supports various community service initiatives, including providing meals and vouchers to underprivileged groups and the elderly[45] - The company has sponsored the Hong Kong women's volleyball team for a five-year development plan to improve their skills[44] - The company has engaged in charitable activities, including supporting the Hong Kong Red Cross and various local community projects[43] - The company has implemented community service plans to assist underprivileged women and unemployed individuals through training and employment support[44] - The company has organized fundraising events to support local charities, raising funds to provide 1,608 meal boxes for the underprivileged[45] - The company has been actively involved in environmental protection initiatives and community engagement activities[41] - The company has committed to community investment, with a focus on creating a positive social impact[199] Financial Performance - The company reported a loss attributable to shareholders of approximately HKD 188.29 million, an increase of about 123% compared to a loss of HKD 84.54 million in the same period last year[83] - Revenue increased by approximately 20% to HKD 147.35 million from HKD 122.85 million in the previous year[83] - The company's pre-tax core profit, excluding fair value losses on investment properties, decreased by approximately 43% to about HKD 36.55 million[83] - The pre-tax loss was HKD 175.29 million, an increase of about 142% compared to a loss of HKD 72.51 million in the previous year[83] - Total assets decreased to HKD 4,056.53 million from HKD 4,175.96 million in the previous year[83] - The company's net asset value per share was HKD 9.63, down from HKD 9.95 in the previous year[83] - Total rental income increased by approximately 6% to HKD 101,644,000, while profit (excluding fair value losses on investment properties) rose by about 17% to HKD 62,391,000[85] - The financial investment segment reported a significant loss, with revenue increasing by approximately 262% to HKD 25,477,000, but a loss of HKD 17,830,000 due to increased fair value losses on financial assets[89] - The company sold 5,200 ounces of non-physical gold, incurring a loss of approximately HKD 8,226,000, and also recorded a loss of HKD 13,392,000 from the sale of all overseas stocks[89] Employee Welfare and Development - The group has established a fair and effective performance evaluation system and incentive bonus plan to motivate employees and achieve business performance goals[126] - The company emphasizes employee well-being and work-life balance, providing paid leave for various circumstances[151] - The company offers competitive compensation packages, including mandatory provident fund contributions, medical insurance, and various allowances, with annual reviews based on macroeconomic conditions and company performance[149] - The total employee turnover for the reporting period was 1, a significant decrease from 6 in the previous year[161] - The company reported zero employee work-related fatalities during the reporting period, maintaining a consistent record over the past three years[146] - Employee work-related lost days due to injuries were recorded at 0 for the current year, down from 3 in the previous year[146] - The total training hours for employees reached 922 hours in 2023, significantly up from 118.5 hours in 2022, with 25 employees receiving training[192] - The average training hours for employees in 2023 were 60.75 hours, compared to 9.63 hours in 2022[195] - The company aims to enhance employee retention and development through internal and external training programs[191] - The employee turnover rate for those aged 30 and below was 0.0%, while the rate for those aged 30-49 was also 0.0%[188] Environmental, Social, and Governance (ESG) Initiatives - The ESG report outlines the company's commitment to sustainability and the significant impact of its operations on environmental and social issues[48] - The report adheres to the ESG reporting guidelines set by the Hong Kong Stock Exchange, ensuring accuracy and consistency in disclosures[50] - The company emphasizes the importance of stakeholder engagement in assessing significant ESG issues and their impacts[51] - The company has implemented various environmental protection initiatives, including recycling programs and energy-saving measures in its offices[48] - The group reported a 71% reduction in liquefied petroleum gas energy consumption and a 37% decrease in pallet usage, reflecting its commitment to improving ESG performance[140] - The average training hours for trained employees increased by 4.3 times, with the proportion of trained employees rising by 17%[140] - The company has implemented a zero-tolerance policy regarding child labor and forced labor within its operations and supply chain[156] - Compliance with occupational health and safety regulations has been maintained, with no significant violations reported during the period[148] - The company conducts systematic checks and follows ISO45001:2018 standards to mitigate risks and enhance workplace safety[144] Market Outlook and Challenges - The company anticipates continued pressure on rental income due to high supply of new office buildings in East Kowloon and potential tenant downsizing requests[93] - The management plans to enhance marketing and property management to attract more tenants amid a challenging rental environment[93] - The company will continue to monitor market conditions and adjust its investment portfolio in response to uncertainties in the global financial market[95] - The outlook for economic recovery in Hong Kong remains cautious, with ongoing geopolitical tensions and high energy prices posing threats to global economic recovery[90] - The group’s financial performance is significantly influenced by the rental levels and occupancy rates of its properties, with potential risks from government policy changes affecting rental income[130] - The investment portfolio's market value fluctuations can have a substantial impact on the group's profitability, necessitating close monitoring of overall investment sentiment[132] Employee Statistics - As of March 31, 2023, the group employed 39 staff, an increase from 36 staff in the previous year, with total employee costs amounting to HKD 18,836,000, up from HKD 16,796,000 in 2022[126] - The total number of female employees increased from 16 in 2022 to 18 in 2023, while male employees increased from 20 to 21[190] - The employee turnover rate by gender showed 0.0% for females and 4.8% for males, compared to 15.0% and 18.8% respectively in the previous year[187]

[Full Year Performance Overview](index=1&type=section&id=%E5%85%A8%E5%B9%B4%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A6%BD) The Group's loss attributable to shareholders significantly expanded by 123% to HKD 188 million, despite a 20% increase in total revenue to HKD 147 million [Overall Performance](index=1&type=section&id=Overall%20Performance) For the year ended March 31, 2023, the Group's loss attributable to shareholders significantly expanded by 123% to HKD 188 million, primarily due to fair value losses on investment properties and financial assets Key Performance Indicators for FY2023 | Indicator | 2023 | 2022 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Revenue | HKD 147 million | HKD 123 million | +20% | | Loss Attributable to Shareholders | (HKD 188 million) | (HKD 85 million) | +123% | | Basic Loss Per Share | (HKD 0.46) | (HKD 0.21) | +119% | - Excluding fair value losses on investment properties, the Group's core pre-tax profit decreased by approximately **43%** from **HKD 64.04 million** to **HKD 36.55 million**, indicating a decline in core business profitability[41](index=41&type=chunk) [Consolidated Financial Statements](index=1&type=section&id=Consolidated%20Financial%20Statements) The Group's financial statements show a 20% revenue increase to HKD 147 million, but significant fair value losses led to a 142% expansion in pre-tax loss to HKD 175 million [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&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) The Group's total revenue increased by 20% to HKD 147 million, driven by property investment and interest income, but substantial fair value impairments resulted in a HKD 175 million loss before tax Consolidated Income Statement Summary (HKD thousands) | Item | 2023 | 2022 | | :--- | :--- | :--- | | Revenue | 147,353 | 122,850 | | Impairment of Investment Properties at Fair Value | (211,840) | (136,558) | | Other Gains and Losses | (41,117) | 11,403 | | Loss Before Tax | (175,293) | (72,514) | | Loss for the Year | (188,289) | (84,538) | [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) The Group's total assets slightly decreased to HKD 4.01 billion, with equity attributable to shareholders also reducing to HKD 3.90 billion, while maintaining strong liquidity with HKD 932 million in net current assets and no bank borrowings Consolidated Statement of Financial Position Summary (HKD thousands) | Item | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 3,075,939 | 3,209,084 | | Current Assets | 980,595 | 966,876 | | **Total Assets** | **4,056,534** | **4,175,960** | | **Equity and Liabilities** | | | | Equity Attributable to Shareholders | 3,901,073 | 4,028,136 | | Non-current Liabilities | 107,007 | 95,703 | | Current Liabilities | 48,454 | 52,121 | | **Total Equity and Liabilities** | **4,056,534** | **4,175,960** | [Notes to the Financial Statements](index=4&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details the Group's accounting policies, revenue composition, segment performance, and key financial items impacting the annual results [Basis of Preparation and Accounting Policies](index=4&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%20%26%202.%20%E6%8E%A1%E7%94%A8%E7%B6%93%E4%BF%AE%E8%A8%82%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%88%87) These consolidated financial statements are prepared under HKFRS, with revised standards adopted during the year having no significant impact on the Group's financial position or performance - The financial statements are prepared on a historical cost basis, except for investment properties and certain financial instruments measured at fair value[6](index=6&type=chunk) - The application of amendments to Hong Kong Financial Reporting Standards during the current year had no significant impact on the consolidated financial statements[21](index=21&type=chunk) [Revenue and Segment Information](index=5&type=section&id=3.%20%E6%94%B6%E5%85%A5%20%26%204.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's business is segmented into warehouse operations, property investment, and financial investment, with property investment as the largest revenue source, though financial investment recorded significant losses in FY2023 [Revenue Composition](index=5&type=section&id=3.%20%E6%94%B6%E5%85%A5) Total revenue increased by 20% to HKD 147 million, primarily benefiting from a 6% growth in property investment income to HKD 102 million and a nearly tenfold increase in bank interest income to HKD 20.04 million Revenue Source Details (HKD thousands) | Revenue Type | 2023 | 2022 | | :--- | :--- | :--- | | Warehouse Operations Revenue | 20,232 | 19,719 | | Property Investment Income | 101,644 | 96,095 | | Dividend Income from Listed and Unlisted Investments | 4,005 | 4,946 | | Bank Interest Income | 20,039 | 751 | | Other Interest Income | 1,433 | 1,339 | | **Total** | **147,353** | **122,850** | [Segment Performance](index=6&type=section&id=4.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) Due to fair value adjustments, the property investment segment recorded a HKD 149 million pre-tax loss, while the financial investment segment turned to a HKD 17.83 million loss, and warehouse operations profit sharply declined by 76% to HKD 0.73 million Segment Results (HKD thousands) - As at March 31, 2023 | Segment | Segment Revenue | Segment Profit (Loss) | | :--- | :--- | :--- | | Warehouse Operations | 20,232 | 729 | | Property Investment | 101,644 | (149,449) | | Financial Investment | 25,477 | (17,830) | | **Consolidated Total** | **147,353** | **(166,550)** | [Notes on Key Financial Items](index=9&type=section&id=Key%20Financial%20Items%20Notes) This section details key financial items impacting performance, including components of loss before tax, tax calculations, dividend distribution, and loss per share, with financial assets at fair value through profit or loss generating a significant HKD 41.45 million fair value loss [Loss Before Tax](index=9&type=section&id=5.%20%E9%99%A4%E7%A8%85%E5%89%8D%E虧%E6%90%8D) The HKD 175 million loss before tax was primarily due to impairment of investment properties at fair value (HKD 212 million) and a fair value loss on financial assets of HKD 41.45 million, contrasting sharply with last year's HKD 11.01 million gain - During the year, financial assets at fair value through profit or loss recorded a fair value loss of **HKD 41,453 thousand**, compared to a gain of **HKD 11,005 thousand** in the prior year[30](index=30&type=chunk) [Taxation](index=10&type=section&id=6.%20%E7%A8%85%E9%A0%85) Despite recording a pre-tax loss, the Group incurred a tax expense of HKD 12.996 million, comprising HKD 8.059 million in Hong Kong profits tax and HKD 4.937 million in deferred tax Tax Expense Details (HKD thousands) | Item | 2023 | 2022 | | :--- | :--- | :--- | | Hong Kong Profits Tax | 8,059 | 7,071 | | Deferred Tax | 4,937 | 4,953 | | **Total** | **12,996** | **12,024** | [Dividends](index=10&type=section&id=7.%20%E8%82%A1%E6%81%AF) The Board recommended a final dividend of HKD 0.03 per share for FY2023, a 50% reduction from last year, resulting in a total annual dividend of HKD 0.05 per share, lower than FY2022's HKD 0.10 - The Board recommended a final dividend of **HKD 0.03 per ordinary share** (2022: HKD 0.06), totaling **HKD 12,150,000**[33](index=33&type=chunk) - Total dividends paid during the year amounted to **HKD 32,400,000**, compared to **HKD 210,600,000** last year (including special dividends)[59](index=59&type=chunk) [Loss Per Share](index=10&type=section&id=8.%20%E6%AF%8F%E8%82%A1%E虧%E6%90%8D%EF%BC%8D%E5%9F%BA%E6%9C%AC) Based on an annual loss of HKD 188 million and 405 million issued shares, basic loss per share increased from HKD 0.21 last year to HKD 0.46, with no diluted loss per share presented due to the absence of potential dilutive ordinary shares - Basic loss per share is calculated based on the loss for the year attributable to owners of the Company of **HKD 188,289,000** and **405,000,000** issued shares[34](index=34&type=chunk)[60](index=60&type=chunk) [Trade and Other Receivables](index=11&type=section&id=9.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) The Group's trade receivables are primarily short-term, mostly aged within 60 days, with total trade and other receivables remaining stable at approximately HKD 19.34 million Trade Receivables Ageing Analysis (HKD thousands) | Ageing | 2023 | 2022 | | :--- | :--- | :--- | | Within 60 days | 3,284 | 5,249 | | 61 to 90 days | 518 | 851 | | Over 90 days | 170 | 76 | | **Total** | **3,972** | **6,176** | [Management Discussion and Analysis](index=12&type=section&id=Management%20Discussion%20and%20Analysis) The Group's core pre-tax profit decreased by 43% to HKD 36.55 million, while overall pre-tax loss expanded by 142% to HKD 175 million, reflecting mixed performance across segments amidst economic recovery and market volatility [Business Review](index=12&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's core pre-tax profit (excluding fair value changes of investment properties) decreased by 43% to HKD 36.55 million, while the pre-tax loss including all items expanded by 142% to HKD 175 million, reflecting flat warehouse business, rental growth in property investment, and significant losses in financial investment due to market volatility [Warehouse Operations Segment](index=13&type=section&id=%E8%B2%A8%E5%80%89%E7%87%9F%E9%81%8B%E5%88%86%E9%83%A8) Segment revenue slightly increased by 3% to HKD 20.23 million, but profit plummeted by 76% to HKD 0.73 million, with profit margin compressing from 15% to 4%, despite improved average utilization and slightly higher average rent per cubic meter Key Warehouse Operations Indicators | Indicator | 2023 | 2022 | | :--- | :--- | :--- | | Segment Revenue | HKD 20.23 million | HKD 19.72 million | | Segment Profit | HKD 0.73 million | HKD 3.02 million | | Average Utilization Rate | 52% | 48% | | Average Rent Per Cubic Meter | Approx. HKD 97 | Approx. HKD 95 | [Property Investment Segment](index=13&type=section&id=%E7%89%A9%E6%A5%AD%E6%8A%95%E8%B3%87%E5%88%86%E9%83%A8) Total rental income increased by 6% to HKD 102 million, and profit (excluding fair value changes) grew by 17% to HKD 62.39 million, with the flagship property's occupancy rate improving to 91% through successful tenant attraction and retention initiatives - Total rental income increased by approximately **6%** to **HKD 101,644,000**, and profit (excluding impairment of investment properties at fair value) increased by approximately **17%** to **HKD 62,391,000**[43](index=43&type=chunk) - The 'The LU+' business center platform at Chinachem Plaza successfully built a tenant community, playing a key role in attracting and retaining tenants[69](index=69&type=chunk) [Financial Investment Segment](index=14&type=section&id=%E8%B2%A1%E5%8B%99%E6%8A%95%E8%B3%87%E5%88%86%E9%83%A8) This segment's performance was disappointing, turning from a profit of HKD 15.58 million last year to a loss of HKD 17.83 million, primarily due to fair value losses on equities, bonds, and investment funds, with significant realized losses from asset sales during the year - The segment turned from a profit of **HKD 15.58 million** last year to a loss of **HKD 17.83 million**, due to increased fair value losses on financial assets at fair value through profit or loss[45](index=45&type=chunk) - During the year, **5,200 ounces** of non-physical gold and all overseas equities were sold, realizing losses of approximately **HKD 8.23 million** and **HKD 13.39 million** respectively[71](index=71&type=chunk) [Outlook](index=14&type=section&id=%E5%B1%95%E6%9C%9B) The Group maintains a cautious outlook, anticipating pressure on warehouse revenue due to client inventory adjustments, challenges in property investment from high office supply in East Kowloon, and continued uncertainty in financial investment amidst global market volatility, with most cash currently held in time deposits - Warehouse operations: Clients no longer need to maintain high inventories due to supply chain disruption risks, anticipating revenue pressure[74](index=74&type=chunk) - Property investment: High supply of new office space in East Kowloon, coupled with tenant surrender requests, will continue to pressure future rental income[74](index=74&type=chunk) - Financial investment: Ongoing global financial market uncertainty requires management to cautiously observe the market and adjust asset allocation, with most cash placed in time deposits[104](index=104&type=chunk)[100](index=100&type=chunk) [Financial Summary](index=16&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This section reviews the Group's robust financial position, characterized by a zero gearing ratio, ample liquidity with HKD 827 million in cash and bank balances, a high current ratio of 20.24 times, and a slight decrease in net asset value per share to HKD 9.63 [Liquidity and Financial Resources](index=17&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group primarily funds operations through internal cash reserves and operating cash flow, with no loans or borrowings, resulting in a zero gearing ratio, and strong liquidity with total cash and bank balances increasing to HKD 827 million and the current ratio improving to 20.24 times Liquidity Indicators | Indicator | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | | Total Cash and Bank Balances | HKD 827 million | HKD 615 million | | Net Current Assets | HKD 932 million | HKD 915 million | | Current Ratio | 20.24 times | 18.55 times | | Gearing Ratio | Zero | Zero | [Employees](index=18&type=section&id=%E8%88%87%E5%83%B1%E5%93%A1%E3%80%81%E5%AE%A2%E6%88%B6%E5%8F%8A%E4%BE%9B%E6%87%89%E5%95%86%E4%B9%8B%E9%97%9C%E4%BF%82) As of March 31, 2023, the Group's employee count increased to 39, with total staff costs rising by 12% to HKD 18.84 million, reflecting the Group's commitment to providing a safe working environment and equal development opportunities - As of March 31, 2023, the Group employed **39 staff** (2022: 36 staff), with total staff costs amounting to **HKD 18,836,000** (2022: HKD 16,796,000)[87](index=87&type=chunk) [Corporate Governance and Other Information](index=12&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers the Board's recommended final dividend, the company's corporate governance practices including deviations from code provisions, and the Audit Committee's review of financial statements [Dividends and Shareholder Information](index=12&type=section&id=%E8%82%A1%E6%81%AF%20%26%20%E8%82%A1%E6%9D%B1%E9%80%B1%E5%B9%B4%E5%A4%A7%E6%9C%83) The Board recommended a final dividend of HKD 0.03 per share, subject to approval at the Annual General Meeting on August 18, 2023, with specified book close dates for determining shareholders' eligibility to receive dividends and attend the meeting - The proposed final dividend is **HKD 0.03 per share**, payable on September 18, 2023, after approval at the Annual General Meeting[63](index=63&type=chunk) - The Annual General Meeting is scheduled for **August 18, 2023**[64](index=64&type=chunk) [Corporate Governance Practices](index=19&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The company strives for high corporate governance standards but deviated from certain code provisions during the year, most notably the prolonged vacancy of the Chairman and CEO positions since April 2015, with responsibilities jointly performed by the Board and executive directors - The company complied with all code provisions of the Corporate Governance Code during the year, with certain deviations[132](index=132&type=chunk) - Since **April 5, 2015**, the positions of Chairman and Chief Executive Officer of the company's Board have been vacant, with related responsibilities jointly performed by the Board[120](index=120&type=chunk)[91](index=91&type=chunk) [Audit Committee](index=19&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%91%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors and one non-executive director and chaired by Mr. Leung Man Chiu, has reviewed the Group's accounting policies and practices and the audited consolidated financial statements for the year - The Audit Committee consists of **four members**, with Chairman Mr. Leung Man Chiu possessing appropriate professional qualifications as required by the Listing Rules[118](index=118&type=chunk) - The Audit Committee has reviewed the accounting policies and practices adopted by the Group and the audited consolidated financial statements for the year[90](index=90&type=chunk)

Financial Performance - The company recorded a loss attributable to shareholders of approximately HKD 134,744,000 for the six months ended September 30, 2022, an increase of about 78.5% compared to a loss of HKD 75,483,000 in the same period last year [2]. - Basic loss per share increased from HKD 0.19 to HKD 0.33 [2]. - The group reported a net loss before tax of HKD 134,744,000, an increase from a loss of HKD 75,483,000 for the same period in 2021 [67]. - The company reported a pre-tax loss of HKD 128,340,000, compared to a pre-tax loss of HKD 69,152,000 in the same period last year, reflecting a worsening financial position [41]. - The net loss recognized in profit or loss for the six months ended September 30, 2022, was HKD 1,245,000, compared to a loss of HKD 12,000 for the same period in 2021, indicating a significant increase in losses [84]. Revenue and Income - Total revenue increased by approximately 13.6% to HKD 68,243,000, up from HKD 60,053,000 in the previous year [2]. - Revenue for the six months ended September 30, 2022, was HKD 68,243,000, an increase of 13.4% compared to HKD 60,053,000 for the same period in 2021 [41]. - Warehouse operations revenue reached HKD 10,293,000, up 18.9% from HKD 8,653,000 year-on-year [54]. - Property investment income increased to HKD 49,012,000 from HKD 46,863,000, representing a growth of 4.6% [41]. Assets and Liabilities - The net asset value of the company decreased by approximately 3.9% to HKD 3,869,092,000, with a decrease in net asset value per share of about 4.0% to HKD 9.55 [16]. - Non-current assets, primarily investment properties, decreased to HKD 2,847,200,000 from HKD 2,966,340,000, a decline of 4.0% [43]. - Current assets totaled HKD 943,054,000, down from HKD 966,876,000, indicating a decrease of 2.5% [43]. - Total assets as of September 30, 2022, amounted to HKD 4,023,621,000, an increase from HKD 3,964,000,000 as of September 30, 2021 [59]. - The group’s total liabilities were HKD 154,529,000, an increase from HKD 69,152,000 year-on-year [59]. Shareholder Information - As of September 30, 2022, the total equity held by Mr. Lyu Rongyi is 41,501,580 shares, representing 10.25% of the company's issued shares [22]. - Major shareholder Jian Nan Financial Limited holds 147,610,335 shares, accounting for 36.45% of the company's issued shares [24]. - As of September 30, 2022, the total issued shares of the company are 405,000,000 [23]. - Ms. Chen Guanfeng holds a total of 218,827,818 shares indirectly, representing 54.03% of the company's issued shares [24]. Governance and Compliance - The company has complied with all provisions of the corporate governance code, except for specific clauses regarding the separation of roles between the chairman and CEO [31]. - The company has not signed formal appointment letters with its directors, but they are subject to re-election according to the company's articles of association [32]. - The company has adopted the standard code for securities transactions by directors, and all directors have confirmed compliance during the period [34]. Dividends and Share Transactions - The company declared an interim dividend of HKD 0.02 per share, totaling HKD 8,100,000, compared to HKD 16,200,000 for the same period in 2021 [66]. - The company has not purchased, sold, or redeemed any of its shares during the review period [28]. - The company will suspend share transfer registration from December 16 to December 21, 2022, for the distribution of interim dividends [27]. Investment Properties - The group recorded a fair value loss on investment properties of HKD 119,140,000, compared to a loss of HKD 99,440,000 in the same period last year [13]. - The fair value of investment properties decreased to HKD 2,847,200,000 as of September 30, 2022, down from HKD 2,966,340,000 as of March 31, 2022 [70]. - The company reported a loss of HKD 119,140,000 from the revaluation of investment properties for the six months ended September 30, 2022 [71]. Other Financial Information - Interest income increased to HKD 5,512,000 due to rising interest rates, while dividend income was HKD 3,426,000 [9]. - The tax expense for the six months ended September 30, 2022, was HKD 6,404,000, slightly up from HKD 6,331,000 in the same period of 2021 [65]. - The company recognized other income of HKD 665,000 related to COVID-19 subsidies from the Hong Kong government for the six months ended September 30, 2022 [63]. - The total compensation for directors and other key management personnel during the period was HKD 778,000, up from HKD 712,000 for the six months ended September 30, 2021, reflecting an increase of approximately 9.3% [87].

Community Engagement - The company has been sponsoring the annual "Hong Kong Synergy 24 Drum Competition and the Hong Kong Drum Festival" for 19 consecutive years, demonstrating its commitment to community engagement [5]. - The "Convenient Life Technology Electronic Payment" seminar was organized at "THE LU+" Business Centre, showcasing the company's involvement in community education initiatives [7]. - The company has actively participated in charitable events, including distributing necessities to grassroots families during the pandemic [11]. - The company has been involved in various community activities, including organizing calligraphy and yoga classes for the elderly [17]. - The group has participated in the "Caring Company" program for 19 consecutive years since 2003, receiving the "15 Years + Caring Company" award this year [167]. - The group donated HKD 1 for each jump during a charity rope skipping marathon, raising a six-figure sum to support underprivileged women and youth in acquiring new skills [168]. - The group provided anti-epidemic supplies to low-income families and elderly individuals during the pandemic, distributing food and essential items [169]. - The group established a scholarship program for employees' children to alleviate educational financial burdens and encourage academic achievement [168]. - The group actively supports community welfare organizations and engages employees in volunteer activities, including blood donation drives and educational programs [171]. Financial Performance - The total revenue for the year ended March 31, 2022, was HKD 122,850,000, an increase of 11.9% compared to HKD 109,784,000 in 2021 [39]. - The core profit for the year was HKD 52,020,000, a decrease of 38.6% from HKD 84,752,000 in the previous year [39]. - The company proposed a final dividend of HKD 0.06 per share, totaling HKD 24,300,000, compared to HKD 194,400,000 in the previous year [44]. - The total assets amounted to HKD 4,175,960,000, while total liabilities were HKD 147,824,000 as of March 31, 2022 [39]. - The earnings per share (EPS) for the year was a loss of HKD 0.21, compared to a loss of HKD 0.36 in the previous year [39]. - The company’s net asset value per share was HKD 9.95, down from HKD 10.67 in the previous year [39]. - The average return on equity was -2.02%, an improvement from -3.34% in the previous year [39]. - The company’s liquidity ratio was 18.55:1, indicating a decrease in liquidity compared to 21.05:1 in the previous year [39]. - The company recorded a loss before tax of HKD 72,514,000, an improvement from a loss of HKD 135,985,000 in the previous year [39]. - The fair value loss on investment properties was HKD 136,558,000, a significant reduction from HKD 232,333,000 in the previous year [39]. - The company's loss attributable to shareholders decreased by approximately 43% to HKD 84,538,000 compared to a loss of HKD 147,581,000 in the same period last year [46]. - Total revenue increased by about 12% to HKD 122,850,000 from HKD 109,784,000 [46]. - Core profit, excluding fair value losses on investment properties, decreased by approximately 34% to HKD 64,044,000 from HKD 96,348,000 [47]. Operational Highlights - The warehouse operations segment saw revenue and profit rise by approximately 39% to HKD 19,719,000 from HKD 14,168,000, with a turnaround from a loss of HKD 758,000 to a profit of HKD 3,016,000 [49]. - Rental income from the main investment property "振萬廣埸" increased by about 5% to HKD 75,661,000, with an average occupancy rate rising by approximately 4.1% to about 84% [50]. - Financial investment segment revenue increased by approximately 67% to HKD 7,036,000, while profit decreased by about 67% to HKD 15,580,000 due to a decline in fair value gains on financial assets [54]. - The new mini-storage business "安存迷你倉" achieved an occupancy rate of approximately 44.7% by May 31, 2022, up from 32% at the end of March 2022 [63]. - The company anticipates that warehouse operations will maintain a volume of approximately 15,000 cubic meters, contingent on overall economic recovery and trade activity [58]. - The rental rate for "振萬廣埸" is expected to face pressure due to high office supply in East Kowloon, despite an increase in occupancy from below 80% to about 89% [59]. - The average occupancy rate improved from approximately 36% to 48%, with average warehouse rent increasing by about 3% to approximately HKD 95 per cubic meter [71]. - Total rental income from the property investment segment increased by approximately 5% to HKD 96,095,000, while profit decreased by about 8% to HKD 53,430,000 [73]. Corporate Governance - The company is committed to corporate governance and transparency, as evidenced by its detailed annual report and financial disclosures [23]. - The company has adopted multiple provisions from the new corporate governance code effective from the fiscal year 2022/23 to enhance governance practices [96]. - The board currently consists of one executive director, one non-executive director, and three independent non-executive directors, with over 50% of the board being independent [103]. - The company has not yet filled the positions of chairman and CEO since April 2015, and the board is actively seeking suitable candidates [97]. - All directors have confirmed compliance with the standard code of conduct for securities trading during the fiscal year ending March 31, 2022 [102]. - The board is responsible for long-term strategy formulation and monitoring, approving dividends, and ensuring good corporate governance [107]. - Directors have access to accurate and relevant information and can consult independent professional advice at the company's expense [108]. - The company encourages directors to participate in professional development courses to enhance their knowledge and skills [109]. - The company will continue to review and improve its corporate governance practices to ensure proper regulation of business activities and decision-making processes [101]. - The board currently consists of four non-executive directors, three of whom are independent, ensuring independent judgment and valuable guidance for the company's development [113]. Risk Management - The Board is responsible for ensuring a robust and effective risk management and internal control system [141]. - The risk management plan implemented during the year aims to identify, assess, manage, and monitor all significant risks faced by the group [142]. - The Board is tasked with evaluating and determining the nature and extent of risks faced by the group, with annual reviews conducted [142]. - The Audit Committee assists the Board in fulfilling its responsibilities regarding risk management and internal controls [141]. - The internal audit function has been established with a three-year plan approved by the board, focusing on key control measures and identifying significant design flaws [148]. - Management confirmed the effectiveness of risk management mechanisms and internal control systems for the fiscal year ending March 31, 2022 [152]. Environmental, Social, and Governance (ESG) - The ESG report covers the group's performance in property investment and warehouse operations for the fiscal year ending March 31, 2022 [178]. - The group emphasizes sustainable development and environmental protection in all business activities, aiming to create value in both environmental and social aspects [182]. - The group has established a dedicated ESG working group since 2017 to handle ESG matters, composed of personnel with adequate ESG knowledge [195]. - The board of directors is responsible for determining the overall ESG strategy and conducting annual risk assessments to evaluate ESG performance and identify related risks and opportunities [192]. - The group ensures compliance with labor laws and regulations to protect employee rights [187]. - The group has a comprehensive ESG governance framework led by the board to support sustainable development in daily operations [191].

Financial Performance - The company recorded a loss attributable to shareholders of approximately HKD 75,483,000 for the six months ended September 30, 2021, a decrease of about 24.1% compared to a loss of HKD 99,457,000 in the same period of 2020 [2]. - Total revenue increased by approximately 6.8% to HKD 60,053,000, up from HKD 56,234,000 in the previous year [2]. - The company reported a pre-tax loss of HKD 69,152 thousand, an improvement from a pre-tax loss of HKD 93,445 thousand in the previous year [45]. - Total comprehensive loss attributable to shareholders for the period was HKD 75,483 thousand, down from HKD 99,457 thousand in the same period last year [45]. - Basic loss per share was HKD 0.19, compared to HKD 0.25 for the same period in 2020 [45]. - The group incurred a pre-tax loss of HKD 69,152,000, which includes central administrative costs of HKD 4,150,000 [63]. Revenue and Income Segments - The property investment segment's total rental income increased by about 2.2% to HKD 46,863,000, while segment profit (excluding fair value losses) decreased by approximately 10.4% to HKD 26,195,000 [7]. - The financial investment segment's revenue increased by approximately 53% to HKD 4,537,000, despite a significant decrease in segment profit by about 86% to HKD 7,186,000 [8]. - Warehouse operation income was HKD 8,653 thousand, while property investment income was HKD 46,863 thousand, compared to HKD 7,421 thousand and HKD 45,847 thousand respectively in 2020 [45]. - The group reported a segment profit of HKD 1,057,000 from warehouse operations, contrasting with a loss of HKD 140,754,000 in property investment [63]. Assets and Liabilities - The company's net asset value decreased by approximately 6.2% to HKD 4,053,391,000 as of September 30, 2021, compared to HKD 4,323,274,000 on March 31, 2021 [18]. - Non-current assets decreased from HKD 4,414,041 thousand as of March 31, 2021, to HKD 4,144,988 thousand as of September 30, 2021, representing a decline of approximately 6.1% [47]. - Current assets decreased from HKD 1,112,527 thousand to HKD 953,227 thousand, a reduction of about 14.3% [47]. - The company’s total liabilities increased slightly from HKD 90,767 thousand to HKD 91,597 thousand, indicating a marginal rise of about 0.9% [47]. - Deferred tax liabilities amounted to HKD 12,414,000, contributing to the total liabilities of HKD 152,671,000 [65]. Cash Flow and Dividends - Cash generated from operating activities was HKD 138,153 thousand, a significant recovery from a cash outflow of HKD 204,222 thousand in the previous year [51]. - Cash and bank balances reached HKD 266,455,000, an increase of about 7.4% from HKD 247,974,000 on March 31, 2021 [18]. - The company paid dividends totaling HKD 194,400 thousand during the period, compared to HKD 12,150 thousand in the previous year, indicating a substantial increase in dividend payouts [49]. - The group declared an interim dividend of HKD 0.04 per share, totaling HKD 16,200,000, compared to HKD 36,450,000 in the previous period [72]. Employee and Operational Costs - Employee costs increased by approximately 10.4% to HKD 8,173,000 due to the addition of new employees and increased performance bonuses [14]. - The total remuneration for directors and key management personnel during the period was HKD 712,000, an increase from HKD 549,000 for the six months ended September 30, 2020 [94]. - Employee costs, including director remuneration, increased by approximately 10.4% to HKD 8,173,000 for the six months ended September 30, 2021, compared to HKD 7,401,000 for the same period in 2020 [19]. - The number of employees remained stable at 37 as of September 30, 2021 [19]. Corporate Governance - The company has complied with all corporate governance codes except for certain provisions regarding the separation of roles between the chairman and CEO, which have been vacant since April 5, 2015 [38]. - The board will continue to review and improve corporate governance practices to ensure proper regulation of business activities and decision-making processes [38]. - The company is actively seeking suitable candidates to fill the vacant chairman and CEO positions to enhance governance structure [38]. - The company has adopted the standard code for securities trading by directors, confirming compliance during the six months ended September 30, 2021 [39]. Fair Value and Impairment - The company recorded a fair value loss on investment properties of HKD 99,440,000 during the period, compared to a loss of HKD 170,000,000 in the same period of 2020 [14]. - Investment properties showed a fair value impairment of HKD 99,440 thousand, down from HKD 170,000 thousand in the previous year, suggesting a reduction in impairment losses [51]. - The fair value of the investment properties as of September 30, 2021, is HKD 3,001,960,000, down from HKD 3,101,400,000 as of March 31, 2021, reflecting a decrease of approximately 3.2% [76]. - A loss of HKD 99,440,000 was recognized in the income statement due to fair value changes for the six months ended September 30, 2021, compared to a loss of HKD 170,000,000 for the same period in 2020 [77]. Other Key Information - The company continues to hold 9,000 ounces of non-physical gold after selling 4,400 ounces and 4,600 ounces in March and August 2021, respectively [13]. - The company has no bank loans and no significant contingent liabilities as of September 30, 2021 [22][23]. - Major shareholder Jian Nan Financial Limited holds a direct interest of 147,610,335 shares, representing approximately 36.45% of the company's issued shares [28]. - The company did not purchase, sell, or redeem any of its listed shares during the review period [32]. - The company has established various committees including the Audit Committee, Remuneration and Nomination Committee, and Investment Committee [98].

Financial Performance - The company reported a significant increase in revenue, achieving a total of HKD 1.2 billion, representing a year-on-year growth of 15%[12] - The company's total revenue for the year ended March 31, 2021, was HKD 109,784,000, a decrease of approximately 20.3% from HKD 137,612,000 in 2020[26] - Shareholders' attributable loss for the year was HKD 147,581,000, compared to a loss of HKD 292,527,000 in the previous year, indicating an improvement of 49.6%[33] - Core profit, excluding fair value changes of investment properties, was HKD 84,752,000, significantly up from HKD 15,065,000 in 2020[33] - Total revenue for the group fell by about 20% to HKD 109,784,000, with core profit increasing by 463% to HKD 84,752,000 after excluding property revaluation losses[45] Operational Highlights - User data showed a 20% increase in active users, reaching 500,000 by the end of the fiscal year[12] - New product launches are expected to contribute an additional HKD 200 million in revenue, with a focus on enhancing customer experience[12] - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[12] - Investment in technology development increased by 30%, focusing on automation and efficiency improvements[12] - A new strategic partnership was announced, expected to drive a 15% increase in operational efficiency[12] Future Outlook - The company provided an optimistic outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[12] - The company maintains a cautious outlook on the overall operating environment and the development of the pandemic, preparing to respond swiftly to current and future challenges[43] Dividend and Shareholder Information - The proposed final dividend is HKD 0.05 per share, totaling HKD 20,250,000, compared to HKD 12,150,000 in 2020[32] - The dividend payout ratio increased to 272.38% from 152.26% in 2020, reflecting a significant rise in dividend distribution relative to earnings[26] - The company declared a total dividend of HKD 48,600,000, down from HKD 145,800,000 in the previous year[46] - The company is committed to providing shareholders with a long-term stable dividend income, subject to performance and business environment considerations[144] Corporate Governance - The board of directors emphasized the importance of sustainability, committing to reduce carbon emissions by 20% over the next five years[12] - The board of directors is responsible for overseeing the overall strategy and monitoring the operational and financial performance of the group[82] - The company has established three committees: the Remuneration and Nomination Committee, the Audit Committee, and the Investment Committee, each with defined responsibilities[91] - The board has complied with all corporate governance code provisions, except for specific provisions regarding the separation of roles between the chairman and CEO[74] - The company encourages directors to participate in professional development courses to enhance their knowledge and skills[85] Risk Management - The board is responsible for ensuring a robust and effective risk management and internal control system, recognizing that risk is inevitable but manageable to create value for the company[119] - Major risks are identified through a questionnaire survey sent to senior management, covering strategic, operational, financial, and compliance risks[120] - Risk reports are submitted to the audit committee and board, detailing major risks and corresponding action plans to mitigate them[124] - Management confirms the implementation of effective risk management mechanisms and internal control systems for the fiscal year ending March 31, 2021[130] Employee and Community Engagement - The company has implemented various social responsibility initiatives, including support for charitable activities and community services[146] - The company emphasizes the importance of employee health and safety, implementing safety indicators and annual safety plans to mitigate operational risks[187] - The company provides competitive compensation packages, including mandatory provident fund, medical insurance, and long service awards[195] - The company has established an employee safety manual to guide daily operations and maintain health and safety practices[189] Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes its commitment to environmental protection and sustainable development, aiming to create value for stakeholders and the public[159] - The company has established a comprehensive ESG governance framework led by the board to ensure stakeholder interests are considered in strategy formulation[167] - Key identified ESG issues include air emissions, greenhouse gas emissions, waste management, and energy usage, highlighting the company's focus on environmental impact[182] - The company conducted a materiality assessment to identify key ESG issues impacting its operations and stakeholder engagement[176]