[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) This section provides an overview of the Group's financial performance, highlighting revenue growth and the expansion of its annual loss [Consolidated Statement of Comprehensive Income](index=1&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's consolidated statement of comprehensive income for the year ended March 31, 2024, shows a 4% year-on-year revenue increase to HK$176,302 thousand, but the annual loss expanded to HK$21,968 thousand, primarily due to fair value loss on investment properties and increased finance costs. Basic and diluted loss per share was 1.76 HK cents Key Data from Consolidated Statement of Comprehensive Income | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 176,302 | 169,524 | 6,778 | 4.0% | | Cost of sales | (130,929) | (140,883) | 9,954 | -7.1% | | Gross profit | 45,373 | 28,641 | 16,732 | 58.4% | | Fair value loss on investment properties | (18,090) | (9,621) | (8,469) | 88.0% | | Finance costs | (9,690) | (4,864) | (4,826) | 99.2% | | Loss before tax | (21,992) | (19,568) | (2,424) | 12.4% | | Loss for the year attributable to owners of the Company | (21,968) | (19,568) | (2,400) | 12.3% | | Loss per share - basic and diluted (HK cents) | (1.76) | (1.57) | (0.19) | 12.1% | [Financial Position Overview](index=3&type=section&id=Financial%20Position%20Overview) This section presents an overview of the Group's financial position, detailing changes in assets, liabilities, and key financial ratios [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2024, the Group's total assets slightly decreased, with non-current assets declining while current assets increased. Current liabilities saw a minor rise, leading to a significant improvement in net current assets, but net assets and total equity decreased Key Data from Consolidated Statement of Financial Position | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Non-current assets** | | | | | | Investment properties | 165,200 | 193,000 | (27,800) | -14.4% | | Financial assets at fair value through other comprehensive income | – | 9,854 | (9,854) | -100.0% | | **Current assets** | | | | | | Contract assets | 119,553 | 78,344 | 41,209 | 52.6% | | Cash and bank balances | 22,699 | 35,463 | (12,764) | -36.0% | | **Current liabilities** | | | | | | Bank borrowings | 159,031 | 140,478 | 18,553 | 13.2% | | **Key Ratios** | | | | | | Net current assets | 18,168 | 953 | 17,215 | 1806.4% | | Net assets | 242,361 | 263,328 | (20,967) | -8.0% | [Notes to Financial Statements](index=5&type=section&id=Notes%20to%20Financial%20Statements) This section provides detailed explanations and disclosures regarding the Group's accounting policies, financial performance, and position [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, Hong Kong Generally Accepted Accounting Principles, and the disclosure requirements of the Hong Kong Companies Ordinance, complying with the Listing Rules. The statements are prepared under the historical cost convention, with certain financial instruments and investment properties measured at fair value, presented in HK dollars - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, Hong Kong Generally Accepted Accounting Principles, and the disclosure requirements of the Hong Kong Companies Ordinance, complying with the Listing Rules[8](index=8&type=chunk) - The statements are prepared under the historical cost convention, with certain financial instruments and investment properties measured at fair value, and all values are presented in HK dollars and rounded to the nearest thousand[8](index=8&type=chunk) [Accounting Standards and Policy Changes](index=5&type=section&id=Accounting%20Standards%20and%20Policy%20Changes) Several new and revised Hong Kong Financial Reporting Standards were first applied this year, but they had no significant impact on the Group's financial performance and position. New guidelines from the HKSAR Government on abolishing the MPF offsetting mechanism against long service payments also had no material effect on the Group - Several new and revised Hong Kong Financial Reporting Standards were first applied this year, including amendments to HKFRS 17, HKAS 1, HKAS 8, and HKAS 12[9](index=9&type=chunk) - The application of new and revised standards had no significant impact on the Group's financial performance and position for the current and prior periods[9](index=9&type=chunk) - New guidelines from the HKSAR Government on abolishing the MPF offsetting mechanism against long service payments (effective May 1, 2025) are not expected to have a significant impact on the Group's results and financial position for the current or prior periods[10](index=10&type=chunk)[13](index=13&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) The Group's operating segments include the sale of mobile phones in Hong Kong, sale of IoT solutions in Hong Kong, sale of IoT solutions in Mainland China and Southeast Asia, and property investment. In FY2024, IoT solutions segment revenue grew significantly, while mobile phone sales and property investment revenue decreased - The Group's reportable segments include: sale of mobile phones in Hong Kong, sale of IoT solutions in Hong Kong, sale of IoT solutions in Mainland China and other Southeast Asian countries, and property investment[17](index=17&type=chunk) [FY2024 Segment Results](index=8&type=section&id=FY2024%20Segment%20Results) In FY2024, revenue from the sale of IoT solutions in Hong Kong reached HK$142,859 thousand, contributing HK$1,039 thousand in profit; while revenue from the sale of mobile phones in Hong Kong significantly decreased to HK$29,047 thousand, recording a loss of HK$5,670 thousand FY2024 Segment Revenue and Results | Segment | External Revenue (HK$ thousand) | Segment (Loss) Profit (HK$ thousand) | | :--- | :--- | :--- | | Sale of mobile phones in Hong Kong | 29,047 | (5,670) | | Sale of IoT solutions in Hong Kong | 142,859 | 1,039 | | Sale of IoT solutions in Mainland China and other Southeast Asian countries | 3,168 | 3,688 | | Property investment | 1,228 | (2,627) | | **Total** | **176,302** | **(3,570)** | - In FY2024, the sale of IoT solutions in Hong Kong segment recorded **HK$142,859 thousand** in external revenue and achieved a profit of **HK$1,039 thousand**[19](index=19&type=chunk) - The sale of IoT solutions in Mainland China and other Southeast Asian countries segment recorded **HK$3,168 thousand** in external revenue and achieved a profit of **HK$3,688 thousand**[19](index=19&type=chunk) [FY2023 Segment Results](index=9&type=section&id=FY2023%20Segment%20Results) In FY2023, the sale of mobile phones in Hong Kong was the primary revenue source, reaching HK$74,962 thousand, but the sale of IoT solutions in Mainland China and Southeast Asia recorded a loss of HK$8,930 thousand FY2023 Segment Revenue and Results | Segment | External Revenue (HK$ thousand) | Segment (Loss) Profit (HK$ thousand) | | :--- | :--- | :--- | | Sale of mobile phones in Hong Kong | 74,962 | (3,325) | | Sale of IoT solutions in Hong Kong | 82,617 | 2,193 | | Sale of IoT solutions in Mainland China and other Southeast Asian countries | 10,079 | (8,930) | | Property investment | 1,866 | (39) | | **Total** | **169,524** | **(10,101)** | - In FY2023, the sale of mobile phones in Hong Kong segment recorded **HK$74,962 thousand** in external revenue, while the sale of IoT solutions in Mainland China and other Southeast Asian countries segment recorded **HK$10,079 thousand** in external revenue but incurred a loss of **HK$8,930 thousand**[21](index=21&type=chunk) [Geographical Revenue and Assets](index=10&type=section&id=Geographical%20Revenue%20and%20Assets) Hong Kong is the Group's primary revenue source, contributing HK$173,023 thousand in external customer revenue in FY2024, and also the main location for non-current assets. Revenue and non-current assets in Mainland China and Singapore both decreased Geographical Revenue and Non-current Assets | Region | 2024 External Customer Revenue (HK$ thousand) | 2023 External Customer Revenue (HK$ thousand) | 2024 Non-current Assets (HK$ thousand) | 2023 Non-current Assets (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 173,023 | 159,007 | 214,191 | 231,196 | | Mainland China | 581 | 6,463 | 199 | 257 | | Singapore | 2,698 | 4,054 | 500 | 11,973 | | **Total** | **176,302** | **169,524** | **214,890** | **243,426** | - Hong Kong is the Group's primary revenue source, with external customer revenue from Hong Kong totaling **HK$173,023 thousand** in FY2024, accounting for the vast majority of total revenue[24](index=24&type=chunk) [Segment Reconciliation](index=10&type=section&id=Segment%20Reconciliation) In FY2024, the total reported segment loss was HK$3,570 thousand, and after adjusting for fair value loss on investment properties and changes in fair value of financial assets, the consolidated loss before tax was HK$21,992 thousand Reconciliation of Reported Segment Profit/Loss Before Tax | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Total reported segment loss | (3,570) | (10,101) | | Fair value loss on investment properties | (18,090) | (9,621) | | Fair value (loss) gain on financial assets at fair value through profit or loss | (332) | 154 | | **Consolidated loss before tax** | **(21,992)** | **(19,568)** | - In FY2024, the total reported segment assets were **HK$405,345 thousand**, and with unallocated corporate assets of **HK$9,840 thousand**, the consolidated total assets amounted to **HK$415,185 thousand**[25](index=25&type=chunk) [Other Income and Major Customers](index=11&type=section&id=Other%20Income%20and%20Major%20Customers) In FY2024, the Group's total other income, gains, and losses amounted to HK$1,818 thousand, a significant decrease from the prior year, mainly due to reduced government grants. Customer A was a major customer, contributing HK$106,442 thousand in revenue Other Income, Gains and Losses | Other Income, Gains and Losses | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Bank interest income | 491 | 270 | 221 | 81.9% | | Dividend income | 1,378 | 1,378 | 0 | 0.0% | | Government grants | 31 | 1,756 | (1,725) | -98.2% | | **Total** | **1,818** | **3,423** | **(1,605)** | **-46.9%** | - In FY2024, revenue from Customer A was **HK$106,442 thousand**, accounting for over **10%** of the Group's total revenue, primarily from the sale of IoT solutions in Hong Kong segment[26](index=26&type=chunk) - Government grants significantly decreased from **HK$1,756 thousand** in 2023 to **HK$31 thousand** in 2024, primarily because 2023 included subsidies from the HKSAR Government's "Employment Support Scheme"[26](index=26&type=chunk) [Finance Costs and Loss Before Tax Analysis](index=12&type=section&id=Finance%20Costs%20and%20Loss%20Before%20Tax%20Analysis) In FY2024, finance costs doubled year-on-year to HK$9,690 thousand, primarily due to increased interest on bank borrowings. Loss before tax was net of several expenses, including significantly increased employee benefit expenses and impairment losses on trade receivables and contract assets Finance Costs | Finance Costs | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Interest on bank borrowings | 9,373 | 4,651 | 4,722 | 101.5% | | **Total finance costs** | **9,690** | **4,864** | **4,826** | **99.2%** | Items Deducted From (Credited To) Loss Before Tax | Items Deducted From (Credited To) Loss Before Tax | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total staff costs | 22,758 | 21,406 | 1,352 | 6.3% | | Impairment loss on trade receivables | 440 | 68 | 372 | 547.1% | | Impairment loss on contract assets | 1,952 | 383 | 1,569 | 409.7% | | Write-down of inventories | 18 | 297 | (279) | -94.0% | [Taxation](index=13&type=section&id=Taxation) The Group did not generate assessable profits in Hong Kong, Mainland China, Singapore, or Thailand, thus no provision for profits tax was made in FY2024 and FY2023, with only HK$24 thousand in tax recognized - As the Group did not generate assessable profits in Hong Kong, Mainland China, Singapore, or Thailand, no provision for profits tax was made for FY2024 and FY2023[29](index=29&type=chunk) - Hong Kong profits tax operates under a two-tiered system, with the first **HK$2,000,000** of assessable profits for qualifying entities taxed at **8.25%** and the remainder at **16.5%**. Corporate income tax rates are **25%** in Mainland China, **17%** in Singapore, and **20%** in Thailand[29](index=29&type=chunk) [Loss Per Share](index=13&type=section&id=Loss%20Per%20Share) Basic and diluted loss per share for FY2024 was 1.76 HK cents, an increase from 1.57 HK cents in FY2023. Due to the net loss incurred, unexercised share options had an anti-dilutive effect and were not included in the diluted loss per share calculation Loss Per Share | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Loss attributable to owners of the Company | (21,968) | (19,568) | | Loss per share - basic and diluted (HK cents) | (1.76) | (1.57) | - As the Group incurred a net loss, unexercised share options had an anti-dilutive effect and were therefore not included in the calculation of diluted loss per share[31](index=31&type=chunk) [Dividend Policy](index=13&type=section&id=Dividend%20Policy) For the year ended March 31, 2024, and subsequent to the reporting period, the Company neither paid nor proposed any dividends - For the year ended March 31, 2024, and subsequent to the reporting period, the Company neither paid nor proposed any dividends[32](index=32&type=chunk) [Contract Assets and Trade Receivables](index=14&type=section&id=Contract%20Assets%20and%20Trade%20Receivables) In FY2024, contract assets significantly increased to HK$119,553 thousand, primarily from smart system construction services, with a corresponding increase in loss provisions. Gross trade receivables rose to HK$25,056 thousand, but loss provisions decreased Contract Assets | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Contract assets | 121,735 | 79,083 | 42,652 | 53.9% | | Less: provision for loss | (2,182) | (739) | (1,443) | 195.3% | | **Net contract assets** | **119,553** | **78,344** | **41,209** | **52.6%** | Trade Receivables | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross trade receivables | 25,056 | 22,196 | 2,860 | 12.9% | | Less: provision for loss | (1,260) | (2,921) | 1,661 | -56.9% | | **Net trade receivables** | **23,796** | **19,275** | **4,521** | **23.5%** | Ageing Analysis of Trade Receivables | Ageing of Trade Receivables | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Within 30 days | 19,085 | 11,497 | | 31 to 60 days | 670 | 4,857 | | 61 to 90 days | 2,560 | 435 | | 91 to 180 days | 1,057 | 1,024 | | 181 to 365 days | 400 | 525 | | Over 365 days | 1,284 | 3,858 | | **Total** | **25,056** | **22,196** | [Trade Payables and Accruals](index=15&type=section&id=Trade%20Payables%20and%20Accruals) In FY2024, total trade payables and accruals amounted to HK$7,641 thousand, a decrease from the prior year. The average credit period for trade payables is 30 to 60 days, and the Group has established risk management policies to ensure timely settlement Trade Payables, Accruals and Other Payables | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade payables | 2,160 | 4,164 | (2,004) | -48.1% | | Accruals and deposits received | 5,481 | 7,237 | (1,756) | -24.3% | | **Total** | **7,641** | **11,401** | **(3,760)** | **-33.0%** | Ageing Analysis of Trade Payables | Ageing of Trade Payables | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 943 | 3,360 | | 31 to 60 days | 187 | 3 | | 61 to 90 days | 155 | 32 | | Over 90 days | 875 | 769 | | **Total** | **2,160** | **4,164** | - The average credit period for product purchases is **30 to 60 days**, and the Group has established financial risk management policies to ensure all payables are settled within the credit terms[39](index=39&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's consolidated performance, business segment results, future prospects, and financial resources [Consolidated Performance Overview](index=16&type=section&id=Consolidated%20Performance%20Overview) For the year ended March 31, 2024, the Group's turnover increased by 4% to HK$176,000 thousand, but the loss attributable to owners of the Company expanded to HK$22,000 thousand - Turnover for FY2024 increased by **4%** to **HK$176,000 thousand** (2023: HK$170,000 thousand)[41](index=41&type=chunk) - Loss attributable to owners of the Company expanded from **HK$20,000 thousand** in 2023 to **HK$22,000 thousand** in 2024[41](index=41&type=chunk) [Business Segment Performance](index=16&type=section&id=Business%20Segment%20Performance) In FY2024, mobile phone sales significantly decreased due to weak demand, resulting in a loss. IoT solutions sales grew substantially and turned profitable. Property investment rental income decreased, and losses expanded - Mobile phone sales turnover decreased from **HK$75,000 thousand** to **HK$29,000 thousand**, with segment loss expanding from **HK$3,000 thousand** to **HK$6,000 thousand**[42](index=42&type=chunk) - IoT solutions sales turnover increased from **HK$93,000 thousand** to **HK$146,000 thousand**, with the segment turning from a loss of **HK$7,000 thousand** to a profit of **HK$5,000 thousand**[43](index=43&type=chunk) - Property investment rental income decreased from **HK$1,900 thousand** to **HK$1,200 thousand**, with segment loss expanding from **HK$100 thousand** to **HK$3,000 thousand**[44](index=44&type=chunk) [Business Prospects](index=16&type=section&id=Business%20Prospects) Mobile phone sales are expected to remain weak, while IoT solutions sales are projected to be stable with the development of innovative products. Property investment rental income will depend on the successful leasing of vacant properties - Mobile phone business sales are expected to remain weak in the coming year due to declining demand[45](index=45&type=chunk) - The IoT solutions segment will develop novel and innovative products to meet market demand, with sales expected to remain stable[45](index=45&type=chunk) - Weak demand in the property investment segment's leasing market affects occupancy rates, and next year's rental income depends on the successful leasing of vacant properties[45](index=45&type=chunk) [Liquidity and Financial Resources](index=16&type=section&id=Liquidity%20and%20Financial%20Resources) As of March 31, 2024, the Group's cash and bank balances decreased, while bank borrowings increased. The gearing ratio rose to 66%. The Board believes the Group has sufficient liquidity to meet operational needs Liquidity Position | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cash and bank balances | 25,000 | 38,000 | (13,000) | -34.2% | | Bank borrowings | 159,000 | 140,000 | 19,000 | 13.6% | - The gearing ratio (total borrowings as a percentage of shareholders' equity) increased from **53%** in 2023 to **66%** in 2024[48](index=48&type=chunk) - The Board believes the Group has sufficient cash balances and bank credit facilities to meet its commitments and working capital needs, and has secured additional bank loans to finance new projects within the next two years[46](index=46&type=chunk) [Capital Structure](index=17&type=section&id=Capital%20Structure) There were no changes in the Group's capital structure for the year ended March 31, 2024 - There were no changes in the Group's capital structure for the year ended March 31, 2024[49](index=49&type=chunk) [Capital Expenditure](index=17&type=section&id=Capital%20Expenditure) During the year, the Group's capital expenditure on property, plant, and equipment amounted to HK$1,300 thousand - The Group's expenditure on property, plant, and equipment during the year amounted to **HK$1,300 thousand**[50](index=50&type=chunk) [Employee Information](index=17&type=section&id=Employee%20Information) As of March 31, 2024, the Group employed 100 staff, with total employee remuneration of HK$18,000 thousand. The Company maintains good employee relations, and remuneration is determined by individual merit and performance Employee Data | Indicator | 2024 | 2023 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total staff | 100 | 99 | 1 | 1.0% | | Total employee remuneration (HK$ thousand) | 18,000 | 17,000 | 1,000 | 5.9% | - Employee remuneration and bonuses are determined based on each employee's individual merit and performance, and are reviewed at least annually[51](index=51&type=chunk) [Pledge of Assets](index=17&type=section&id=Pledge%20of%20Assets) As of March 31, 2024, the Group's bank credit facilities were secured by leasehold land and buildings, investment properties, bank deposits, and financial assets at fair value through profit or loss - As of March 31, 2024, the Group's general bank credit facilities were secured by leasehold land and buildings with a total carrying amount of **HK$47,783 thousand**, investment properties with a total fair value of **HK$165,200 thousand**, bank deposits of **HK$2,765 thousand**, and financial assets at fair value through profit or loss with a total fair value of **HK$9,206 thousand**[52](index=52&type=chunk) [Foreign Exchange Risk Management](index=17&type=section&id=Foreign%20Exchange%20Risk%20Management) The Group's assets and liabilities are primarily denominated in HK dollars, RMB, and Singapore dollars, and it is not exposed to significant foreign currency exchange rate fluctuation risks. The Group does not engage in foreign currency hedging or financial derivative instruments - The Group's assets and liabilities are primarily denominated in HK dollars, RMB, and Singapore dollars, with income and expenses from operations in China and Singapore primarily denominated in RMB and Singapore dollars, respectively[53](index=53&type=chunk) - The Group is not exposed to significant risks from foreign currency exchange rate fluctuations, has not made hedging arrangements for foreign currencies, and is not involved in financial derivative instruments[53](index=53&type=chunk) [Contingent Liabilities](index=17&type=section&id=Contingent%20Liabilities) As of March 31, 2024, the Company provided a corporate guarantee of HK$138,000 thousand for general bank credit facilities granted to its subsidiaries - As of March 31, 2024, the Company provided a corporate guarantee of **HK$138,000 thousand** (2023: HK$118,000 thousand) as security for general bank credit facilities granted to its subsidiaries[54](index=54&type=chunk) [Other Important Information](index=18&type=section&id=Other%20Important%20Information) This section covers various corporate governance matters, auditor's review, and administrative details related to the Company's operations [Share Transfer Registration](index=18&type=section&id=Share%20Transfer%20Registration) The Company will suspend share transfer registration from August 21 to August 23, 2024, to determine shareholders' eligibility to attend and vote at the Annual General Meeting - The Company will suspend share transfer registration from **Wednesday, August 21, 2024, to Friday, August 23, 2024**[56](index=56&type=chunk) - To be eligible to attend and vote at the upcoming Annual General Meeting, all transfer documents, together with the relevant share certificates, must be lodged with the Company's Hong Kong Share Registrar by **4:30 p.m. on Tuesday, August 20, 2024**[56](index=56&type=chunk) [Corporate Governance](index=18&type=section&id=Corporate%20Governance) The Company complied with the Corporate Governance Code in Appendix 14 of the Listing Rules in FY2024, with exceptions for the roles of Chairman and CEO being held by the same person, and some Independent Non-executive Directors' absence from the AGM - The Company complied with the Corporate Governance Code set out in Appendix 14 of the Listing Rules for the year ended March 31, 2024, with two exceptions[57](index=57&type=chunk) - The roles of Chairman and Chief Executive Officer are held by the same individual (Mr. Chan Chung Ngai), which the Board believes provides strong and consistent leadership to the Group[57](index=57&type=chunk) - Two Independent Non-executive Directors (Mr. Chiu Nga Ying and Dr. Chu Chor Lik) were unable to attend the Annual General Meeting held on **August 25, 2023**, due to other commitments[57](index=57&type=chunk) [Auditor's Review](index=18&type=section&id=Auditor%27s%20Review) The Group's auditor, Shinewing (HK) CPA Limited, has reconciled the financial figures in the preliminary announcement with the audited consolidated financial statements, but this work does not constitute an assurance engagement, thus no assurance opinion is expressed - The auditor, Shinewing (HK) CPA Limited, has reconciled the financial figures in the preliminary announcement with the audited consolidated financial statements[58](index=58&type=chunk) - The related work performed by the auditor does not constitute an assurance engagement as defined by the Hong Kong Institute of Certified Public Accountants, and therefore no assurance opinion is expressed on the preliminary announcement[58](index=58&type=chunk) [Model Code for Securities Transactions by Directors](index=19&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Model Code set out in Appendix 10 of the Listing Rules as its code of conduct for directors' securities transactions, and all directors confirmed compliance during FY2024 - The Company has adopted the Model Code set out in Appendix 10 of the Listing Rules as its own code of conduct for directors' securities transactions[60](index=60&type=chunk) - Each Director confirmed compliance with the required standards set out in the Model Code for the year ended March 31, 2024[60](index=60&type=chunk) [Audit Committee](index=19&type=section&id=Audit%20Committee) The Audit Committee reviewed the interim and annual financial statements during the year and discussed the audit plan, accounting policies, and internal control systems with management and external auditors - The Audit Committee reviewed the unaudited condensed interim financial statements for the six months ended September 30, 2023, and the audited consolidated financial statements for the year ended March 31, 2024[61](index=61&type=chunk) - The Audit Committee discussed the audit plan, accounting policies and practices, and financial reporting matters with management and external auditors, and reviewed the Group's internal control systems[61](index=61&type=chunk) [Listed Securities Transactions](index=19&type=section&id=Listed%20Securities%20Transactions) During the year, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the year, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[62](index=62&type=chunk) [Acknowledgement](index=19&type=section&id=Acknowledgement) The Board expresses its sincere gratitude to shareholders, business partners, and all management and staff for their contributions and support during the year - The Board extends its sincere gratitude to the Company's shareholders, business partners, and all management and staff of the Group for their contributions and continuous support during the year[63](index=63&type=chunk) [Annual General Meeting and Annual Report](index=19&type=section&id=Annual%20General%20Meeting%20and%20Annual%20Report) The Company's Annual General Meeting is scheduled for August 23, 2024, and the annual report and notice of meeting will be published on the Company's and HKEX websites and dispatched to shareholders in due course - The Company's Annual General Meeting is scheduled to be held on **Friday, August 23, 2024**[64](index=64&type=chunk) - The annual report for the year ended March 31, 2024, and the notice of the Annual General Meeting will be published on the websites of the Company and Hong Kong Exchanges and Clearing Limited, and dispatched to the Company's shareholders in due course[64](index=64&type=chunk) [Board of Directors](index=19&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors comprises six Executive Directors (including Mr. Chan Chung Ngai as Chairman) and four Independent Non-executive Directors - As of the announcement date, the Board of Directors includes Executive Directors Mr. Chan Chung Ngai (Chairman), Mr. Chan Chung Yin, Mr. Chan Ming Him, Mr. Wu Kwok Lam, Mr. Yip Man Hon, and Mr. Lam Man Hau[65](index=65&type=chunk) - Independent Non-executive Directors include Mr. Chiu Nga Ying, Dr. Chu Chor Lik, Dr. Law Ka Keung, and Mr. Wong Kwok Leung[65](index=65&type=chunk)

Financial Performance - Revenue for the six months ended September 30, 2023, was HKD 101,526,000, an increase of 4.9% compared to HKD 97,085,000 for the same period in 2022[5] - Gross profit for the same period was HKD 20,138,000, up 29.9% from HKD 15,581,000 year-on-year[5] - The company reported a net loss attributable to equity holders of HKD 648,000, compared to a profit of HKD 794,000 in the previous year[5] - Total comprehensive income for the period was HKD 1,442,000, a decrease of 75.7% from HKD 5,919,000 in the prior year[5] - The report shows a segment loss of HKD (524) thousand for the six months ended September 30, 2023, compared to a profit of HKD 880 thousand in the same period of 2022, reflecting a significant decline[18] Cash Flow and Liquidity - The company's cash and bank balances decreased to HKD 21,176,000 from HKD 35,463,000 as of March 31, 2023[6] - The net cash used in operating activities for the six months ended September 30, 2023, was HKD (26,747) thousand, a slight improvement from HKD (28,373) thousand in the same period of 2022, indicating a reduction of approximately 5.8%[10] - The net cash used in investing activities decreased to HKD (188) thousand from HKD (412) thousand year-over-year, reflecting a reduction of about 54.4%[10] - The net cash generated from financing activities was HKD 12,660 thousand, down significantly from HKD 37,163 thousand in the previous year, representing a decline of approximately 65.9%[10] - The total cash and cash equivalents at the end of the period were HKD 21,176 thousand, down from HKD 34,052 thousand a year earlier, marking a decrease of about 37.6%[10] Assets and Liabilities - Total assets less current liabilities stood at HKD 264,820,000, slightly up from HKD 263,378,000 as of March 31, 2023[7] - The company's equity increased to HKD 264,770,000 from HKD 263,328,000, indicating a stable financial position despite the loss[7] - Total assets as of September 30, 2023, amounted to HKD 428,783,000, slightly up from HKD 427,496,000 as of March 31, 2023[19] - Total liabilities as of September 30, 2023, were HKD 164,013,000, a slight decrease from HKD 164,168,000 as of March 31, 2023[19] - The debt-to-equity ratio increased to 58% from 53% as of March 31, 2023[43] Revenue Segmentation - External revenue from Hong Kong operations increased to HKD 98,922 thousand in 2023, compared to HKD 91,124 thousand in 2022, showing a growth of approximately 8.9%[17] - The total external revenue for the group reached HKD 101,526 thousand, up from HKD 97,085 thousand in the previous year, indicating an increase of about 4.5%[17] - Revenue from mobile phone sales decreased by 35% to HKD 19,000,000 compared to HKD 30,000,000 in the same period last year, resulting in a loss of HKD 900,000[37] - Internet of Things (IoT) solutions revenue increased by 24% to HKD 82,000,000 from HKD 66,000,000 year-on-year, with a profit of HKD 1,700,000 compared to HKD 600,000 last year[38] - Rental income from property investments decreased by HKD 500,000 to HKD 500,000, leading to a loss of HKD 1,200,000 compared to a profit of HKD 100,000 last year[39] Operational Insights - The company's contract assets related to smart system construction services increased to HKD 126,951,000 as of September 30, 2023, from HKD 78,344,000 as of March 31, 2023[30] - The average credit period granted to customers is between seven days to one month, with some long-term clients receiving extended terms[31] - The company plans to reduce investment in the mobile phone division due to weak demand in the foreseeable future[40] - The IoT solutions division is expected to see revenue growth due to the implementation of new projects[41] - The rental market remains weak, affecting rental levels and occupancy rates, prompting the company to enhance cost control and develop new products[42] Shareholder Information - As of September 30, 2023, major shareholder Liu Wenting holds 681,752,246 shares, representing 54.74% of the company's equity[56] - Liu Huixian, another major shareholder, holds 93,795,191 shares, accounting for 7.53% of the company's equity[56] - The company has granted share options totaling 88,280,000 shares, representing 7% of the issued share capital as of September 30, 2023[48] - The estimated fair value of the share options granted during the period is HKD 1,887,000[49] Governance and Compliance - The company did not declare an interim dividend for the six months ended September 30, 2023, consistent with the previous year[29] - The company did not purchase, sell, or redeem any of its listed shares during the six months ending September 30, 2023[57] - The company has complied with the corporate governance code as per the listing rules, except for the separation of the roles of Chairman and CEO, which are held by the same individual, Chen Chongyi[58] - The audit committee reviewed the accounting policies and discussed internal controls and financial reporting for the six months ending September 30, 2023[60]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何 部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 HKC INTERNATIONAL HOLDINGS LIMITED 香 港 通 訊 國 際 控 股 有 限 公 司 * （於開曼群島註冊成立之有限公司） （股票代號：248） 截至二零二三年九月三十日止六個月 中期業績公佈 香港通訊國際控股有限公司（「本公司」）之董事會（「董事會」）欣然公佈本公司及其 附屬公司（統稱「本集團」）截至二零二三年九月三十日止六個月之未經審核簡明綜 合業績如下： 簡明綜合全面收益表 截至二零二三年九月三十日止六個月 截至九月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 （未經審核） （未經審核） ...

Financial Performance - The group's revenue decreased by 15% to HKD 170 million for the year ended March 31, 2023, compared to HKD 199 million in 2022[11]. - The loss attributable to equity holders increased to HKD 20 million, up from a loss of HKD 2 million in the previous year[11]. - The mobile phone sales segment's revenue dropped from HKD 134 million to HKD 75 million, resulting in a loss of HKD 3 million[12]. - The Internet of Things (IoT) solutions segment saw revenue rise from HKD 62 million to HKD 93 million, with a loss of HKD 7 million[13]. - Total revenue for the year ended March 31, 2023, was HKD 169,524,000, a decrease of 14.9% from HKD 199,096,000 in 2022[152]. - Gross profit for the same period was HKD 28,641,000, down 33.1% from HKD 42,816,000 in the previous year[152]. - The company reported a loss before tax of HKD 19,568,000, compared to a loss of HKD 1,943,000 in 2022, indicating a significant increase in losses[152]. - The total comprehensive loss attributable to equity holders for the year was HKD 18,304,000, compared to a loss of HKD 344,000 in the prior year[152]. - The company experienced a fair value loss on investment properties of HKD 9,621,000, contrasting with a gain of HKD 1,952,000 in the prior year, highlighting challenges in asset valuation[159]. - Operating cash flow showed a net outflow of HKD 45,861,000, a substantial increase from a net outflow of HKD 1,845,000 in the previous year, reflecting operational difficulties[161]. Cash and Liquidity - Cash and bank balances as of March 31, 2023, were approximately HKD 38 million, an increase from HKD 28 million in 2022[16]. - The company's cash and bank balances increased to HKD 35,463,000 from HKD 25,746,000, reflecting a growth of 37.6%[154]. - The company secured new bank loans amounting to HKD 92,400,000, an increase from HKD 55,876,000 in the previous year, indicating a strategy to bolster liquidity[161]. - Cash and cash equivalents increased by HKD 3,471,000, compared to a decrease of HKD 7,122,000 in the previous year, suggesting improved cash management[161]. - The company reported a significant increase in interest expenses, rising to HKD 4,664,000 from HKD 2,401,000, which may impact future profitability[159]. Debt and Equity - The bank borrowings increased to HKD 140 million from HKD 85 million in the previous year[16]. - The debt-to-equity ratio rose to 53% from 30% in the previous year[17]. - As of March 31, 2023, the distributable reserves of the company amounted to HKD 146,196,000, a decrease from HKD 147,312,000 in 2022[100]. - The board of directors emphasizes maintaining sufficient cash reserves for operational needs, future business growth, and shareholder returns when considering dividend payments[105]. Corporate Governance - The company does not recommend the distribution of dividends for the years ended March 31, 2023, and 2022[25]. - The board expressed gratitude to shareholders, business partners, and all management and staff for their contributions and support throughout the year[30]. - The board held a total of ten meetings during the year, with attendance records for executive directors ranging from 0 to 10 out of 10[45]. - The chairman and CEO roles are held by the same individual, which the board believes provides strong and consistent leadership for long-term business strategy development[46]. - Independent non-executive directors have a one-year term and must retire and can be re-elected at the annual general meeting[47]. - The company is committed to maintaining high standards of corporate governance as outlined in the annual report[122]. Internal Controls and Audit - The board of directors is responsible for the internal control system, which was reviewed for effectiveness during the year, ensuring compliance with applicable laws and regulations[57]. - The audit committee reviewed the unaudited interim financial statements for the six months ending September 30, 2022, and the audited consolidated financial statements for the year ending March 31, 2023, holding two meetings in total[54]. - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2023[127]. - The audit committee oversees the financial reporting process of the company[145]. - The auditor's responsibility includes assessing the risk of material misstatement due to fraud or error in the financial statements[148]. Environmental and Social Responsibility - The group received multiple environmental certifications, including the Hong Kong Green Organization Certification at the excellence level[66]. - The group has been recognized with the "15 Years Plus Caring Company" logo by the Hong Kong Council of Social Service for its corporate social responsibility efforts[88]. - The group has maintained a zero incident rate for fatal or occupational injuries during the reporting period[76]. - The average training hours provided to each employee was 5 hours during the reporting period[77]. Future Plans and Strategies - The company plans to develop innovative products in the IoT solutions segment to meet market demand, anticipating an increase in sales[15]. - The company plans to continue applying new Hong Kong Financial Reporting Standards, which are not expected to have a significant impact on its financial performance[168]. Revenue Recognition and Financial Reporting - The revenue from smart system construction services for the year ended March 31, 2023, was approximately HKD 66,196,000[137]. - The revenue recognition for smart system construction services is based on the progress of fulfilling performance obligations over time, using the input method[137]. - The group adopted an expected credit loss model to estimate impairment provisions for contract assets and accounts receivable, which involves significant judgment and assumptions[134]. - The audit procedures for revenue recognition included evaluating internal controls and assessing the appropriateness of revenue recognition policies[138]. - The group recognizes right-of-use assets and corresponding lease liabilities for all leases, excluding short-term leases and low-value asset leases[179].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何 部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 HKC INTERNATIONAL HOLDINGS LIMITED 香 港 通 訊 國 際 控 股 有 限 公 司 * （於開曼群島註冊成立之有限公司） （股票代號：248） 截至二零二三年三月三十一日止年度之 全年業績公佈 香港通訊國際控股有限公司（「本公司」）之董事會（「董事會」）欣然宣佈本公司及其 附屬公司（統稱「本集團」）截至二零二三年三月三十一日止年度之經審核綜合業績 連同截至二零二二年三月三十一日止年度之經審核比較數字如下： 綜合全面收益表 截至二零二三年三月三十一日止年度 二零二三年 二零二二年 附註 千港元 千港元 收益 3 169,524 199,096 銷售成本 (140,883) (156,280) 毛利 28,641 42,816 ...

Financial Performance - Revenue for the six months ended September 30, 2022, was HKD 97,085,000, a decrease of 13.9% compared to HKD 112,786,000 for the same period in 2021[5] - Gross profit for the same period was HKD 15,581,000, down 25.3% from HKD 20,806,000 in 2021[5] - The company reported a profit attributable to equity holders of HKD 794,000, compared to a loss of HKD 2,856,000 in the previous year[5] - Total comprehensive income for the period was HKD 5,919,000, a significant improvement from a loss of HKD 3,154,000 in the prior year[5] - Total external customer revenue for the six months ended September 30, 2022, was HKD 97,085,000, a decrease of 13.9% compared to HKD 112,786,000 for the same period in 2021[16] - The reportable segment profit for the six months ended September 30, 2022, was HKD 880,000, compared to a loss of HKD 2,495,000 in the same period of 2021, indicating a significant improvement[18] - The profit attributable to equity holders for the period was HKD 800,000, a turnaround from a loss of HKD 2,900,000 in the previous year, primarily due to government subsidies of HKD 1,500,000 and an increase in dividend income of HKD 1,400,000[38] Cash Flow and Assets - Cash and cash equivalents increased to HKD 34,052,000 from HKD 17,732,000, reflecting a net increase of HKD 8,378,000[9] - Operating cash outflow for the six months was HKD 28,373,000, compared to HKD 8,699,000 in the previous year, indicating increased cash usage in operations[9] - The company’s total assets less current liabilities stood at HKD 286,846,000 as of September 30, 2022, up from HKD 280,927,000 at the end of March 2022[7] - The company’s net asset value increased to HKD 286,721,000 from HKD 280,802,000, reflecting a growth in equity[7] - Reportable segment assets increased to HKD 400,172,000 as of September 30, 2022, from HKD 370,044,000 as of March 31, 2022, reflecting a growth of 8.1%[19] - Non-current assets as of September 30, 2022, totaled HKD 242,470,000, slightly up from HKD 242,111,000 as of March 31, 2022[16] Liabilities and Financing - Reportable segment liabilities rose to HKD 131,176,000 as of September 30, 2022, compared to HKD 99,816,000 as of March 31, 2022, representing a 31.3% increase[19] - The company’s financing costs decreased slightly to HKD 1,245,000 from HKD 1,280,000, showing improved cost management[5] - The financing costs for the six months ended September 30, 2022, amounted to HKD 1,245,000, compared to HKD 1,280,000 for the same period in 2021, showing a decrease of 2.7%[13] - Bank borrowings increased to HKD 123 million as of September 30, 2022, compared to HKD 85 million as of March 31, 2022[45] - The group's debt-to-equity ratio rose to 43% as of September 30, 2022, up from 30% as of March 31, 2022[45] Inventory and Revenue Segments - The company’s inventory increased to HKD 18,360,000 from HKD 15,874,000, indicating a rise in stock levels[6] - Revenue from mobile phone sales in Hong Kong was HKD 30,007,000, while IoT solution sales contributed HKD 60,083,000 for the six months ended September 30, 2022[13] - Revenue from mobile phone sales decreased by 65% to HKD 30,000,000, down from HKD 85,000,000 in the previous year, with a profit of HKD 300,000 compared to HKD 1,500,000 in the prior year[39] - Revenue from IoT solutions increased to HKD 66,000,000 from HKD 27,000,000, with a profit of HKD 600,000 compared to a loss of HKD 3,200,000 in the previous year[40] - Rental income from property investment decreased by HKD 100,000 to HKD 1,000,000, with a profit of HKD 100,000 compared to a loss of HKD 800,000 in the previous year[41] Employee Costs and Corporate Governance - Total employee costs for the period were HKD 7,854,000, down from HKD 13,580,000 in the previous year, reflecting a significant reduction in salary and benefits[25] - Total employee compensation (excluding directors' remuneration) was HKD 6 million, down from HKD 11 million in the previous year[46] - The total employee count increased to approximately 96 as of September 30, 2022, from 92 as of March 31, 2022[46] - The audit committee has reviewed the accounting policies adopted by the group and discussed internal controls and financial reporting matters for the six months ending September 30, 2022[56] - The board expresses heartfelt gratitude to shareholders, business partners, and all management and staff for their contributions and ongoing support during the period[57] Future Outlook and Market Conditions - The company plans to enhance cost control and develop more products to meet market demand amid uncertain economic conditions[44] - The company expects revenue from the IoT solutions segment to increase due to the implementation of new projects[43] - The rental market demand is weak, which will affect rental levels and occupancy rates in the property investment segment[44] Shareholder Information - The major shareholder, Chen Chongyi, holds 659,740,159 shares, representing 52.97% of the company[49] - The spouse of Chen Chongyi, Liu Wenting, holds 681,752,246 shares, representing 54.74% of the company[52] - The company did not purchase, sell, or redeem any of its listed shares during the six months ending September 30, 2022[53] - The group has corporate guarantees totaling HKD 71 million as of September 30, 2022, unchanged from March 31, 2022[48] - The fair value of certain investment properties pledged as collateral was HKD 192 million as of September 30, 2022[47]

Financial Performance - The group's revenue decreased by 8% to HKD 199 million for the year ended March 31, 2022, compared to HKD 217 million in the previous year[10]. - The company reported a loss attributable to equity holders of HKD 2 million, down from a profit of HKD 5 million in the previous year[10]. - Revenue from mobile phone sales decreased from HKD 148 million to HKD 134 million, with a profit of HKD 3 million compared to HKD 4 million in the previous year[11]. - Revenue from IoT solutions was HKD 62 million, down from HKD 67 million, with a loss of HKD 5 million, unchanged from the previous year[12]. - Total revenue for the year ended March 31, 2022, was HKD 199,096,000, a decrease of 8.4% from HKD 217,122,000 in the previous year[149]. - Gross profit increased to HKD 42,816,000, up 7.2% from HKD 39,744,000 year-on-year[149]. - The company reported a loss attributable to equity holders of HKD 1,943,000 compared to a profit of HKD 4,747,000 in the previous year, marking a significant decline[149]. - The basic and diluted loss per share was HKD (0.16), compared to earnings per share of HKD 0.38 in the previous year[149]. Cash Flow and Financial Position - As of March 31, 2022, the group's cash and bank balances were approximately HKD 28 million, up from HKD 24 million in the previous year, while bank borrowings were HKD 85 million, down from HKD 88 million[16]. - The net cash used in operating activities was HKD 1,843,000, an improvement from HKD 21,476,000 in the previous year[156]. - The company’s cash and bank balances increased to HKD 25,746,000 from HKD 21,080,000, representing a growth of 22.0%[151]. - The company reported a total cash and bank balance of HKD 25,746,000, with bank overdrafts of HKD 14,755,000[159]. - The cash outflow from financing activities was HKD 17,607,000 in 2022, compared to a cash inflow of HKD 25,508,000 in 2021[159]. - The company reported a decrease in cash and cash equivalents of HKD 7,122,000 in 2022, contrasting with an increase of HKD 3,703,000 in 2021[159]. Corporate Governance - The board of directors includes six executive directors and three independent non-executive directors, ensuring a diverse governance structure[40]. - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange regulations, with a commitment to continuous improvement in governance practices[38]. - The chairman and CEO roles are held by the same individual, which the board believes provides strong and consistent leadership for long-term business strategy development[45]. - The company emphasizes the importance of effective communication within the board and compliance with applicable laws and regulations[43]. - The company is committed to ensuring that all directors receive appropriate training to enhance their knowledge and skills[40]. - The company has a structured approach to corporate governance, ensuring that the interests of shareholders, customers, and employees are protected[38]. - The board will continue to review and improve corporate governance practices to ensure prudent decision-making[57]. Environmental and Social Responsibility - The company encourages sustainable resource use and has implemented a 4R policy to minimize environmental impact[67]. - The company received multiple environmental certifications, including the Hong Kong Environmental Excellence Award and the Hong Kong Green Organization Certification[15]. - The company made donations totaling HKD 150,000 during the year[107]. Internal Controls and Audit - The company emphasized the importance of internal controls to ensure the preparation of financial statements free from material misstatement due to fraud or error[141]. - The audit report highlighted the need for ongoing assessment of the company's ability to continue as a going concern[145]. - The audit procedures included evaluating the appropriateness of revenue recognition policies and assessing the reasonableness of budgeted contract costs[136]. - The independent auditor's report was issued on June 24, 2022, confirming the overall fairness of the consolidated financial statements[148]. Market and Operational Insights - The rental market demand is weak, which will put downward pressure on rental income and occupancy rates[15]. - The company plans to develop innovative products in the IoT solutions segment to meet market demand and will continue to implement cost control measures[14]. - The employee turnover rate increased to 5% in 2022, compared to 2% in 2021[77]. Shareholder Information - The company has no dividends declared or proposed for the year ended March 31, 2022[25]. - The company maintains a dividend policy that considers financial performance, cash flow, future expansion plans, and shareholder interests[108]. - As of March 31, 2022, Chairman and CEO Chen Chong-yi holds 659,740,159 shares, representing 52.97% of the company[116]. - Major shareholder Liu Wen-ting holds 681,752,246 shares, representing 54.74% of the company[119].

Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 112,786,000, representing a 26.5% increase from HKD 89,202,000 in the same period of 2020[5] - Gross profit increased to HKD 20,806,000, up 8.9% from HKD 19,105,000 year-on-year[5] - The company reported a loss attributable to equity holders of HKD 2,856,000, compared to a profit of HKD 1,174,000 in the previous year[5] - Total external customer revenue for the six months ended September 30, 2021, was HKD 112,786,000, representing an increase from HKD 89,202,000 in the same period of 2020, which is a growth of approximately 26.5%[16] - The report indicates a segment loss of HKD 2,495,000 for the six months ended September 30, 2021, compared to a profit of HKD 1,063,000 in the same period of 2020, reflecting a significant decline in profitability[17] - Revenue from mobile phone sales increased by 52% to HKD 85 million, up from HKD 56 million in the previous year, driven by government consumption vouchers and retail market recovery[38] - Revenue from IoT solutions decreased by 13% to HKD 27 million, down from HKD 31 million in the previous year, with a loss of HKD 3.2 million compared to a profit of HKD 2.8 million in the prior year[39] Cash Flow and Assets - Operating cash flow for the six months was a net outflow of HKD 8,699,000, compared to a net inflow of HKD 6,477,000 in the same period last year[10] - Total assets less current liabilities stood at HKD 278,149,000 as of September 30, 2021, down from HKD 281,288,000 as of March 31, 2021[8] - Cash and cash equivalents at the end of the period were HKD 17,732,000, an increase from HKD 14,034,000 year-on-year[10] - The company’s total equity decreased to HKD 277,992,000 from HKD 281,146,000, reflecting the impact of the loss during the period[8] - The total assets reported as of September 30, 2021, were HKD 385,436,000, a decrease from HKD 391,729,000 as of March 31, 2021[18] - The total liabilities as of September 30, 2021, were HKD 107,444,000, down from HKD 110,583,000 as of March 31, 2021[18] - Trade receivables as of September 30, 2021, were HKD 18.243 million, down from HKD 19.569 million as of March 31, 2021[32] - As of September 30, 2021, the group's cash and bank balances totaled approximately HKD 18,000,000, down from HKD 21,000,000 on March 31, 2021[42] Liabilities and Borrowings - Current liabilities decreased to HKD 107,287,000 from HKD 110,441,000, indicating improved management of short-term obligations[7] - The bank borrowings increased to HKD 95,000,000 as of September 30, 2021, compared to HKD 88,000,000 on March 31, 2021[42] - Total interest expenses increased to HKD 1.156 million from HKD 0.913 million, reflecting higher bank borrowing costs[22] Employee and Compensation - Employee costs totaled HKD 13.58 million, an increase from HKD 12.82 million in the previous year, indicating a rise in salary and benefits expenses[24] - The total employee compensation (excluding directors' remuneration) was HKD 11,000,000 for the period, up from HKD 10,000,000 in the previous year[43] - The number of employees increased to approximately 95 as of September 30, 2021, from 90 on March 31, 2021[43] Corporate Governance and Shareholder Information - The company proposed no interim dividend for the six months ended September 30, 2021, consistent with the previous year[29] - The major shareholder, Chen Chongyi, holds 52.97% of the company's shares, while his spouse Liu Wenting holds 54.74% through her rights[46][49] - The company has adhered to the corporate governance code as per the listing rules for the six months ending September 30, 2021, with exceptions noted for the roles of Chairman and CEO being held by the same individual[51] - The company has adopted the standard code for securities trading by directors and confirmed compliance for the six months ending September 30, 2021[52] - The audit committee has reviewed the accounting policies and discussed internal controls and financial reporting for the unaudited interim results for the six months ending September 30, 2021[53] - The board expresses gratitude to shareholders, business partners, and all management and staff for their contributions and support during the period[54] Future Outlook and Strategy - The company plans to focus on market expansion and new product development to drive future growth[5] - The report highlights a focus on expanding IoT solutions, although specific future product launches or technological advancements were not detailed in the provided content[13] Other Financial Information - Government subsidies received during the review period amounted to HKD 22,000, significantly lower than HKD 4.6 million received in the previous year due to the COVID-19 pandemic[37] - Rental income from property investments decreased by HKD 200,000 to HKD 1.1 million, down from HKD 1.3 million in the previous year, resulting in a loss of HKD 800,000 compared to a loss of HKD 300,000 in the prior year[40] - The group has made corporate guarantees totaling HKD 71,000,000 as of September 30, 2021, unchanged from March 31, 2021[45] - The group sold an investment property for HKD 12,300,000 to increase working capital, with the transaction completed on November 5, 2021[42] - Non-current assets increased by HKD 716,000 during the reporting period, with specific increases in various segments[14] - Interest income from bank deposits was reported at HKD 1,000 for the six months ended September 30, 2021[14] - The company reported a foreign exchange gain of HKD 1,000 for the period, a decrease from HKD 55,000 in the previous year[17] - The group maintained a high mobile phone inventory of HKD 20,000,000 as of September 30, 2021, which has since decreased to HKD 3,000,000[42] - The asset-to-equity ratio increased to 34% as of September 30, 2021, from 31% on March 31, 2021[42]

Financial Performance - The group's revenue decreased by 7% to HKD 217 million for the year ended March 31, 2021, compared to HKD 232 million in the previous year[10]. - The company reported a profit attributable to equity holders of HKD 5 million, a turnaround from a loss of HKD 23 million in the previous year, mainly due to a fair value gain on investment properties of approximately HKD 6 million[10]. - Total revenue for the year ended March 31, 2021, was HKD 217,122,000, a decrease of 6.4% from HKD 232,235,000 in 2020[148]. - Gross profit for the same period was HKD 39,744,000, down from HKD 40,363,000, reflecting a slight decline in profitability[148]. - The company reported a profit attributable to equity holders of HKD 4,747,000, compared to a loss of HKD 23,034,000 in the previous year, indicating a significant turnaround[148]. - The total comprehensive income for the year was HKD 6,570,000, compared to a comprehensive loss of HKD 18,910,000 in 2020[153]. - The company reported a pre-tax profit of HKD 4,515,000 in 2021, a significant improvement from a loss of HKD 22,793,000 in 2020[156]. - The company reported a loss from the fair value of investment properties of HKD 6,353,000 in 2021, compared to a gain of HKD 11,117,000 in 2020[156]. Revenue Segments - The mobile phone sales segment's revenue decreased from HKD 182 million to HKD 169 million, maintaining a profit of HKD 4 million[11]. - The Internet of Things (IoT) solutions segment reported revenue of HKD 46 million, with losses reduced from HKD 16 million to HKD 5 million due to increased profit margins on disinfectant products and cost control measures[12]. - The group recognized revenue of approximately HKD 35,337,000 from smart system construction services for the fiscal year ending March 31, 2021[134]. Cash and Liquidity - As of March 31, 2021, the group's cash and bank balances were approximately HKD 24 million, up from HKD 19 million in the previous year[17]. - Cash and bank balances increased to HKD 21,080,000 from HKD 17,350,000, indicating a 21.5% growth in liquidity[149]. - The net cash outflow from operating activities was HKD 21,476,000 in 2021, compared to a net inflow of HKD 1,143,000 in 2020[156]. - The company’s net cash generated from financing activities was HKD 25,508,000 in 2021, a recovery from a net outflow of HKD 10,216,000 in 2020[158]. Corporate Governance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules, with some exceptions regarding the roles of the chairman and CEO[38]. - The board consists of six executive directors and three independent non-executive directors, ensuring a diverse range of expertise[40]. - The company has implemented a standard code of conduct for directors' securities trading, confirming compliance throughout the year[39]. - The board held a total of 11 meetings this year, with all executive directors attending at least 10 out of 11 meetings[44]. - The chairman and CEO positions are held by the same individual, providing strong and consistent leadership for long-term business strategy development[45]. - The board is committed to continuously reviewing and improving corporate governance practices to ensure prudent decision-making[56]. - The independent auditor's report confirmed that the financial statements present a true and fair view of the group's financial position as of March 31, 2021[124]. Shareholder Information - The company did not recommend the payment of a final dividend for the year ended March 31, 2021[26]. - The board of directors emphasizes maintaining sufficient cash reserves for operational needs, future growth, and shareholder returns when considering dividend payments[106]. - The distributable reserves of the company as of March 31, 2021, were HKD 148,225,000, a slight decrease from HKD 149,136,000 in 2020[100]. - The company did not recommend any dividend payments for the years ended March 31, 2021, and March 31, 2020[94]. Environmental and Social Responsibility - The company has implemented a 4R policy (Reduce, Reuse, Recycle, Replace) to minimize environmental impact[66]. - The company received multiple environmental certifications, including the Hong Kong Green Organization Certification at the excellence level[67]. - The company has been recognized with the "Caring Company" logo by the Hong Kong Council of Social Service since 2005, reflecting its commitment to corporate social responsibility[88]. - The company made donations totaling HKD 210,000 during the year[103]. Assets and Liabilities - Non-current assets increased to HKD 274,496,000 from HKD 267,493,000, showing a growth of 2.7%[149]. - Current assets rose to HKD 117,233,000, up from HKD 90,195,000, marking a 30% increase[149]. - Total liabilities increased to HKD 110,441,000 from HKD 82,594,000, representing a 33.7% rise[149]. - The company's net asset value stood at HKD 281,146,000, compared to HKD 274,576,000 in the previous year, reflecting a growth of 2.4%[151]. Audit and Compliance - The audit committee reviewed the unaudited interim financial statements for the six months ending September 30, 2020, and the audited consolidated financial statements for the year ending March 31, 2021, holding two meetings in total[52]. - The company’s auditor fees for the year ending March 31, 2021, were HKD 666,000 for audit services and HKD 44,000 for non-audit services, totaling HKD 710,000[57]. - The group’s management is responsible for maintaining internal controls to ensure the financial statements are free from material misstatement due to fraud or error[140]. - The auditor's responsibility includes assessing the appropriateness of accounting policies and the reasonableness of accounting estimates made by management[144]. Investments and Fair Value - The fair value of investment properties as of March 31, 2021, was approximately HKD 212,720,000, with a net fair value increase of HKD 6,353,000 recognized in the comprehensive income statement for the year[128]. - The group has non-listed equity investments valued at approximately HKD 6,800,000, classified as financial assets measured at fair value through other comprehensive income[136]. - The fair value assessment of these investments involves significant judgment and estimation, impacting the financial statements materially[137].

Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 89,202,000, a decrease of 20% compared to HKD 111,270,000 in the same period of 2019[5] - Gross profit for the same period was HKD 19,105,000, down from HKD 21,983,000, reflecting a decline in gross margin[5] - The company reported a profit attributable to equity holders of HKD 1,174,000, compared to a loss of HKD 4,400,000 in the previous year[5] - Total external customer revenue for the six months ended September 30, 2020, was HKD 89,202,000, a decrease of 19.8% from HKD 111,270,000 in the same period of 2019[19][21][24] - The reportable segment profit for the six months ended September 30, 2020, was HKD 1,063,000, compared to a loss of HKD 2,928,000 in the same period of 2019[20][24] - The total comprehensive income before tax for the six months ended September 30, 2020, was HKD 1,294,000, compared to a loss of HKD 4,340,000 in the same period of 2019[24] - The profit attributable to equity holders was HKD 1.2 million, a turnaround from a loss of HKD 4.4 million in the same period last year, primarily due to government subsidies of HKD 4.6 million received during the pandemic[41] Cash Flow and Liquidity - Operating cash flow generated was HKD 6,477,000, a significant improvement from a cash outflow of HKD 2,601,000 in the prior period[14] - Current liabilities decreased to HKD 70,812,000 from HKD 82,594,000, indicating improved liquidity management[7] - The company’s cash and cash equivalents at the end of the period were HKD 14,034,000, an increase from HKD 13,283,000 year-over-year[14] - The company maintained a cash and bank balance of approximately HKD 14 million as of September 30, 2020, down from HKD 17 million as of March 31, 2020[46] - The total bank borrowings were HKD 56 million, reduced from HKD 65 million as of March 31, 2020, with a debt-to-equity ratio of 20%[46] Assets and Liabilities - Total assets less current liabilities as of September 30, 2020, stood at HKD 275,918,000, slightly up from HKD 275,094,000 as of March 31, 2020[9] - The company’s total assets as of September 30, 2020, were HKD 346,730,000, a decrease from HKD 357,688,000 as of March 31, 2020[25] - Non-current assets increased by HKD 312,000 during the reporting period, with total reportable segment assets amounting to HKD 338,998,000 as of September 30, 2020[20][25] - The total liabilities for the reportable segments decreased to HKD 71,025,000 as of September 30, 2020, down from HKD 80,459,000 in the same period of 2019[21][25] Revenue Breakdown - Revenue from mobile phone sales in Hong Kong was HKD 56,455,000, while IoT solution sales contributed HKD 23,873,000 for the same period[20] - Revenue from mobile phone sales decreased by 29% to HKD 56 million, down from HKD 80 million in 2019, resulting in a loss of HKD 1.4 million[42] - Revenue from IoT solutions increased by 8% to HKD 31 million, up from HKD 29 million in 2019, with a profit of HKD 2.7 million compared to a loss of HKD 2.6 million in the previous year[43] - Rental income from property investments decreased by HKD 1 million to HKD 1.3 million, down from HKD 2.3 million in 2019, leading to a loss of HKD 300,000[44] Shareholder Information - As of September 30, 2020, the beneficial ownership of shares by director Chen Chongyi in the company is 655,740,159 shares, representing 52.65% of the total shares[50] - Director Chen Chongyi also controls 22,012,087 shares, which accounts for 1.77% of the total shares[50] - The total beneficial ownership of shares by director Chen Chongyan is 93,795,191 shares, equivalent to 7.53%[50] - The company’s major shareholder, Liu Wenting, holds 677,752,246 shares, representing 54.42% of the total shares[53] - Liu Huixian, another major shareholder, holds 93,795,191 shares, which is 7.53% of the total shares[53] Governance and Compliance - The company has complied with the corporate governance code as per the listing rules, except for the separation of the roles of Chairman and CEO, which are held by the same individual, Chen Chongyi[55] - The audit committee has reviewed the accounting policies adopted by the group and discussed internal controls and financial reporting matters for the six months ending September 30, 2020[57] - The company has adopted the standard code of conduct for directors' securities transactions and confirmed compliance for the six months ending September 30, 2020[56] Future Outlook - The company plans to enhance cost control and develop more products to meet market demand amid uncertain economic conditions[45] - The company proposed not to declare an interim dividend for the six months ended September 30, 2020, consistent with the previous year[33] Employee Information - The total employee costs amounted to HKD 10 million, down from HKD 11 million in 2019, with approximately 90 employees as of September 30, 2020[47] Other Financial Information - The company incurred financing costs of HKD 1,008,000, down from HKD 1,099,000 in the previous year, reflecting lower interest expenses[5] - Interest income from bank deposits was HKD 10,000 for the six months ended September 30, 2020, down from HKD 34,000 in the previous year[25] - The company recorded a trade receivables impairment loss of HKD 315,000 during the reporting period[25] - The company reported a government grant income of HKD 4,622,000 for the six months ended September 30, 2020, compared to no such income in the previous year[25] - Inventory increased to HKD 20,178,000 from HKD 17,455,000, indicating a potential buildup of stock[7] Acknowledgments - The board expresses gratitude to shareholders, business partners, and all management and staff for their contributions and support during the period[58] - The company did not purchase, sell, or redeem any of its listed shares during the six months ending September 30, 2020[54]