Financial Performance - The group's revenue decreased by 18% to HKD 232 million for the year ended March 31, 2020, compared to HKD 283 million in 2019, with a loss attributable to equity holders of HKD 23 million, down from a profit of HKD 1 million in 2019[12]. - Total revenue for the year ended March 31, 2020, was HKD 232,235,000, a decrease of 17.9% from HKD 283,113,000 in 2019[156]. - Gross profit for the same period was HKD 40,363,000, down 11.1% from HKD 45,620,000 in 2019[156]. - The company reported a loss before tax of HKD 22,793,000 compared to a profit of HKD 1,128,000 in the previous year[156]. - The net loss attributable to equity holders for the year was HKD 23,034,000, a significant decline from a profit of HKD 1,041,000 in 2019[156]. - Basic and diluted loss per share was HKD 1.85, compared to earnings of HKD 0.08 per share in the previous year[156]. - The fair value loss on investment properties was HKD 11,117,000, contrasting with a gain of HKD 7,620,000 in 2019[156]. - Administrative and other operating expenses were HKD 41,617,000, slightly down from HKD 42,163,000 in the previous year[156]. - Financing costs decreased to HKD 2,428,000 from HKD 2,578,000 in 2019[156]. - The company experienced a foreign exchange loss of HKD 767,000 from overseas operations, compared to a loss of HKD 214,000 in the previous year[156]. - Other comprehensive income for the year was HKD 4,124,000, compared to an expense of HKD 214,000 in 2019[156]. Revenue Breakdown - Sales of mobile phones decreased from HKD 227 million to HKD 182 million, while the segment recorded a profit of HKD 4 million, an increase from HKD 2 million in 2019[13]. - Revenue from IoT solutions decreased by 10% to HKD 46 million, with losses increasing from HKD 10 million to HKD 16 million[14]. - Rental income from property investment decreased from HKD 4.5 million to HKD 4.2 million, resulting in a loss of HKD 20,000, down from a profit of HKD 1.5 million in 2019[15]. - Revenue from smart system construction services recognized during the year was approximately HKD 18,089,000[141]. Cash Flow and Liquidity - The group maintains a healthy cash flow with cash and bank balances of approximately HKD 19 million as of March 31, 2020, down from HKD 29 million in 2019, and bank borrowings of HKD 65 million, down from HKD 71 million[19]. - Cash and cash equivalents decreased from HKD 26,310,000 in 2019 to HKD 17,350,000 in 2020, a reduction of approximately 34.1%[166]. - The company’s total equity fell from HKD 295,977,000 in 2019 to HKD 274,576,000 in 2020, a decline of about 7.2%[159]. - Net current assets dropped significantly from HKD 21,056,000 in 2019 to HKD 7,601,000 in 2020, representing a decrease of about 63.8%[158]. Corporate Governance - The board believes that good corporate governance is crucial for protecting the interests of shareholders, customers, and employees, and has complied with the corporate governance code except for certain provisions[30]. - The company has adopted the standard code of conduct for securities transactions by directors and confirmed compliance for the fiscal year ending March 31, 2020[32]. - The company is committed to reviewing and improving its corporate governance practices to ensure proper oversight of business activities and decision-making processes[30]. - The company has complied with the standards set out in the Listing Rules regarding securities trading by directors throughout the fiscal year ending March 31, 2020[46]. - The board is committed to continuously reviewing and improving corporate governance practices to safeguard the interests of shareholders and stakeholders[49]. - The company has committed to maintaining high standards of corporate governance[127]. Employee and Operational Metrics - The group employed approximately 100 staff as of March 31, 2020, down from 120 in 2019, with total employee compensation of HKD 27 million, down from HKD 31 million[23]. - The employee turnover rate was 2% for the reporting period, down from 3% in the previous year[80]. - The average training provided to each employee was 5 hours during the reporting period[82]. Environmental and Social Responsibility - The total electricity consumption for 2020 was 214,570 kWh, a decrease from 251,325 kWh in 2019[76]. - The total water consumption for 2020 was 132 cubic meters, down from 218 cubic meters in 2019[76]. - The company received an award for excellence at the Hong Kong Environmental Excellence Awards 2019[75]. - The company has a strict policy against child labor and forced labor, ensuring compliance with relevant guidelines and regulations[85]. - The company has been recognized as a "Family-Friendly Employer" since 2011, highlighting its commitment to family-friendly policies[95]. - The company has been a corporate sponsor of the "30-Hour Famine" event organized by World Vision Hong Kong since 2010[95]. Shareholder Information - The company does not recommend the distribution of dividends for the year ended March 31, 2020, compared to a dividend of HKD 0.002 per share totaling HKD 2.491 million in 2019[28]. - The company did not recommend any dividend payment for the year ended March 31, 2020, compared to a dividend of HK$0.002 per share in 2019[101]. - The chairman and CEO, Chen Chong-yi, holds a beneficial interest of 653,104,159 shares, representing 52.44% of the company[118]. - Chen Chong-yi also controls an additional 22,012,087 shares, accounting for 1.77% of the company[118]. - Chen Chung-yan holds a beneficial interest of 93,795,191 shares, which is 7.53% of the company[118]. - Liu Wenting holds 675,116,246 shares, representing 54.21% of the company, as a spouse's interest[122]. - Liu Huixian owns 93,795,191 shares, which is 7.53% of the company, also as a spouse's interest[122]. Audit and Compliance - The audit committee reviewed the unaudited interim financial statements for the six months ending September 30, 2019, and the audited financial statements for the year ending March 31, 2020[33]. - The auditor's fees for the year ending March 31, 2020, totaled HKD 723,000, with HKD 683,000 for audit services and HKD 40,000 for non-audit services[65]. - The audit identified the estimation of expected credit losses for contract assets and accounts receivable as a key audit matter due to its significance and inherent uncertainty[138]. - The audit procedures for contract asset and accounts receivable impairment included evaluating internal controls related to credit control and debt collection[137]. Investment and Assets - The total fair value of the group's investment properties as of March 31, 2020, was HKD 205,950,000, accounting for 58% of the total assets[135]. - The net fair value decrease recorded in the consolidated comprehensive income statement for the year ended March 31, 2020, was HKD 11,117,000[135]. - The group adopted an expected credit loss model to estimate impairment provisions for contract assets and accounts receivable, based on historical default experience and current financial condition of debtors[136]. - The group’s investment properties are located in Hong Kong and Singapore, including office, industrial, and residential properties[135]. Changes in Accounting Policies - The adoption of Hong Kong Financial Reporting Standard 16 resulted in a significant change in accounting policy, requiring the recognition of right-of-use assets and lease liabilities for all leases except for short-term leases and low-value asset leases[174]. - The company confirmed the recognition of right-of-use assets and corresponding lease liabilities for all lease arrangements, excluding short-term leases and low-value asset leases[197]. - Lease liabilities are measured at the present value of unpaid lease payments, discounted using the implicit rate or incremental borrowing rate if the implicit rate is not determinable[198].

Financial Performance - The company's revenue for the six months ended September 30, 2019, was HKD 111,270,000, a decrease of 29% compared to HKD 156,568,000 for the same period in 2018[5] - Gross profit for the same period was HKD 21,983,000, down 15% from HKD 25,981,000 year-on-year[5] - The company reported a loss attributable to equity holders of HKD 4,400,000, compared to a profit of HKD 591,000 in the previous year[5] - The group reported a loss of HKD 2,928,000 for the six months ended September 30, 2019, compared to a profit of HKD 827,000 in the same period of 2018[28] - The mobile phone sales segment generated revenue of HKD 80 million, down 35% from HKD 123 million in the previous year, resulting in a loss of HKD 800,000[50] - Revenue from IoT solutions decreased by 6% to HKD 29 million, with a loss of HKD 2.6 million compared to a loss of HKD 2.1 million in the previous year[51] Cash Flow and Assets - Operating cash flow for the six months was a net outflow of HKD 2,601,000, contrasting with a net inflow of HKD 17,727,000 in the same period last year[12] - The company's cash and cash equivalents at the end of the period were HKD 13,283,000, a decrease from HKD 24,568,000 at the end of the previous year[12] - Total assets less current liabilities as of September 30, 2019, were HKD 289,404,000, down from HKD 296,403,000 as of March 31, 2019[7] - The total assets as of September 30, 2019, were HKD 369,520,000, a decrease from HKD 388,383,000 as of March 31, 2019[29] - As of September 30, 2019, the company's cash and bank balances totaled approximately HKD 16 million, down from HKD 29 million as of March 31, 2019, while bank loans amounted to HKD 64 million[54] Liabilities and Equity - The company’s total equity as of September 30, 2019, was HKD 288,893,000, down from HKD 295,977,000 as of March 31, 2019[7] - The group’s total liabilities as of September 30, 2019, were HKD 80,459,000, compared to HKD 87,666,000 as of September 30, 2018[24] - The total liabilities as of September 30, 2019, were HKD 80,627,000, down from HKD 92,406,000 as of March 31, 2019[29] - The company's debt-to-equity ratio was 22% as of September 30, 2019, compared to 24% as of March 31, 2019[54] Operational Highlights - External customer revenue from mobile phone sales in Hong Kong was HKD 79,867,000, while IoT solution sales generated HKD 24,594,000[23] - Inventory increased to HKD 28,196,000 from HKD 22,180,000, indicating a rise of 27%[6] - Total employee costs amounted to HKD 14,005,000 for the six months ended September 30, 2019, compared to HKD 13,923,000 in 2018[35] - The total employee compensation (excluding directors' remuneration) was HKD 11 million, unchanged from the previous year[55] Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has complied with it, except for the separation of the roles of Chairman and CEO[63] - The audit committee reviewed the accounting policies and discussed internal controls and financial reporting matters for the six months ending September 30, 2019[65] Future Outlook - The company plans to enhance cost control and develop more products to meet market demand amid uncertain economic conditions[53] - The board believes the company has sufficient resources to meet its commitments and working capital needs[54] Shareholder Information - As of September 30, 2019, Matrix World Group Limited holds 644,344,353 shares, representing 51.74% of the company's equity[61] - Liu Huixian holds 93,795,191 shares, representing 7.53% of the company's equity, as a spouse interest[61] - Liu Wenting holds 675,116,246 shares, representing 54.21% of the company's equity, as a spouse interest[61] - The company did not purchase, sell, or redeem any of its listed shares during the six months ending September 30, 2019[61] Miscellaneous - The company did not declare an interim dividend for the six months ended September 30, 2019, consistent with the previous year[39] - The estimated tax expense for the period was HKD 60,000, up from HKD 10,000 in 2018, reflecting an increase in taxable profits[36] - The group recognized an increase in right-of-use assets of HKD 205,000 and lease liabilities of HKD 212,000 upon the adoption of HKFRS 16 on April 1, 2019[19] - The group reported a foreign exchange loss of HKD 4,000 for the period, compared to a loss of HKD 40,000 in the same period of 2018[28] - The fair value loss on financial assets measured at fair value through profit or loss was HKD 52,000, significantly reduced from HKD 186,000 in 2018[31] - Rental income from property investment remained stable at HKD 2.3 million, with profit decreasing from HKD 600,000 to HKD 500,000[52] - The company expressed gratitude to shareholders, business partners, and all management and staff for their contributions and support during the period[66]

Financial Performance - The group's revenue increased by 10% to HKD 283 million for the year ended March 31, 2019, compared to HKD 254 million in 2018, with a profit attributable to equity holders of HKD 1 million, recovering from a loss of HKD 4 million in the previous year [12]. - Total revenue for the year ended March 31, 2019, was HKD 283,113,000, representing an increase of 11.5% from HKD 253,899,000 in 2018 [144]. - Gross profit decreased to HKD 44,151,000, down 6.4% from HKD 47,184,000 in the previous year [144]. - The company reported a profit attributable to equity holders of HKD 1,041,000, compared to a loss of HKD 3,548,000 in 2018 [144]. - Total comprehensive income for the year was HKD 827,000, significantly lower than HKD 34,377,000 in the previous year [144]. - The company reported a pre-tax profit of HKD 1,128,000 for the year ended March 31, 2019, compared to a loss of HKD 3,424,000 in the previous year [153]. - Operating cash flow generated was HKD 21,001,000, a significant improvement from a cash outflow of HKD 21,898,000 in the prior year [153]. Revenue Sources - Mobile phone sales revenue rose from HKD 190 million to HKD 227 million, with a profit of HKD 2 million, down from HKD 3 million in 2018, driven by the popularity of new models from Nokia and vivo [13]. - Revenue from IoT solutions decreased by 16% to HKD 52 million due to fewer completed projects, but losses were reduced from HKD 15 million to HKD 10 million thanks to effective cost control measures [14]. - Revenue from long-term construction contracts, primarily from smart home and library RFID automation, was recognized at HKD 17,080,000 for the year ended March 31, 2019 [130]. Assets and Liabilities - Non-current assets totaled HKD 275,347,000, an increase from HKD 268,623,000 in 2018 [147]. - Current assets decreased to HKD 113,036,000 from HKD 140,597,000 in the previous year [147]. - Current liabilities were reduced to HKD 91,980,000, down from HKD 110,692,000 in 2018 [147]. - The company's net asset value was HKD 295,977,000, slightly down from HKD 298,012,000 in the previous year [148]. Cash Flow and Financing - As of March 31, 2019, the group's cash and bank balances were approximately HKD 29 million, compared to HKD 30 million in 2018, while bank borrowings decreased to HKD 71 million from HKD 89 million [17]. - The debt-to-equity ratio improved to 24% from 30% in 2018 [18]. - The net cash used in investing activities was HKD 892,000, a decline from cash generated of HKD 24,457,000 in the previous year [155]. - The company secured bank loans amounting to HKD 15,707,000, down from HKD 27,046,000 in the previous year [155]. Corporate Governance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange listing rules, with some exceptions regarding the roles of the chairman and CEO [41]. - The company confirmed compliance with the standard code of conduct for securities trading by all directors throughout the year ending March 31, 2019 [42]. - The board of directors held a total of 11 meetings during the year, with attendance records showing that all executive directors attended at least 7 out of 11 meetings [46]. - The audit committee conducted two meetings during the year, with all members attending both sessions, ensuring thorough oversight of financial reporting [54]. - The company is committed to maintaining high standards of corporate governance [117]. Employee and Social Responsibility - The group employed approximately 120 staff, with total employee compensation of about HKD 31 million, up from HKD 30 million in 2018 [22]. - Employee turnover rate remained stable at 3% for both 2018 and 2019, with a total workforce of 115 employees across Hong Kong, Mainland China, and Singapore [73]. - Charitable donations amounted to HKD 200,000 in the fiscal year ending March 31, 2019, down from HKD 240,000 in 2018 [87]. - The company has maintained a zero incident rate for fatal or work-related injuries during the reporting period [74]. - The average training provided to each employee was 5 hours, with a tuition reimbursement program for job-related courses [75]. Environmental Impact - The company reported a total electricity consumption of 251,325 kWh in 2019, a slight decrease from 254,752 kWh in 2018, while water consumption decreased from 218 cubic meters in 2018 to 194 cubic meters in 2019 [68]. - The company received an award for excellence at the 2018 Hong Kong Environmental Excellence Awards [67]. - The company has implemented a 4R policy (Reduce, Reuse, Recycle, Replace) to minimize environmental impact [66]. Shareholder Information - The board proposed a final dividend of HKD 0.002 per ordinary share for the year ended March 31, 2019, unchanged from the previous year, subject to shareholder approval [26]. - The company proposed a final dividend of HKD 2,491,000, consistent with the previous year [151]. - The board will consider sufficient cash reserves for future business growth and shareholder returns when proposing dividends [102]. Audit and Compliance - The audit committee reviewed the unaudited interim financial statements for the six months ending September 30, 2018, and the audited financial statements for the year ending March 31, 2019 [30]. - The auditor, Li Tang Chen & Co., is proposed for reappointment at the upcoming annual general meeting [120]. - The auditor's report emphasizes the importance of professional judgment and skepticism in assessing the financial statements [137]. Risk Management - The internal control system was reviewed for effectiveness, focusing on risk assessment and control measures to manage operational risks [57]. - Management's judgment in estimating credit losses and project completion percentages is critical due to inherent uncertainties [132].