[Company Information and Disclaimer](index=1&type=section&id=Company%20Information%20and%20Disclaimer) This section outlines the company's annual results announcement and the disclaimer regarding the content's accuracy and completeness [Company Overview](index=1&type=section&id=Company%20Overview) This report presents the audited annual results announcement for Hong Kong Communications International Holdings Limited (Stock Code: 248) for the year ended March 31, 2025 - Hong Kong Communications International Holdings Limited (Stock Code: 248) released its audited annual results announcement for the year ended March 31, 2025[2](index=2&type=chunk) [Disclaimer](index=1&type=section&id=Disclaimer) Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited disclaim responsibility for this announcement's content, accuracy, or completeness, and any losses arising from its reliance - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the content, accuracy, or completeness of this announcement, and disclaim liability for any losses arising from its reliance[1](index=1&type=chunk) [Consolidated Financial Statements](index=1&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated statement of comprehensive income and financial position, highlighting key financial performance and position changes [Consolidated Statement of Comprehensive Income](index=1&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the year ended March 31, 2025, the company's revenue significantly decreased by 51.47% to HK$'85,561 thousand, gross profit declined by 30.04% to HK$'31,698 thousand, and loss for the year expanded by 21.76% to HK$'26,748 thousand, with basic and diluted loss per share increasing to (2.15) HK cents Consolidated Statement of Comprehensive Income Summary | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 85,561 | 176,302 | -51.47% | | Cost of sales | (53,863) | (130,929) | -58.86% | | Gross profit | 31,698 | 45,373 | -30.04% | | Other income, gains and losses | 782 | 1,818 | -56.99% | | Fair value loss on investment properties | (18,300) | (18,090) | +1.16% | | Loss before tax | (26,748) | (21,992) | +21.63% | | Loss for the year attributable to owners of the Company | (26,748) | (21,968) | +21.76% | | Loss per share – Basic and diluted (HK cents) | (2.15) | (1.76) | +22.16% | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, the Group's total assets and total equity both decreased, with non-current assets falling by 8.9% to HK$'204,374 thousand and current assets by 18.0% to HK$'156,504 thousand, while total equity declined by 10.3% to HK$'217,396 thousand Consolidated Statement of Financial Position Summary | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current assets | 204,374 | 224,332 | -8.90% | | Current assets | 156,504 | 190,853 | -18.00% | | **Liabilities** | | | | | Current liabilities | 143,433 | 172,685 | -16.94% | | Non-current liabilities | 49 | 139 | -64.75% | | **Equity** | | | | | Total equity | 217,396 | 242,361 | -10.30% | [Notes to the Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section details the basis of financial statement preparation, application of new HKFRSs, segment information, and specific financial account analyses [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, presented in HKD under the historical cost convention, with certain financial instruments and investment properties measured at fair value - The financial statements comply with Hong Kong Financial Reporting Standards, Hong Kong Generally Accepted Accounting Principles, and the disclosure requirements of the Companies Ordinance, also adhering to the Listing Rules[6](index=6&type=chunk) - The statements are prepared on a historical cost basis, with certain financial instruments and investment properties measured at fair value, presented in HKD[6](index=6&type=chunk) [Application of New and Revised HKFRSs](index=5&type=section&id=Application%20of%20New%20and%20Revised%20HKFRSs) This year saw the initial application of several revised Hong Kong Financial Reporting Standards, including those for lease liabilities in sale and leaseback transactions, liability classification, non-current liabilities with covenants, and supplier finance arrangements, which the Board assessed to have no material impact on the Group's financial performance or position - This year marks the first application of several revised Hong Kong Financial Reporting Standards, including those for lease liabilities in sale and leaseback transactions, liability classification, non-current liabilities with covenants, and supplier finance arrangements[7](index=7&type=chunk) - The Board expects that the applied and not yet effective new and revised standards will have no material impact on the Group's results and financial position[7](index=7&type=chunk)[8](index=8&type=chunk) [Segment Information](index=6&type=section&id=Segment%20Information) The Group's operating segments are categorized by product and service type, primarily including sales of mobile phones in Hong Kong, sales of IoT solutions in Hong Kong, sales of IoT solutions in Mainland China and Southeast Asia, and property investment, with all assets (except financial assets at fair value through profit or loss) and liabilities (except deferred tax liabilities) allocated to reporting segments - The Group's operating segments are classified by product and service type, encompassing sales of mobile phones in Hong Kong, sales of IoT solutions in Hong Kong, sales of IoT solutions in Mainland China and Southeast Asian countries, and property investment[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) - All assets, except financial assets at fair value through profit or loss, and all liabilities, except deferred tax liabilities, are allocated to the respective reporting segments[11](index=11&type=chunk) [Segment Revenue and Results](index=7&type=section&id=Segment%20Revenue%20and%20Results) In FY2025, external revenue from sales of mobile phones and IoT solutions in Hong Kong significantly decreased, while external revenue from IoT solutions in Mainland China and Southeast Asia slightly declined, and property investment revenue saw a modest increase, with all segments recording losses, and losses for sales of mobile phones in Hong Kong and IoT solutions in Mainland China and Southeast Asia intensifying Segment Revenue and Results Summary | Segment | 2025 External Revenue (HK$'000) | 2024 External Revenue (HK$'000) | YoY Change (%) | 2025 Segment (Loss) Profit (HK$'000) | 2024 Segment (Loss) Profit (HK$'000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Sales of mobile phones in Hong Kong | 5,921 | 29,047 | -79.62% | (4,235) | (5,670) | | Sales of IoT solutions in Hong Kong | 75,018 | 142,859 | -47.49% | 483 | 1,039 | | Sales of IoT solutions in Mainland China and other Southeast Asian countries | 3,129 | 3,168 | -1.23% | (4,126) | 3,688 | | Property investment | 1,493 | 1,228 | +21.58% | (575) | (2,627) | | **Total** | **85,561** | **176,302** | **-51.47%** | **(8,453)** | **(3,570)** | [Geographical Information](index=9&type=section&id=Geographical%20Information) In FY2025, external customer revenue from Hong Kong significantly decreased by 52.24% but remained the primary source of income, while external customer revenue from Mainland China and Singapore both declined, and non-current assets were primarily concentrated in Hong Kong Geographical Information Summary | Region | 2025 External Customer Revenue (HK$'000) | 2024 External Customer Revenue (HK$'000) | YoY Change (%) | 2025 Non-current Assets (HK$'000) | 2024 Non-current Assets (HK$'000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 82,432 | 173,023 | -52.24% | 194,313 | 214,191 | | Mainland China | 1,124 | 581 | +93.46% | 133 | 199 | | Singapore | 2,005 | 2,698 | -25.76% | 151 | 500 | | **Total** | **85,561** | **176,302** | **-51.47%** | **194,597** | **214,890** | [Reconciliation of Segment Profit/Loss and Assets/Liabilities](index=9&type=section&id=Reconciliation%20of%20Segment%20Profit%2FLoss%20and%20Assets%2FLiabilities) In FY2025, the total reported segment loss increased to HK$'8,453 thousand, with fair value loss on investment properties and fair value gains (losses) on financial assets at fair value through profit or loss significantly impacting the consolidated loss before tax, while both total assets and total liabilities decreased Reconciliation of Segment Profit/Loss and Assets/Liabilities Summary | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Total reported segment loss | (8,453) | (3,570) | | Fair value loss on investment properties | (18,300) | (18,090) | | Fair value gains (losses) on financial assets at fair value through profit or loss | 5 | (332) | | **Consolidated loss before tax** | **(26,748)** | **(21,992)** | | Total reported segment assets | 350,603 | 405,345 | | Unallocated corporate assets | 10,275 | 9,840 | | **Consolidated total assets** | **360,878** | **415,185** | | Total reported segment liabilities | 143,433 | 172,775 | | Deferred tax liabilities | 49 | 49 | | **Consolidated total liabilities** | **143,482** | **172,824** | [Major Customer Information](index=10&type=section&id=Major%20Customer%20Information) In FY2025, revenue contribution from Customer A significantly decreased by 70% but remained a major customer, while Customer B emerged as a new major customer, contributing HK$'18,286 thousand in revenue Major Customer Revenue | Customer | 2025 Revenue (HK$'000) | 2024 Revenue (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Customer A | 31,984 | 106,442 | -70.00% | | Customer B | 18,286 | Not applicable | New major customer | - Major customer revenue is derived from the sales of IoT solutions in Hong Kong segment[18](index=18&type=chunk) [Other Income, Gains and Losses](index=10&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) In FY2025, total other income, gains, and losses significantly decreased by 56.99% to HK$'782 thousand, primarily due to a sharp drop in dividend income from HK$'1,378 thousand to HK$'3 thousand, while government grants slightly increased Other Income, Gains and Losses Summary | Item | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Bank interest income | 453 | 491 | -7.74% | | Dividend income | 3 | 1,378 | -99.78% | | Loss on disposal of property, plant and equipment | (119) | (54) | +120.37% | | Exchange gains (losses) | 215 | (80) | From loss to gain | | Government grants | 47 | 31 | +51.61% | | **Total** | **782** | **1,818** | **-56.99%** | [Finance Costs](index=11&type=section&id=Finance%20Costs) In FY2025, total finance costs decreased by 28.05% to HK$'6,972 thousand, mainly attributable to a significant reduction in interest on bank borrowings Finance Costs Summary | Item | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank borrowings | 6,484 | 9,373 | -30.82% | | Interest on lease liabilities | 23 | 12 | +91.67% | | Bank charges | 465 | 305 | +52.46% | | **Total** | **6,972** | **9,690** | **-28.05%** | [Loss Before Tax](index=11&type=section&id=Loss%20Before%20Tax) In FY2025, the loss before tax expanded to HK$'26,748 thousand, with total staff costs slightly decreasing but inventory write-downs significantly increasing Loss Before Tax Components | Item | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Auditor's remuneration | 620 | 703 | -11.81% | | Depreciation | 1,984 | 1,931 | +2.75% | | Total staff costs | 21,136 | 22,758 | -7.13% | | Write-down of inventories | 212 | 18 | +1077.78% | | Net rental income from investment properties under operating leases | (716) | (483) | +48.24% | - Inventory write-downs significantly increased to **HK$'212 thousand**, primarily due to certain inventories no longer being suitable for use[19](index=19&type=chunk) [Taxation](index=12&type=section&id=Taxation) No assessable profits were generated in FY2025 and FY2024, thus no provision was made for Hong Kong Profits Tax, PRC Enterprise Income Tax, Singapore Corporate Tax, or Thailand Corporate Tax - The Group had no assessable profits in Hong Kong, Mainland China, Singapore, or Thailand, hence no tax provision was made[20](index=20&type=chunk)[21](index=21&type=chunk) - Hong Kong Profits Tax operates under a two-tiered system, with the first HK$'2 million of assessable profits taxed at 8.25% and the remainder at 16.5%[20](index=20&type=chunk) [Loss Per Share](index=13&type=section&id=Loss%20Per%20Share) The basic and diluted loss per share for FY2025 was (2.15) HK cents, an increase from (1.76) HK cents in FY2024, with unexercised share options having an anti-dilutive effect and thus not included in the diluted loss per share calculation due to the net loss recorded Loss Per Share Details | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the Company (HK$'000) | (26,748) | (21,968) | | Weighted average number of ordinary shares (shares) | 1,245,331,256 | 1,245,331,256 | | Basic and diluted loss per share (HK cents) | (2.15) | (1.76) | - Unexercised share options were not included in the diluted loss per share calculation due to their anti-dilutive effect[23](index=23&type=chunk) [Dividends](index=13&type=section&id=Dividends) No dividends were paid or proposed for the year ended March 31, 2025, or after the reporting period - No dividends were paid or proposed for FY2025 or after the reporting period[24](index=24&type=chunk) [Contract Assets](index=13&type=section&id=Contract%20Assets) As of March 31, 2025, total contract assets amounted to HK$'104,324 thousand, a 12.74% decrease from 2024, primarily stemming from smart system construction services, with a slight reduction in loss allowance Contract Assets Summary | Item | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Smart system construction services | 106,270 | 121,735 | -12.71% | | Less: Loss allowance | (1,946) | (2,182) | -10.82% | | **Total** | **104,324** | **119,553** | **-12.74%** | [Trade Receivables and Ageing Analysis](index=14&type=section&id=Trade%20Receivables%20and%20Ageing%20Analysis) As of March 31, 2025, total trade receivables significantly decreased by 41.85% to HK$'13,838 thousand compared to 2024, with an average credit period of 7 days to 1 month, though longer terms are granted to customers with good credit, and receivables over 365 days increased significantly Trade Receivables Summary | Item | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Gross trade receivables | 15,056 | 25,056 | -39.99% | | Less: Loss allowance | (1,218) | (1,260) | -3.33% | | **Net amount** | **13,838** | **23,796** | **-41.85%** | Trade Receivables Ageing Analysis | Ageing | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Within 30 days | 9,069 | 19,085 | -52.58% | | 31 to 60 days | 864 | 670 | +28.96% | | 61 to 90 days | 833 | 2,560 | -67.46% | | 91 to 180 days | 102 | 1,057 | -90.35% | | 181 to 365 days | 1,012 | 400 | +153.00% | | Over 365 days | 3,176 | 1,284 | +147.35% | - The average credit period ranges from **7 days to 1 month**, with longer credit terms offered to customers with good credit standing[27](index=27&type=chunk) [Trade Payables, Accruals and Other Payables and Ageing Analysis](index=15&type=section&id=Trade%20Payables%2C%20Accruals%20and%20Other%20Payables%20and%20Ageing%20Analysis) As of March 31, 2025, total trade payables increased by 43.01% to HK$'3,091 thousand compared to 2024, while accruals and deposits received significantly decreased, and the average credit period for product purchases is 30 to 60 days Trade Payables, Accruals and Other Payables Summary | Item | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 3,091 | 2,160 | +43.01% | | Accruals and deposits received | 1,242 | 5,481 | -77.31% | | **Total** | **4,333** | **7,641** | **-43.29%** | Trade Payables Ageing Analysis | Ageing | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | 0 to 30 days | 1,873 | 943 | +98.62% | | 31 to 60 days | 284 | 187 | +51.87% | | 61 to 90 days | 1 | 155 | -99.35% | | Over 90 days | 933 | 875 | +6.63% | - The average credit period for product purchases is **30 to 60 days**, with the Group implementing financial risk management policies to ensure timely settlement[30](index=30&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's financial performance, segment analysis, future outlook, and details on liquidity, capital, and human resources [Overall Performance Review](index=16&type=section&id=Overall%20Performance%20Review) In FY2025, turnover decreased by 51% year-on-year to HK$'86,000 thousand, and loss attributable to owners of the Company expanded to HK$'27,000 thousand, primarily due to reduced revenue and gross profit Overall Performance Summary | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Turnover | 86,000 | 176,000 | -51.14% | | Loss attributable to owners of the Company | 27,000 | 22,000 | +22.73% | - The increase in loss is primarily attributed to a decline in revenue and gross profit[31](index=31&type=chunk) [Segment Performance Analysis](index=16&type=section&id=Segment%20Performance%20Analysis) All major business segments faced challenges in FY2025, with sales of mobile phones and IoT solutions experiencing significant turnover declines and recording losses, while property investment, despite increased rental income, remained in a loss-making state - All major business segments faced challenges, with a general decline in turnover and expanding losses[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) [Sales of Mobile Phones](index=16&type=section&id=Sales%20of%20Mobile%20Phones) In FY2025, turnover from sales of mobile phones significantly decreased by 79.31% to HK$'6,000 thousand due to weak demand, resulting in a segment loss of HK$'4,000 thousand Sales of Mobile Phones Performance | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Turnover | 6,000 | 29,000 | -79.31% | | Segment loss | 4,000 | 6,000 | -33.33% | - Weak demand led to a significant decline in turnover from sales of mobile phones[32](index=32&type=chunk) [Sales of IoT Solutions](index=16&type=section&id=Sales%20of%20IoT%20Solutions) In FY2025, turnover from IoT solutions decreased by 46.58% to HK$'78,000 thousand, with the segment turning from profit to a loss of HK$'4,000 thousand Sales of IoT Solutions Performance | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Turnover | 78,000 | 146,000 | -46.58% | | Segment (loss) profit | (4,000) | 5,000 | From profit to loss | [Property Investment](index=16&type=section&id=Property%20Investment) In FY2025, property investment rental income grew by 25% to HK$'1,500 thousand, but the segment still recorded a loss of HK$'600 thousand, which was a narrower loss compared to the previous year Property Investment Performance | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Rental income | 1,500 | 1,200 | +25.00% | | Segment loss | 600 | 2,600 | -76.92% | [Outlook](index=16&type=section&id=Outlook) The Group anticipates continued weakness in the mobile phone business due to declining demand, ongoing market uncertainty for IoT solutions necessitating strict cost controls, and pressure on occupancy rates and rental income in the property investment segment from weak leasing market demand - The mobile phone business is expected to remain weak due to an overall decline in demand[35](index=35&type=chunk) - Market uncertainty for IoT solutions persists, and the Group will implement strict cost controls[35](index=35&type=chunk) - The property investment segment faces pressure on occupancy rates and rental income due to weak demand in the leasing market[36](index=36&type=chunk) [Liquidity and Financial Resources](index=16&type=section&id=Liquidity%20and%20Financial%20Resources) As of March 31, 2025, cash and bank balances decreased to HK$'12,000 thousand, and bank borrowings fell to HK$'133,000 thousand, with the Board confident that the Group possesses sufficient cash balances and bank facilities to meet operational needs Liquidity and Financial Resources Summary | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cash and bank balances | 12,000 | 25,000 | -52.00% | | Bank borrowings | 133,000 | 159,000 | -16.35% | - The Board believes the Group has sufficient cash balances and bank facilities to meet its commitments and working capital requirements[37](index=37&type=chunk) [Gearing Ratio](index=16&type=section&id=Gearing%20Ratio) As of March 31, 2025, the gearing ratio (total borrowings as a percentage of shareholders' equity) decreased to 61% from 66% in 2024 Gearing Ratio Summary | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Gearing ratio | 61% | 66% | [Capital Structure](index=17&type=section&id=Capital%20Structure) There were no changes in the Group's capital structure for the year ended March 31, 2025 - The Group's capital structure remained unchanged in FY2025[39](index=39&type=chunk) [Capital Expenditure](index=17&type=section&id=Capital%20Expenditure) During the year, the Group's capital expenditure on property, plant, and equipment amounted to HK$'100 thousand Capital Expenditure Summary | Item | 2025 (HK$'000) | | :--- | :--- | | Capital expenditure on property, plant and equipment | 100 | [Employees](index=17&type=section&id=Employees) As of March 31, 2025, the Group's total number of employees decreased to 83 (2024: 100), and total employee remuneration (excluding directors' emoluments) decreased to HK$'17,000 thousand, with the Group maintaining good relations with its employees Employee Statistics | Indicator | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total number of employees | 83 | 100 | -17.00% | | Total employee remuneration (HK$'000) | 17,000 | 18,000 | -5.56% | - Employee remuneration and bonuses are determined based on individual merit and performance, reviewed at least annually[41](index=41&type=chunk) [Share Option Scheme](index=17&type=section&id=Share%20Option%20Scheme) The share option scheme, adopted on August 26, 2022, aims to incentivize directors and eligible employees and is set to expire on August 26, 2032, with the number of unexercised share options decreasing to 73,992,000 shares, representing 6% of issued shares, as of March 31, 2025 - The share option scheme aims to incentivize directors and eligible employees, valid until August 26, 2032[42](index=42&type=chunk) Share Option Scheme Details | Indicator | March 31, 2025 | March 31, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Number of unexercised share options | 73,992,000 | 88,280,000 | -16.18% | | Percentage of issued shares | 6% | 7% | -1% | [Pledge of Assets](index=17&type=section&id=Pledge%20of%20Assets) As of March 31, 2025, the Group's general banking facilities were secured by leasehold land and buildings, investment properties, bank deposits, and financial assets at fair value through profit or loss Pledged Assets | Type of Pledged Asset | 2025 Carrying/Fair Value (HK$'000) | 2024 Carrying/Fair Value (HK$'000) | | :--- | :--- | :--- | | Leasehold land and buildings | 46,691 | 47,783 | | Investment properties | 146,900 | 165,200 | | Bank deposits | 2,765 | 2,765 | | Financial assets at fair value through profit or loss | 9,340 | 9,206 | [Foreign Exchange Fluctuations](index=17&type=section&id=Foreign%20Exchange%20Fluctuations) The Group's assets, liabilities, income, and expenses are primarily denominated in HKD, RMB, and SGD, and while not exposed to significant foreign currency exchange rate fluctuation risks, it does not engage in hedging or financial derivative instruments but closely monitors financial markets - The Group's assets, liabilities, and operating activities primarily involve HKD, RMB, and SGD[44](index=44&type=chunk) - The Group is not exposed to significant foreign currency exchange rate fluctuation risks and does not engage in hedging or financial derivative instruments[44](index=44&type=chunk) [Contingent Liabilities](index=18&type=section&id=Contingent%20Liabilities) As of March 31, 2025, the Company provided corporate guarantees of HK$'138,000 thousand for general banking facilities granted to its subsidiaries, an amount consistent with the previous year Contingent Liabilities Summary | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Corporate guarantees | 138,000 | 138,000 | [Other Information](index=18&type=section&id=Other%20Information) This section covers corporate governance, auditor's review, compliance, share transactions, and arrangements for the Annual General Meeting [Closure of Register of Members](index=18&type=section&id=Closure%20of%20Register%20of%20Members) The Company's register of members will be closed from August 27 to August 29, 2025, to determine eligibility for attending and voting at the Annual General Meeting - The register of members will be closed from August 27 to August 29, 2025, to determine eligibility for voting at the Annual General Meeting[46](index=46&type=chunk) [Corporate Governance](index=18&type=section&id=Corporate%20Governance) The Group complied with the Corporate Governance Code set out in Appendix 14 of the Listing Rules in FY2025, with exceptions noted for the Chairman and Chief Executive Officer being the same person and two independent non-executive directors' absence from the 2024 Annual General Meeting, though the Board believes the combined role provides strong and consistent leadership - The Group complied with the Corporate Governance Code, with exceptions for the Chairman and Chief Executive Officer being the same person and two independent non-executive directors' absence from the Annual General Meeting[47](index=47&type=chunk) - The Board believes that the arrangement of having the Chairman and Chief Executive Officer as the same person provides strong and consistent leadership[47](index=47&type=chunk) [Independent Auditor's Review](index=18&type=section&id=Independent%20Auditor's%20Review) The auditor, Shinewing (HK) CPA Limited, has reconciled the financial figures in the preliminary announcement with the audited consolidated financial statements, but their work does not constitute an assurance engagement, and thus no assurance opinion is expressed - The auditor has reconciled the financial figures in the preliminary announcement with the audited statements but does not express an assurance opinion[48](index=48&type=chunk) [Compliance with Model Code](index=19&type=section&id=Compliance%20with%20Model%20Code) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix 10 of the Listing Rules, and all Directors confirmed compliance with the Code during FY2025 - The Company adopted the Model Code in Appendix 10 of the Listing Rules, and all Directors confirmed compliance[49](index=49&type=chunk) [Audit Committee](index=19&type=section&id=Audit%20Committee) The Audit Committee has reviewed the interim and annual consolidated financial statements and discussed the audit plan, accounting policies, and financial reporting matters with management and external auditors - The Audit Committee reviewed the financial statements and discussed the audit plan, accounting policies, and financial reporting matters[50](index=50&type=chunk) [Share Transactions](index=19&type=section&id=Share%20Transactions) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares during FY2025 - Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed shares during FY2025[51](index=51&type=chunk) [Acknowledgements](index=19&type=section&id=Acknowledgements) The Board extends its sincere gratitude to the shareholders, business partners, and all management and staff of the Group - The Board expresses its sincere gratitude to shareholders, business partners, and all staff for their contributions and support[52](index=52&type=chunk) [Annual General Meeting and Despatch of Annual Report](index=19&type=section&id=Annual%20General%20Meeting%20and%20Despatch%20of%20Annual%20Report) The Annual General Meeting is scheduled for August 29, 2025, with the annual report and notice of meeting to be published on the Company's and HKEX websites and dispatched to shareholders in due course - The Annual General Meeting is scheduled for August 29, 2025, and the annual report and notice of meeting will be published on the Company's and HKEX websites[53](index=53&type=chunk) [Board of Directors](index=19&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors comprises 7 executive directors and 4 independent non-executive directors, with Mr. Chan Chung Yee as Chairman - The Board of Directors consists of **7 executive directors** and **4 independent non-executive directors**, with Mr. Chan Chung Yee serving as Chairman[54](index=54&type=chunk)[55](index=55&type=chunk)

Core Viewpoint - Chengdu Xinzhu Road & Bridge Machinery Co., Ltd. (Xinzhu Co.) has resumed trading after a 10-day suspension, opening with a price of 7.19 yuan per share, reflecting a 9.94% increase [1]. Group 1: Major Asset Transactions - Xinzhu Co. announced a significant asset sale and related transactions, including the sale of 100% equity in Sichuan Development Maglev Technology Co., Ltd. and other related assets to Sichuan Shudao Rail Transit Group [2]. - The company plans to sell 100% equity in Chengdu Xinzhu Transportation Technology Co., Ltd. to Sichuan Road and Bridge Construction Group, along with other related assets and liabilities [2]. - Xinzhu Co. will issue shares and pay cash to acquire 60% equity in Sichuan Shudao Clean Energy Group, with the transaction expected to constitute a major asset restructuring and related party transaction [2]. Group 2: Strategic Focus and Financial Improvement - The company aims to strategically exit the maglev and bridge component businesses, focusing on clean energy generation, which is expected to improve operational conditions and enhance sustainable growth potential [3]. - Shudao Clean Energy, now a subsidiary, specializes in clean energy projects, including hydropower, wind power, and solar energy, with a total installed capacity of 11.5 million kilowatts [3]. - The restructuring is anticipated to concentrate resources on core competencies, allowing Xinzhu Co. to leverage Shudao Clean Energy's market share and customer base for growth in the clean energy sector [4]. Group 3: Fundraising and Future Prospects - Xinzhu Co. plans to issue shares to no more than 35 qualified investors to raise funds not exceeding 100% of the transaction price for asset acquisition, with a maximum of 30% of total shares post-transaction [4]. - The raised funds will be allocated for cash payments, taxes, intermediary fees, project construction, and debt repayment [4]. - Analysts suggest that the strategic restructuring will enhance financial conditions, market competitiveness, and corporate governance, positioning the company for a successful transformation and broader development prospects [4].

Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 48,130,000, a decrease of 52.6% compared to HKD 101,526,000 for the same period in 2023[2] - Gross profit for the same period was HKD 18,808,000, down 6.6% from HKD 20,138,000 year-on-year[2] - The company reported a loss attributable to equity holders of HKD 3,064,000, compared to a loss of HKD 648,000 in the previous year[4] - The revenue from mobile phone sales in Hong Kong was HKD 3,150,000, while IoT solutions sales in Hong Kong reached HKD 43,008,000[15] - The report showed a loss of HKD 3,032,000 for the reporting segments, compared to a loss of HKD 524,000 in the previous year[22] - The company's revenue for the six months ended September 30, 2024, was HKD 48,000,000, a decrease of approximately 53% compared to HKD 102,000,000 for the same period last year[50] - The loss attributable to equity holders for the period was HKD 3,100,000, compared to a loss of HKD 600,000 for the same period in 2023[50] - Revenue from mobile phone sales decreased by 84% to HKD 3,000,000, primarily due to weak market demand and the closure of the AEON department store counters[51] - Revenue from IoT solutions was HKD 44,000,000, down from HKD 82,000,000, resulting in a loss of HKD 600,000 compared to a profit of HKD 1,700,000 in the previous year[52] - Rental income from property investment increased by HKD 300,000 to HKD 800,000, but the segment recorded a loss of HKD 1,800,000, up from HKD 1,200,000 due to increased financial costs from bank loans[53] Assets and Liabilities - Total assets as of September 30, 2024, were HKD 400,426,000, a slight increase from HKD 400,185,000 as of March 31, 2024[6] - Current assets decreased to HKD 160,622,000 from HKD 190,853,000, reflecting a decline of 15.8%[6] - The company’s cash and bank balances decreased to HKD 15,657,000 from HKD 22,699,000, a reduction of 30.9%[6] - The net current asset value was HKD 15,028,000, down from HKD 18,168,000, indicating a decline of 17.8%[8] - Total assets as of September 30, 2024, amounted to HKD 374,650,000, down from HKD 405,345,000 as of March 31, 2024[25] - Total liabilities were HKD 145,907,000, a decrease from HKD 172,775,000 as of March 31, 2024[25] - The company's total bank borrowings were HKD 132,000,000, compared to HKD 159,000,000 as of March 31, 2024[56] - The asset-to-equity ratio improved to 55% from 66% as of March 31, 2024, indicating a reduction in total borrowings relative to total equity[56] Costs and Expenses - The company’s financing costs decreased to HKD 3,713,000 from HKD 5,910,000, a reduction of 37.4%[2] - Financing costs for the period were HKD 3,713,000, compared to HKD 5,910,000 in the previous year[27] - Depreciation expenses totaled HKD 479,000 for the six months ended September 30, 2024[27] - The company recognized government grants of HKD 26,000 during the period, down from HKD 52,000 in the previous year[27] - The company reported a fair value loss of HKD 86,000 in foreign exchange for the period[27] Equity and Shareholder Information - The company’s total equity as of September 30, 2024, was HKD 239,470,000, a decrease from HKD 242,361,000 as of March 31, 2024[8] - The company has granted unexercised share options involving 88,280,000 shares, representing 7% of the total issued shares as of September 30, 2024[59] - The company has provided corporate guarantees amounting to HKD 130,000,000 as of September 30, 2024, down from HKD 138,000,000 as of March 31, 2024[61] Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[64] - The audit committee reviewed the accounting policies and discussed internal controls and financial reporting matters for the six months ended September 30, 2024[66] - The interim report containing all required information will be sent to shareholders and published on the company's website and the Hong Kong Stock Exchange's website[69] Employment and Staff - The company employed approximately 109 staff as of September 30, 2024, compared to 100 staff as of March 31, 2024, with total employee costs remaining at HKD 7,000,000[58]

Financial Performance - The group's revenue increased by 4% to HKD 176 million for the year ended March 31, 2024, compared to HKD 170 million in the previous year[12]. - The sales of mobile phones decreased significantly from HKD 75 million to HKD 29 million, resulting in a loss of HKD 6 million[13]. - Revenue from IoT solutions rose from HKD 93 million to HKD 146 million, with a profit of HKD 5 million compared to a loss of HKD 7 million in the previous year[14]. - Rental income from property investments decreased from HKD 1.9 million to HKD 1.2 million, leading to a loss of HKD 3 million[15]. - The company reported a pre-tax loss of HKD 21,992,000, compared to a loss of HKD 19,568,000 in 2023, indicating a deterioration in performance[159]. - The company reported a loss attributable to owners of HKD 21,968,000 for the year ending March 31, 2024, compared to a loss of HKD 19,568,000 in the previous year, representing an increase in loss of approximately 7.1%[166]. - Total comprehensive income for the year was HKD (22,024,000), which includes other comprehensive expenses of HKD (56,000) compared to HKD (18,304,000) in the previous year[166]. - The company experienced a pre-tax loss of HKD 21,992,000, which is an increase from HKD 19,568,000 in the prior year, indicating a worsening operational performance[168]. Cash Flow and Liquidity - As of March 31, 2024, the group's cash and bank balances were approximately HKD 25 million, down from HKD 38 million the previous year, with bank borrowings increasing to HKD 159 million[17]. - Cash and bank balances decreased to HKD 22,699,000 from HKD 35,463,000, indicating a decline in liquidity[161]. - The company reported a decrease in cash and cash equivalents at year-end to HKD 1,510,000 from HKD 14,426,000 in the previous year, reflecting liquidity challenges[171]. - Cash flow from operating activities showed a net outflow of HKD 34,926,000, an improvement from the previous year's outflow of HKD 45,861,000[171]. - The company generated a net cash inflow from investing activities of HKD 20,191,000, a significant recovery from a net outflow of HKD 6,424,000 in the previous year[171]. - New bank loans obtained amounted to HKD 144,973,000, compared to HKD 92,400,000 in the previous year, indicating increased financing activity[171]. Corporate Governance - The board consists of six executive directors and four independent non-executive directors, ensuring a diverse governance structure[42]. - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange regulations, with some exceptions noted[40]. - The company is committed to improving corporate governance practices and ensuring proper oversight of business activities and decision-making processes[40]. - The company secretary ensures accurate communication of information within the board and provides necessary support for compliance with applicable laws and regulations[45]. - The company has implemented a standard code of conduct for securities trading by directors, confirming compliance throughout the fiscal year[41]. - The board will provide training for newly appointed directors to ensure they are well-versed in the company's policies and relevant regulations[42]. - The board held a total of 11 meetings this year, with all executive directors attending at least 8 out of 11 meetings[46]. - The audit committee held 2 meetings during the year, with all members attending both sessions[59]. - The remuneration committee met once this year to assess the performance of executive directors and determine their compensation policies[51]. - The nomination committee, consisting of three independent non-executive directors, also held one meeting this year[57]. - The company has established a whistleblowing policy for employees to report suspected violations and concerns related to operations or finances[92]. - The board of directors includes a mix of executive and independent non-executive members, ensuring governance and oversight[116]. Employee and Talent Management - The group employed 100 staff members, with total employee compensation amounting to HKD 18 million, up from HKD 17 million the previous year[22]. - The company is focused on talent development and employee engagement, with dedicated efforts in human resources management[38]. - Employee turnover rate rose to 5% in 2024, compared to 3% in 2023[83]. - The company provided an average of 5 hours of training per employee during the reporting period[85]. Environmental and Social Responsibility - The company achieved Hong Kong Green Organization certification at the excellent level for waste reduction and good level for energy saving[74]. - The company has maintained a commitment to corporate social responsibility, receiving the "15 Years Plus Caring Company" logo from the Hong Kong Council of Social Service[96]. - The company has been a corporate sponsor of the "30 Hour Famine" event organized by World Vision Hong Kong since 2010[97]. - The company has no significant impact on the environment and natural resources from its operations[77]. - There were no fatal or work-related injury cases reported during the reporting period[84]. - The company made donations totaling HKD 250,000 during the review year[113]. Financial Position and Assets - Total assets decreased to HKD 433,185,000 from HKD 428,496,000 in the previous year, reflecting a slight decline[161]. - Current liabilities increased to HKD 172,685,000 from HKD 164,118,000, indicating a rise in short-term obligations[161]. - The net asset value decreased to HKD 242,361,000 from HKD 263,328,000, showing a reduction in equity[163]. - The company recognized a fair value loss on investment properties of HKD 18,090,000, compared to HKD 9,621,000 in 2023, highlighting increased market challenges[159]. - The total fair value of the group's investment properties as of March 31, 2024, is approximately HKD 165,200,000, with a fair value impairment recognized in the comprehensive income statement amounting to HKD 18,090,000 for the fiscal year[141]. Accounting and Financial Reporting - The financial statements are prepared based on historical cost, except for investment properties and financial instruments measured at fair value[184]. - The company confirms the recognition of right-of-use assets and corresponding lease liabilities for all leases, excluding short-term leases and low-value asset leases[193]. - The company assesses whether contracts are leases at the commencement date, ensuring compliance with the Hong Kong Financial Reporting Standards[192]. - The company will recognize lease liabilities at the present value of unpaid lease payments at the lease commencement date[196]. - Lease liabilities are presented as a separate item in the consolidated statement of financial position, reflecting interest and lease payments[197]. - The company applies HKAS 36 to determine if right-of-use assets are impaired and to account for any identified impairment losses[200].

[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]