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

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

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

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

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

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

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

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

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

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].