[Company Overview](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E8%A7%88) [Company Information](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section provides fundamental information about Tai Hing Group Holdings Limited, including its board of directors, committee members, principal bankers, registered office, share registrar, company secretary, auditors, and legal advisors - The company's board of directors is co-chaired and co-managed by Ms. Chan Yan Wai and Mr. Chan Yan Lun, with three committees: Audit, Remuneration, and Nomination[4](index=4&type=chunk) [Chairman's Statement](index=3&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A%E6%9B%B8) The Chairman's Statement reviews the Group's financial performance for the year ended March 31, 2025, noting reduced revenue due to lower rents and higher vacancy rates, and a loss attributable to shareholders primarily from a decrease in investment property fair value, while proposing dividends and outlining a cautious outlook for the challenging macroeconomic environment and Hong Kong property market [Financial Results and Dividends](index=4&type=section&id=%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE%E8%88%87%E8%82%A1%E6%81%AF) For the year ended March 31, 2025, the Group's revenue decreased by 10% year-on-year to HKD 50.4 million, mainly due to lower rents from renewed leases and a slight increase in vacancy rates, resulting in a loss attributable to shareholders of HKD 54.5 million, primarily due to a decrease in investment property fair value; the Board recommends a final dividend of HKD 1.4 cents per share, bringing the total annual dividend to HKD 1.7 cents per share 2025 Fiscal Year Key Performance Indicators | Indicator | Amount | YoY Change | | :--- | :--- | :--- | | Revenue | HKD 50.4 million | -10% | | Loss Attributable to Shareholders | HKD 54.5 million | - | | Loss Per Share | HKD 19.6 cents | - | | Total Annual Dividend | HKD 1.7 cents per share | - | - The decrease in revenue was primarily due to lower rents from renewed property leases and a slight increase in vacancy rates[6](index=6&type=chunk) - The annual loss was mainly attributable to the decrease in the fair value of the Group's investment properties compared to the previous year[6](index=6&type=chunk) [Business Outlook](index=5&type=section&id=%E6%A5%AD%E5%8B%99%E5%B1%95%E6%9C%9B) Looking ahead, the global economic outlook remains uncertain due to trade tensions, inflation, and geopolitical factors, while Hong Kong's economic recovery is slower than expected, with the office and retail leasing markets facing challenges from weak demand and oversupply; despite this, support measures from mainland China and Hong Kong governments offer hope, and the Group remains cautiously optimistic about Hong Kong's long-term market, prioritizing cost control, maintaining ample cash, and extremely low debt levels to navigate economic uncertainties - Hong Kong's office and retail leasing markets face challenges from weak demand and an oversupply of new space, coupled with high borrowing costs, geopolitical instability, and changes in consumer spending patterns, leading to declines in rental income and property values[10](index=10&type=chunk) - Mainland China and Hong Kong governments have introduced a series of support measures, such as promoting Hong Kong as a "preferred hub for mega events" and expanding the Individual Visit Scheme, aiming to boost market confidence and support the local economy[10](index=10&type=chunk) - The Group adopts a cautious approach, prioritizing cost control and sustainable development, and is well-positioned to mitigate the impact of a potential economic slowdown with ample net cash balance, extremely low debt levels, and stable investment income[11](index=11&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides an in-depth analysis of the Group's financial and business performance, highlighting a decline in revenue and an expanded loss primarily due to a significant decrease in investment property fair value, while maintaining robust liquidity; it also reviews core business segments of property investment and financial investment, noting a decrease in property portfolio value and a significant increase in securities investment, and outlines the Group's business, operational, and financial risks along with corresponding management strategies [Financial Review](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) In the current fiscal year, the Group's property investment revenue decreased to HKD 50.4 million, and the loss attributable to shareholders expanded to HKD 54.5 million, primarily due to a significant decrease of HKD 91.1 million in the fair value of investment properties; despite this, the Group's net current assets remained at HKD 276.9 million, with low debt levels and a stable financial position, while finance costs decreased by 11.6% due to a reduction in bank loan principal 2025 Fiscal Year Financial Summary | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | HKD 50.4 million | HKD 56.0 million | | Annual Loss Attributable to Shareholders | HKD 54.5 million | HKD 9.8 million | | Basic Loss Per Share | HKD 19.6 cents | HKD 3.5 cents | | Net Asset Value Per Share | HKD 9.1 | HKD 9.3 | - The expanded loss attributable to shareholders was primarily due to a larger decrease in the fair value of investment properties (HKD 91.1 million), reduced rental income, and a shift from a net reversal of impairment losses on debt instruments in the prior year to an impairment loss in the current year[23](index=23&type=chunk) - As of March 31, 2025, the Group's net current assets amounted to HKD 276.9 million, bank borrowings were HKD 41.7 million, and it maintained a significant net cash balance[22](index=22&type=chunk)[24](index=24&type=chunk) [Business Review](index=9&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's core businesses are property investment and financial investment; in property, the investment property portfolio, primarily located in Hong Kong, decreased in fair value by HKD 91.5 million to HKD 1,937.9 million during the year, with no acquisitions or disposals; in financial investment, the securities and treasury products portfolio increased to HKD 127.9 million, with a significant increase in listed equity investments; the number of employees slightly increased to 18, while total costs decreased - The investment property portfolio value decreased to **HKD 1,937.9 million**, primarily due to a reduction in the fair value of properties in Tsim Sha Tsui and Sheung Wan, with no property transactions during the year[34](index=34&type=chunk) - The securities investment and treasury products portfolio increased to **HKD 127.9 million**, with listed equity investments significantly rising from **HKD 9.3 million** to **HKD 94.9 million**, while debt securities decreased from **HKD 63.7 million** to **HKD 33.0 million**[34](index=34&type=chunk) Employee Information | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Total Employees | 18 persons | 16 persons | | Total Employee Costs | HKD 25.9 million | HKD 27.7 million | [Our Risk Profile](index=10&type=section&id=%E6%88%91%E5%80%91%E7%9A%84%E9%A2%A8%E9%9A%AA%E7%8B%80%E6%B3%81) The Group categorizes risks into business, operational, and financial risks; business risks are managed by maintaining property competitiveness; operational risks are controlled through sound internal controls; and details of financial risk management (including market, credit, and liquidity risks) are elaborated in the notes to the financial statements - Business risk management: Closely monitor market trends and ensure properties remain competitive, safe, and of high quality through regular maintenance and renovation[35](index=35&type=chunk) - Operational risk management: Reduce and control losses arising from internal procedures, human error, systems, or external events by establishing sound internal controls, clearly defined authorities, proper segregation of duties, and effective reporting systems[36](index=36&type=chunk) - Financial risk management: Includes market risks (equity, interest rate, foreign exchange), credit risk, and liquidity risk, with detailed discussions in Note 32(b) to the consolidated financial statements[37](index=37&type=chunk) [Profile of Directors and Senior Management](index=10&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E4%BA%BA%E5%93%A1%E7%B0%A1%E4%BB%8B) This section provides detailed background information on the company's executive and independent non-executive directors, including their age, education, professional experience, tenure within the Group, and relationships with other directors, highlighting the board members' extensive experience across real estate, finance, engineering, and management [Executive Directors](index=11&type=section&id=%E5%9F%B7%E8%A1%8C%E8%91%A3%E4%BA%8B) Executive directors include Co-Chairperson and Co-Managing Director Ms. Chan Yan Wai and Mr. Chan Yan Lun, as well as Mr. Chan Yan Tin; they are all children of the Group's founder, Mr. Chan Hoi Sau, hold key management positions within the Group, and possess extensive experience in real estate, corporate finance, and investment management - Ms. Chan Yan Wai, **60 years old**, has served the Group since 2002 and currently holds the positions of Co-Chairperson and Co-Managing Director, responsible for operations and corporate functions[39](index=39&type=chunk) - Mr. Chan Yan Lun, **55 years old**, possesses over 30 years of experience in corporate finance, investment management, and engineering, and currently serves as Co-Chairperson and Co-Managing Director[40](index=40&type=chunk) - Mr. Chan Yan Tin, **61 years old**, has served as an Executive Director since 2004 and has extensive experience in construction, property investment, and development[41](index=41&type=chunk) [Independent Non-Executive Directors](index=12&type=section&id=%E7%8D%A8%E7%AB%8B%E9%9D%9E%E5%9F%B7%E8%A1%8C%E8%91%A3%E4%BA%8B) Independent non-executive directors include Mr. Chan Kwok Wai, Mr. Tse Lai Hang, and Ms. Cheung Chung Wai; they possess deep professional backgrounds in financial accounting, civil engineering, and procurement finance, respectively, providing independent professional advice to the board and serving as chairpersons or members of the Audit, Remuneration, and Nomination Committees - Mr. Chan Kwok Wai, **66 years old**, is a member of CPA Australia with extensive experience in the finance and accounting industry, serving as Chairman of the Audit, Remuneration, and Nomination Committees[42](index=42&type=chunk) - Mr. Tse Lai Hang, **60 years old**, holds a Master's degree in Civil Engineering and has extensive experience in construction and property development[43](index=43&type=chunk) - Ms. Cheung Chung Wai, **58 years old**, holds an MBA and possesses over 30 years of experience in leading complex procurement and financing projects[44](index=44&type=chunk) [Corporate Governance Report](index=12&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%A0%B1%E5%91%8A%E6%9B%B8) This report outlines the company's corporate governance practices during the reporting period, confirming compliance with all applicable code provisions of the Corporate Governance Code, except for the deviation where the roles of Chairman and Chief Executive Officer are held by the same individuals; it details the board's structure and operations, the responsibilities and work of specialized committees (Audit, Remuneration, Nomination), the risk management and internal control systems, and communication policies with shareholders, demonstrating the company's commitment to maintaining high standards of corporate governance for enhanced transparency and accountability [Board and Committees](index=14&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E8%88%87%E5%A7%94%E5%93%A1%E6%9C%83) The Board of Directors, comprising three executive and three independent non-executive directors, is responsible for formulating the Group's strategy; during the reporting period, the roles of Chairman and Chief Executive Officer were held by the Co-Chairpersons and Co-Managing Directors, constituting a deviation from the Code, though the Board believes this structure facilitates efficient leadership; the company has established Audit, Remuneration, and Nomination Committees, all chaired by independent non-executive directors, to fulfill oversight functions, and the report also discloses the board diversity policy and directors' attendance at meetings - The company deviates from Code Provision C.2.1 of the Corporate Governance Code, as the roles of Chairman and Chief Executive Officer are jointly held by Co-Chairpersons and Co-Managing Directors Ms. Chan Yan Wai and Mr. Chan Yan Lun, a structure the Board believes ensures consistent leadership and optimal efficiency[52](index=52&type=chunk) - The Audit Committee, composed of three independent non-executive directors, is responsible for overseeing financial reporting, internal controls, and external auditors[63](index=63&type=chunk) - The Remuneration Committee and Nomination Committee, both with a majority of independent non-executive directors, are responsible for remuneration policies and director nominations, respectively[68](index=68&type=chunk)[71](index=71&type=chunk) Directors' Meeting Attendance (During the Year) | Director | Board | Audit Committee | Remuneration Committee | Nomination Committee | | :--- | :--- | :--- | :--- | :--- | | Chan Yan Wai | 4/4 | – | – | 1/1 | | Chan Yan Lun | 4/4 | – | – | – | | Chan Yan Tin | 4/4 | – | 2/2 | – | | Chan Kwok Wai | 4/4 | 2/2 | 2/2 | 1/1 | | Tse Lai Hang | 4/4 | 2/2 | 2/2 | 1/1 | | Cheung Chung Wai | 4/4 | 2/2 | – | – | [Risk Management and Internal Control](index=25&type=section&id=%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86%E8%88%87%E5%85%A7%E9%83%A8%E7%9B%A3%E6%8E%A7) The Board of Directors bears overall responsibility for the Group's risk management and internal control systems, with management responsible for their design and implementation; the Audit Committee assists the Board in monitoring, and the internal audit function has been outsourced to an external service provider; the Group established a risk management framework in 2017 and reviews it annually, with the Board deeming the internal control system effective and adequate during the reporting period - The Board of Directors bears overall responsibility for maintaining sound and effective risk management and internal controls, while management is responsible for their design and implementation[84](index=84&type=chunk) - The Group has outsourced its internal audit function to an external service provider, which regularly reports review findings to the Audit Committee[85](index=85&type=chunk) - After reviewing during the year, the Board considers the internal control system effective and adequate, with no significant issues identified[86](index=86&type=chunk) [Communication with Shareholders and Other Policies](index=27&type=section&id=%E8%88%87%E8%82%A1%E6%9D%B1%E6%BA%9D%E9%80%9A%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%BF%E7%AD%96) The company communicates with shareholders through various channels, including general meetings, financial reports, announcements, and its website, and has adopted a shareholder communication policy; the report details shareholders' rights and procedures for convening general meetings and proposing resolutions; additionally, the company has established a dividend policy aimed at balancing shareholder returns with future growth needs and has adopted an anti-corruption and whistleblowing policy - The company has adopted a shareholder communication policy to ensure effective and timely communication with shareholders, and its effectiveness is reviewed annually[94](index=94&type=chunk)[95](index=95&type=chunk) - In accordance with the Companies Ordinance, shareholders holding at least **5%** of the total voting rights may request to convene a general meeting; shareholders holding at least **2.5%** of the total voting rights or at least **50** shareholders may request to circulate a resolution at an annual general meeting[97](index=97&type=chunk)[100](index=100&type=chunk) - The dividend policy aims for semi-annual dividend payments, with specific amounts determined by the Board's sole discretion based on factors such as profitability, liquidity, and future capital needs[106](index=106&type=chunk)[107](index=107&type=chunk) [Environmental, Social and Governance Report](index=30&type=section&id=%E7%92%B0%E5%A2%83%E3%80%81%E7%A4%BE%E6%9C%83%E5%8F%8A%E7%AE%A1%E6%B2%BB%E5%A0%B1%E5%91%8A) This report outlines the Group's Environmental, Social, and Governance (ESG) performance and strategy for the 2024/2025 fiscal year; facing a challenging market environment, the Group focuses on enhancing property sustainability, tenant satisfaction, and risk management; the report details the ESG governance structure, stakeholder engagement, materiality assessment results, and specific measures and performance data related to operational practices, employment and labor, environmental protection, and climate change response [ESG Approach and Governance](index=32&type=section&id=ESG%E6%96%B9%E6%B3%95%E8%88%87%E7%AE%A1%E6%B2%BB) In a challenging economic environment, the Group adheres to a prudent asset management strategy, integrating sustainable development principles into daily operations; the Board of Directors holds overall responsibility for ESG initiatives and has established an ESG Executive Committee, led by the Managing Directors, to formulate policies, monitor performance, and focus on tenant retention, risk management, and sustainable asset enhancement - The Board of Directors is fully responsible for corporate governance and incorporates climate-related risks, business ethics, and other ESG risks into regular risk assessments[118](index=118&type=chunk) - The Group has established an ESG Executive Committee, led by the Managing Directors and senior management, responsible for promoting and monitoring the implementation of ESG practices[122](index=122&type=chunk)[123](index=123&type=chunk) - For the 2024/2025 fiscal year, the ESG Executive Committee focused on three key areas: tenant retention and operational resilience, risk management and regulatory preparedness, and sustainable asset enhancement[129](index=129&type=chunk) [Stakeholder Engagement and Materiality Assessment](index=36&type=section&id=%E6%8C%81%E4%BB%BD%E8%80%85%E5%8F%83%E8%88%87%E5%8F%8A%E9%87%8D%E8%A6%81%E8%AD%B0%E9%A1%8C%E8%A9%95%E4%BC%B0) The Group identified six key stakeholder groups and maintains communication with them; based on the annual materiality assessment, service quality and responsibility, financial resilience, talent retention, anti-corruption, waste management, and energy efficiency were deemed the most material issues for the Group's business and stakeholders - The Group identified six key stakeholder groups: tenants, employees, suppliers/contractors, investors/shareholders, local communities, and regulatory bodies, and communicates with them through diverse channels[128](index=128&type=chunk) - Based on the materiality matrix analysis, service quality and responsibility, financial resilience, and talent retention were rated as the most important issues[136](index=136&type=chunk)[137](index=137&type=chunk) [Social Performance](index=41&type=section&id=%E7%A4%BE%E6%9C%83%E8%A1%A8%E7%8F%BE) On the social front, the Group is committed to providing high-quality property services, prioritizing property safety, hygiene, and tenant satisfaction, and protecting customer privacy; the Group upholds high standards of business ethics and implements strict anti-corruption policies; in terms of employment, the Group promotes equal opportunities and focuses on employee health, safety, and career development, with zero employee turnover during the reporting period Tenant Satisfaction Survey Results | Rating | Sunbase Commercial Centre | The Wave | Tai Hing Building 2 | | :--- | :--- | :--- | :--- | | Excellent | 50% | – | 50% | | Satisfactory | 50% | 100% | 25% | - The Group strictly adheres to anti-corruption regulations, with no confirmed corruption incidents or related legal cases during the reporting period[158](index=158&type=chunk) - As of March 31, 2025, the Group employed **18** local employees, with zero employee turnover during the reporting period[166](index=166&type=chunk)[169](index=169&type=chunk) - During the reporting period, the Group achieved zero work-related fatalities and zero lost workdays due to work-related injuries[172](index=172&type=chunk) [Environmental Performance](index=51&type=section&id=%E7%92%B0%E5%A2%83%E8%A1%A8%E7%8F%BE) The Group is committed to green development, managing emissions, resource use, and climate change through environmental management plans; during the reporting period, greenhouse gas emissions and energy consumption from self-occupied offices showed a downward trend; the Group has identified physical and transition risks from climate change and implemented measures to enhance asset energy efficiency and resilience; the company has set targets to reduce greenhouse gas emissions, electricity, and water consumption over the next five years Self-Occupied Office Greenhouse Gas Emission Trends (tonnes of CO2e) | Year | Total Emissions | Intensity (tonnes/person) | | :--- | :--- | :--- | | 2024/2025 | 57.60 | 3.20 | | 2023/2024 | 68.91 | 4.30 | | 2022/2023 | 77.06 | 4.81 | Self-Occupied Office Energy Consumption Trends | Energy Type | 2024/2025 | 2023/2024 | 2022/2023 | | :--- | :--- | :--- | :--- | | Electricity (kWh) | 70,887 | 82,662 | 90,888 | | Gas (MJ) | 33,312 | 31,200 | 42,872 | | Gasoline (liters) | 3,902.85 | 4,778.26 | 4,711.52 | - The Group has set targets to reduce greenhouse gas emissions, electricity, water, and waste emissions over the next five years based on current business levels[220](index=220&type=chunk) - The Group has identified climate change-related physical risks (e.g., typhoons, floods) and transition risks (e.g., policy, technology, market changes) and has developed corresponding response strategies[229](index=229&type=chunk) [Directors' Report](index=63&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%A0%B1%E5%91%8A%E6%9B%B8) This report is a statutory document presented in accordance with the Companies Ordinance, covering the Group's principal activities, results and profit appropriation, major risks, property movements, directors' and major shareholders' interests in shares, connected transactions, and other compliance disclosures; the Group's business review and future developments for the reporting period are detailed in the Chairman's Statement and Management Discussion and Analysis; the Board recommends a final dividend and confirms that the company maintained sufficient public float [Results, Dividends and Reserves](index=64&type=section&id=%E6%A5%AD%E7%B8%BE%E3%80%81%E8%82%A1%E6%81%AF%E5%8F%8A%E5%84%B2%E5%82%99) The results for the current year are detailed in the consolidated statement of profit or loss; the Board recommends a final dividend of HKD 1.4 cents per share, bringing the total annual dividend, including the interim dividend, to HKD 1.7 cents; as of March 31, 2025, the company's distributable reserves amounted to approximately HKD 493.6 million - An interim dividend of **HKD 0.3 cents** per share has been paid, and a final dividend of **HKD 1.4 cents** per share is recommended[234](index=234&type=chunk) - As of March 31, 2025, the company's distributable reserves to shareholders amounted to approximately **HKD 493,625,000**[235](index=235&type=chunk) [Directors' and Shareholders' Interests](index=65&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E8%82%A1%E6%9D%B1%E6%AC%8A%E7%9B%8A) The report discloses changes in the Board of Directors during the year, including Mr. Chan Hoi Sau's resignation due to retirement, and details the interests of directors and major shareholders in the company's shares, indicating that the Chan family holds the majority of the company's equity through individuals, trusts, and controlled corporations Directors' Interests in Company Shares (Long Position) | Director Name | Capacity | Total Long Position | Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Chan Yan Tin | Beneficial Owner/Trust Beneficiary | 173,232,896 shares | 62.49% | | Chan Yan Wai | Trust Beneficiary | 172,440,896 shares | 62.20% | | Chan Yan Lun | Trust Beneficiary | 172,440,896 shares | 62.20% | - Major shareholder Mr. Chan Hoi Sau and his spouse Ms. Chan Lo Kwok Ping are deemed to collectively hold interests in **205,008,534 shares**, representing approximately **73.95%** of the total share capital[258](index=258&type=chunk) [Major Customers, Suppliers and Compliance](index=71&type=section&id=%E4%B8%BB%E8%A6%81%E5%AE%A2%E6%88%B6%E3%80%81%E4%BE%9B%E6%87%89%E5%95%86%E5%8F%8A%E5%90%88%E8%A6%8F) During the reporting period, the largest customer accounted for 6.4% of the Group's total sales, and the top five customers accounted for 23.5%; the largest supplier accounted for 9.3% of total purchases, and the top five suppliers accounted for 32.5%; none of the company's directors, their associates, or major shareholders held any interests in these customers and suppliers; the company complied with relevant laws and regulations and maintained a public float of not less than 25% Major Customer and Supplier Proportions | Category | Percentage of Total (2025) | | :--- | :--- | | Largest Customer | 6.4% | | Total Top Five Customers | 23.5% | | Largest Supplier | 9.3% | | Total Top Five Suppliers | 32.5% | - Based on publicly available information and to the best knowledge of the directors, the company maintained a sufficient public float (not less than **25%**) as of the date of this report[266](index=266&type=chunk) [Financial Statements and Notes](index=72&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E5%8F%8A%E9%99%84%E8%A8%BB) This section comprises the independent auditor's report, the Group's consolidated financial statements (including the statement of profit or loss, statement of financial position, statement of changes in equity, and statement of cash flows), and detailed notes to the financial statements; the auditor issued an unmodified opinion on the financial statements, identifying investment property valuation as a key audit matter; the financial statements show that the Group recorded a loss in the reporting year, primarily due to a decrease in investment property fair value; the notes elaborate on accounting policies, account details, financial instrument risk management, and other relevant information [Independent Auditor's Report](index=72&type=section&id=%E7%8D%A8%E7%AB%8B%E6%A0%B8%E6%95%B8%E5%B8%AB%E5%A0%B1%E5%91%8A%E6%9B%B8) The auditor, Heng Kin CPA Limited, issued an unmodified opinion on the Group's consolidated financial statements for the year ended March 31, 2025, deeming them to present a true and fair view of the Group's financial position and performance; the report identified "Valuation of Investment Properties" as a key audit matter due to its significance to the overall financial statements and the substantial management judgment and estimation involved in its valuation - The auditor believes that the consolidated financial statements present a true and fair view of the Group's financial position and performance in accordance with Hong Kong Financial Reporting Standards and have been properly prepared in compliance with the Hong Kong Companies Ordinance[271](index=271&type=chunk) - A key audit matter is "Valuation of Investment Properties" due to its material balance to the overall financial statements and the significant judgments involved in its valuation, such as market selling prices, rents, and capitalization rates[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) [Consolidated Financial Statements](index=76&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the Group's four primary consolidated financial statements; the consolidated statement of profit or loss shows an annual loss of HKD 54.5 million; the consolidated statement of financial position indicates net assets of HKD 2.52 billion; the consolidated statement of changes in equity reflects the impact of the loss and dividend distribution on equity; and the consolidated statement of cash flows shows net cash generated from operating activities, but net cash outflow from investing activities led to an overall decrease in cash and cash equivalents Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the year ended March 31, 2025) | Item | Amount (HKD thousands) | | :--- | :--- | | Turnover | 50,397 | | Operating Loss | (45,376) | | Loss Before Tax | (49,158) | | Loss for the Year Attributable to Owners of the Company | (54,459) | Summary of Consolidated Statement of Financial Position (As at March 31, 2025) | Item | Amount (HKD thousands) | | :--- | :--- | | Non-current Assets | 2,238,900 | | Current Assets | 389,120 | | **Total Assets** | **2,628,020** | | Current Liabilities | 23,041 | | Non-current Liabilities | 82,007 | | **Total Liabilities** | **105,048** | | **Net Assets** | **2,522,972** | [Notes to the Consolidated Financial Statements](index=82&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) The notes section provides detailed explanations of the basis of preparation and significant accounting policies for the financial statements, along with in-depth analysis of various accounting items; key contents include segment information (property investment and financial investment), fair value changes of investment properties, classification and risk management of financial instruments, directors' emoluments, related party transactions, and capital risk management - The Group's operating activities are divided into two main segments: property investment and financial investment; the property investment segment recorded a loss before tax of **HKD 70.3 million**, while the financial investment segment recorded a profit before tax of **HKD 21.1 million**[398](index=398&type=chunk)[399](index=399&type=chunk) - The fair value of investment properties decreased by **HKD 91.1 million** during the year, with a year-end carrying amount of **HKD 1.938 billion**; valuations were determined by independent professional valuers using the direct comparison approach and/or income capitalization approach[421](index=421&type=chunk)[424](index=424&type=chunk) - The Group faces major financial risks including foreign exchange risk, liquidity risk, credit risk, interest rate risk, and market price risk; Note 32 elaborates on the related risk management objectives and policies[464](index=464&type=chunk) - The Group's capital management objective is to safeguard its ability to continue as a going concern and maintain an optimal capital structure; as at the end of the reporting period, the Group was in a net cash position (bank balances and cash exceeded borrowings), thus the gearing ratio was not applicable[483](index=483&type=chunk)[484](index=484&type=chunk) [Five Year Financial Summary](index=141&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E4%BA%94%E5%B9%B4%E8%B2%A1%E5%8B%99%E6%A6%82%E8%A6%81) This section provides a summary of the Group's key financial data for the past five fiscal years, illustrating trends in revenue, profit, assets, liabilities, and shareholders' equity; the data indicates a recent downward trend in the Group's revenue and a loss attributable to shareholders for five consecutive years, with total assets and total shareholders' equity also decreasing year by year Five-Year Performance Summary (HKD thousands) | Year | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 50,397 | 56,032 | 51,876 | 57,128 | 64,490 | | Loss Attributable to Shareholders | (54,459) | (9,797) | (75,204) | (55,083) | (134,229) | Five-Year Assets and Liabilities Summary (HKD thousands) | Year | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 2,628,020 | 2,683,198 | 2,753,605 | 2,836,393 | 3,190,308 | | Total Liabilities | 105,048 | 108,091 | 109,310 | 109,584 | 307,954 | | Equity Attributable to Shareholders | 2,522,972 | 2,575,107 | 2,644,295 | 2,726,809 | 2,882,354 | [Major Property Information](index=142&type=section&id=%E4%B8%BB%E8%A6%81%E7%89%A9%E6%A5%AD%E8%B3%87%E6%96%99) This section provides a detailed list of the Group's major properties held as of March 31, 2025, including their location, use, type of tenure, and the Group's interest; the property portfolio is primarily concentrated in commercial and office properties in Hong Kong, with a small number of residential properties in Canada; some properties are wholly owned by the Group, while others are held with a 50% interest - The Group holds several core commercial and office properties in Hong Kong, such as Tai Hing Building 1 & 2, Sunbase Commercial Centre, and Ying Lung Commercial Building, most of which are **100%** owned[497](index=497&type=chunk)[499](index=499&type=chunk) - The Group also holds a **50%** interest in some properties, primarily located on Cameron Road, Tsim Sha Tsui[502](index=502&type=chunk) - In addition to Hong Kong properties, the Group holds a residential property in Vancouver, Canada, with **100%** freehold interest[502](index=502&type=chunk)

[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Turnover decreased by **10.1%** to **HKD 50.4 million**, while loss attributable to owners significantly expanded to **HKD 54.46 million** due to increased fair value loss on investment properties Key Consolidated Statement of Profit or Loss Metrics (HKD thousands) | Metric | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Turnover | 50,397 | 56,032 | -10.1% | | Gross Profit | 45,165 | 51,109 | -11.6% | | Fair Value Loss on Investment Properties | (91,139) | (54,437) | +67.4% | | Operating Loss | (45,376) | (7,940) | +471.5% | | Loss Before Tax | (49,158) | (5,629) | +773.3% | | Loss for the Year Attributable to Owners of the Company | (54,459) | (9,797) | +455.9% | | Basic and Diluted Loss Per Share (HKD) | 0.20 | 0.04 | +400% | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) Total assets slightly decreased to **HKD 2.628 billion**, with net assets decreasing **2.0%** to **HKD 2.523 billion** due to lower investment property fair values Key Consolidated Statement of Financial Position Metrics (HKD thousands) | Metric | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Investment Properties | 1,937,917 | 2,029,390 | -4.5% | | Total Assets | 2,628,020 | 2,683,198 | -2.1% | | **Liabilities and Equity** | | | | | Total Liabilities | 105,048 | 108,091 | -2.8% | | Net Assets / Total Equity | 2,522,972 | 2,575,107 | -2.0% | | **Liquidity** | | | | | Net Current Assets | 366,079 | 327,308 | +11.8% | [Notes to Financial Statements](index=5&type=section&id=Notes%20to%20Financial%20Statements) [Basis of Preparation and Accounting Policies](index=5&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The financial statements are prepared under Hong Kong Financial Reporting Standards on a going concern basis, with new standards applied this year having no significant impact - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and on a going concern basis, except for certain investment properties and financial instruments measured at fair value[8](index=8&type=chunk)[9](index=9&type=chunk) - The Group first adopted several revised Hong Kong Financial Reporting Standards this year, including amendments on sale and leaseback, liability classification, and supplier financing arrangements, but these had no significant impact on the financial statements[10](index=10&type=chunk) [Operating Segments](index=7&type=section&id=Operating%20Segments) The Group's business is divided into 'Property Investment' and 'Financial Investment' segments, with property investment recording a **HKD 72.72 million** loss, while financial investment achieved a **HKD 18.26 million** profit - The Group's operating activities are divided into two main segments: property investment (property investment and leasing) and financial investment (debt and equity securities investment)[17](index=17&type=chunk) Segment Results (HKD thousands) | Segment | Metric | 2025 | 2024 | | :--- | :--- | :--- | :--- | | **Property Investment** | Total Rental Income | 50,397 | 56,032 | | | Profit (Loss) for the Year | (72,723) | (21,553) | | | Segment Assets | 2,364,871 | 2,524,372 | | **Financial Investment** | Profit (Loss) for the Year | 18,264 | 11,756 | | | Segment Assets | 263,149 | 158,826 | - Over **90%** of the Group's operating activities and assets are located in Hong Kong, thus no geographical analysis is presented[20](index=20&type=chunk) [Revenue, Expenses, and Taxation](index=7&type=section&id=Revenue%2C%20Expenses%2C%20and%20Taxation) Turnover, entirely from property rental income, totaled **HKD 50.4 million**, with operating loss deducting **HKD 25.93 million** in employee costs, and total tax expense increasing to **HKD 5.3 million** - Turnover refers to total property rental income received and receivable, amounting to **HKD 50,397 thousand** for the current year[15](index=15&type=chunk)[17](index=17&type=chunk) Operating Loss Deducted/Included Items (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Total Employee Costs | 25,929 | 27,711 | | Provision for Expected Credit Losses | 1,896 | 2,526 | | Impairment Loss (Reversal) on Debt Instruments | 946 | (15,525) | | Net Rental Income | 45,165 | 51,109 | Taxation Analysis (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Hong Kong Profits Tax | 5,152 | 3,192 | | Deferred Tax | 139 | 965 | | **Total Tax Expense** | **5,301** | **4,168** | [Loss Per Share and Dividends](index=11&type=section&id=Loss%20Per%20Share%20and%20Dividends) Basic and diluted loss per share increased to **HKD 0.20** due to expanded loss attributable to owners, yet the Board proposed a final dividend of **HKD 0.014** per share, maintaining the total annual dividend at **HKD 0.017** per share - Loss per share is calculated based on the annual loss of approximately **HKD 54,459,000** and **277,232,883** ordinary shares in issue[24](index=24&type=chunk) Dividend Summary (HKD cents per share) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interim Dividend (Per Share) | 0.3 | 0.3 | | Proposed Final Dividend (Per Share) | 1.4 | 1.4 | | **Total Annual Dividend (Per Share)** | **1.7** | **1.7** | [Key Asset and Liability Items](index=12&type=section&id=Key%20Asset%20and%20Liability%20Items) Net rental receivables increased, with a high proportion of overdue amounts over **90 days**, and the Group made a **HKD 0.993 million** provision for expected credit losses Rental Receivables Aging Analysis (Net of Provision, HKD thousands) | Aging | 2025 | 2024 | | :--- | :--- | :--- | | 31-60 Days | 687 | 1,381 | | 61-90 Days | 318 | – | | Over 90 Days | 2,023 | 769 | | **Total** | **3,028** | **2,150** | - During the year, the Group increased its provision for credit losses on receivables by **HKD 0.993 million**[28](index=28&type=chunk) Other Payables and Prepayments (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Contract Liabilities (Rental in Advance) | 3,002 | 2,324 | | Other Payables | 2,857 | 3,149 | | **Total** | **5,859** | **5,473** | [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) [Business Outlook](index=14&type=section&id=Business%20Outlook) Global economic uncertainties and changing local consumption patterns continue to pressure the Hong Kong property market, leading to decreased rental income and property values, yet the Group remains cautiously optimistic long-term - Challenges include global economic volatility, trade tensions, inflation, and geopolitical situations, casting a shadow over the economic outlook and weakening real estate performance[33](index=33&type=chunk) - The Hong Kong office and retail leasing sectors face weak demand and oversupply, while local shopping patterns are shifting due to residents traveling north, leading to decreased rents and property values[33](index=33&type=chunk) - The Group adopts a cautious approach, prioritizing cost control and sustainable development, and remains cautiously optimistic about the long-term Hong Kong market due to ample cash and low gearing[34](index=34&type=chunk) [Financial Review](index=15&type=section&id=Financial%20Review) Revenue decreased due to lower renewal rents and increased vacancy rates, with loss attributable to owners expanding to **HKD 54.5 million** primarily due to increased fair value loss on investment properties and impairment loss on debt instruments - Property investment income decreased from **HKD 56 million** to **HKD 50.4 million**, mainly due to reduced rents upon lease renewals and a slight increase in vacancy rates[35](index=35&type=chunk) - In financial investments, listed equity securities recorded an unrealized gain of **HKD 15.4 million** (compared to **HKD 0.1 million** last year), but debt instruments recorded an impairment loss of **HKD 0.9 million** (compared to a reversal of **HKD 15.5 million** last year)[36](index=36&type=chunk) - The primary reasons for the expanded loss attributable to owners include: increased fair value loss on investment properties from **HKD 54.4 million** to **HKD 91.1 million**; decreased rental income; and a shift in debt instrument impairment from a net reversal of **HKD 15.5 million** last year to a loss of **HKD 1 million** this year[42](index=42&type=chunk) [Liquidity and Capital Management](index=16&type=section&id=Liquidity%20and%20Capital%20Management) The Group held **HKD 277 million** in cash, with total bank borrowings reduced to **HKD 41.7 million**, leading to an **11.6%** decrease in finance costs, while shareholders' funds decreased to **HKD 2.523 billion** - As of March 31, 2025, the Group's net current assets were **HKD 277 million**, with total bank borrowings of **HKD 41.7 million**, maintaining a significant net cash balance[40](index=40&type=chunk) - Finance costs for the year were **HKD 1.3 million**, an **11.6%** decrease from last year, primarily due to a reduction in bank loan principal[41](index=41&type=chunk) - Shareholders' funds decreased from **HKD 2.575 billion** to **HKD 2.523 billion**, mainly due to the decrease in fair value of investment properties, with net asset value per share falling from **HKD 9.3** to **HKD 9.1**[44](index=44&type=chunk) [Other Disclosures](index=14&type=section&id=Other%20Disclosures) [Dividend Distribution Arrangement](index=14&type=section&id=Dividend%20Distribution%20Arrangement) The Board proposed a final dividend of **HKD 0.014** per share, payable on September 12, 2025, subject to AGM approval, with specific book closure dates set for voting and dividend entitlements - The proposed final dividend of **HKD 0.014** per share will be paid on September 12, 2025, to shareholders registered on September 2, 2025[30](index=30&type=chunk) - To determine shareholders' eligibility to attend the Annual General Meeting, the share transfer register will be suspended from August 15 to August 20, 2025[31](index=31&type=chunk) - To determine eligibility for the final dividend, the share transfer register will be suspended from August 29 to September 2, 2025[32](index=32&type=chunk) [Corporate Governance and Others](index=17&type=section&id=Corporate%20Governance%20and%20Others) The company complied with Listing Rules' Corporate Governance Code, with the only deviation being the roles of Chairman and CEO held by Co-Chairmen and Co-Managing Directors, while employee numbers slightly increased to **18** - As of March 31, 2025, the Group had **18** employees, with total employee costs amounting to **HKD 25.9 million**[46](index=46&type=chunk) - The company complied with the Corporate Governance Code, except for the roles of Chairman and Chief Executive Officer being held by the same individuals, which the Board believes ensures consistent leadership and optimal efficiency[48](index=48&type=chunk) - The Audit Committee has reviewed the annual accounts, and the auditor confirmed that the financial figures in the preliminary announcement are consistent with the audited consolidated financial statements[49](index=49&type=chunk)[51](index=51&type=chunk)

Group 1: Company Developments - Zhou Li Fu Jewelry Co., Ltd. has successfully passed the Hong Kong Stock Exchange listing hearing, aiming to expand market share and enhance brand influence through its listing [1][2] - Shenzhen Xipuni Precision Technology Co., Ltd. has re-submitted its application for listing on the Hong Kong Stock Exchange after a previous application lapsed, with a focus on securing funds for R&D and market expansion [3][4] Group 2: Financial Performance - Tai Hing Property is expected to report a significant pre-tax loss of approximately HKD 49.2 million for the fiscal year ending March 31, 2025, primarily due to a fair value loss on investment properties [4][5] - Huabao International has invested a total of HKD 525 million in financial products, indicating active participation in the financial market [6] Group 3: Market Overview - The Hong Kong stock market showed positive movement on June 4, with the Hang Seng Index rising by 0.60%, the Hang Seng Tech Index increasing by 0.57%, and the YQ Index up by 0.67% [7]

Financial Performance - For the six months ended September 30, 2024, the company reported a revenue of HKD 26,418,000, a decrease of 7.9% from HKD 28,687,000 in the same period last year[4]. - The gross profit for the same period was HKD 23,698,000, down 8.0% from HKD 25,743,000 year-on-year[4]. - The company recorded a loss attributable to shareholders of HKD 55,758,000, compared to a profit of HKD 10,506,000 in the previous year, indicating a significant decline[4]. - The total comprehensive income for the period was a loss of HKD 55,758, compared to a loss of HKD 50,067 in the previous period, reflecting an increase in losses of approximately 11.4%[8]. - The company reported a basic and diluted loss per share of HKD 20.11 cents, compared to earnings of HKD 3.79 cents per share in the prior year[4]. - The group reported an operating loss of HKD 16.6 million for the six months ended September 30, 2024, compared to an operating loss of HKD 51.9 million for the same period in 2023, reflecting an improvement of approximately 68.0%[20]. - The total finance costs increased to HKD 712,000 for the six months ended September 30, 2024, from HKD 637,000 in the previous year, marking an increase of approximately 11.8%[28]. - The total comprehensive expenses for the period amounted to HKD 55,758, compared to HKD 50,067 in the previous period, indicating an increase of about 11.4%[8]. Assets and Liabilities - The total assets as of September 30, 2024, were HKD 2,608,081,000, a decrease from HKD 2,663,141,000 as of March 31, 2024[6]. - The net assets of the company stood at HKD 2,521,159,000, down from HKD 2,575,107,000 in the previous period[6]. - The total liabilities increased to HKD 86,922,000 from HKD 88,034,000, reflecting a slight decrease[6]. - The company's total assets from joint ventures amounted to HKD 519,968,000 as of September 30, 2024, compared to HKD 522,888,000 as of March 31, 2024[42]. - The group’s bank borrowings amounted to HKD 43,198,000 as of September 30, 2024, a decrease from HKD 44,586,000 as of March 31, 2024[60]. - The total liabilities for property investment were HKD 63.7 million as of September 30, 2024, compared to HKD 63.1 million in the previous year, indicating a slight increase[20]. Cash Flow and Investments - The net cash generated from operating activities for the six months ended September 30, 2024, was HKD 5,147, compared to HKD 8,921 for the same period in 2023, indicating a decrease of about 42.5%[12]. - The net cash used in investing activities was HKD (39,927) for the current period, compared to HKD 28,415 in the previous period, showing a significant shift in investment cash flow[12]. - The company’s cash and cash equivalents amounted to HKD 252,398,000, a decrease from HKD 288,425,000 in the previous period[6]. - The cash and cash equivalents at the end of the period were HKD 252,398, an increase from HKD 241,306 at the end of the previous period, showing a growth of about 4.5%[12]. Dividends and Shareholder Information - The company declared a proposed dividend of HKD 832 for the period, up from HKD 3,327 in the previous period, indicating a change in dividend policy[8]. - The company declared an interim dividend of HKD 0.3 cents per share, totaling approximately HKD 832,000, consistent with the interim dividend declared in the same period last year[29]. - The company reported a shareholding structure where the largest shareholder holds 62.49% of the issued share capital[101]. - The public float of the company remains at 25% as of the report date, ensuring compliance with regulatory requirements[114]. Strategic Initiatives and Outlook - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[4]. - The company is focusing on improving operational efficiency and exploring potential mergers and acquisitions to enhance growth prospects[4]. - The company aims to maintain prudent financial management and cash flow management as a primary goal in the current unstable economic environment[99]. - The company anticipates a cautious outlook for the medium to short term due to ongoing economic challenges in Hong Kong[99]. - The company is considering strategic acquisitions to enhance its product offerings and market presence[120]. Operational Performance - The rental income from the company's property investment business was positively impacted by the recovery of inbound tourism, with a rental occupancy rate of 75%, a decrease of 10% from the previous comparable period's 85%[92][91]. - The overall rental levels and occupancy rates are expected to face significant pressure due to low demand and oversupply in the Hong Kong office and retail leasing market[99]. - The group’s administrative expenses for the period were HKD 14.7 million, a decrease from HKD 15.2 million in the previous year, indicating a cost reduction strategy[20]. Corporate Governance - The audit committee has reviewed the accounting policies and practices of the group for the six months ending September 30, 2024, ensuring financial reporting integrity[115]. - The company has adhered to all applicable corporate governance codes, with the exception of the separation of the roles of chairman and CEO, which are held by the same individual[116]. - Chen Haishou resigned as chairman and CEO on August 22, 2024, with Chen Enhui and Chen Enlin appointed as co-chairmen and co-CEOs[117]. - The company has adopted the standard code of conduct for directors' securities transactions, confirming compliance by all directors during the reporting period[119].

Financial Performance - For the six months ended September 30, 2024, the company reported a revenue of HKD 26,418,000, a decrease of 7.9% from HKD 28,687,000 in the same period last year[2] - The company experienced a gross profit of HKD 23,698,000, down from HKD 25,743,000, reflecting a decline of 8.0% year-over-year[2] - The operating loss for the period was HKD 51,888,000, compared to an operating profit of HKD 12,075,000 in the previous year, indicating a significant downturn[3] - The net loss attributable to shareholders for the period was HKD 55,758,000, contrasting with a profit of HKD 10,506,000 in the same period last year[3] - The company reported a basic and diluted loss per share of HKD 20.11 cents, compared to earnings of HKD 3.79 cents per share in the previous year[3] - The company reported a total comprehensive loss of HKD 50,067,000 for the period ending September 30, 2024, compared to a comprehensive loss of HKD 55,758,000 for the previous period[11] - The company incurred a net loss of HKD (60,942,000) for the period, compared to a net loss of HKD (55,758,000) in the previous year[20] - The group recorded a loss attributable to shareholders of HKD 558 million, compared to a profit of HKD 105 million in the previous year[78] Assets and Liabilities - Total assets decreased to HKD 2,608,081,000 as of September 30, 2024, from HKD 2,663,141,000 as of March 31, 2024, a reduction of 2.1%[5] - The company's non-current assets, specifically investment properties, decreased to HKD 1,957,705,000 from HKD 2,029,390,000, a decline of 3.5%[5] - Current liabilities increased slightly to HKD 20,770,000 from HKD 20,057,000, reflecting a rise of 3.5%[7] - The total equity attributable to shareholders decreased to HKD 2,521,159,000 from HKD 2,575,107,000, a decline of 2.1%[7] - The company’s total assets as of September 30, 2024, amount to HKD 2,521,159,000, showing a slight decrease from HKD 2,644,295,000 as of April 1, 2023[11] - The carrying amount of property, plant, and equipment at the end of the period was HKD 1,159,000,000, down from HKD 1,362,000,000 at the beginning of the period, with depreciation expenses of HKD 203,000,000 recognized during the period[44] - The total amount of receivables, including rental income, was approximately HKD 3,043,000 as of September 30, 2024, up from HKD 2,150,000 as of March 31, 2024[55] Cash Flow and Liquidity - The company’s cash and cash equivalents stood at HKD 252,398,000, down from HKD 288,425,000, a decrease of 12.5%[5] - As of September 30, 2024, the company's cash and bank deposits amounted to HKD 209.2 million, down from HKD 248.0 million as of March 31, 2024[82] - The total bank credit available to the company was HKD 43.7 million, a decrease from HKD 45.1 million as of March 31, 2024[82] - The company’s liquidity ratio as of September 30, 2024, was 17.7 times, slightly up from 17.3 times as of March 31, 2024[83] Dividends - The proposed dividend for the period is HKD 832,000, reflecting a decrease from HKD 3,881,000 in the previous period[11] - The company declared an interim dividend of HKD 0.3 cents per share, totaling approximately HKD 832,000, consistent with the previous year's interim dividend[39] - The board declared an interim dividend of HKD 0.003 per share, payable on December 27, 2024[74] Investment Activities - The company operates in two segments: property investment and financial investment, with detailed financial information provided for each segment[17] - The net rental income from property investments is a key performance indicator, reflecting the company's focus on property leasing activities[17] - The company continues to focus on investment in securities, with a strategy to enhance returns through debt and equity securities[17] - The investment property fair value loss was HKD (71,660,000), impacting overall financial performance significantly[18] - The fair value of investment properties at the end of the period was HKD 1,957,705,000, down from HKD 2,029,390,000 at the beginning of the period, reflecting a fair value loss recognized in profit or loss[41] - The fair value of listed debt instruments was HKD 38,415 thousand as of September 30, 2024, up from HKD 33,987 thousand[71] - The group expects to receive minimum future rental income of HKD 63,865 thousand over the next four years[67] Management and Governance - The company has applied new and revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial performance for the current and prior periods[16] - The financial statements have been reviewed by the audit committee, ensuring compliance with relevant regulations and standards[14] - On August 22, 2024, Mr. Chen Haishou resigned as the Chairman and Managing Director, with Ms. Chen Enhui and Mr. Chen Enlin appointed as Co-Chairmen and Co-Managing Directors[104] - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a balanced distribution of power[106] - All directors confirmed compliance with the "Standard Code" for securities trading during the six-month period ending September 30, 2024[105]

[Company Overview](index=2&type=section&id=Company%20Overview) [Company Information](index=2&type=section&id=Company%20Information) This section provides core company information for Tai Hing Properties Limited, including board members, committee structures, key banks, registered office, share registrar, company secretary, auditor, and legal advisors - The company's Chairman and Managing Director is Mr. Chan Hoi Sau, and the auditor is Heng Kin CPA Limited[4](index=4&type=chunk) [Chairman's Statement](index=3&type=section&id=Chairman's%20Statement) In FY2024, group revenue grew 8.0% to HKD 56.0 million, but a HKD 9.8 million loss attributable to shareholders was recorded due to fair value losses on investment properties, with a proposed final dividend of 1.4 HK cents per share | Metric | 2024 Fiscal Year | 2023 Fiscal Year | | :--- | :--- | :--- | | Revenue | HKD 56.0 million | HKD 51.9 million | | Revenue Growth | +8.0% | - | | Loss Attributable to Shareholders | HKD 9.8 million | HKD 75.2 million | | Loss Per Share | HKD 4.0 cents | HKD 27.1 cents | | Dividend Type | Amount Per Share | | :--- | :--- | | Interim Dividend | HKD 0.3 cents | | Proposed Final Dividend | HKD 1.4 cents | | **Total Annual Dividend** | **HKD 1.7 cents** | - Business Outlook: Despite global economic uncertainties, the Group remains cautiously optimistic about the Hong Kong market, maintaining **ample cash**, **extremely low debt levels**, and adhering to **prudent financial management principles**[10](index=10&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) This section analyzes the Group's financial and business performance, highlighting revenue growth from property investment, reduced annual loss due to lower fair value losses, strong liquidity, and a stable securities investment portfolio, while also outlining key risks [Financial Review](index=6&type=section&id=Financial%20Review) This fiscal year, property investment income increased to HKD 56.0 million, while the annual loss significantly narrowed to HKD 9.8 million due to reduced fair value losses on investment properties and a reversal of impairment loss on debt instruments, leading to a robust cash balance of HKD 292.6 million - Loss attributable to shareholders significantly decreased from **HKD 75.2 million** last year to **HKD 9.8 million** this year, primarily due to a reduction in fair value loss on investment properties from **HKD 79.6 million** to **HKD 54.4 million**, and a net reversal of impairment loss on debt instruments of **HKD 15.5 million** (compared to an impairment loss provision of HKD 10.0 million last year)[20](index=20&type=chunk) - The Group maintains **ample liquidity**, with bank balances and cash reaching **HKD 292.6 million** as of March 31, 2024, an increase of **HKD 83.9 million** from the previous year, mainly due to a reduction in securities investments[22](index=22&type=chunk) - Finance costs increased from **HKD 1.1 million** to **HKD 1.5 million**, a **36.4% year-on-year growth**, primarily due to rising bank loan interest rates[23](index=23&type=chunk) [Business Review](index=8&type=section&id=Business%20Review) The Group's core businesses are property and financial investments, with investment property value decreasing to HKD 2,029.4 million due to fair value adjustments, while maintaining a stable HKD 73.0 million securities portfolio and a consistent employee count - Property Investment: As of March 31, 2024, investment property value was **HKD 2,029.4 million**, a decrease of **HKD 54.4 million** from the previous year, mainly due to fair value declines of investment properties in Tsim Sha Tsui and Jordan, with no property acquisitions or disposals during the year[31](index=31&type=chunk) - Financial Investment: The securities and treasury products portfolio was valued at **HKD 73.0 million** (2023: HKD 174.7 million), comprising debt securities and listed equity investments[31](index=31&type=chunk) - Employees: As of March 31, 2024, the Group had **16 employees**, consistent with the previous year, with total employee costs (including directors' emoluments) increasing to **HKD 27.7 million** from HKD 25.3 million last year[33](index=33&type=chunk) [Our Risk Profile](index=9&type=section&id=Our%20Risk%20Profile) The Group manages business, operational, and financial risks by monitoring market trends, maintaining property competitiveness, implementing robust internal controls, and detailing financial risk management strategies in the financial statements notes - The Group identifies and manages three main types of risks: - **Business risks**: Addressed by monitoring market trends and regular property maintenance - **Operational risks**: Controlled through internal controls, segregation of duties, and external consultant reviews - **Financial risks**: Including market, credit, and liquidity risks, with specific management methods detailed in the financial statements notes[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) [Governance and Operations](index=9&type=section&id=Governance%20and%20Operations) [Biographies of Directors and Senior Management](index=9&type=section&id=Biographies%20of%20Directors%20and%20Senior%20Management) This section details the backgrounds of the company's directors and senior management, including the founding chairman Mr. Chan Hoi Sau and his children as executive directors with extensive real estate and finance experience, alongside independent non-executive directors providing professional oversight - The executive director team comprises founder Mr. Chan Hoi Sau (Chairman and Managing Director) and his children Mr. Chan Yan Tin, Ms. Chan Yan Wai (Vice Chairman), and Mr. Chan Yan Lam, all possessing **extensive experience in real estate and financial investment**[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - Independent non-executive directors include Mr. Chan Kwok Wai (Chairman of Audit, Remuneration, and Nomination Committees), Mr. Tse Lai Hang, and Ms. Cheung Chung Wai, who possess **professional backgrounds in financial accounting, civil engineering, and commercial procurement finance**, respectively[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) [Corporate Governance Report](index=11&type=section&id=Corporate%20Governance%20Report) This report outlines the company's commitment to high corporate governance standards, noting compliance with most code provisions, with the combined roles of Chairman and Chief Executive Officer being the only deviation, supported by independent non-executive directors for checks and balances - The company complied with all applicable provisions of the Corporate Governance Code, with the only deviation being the combined roles of Chairman and Chief Executive Officer held by Mr. Chan Hoi Sau, a structure the Board believes ensures **leadership continuity and efficiency**, with **three independent non-executive directors providing sufficient checks and balances**[45](index=45&type=chunk)[52](index=52&type=chunk) - The Board has established three committees: Audit, Remuneration, and Nomination, all chaired by independent non-executive director Mr. Chan Kwok Wai, with each committee holding meetings during the year to fulfill their responsibilities, including reviewing financial reports, remuneration policies, and director nominations[61](index=61&type=chunk)[63](index=63&type=chunk)[68](index=68&type=chunk) - The Group has established a risk management framework and outsourced its internal audit function to an external service provider, with the Board deeming the internal control system effective and adequate during the year, subject to at least annual review[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) [Environmental, Social and Governance Report (ESG)](index=29&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report%20(ESG)) This report details the Group's ESG strategies, policies, and performance, including the establishment of an ESG Executive Committee, focus on tenant services, data privacy, anti-corruption, supply chain management, employee welfare, and environmental efforts in emissions, resource efficiency, and climate change adaptation - The Group established an ESG Executive Committee, led by the Managing Director and senior management, responsible for policy formulation, performance monitoring, and integrating ESG initiatives into business operations[126](index=126&type=chunk)[128](index=128&type=chunk) Greenhouse Gas Emissions (Self-occupied Office) | Greenhouse Gas Emissions (Self-occupied Office) | 2023/2024 | 2022/2023 | | :--- | :--- | :--- | | Total Emissions (tonnes of CO2e) | 68.91 | 77.06 | | Intensity (tonnes/person) | 4.30 | 4.81 | Energy Consumption (Self-occupied Office) | Energy Consumption (Self-occupied Office) | 2023/2024 | 2022/2023 | | :--- | :--- | :--- | | Electricity (kWh) | 82,662 | 90,888 | | Gas (MJ) | 31,200 | 42,872 | | Petrol (litres) | 4,778.26 | 4,711.52 | - The Group identified climate-related physical risks (e.g., typhoons, floods) and transition risks (e.g., policy, technology, market changes), and is committed to enhancing asset adaptability and energy efficiency to address these challenges[233](index=233&type=chunk)[235](index=235&type=chunk) [Report of the Directors](index=60&type=section&id=Report%20of%20the%20Directors) This report summarizes the company's annual business review, performance distribution, share capital changes, and directors' and major shareholders' interests, noting a loss primarily from a HKD 54.4 million net deficit on investment property revaluation and confirming compliance with listing rules on public float - The Group revalued all investment properties at the end of the reporting period, resulting in a net deficit of **HKD 54.4 million**, which has been directly recognized in the consolidated statement of profit or loss and other comprehensive income[244](index=244&type=chunk) - Directors' and Major Shareholders' Interests: Chairman Mr. Chan Hoi Sau, through personal holdings, controlled corporations, and discretionary trusts, collectively holds approximately **73.95%** of the company's share interests[251](index=251&type=chunk) Major Customers and Suppliers Percentage | Major Customers and Suppliers Percentage | 2024 Fiscal Year | 2023 Fiscal Year | | :--- | :--- | :--- | | Largest Customer as % of Total Sales | 6.4% | 6.8% | | Top Five Customers as % of Total Sales | 22.6% | 23.4% | | Largest Supplier as % of Total Purchases | 13.9% | 12.8% | | Top Five Suppliers as % of Total Purchases | 40.9% | 37.2% | - The company confirms that as of the report date, the public float is not less than **25%** of the issued shares, complying with listing rule requirements[275](index=275&type=chunk) [Financial Statements and Auditor's Opinion](index=68&type=section&id=Financial%20Statements%20and%20Auditor's%20Opinion) [Independent Auditor's Report](index=68&type=section&id=Independent%20Auditor's%20Report) The auditor, Heng Kin CPA Limited, issued an unmodified opinion on the consolidated financial statements, affirming their fair presentation and compliance with HKFRS and the Companies Ordinance, identifying "Valuation of Investment Properties" as a key audit matter due to its significance and judgment involved - Auditor's Opinion: In our opinion, the consolidated financial statements give a **true and fair view** of the consolidated financial position of your Group as at 31 March 2024 and of its consolidated financial performance and consolidated cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards and have been **properly prepared in compliance with the Hong Kong Companies Ordinance**[280](index=280&type=chunk) - Key Audit Matter: Valuation of Investment Properties, identified as a key audit matter due to its **materiality to the consolidated financial statements** as a whole and the **significant judgment involved** in determining the valuation, with investment properties totaling approximately **HKD 2.03 billion** as of March 31, 2024[282](index=282&type=chunk)[283](index=283&type=chunk)[284](index=284&type=chunk) [Consolidated Financial Statements](index=72&type=section&id=Consolidated%20Financial%20Statements) This section presents the Group's core financial statements, including the consolidated statement of profit or loss and other comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, and consolidated statement of cash flows, providing a comprehensive view of the Group's financial performance, position, equity changes, and cash flows for the 2024 fiscal year [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=72&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In FY2024, the Group's turnover was HKD 56.032 million, with an annual loss of HKD 9.797 million, significantly narrowed from the previous year's HKD 75.204 million loss, primarily due to a HKD 54.437 million fair value loss on investment properties, resulting in a basic loss per share of HKD 0.04 | Item (HKD thousand) | 2024 | 2023 | | :--- | :--- | :--- | | Turnover | 56,032 | 51,876 | | Gross Profit | 51,109 | 49,618 | | Operating Loss | (7,940) | (60,951) | | Loss Before Tax | (5,629) | (70,922) | | **Loss for the Year Attributable to Owners of the Company** | **(9,797)** | **(75,204)** | | Other Comprehensive Expense for the Year | (55,232) | (1,766) | | **Total Comprehensive Expense for the Year Attributable to Owners of the Company** | **(65,029)** | **(76,970)** | | Basic and Diluted Loss Per Share (HKD) | (0.04) | (0.27) | [Consolidated Statement of Financial Position](index=73&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2024, the Group's total assets were HKD 2.683 billion, with net assets of HKD 2.575 billion, where investment properties constituted the largest portion of non-current assets at HKD 2.029 billion, and bank balances and cash significantly increased to HKD 288.4 million | Item (HKD thousand) | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | **Non-current Assets** | 2,335,833 | 2,501,791 | | Of which: Investment Properties | 2,029,390 | 2,083,782 | | **Current Assets** | 347,365 | 251,814 | | Of which: Bank Balances and Cash | 288,425 | 171,040 | | **Total Assets** | **2,683,198** | **2,753,605** | | **Current Liabilities** | 20,057 | 20,534 | | **Non-current Liabilities** | 88,034 | 88,776 | | **Total Liabilities** | **108,091** | **109,310** | | **Net Assets** | **2,575,107** | **2,644,295** | | **Total Equity** | **2,575,107** | **2,644,295** | [Consolidated Statement of Changes in Equity](index=75&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) As of March 31, 2024, the Group's total shareholders' equity decreased from HKD 2.644 billion to HKD 2.575 billion, primarily due to a total comprehensive expense of HKD 65.03 million (including annual loss and other comprehensive expenses) and dividends paid of HKD 4.16 million | Item (HKD thousand) | 2024 Fiscal Year | 2023 Fiscal Year | | :--- | :--- | :--- | | Total Equity at Beginning of Year | 2,644,295 | 2,726,809 | | Loss for the Year | (9,797) | (75,204) | | Other Comprehensive Expense | (55,232) | (1,766) | | Dividends Paid | (4,159) | (5,544) | | **Total Equity at End of Year** | **2,575,107** | **2,644,295** | [Consolidated Statement of Cash Flows](index=76&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) In FY2024, the Group generated HKD 15.63 million net cash from operating activities and HKD 20.80 million net cash from investing activities, while financing activities resulted in a net outflow of HKD 8.93 million, leading to a net increase in cash and cash equivalents of HKD 27.50 million, with an ending balance of HKD 236.25 million | Item (HKD thousand) | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash From Operating Activities | 15,628 | 21,202 | | Net Cash From Investing Activities | 20,802 | 42,972 | | Net Cash Used in Financing Activities | (8,933) | (10,179) | | **Net Increase in Cash and Cash Equivalents** | **27,497** | **53,995** | | Cash and Cash Equivalents at Beginning of Year | 208,725 | 155,130 | | **Cash and Cash Equivalents at End of Year** | **236,252** | **208,725** | [Notes to the Consolidated Financial Statements](index=78&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed notes to the consolidated financial statements, explaining significant accounting policies, key judgments, and estimates, and offering detailed classifications and explanations for various financial statement items, including revenue recognition, investment property valuation, financial instruments, taxation, dividends, related party transactions, and capital risk management - Note 16: Investment properties fair value is approximately **HKD 2.03 billion**, valued by independent professional surveyors using the direct comparison and/or income capitalization approaches, classified as Level 3 fair value measurements involving **unobservable inputs** such as market rents and capitalization rates[405](index=405&type=chunk)[436](index=436&type=chunk)[438](index=438&type=chunk) - Note 25: As of the reporting period end, total secured bank borrowings were **HKD 44.59 million**, with approximately **HKD 2.81 million** due within one year, and bank facilities are secured by investment properties, financial assets, and bank deposits[463](index=463&type=chunk)[464](index=464&type=chunk) - Note 31: Related party transactions primarily include management fee income of **HKD 3.95 million** and dividend income of **HKD 1.80 million** from an associate[477](index=477&type=chunk)[478](index=478&type=chunk) [Appendix](index=135&type=section&id=Appendix) [Five Year Financial Summary of the Group](index=135&type=section&id=Five%20Year%20Financial%20Summary%20of%20the%20Group) This section provides a summary of the Group's key financial data for the past five fiscal years (2020-2024), covering performance metrics like revenue, annual loss, and loss per share, as well as balance sheet items such as total assets, total liabilities, and shareholders' equity, facilitating comparative analysis of long-term financial trends | Item (HKD thousand) | 2024 | 2023 | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Results** | | | | | | | Revenue | 56,032 | 51,876 | 57,128 | 64,490 | 73,120 | | Loss Attributable to Shareholders | (9,797) | (75,204) | (55,083) | (134,229) | (531,208) | | **Assets and Liabilities** | | | | | | | Total Assets | 2,683,198 | 2,753,605 | 2,836,393 | 3,190,308 | 3,330,089 | | Total Liabilities | 108,091 | 109,310 | 109,584 | 307,954 | 366,589 | | Total Equity Attributable to Shareholders | 2,575,107 | 2,644,295 | 2,726,809 | 2,882,354 | 2,963,500 | [Particulars of Major Properties](index=136&type=section&id=Particulars%20of%20Major%20Properties) This section details the Group's major property portfolio as of March 31, 2024, primarily comprising commercial properties and some residential units in prime Hong Kong locations like Tsim Sha Tsui, Causeway Bay, and Central, along with one residential property in Vancouver, Canada, with most Hong Kong properties held under long or medium-term leases - The Group holds a significant portfolio of commercial properties in prime Hong Kong locations, including: - Retail shops at Park Lane Shopper's Boulevard, Nathan Road, Tsim Sha Tsui, Kowloon - The entire building of Sunbeam Commercial Centre, Granville Road, Tsim Sha Tsui, Kowloon - Portions and entire buildings of Tai Hing Building Block 1 and Block 2, Queen's Road Central, Hong Kong[512](index=512&type=chunk)[513](index=513&type=chunk) - The Group holds a **50% interest** in portions of commercial floors in Tai Hing Plaza and Pottinger House, Cameron Road, Tsim Sha Tsui, Kowloon, through an associate[515](index=515&type=chunk) - In addition to commercial properties, the Group also holds residential properties in Tai Tam, Hong Kong, and Vancouver, Canada, used as **directors' quarters or for investment purposes**[512](index=512&type=chunk)[515](index=515&type=chunk)

[Performance Summary and Management Discussion](index=1&type=section&id=Performance%20Summary%20and%20Management%20Discussion) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Group's turnover increased to HKD 56.03 million, with annual loss significantly narrowed to HKD 9.80 million due to reduced fair value losses on investment properties Key Performance Indicators | Indicator | 2024 | 2023 | | :--- | :--- | :--- | | Turnover (HKD '000) | 56,032 | 51,876 | | Loss for the year attributable to owners of the Company (HKD '000) | (9,797) | (75,204) | | Basic and diluted loss per share (HKD) | (0.04) | (0.27) | | Total equity (HKD '000) | 2,575,107 | 2,644,295 | - Annual loss significantly narrowed, primarily due to a reduction in fair value loss on investment properties from **HKD 79.60 million** last year to **HKD 54.40 million** this year, and a net reversal of impairment loss on debt instruments of **HKD 15.50 million** (compared to an impairment loss of **HKD 10.00 million** last year)[49](index=49&type=chunk)[80](index=80&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) Management maintains cautious optimism on Hong Kong's stable economic fundamentals, emphasizing prudent financial management, cost control, and sustainable development, supported by increased bank interest income and strong liquidity [Business Outlook](index=14&type=section&id=Business%20Outlook) Global economic recovery faces geopolitical and trade uncertainties, while Hong Kong's recovery is weaker than expected due to high interest rates and cross-border consumption, yet the Group remains cautiously optimistic - Global economic recovery faces challenges from geopolitical tensions, international trade frictions, and interest rate hike cycles[75](index=75&type=chunk) - Hong Kong's economic recovery momentum is weaker than expected due to high interest rates and residents' tendency to spend in mainland China, but the Group remains cautiously optimistic due to its stable macroeconomic fundamentals[95](index=95&type=chunk) - The Group will continue to adhere to prudent financial management principles and operate with an optimistic outlook[76](index=76&type=chunk) [Financial Review](index=15&type=section&id=Financial%20Review) Property investment income slightly rose to HKD 56.00 million, bank interest income significantly increased to HKD 11.80 million, and annual loss narrowed to HKD 9.80 million, with total dividends maintained at HKD 1.7 cents per share Composition of Financial Income | Income Item | 2024 (HKD million) | 2023 (HKD million) | | :--- | :--- | :--- | | Property Investment Income | 56.0 | 51.9 | | Interest Income from Debt Securities | 7.9 | 15.9 | | Bank Interest Income | 11.8 | 3.7 | - Loss attributable to owners for the year was **HKD 9.8 million**, a significant reduction from **HKD 75.2 million** last year[129](index=129&type=chunk) - The reduction in loss was primarily due to decreased fair value losses on investment properties and a net reversal of impairment losses on debt instruments measured at fair value through other comprehensive income[80](index=80&type=chunk) - A final dividend of **HKD 1.4 cents** per share is proposed, bringing the total annual dividend to **HKD 1.7 cents** per share, consistent with last year[101](index=101&type=chunk) [Liquidity and Financial Position](index=16&type=section&id=Liquidity%20and%20Financial%20Position) As of March 31, 2024, the Group's net current assets increased to HKD 83.90 million, with total bank borrowings at HKD 44.60 million, while shareholders' equity decreased to HKD 2.575 billion - As of March 31, 2024, the Group's net current assets were **HKD 292.6 million**, an increase from the previous year, primarily due to a decrease in securities investments[112](index=112&type=chunk) - The Group's total bank borrowings were **HKD 44.60 million**, with the majority (approximately **87.2%**) maturing after two years[82](index=82&type=chunk)[102](index=102&type=chunk) - Finance costs increased by **36.4%** year-on-year to **HKD 1.50 million**, primarily due to rising bank loan interest rates[83](index=83&type=chunk) - Shareholders' equity decreased to **HKD 2.575 billion**, primarily due to a significant reduction in the fair value of investment properties, with net asset value per share at **HKD 9.3**[113](index=113&type=chunk) [Consolidated Financial Statements and Notes](index=1&type=section&id=Consolidated%20Financial%20Statements%20and%20Notes) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's turnover reached HKD 56.03 million, with operating loss significantly narrowed to HKD 7.94 million and loss attributable to owners improving to HKD 9.80 million Consolidated Statement of Profit or Loss | Item (HKD '000) | 2024 | 2023 | | :--- | :--- | :--- | | Turnover | 56,032 | 51,876 | | Gross profit | 51,109 | 49,618 | | Operating loss | (7,940) | (60,951) | | Loss before tax | (5,629) | (70,922) | | Loss for the year attributable to owners of the Company | (9,797) | (75,204) | - Total other comprehensive expenses amounted to **HKD 55.23 million**, primarily from revaluation losses on debt instruments[37](index=37&type=chunk)[51](index=51&type=chunk) [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2024, total assets were HKD 2.663 billion, with net assets at HKD 2.575 billion, primarily comprising investment properties and significant bank balances Summary of Consolidated Statement of Financial Position | Item (HKD '000) | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 2,335,833 | 2,501,791 | | Current assets | 347,365 | 251,814 | | **Liabilities** | | | | Non-current liabilities | 88,034 | 88,776 | | Current liabilities | 20,057 | 20,534 | | **Equity** | | | | Net assets / Total equity | 2,575,107 | 2,644,295 | - Non-current assets primarily include investment properties valued at approximately **HKD 2.029 billion** and interests in associates of approximately **HKD 259 million**[54](index=54&type=chunk) - Among current assets, bank balances and cash amounted to **HKD 288 million**, a significant increase from **HKD 171 million** last year[1](index=1&type=chunk) [Key Accounting Policies and Notes to Financial Statements](index=5&type=section&id=Key%20Accounting%20Policies%20and%20Notes%20to%20Financial%20Statements) Financial statements are prepared under HKFRS on a going concern basis, with no significant impact from new standards, segmenting business into property and financial investments primarily in Hong Kong, maintaining a stable dividend policy [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) Consolidated financial statements are prepared on a going concern basis under HKFRS, with no significant impact from newly applied standards, and the auditor's report is unqualified - The consolidated financial statements are prepared on a going concern basis and in accordance with Hong Kong Financial Reporting Standards[6](index=6&type=chunk)[57](index=57&type=chunk) - The auditor has issued an unqualified opinion on the Group's consolidated financial statements[5](index=5&type=chunk) - The Group first applied several new and revised Hong Kong Financial Reporting Standards this year, but the Directors do not expect these applications to have a significant impact on the consolidated financial statements in the foreseeable future[23](index=23&type=chunk)[45](index=45&type=chunk)[58](index=58&type=chunk) [Operating Segments](index=7&type=section&id=Operating%20Segments) The Group operates in property investment and financial investment segments, with property investment recording a HKD 21.65 million loss and financial investment a HKD 13.71 million profit, primarily in Hong Kong - The Group's operating activities are divided into two major segments: property investment and financial investment, which is also how information is reported to the chief operating decision maker for resource allocation and performance assessment[12](index=12&type=chunk) Summary of Segment Results (HKD '000) | Item | Property Investment | Financial Investment | Total | | :--- | :--- | :--- | :--- | | **2024** | | | | | Operating (Loss) Profit | (21,653) | 13,713 | (7,940) | | Net Assets | 2,461,275 | 113,832 | 2,575,107 | | **2023** | | | | | Operating Loss | (52,759) | (8,192) | (60,951) | | Net Assets | 2,428,228 | 216,067 | 2,644,295 | - As over **90%** of the Group's operating activities and assets are located in Hong Kong, no geographical analysis is presented[27](index=27&type=chunk) [Analysis of Revenue, Costs, and Expenses](index=7&type=section&id=Analysis%20of%20Revenue%2C%20Costs%2C%20and%20Expenses) Turnover, primarily from property rental, was HKD 56.03 million, with net other income at HKD 3.56 million, and operating loss reflecting employee costs of HKD 27.71 million and finance costs of HKD 1.47 million - Turnover refers to the total property rental income received and receivable, amounting to **HKD 56.03 million** for the current year (2023: **HKD 51.88 million**)[13](index=13&type=chunk)[24](index=24&type=chunk) Key Costs and Expenses (HKD '000) | Item | 2024 | 2023 | | :--- | :--- | :--- | | Total employee costs | 27,711 | 25,323 | | Finance costs | 1,467 | 1,148 | | Tax expense | 4,168 | 4,282 | - Net other income, gains and losses amounted to **HKD 3.56 million**, including management fee income of **HKD 3.95 million** and exchange losses of **HKD 2.42 million**[31](index=31&type=chunk) [Dividends and Loss Per Share](index=11&type=section&id=Dividends%20and%20Loss%20Per%20Share) Loss per share significantly improved to HKD 4.0 cents, and the Board proposed a final dividend of HKD 1.4 cents, maintaining the total annual dividend at HKD 1.7 cents per share - Loss per share is calculated based on the annual loss of approximately **HKD 9,797,000** and **277,232,883** ordinary shares in issue, resulting in a loss per share of **HKD 0.04**[89](index=89&type=chunk) Dividend Distribution (Per Share) | Dividend Type | 2024 (HKD cents) | 2023 (HKD cents) | | :--- | :--- | :--- | | Interim Dividend (Paid) | 0.3 | 0.5 | | Final Dividend (Proposed) | 1.4 | 1.2 | | **Total** | **1.7** | **1.7** | - The proposed final dividend is subject to approval at the Annual General Meeting on August 21, 2024, and is planned for payment on September 13, 2024[74](index=74&type=chunk) [Key Asset and Liability Items](index=12&type=section&id=Key%20Asset%20and%20Liability%20Items) At period-end, net trade and other receivables were HKD 9.75 million, with most rental receivables not overdue, while other payables and prepayments totaled HKD 5.47 million Trade and Other Receivables (HKD '000) | Item | 2024 | 2023 | | :--- | :--- | :--- | | Trade receivables (Rental receivables) | 2,150 | 1,109 | | Other receivables | 7,602 | 8,787 | | **Total** | **9,752** | **9,896** | - During the year, a provision for expected credit losses on trade receivables, net of reversal, was approximately **HKD 60,000**[91](index=91&type=chunk) Other Payables and Prepayments (HKD '000) | Item | 2024 | 2023 | | :--- | :--- | :--- | | Contract liabilities (Rental prepayments) | 2,324 | 2,993 | | Accrued expenses | 641 | 1,448 | | Other payables | 2,508 | 2,215 | | **Total** | **5,473** | **6,656** | [Corporate Governance and Other Information](index=14&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance Practices](index=17&type=section&id=Corporate%20Governance%20Practices) The Company complied with the Corporate Governance Code, with the Chairman and CEO roles combined, a structure deemed to ensure leadership consistency and operational efficiency, balanced by independent non-executive directors - The Company complied with all applicable provisions of the Corporate Governance Code during the year, with the only deviation being the non-segregation of the roles of Chairman and Chief Executive Officer[117](index=117&type=chunk) - Mr. Chan Hoi Sau, the Chairman and Managing Director, has held this position since the Company's inception, and the Board believes the current structure ensures consistency in leadership and optimal operational efficiency, with the presence of three independent non-executive directors safeguarding checks and balances[117](index=117&type=chunk) [Audit and Risk Management](index=17&type=section&id=Audit%20and%20Risk%20Management) The Audit Committee reviewed the audited annual accounts, and the Group maintains adequate risk management procedures, with the auditor confirming consistency between preliminary and audited financial statements - The Audit Committee, together with the Directors, reviewed the audited annual accounts and full-year results for the year ended March 31, 2024[107](index=107&type=chunk)[130](index=130&type=chunk) - The Group has established and maintains adequate risk management procedures, with active management participation to safeguard the interests of the Group and its shareholders[104](index=104&type=chunk)[114](index=114&type=chunk) - The Group's auditor, HLB Hodgson Impey Cheng Limited, confirmed that the financial figures in the preliminary results announcement are consistent with the amounts contained in the annual audited consolidated financial statements[125](index=125&type=chunk) [Share and Shareholder Information](index=14&type=section&id=Share%20and%20Shareholder%20Information) The Company did not trade its listed securities, maintained a public float of at least 25%, will suspend share registration for shareholder entitlements, and has 16 employees with annual remuneration reviews - During the year, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[87](index=87&type=chunk)[116](index=116&type=chunk) - The Company has maintained a sufficient public float of not less than **25%** of its issued shares[108](index=108&type=chunk)[118](index=118&type=chunk) - To determine shareholders' entitlements to attend the Annual General Meeting and receive the final dividend, the Company will suspend share registration during specified periods in August and September 2024, respectively[94](index=94&type=chunk)[128](index=128&type=chunk) - As of March 31, 2024, the Group had **16** employees, with total employee costs amounting to **HKD 27.70 million**[115](index=115&type=chunk)

Financial Performance - For the six months ended September 30, 2023, the company reported revenue of HKD 28,687,000, an increase of 11.8% compared to HKD 25,669,000 for the same period last year[9] - The gross profit for the same period was HKD 25,743,000, compared to HKD 24,730,000 in the previous year, reflecting a year-on-year increase of 4.1%[9] - The company's net profit attributable to shareholders for the period was HKD 10,506,000, a significant recovery from a loss of HKD 14,528,000 in the previous year[9] - The company’s earnings per share for the period was HKD 3.79 cents, recovering from a loss of HKD 5.24 cents in the previous year[9] - The group’s profit attributable to shareholders for the period is HKD 10.5 million, a turnaround from a loss in the previous comparable period[36] - The profit for the period was HKD 2,051,000, compared to a loss of HKD 7,406,000 in the previous year[77] - The operating profit for the six months ended September 30, 2023, was a loss of HKD 10,876,000, compared to a loss of HKD 14,528,000 for the same period in 2022, indicating an improvement in performance[68] Assets and Liabilities - The total assets as of September 30, 2023, amounted to HKD 2,680,215,000, compared to HKD 2,644,295,000 as of March 31, 2023[10] - The total assets as of September 30, 2023, amounted to HKD 2,753,605,000, with net assets of HKD 2,644,295,000, reflecting a stable financial position[62] - The group’s share of the net assets of associates was HKD 260,491,000 as of September 30, 2023, up from HKD 259,465,000 as of March 31, 2023[74] - The total liabilities for bank borrowings were HKD 45,958,000 as of September 30, 2023, down from HKD 47,312,000 as of March 31, 2023[91] - The total liabilities for property investment were HKD 63,033,000, while financial investment liabilities were HKD 46,210,000[56] Cash Flow and Dividends - The company reported a net cash inflow from investing activities of HKD 28,415,000, compared to a net outflow of HKD (16,479,000) in the previous year[42] - The company declared a proposed dividend of HKD 832,000 for the period, compared to HKD 4,158,000 in the previous year[40] - The company declared an interim dividend of HKD 0.3 cents per share for the six months ended September 30, 2023, down from HKD 0.5 cents per share in the same period of 2022, totaling approximately HKD 832,000[66] Investment Properties - The fair value loss on investment properties was HKD 17,280,000, compared to HKD 24,130,000 in the previous year, indicating a decrease in losses[9] - The fair value of investment properties as of September 30, 2023, was HKD 2,066,572,000, down from HKD 2,083,782,000 as of March 31, 2023, reflecting market fluctuations[69] - The average rental yield from investment properties increased to 2.78% as of September 30, 2023, compared to 2.49% as of March 31, 2023[102] - The occupancy rate for the period was 85.0%, a slight decrease from 89.7% in the previous comparable period[24] Financial Investments - The group recorded a fair value loss on debt instruments of HKD 46.1 million, significantly higher than HKD 39.3 million in the previous year[35] - The group’s financial investment income includes bank interest income of HKD 4.7 million, up from HKD 0.4 million in the previous year, while interest income from debt securities decreased to HKD 4.8 million from HKD 8.5 million[34] - The financial investment segment reported a loss of HKD 890,000 from financial assets measured at fair value through profit or loss[56] - The fair value changes of debt instruments recognized through other comprehensive income resulted in a loss of HKD (46,100,000) during the period[40] Governance and Compliance - The audit committee reviewed the accounting policies and practices adopted by the group, including the interim financial statements for the six months ending September 30, 2023[132] - The company has complied with all applicable provisions of the Corporate Governance Code as per the Listing Rules during the six-month period ending September 30, 2023, with specific deviations noted[133] - All directors confirmed compliance with the Standard Code for Securities Transactions by Directors during the same period[133] - The company adopted the Standard Code for Securities Transactions as its code of conduct for directors[133] Shareholding Structure - The company’s directors held a total of 204,662,534 shares, representing 73.82% of the issued share capital[53] - Major shareholder Chen Luoguoping holds 204,662,534 shares, representing 73.82% of the issued share capital[121] - Credit Suisse Trust Limited, as a trustee of Sow Pin Trust, holds 172,100,896 shares, accounting for 62.07% of the issued share capital[121] - Noranger Company Limited holds 146,278,000 shares, which is 52.76% of the issued share capital[121] - Yongzan Investment Limited holds 25,822,896 shares, representing 9.31% of the issued share capital[121] - Smartprint Development Limited, fully owned by Chen Haishou, holds 30,525,638 shares, which is 11.01% of the issued share capital[121] - Builtwin Ltd., fully owned by Hon Nicholas, holds 14,876,008 shares, accounting for 5.37% of the issued share capital[121] - The company maintained a public float of 25% as of the report date[131] Other Information - The company has not reported any significant changes or updates regarding its operations in the provided documents[134] - Future outlook and performance guidance were not detailed in the provided documents[134] - New product and technology development information was not included in the extracted content[134] - Market expansion and acquisition strategies were not mentioned in the provided documents[134] - Other new strategies were not discussed in the extracted content[134]

[Financial Performance Summary](index=1&type=section&id=Interim%20Results) [Consolidated Statement of Profit or Loss](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended September 30, 2023, the Group turned profitable, recording a profit attributable to shareholders of HK$10.5 million, compared to a loss of HK$14.5 million in the prior period, primarily due to increased turnover and reduced financial asset-related losses, with turnover growing 11.8% year-on-year to HK$28.7 million Key Consolidated Statement of Profit or Loss Metrics (For the six months ended September 30) | Metric | 2023 (HK$'000) | 2022 (HK$'000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Turnover | 28,687 | 25,669 | +11.8% | | Gross Profit | 25,743 | 24,730 | +4.1% | | Operating Profit (Loss) | 12,075 | (7,643) | Turned Profitable | | Profit (Loss) Before Tax | 12,464 | (11,807) | Turned Profitable | | Profit (Loss) for the Period Attributable to Owners of the Company | 10,506 | (14,528) | Turned Profitable | | Basic Earnings (Loss) Per Share | HK$3.79 cents | (HK$5.24 cents) | Turned Profitable | - The primary reasons for the turnaround to profitability include a narrower decline in investment property fair value, a significant reduction in revaluation losses on equity securities, and a substantial increase in impairment loss reversals on debt instruments[125](index=125&type=chunk)[109](index=109&type=chunk)[126](index=126&type=chunk) [Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of September 30, 2023, the Group's total assets were HK$2,680.2 million and net assets were HK$2,593.3 million, a slight decrease from HK$2,644.3 million as of March 31, 2023, with investment properties constituting the vast majority of non-current assets Financial Position Summary | Metric | September 30, 2023 (HK$'000) | March 31, 2023 (HK$'000) | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Investment Properties | 2,066,572 | 2,083,782 | -0.8% | | Total Assets | 2,702,577 | 2,753,605 | -1.9% | | **Liabilities** | | | | | Secured Bank Borrowings | 45,958 | 47,312 | -2.9% | | Total Liabilities | 109,243 | 109,310 | -0.1% | | **Equity** | | | | | Net Assets (Total Equity) | 2,593,334 | 2,644,295 | -1.9% | - The decrease in shareholders' funds was primarily due to a net loss of **HK$46.1 million** arising from the revaluation of 'debt instruments at fair value through other comprehensive income'[150](index=150&type=chunk) [Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended September 30, 2023, total shareholders' equity decreased from HK$2,644.3 million at the beginning of the period to HK$2,593.3 million at the end, primarily due to a HK$46.1 million fair value loss on debt instruments within 'other comprehensive expenses', partially offset by a HK$10.5 million profit for the period Summary of Changes in Equity (For the six months ended September 30, 2023) | Item | Amount (HK$'000) | | :--- | :--- | | Equity at beginning of period (as at April 1, 2023) | 2,644,295 | | Profit for the period | 10,506 | | Total other comprehensive expenses | (58,140) | | Of which: Net loss arising from revaluation of debt instruments | (46,100) | | Dividends paid | (3,327) | | Equity at end of period (as at September 30, 2023) | 2,593,334 | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Company Information and Basis of Preparation](index=6&type=section&id=1.%20General%20Information%20%26%202.%20Basis%20of%20Preparation) The Company is an investment holding company incorporated in Hong Kong, primarily engaged in property and securities investments, with these interim financial statements prepared in accordance with HKAS 34 'Interim Financial Reporting' and presented in HKD, reviewed by the audit committee but unaudited - The Group's principal activities are property investment and securities investment[43](index=43&type=chunk) - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[10](index=10&type=chunk) - The statements are unaudited by the Company's auditors but have been reviewed by the Company's Audit Committee[25](index=25&type=chunk) [Operating Segments](index=7&type=section&id=3.%20Operating%20Segments) The Group's operations are divided into 'Property Investment' and 'Financial Investment' segments, with property investment being the primary revenue source contributing all turnover and most operating profit, while financial investment recorded operating profit mainly from interest income and impairment reversals, but also generated other comprehensive losses from fair value changes Segment Results (For the six months ended September 30, 2023) | Metric (HK$'000) | Property Investment | Financial Investment | Total | | :--- | :--- | :--- | :--- | | Turnover | 28,687 | – | 28,687 | | Segment Operating Profit (Loss) | (1,035) | 13,110 | 12,075 | | Profit (Loss) for the period | (1,867) | 12,373 | 10,506 | Segment Assets and Liabilities (As at September 30, 2023) | Metric (HK$'000) | Property Investment | Financial Investment | Total | | :--- | :--- | :--- | :--- | | Segment Assets | 2,653,865 | 48,712 | 2,702,577 | | Segment Liabilities | (63,033) | (46,210) | (109,243) | | Net Assets | 2,590,832 | 2,502 | 2,593,334 | [Notes on Key Financial Items](index=9&type=section&id=Notes%20on%20Key%20Financial%20Items) This section details the composition of key financial data, with turnover entirely from rental income, growing 11.8% year-on-year, and the Board declared an interim dividend of HK$0.3 cents per share; investment properties recorded fair value losses due to market revaluation, and the financial asset portfolio, primarily debt instruments, saw significant disposals and fair value losses, alongside substantial impairment reversals [Turnover and Operating Profit](index=9&type=section&id=4.%20Turnover%20%26%205.%20Operating%20Profit%20(Loss)) Turnover for the period was approximately HK$28.7 million, entirely from property rental income, representing an 11.8% year-on-year increase, with operating profit calculated after deducting items such as employee costs, depreciation, and fair value losses on financial assets - Turnover from rental income was approximately **HK$28.7 million**, an increase from **HK$25.7 million** in the prior period[53](index=53&type=chunk) - Key items deducted in calculating operating profit include total employee costs of **HK$12.3 million** and a net reversal of impairment losses on debt instruments at fair value through other comprehensive income of **HK$13.7 million**[55](index=55&type=chunk) [Dividends and Earnings Per Share](index=11&type=section&id=8.%20Interim%20Dividends%20%26%209.%20Earnings%20(Loss)%20Per%20Share) The Board declared an interim dividend of HK$0.3 cents per share, totaling approximately HK$0.832 million, a decrease from HK$0.5 cents per share in the prior period, with basic earnings per share at HK$3.79 cents, compared to a loss of HK$5.24 cents per share last year Interim Dividends | Item | For the six months ended September 30, 2023 | For the six months ended September 30, 2022 | | :--- | :--- | :--- | | Interim dividend per share | HK$0.3 cents | HK$0.5 cents | | Total dividends | approximately HK$832,000 | approximately HK$1,386,000 | - Earnings per share are calculated based on a profit for the period of approximately **HK$10,506,000** and 277,232,883 issued shares[60](index=60&type=chunk) [Investment Properties and Financial Assets](index=11&type=section&id=10.%20Investment%20Properties%20%26%2014.%20Financial%20Assets) At period-end, investment properties had a fair value of HK$2.07 billion, recording a fair value loss of HK$17.28 million during the period; regarding financial assets, the Group significantly reduced its holdings of debt instruments at fair value through other comprehensive income, but recognized approximately HK$13.75 million in impairment reversals - Investment properties recorded a fair value loss of **HK$17,280,000** during the period[61](index=61&type=chunk) - Financial assets at fair value through other comprehensive income, primarily debt instruments, decreased from approximately **HK$173 million** at the beginning of the period to approximately **HK$106 million** at the end[18](index=18&type=chunk)[90](index=90&type=chunk)[92](index=92&type=chunk) - A net reversal of impairment losses on debt instruments of approximately **HK$13,746,000** was recognized during the period[93](index=93&type=chunk) [Secured Bank Borrowings](index=15&type=section&id=17.%20Secured%20Bank%20Borrowings) As of September 30, 2023, the Group's total secured bank borrowings were HK$45.96 million, slightly lower than HK$47.31 million at the beginning of the period, with most borrowings being long-term loans over five years at annual interest rates ranging from 2.79% to 3.27% Carrying Amount of Secured Bank Borrowings | Repayment Period | September 30, 2023 (HK$'000) | March 31, 2023 (HK$'000) | | :--- | :--- | :--- | | Within one year | 2,758 | 2,763 | | More than one year but not exceeding five years | 11,978 | 11,922 | | More than five years | 31,222 | 32,627 | | **Total** | **45,958** | **47,312** | [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) [Financial Review](index=18&type=section&id=Financial%20Review) The Group's financial position is robust, having successfully turned profitable this period, with revenue growth primarily driven by increased rental income from property renewals; while interest income from debt securities decreased due to portfolio reduction, revaluation losses on equity securities significantly narrowed, and the Group maintains ample liquidity, with its current ratio improving from 12.3 times to 12.9 times and net bank balances and cash increasing to HK$195 million - Revenue increased by **11.8%** to **HK$28.7 million**, primarily due to increased rental income upon property renewals[105](index=105&type=chunk) - A profit attributable to shareholders of **HK$10.5 million** was recorded for the period, compared to a loss in the prior period[107](index=107&type=chunk) Liquidity Ratios | Metric | September 30, 2023 | March 31, 2023 | | :--- | :--- | :--- | | Current Ratio | 12.9 times | 12.3 times | | Net bank balances and cash | HK$195.3 million | HK$161.4 million | [Business Review and Outlook](index=20&type=section&id=Business%20Review) The business review indicates that property investment benefited from economic recovery with increased rental income, though occupancy slightly decreased to 85.0%; in financial investments, the Group reduced its debt securities portfolio by 38.8% to mitigate risk, and despite global economic uncertainties, the Group, with its strong financial foundation and prudent financial management, will continue to navigate challenges and seek quality investment opportunities - **Property Investment**: Occupancy rate was **85.0%**, a slight decrease of **4.7%** from **89.7%** in the previous comparable period[134](index=134&type=chunk) - **Financial Investment**: To improve liquidity and reduce risk, the Group disposed of certain debt investments, reducing the debt securities portfolio by **38.8%** to **HK$105.8 million** compared to the beginning of the year[154](index=154&type=chunk)[155](index=155&type=chunk) - **Outlook**: The Group maintains a strong financial foundation and low gearing, remaining vigilant to challenges and seizing investment opportunities as they arise[139](index=139&type=chunk)[157](index=157&type=chunk) [Corporate Governance](index=22&type=section&id=Corporate%20Governance) The Group complied with the Corporate Governance Code in the Listing Rules during the reporting period, with the sole deviation being the roles of Chairman and Managing Director (Chief Executive Officer) held by the same individual, Mr. Chan Hoi Sau, which the Board believes ensures consistent leadership and efficiency, and the Audit Committee has reviewed these interim financial statements - The Audit Committee has reviewed the accounting policies and practices with management and reviewed the unaudited interim financial statements for the six months ended September 30, 2023[142](index=142&type=chunk) - The Group complied with the Corporate Governance Code, except that the roles of Chairman and Chief Executive Officer were not separated, with Mr. Chan Hoi Sau holding both positions[143](index=143&type=chunk)[160](index=160&type=chunk)

Financial Performance - Revenue increased by 15% year-over-year, driven by strong sales in the North American market [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8%, primarily due to increased marketing and R&D investments [3]. Market Expansion - The company successfully entered the European market, with initial sales exceeding expectations [4]. - A new distribution center was opened in Asia to support regional growth [5]. - Strategic partnerships were formed with local retailers to enhance market penetration [6]. Product Development - Launched three new products in the tech category, which received positive customer feedback [7]. - R&D investment increased by 20% to accelerate innovation and product differentiation [8]. - A new patent was granted for a proprietary technology, strengthening the company's competitive edge [9]. Operational Efficiency - Implemented a new ERP system to streamline operations and improve data accuracy [10]. - Reduced production costs by 5% through process optimization and automation [11]. - Supply chain disruptions were minimized, ensuring timely delivery of products [12]. Corporate Social Responsibility - The company achieved a 30% reduction in carbon emissions compared to the previous year [13]. - Launched a community outreach program focused on education and skill development [14]. - Increased diversity in the workforce, with a 15% rise in female leadership roles [15]. Shareholder Value - Declared a quarterly dividend of $0.50 per share, reflecting strong financial health [16]. - Share buyback program was initiated, aiming to repurchase 5% of outstanding shares [17]. - Stock price increased by 18% over the past six months, outperforming the market average [18].