[Company Information](index=2&type=section&id=Company%20Information) The report details basic company information for Wing Fat Property Enterprises Limited, including its board, auditors, and key administrative contacts - The report provides basic company information for Wing Fat Property Enterprises Limited (Stock Code: 0287), covering its board, auditors, legal advisors, and key administrative contacts[5](index=5&type=chunk)[6](index=6&type=chunk) [Chairman's Statement](index=3&type=section&id=Chairman%27s%20Statement) [Results and Dividends](index=4&type=page&id=Results%20and%20Dividends) Group turnover rose 7.0% to HKD 21.45 million, but net loss widened to HKD 74.72 million due to fair value losses; a HKD 0.12 final dividend is proposed 2025 Fiscal Year Performance Overview | Metric | FY2025 (HKD) | FY2024 (HKD) | YoY Change | | :--- | :--- | :--- | :--- | | **Turnover** | 21,447,000 | 20,053,000 | +7.0% | | **Loss for the Year** | (74,716,000) | (49,748,000) | +50.2% | | **Fair Value Loss on Investment Properties** | (108,906,000) | (48,900,000) | +122.7% | | **Interim Dividend (per share)** | 2 cents | - | - | | **Proposed Final Dividend (per share)** | 12 cents | - | - | [Business Review](index=4&type=page&id=Business%20Review) Property leasing income increased by 4.2%, stock investments yielded fair value gains, while a redevelopment project was suspended, and all bank loans were repaid - Property leasing segment revenue increased by **4.2%** to approximately **HKD 15.26 million**, driven by higher occupancy rates[11](index=11&type=chunk) - The redevelopment project at **31 Fuk Tsun Street** has been suspended due to high interest rates, challenging economic recovery, and weak property market sentiment[11](index=11&type=chunk) - Stock investment business recorded a fair value gain of approximately **HKD 18.50 million**, reversing last year's **HKD 15.09 million loss**, with the listed securities portfolio reaching **HKD 127 million** in market value[15](index=15&type=chunk) - All bank loans have been fully repaid, reducing the gearing ratio from **1.5%** to **zero**, with cash holdings of approximately **HKD 132 million** at period-end[21](index=21&type=chunk) [Risks and Uncertainties](index=8&type=page&id=Risks%20and%20Uncertainties) The Group faces diverse risks including economic volatility, high interest rates, geopolitical tensions, regulatory changes, and market fluctuations - Key risks include economic volatility, high interest rates, regulatory changes, evolving consumption patterns, project financing challenges, securities price fluctuations, and climate change[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk)[34](index=34&type=chunk) [Outlook](index=11&type=page&id=Outlook) Future business faces challenges from geopolitical uncertainties, trade wars, and northbound consumption, with property and securities markets expected to remain weak - Future business faces increased challenges from geopolitical uncertainties, trade wars, and the impact of northbound consumption on local industries[40](index=40&type=chunk) - The Hong Kong property market is anticipated to remain weak, and the securities market volatile; the Group will prudently assess market conditions, interest rates, and lending policies for optimal shareholder outcomes[40](index=40&type=chunk) [Corporate Governance Report](index=11&type=section&id=Corporate%20Governance%20Report) [Corporate Governance and the Board](index=12&type=page&id=Corporate%20Governance) The company maintains high corporate governance standards, with its eight-member Board, including independent non-executive directors, holding four meetings with full attendance - The company has complied with all Corporate Governance Code provisions, except for the absence of a Chief Executive Officer and directors' litigation insurance[46](index=46&type=chunk) - The Board consists of **8 directors**, including **2 executive**, **3 non-executive**, and **3 independent non-executive directors**, fulfilling the independent director ratio requirement[49](index=49&type=chunk)[51](index=51&type=chunk) - The Board convened **four meetings** during the reporting year, achieving **100% attendance** from all directors[50](index=50&type=chunk) [Board Committees](index=17&type=page&id=Board%20Committees) The company operates Remuneration, Nomination, Corporate Governance, and Audit Committees, each chaired by an independent non-executive director, overseeing key areas - The Remuneration Committee, composed of **three independent non-executive directors** and **one executive director**, advises the Board on director and senior management remuneration policies[62](index=62&type=chunk) - The Nomination Committee, consisting of **three independent non-executive directors** and **one executive director**, formulates nomination policies and recommends director appointments and succession plans[66](index=66&type=chunk) - The Audit Committee, comprising **three independent non-executive directors** and **one non-executive director**, oversees external auditors, reviews financial statements, and assesses internal control systems[80](index=80&type=chunk) [Risk Management and Internal Control](index=23&type=page&id=Risk%20Management%20and%20Internal%20Control) The Board oversees the Group's risk management and internal control systems, which include a three-lines-of-defense structure, deemed effective and adequate - The Group's risk governance structure employs **three lines of defense**: a risk management team, an Independent Professional Advisor (IPA), and the Board and Audit Committee[87](index=87&type=chunk) - The Board, via the Audit Committee, reviewed the risk management and internal control systems for FY2025, finding them **effective and adequate** with **no significant weaknesses**[88](index=88&type=chunk) [Shareholder Rights and Communication](index=25&type=page&id=Shareholder%20Rights) The report details shareholder rights for meetings and resolutions, outlines the company's communication policy, and confirms a stable dividend policy - The report outlines statutory procedures for shareholders to convene general meetings, propose resolutions, and circulate statements[93](index=93&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) - The company maintains a stable dividend policy, proposing an annual interim dividend of **HKD 2 cents** and a final dividend of **HKD 12 cents** per share, with potential for special dividends[106](index=106&type=chunk)[107](index=107&type=chunk) [Environmental, Social and Governance Report](index=28&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) [Environment](index=29&type=page&id=Environment) The Group, primarily in property and securities investment, has a small direct environmental impact, focusing on resource efficiency and reducing GHG emissions Environmental Performance Data | Metric | Unit | FY2025 | FY2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | **Total GHG Emissions** | tonnes of CO2 equivalent | 8.03 | 8.72 | -7.9% | | **Indirect Electricity Consumption** | kWh | 13,350 | 14,780 | -9.7% | | **Total Paper Consumption** | kg | 595.9 | 590.2 | +1.0% | - The Group has assessed climate change risks and is committed to reducing emissions through guidelines to mitigate potential impacts[119](index=119&type=chunk) [Social](index=34&type=page&id=Social) The Group upholds fair employment, prohibits child/forced labor, ensures a safe workplace, and supports employee training, with four full-time employees and zero turnover Employee Profile (as of March 31, 2025) | Metric | Value | | :--- | :--- | | **Number of Employees** | 4 people | | **By Gender** | Male: 2, Female: 2 | | **Employee Turnover Rate** | 0% | | **Average Length of Service** | 16.8 years | - The Group strictly prohibits child or forced labor and complies with relevant labor laws, with **no violations** identified during the year[130](index=130&type=chunk) - The Group is committed to a healthy and safe working environment, reporting **no work-related fatalities or reportable injuries** in the past three years[135](index=135&type=chunk) [Operating Practices and Community](index=36&type=page&id=Operating%20Practices%20and%20Community) The Group prioritizes supply chain management, implements anti-corruption measures with no incidents, and significantly increased volunteer hours this year - The Group has established anti-corruption codes and whistleblowing programs, reporting **no violations or confirmed corruption incidents** during the year[141](index=141&type=chunk) - Group employees and directors contributed approximately **207 hours** of volunteer service, a significant increase from **95 hours** last year[142](index=142&type=chunk) [Directors' Report](index=37&type=section&id=Directors%27%20Report) [Principal Activities, Results and Dividends](index=38&type=page&id=Principal%20Activities%20and%20Results) The Group's core activities remained unchanged, with an interim dividend of HKD 0.02 paid and a final dividend of HKD 0.12 proposed - The Group's principal activities, including property and stock investment, development, and securities trading, remained unchanged during the year[144](index=144&type=chunk) - An interim dividend of **HKD 2 cents** per share has been paid, with a final dividend of **HKD 12 cents** per share proposed[148](index=148&type=chunk) [Directors' and Major Shareholders' Interests](index=39&type=page&id=Directors%27%20and%20Major%20Shareholders%27%20Interests) The report details the shareholdings of directors and major shareholders as of March 31, 2025, with key directors holding a majority stake Directors' Shareholdings (as of March 31, 2025) | Director Name | Capacity | Total Shares Held | % of Issued Share Capital | | :--- | :--- | :--- | :--- | | **Mr. Ng Tai Wai** | Executive Director | 7,269,577 | 18.2% | | **Mr. Ng Tai Yin** | Executive Director | 14,686,423 | 36.7% | | **Mr. So Kwok Leung** | Non-Executive Director | 5,961,077 | 14.9% | | **Mr. So Kwok Wai** | Non-Executive Director | 5,025,923 | 12.6% | [Major Customers and Suppliers](index=42&type=page&id=Major%20Customers%20and%20Suppliers) The property leasing business exhibits high customer concentration, with the largest tenant contributing 36% and the top five 75% of leasing turnover - The largest tenant contributed **36%** of property leasing turnover, with the top five tenants collectively accounting for **75%**[169](index=169&type=chunk) [Directors and Senior Management](index=42&type=section&id=Directors%20and%20Senior%20Management) [Biographies of Directors and Senior Management](index=43&type=page&id=Biographies%20of%20Directors%20and%20Senior%20Management) This section provides detailed biographies of the company's executive, non-executive, and independent non-executive directors, and company secretary - Executive Director **Mr. Ng Tai Wai** serves as Chairman, overseeing corporate policy and governance, while **Mr. Ng Tai Yin** manages administration, IT, and finance[176](index=176&type=chunk)[177](index=177&type=chunk) - Independent non-executive directors **Dr. Ng Chi Yeung**, **Ms. Chan Suet Fei**, and **Mr. Hsing Pei Neng** bring extensive expertise in law, company secretarial, and accounting, serving key roles on Board committees[179](index=179&type=chunk)[180](index=180&type=chunk) [Independent Auditor's Report](index=44&type=section&id=Independent%20Auditor%27s%20Report) [Audit Opinion and Key Audit Matters](index=45&type=page&id=Audit%20Opinion%20and%20Key%20Audit%20Matters) The auditor issued an unmodified opinion, with "Valuation of Investment Properties" identified as the sole key audit matter due to its subjectivity - The auditor issued an **unmodified audit opinion**, confirming the consolidated financial statements present a true and fair view of the Group's financial position and performance under Hong Kong Financial Reporting Standards[183](index=183&type=chunk) - "Valuation of Investment Properties" is a key audit matter due to its inherent subjectivity and significant management judgment, with experts engaged to assess valuation methods and assumptions[186](index=186&type=chunk)[188](index=188&type=chunk)[191](index=191&type=chunk) [Consolidated Financial Statements](index=48&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=49&type=page&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Group turnover increased by 7.0% to HKD 21.45 million, but a HKD 109 million fair value loss led to a HKD 74.72 million loss attributable to owners Consolidated Statement of Profit or Loss Summary | Metric (HKD) | FY2025 | FY2024 | | :--- | :--- | :--- | | **Turnover** | 21,446,588 | 20,052,902 | | **Fair Value Loss on Investment Properties** | (108,906,023) | (48,900,000) | | **Loss Before Income Tax** | (73,076,584) | (48,318,092) | | **Loss Attributable to Owners of the Company** | (74,715,680) | (49,748,225) | | **Loss Per Share (Basic and Diluted)** | (1.87) | (1.24) | [Consolidated Statement of Financial Position](index=49&type=page&id=Consolidated%20Statement%20of%20Financial%20Position) Total assets decreased to HKD 1.015 billion, with net assets at HKD 1.008 billion, primarily comprising investment properties and cash, with zero bank borrowings Consolidated Statement of Financial Position Summary | Metric (HKD) | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | **Non-Current Assets** | 814,939,559 | 913,523,136 | | *Of which: Investment Properties* | *747,800,000* | *856,700,000* | | **Current Assets** | 199,641,152 | 186,734,008 | | *Of which: Cash and Bank Balances* | *132,365,439* | *140,603,978* | | **Total Assets** | **1,014,580,711** | **1,100,257,144** | | **Current Liabilities** | 4,986,695 | 19,790,620 | | *Of which: Bank Borrowings* | *–* | *16,295,139* | | **Non-Current Liabilities** | 1,836,369 | 2,929,044 | | **Total Liabilities** | **6,823,064** | **22,719,664** | | **Net Assets / Total Equity** | **1,007,757,647** | **1,077,537,480** | [Consolidated Statement of Changes in Equity](index=50&type=page&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity decreased from HKD 1.078 billion to HKD 1.008 billion, primarily due to loss and dividends, partially offset by other comprehensive income - Total shareholders' equity decreased by approximately **HKD 69.78 million**, from **HKD 1.078 billion** to **HKD 1.008 billion**[205](index=205&type=chunk) - Equity changes were primarily driven by a **HKD 74.72 million** loss, **HKD 5.46 million** in dividends paid, and **HKD 10.40 million** in other comprehensive income[205](index=205&type=chunk) [Consolidated Statement of Cash Flows](index=51&type=page&id=Consolidated%20Statement%20of%20Cash%20Flows) Net cash from operations was HKD 9.99 million, investing HKD 3.79 million, while financing resulted in a HKD 22.02 million outflow, leading to a net cash decrease Consolidated Statement of Cash Flows Summary | Metric (HKD) | FY2025 | FY2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | 9,992,246 | 10,763,616 | | **Net Cash from Investing Activities** | 3,789,139 | 2,599,489 | | **Net Cash Used in Financing Activities** | (22,019,924) | (7,015,501) | | **Net (Decrease)/Increase in Cash and Cash Equivalents** | (8,238,539) | 6,347,604 | | **Cash and Cash Equivalents at Year-End** | 132,365,439 | 140,603,978 | [Notes to the Consolidated Financial Statements (Selected)](index=52&type=page&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Notes detail segment performance, fair value declines in investment properties, full repayment of bank loans, and capital commitments for redevelopment projects - **Segment Results**: Securities investment recorded a **HKD 23.15 million** profit, while property leasing incurred a **HKD 98.02 million** loss due to fair value declines in investment properties[266](index=266&type=chunk) - **Investment Properties**: Fair value decreased from **HKD 857 million** to **HKD 748 million**, resulting in a **HKD 109 million** fair value loss[287](index=287&type=chunk) - **Bank Borrowings**: All **HKD 16.30 million** in secured bank loans as of March 31, 2024, have been fully repaid, with **no outstanding bank borrowings** at period-end[302](index=302&type=chunk) - **Capital Commitments**: Contracted but unprovided capital expenditure for investment property redevelopment totaled **HKD 12.05 million**[315](index=315&type=chunk) [Group Property Information](index=97&type=section&id=Group%20Property%20Information) [Property Portfolio Overview](index=98&type=page&id=Property%20Portfolio%20Overview) This section details the Group's property portfolio, noting the postponement of two redevelopment projects due to unfavorable market conditions - The **Fuk Tsun Street** and **Ma Tau Chung Road** projects are on hold due to high interest rates and a weak property market; completion is anticipated by **April 2031** and **September 2034**, respectively, if conditions improve[347](index=347&type=chunk) - The Group holds **9 investment properties**, primarily commercial and industrial assets in Kowloon and New Territories, Hong Kong[348](index=348&type=chunk) [Five-Year Financial Summary](index=99&type=section&id=Five-Year%20Financial%20Summary) [Five-Year Financial Trends](index=100&type=page&id=Five-Year%20Financial%20Trends) Turnover remained stable, but profitability declined with increasing losses for three consecutive years, and net assets decreased from HKD 1.191 billion to HKD 1.008 billion Five-Year Key Financial Indicators (HKD thousands) | Fiscal Year Ended March 31 | 2021 | 2022 | 2023 | 2024 | 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Turnover** | 20,848 | 18,911 | 19,240 | 20,053 | 21,447 | | **Profit/(Loss) for the Year** | (3,671) | 13,485 | (36,227) | (49,748) | (74,716) | | **Net Assets** | 1,190,550 | 1,191,431 | 1,143,042 | 1,077,537 | 1,007,757 | [Notice of Annual General Meeting](index=100&type=section&id=Notice%20of%20Annual%20General%20Meeting) [Meeting Matters](index=101&type=page&id=Meeting%20Matters) The AGM on September 3, 2025, will cover reviewing accounts, declaring a HKD 0.12 final dividend, re-electing directors, re-appointing auditors, and granting share allotment mandate - The Annual General Meeting is scheduled for **September 3, 2025**[351](index=351&type=chunk) - Key resolutions include adopting annual accounts, declaring a **HKD 12 cents** final dividend, re-electing **Mr. So Kwok Leung**, **Mr. So Kwok Wai**, and **Dr. Ng Chi Yeung** as directors, and re-appointing **BDO Limited** as auditor[353](index=353&type=chunk)[357](index=357&type=chunk)

Core Viewpoint - ST Shuntian (600287) has successfully removed the risk warning label and will resume trading under the name Jiangsu Shuntian starting July 16, 2024, following a self-assessment confirming compliance with the conditions for removal [1][2]. Group 1: Stock and Trading Information - The stock will be suspended for one day on July 15, 2024, and will resume trading with a change in the daily price fluctuation limit from 5% to 10% [1]. - The company was under risk warning due to an administrative penalty from the China Securities Regulatory Commission, which has now been resolved [1]. Group 2: Financial Adjustments and Liabilities - The company has corrected accounting errors and restated financial reports for the years 2009-2021 and the balance sheets for 2009-2022 and Q3 2023 [1]. - As of the announcement date, the company has recognized a provision for investor claims amounting to 3.77 million yuan, with an estimated liability of 331.20 million yuan recorded in the 2024 annual report [2]. Group 3: Business Segments and Revenue - The company's main business segments include commodity circulation, garment processing, and chemical warehousing, generating revenues of 3.069 billion yuan, 124 million yuan, and 20 million yuan respectively in 2024 [2]. - The gross profit margins for these segments are 14%, 3.56%, and 16.81% respectively, with domestic revenue at 1.203 billion yuan and overseas revenue at 2.009 billion yuan [2]. Group 4: Recent Performance - In Q1 2025, the company reported a revenue of 643 million yuan and a net profit attributable to shareholders of 8.27 million yuan [3].

Financial Performance - The company's revenue for the year ended March 31, 2025, was HKD 21,446,588, an increase of 6.9% compared to HKD 20,052,902 for the previous year[4] - Other income and gains for the same period amounted to HKD 22,292,797, a significant recovery from a loss of HKD 11,596,265 in the prior year[4] - The company reported a pre-tax loss of HKD 73,076,584, compared to a loss of HKD 48,318,092 in the previous year, indicating a deterioration in performance[4] - The net loss attributable to shareholders for the year was HKD 74,715,680, compared to HKD 49,748,225 in the previous year, reflecting an increase in losses of approximately 50.2%[4] - The total comprehensive loss for the year was HKD 64,319,706, compared to a loss of HKD 59,989,672 in the previous year[4] - The net profit before tax loss for the year 2025 was HKD (73,076,584), compared to HKD (48,318,092) in 2024, indicating a significant increase in losses[17] - The group recorded a loss of approximately HKD 74,716,000, an increase of about HKD 24,967,000 (or 50.2%) compared to the previous year, primarily due to increased fair value losses on investment properties[43] Assets and Liabilities - The company's total assets decreased to HKD 1,009,594,016 from HKD 1,080,466,524, representing a decline of approximately 6.6%[5] - The total liabilities also decreased from HKD 22,719,664 in 2024 to HKD 6,823,064 in 2025, a reduction of about 70%[20] - The fair value of investment properties decreased to HKD 747,800,000 from HKD 856,700,000, reflecting a loss of approximately 12.7%[5] - The fair value of investment properties decreased from HKD 856,700,000 in 2024 to HKD 747,800,000 in 2025, reflecting a decrease of approximately 12.7%[27] - The group's total trade and other receivables increased from HKD 778,692,000 in 2024 to HKD 833,517,000 in 2025, an increase of approximately 7.0%[33] - The expected credit loss provision decreased from HKD 42,500,000 in 2024 to HKD 32,500,000 in 2025, a reduction of about 23.5%[34] Cash and Dividends - The company’s cash and bank deposits decreased to HKD 132,365,439 from HKD 140,603,978, a decline of approximately 5.3%[5] - The company declared dividends totaling HKD 800,000 for the year, consistent with the previous year[7] - The proposed final dividend per ordinary share remains at HKD 0.12 for both 2024 and 2025, totaling HKD 4,800,000[36] - Dividend distribution included an interim dividend of HKD 0.02 per share totaling HKD 800,000, and a proposed final dividend of HKD 0.12 per share totaling HKD 4,800,000[40] - The group’s dividend income increased by approximately HKD 774,000 (or about 14.3%) to approximately HKD 6,185,000[50] Investment Properties - The investment property rental income for 2025 was HKD 15,262,070, up from HKD 14,642,587 in 2024, reflecting a growth of 4.23%[22] - The group recorded a profit of approximately HKD 10,883,000 in the leasing segment, an increase of about HKD 427,000 (or 4.1%) compared to the previous year[45] - The fair value loss on investment properties was approximately HKD 108,906,000, compared to HKD 48,900,000 in the previous year, with the fair value of investment properties at HKD 747,800,000[47] - The group has suspended the reconstruction project at Fuk Chuen Street to minimize negative impacts on shareholder equity due to unfavorable market conditions[46] Financial Reporting Standards - The adoption of revised Hong Kong Financial Reporting Standards has no significant impact on the group's financial performance or position for the current or prior years[10] - The amendments clarify that liabilities are classified as current or non-current based on rights existing at the reporting date, with no expected impact on the group's classification of liabilities[11] - The group has no non-current liabilities with covenants, maintaining the classification of liabilities unchanged upon the initial application of the amendments[12] - New and revised Hong Kong Financial Reporting Standards that have been issued but not yet effective are expected to have no significant impact on the group's accounting policies and financial position, except for HKFRS 18[14] - HKFRS 18 is anticipated to change the presentation and disclosure of the consolidated financial statements significantly, affecting classifications and subtotals in the income statement[14] - The group has not early adopted any new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective[15] Market Conditions and Future Outlook - The group anticipates continued pressure on property values and a volatile securities market due to geopolitical uncertainties and trade wars, with a conservative lending policy from banks towards property developers[60] - The group will continue to monitor market conditions, interest rate trends, and bank lending attitudes to make decisions that align with shareholder interests[60] Securities Investments - The fair value of listed securities increased from HKD 49,977,331 in 2024 to HKD 60,373,305 in 2025, representing an increase of approximately 20.0%[29] - The market value of the group's listed securities investment portfolio was approximately HKD 126,807,000, up from HKD 95,328,000 in the previous year[50] - The group has not used any financial instruments for hedging purposes in the fiscal years ending March 31, 2025, and 2024[57] - The total fair value of the top five trading securities is HKD 66,433,000, with a profit/loss ratio of 6.5% and total dividend income of HKD 3,176,000[53] - The top five long-term securities investments include Hong Kong Exchanges and Clearing Limited with a fair value of HKD 16,043,000, accounting for 1.6% of total assets, and generating dividend income of HKD 431,000[51]

Group 1 - Anner plans to change its controlling shareholder to Shenzhen Xinchuangyuan Investment Partnership, with Huang Tao as the actual controller [2][5][7] - The share transfer agreement involves Cao Zhang and Wang Jianqing transferring 4.78% and 8.25% of their shares respectively to Xinchuangyuan at a price of 15.21 yuan per share, totaling 422 million yuan [5][7] - Following the transaction, Xinchuangyuan will hold 13.03% of Anner's shares and gain corresponding voting rights, while Cao Zhang will retain 14.35% of the shares but waive voting rights [7][8] Group 2 - Xinchuangyuan was established on May 27, with a registered capital of 395 million yuan, primarily engaged in investment management [8][9] - Huang Tao, the actual controller of Xinchuangyuan, is also the actual controller of Century Jinyuan Group, which has previously been involved in acquiring control of Wantu Technology [3][9] - Anner's stock price surged by 17.69% from May 28 to May 30, coinciding with the announcement of the change in control [13] Group 3 - Anner has been experiencing a decline in revenue, with a reported 20.70% decrease in revenue from 2023 to 2024, and a net loss of 114.66 million yuan in 2024 [14] - The company plans to adjust its store structure and enhance its online presence to develop a "super comfortable Anner" brand image over the next 3 to 5 years [15]

Core Insights - ST Shun Tian (600287.SH) reported a total operating revenue of 643 million yuan for Q1 2025, ranking 9th among disclosed peers, which is a decrease of 155 million yuan or 19.37% year-on-year [1] - The net profit attributable to shareholders was 8.27 million yuan, ranking 7th among peers, down by 3.23 million yuan or 28.08% compared to the same period last year [1] - The net cash inflow from operating activities was 83.58 million yuan, ranking 3rd among peers, showing an increase of 117 million yuan year-on-year, marking two consecutive years of growth [1] Financial Ratios - The latest debt-to-asset ratio is 24.44%, ranking 1st among peers, a decrease of 3.97 percentage points from the previous quarter and a reduction of 19.51 percentage points year-on-year [3] - The latest gross profit margin is 17.35%, ranking 4th among peers, an increase of 3.04 percentage points from the previous quarter and an increase of 1.82 percentage points year-on-year, achieving four consecutive years of growth [3] - The latest return on equity (ROE) is 0.39%, ranking 8th among peers, down by 0.26 percentage points year-on-year [3] Earnings Per Share and Turnover Ratios - The diluted earnings per share is 0.02 yuan, ranking 6th among peers, a decrease of 0.01 yuan or 28.14% year-on-year [3] - The latest total asset turnover ratio is 0.21 times, ranking 9th among peers, a decrease of 0.02 times year-on-year, down by 9.90% [3] - The latest inventory turnover ratio is 1.46 times, ranking 12th among peers, a decrease of 0.02 times year-on-year, down by 1.68% [3] Shareholder Structure - The number of shareholders is 17,700, with the top ten shareholders holding 253 million shares, accounting for 57.65% of the total share capital [3] - The largest shareholder is Jiangsu Suhao Euro-Interconnect Technology Group Co., Ltd., holding 52.49% [3]

Revenue and Income - Revenue for the six months ended September 30, 2024, was HKD 12,261,000, an increase of 3.8% compared to HKD 11,815,000 for the same period in 2023[3]. - Other income and gains rose to HKD 2,116,000, up 54.2% from HKD 1,372,000 year-on-year[3]. - Total revenue for the six months ended September 30, 2024, was HKD 12,261,000, compared to HKD 11,815,000 for the same period in 2023, representing an increase of 3.77%[29]. - Rental income and dividend income from listed securities amounted to HKD 7,597,000 for the six months ended September 30, 2024, up from HKD 7,213,000 in 2023, reflecting a growth of 5.33%[29]. - The group’s securities investment segment reported revenue of HKD 4,664,000 for the six months ended September 30, 2024, compared to HKD 4,602,000 in 2023, indicating a growth of 1.35%[24]. - The property leasing segment generated revenue of HKD 7,585,000 for the six months ended September 30, 2024, compared to HKD 7,213,000 in 2023, marking an increase of 5.14%[24]. - Dividend income increased by approximately HKD 62,000 (or 1.3%) to about HKD 4,664,000 compared to the same period last year[85]. Loss and Financial Performance - Loss before tax decreased significantly to HKD 10,198,000 from HKD 30,481,000, representing a reduction of 66.6%[3]. - The net loss attributable to shareholders for the period was HKD 10,903,000, a substantial improvement from HKD 31,107,000 in the previous year, marking a 65.0% decrease[3]. - Total comprehensive loss for the period was HKD 508,000, a significant recovery from a comprehensive loss of HKD 37,582,000 in the same period last year[4]. - The group recorded a loss of approximately HKD 10,903,000, a reduction of about HKD 20,204,000 (or 65.0%) compared to the same period last year, primarily due to a shift from loss to profit in fair value of equity instruments[77]. - The group recorded a fair value loss of approximately HKD 35,706,000 on investment properties, compared to a loss of HKD 30,000,000 for the same period last year[82]. Assets and Liabilities - Total assets less current liabilities amounted to HKD 1,073,901,000, a slight decrease from HKD 1,080,466,000 as of March 31, 2024[6]. - Total assets as of September 30, 2024, were HKD 1,081,938,000, a decrease from HKD 1,100,257,000 as of March 31, 2024[26]. - Total liabilities as of September 30, 2024, were HKD 9,709,000, compared to HKD 22,720,000 as of March 31, 2024[26]. - The company's equity totaled HKD 1,072,229,000, down from HKD 1,077,537,000 at the end of the previous reporting period[6]. - As of September 30, 2024, the total net trade and other receivables amounted to HKD 3,185,000, compared to HKD 778,000 as of March 31, 2024[46]. - The company’s investment properties had a carrying value of HKD 500,000,000 as of September 30, 2024, down from HKD 522,000,000 as of March 31, 2024[40]. - The group held cash reserves of approximately HKD 131,650,000 as of September 30, 2024, down from HKD 140,604,000 on March 31, 2024[93]. - The group's bank borrowings were fully repaid, resulting in a debt-to-equity ratio of 0% as of September 30, 2024[93]. - The group has no contingent liabilities as of September 30, 2024, indicating a stable financial position[96]. Fair Value and Investments - The fair value gain on equity instruments measured at fair value through profit or loss was HKD 15,403,000, compared to a loss of HKD 9,776,000 in the prior year[3]. - The fair value of equity instruments measured at fair value through other comprehensive income increased to HKD 60,372,000 as of September 30, 2024, from HKD 49,977,000 as of March 31, 2024[42]. - The market value of the group's listed securities investment portfolio was approximately HKD 119,296,000 as of September 30, 2024, up from HKD 95,328,000 as of March 31, 2024[85]. - The group has total securities investments amounted to HKD 68,487,000, with a fair value increase of 5.5% compared to the previous period[86]. - The top five long-term securities investments include Hong Kong Exchanges and Clearing Limited with an investment cost of HKD 9,602,000 and a fair value of HKD 15,177,000, representing 14% of the group's total fair value[86]. Dividends and Shareholder Information - The proposed interim dividend is HKD 0.02 per share, totaling HKD 800,000, consistent with the previous year[53]. - The final dividend declared for the previous fiscal year was HKD 0.12 per share, amounting to HKD 4,800,000, unchanged from the prior year[54]. - The company’s directors held a total of 7,269,577 shares, representing approximately 18.2% of the issued share capital[64]. - The company will suspend shareholder registration from December 19, 2024, to December 23, 2024, to facilitate the distribution of the interim dividend[63]. Management and Future Outlook - The management anticipates that the newly issued or revised accounting standards will not have a significant impact on the group's performance and financial position[19]. - The group has slowed down the development progress of the Fuk Chuen Street project due to high interest rates and other external economic factors[78]. - The group has not recorded any significant progress on future development properties as of the report date[84]. - The group plans to continue monitoring market conditions and interest rate trends to make decisions that align with shareholder interests[98]. - The group will consider new credit facilities for property development when it is deemed beneficial for shareholders[93].

Financial Performance - For the six months ended September 30, 2024, the company reported a revenue of HKD 12,261 million, an increase of 3.8% compared to HKD 11,815 million for the same period in 2023[3] - Other income and gains for the same period rose to HKD 2,116 million, up from HKD 1,372 million, reflecting a growth of 54.2%[3] - The company recorded a loss before tax of HKD 10,198 million, significantly improved from a loss of HKD 30,481 million in the previous year, representing a reduction of 66.6%[3] - The net loss attributable to shareholders for the period was HKD 10,903 million, compared to a loss of HKD 31,107 million in the prior year, indicating a 65.0% improvement[5] - The net profit before tax for the period was HKD 19,400,000, compared to a loss of HKD 5,805,000 in the previous year, indicating a significant turnaround in performance[27] - The total comprehensive income for the period was significantly improved, reflecting the company's strategic focus on enhancing operational efficiency and revenue generation[27] - The group recorded a loss of approximately HKD 10,903,000, a reduction of about HKD 20,204,000 (or 65.0%) compared to the same period last year[70] - The improvement in loss was primarily due to the fair value of equity instruments, which turned from a loss in the same period last year to a profit in the current period[70] Assets and Liabilities - The company's total assets less current liabilities stood at HKD 1,073,901 million as of September 30, 2024, slightly down from HKD 1,080,466 million at the end of March 2024[10] - The fair value of investment properties decreased to HKD 821,000 million from HKD 856,700 million, reflecting a decline of 4.1%[10] - The company reported cash and bank deposits of HKD 131,650 million, down from HKD 140,604 million, a decrease of 6.5%[10] - The total equity as of September 30, 2024, was HKD 1,072,229 million, a slight decrease from HKD 1,077,537 million at the end of March 2024[10] - Total assets as of September 30, 2024, were HKD 1,081,938,000, a decrease from HKD 1,100,257,000 as of March 31, 2024, reflecting a decline of about 1.7%[29] - Total liabilities as of September 30, 2024, were HKD 5,666,000, an increase from HKD 21,352,000 as of March 31, 2024, indicating a significant rise of approximately 26.5%[29] - The company’s unallocated corporate assets as of September 30, 2024, were HKD 113,614,000, down from HKD 125,619,000 as of March 31, 2024, reflecting a decrease of approximately 9.6%[29] - Deferred tax liabilities as of September 30, 2024, were HKD 1,946,000, compared to HKD 1,552,000 as of March 31, 2024, indicating an increase of approximately 25.4%[29] Investment and Income - The company recognized a fair value gain of HKD 10,395 million on equity instruments measured at fair value through other comprehensive income[12] - The revenue from securities investment for the six months ended September 30, 2024, was HKD 4,664,000, slightly up from HKD 4,602,000 in 2023[27] - Rental income from investment properties increased to HKD 7,585,000 for the current period, compared to HKD 7,213,000 in the previous year, reflecting a growth of approximately 5.15%[27] - The fair value gain from investment properties was HKD 15,403,000, compared to a loss of HKD 9,776,000 in the previous year, showcasing a substantial improvement[27] - The company reported bank interest income of HKD 2,116,000 for the period, compared to HKD 1,450,000 in the previous year, marking an increase of approximately 46%[27] - The group's rental income was approximately HKD 7,585,000, an increase of about HKD 372,000 (or 5.2%) compared to the same period last year, primarily due to an increase in rental rates[71] - Dividend income increased by approximately HKD 62,000 (or 1.3%) to about HKD 4,664,000 compared to the same period last year[76] Future Outlook and Strategy - The company plans to continue focusing on enhancing its investment portfolio and exploring new market opportunities to drive future growth[3] - The management remains optimistic about future growth prospects, focusing on market expansion and potential new product developments[27] - Management anticipates continued challenges in the Hong Kong business environment due to geopolitical factors, high interest rates, and tightened bank lending policies[92] - The group will continue to monitor market conditions and interest rate trends to make decisions that align with shareholder interests[92] - The group is committed to maintaining sufficient cash flow and credit lines for future operations and capital expenditures[88] - Management aims to adopt the best financial structure to benefit shareholders in a changing economic environment[88] Dividends - The proposed interim dividend for the period ending September 30, 2024, is HKD 800,000, consistent with the previous year[53] - The company declared a final dividend of HKD 0.12 per share, consistent with the previous year[55] - The interim dividend declared was HKD 0.02 per share, totaling HKD 800,000, unchanged from the previous year[63] Capital Expenditures - As of September 30, 2024, the company had capital expenditures related to investment property redevelopment amounting to HKD 12,050,000 that were contracted but not provided for[55] - The company had authorized but not contracted capital expenditures related to investment property redevelopment amounting to HKD 54,000,000[55] - The group has unprovided capital commitments of HKD 12,050,000 for property redevelopment projects[88] Financial Instruments and Borrowings - The group did not sell any equity securities during the six months ending September 30, 2024, while it sold equity securities with a fair value of approximately HKD 2,148,000 during the previous period, resulting in a transfer of accumulated gains of about HKD 234,000[43] - The group had no bank loans secured as of September 30, 2024, compared to HKD 16,295,000 as of March 31, 2024, indicating a complete repayment of secured loans[50] - The asset-to-bank borrowing ratio decreased from 1.5% to zero, indicating a significant reduction in leverage[87] - The group’s total bank borrowings were approximately HKD 16,295,000, which have been fully repaid according to the loan agreement[87] - No financial instruments were used for hedging purposes in the six months ending September 30, 2024[89] Market Conditions - The Hang Seng Index rose to 21,133.68 points as of September 30, 2024, reflecting favorable conditions in the group's securities investment segment[92] - The group plans to discuss borrowing matters with banks at the appropriate time to get redevelopment projects back on track[92]

Financial Performance - The group's revenue increased by approximately HKD 813,000 (or 4.2%) to about HKD 20,053,000 for the year[8]. - The group recorded a loss of approximately HKD 49,748,000, an increase of about HKD 13,521,000 (or 37.3%) compared to the previous year[9]. - Rental income for the year was approximately HKD 14,643,000, up about HKD 1,905,000 (or 15%) from last year[12]. - The fair value loss on investment properties was approximately HKD 48,900,000, compared to HKD 41,600,000 in the previous year[13]. - Dividend income decreased by approximately HKD 1,092,000 (or about 16.8%) to approximately HKD 5,410,000[17]. - The group sold certain equity instruments at a total consideration of approximately HKD 2,148,000, resulting in a realized gain of approximately HKD 235,000[17]. - The fair value loss on equity instruments measured at fair value through profit or loss was approximately HKD 15,085,000, compared to HKD 6,782,000 in the previous year[17]. - The fair value of the group's investment properties as of March 31, 2024, was HKD 856,700,000, down from HKD 902,600,000 in the previous year[13]. - The group recorded a profit of approximately HKD 10,456,000 from the leasing segment, an increase of about HKD 1,121,000 (or 12%) from last year[12]. - As of March 31, 2024, the total value of the group's investment properties was HKD 61,300,000, down from HKD 63,000,000 in the previous year[28]. Financial Position and Liquidity - The group held cash reserves of approximately HKD 140,604,000 as of March 31, 2024, compared to HKD 134,256,000 in the previous year[25]. - The total amount of bank loans was approximately HKD 16,295,000, which must be repaid within one year[24]. - The group's securities portfolio had a total investment cost of HKD 68,486,000, with a fair value of HKD 49,977,000, resulting in a loss of HKD 10,241,000 during the year[1]. - The group’s top five long-term securities investments accounted for 4.5% of total assets[1]. - The group’s total bank borrowings to shareholder equity ratio was maintained at 1.5%[24]. - The group reported a total of HKD 102,450,000 in trading securities with a fair value of HKD 45,351,000, resulting in a loss of HKD 15,218,000 during the year[22]. - The group has no contingent liabilities as of March 31, 2024[29]. Market Conditions and Risks - The rental market in Hong Kong remains uncertain, with landlords adopting a wait-and-see approach, leading to minimal or flat rental growth[34]. - Construction material costs have significantly increased and are expected to remain high, impacting the decision to continue or postpone development projects[34]. - The group faces high project, liquidity, and delay risks due to high interest rates and economic downturns, necessitating careful feasibility assessments[36]. - The local economic recovery is slower than expected, with changing consumer patterns and increased cross-border spending affecting the business environment[35]. - The property market atmosphere remains weak despite the increase in transaction volume following the removal of demand management measures by the Hong Kong government[49]. - The group plans to continue monitoring market conditions, interest rate trends, and bank lending policies to make decisions in the best interest of shareholders[49]. - The group plans to cautiously evaluate project cost-effectiveness and market dynamics before accelerating or slowing down redevelopment plans[12]. Corporate Governance - The company emphasizes high standards of corporate governance, focusing on transparency, independence, and accountability[56]. - The board consists of two executive directors, three non-executive directors, and three independent non-executive directors[58]. - The board held four meetings during the year, achieving a participation rate of 97%[60]. - The company has adopted the "Code of Conduct for Directors' Securities Transactions" as per the Listing Rules, ensuring compliance throughout the year[57]. - The company is committed to maintaining high ethical standards and corporate governance practices[54]. - The board believes that its current structure and decision-making model are appropriate for the changing economic environment[56]. - The company will continuously review its policies and operational practices to ensure alignment with its corporate culture and values[55]. - The board's responsibilities include formulating group strategies and overseeing business management, with all strategic decisions requiring prior approval from the executive directors[58]. - The board has established mechanisms to ensure independent opinions are available, with a review of compliance with the minimum threshold for independent non-executive directors[63]. - The board believes that the mechanism for obtaining independent opinions is effective and has been implemented successfully as of March 31, 2024[66]. Risk Management - The board has confirmed the effectiveness and adequacy of the group's risk management and internal control systems for the year ending March 31, 2024[102]. - The independent review report by IPA found no significant weaknesses in the risk management and internal control systems, ensuring timely remedial actions for any identified deficiencies[102]. - The group has established a three-line defense framework for risk management, including continuous identification and assessment of financial and non-financial risks[103]. - The internal risk management and control reports are submitted annually to the audit committee for review, ensuring compliance with Hong Kong Financial Reporting Standards[105]. Environmental, Social, and Governance (ESG) - The company has established an Environmental, Social, and Governance (ESG) working group to monitor and assess ESG-related risks and performance, which are integrated into the risk management and internal control systems[125]. - The company has implemented an environmental policy to reduce operational costs and carbon footprint, focusing on energy and paper usage[131]. - The company has conducted a risk assessment regarding climate change impacts, focusing on extreme weather events[135]. - Total greenhouse gas emissions for the year 2024 were 8.72 tons, a 1.0% increase from 8.63 tons in 2023[136]. - Indirect emissions from purchased electricity accounted for 66.1% of total emissions in 2024, with 5.76 tons reported, up from 5.67 tons in 2023, reflecting a 1.6% increase[136]. - Paper waste from office activities generated 0.44 tons of emissions in 2024, a 22.2% increase from 0.36 tons in 2023[136]. - Energy consumption increased to 14,780 kWh in 2024, a 1.7% rise from 14,540 kWh in 2023[140]. - Energy expenditure rose to HKD 23,534 in 2024, marking a 7.9% increase from HKD 21,804 in 2023[140]. - The company has not reported any significant harmful or non-harmful waste generation during the year[132]. - The company has not faced any penalties or legal issues related to environmental regulations during the year[128]. Employee and Board Diversity - Employee compensation for the year ending March 31, 2024, was approximately HKD 4,453,000, an increase from HKD 4,302,000 in the previous year[43]. - The board currently consists of six male directors and two female directors, achieving a gender diversity ratio of 25%[85]. - The company aims to maintain at least one female director or a female director ratio of 25%, whichever is lower, to enhance gender diversity on the board[85]. - The nomination committee focuses on diversity within the board[80]. - The company has not reported any violations of health and safety regulations in the past three years[152]. - The company has implemented measures to ensure a healthy and safe working environment, particularly in response to COVID-19[152]. - The company has not reported any incidents of workplace injuries or fatalities in the past three years[152]. - 25% of employees received training in 2024, maintaining the same percentage as in 2023[156]. - Total hours of job-related training remained constant at 40 hours for employees in both years[156]. Shareholder Communication and Dividends - The company aims to provide stable and sustainable returns to shareholders through a consistent dividend policy, proposing an interim dividend of HKD 0.02 and a final dividend of HKD 0.12 per ordinary share[121]. - The board of directors reviews the implementation and effectiveness of the shareholder communication policy annually, ensuring timely and effective dissemination of information to shareholders and investors[118]. - The company ensures that all announcements contain accurate and non-misleading information, presenting both positive and negative facts clearly[104]. - The company will consider various factors, including financial performance and market conditions, when determining dividend payments[123]. - The company will not distribute any specific amount of dividends in any given period, as the board retains the discretion to review and amend the dividend policy[123]. - Shareholders holding at least 2.5% of voting rights can request the presentation of proposals at the annual general meeting[110]. - Shareholders holding at least 5% of the total voting rights can request the company to convene a shareholders' meeting, with written requests needing to specify the meeting's purpose[113]. - The company encourages shareholder participation in annual general meetings and allows for email inquiries directly to the board[115]. Board Committees and Meetings - The audit committee held two meetings during the year ending March 31, 2024, with a 100% attendance rate[97]. - The remuneration committee consists of three independent non-executive directors and one executive director, with a 100% attendance rate at the only meeting held during the year[75]. - The nomination committee, chaired by Ms. Chan, has a 100% attendance rate at its meeting[80]. - The company has adopted a board diversity policy since June 2014, considering various factors such as gender, age, cultural background, and professional experience in board member selection[84]. - All independent non-executive directors are invited to serve on board committees, enhancing the independent perspective in decision-making[64]. - The company secretary regularly circulates training materials to directors, promoting continuous professional development[69]. - The board has received training records for all directors, ensuring they are well-informed about company operations and responsibilities[70]. Miscellaneous - The company has not made significant changes to its organizational documents during the fiscal year ending March 31, 2024[116]. - The company has not encountered any confirmed incidents of corruption or legal proceedings related to bribery during the year[160]. - The company has engaged employees and directors in approximately 95 hours of volunteer service throughout the year, an increase from 56 hours in 2023[161]. - The company has established a whistleblowing policy to report any misconduct or violations, ensuring fair and appropriate investigations[160]. - The company emphasizes the importance of supply chain management for sustainable growth, focusing on contractor performance evaluation[157]. - The company has not entered into any stock-linked agreements during the fiscal year[171]. - The company has maintained its primary business focus on property and stock investment, property development, and securities trading without significant changes during the fiscal year[165]. - The auditor for the company, Crowe (HK) CPA Limited, has been retained for the past three years and will be proposed for reappointment at the upcoming annual general meeting[198].

[Financial Statements](index=1&type=section&id=Financial%20Statements) [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 grew 4.2% to HKD 20.05 million, but increased fair value losses on investment properties and equity instruments led to a 37.3% expansion in loss attributable to owners, reaching HKD 49.75 million Key Indicators from Consolidated Statement of Profit or Loss (For the year ended March 31) | Indicator | 2024 (HKD) | 2023 (HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Turnover | 20,052,902 | 19,239,752 | +4.2% | | Fair value loss on investment properties | (48,900,000) | (41,600,000) | Loss expanded by 17.5% | | Loss before income tax | (48,318,092) | (34,949,507) | Loss expanded by 38.3% | | Loss for the year attributable to owners of the Company | (49,748,225) | (36,227,357) | Loss expanded by 37.3% | | Loss per share (basic and diluted) | (1.24) | (0.91) | Loss expanded by 36.3% | [Consolidated Statement of Financial Position](index=2&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2024, the Group's total assets decreased by 5.6% to HKD 1.1 billion, and net assets declined by 5.7% to HKD 1.078 billion, mainly due to fair value reductions in investment properties and equity instruments Key Indicators from Consolidated Statement of Financial Position (As of March 31) | Indicator | 2024 (HKD) | 2023 (HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Investment properties | 856,700,000 | 902,600,000 | -5.1% | | Total assets | 1,100,257,144 | 1,166,028,331 | -5.6% | | Total liabilities | 22,719,664 | 22,986,081 | -1.2% | | Net assets (Total equity) | 1,077,537,480 | 1,143,042,250 | -5.7% | [Consolidated Statement of Changes in Equity](index=3&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) As of March 31, 2024, total shareholders' equity decreased from HKD 1.143 billion to HKD 1.078 billion, mainly due to a HKD 49.75 million loss for the year, HKD 10.24 million in fair value losses on equity instruments, and HKD 5.52 million in dividends paid - Total comprehensive loss for the year was **HKD 59.99 million**, primarily comprising the loss for the year (**HKD 49.75 million**) and fair value changes of equity instruments at fair value through other comprehensive income (**HKD 10.24 million**)[8](index=8&type=chunk) - Total dividends paid during the year amounted to approximately **HKD 5.52 million**, including dividends of **HKD 4.72 million** approved for the prior year and an interim dividend of **HKD 0.80 million** declared for the current year[8](index=8&type=chunk) [Notes to the Financial Statements](index=4&type=section&id=Notes%20to%20the%20Financial%20Statements) [Changes in Accounting Policies](index=4&type=section&id=2.%20Adoption%20of%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group adopted new and revised Hong Kong Financial Reporting Standards this year, with no significant impact on its financial position or performance, and future application of newly issued standards is not expected to have a material impact - The Group adopted several new standards for the first time this year, including HKAS 8 (Amendments) "Definition of Accounting Estimates" and HKAS 12 (Amendments) "Deferred Tax related to Assets and Liabilities arising from a Single Transaction," which were assessed to have no material impact on the consolidated financial statements[12](index=12&type=chunk)[15](index=15&type=chunk)[18](index=18&type=chunk) - Regarding the abolition of the MPF offsetting mechanism for long service payments in Hong Kong, the Group assessed its long service payment liability at **HKD 0.118 million**, with no material impact on the financial statements from applying the new guidance[21](index=21&type=chunk) [Segment Information](index=8&type=section&id=3.%20Segment%20Information) The Group operates in securities investment, property leasing, and property development; property leasing is the main revenue source at HKD 14.64 million, while both securities investment and property leasing segments reported losses of HKD 11.06 million and HKD 38.44 million, respectively, due to fair value losses Segment Results for FY2024 (HKD) | Segment | External Revenue | Segment Result (Loss) | | :--- | :--- | :--- | | Securities Investment | 5,410,315 | (11,063,456) | | Property Leasing | 14,642,587 | (38,443,740) | | Property Development | - | (161,210) | - The property leasing segment has two major customers (Customer A and B) who collectively contributed **HKD 8.43 million** in revenue, accounting for **42%** of the Group's total revenue[29](index=29&type=chunk) [Turnover](index=10&type=section&id=4.%20Turnover) Total turnover for FY2024 increased by 4.2% to HKD 20.05 million, primarily driven by a 15% rise in investment property rental income, despite a decrease in dividend income from listed securities Turnover Composition (HKD) | Revenue Source | 2024 | 2023 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Investment property rental income | 14,642,587 | 12,737,549 | +15.0% | | Dividend income from listed securities | 5,410,315 | 6,502,203 | -16.8% | | **Total** | **20,052,902** | **19,239,752** | **+4.2%** | [Investment Properties](index=12&type=section&id=9.%20Investment%20Properties) As of March 31, 2024, the fair value of investment properties decreased by 5.1% to HKD 856.7 million, with a recognized fair value loss of HKD 48.90 million for the year, mainly due to market revaluation declines - During the year, the investment property portfolio recorded a fair value loss of **HKD 48.90 million** due to market revaluation, higher than the **HKD 41.60 million** in the prior year[41](index=41&type=chunk) - As of March 31, 2024, investment properties with a total carrying amount of approximately **HKD 61.30 million** were pledged to banks to secure general banking facilities[42](index=42&type=chunk) [Investments in Equity Instruments](index=13&type=section&id=10.%20Equity%20Instruments%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) The Group's long-term strategic equity investments, valued at HKD 49.98 million at year-end, decreased by 19.9% year-on-year, with a HKD 10.24 million fair value reduction, including top holdings in blue-chip stocks like HKEX and CLP Holdings Top Five Long-Term Equity Investments (As of March 31, 2024) | Security Name | Principal Business | Fair Value (HKD thousands) | | :--- | :--- | :--- | | Hong Kong Exchanges and Clearing Limited | Financial Industry | 10,599 | | CLP Holdings Limited | Utilities | 10,288 | | China Petroleum & Chemical Corporation | Energy | 5,106 | | Industrial and Commercial Bank of China Limited | Financial Industry | 4,733 | | CK Asset Holdings Limited | Property and Construction | 3,870 | [Dividends](index=16&type=section&id=14.%20Dividends) The company declared an interim dividend of HKD 0.02 per share and proposed a final dividend of HKD 0.12 per share, resulting in a total annual dividend of HKD 5.60 million, consistent with the prior year - The Board recommended a final dividend of **HKD 0.12 per share**, which, together with the interim dividend of **HKD 0.02 per share** already paid, brings the total dividend for FY2024 to **HKD 0.14 per share**, consistent with the previous year[52](index=52&type=chunk)[58](index=58&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) [Performance Review](index=19&type=section&id=Performance) This fiscal year, the Group's turnover increased by 4.2%, but increased fair value losses on investment properties and equity instruments resulted in a 37.3% expansion of the loss for the year to HKD 49.75 million - The Group's loss for the year expanded by **37.3%** from **HKD 36.23 million** last year to **HKD 49.75 million**[62](index=62&type=chunk) - The primary reason for the expanded loss was increased fair value losses on investment properties and equity instruments at fair value through profit or loss[62](index=62&type=chunk) [Segment Business Analysis](index=20&type=section&id=Segment%20Business%20Analysis) Property leasing revenue grew 15% due to improved occupancy, while stock investment saw a 16.8% decline in dividend income and significant fair value losses due to weak markets, with property development projects progressing slowly [Property Leasing](index=20&type=section&id=Property%20Leasing) Rental income grew 15% to HKD 14.64 million due to improved occupancy and reduced concessions, but the investment property portfolio recorded a HKD 48.90 million fair value loss, and the Fuk Tsun Street redevelopment project slowed due to adverse economic factors - Rental income increased by **15%** compared to last year, primarily due to increased property occupancy rates and significantly reduced rental concessions following the relaxation of pandemic control measures[64](index=64&type=chunk) - The Fuk Tsun Street redevelopment project slowed its progress due to unfavorable business conditions, including high interest rates, slow economic recovery, and tightened bank lending policies[64](index=64&type=chunk) [Stock Investment and Dividend Income](index=20&type=section&id=Stock%20Investment%20and%20Dividend%20Income) Dividend income fell 16.8% to HKD 5.41 million, with significant fair value losses of HKD 15.09 million in profit or loss and HKD 10.24 million in other comprehensive income, bringing the listed securities portfolio market value to HKD 95.33 million at year-end - Dividend income decreased by **16.8%** compared to last year, primarily due to reduced dividends from listed securities[68](index=68&type=chunk) - During the year, fair value losses on equity instruments at fair value through profit or loss amounted to approximately **HKD 15.09 million**, and fair value losses on equity instruments at fair value through other comprehensive income amounted to approximately **HKD 10.24 million**[68](index=68&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=Liquidity%20and%20Financial%20Resources) As of year-end, the Group held HKD 141 million in cash and HKD 16.30 million in bank loans, maintaining a low 1.5% debt-to-asset ratio, with management confident in sufficient cash flow for future operations and capital expenditures Financial Position Summary (As of March 31, 2024) | Indicator | Amount (HKD) | | :--- | :--- | | Cash balance | 140,604,000 | | Total bank loans | 16,295,000 | | Ratio of assets to bank borrowings | 1.5% | - The Group's outstanding capital commitments for property redevelopment projects amounted to **HKD 12.05 million**, expected to be partially funded by internal resources and partially by construction loans[77](index=77&type=chunk) [Outlook](index=24&type=section&id=Outlook) The Group anticipates business challenges due to Hong Kong's slower-than-expected economic recovery and cross-border consumption impacts; despite property market deregulation, high interest rates and cautious bank lending will continue to pressure the property market, requiring prudent market assessment - Management anticipates business challenges, primarily due to slow local economic recovery and the impact of cross-border consumption trends on the local market[82](index=82&type=chunk) - Despite the government's withdrawal of residential property demand-side management measures, high interest rates, tightened bank lending, and geopolitical factors are expected to keep the property and securities markets under pressure in the short to medium term[82](index=82&type=chunk)

Revenue and Income - Revenue for the six months ended September 30, 2023, was HKD 11,815,000, a decrease of 2.3% compared to HKD 12,089,000 in 2022[4] - Other income and gains increased significantly to HKD 1,372,000 from HKD 272,000, representing a growth of 406.6%[4] - Total rental income from investment properties for the six months ended September 30, 2023, was HKD 7,213,000, an increase from HKD 6,317,000 in the same period of 2022, representing a growth of 14.2%[26] - The bank interest income for the six months ended September 30, 2023, was HKD 1,450,000, significantly higher than HKD 116,000 in the same period of 2022[27] - Dividend income from securities decreased by approximately HKD 1,170,000 (or 20.3%) to about HKD 4,602,000 due to reduced dividend distributions from listed securities[73] Losses and Financial Performance - Loss before tax for the period was HKD 30,481,000, compared to a loss of HKD 29,347,000 in the previous year, indicating a 3.9% increase in losses[4] - The total comprehensive loss attributable to owners for the period was HKD 37,582,000, down from HKD 44,727,000 in 2022, reflecting a 16% improvement[6] - Basic and diluted loss per share for the period was HKD 0.778, compared to HKD 0.748 in 2022, indicating a 4.0% increase in loss per share[4] - The group recorded a loss of approximately HKD 31,107,000, an increase of about HKD 1,187,000 (or 4%) compared to the loss in the same period last year[67] - The fair value loss on investment properties was the main reason for the increased loss during the period[67] Assets and Liabilities - Total assets decreased to HKD 1,103,604,000 from HKD 1,144,386,000, a decline of 3.6%[8] - The total assets of the group as of September 30, 2023, amounted to HKD 1,126,632,000, a decrease from HKD 1,166,028,000 as of March 31, 2023[24] - The group’s total liabilities increased to HKD 25,972,000 as of September 30, 2023, from HKD 22,986,000 as of March 31, 2023[24] - The group’s bank loans classified as current liabilities amounted to approximately HKD 16,700,000 as of September 30, 2023, down from HKD 17,106,000 as of March 31, 2023[44] - The asset-to-bank loan ratio of the group was maintained at 1.5%[79] Cash Flow and Reserves - Cash and cash equivalents at the end of the period increased to HKD 142,689,000 from HKD 130,797,000, marking a rise of 9.5%[10] - The company held cash reserves of approximately HKD 142,689,000, an increase from HKD 134,256,000 as of March 31, 2023[80] - The company reported a net cash inflow of HKD 8,433,000 for the period, compared to HKD 10,163,000 in the previous year, a decrease of 16.9%[10] - Operating cash flow for the period was HKD 8,805,000, down 33.0% from HKD 13,197,000 in the previous year[10] Investment Properties - Investment properties' fair value loss was HKD 30,000,000, compared to a loss of HKD 20,700,000 in the previous year, representing a 44.0% increase in losses[4] - The fair value loss on investment properties was HKD 30,000,000, up from HKD 20,700,000 in the same period last year[22] - The fair value of the group's investment properties as of September 30, 2023, was HKD 872,600,000, down from HKD 902,600,000 as of March 31, 2023[70] - The group recorded a fair value loss of HKD 90,000 on development or pending development properties, compared to no loss for the six months ended September 30, 2022[71] Management and Operations - The company has not yet fully assessed the impact of the new accounting guidelines related to the cancellation of the MPF offset mechanism[18] - The management is in the process of implementing changes related to the new accounting guidelines, including additional data collection and impact assessment[18] - All business operations are conducted in Hong Kong, with no significant market expansion reported[19] - The company has not adopted any new or revised accounting standards that would have a significant impact on its financial performance[15] Employee and Compensation - Key management personnel compensation for the six months ended September 30, 2023, was HKD 1,360,000, compared to HKD 1,330,000 for the same period in 2022[49] - The group had four employees as of September 30, 2023, with total employee compensation of approximately HKD 890,000, an increase from HKD 854,000 in the same period last year[65] Dividends - The proposed interim dividend is HKD 800,000 for the six months ended September 30, 2023, unchanged from the same period in 2022[45] - The board declared an interim dividend of HKD 0.02 per share, totaling HKD 800,000, consistent with the previous year[54] Market Conditions and Future Outlook - The company faces challenges in the future due to changing local consumption patterns and a slower-than-expected economic recovery in Hong Kong[86] - The company will continue to monitor market conditions and interest rate trends to make decisions that align with shareholder interests[86] - There have been instances of land supply failures in 2023, indicating a cautious approach from property developers due to rising interest rates and geopolitical factors[86] - The company emphasizes maintaining sufficient cash flow and credit facilities to meet future operational and capital expenditure needs[80] - The company has no significant foreign exchange risk as its business activities are primarily conducted in Hong Kong and in HKD[84]