Financial Performance - Revenue for the six months ended September 30, 2022, was HKD 613,155,000, an increase of 14.6% compared to HKD 535,012,000 in the same period last year[3] - Gross profit decreased significantly to HKD 319,000 from HKD 7,332,000 year-on-year, indicating a decline in profitability[3] - Other income and gains increased to HKD 125,084,000 from HKD 41,831,000, reflecting a substantial growth of 199.5%[3] - The loss before tax improved to HKD 40,494,000 from HKD 97,842,000, showing a reduction in losses by 58.7%[3] - The total comprehensive loss for the period was HKD 120,465,000, compared to HKD 92,756,000 in the previous year, indicating a worsening of overall performance[6] - Basic and diluted loss per share for the period was HKD 8.95, compared to HKD 20.05 in the previous year, reflecting an improvement in loss per share[3] - The total comprehensive loss for the six months ended September 30, 2022, was HKD 100,939,000, compared to a total comprehensive loss of HKD 90,718,000 for the same period in 2021, indicating a deterioration of about 11%[19] - For the six months ended September 30, 2022, the group recorded an unaudited consolidated loss of approximately HKD 53.9 million, a decrease of 45.8% compared to a consolidated loss of approximately HKD 99.4 million for the same period in 2021[75] Assets and Liabilities - Non-current assets decreased to HKD 3,866,908,000 from HKD 4,058,399,000, reflecting a decline of 4.7%[8] - Current assets increased to HKD 1,068,686,000 from HKD 1,054,396,000, showing a slight growth of 1.3%[8] - Current liabilities rose to HKD 950,217,000 from HKD 875,388,000, an increase of 8.5%[11] - Total equity decreased to HKD 2,066,707,000 from HKD 2,187,172,000, indicating a decline of 5.5%[11] - The group’s total assets as of September 30, 2022, were HKD 2,066,707,000, compared to HKD 2,263,494,000 as of September 30, 2021, indicating a decrease of approximately 8.7%[19] - The group’s total liabilities as of September 30, 2022, were HKD 1,997,122,000, compared to HKD 2,090,882,000 as of September 30, 2021, indicating a decrease of about 4.5%[19] Cash Flow and Investments - The net cash flow from operating activities for the six months ended September 30, 2022, was HKD 103,032,000, compared to HKD 71,905,000 for the same period in 2021, representing an increase of approximately 43%[19] - The cash and cash equivalents at the end of the period were HKD 481,187,000, down from HKD 557,471,000 at the end of the same period last year, reflecting a decrease of approximately 14%[19] - The group reported a net cash outflow from investing activities of HKD 145,331,000 for the six months ended September 30, 2022, compared to HKD 16,058,000 for the same period in 2021, indicating a significant increase in investment expenditures[19] - The group’s financing activities resulted in a net cash outflow of HKD 81,885,000 for the six months ended September 30, 2022, compared to a net cash inflow of HKD 20,167,000 for the same period in 2021, showing a shift in financing strategy[19] Business Segments - The company operates under five business segments: non-patented bus services, luxury car services, patented bus and public minibus services, mainland China operations, and other services[31] - Revenue from customer contracts amounted to HKD 608,886,000, compared to HKD 529,331,000 in the previous year, indicating a year-on-year increase of about 15%[39] - The group’s revenue from transportation services was HKD 572,341,000, which includes HKD 486,849,000 from non-patented buses and HKD 61,317,000 from patented buses and public minibuses[40] - The increase in revenue was primarily due to higher income from local non-patented bus operations and government relief measures during the pandemic[75] - Local non-patented bus services generated revenue of approximately HKD 479.8 million, a 26.1% increase from approximately HKD 380.5 million in the same period last year[76] - Revenue from luxury car services was approximately HKD 17.5 million, a decrease of 11.6% from approximately HKD 19.8 million in the previous year[78] - Revenue from the mainland China business was approximately HKD 47.2 million, down 25.9% from approximately HKD 63.7 million in the same period last year[80] Financial Management and Governance - The company adopted revised Hong Kong Financial Reporting Standards without significant changes to its accounting policies, consistent with the annual consolidated financial statements for the year ended March 31, 2022[24] - The company has complied with the corporate governance code throughout the reporting period[116] - The audit committee consists of three independent non-executive directors, overseeing financial reporting and internal controls[122] - The group maintains a prudent financing and financial management policy to minimize financial risks[90] Shareholder Information - As of September 30, 2022, the company had a total of 241,535,555 shares held by major shareholders, representing 50.66% of the issued share capital[114] - The board decided not to declare an interim dividend for the six months ended September 30, 2022[74] - The company has not purchased, redeemed, or sold any of its listed securities during the six months ending September 30, 2022[117] Future Outlook - The group anticipates challenges in financial performance for the second half of the fiscal year due to international fuel price volatility and rising interbank rates[87] - The group expects to gradually restore cross-border transport services as border control measures are lifted, particularly between mainland China, Hong Kong, and Macau[87] Employee and Management Information - As of September 30, 2022, the group employs approximately 3,500 employees, down from 3,700 as of March 31, 2022[91] - The total remuneration paid to key management personnel for the six months ended September 30, 2022, was HKD 6,608,000, an increase from HKD 5,147,000 in the previous year[63] Miscellaneous - The company has not identified any contingent assets or liabilities that would affect its financial position due to the revised standards[28] - The company has not made any significant acquisitions or disposals of subsidiaries, associates, or joint ventures in the six months ending September 30, 2022[93] - There are no major investment or capital asset future plans as of September 30, 2022[96] - The company has implemented a share option scheme to encourage and reward eligible participants contributing to the group[102] - No significant post-reporting events occurred from September 30, 2022, to the report date[121]

Operations and Services - The group operates approximately 1,301 non-franchised public buses and 449 luxury cars as of March 31, 2022[27]. - The acquisition of 100% of the shares of Trade Travel (Hong Kong) Limited in 1997 established the group as the largest tourism bus service provider in Hong Kong[28]. - The group has developed a network of six 24-hour cross-border shuttle bus routes since 2004, connecting designated locations in Hong Kong with the Huanggang Port[29]. - The group acquired 100% of the shares of the Youlian Group and the Huikang Group in 2016 and 2018, further solidifying its position in the non-franchised bus market in Hong Kong[30]. - The group became the sole operator of the Hong Kong-Zhuhai-Macao Bridge shuttle bus service after successfully bidding for the project[32]. Financial Performance - The total revenue for the year ended March 31, 2022, was HKD 1,202,051,000, an increase from HKD 1,083,879,000 in the previous year[41]. - The revenue from cross-border services between mainland China and Hong Kong was HKD 5,193,000, down from HKD 10,491,000 in the previous year[41]. - The local bus service revenue increased to HKD 755,920,000 from HKD 729,018,000 year-on-year[41]. - The company reported a net loss of HKD 136,000,000 for the year, compared to a loss of HKD 43,744,000 in the previous year[41]. - The revenue from the mainland China business segment was HKD 209,734,000, up from HKD 185,589,000 in the previous year[41]. - The fleet size for non-franchised buses was 1,301, a slight decrease from 1,357 in the previous year[41]. Growth and Expansion - The company has confidence in future growth due to the implementation of national policies such as the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road Initiative[36]. - The company has expanded its investment in the tourism sector by acquiring a 67.8% stake in the tourism development company in 2017[34]. - User data showed a 20% increase in active users across the company's platforms, reaching 2 million active users by the end of the fiscal year[50]. - The company provided an optimistic outlook for the next fiscal year, projecting a revenue growth of 10% to 12% based on current market trends and user acquisition strategies[50]. - New product launches are expected to contribute an additional HKD 200 million in revenue, with a focus on enhancing user experience and expanding service offerings[50]. - The company is actively pursuing market expansion in mainland China, targeting a 25% increase in market share within the next two years[51]. Cost Control and Financial Management - The company will continue to implement cost control measures to mitigate the financial impact of the pandemic[63]. - The increase in loss was primarily due to a reduction in government subsidies from approximately HKD 242 million in the previous year to about HKD 34 million this year[62]. - Excluding the non-recurring government subsidies, the company's performance would have improved by approximately 40.6% or about HKD 116 million year-on-year due to increased revenue and effective cost control measures[62]. - The group has implemented cost control measures to mitigate financial impacts due to ongoing travel restrictions[69]. - The management plans to adjust business strategies and implement cost control measures to mitigate financial impacts from external risks due to ongoing pandemic uncertainties[79]. Debt and Financial Position - As of March 31, 2022, the total outstanding debt amounted to approximately HKD 1,934 million, compared to HKD 1,911 million in the previous year[82]. - The debt-to-equity ratio as of March 31, 2022, was approximately 88.4%, an increase from 84.4% in the previous year[82]. - The total liabilities amounted to HKD (2,925,623,000), an increase from HKD (2,863,374,000) in the previous year[162]. Governance and Compliance - The board of directors is composed of at least three independent non-executive directors, with one possessing appropriate professional qualifications or relevant financial management expertise[100]. - The audit committee, consisting of three independent non-executive directors, held two meetings during the year ending March 31, 2022, to review the company's financial statements and internal controls[107]. - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, to oversee specific areas of governance[104]. - The company has adopted a board diversity policy aimed at enhancing competitive advantage through increased diversity in board composition[112]. - The company confirmed its responsibility for preparing financial statements that fairly reflect its financial position for the year ended March 31, 2022[132]. Operational Challenges - The group faced significant operational challenges, as indicated by the substantial increase in losses compared to the previous fiscal year[161]. - Local transportation service revenue increased significantly due to a rebound in passenger flow, while cross-border transport services faced unprecedented challenges due to ongoing travel restrictions[63]. Shareholder Information - The company has available reserves for distribution amounting to approximately HKD 72,047,000 as of March 31, 2022[169]. - The five largest customers accounted for less than 18% of the total revenue, while the largest supplier accounted for approximately 25% of total purchases[171]. - The company does not recommend the distribution of a final dividend for the year ending March 31, 2022[59].

冠 忠 巴 士 集 團 有 限 公 司 (於百慕達註冊成立之有限公司) (股份代號: 306) 2021/2022 中期報告 0 ITULES ETROD 冠忠四十KCBH Fa HAN an 1969 tt 中期簡明綜合損益表 冠忠巴士集團有限公司（「本公司」）之董事（「董事」）會（「董事會」）欣然宣佈本公司及其附屬公司（統稱「本集團」）截至 二零二一年九月三十日止六個月之未經審核簡明綜合業績，連同二零二零年同期之比較數字。中期簡明綜合財務資料 未經審核，但已由本公司之審核委員會審閱。 | --- | --- | --- | --- | |------------------------------------------|-------|-----------------------------------------------------------------|------------------------------------| | | 附註 | 截至九月三十日止六個月 \n二零二一年 \n（未經審核） \n千港元 | 二零二零年 \n（未經審核） \n千港元 | | | | | | | 收入 ...

Company Operations - Kwoon Chung Bus Holdings Limited operates approximately 1,357 non-franchised public buses and 463 luxury cars as of March 31, 2021[11]. - The company has positioned itself as the largest non-franchised public bus and luxury car operator in Hong Kong[11]. - Kwoon Chung acquired 100% of the shares of various companies, including Tai Fung Bus Company and Trade Travel (Hong Kong) Limited, enhancing its market presence in the tourism bus service sector[12]. - The company has developed a network of six 24-hour cross-border shuttle bus routes since 2004, connecting designated locations in Hong Kong with the Huanggang Port[13]. - Kwoon Chung has successfully secured the operation of the Hong Kong-Zhuhai-Macao Bridge shuttle bus service, benefiting from increased traffic and business opportunities following the bridge's opening[16]. - The company has made strategic acquisitions, including 100% of the shares of You Lian Travel Bus Group and Wai Hong Travel Bus Company, further solidifying its position in the non-franchised bus market[14]. - Kwoon Chung's subsidiary, New Lantao Bus (1973) Limited, operates franchised bus services on Lantau Island and cross-border routes[12]. - The company has a strong focus on providing services for school buses, tourism, and employee transportation, catering to various customer needs[12]. Financial Performance - The total revenue for the year ended March 31, 2021, was HKD 1,083,879,000, a decrease from HKD 2,463,264,000 in the previous year, representing a decline of approximately 56%[25]. - The company's net loss for the year was HKD 43,744,000, compared to a profit of HKD 22,417,000 in the previous year[25]. - Revenue from cross-border services between mainland China and Hong Kong was HKD 10,491,000, significantly down from HKD 898,213,000 in the previous year, indicating a decline of approximately 98.8%[25]. - The local bus service revenue was HKD 729,018,000, down from HKD 838,083,000, reflecting a decrease of about 13%[25]. - The company recorded a consolidated loss of approximately HKD 44 million for the fiscal year ending March 31, 2021, compared to a consolidated profit of approximately HKD 22 million in the previous year[44]. - Revenue for the year was approximately HKD 1,084 million, a decrease of about 56% from approximately HKD 2,463 million in the previous year[44]. - The loss per share for the year was HKD 0.098, compared to earnings per share of HKD 0.043 in the previous year[44]. - The company received a total of HKD 242 million in government subsidies under the anti-epidemic fund to alleviate operating costs, including HKD 141 million from the "Employment Support Scheme" fully utilized for employee salaries[48]. Market Expansion and Future Outlook - The company continues to explore market expansion opportunities and new service offerings to enhance its competitive edge[16]. - The company is optimistic about future growth due to the implementation of key national policies such as the Guangdong-Hong Kong-Macao Greater Bay Area plan and the Belt and Road Initiative[20]. - The management anticipates a gradual recovery in demand for regular bus services as local pandemic conditions stabilize[51]. - The company is optimistic about the recovery of the tourism industry in mainland China, particularly in the Greater Bay Area, once the pandemic situation improves[59]. Governance and Compliance - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring compliance with listing rules[75][80]. - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with standards[72][73]. - The company has established a director nomination policy outlining the selection criteria and process for appointing directors[95]. - The company has established transparent procedures for formulating compensation policies to ensure no director participates in determining their own remuneration[102]. - The board of directors is responsible for reviewing the company's corporate governance policies and practices, ensuring compliance with legal and regulatory requirements[103]. Environmental and Social Responsibility - The group emphasizes environmental protection and has implemented strict measures to comply with current environmental laws and regulations[187]. - The group has adopted sustainable development policies and practices, focusing on reducing environmental impact through energy conservation and resource efficiency[187]. - The group is committed to using cleaner fuels and the latest technologies to minimize pollution in its bus operations[187]. - The environmental, social, and governance measures adopted by the group are detailed in a separate report to be published in accordance with listing rules[187]. Employee Relations - The group employs approximately 3,900 employees across Hong Kong, mainland China, and Macau as of March 31, 2021[64]. - The company emphasizes the importance of maintaining strong relationships with employees, customers, and suppliers for sustainable development[186].

Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 476,670,000, a decrease of 64.0% compared to HKD 1,324,088,000 in the same period of 2019[3] - Gross loss for the period was HKD 41,647,000, compared to a gross profit of HKD 184,924,000 in the previous year[3] - The net loss for the period was HKD 75,786,000, significantly higher than the net loss of HKD 10,822,000 in the prior year[6] - Other income and gains amounted to HKD 146,946,000, an increase from HKD 26,599,000 in the previous year[3] - The company reported a total comprehensive loss of HKD (54,095,000) for the six months ended September 30, 2020, compared to a total comprehensive loss of HKD (18,608,000) for the same period in 2019, reflecting a worsening financial performance[14] - The adjusted loss before tax for the period was HKD 64,168,000, compared to a profit in the previous year, indicating a challenging financial environment[29] - The pre-tax loss for the group was HKD 74,508,000 for the six months ended September 30, 2020, compared to a loss of HKD 6,786,000 for the same period in 2019, indicating a significant increase in losses[43] - The group recognized a total tax expense of HKD 11,618,000 for the six months ended September 30, 2020, compared to HKD 1,012,000 for the same period in 2019, reflecting a substantial increase in tax liabilities[40] - The group reported a capital commitment of HKD 150,057,000 as of September 30, 2020, compared to HKD 127,089,000 as of March 31, 2020, indicating an increase in future capital expenditures[52] Revenue Breakdown - The transportation services revenue was HKD 437,373,000, down from HKD 1,271,345,000, reflecting a significant decline due to the impact of the COVID-19 pandemic[33] - The group’s revenue from hotel and tourism services was HKD 39,274,000, down from HKD 48,469,000 in the previous year, indicating a decline in this segment as well[33] - The group’s other services generated revenue of HKD 23,000, a decrease from HKD 4,274,000 in the previous year[33] - Revenue from the non-patented bus segment for the first half of 2020 was approximately HKD 16.9 million, a decrease of 97.4% compared to approximately HKD 646.5 million in the same period of 2019, primarily due to the COVID-19 pandemic and related government measures[70] - Revenue from local non-patented bus services was approximately HKD 348.6 million, down 19.7% from approximately HKD 434 million in the same period last year, driven by reduced passenger demand due to the pandemic[72] - Revenue from local luxury car services was approximately HKD 5.3 million, a decrease of 93.4% from approximately HKD 80.4 million in the same period of 2019, attributed to restrictions on overseas travelers[73] - The ticket revenue for the patented bus segment was approximately HKD 48.1 million, down 50.9% from approximately HKD 98 million in the same period last year, due to a sharp decline in passenger numbers[74] Expenses and Cost Management - Administrative expenses decreased to HKD 143,540,000 from HKD 180,966,000, reflecting a reduction of 20.7%[3] - The company has implemented various cost-saving measures and applied for government support programs to mitigate financial impacts from the pandemic[69] - The group recognized a reduction in lease payments of HKD 3,027,000 due to rent concessions granted by landlords as a result of the COVID-19 pandemic[24] - Total remuneration paid to key management personnel was HKD 6,871,000 for the six months ended September 30, 2020, down 56.52% from HKD 15,809,000 in the previous year[57] Assets and Liabilities - The total assets as of September 30, 2020, were HKD 5,221,636,000, compared to HKD 5,223,057,000 as of March 31, 2020[12] - Current assets increased to HKD 1,007,349,000 from HKD 887,647,000, representing a growth of 13.5%[9] - Current liabilities totaled HKD 1,739,813,000, a slight decrease from HKD 1,783,538,000 in the previous period[12] - The company incurred a loss of HKD (74,508,000) during the period, which was a significant increase from the loss of HKD (6,786,000) in the prior year[14] - The group’s trade receivables as of September 30, 2020, were HKD 135,238,000, down from HKD 218,797,000 as of March 31, 2020, showing a decrease of approximately 38.2%[45] - The group’s trade payables as of September 30, 2020, were HKD 51,998,000, down from HKD 62,874,000 as of March 31, 2020, reflecting a decrease of approximately 17.3%[49] Cash Flow and Financing - The net cash flow from operating activities for the six months ended September 30, 2020, was HKD 156,021,000, a decrease of 33.5% compared to HKD 235,081,000 for the same period in 2019[16] - The net cash flow used in investing activities was HKD (19,451,000), down from HKD (158,637,000) in the previous year, indicating a significant reduction in investment expenditures[16] - New bank borrowings amounted to HKD 109,000,000, a decrease from HKD 320,000,000 in the previous year, indicating a reduction in financing activities[16] - The group’s total liabilities included interest-bearing bank borrowings, which were assessed to have fair values similar to their carrying amounts due to their short-term nature[59] Corporate Governance and Compliance - The company has complied with the corporate governance code and standards throughout the six-month period ending September 30, 2020, as per the Hong Kong Stock Exchange listing rules[99] - The audit committee, consisting of three independent non-executive directors, reviewed the group's interim condensed consolidated financial information[101] - No purchases, redemptions, or sales of the company's listed securities were made by the company or its subsidiaries during the six-month period ending September 30, 2020[100] Future Outlook and Strategy - The management anticipates that revenue will not return to normal levels in the short term, with financial performance in the second half of 2020 remaining uncertain[72] - The company plans to closely monitor market developments and adjust business strategies to maintain competitiveness and promote long-term growth[72] - The company holds a 67.807% equity interest in Bipenggou Tourism, which continues to face challenges due to decreased travel demand amid the pandemic, resulting in ongoing net losses[76]

Operations and Market Position - The group operates approximately 1,352 non-franchised public buses and 354 luxury cars as of March 31, 2020[28]. - The group has positioned itself as the largest non-franchised public bus and luxury car operator in Hong Kong[28]. - The acquisition of 100% of the shares of various companies has strengthened the group's market position in the cross-border bus service sector[30]. - The group has developed a network of six 24-hour cross-border shuttle bus routes since 2004[30]. - The group acquired 100% of the shares of Youlian Tour Bus Group and Huikang Tour Bus Company in 2016 and 2018, respectively, further consolidating its position in the non-franchised bus market[31]. - The group has a strong presence in school bus, tourism, hotel, and employee bus services, operating daily routes from the New Territories to Hong Kong Island[29]. - The group has expanded its operations to include cross-border routes connecting Shenzhen Bay and the Hong Kong-Zhuhai-Macao Bridge[29]. - The group has a significant market share in the local and cross-border bus services, enhancing its competitive edge[31]. - The group has established a robust operational framework through its subsidiaries, ensuring efficient service delivery across various transport sectors[29]. Financial Performance - Total revenue for the year ended March 31, 2020, was HKD 2,463,264,000, a decrease of 17.1% from HKD 2,971,865,000 in the previous year[43]. - The annual profit for the year was HKD 22,417,000, down 91.4% from HKD 259,360,000 in the previous year[43]. - Revenue from cross-border services between Mainland China and Hong Kong was HKD 1,011,842,000, a decline of 30.3% from HKD 1,451,653,000 in the previous year[43]. - Local service revenue increased to HKD 838,083,000, up 4.4% from HKD 804,192,000 in the previous year[43]. - The fleet size for non-franchised buses was 1,352 vehicles, a slight decrease from 1,376 vehicles in the previous year[43]. - The consolidated profit for the year was approximately HKD 22,000,000, a decrease of about 91.5% compared to last year's profit of approximately HKD 259,000,000[63]. - The significant decline in net profit was primarily due to social events and the outbreak of COVID-19, which led to a substantial drop in visitor numbers to Hong Kong[67]. - The company implemented various cost control measures, including salary reductions for senior management and staff, encouraging unpaid leave, and postponing the replacement of new buses[67]. - The company received subsidies from the Hong Kong government's anti-epidemic fund, which partially offset the decline in net profit[67]. - The board did not recommend a final dividend for the year ending March 31, 2020, compared to a dividend of HKD 0.16 per share in 2019[64]. - The company has suspended certain operating ticketing centers and cross-border bus routes as part of its cost control measures[67]. Management and Governance - The company has over 40 years of experience in the bus operations sector, with the current chairman leading the board[45]. - The CEO, who joined the company in 2011, is responsible for daily management and operations, holding degrees in mathematics and economics[46]. - The CFO has been with the company since 2004 and oversees daily management and operations, with a background in accounting and finance[47]. - The COO, appointed in 2014, is responsible for daily management and operational units, holding a PhD in law and a bachelor's degree in economics[52]. - The board includes independent non-executive directors with extensive experience in law, finance, and corporate governance[49][50]. - The management team is committed to expanding the company's market presence and exploring new business opportunities[53]. - The company has received various accolades, including honors for its management team members, reflecting its commitment to excellence in the industry[52]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring compliance with listing rules regarding independent directors[93]. - The company regularly conducts performance evaluations for employees, with discretionary year-end bonuses and stock options awarded based on group performance and individual contributions[82]. - The board confirmed its responsibility for the effectiveness of risk management and internal control systems, aiming to manage risks rather than eliminate them[127]. Environmental and Social Responsibility - The company is committed to maintaining effective communication with shareholders, particularly through annual general meetings and other shareholder meetings[133]. - The company aims to enhance its corporate social responsibility and comply with relevant laws and regulations[148]. - The company has a commitment to resource conservation and recycling, aiming to further enhance its social and environmental responsibilities[160]. - The group has achieved ISO39001 certification for road traffic safety management, making it the first transport company in Hong Kong to receive this certification[170]. - The group has been actively involved in community investment, including partnerships with NGOs and charitable organizations for fundraising and public service activities[175]. - The group emphasizes employee training and development, providing regular onboarding and in-service training to enhance overall work quality[169]. - The group has implemented a comprehensive safety training program for drivers, focusing on defensive driving techniques and emergency procedures[166]. - The group has a zero-accident vision and continuously reviews safety measures to enhance service quality[170]. - The group collaborates closely with suppliers to ensure compliance with local environmental, business, and labor laws[171]. Future Outlook and Strategic Initiatives - The company is optimistic about future growth due to the implementation of the Greater Bay Area and Belt and Road initiatives[37]. - The group anticipates that revenue will improve as cross-border traffic gradually resumes, depending on government quarantine and testing policies[72]. - The group expects the Greater Bay Area to become a preferred destination for Chinese travelers once travel restrictions are lifted, benefiting cross-border operations[72]. - The group is taking a cautious approach to mitigate adverse impacts on operations and will implement appropriate measures as needed[72]. Financial Management and Risk - The group adopts a prudent financing and financial management policy to minimize financial risks, relying on internal cash flow, bank credit, or other financing methods available in Hong Kong and/or mainland China for major investment projects[81]. - The group closely monitors the exchange rate between the Hong Kong dollar and the Chinese yuan, planning to hedge any significant foreign exchange risks when necessary[81]. - The group’s borrowings are primarily at floating interest rates, and appropriate measures, including several hedging tools, are taken to minimize interest rate risks[81]. - The internal audit department is responsible for establishing the internal control framework, covering all significant controls including financial, operational, and compliance controls[131].

Financial Performance - Revenue for the six months ended September 30, 2019, was HKD 1,324,088,000, representing an increase of 4.6% compared to HKD 1,266,410,000 in the same period of 2018[3] - Gross profit decreased to HKD 184,924,000, down 17.0% from HKD 222,534,000 year-on-year[3] - The company reported a loss before tax of HKD 9,810,000, compared to a profit of HKD 39,968,000 in the previous year[3] - Net loss for the period was HKD 10,822,000, a significant decline from a profit of HKD 34,069,000 in the same period last year[3] - Basic and diluted earnings per share were both HKD (1.47), compared to HKD 8.11 in the previous year[3] - The total comprehensive loss for the period was HKD (12,349,000), compared to HKD (18,608,000) in the previous year, showing a decrease in losses[15] - Adjusted profit before tax for the group was HKD 39,968, while the total profit before tax was reported as a loss of HKD 9,810[55][58] - The group reported a pre-tax loss of HKD 6,786,000 for the six months ended September 30, 2019, compared to a profit of HKD 37,434,000 in the same period of 2018[72] - The total tax expense for the period was HKD 1,012,000, significantly lower than HKD 5,899,000 in the previous year[69] Assets and Liabilities - Total non-current assets as of September 30, 2019, amounted to HKD 4,465,189,000, slightly up from HKD 4,446,496,000 as of March 31, 2019[9] - Current assets totaled HKD 880,658,000, compared to HKD 861,547,000 as of March 31, 2019[9] - Current liabilities increased to HKD 2,081,340,000 from HKD 2,078,161,000 in the previous period[12] - Total equity decreased to HKD 2,234,868,000 from HKD 2,269,710,000 as of March 31, 2019[12] - The total liabilities increased by HKD 69,685 thousand due to the implementation of HKFRS 16[39] - The group’s total outstanding debt as of September 30, 2019, was approximately HKD 2,006 million, with a debt-to-equity ratio of about 89.8%[117] Cash Flow - The net cash flow from operating activities for the six months ended September 30, 2019, was HKD 235,081,000, compared to HKD 149,743,000 for the same period in 2018, representing a 57% increase[18] - The net cash flow used in investing activities for the six months ended September 30, 2019, was HKD (158,637,000), an improvement from HKD (376,926,000) in the previous year[18] - The net cash flow used in financing activities for the six months ended September 30, 2019, was HKD (76,125,000), compared to HKD 171,509,000 in the same period of 2018, indicating a significant reduction in cash outflow[18] - The cash and cash equivalents at the end of the period were HKD 291,863,000, a decrease from HKD 311,157,000 at the end of the previous year[18] Revenue Breakdown - Revenue from non-patented bus services was HKD 1,080,549,000, up 6.6% from HKD 1,013,741,000 year-on-year[62] - Revenue from local luxury car services decreased to HKD 80,389,000, down 16.0% from HKD 95,661,000 in the previous year[62] - Revenue from mainland China bus services was HKD 12,450,000, slightly down from HKD 13,387,000 in the previous year[62] - Revenue from joint venture bus rental, advertising, and administrative services amounted to HKD 57,828,000 for the six months ended September 30, 2019, down from HKD 63,759,000 in the previous year, a decrease of approximately 9%[88] - Revenue from cross-border services between mainland China and Hong Kong was HKD 646.5 million, an increase from HKD 600.1 million in the previous year[105] - Revenue from local regular services was HKD 395.6 million, up from HKD 369.0 million year-on-year[105] Operational Highlights - The company experienced a significant decline in net profit for its non-patented bus services due to ongoing social unrest in Hong Kong and a decrease in tourist arrivals since July 2019[103] - The company has implemented stricter cost control measures to mitigate the adverse effects of the economic downturn[104] - The group is focusing on expanding its operations in mainland China, including hotel services and designated route bus services[46] - Future strategies include enhancing service offerings and exploring potential mergers and acquisitions to strengthen market position[46] - The group remains the largest non-patented bus operator in Hong Kong by fleet size[103] - The group operates 27 patented bus routes in Lantau Island, an increase from 23 routes in 2018, with a total fleet of 156 buses[109] Shareholder Information - The company reported a total issued share capital of HKD 47,678,000 as of September 30, 2019[15] - The group issued 15,090,842 shares as part of a scrip dividend plan, raising HKD 54,689,000 to settle the final dividend for the year ended March 31, 2019[82] - As of September 30, 2019, the major shareholder, Ms. Wu Li-yi, holds 241,535,555 shares, representing 50.66% of the issued share capital[132] - Cathay International Corporation holds 105,118,768 shares, accounting for 22.05% of the issued share capital[132] Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the interim consolidated financial information of the group[139] - The company has complied with the corporate governance code throughout the reporting period[137] - No arrangements were made for directors to acquire rights to purchase shares or bonds of the company during the reporting period[125] - The company expressed gratitude to its business partners, shareholders, and dedicated employees in its report[140]

Operations and Market Position - The group operates approximately 1,383 non-franchised public buses and 397 luxury cars as of March 31, 2019[27]. - The group has positioned itself as the largest non-franchised public bus and luxury car operator in Hong Kong[27]. - The acquisition of 100% of the shares of Tai Fung Bus Company and Trade Travel (Hong Kong) Limited in 1997 solidified the group's status in the tourism bus service sector[28]. - The group has developed a network of six 24-hour cross-border shuttle bus routes since 2004, connecting the Huanggang Port with designated locations in Hong Kong[29]. - The group acquired 100% of the shares of Youlian Tourist Bus Company Group and Huikang Tourist Bus Company in 2016 and 2018, respectively, further strengthening its position in the non-franchised bus market[32]. - The group has expanded its operations to include cross-border bus services to Shenzhen Bay and the Hong Kong-Zhuhai-Macao Bridge[28]. - The group has a significant presence in the local and cross-border bus business, enhancing its market share through strategic acquisitions[30]. - The group operates a flagship wholly-owned subsidiary, KCBH, which focuses on various bus services including school buses and employee transport[28]. - The group has established a robust operational framework to support its extensive fleet and service offerings across Hong Kong[27]. Financial Performance - The total revenue for the year ended March 31, 2019, was HKD 2,971,865,000, an increase of 16.8% from HKD 2,543,654,000 in 2018[41]. - The revenue from cross-border services between Mainland China and Hong Kong reached HKD 1,451,653,000, up 21.5% from HKD 1,193,900,000 in the previous year[41]. - The company reported an annual profit of HKD 259,360,000, a decrease of 6.1% compared to HKD 276,349,000 in 2018[41]. - The number of non-franchised buses increased to 1,383 from 1,268 in the previous year, reflecting a growth in operational capacity[41]. - The revenue from the Mainland China business segment was HKD 204,163,000, a slight increase from HKD 198,607,000 in the previous year[41]. - The local luxury car service revenue was HKD 201,934,000, showing a modest increase from HKD 197,270,000 in the previous year[41]. - The consolidated profit for the year was approximately HKD 259 million, a decrease of about 6.1% compared to approximately HKD 276 million in the previous year[71]. - The decrease in profit was primarily due to a significant drop in revenue from the sale of buses and vehicles, which was HKD 13.1 million this year compared to HKD 66.7 million last year[76]. - Financial expenses increased due to rising bank loan interest rates and outstanding loan balances[76]. Strategic Focus and Future Outlook - The company has a strategic focus on the logistics and tourism sectors, which are two of Hong Kong's four pillar industries, supported by national policies like the Greater Bay Area initiative[36]. - The company is optimistic about future growth due to the implementation of significant national policies in Mainland China[36]. - The company anticipates a revenue growth of 10% for the next fiscal year, projecting total revenues to reach approximately $500 million[50]. - New product launches are expected to contribute an additional $50 million in revenue, with a focus on innovative technology solutions[51]. - The company is expanding its market presence in mainland China, particularly in the tourism and hotel sectors, with an investment of $30 million planned for the next year[52]. - A strategic acquisition is in progress, aimed at enhancing the company's service offerings and market share, valued at approximately $100 million[53]. - The company plans to continue exploring new business opportunities, which will be detailed in the "Business Review and Future Outlook" section[76]. Corporate Governance and Compliance - The management team emphasized the importance of compliance and governance, with ongoing training programs for staff[55]. - The board of directors includes experienced professionals with over 40 years in the industry, ensuring strong leadership and oversight[57]. - The company has maintained compliance with the corporate governance code as per the listing rules throughout the fiscal year ending March 31, 2019[94]. - The board meets at least four times a year to review the group's business operations and development, ensuring timely access to relevant information[106]. - The company emphasizes high standards of corporate governance and business ethics as a core value, aligning with the long-term interests of stakeholders[94]. - The Audit Committee consists of three independent non-executive directors, with meetings held twice a year to review financial statements and internal controls[109]. - The Nomination Committee held one meeting during the year to review the structure and independence of the board, ensuring a balanced perspective on board diversity[115]. - The company has adopted a board diversity policy, focusing on various aspects such as gender, age, and professional experience to maintain competitive advantage[116]. Environmental and Social Responsibility - The company is committed to corporate social responsibility and integrates sustainable development concepts into its operations[156]. - The company has implemented multiple measures to promote eco-friendly driving habits, including reminders for drivers to turn off engines when parked, which helps reduce emissions and fuel consumption[162]. - The company has procured 2 electric buses for trial operations, with positive feedback from frontline staff regarding their performance[163]. - The group has established a non-profit organization, "Barrier-Free Transport Services," to provide accessible transportation for individuals in need, promoting social inclusion[185]. - The group actively participates in community service, including fundraising and employee involvement in charitable activities, demonstrating corporate social responsibility[183]. - The group sponsors local football development initiatives, contributing resources to enhance community engagement and promote sports[184]. Employee Engagement and Development - The group employs around 4,000 staff members, highlighting its commitment to providing a safe and healthy work environment[172]. - The group offers comprehensive employee benefits, including medical insurance and regular health check-ups for drivers aged 60 and above[177]. - The group conducts regular safety driving training for drivers, covering essential topics such as good driving attitude and emergency procedures[177]. - The group encourages employee development through regular training and participation in relevant seminars and courses[178]. - The group has a transparent and open culture that promotes effective internal communication and employee feedback[175]. Financial Management and Risk - The group adopts a prudent financing and financial management policy to minimize financial risks, relying on internal cash flow and bank credit for major investments[91]. - The company’s financial risk management details are disclosed in the financial statements, ensuring transparency in its operations[188]. - The board is responsible for evaluating and determining the nature and extent of risks the company is willing to take to achieve strategic goals, ensuring effective risk management and internal control systems are in place[143]. - The internal audit department is independent of daily operations and is tasked with establishing the internal control framework, which includes financial, operational, and compliance controls[143]. - The company maintains a proper governance structure and clearly defines the responsibilities and powers of senior management[140].