Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 1,112,211,000, an increase of 24.5% compared to HKD 893,308,000 for the same period in 2023[5] - Gross profit for the same period was HKD 211,132,000, up 17.0% from HKD 180,448,000 in 2023[7] - Profit before tax decreased to HKD 10,407,000, down 47.0% from HKD 19,646,000 in the previous year[9] - Net profit for the period was HKD 9,366,000, slightly down from HKD 9,455,000 in 2023[11] - Basic and diluted earnings per share for the period were HKD 1.34, compared to HKD 1.16 in the same period last year, reflecting a 15.5% increase[14][15] - Total comprehensive income for the period was HKD 17,845,000, compared to a loss of HKD 6,502,000 in 2023[21] - Total revenue for the six months ended September 30, 2024, reached HKD 1,112,211, an increase from HKD 893,308 in the same period of 2023, representing a growth of approximately 24.6%[42] - The pre-tax profit for the six months ended September 30, 2024, was HKD 106,434, compared to HKD 112,225 for the same period in 2023, indicating a decrease of about 5.5%[45] - The total tax expense for the six months ended September 30, 2024, was HKD 1,041, a significant decrease from HKD 10,191 in the same period of 2023[45] - The group recorded an unaudited consolidated profit attributable to the parent company of approximately HKD 6,400,000 for the six months ended September 30, 2024, compared to HKD 5,500,000 for the same period in 2023, showing relative stability[57] Assets and Liabilities - Non-current assets as of September 30, 2024, totaled HKD 3,653,482,000, a slight decrease from HKD 3,655,363,000 as of March 31, 2024[24] - Current assets increased to HKD 1,105,664,000 from HKD 922,086,000, representing a growth of 19.9%[26] - Current liabilities rose to HKD 906,633,000, up from HKD 784,731,000, indicating a 15.5% increase[26] - Total equity as of September 30, 2024, was HKD 2,014,223,000, a marginal increase from HKD 2,013,058,000 as of March 31, 2024[26] - Trade receivables as of September 30, 2024, amounted to HKD 339,520, up from HKD 304,563 as of March 31, 2024, reflecting an increase of approximately 11.5%[49] - The net value of trade receivables after impairment was HKD 301,600 as of September 30, 2024, compared to HKD 272,076 as of March 31, 2024, showing an increase of about 10.9%[51] - The company’s trade payables as of September 30, 2024, were HKD 70,507, an increase from HKD 57,502 as of March 31, 2024, indicating a rise of approximately 22.5%[54] - As of September 30, 2024, the total outstanding debt amounted to approximately HKD 1,648,600,000, an increase from HKD 1,544,700,000 as of March 31, 2024[73] - The debt-to-equity ratio as of September 30, 2024, was approximately 81.8%, up from 76.7% as of March 31, 2024[73] Revenue Breakdown - Total revenue for the six months ended September 30, 2024, was HKD 1,171,397,000, with external sales contributing HKD 1,112,211,000[39] - The non-patent bus segment generated revenue of HKD 863,755,000, with a profit of HKD 59,481,000[39] - The luxury car segment reported revenue of HKD 196,693,000, achieving a profit of HKD 9,314,000[39] - The public minibus segment incurred a loss of HKD 4,214,000, with total revenue of HKD 112,595,000[39] - The mainland China business segment generated revenue of HKD 81,940,000, with a profit of HKD 1,598,000[39] - Other services contributed HKD 800,000 in revenue, resulting in a loss of HKD 1,187,000[39] - Revenue from non-patented bus services was approximately HKD 798,000,000, a 26.4% increase from approximately HKD 631,500,000 in the previous period, driven by the recovery of the domestic tourism industry and MICE tourism[60] - Revenue from luxury car services was approximately HKD 140,800,000, a significant increase of 53.4% from approximately HKD 91,800,000 in the previous period, primarily due to increased traffic from Macau[61] - Revenue from patented bus and public minibus services was approximately HKD 104,300,000, a 12.2% increase from approximately HKD 93,000,000 in the previous period, despite rising operational costs[63] - Revenue from mainland China operations was approximately HKD 67,800,000, a decrease of 10.7% from approximately HKD 75,900,000 in the previous period, although positive contributions were noted from specific tourism and hotel operations[64] Corporate Governance and Management - The group did not have any supplier financing arrangements, which had no impact on the interim financial data[34] - The accounting policies adopted for the interim financial data are consistent with those applied in the annual financial statements for the year ended March 31, 2024[32] - The group’s financial position and performance were unaffected by the recent amendments to the Hong Kong Financial Reporting Standards[33] - The group adopts a prudent financing and financial management policy to minimize financial risks, relying on internal cash flow and bank credit for future investments[74] - The group has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations during the reporting period[77] - No purchases, redemptions, or sales of the company's listed securities were made by the company or its subsidiaries during the reporting period[78] - Ms. Zhang has been appointed as an independent non-executive director with an annual director's fee of HKD 285,000, effective from December 1, 2024, for a term of two years[84] - Ms. Zhang has confirmed her independence according to the listing rules and has no financial or other interests in the group's business[86] - The board welcomes Ms. Zhang to her new role, indicating a commitment to governance and oversight[87] Future Outlook and Strategic Initiatives - The group is exploring business transformation opportunities and has replaced all old diesel buses in Nanzhang County with electric buses, receiving positive feedback from the local government and community[68] - The group has applied for a second round of the transport industry labor importation scheme to maintain operational capacity in response to increasing service demand[60] - The management believes that the post-pandemic recovery in domestic tourism will enhance the attractiveness of the Bifengxia scenic area, which is expected to draw more visitors[65] - The group maintains a cautiously optimistic outlook for the second half of the year, influenced by external risks and uncertainties, including global fuel price fluctuations and wage pressures[70] - The group is actively exploring autonomous electric bus services, with the first autonomous public transport system in Hong Kong expected to commence operations in Q4 2025[71] - The group has secured contracts for autonomous electric bus services in the West Kowloon Cultural District, with operations expected to start in Q4 2025[71] - Key infrastructure projects, such as the Kai Tak Sports Park and the Hong Kong-Zhuhai-Macao Bridge, are anticipated to boost domestic tourism and facilitate business growth in the Greater Bay Area[70] - The group employs approximately 4,580 employees as of September 30, 2024, an increase from 4,440 employees as of March 31, 2024[75]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對本公告之準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或 任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 KWOON CHUNG BUS HOLDINGS LIMITED 冠忠巴士集團有限公司 * 主席 黃良柏 （銅紫荊星章） 香港，二零二四年十一月十四日 於本公告日期，董事會由執行董事黃良柏先生（銅紫荊星章）、黃焯安先生及盧文波 先生，以及獨立非執行董事陳炳煥先生（銀紫荊星章，太平紳士）、方文傑先生及陳方 剛先生組成。 * 僅供識別 （股份代號：306） 董事會會議通告 冠忠巴士集團有限公司董事會（「董事會」）謹此宣告，董事會會議將於二零二四年十 一月二十七日（星期三）假座香港柴灣創富道 8 號 3 樓舉行，會上將批准刊發截至二 零二四年九月三十日止六個月未經審核之中期業績公告，並預期會作出建議派發中期 股息（如有）的決定。 承董事會命 冠忠巴士集團有限公司 （於百慕達註冊成立之有限公司） ...

Financial Performance - The company achieved a net profit of approximately HKD 32,100,000 for the year ending March 31, 2024, compared to a net loss of approximately HKD 130,700,000 in the previous year[1]. - Total revenue for the year was approximately HKD 2,095,400,000, representing a 59.8% increase from approximately HKD 1,311,300,000 in the previous year[1]. - The gross profit margin for the year reached 21.8%, an increase of 15.8% year-on-year, gradually recovering to pre-pandemic levels[1]. - Financial expenses increased by 22.9% compared to the previous year, primarily due to high interest rates during the year[2]. - The total outstanding debt as of March 31, 2024, was approximately HKD 1,544.7 million, down from HKD 1,745.2 million in 2023, resulting in a debt-to-equity ratio of about 76.7%[83]. - The company reported a profit of HKD 52,169,000 for the year, recovering from a loss of HKD 137,879,000 in the previous year[110]. - Revenue from luxury cars surged to HKD 231,221,000, compared to HKD 66,056,000 in the previous year, reflecting a growth of 250.5%[110]. - Revenue from mainland China operations reached approximately HKD 231.7 million, a significant increase of 98.2% from HKD 116.9 million in the previous year, driven by a strong recovery in local tourism[94]. Operational Highlights - Cross-border transportation revenue amounted to approximately HKD 594,500,000, a significant increase of 926.8% from approximately HKD 57,900,000 in the previous year[3]. - The recovery of the company's Hong Kong operations has been bolstered by the resumption of normal economic activities and strong recovery in mainland tourism[1]. - The group operates approximately 1,285 non-proprietary public buses and 428 luxury cars as of March 31, 2024[47]. - The group has established a network of six 24-hour cross-border shuttle bus lines since 2004, connecting the Huanggang Port with designated locations in Hong Kong[38]. - The group is actively expanding its cross-border transport services in the Greater Bay Area, anticipating strong demand and business opportunities due to rapid regional development[56]. - The group has formed a joint venture with Hafil Transport Company in Saudi Arabia to provide intercity bus transport services, enhancing its international collaboration[66]. Strategic Initiatives - The company plans to implement cost control measures to mitigate the impact of rising labor and fuel costs, which together account for nearly half of total operating costs[2]. - The company is actively working to retain experienced drivers and has applied for the government's labor importation program to stabilize its workforce[5]. - The group is focused on sustainable development in its hotel management and tourism operations, particularly in Chongqing and Sichuan[20]. - The management team is focused on innovation and technology in transportation, aiming to improve service delivery and customer experience[23]. - The group is involved in the development of autonomous driving projects, with a focus on enhancing operational efficiency[30]. - In 2024, the group partnered with KCM-PML Joint Venture to develop an autonomous vehicle transport system for Hong Kong International Airport, marking a significant milestone in smart mobility development[51]. Governance and Management - The company has appointed independent non-executive directors with extensive experience in law and finance, enhancing governance and oversight[17][18]. - The group’s operations director has over 20 years of experience in the bus industry, including leadership roles in major companies, which strengthens operational management[23]. - The independent directors bring valuable insights from their backgrounds in accounting, law, and corporate governance, contributing to effective oversight[18][19]. - The company has established mechanisms to ensure independent opinions and advice are obtained, with the nomination committee evaluating the independence of all independent non-executive directors annually[136]. - The board consists of six directors, including three executive directors and three independent non-executive directors as of March 31, 2024[132]. - The company has implemented a standard code of conduct for directors regarding securities trading, ensuring compliance with listing rules[130]. Community and Social Responsibility - The group is actively involved in community service and non-governmental organizations, reflecting its commitment to corporate social responsibility[18]. - The group has replaced all old diesel buses in Nanzhang County with electric buses, receiving praise from the local government and the public[81]. - The group has been focusing on ecological tourism and leisure travel in the Bipenggou area, which spans approximately 613.8 square kilometers and is only 200 kilometers from Chengdu[68]. Future Outlook - The group maintains a pragmatic and optimistic outlook for the upcoming year, influenced by external factors such as easing inflation in Hong Kong and the nearing end of the US interest rate hike cycle[101]. - The group believes that the rapid development of the Greater Bay Area will provide significant momentum and opportunities for future growth[54]. - The company plans to leverage the location advantages of Chongqing Grand Hotel to explore local market opportunities and enhance business diversification[97].

Business Strategy and Market Opportunities - The group aims to leverage the location advantage of Chongqing Grand Hotel to explore local market opportunities and enhance business diversification[1] - The group is exploring partnerships to optimize land use at the bus station, aiming to create new business opportunities[21] - The company continues to focus on expanding its service offerings, including luxury car rentals and travel services in Hong Kong and mainland China[71] - The company plans to continue expanding its diversified cross-border transportation services in the Greater Bay Area to drive future business growth[94] Financial Performance - The group reported a revenue of HKD 2,095,417 thousand for the year ending March 31, 2024, compared to HKD 1,311,312 thousand in the previous year, representing a year-over-year increase of approximately 59.7%[34] - The gross profit for the same period was HKD 456,795 thousand, significantly up from HKD 78,170 thousand, indicating a substantial improvement in profitability[34] - Total revenue for the year reached HKD 2,208,507,000, an increase from HKD 1,490,879,000 in the previous year, representing a growth of approximately 48%[48] - The adjusted profit before tax was HKD 68,232,000, compared to a loss of HKD 141,511,000 in the previous year, indicating a significant turnaround[48] - The company reported a significant increase in interest income, with bank interest income rising to HKD 6,881,000 from HKD 6,812,000[76] - The company reported a total income from customer contracts of HKD 2,092.8 million for the year, compared to HKD 1,304.2 million in the previous year[105] Debt and Liabilities - As of March 31, 2024, the total outstanding debt amounts to approximately HKD 1,544,700,000, down from HKD 1,745,200,000 in 2023, with a debt-to-equity ratio of about 76.7%[11] - The total liabilities decreased from HKD 2,756,800 thousand to HKD 2,564,391 thousand, indicating a reduction of approximately 6.9%[41] - The group’s cash and cash equivalents decreased to HKD 304,102 thousand from HKD 499,150 thousand, a decline of approximately 39.2%[32] Operational Efficiency and Workforce - The group employs approximately 4,440 employees as of March 31, 2024, an increase from 3,950 in 2023, with a focus on employee qualifications and performance for recruitment and promotion[14] - The group is continuously evaluating resource allocation among its business segments to improve operational efficiency and enhance overall financial health[5] - The group is actively working to retain experienced drivers due to a shrinking labor force and has applied for the government's transport industry labor import program[121] Revenue Streams and Segments - The luxury car service segment generated revenue of HKD 307,534,000, while the non-patented bus segment contributed HKD 1,561,809,000, highlighting the diverse revenue streams[48] - Cross-border transportation revenue reached approximately HKD 594.5 million, a significant increase of 926.8% from HKD 57.9 million in the previous year, driven by the resumption of services after a three-year suspension[93] - Revenue from mainland China operations rose by 98.2% to approximately HKD 231.7 million, up from HKD 116.9 million, driven by strong recovery in local tourism[100] Profitability and Loss - The net loss attributable to the parent company was HKD 52,169 thousand for the year, a significant recovery from a loss of HKD 137,879 thousand in the previous year[34] - The company reported a net loss attributable to shareholders of HKD 32,087,000, a significant improvement from a loss of HKD 130,713,000 in the previous year[54] - The company achieved a turnaround from a loss to a profit, reporting a consolidated profit attributable to equity holders of approximately HKD 32,100,000, compared to a loss of HKD 130,700,000 in the previous year[89] Investments and Acquisitions - The group is actively seeking potential acquisitions and strategic partnerships to strengthen its core business and maintain its competitive edge in the non-patented bus sector in Hong Kong[23] - The group holds a 67.807% stake in Bipenggou Tourism, which has seen significant growth in visitor numbers, reaching a historical high this year[128] Customer Experience and Service Innovation - The group is committed to service innovation and improving customer experience in key areas such as service standards and fleet management[131] - The planned construction of a glacier cable car project at Bipenggou is expected to enhance the area's visibility and appeal[133] Regulatory and Compliance - The company has adopted new and revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial statements[68] Dividends and Shareholder Value - The company plans to propose a final dividend subject to approval at the upcoming annual general meeting, indicating a commitment to returning value to shareholders[53] - The company proposed a final dividend of HKD 0.02 per ordinary share, compared to no dividend in the previous year[86]

Financial Performance - Revenue for the six months ended September 30, 2023, was HKD 893,308,000, an increase of 45.7% compared to HKD 613,155,000 for the same period in 2022[12]. - Gross profit for the same period was HKD 180,448,000, significantly up from HKD 319,000 in the previous year[12]. - The company reported a profit before tax of HKD 19,646,000, a turnaround from a loss of HKD 40,494,000 in the prior year[12]. - Net profit for the period was HKD 9,455,000, compared to a loss of HKD 53,907,000 in the same period last year[12]. - Basic and diluted earnings per share for the period were HKD 1.16, recovering from a loss of HKD 8.95 per share in the previous year[12]. - The total comprehensive loss for the period was HKD 6,502 thousand, significantly improved from a total comprehensive loss of HKD 120,465 thousand in the previous year[25]. - The company's retained earnings as of September 30, 2023, stood at HKD 1,006,180 thousand, a decrease from HKD 1,046,687 thousand at the beginning of the period[18]. - The total equity attributable to the owners of the parent company decreased to HKD 253,305 thousand from HKD 255,479 thousand[18]. - The company reported a net profit attributable to equity holders of approximately HKD 5,514,000 for the six months ended September 30, 2023, compared to a net loss of HKD 42,681,000 for the same period in 2022, marking a significant turnaround[89]. Revenue Breakdown - Revenue from customer contracts amounted to HKD 891,349,000, up from HKD 608,886,000 in the previous year, indicating a growth of about 46.5%[45]. - Revenue from luxury car services for the six months ended September 30, 2023, was approximately HKD 91.8 million, an increase of 424.6% compared to HKD 17.5 million for the same period in 2022[111]. - Revenue from mainland China operations for the six months ended September 30, 2023, was approximately HKD 75.9 million, a 60.8% increase from HKD 47.2 million in the same period of 2022[113]. - Non-patented bus services generated revenue of approximately HKD 631.5 million for the six months ended September 30, 2023, representing a 29.7% increase from HKD 486.8 million in the same period of 2022[136]. - Revenue from the patented bus service operated by the subsidiary, New Lantau Bus, was approximately HKD 93 million, a 51.7% increase from HKD 61.3 million in the same period of 2022[138]. - Revenue from transportation services amounted to HKD 572,341,000, with the majority coming from non-patented buses and luxury cars[68]. - Revenue from the public minibus service was approximately HKD 500,000 after resuming operations on January 29, 2023, following a three-year suspension due to the pandemic[112]. Expenses and Liabilities - Administrative expenses rose to HKD 139,106,000 from HKD 119,044,000 year-over-year[12]. - Other income and gains decreased to HKD 54,591,000 from HKD 125,084,000 in the previous year[12]. - Current liabilities increased to HKD 2,233,660,000 from HKD 992,390,000 in the previous period[16]. - The company's current liabilities exceeded current assets by HKD 1,323,645,000, primarily due to interest-bearing bank borrowings of HKD 1,532,800,000 due within 12 months[57]. - The group incurred a total cost of HKD 33,102,000 for the acquisition of property, plant, and equipment during the six months ended September 30, 2023, down from HKD 57,176,000 in the same period of 2022[71]. Cash Flow and Assets - The net cash flow from operating activities for the six months ended September 30, 2023, was HKD 110,162,000, an increase of 6.2% compared to HKD 103,032,000 in 2022[54]. - The net cash flow used in investing activities was HKD (53,473,000), a significant improvement from HKD (145,331,000) in the previous year[54]. - The total assets as of September 30, 2023, were HKD 1,900,625,000, reflecting a slight decrease from HKD 1,911,824,000 at the beginning of the period[52]. - The company's cash reserves were reported at HKD 920,302,000 as of September 30, 2023[52]. - The total cash and cash equivalents at the end of the period decreased to HKD 403,494,000 from HKD 481,187,000, reflecting a decline of 16.2%[54]. - The cash and bank balance at the end of the period was HKD 289,090,000, down from HKD 414,789,000, representing a decrease of 30.2%[54]. Strategic Focus and Future Outlook - The company continues to focus on expanding its bus services and related offerings in Hong Kong and mainland China[33]. - The company believes it has sufficient working capital to meet its operational and financial obligations for the next 12 months[57]. - The company continues to monitor market conditions, particularly the impact of high international fuel prices and rising borrowing costs on its operations[108]. - The group is focusing on enhancing its cross-border transport services, which have been affected by the pandemic, and has been actively reviewing operational performance since the resumption of services in early 2023[164]. - The group plans to leverage opportunities in the Greater Bay Area by diversifying its cross-border transport service offerings to drive future business profitability growth[144]. - The group is committed to optimizing bus routes and schedules while introducing special ticket offers to stimulate sales in the cross-border transport sector[164]. Shareholder and Financing Information - Major shareholders include Cathay International Corporation, holding 109,558,768 shares, representing 22.98% of the issued share capital[182]. - The total equity held by the major shareholder, Mr. Huang Liangbo, is 242,135,220 shares, accounting for 50.79% of the issued share capital[170]. - The company has entered into a financing agreement for a term loan facility of up to HKD 1,800,000,000, effective for three years from the first drawdown date[186]. - The group adopts a prudent financing and financial management policy to minimize financial risks, relying on internal cash flow and bank credit for future major investments[166].

[Company Profile and Interim Results Announcement](index=1&type=section&id=Company%20Profile%20and%20Interim%20Results%20Announcement) [Company Profile](index=1&type=section&id=Company%20Profile) Kwoon Chung Bus Holdings Limited is a Bermuda-incorporated company primarily engaged in bus and transportation services in Hong Kong and Mainland China - Kwoon Chung Bus Holdings Limited is incorporated in Bermuda with its principal place of business in Chai Wan, Hong Kong[21](index=21&type=chunk) - The Group's main activities include non-franchised bus, franchised bus, public light bus, limousine, hotel, and tourism services[22](index=22&type=chunk) [Interim Results Overview](index=1&type=section&id=Interim%20Results%20Overview) The company announced its unaudited condensed consolidated results for the six months ended September 30, 2023, which have been reviewed by the Audit Committee - The Board of Directors announced the unaudited condensed consolidated results for the six months ended September 30, 2023, with comparative figures for the same period in 2022[2](index=2&type=chunk) - The condensed consolidated interim financial information is unaudited but has been reviewed by the Company's Audit Committee[2](index=2&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group's revenue grew significantly by 45.7% to HK$893,308 thousand, achieving a turnaround to a profit of HK$9,455 thousand from a prior-period loss Key Financial Performance | Indicator | Six months ended Sep 30, 2023 (in thousands of HKD) | Six months ended Sep 30, 2022 (in thousands of HKD) | | :--- | :--- | :--- | | Revenue | 893,308 | 613,155 | | Cost of services provided | (712,860) | (612,836) | | Gross Profit | 180,448 | 319 | | Other income and gains, net | 54,591 | 125,084 | | Administrative expenses | (139,106) | (119,044) | | Other expenses, net | (10,522) | (7,942) | | Finance costs | (59,829) | (38,218) | | Profit/(Loss) before tax | 19,646 | (40,494) | | Income tax expense | (10,191) | (13,413) | | Profit/(Loss) for the period | 9,455 | (53,907) | | Attributable to owners of the parent | 5,514 | (42,681) | | Non-controlling interests | 3,941 | (11,226) | - For the six months ended September 30, 2023, **revenue increased by 45.7% year-over-year** to HK$893,308 thousand (2022: HK$613,155 thousand)[6](index=6&type=chunk) - The Group recorded a **profit for the period of HK$9,455 thousand**, a significant turnaround from the loss of HK$53,907 thousand in the prior-year period[6](index=6&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group recorded a total comprehensive loss of HK$6,502 thousand, as the period's profit was offset by exchange differences from translating foreign operations Comprehensive Income Summary | Indicator | Six months ended Sep 30, 2023 (in thousands of HKD) | Six months ended Sep 30, 2022 (in thousands of HKD) | | :--- | :--- | :--- | | Profit/(Loss) for the period | 9,455 | (53,907) | | Other comprehensive loss: | | | | Exchange differences on translation of foreign operations | (15,957) | (66,558) | | Total comprehensive loss for the period | (6,502) | (120,465) | | Attributable to: | | | | Owners of the parent | (6,143) | (100,939) | | Non-controlling interests | (359) | (19,526) | - For the six months ended September 30, 2023, the **total comprehensive loss was HK$6,502 thousand**, primarily due to exchange differences on the translation of foreign operations[10](index=10&type=chunk)[20](index=20&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of September 30, 2023, the Group had total assets of HK$4,624,848 thousand and net current liabilities of HK$1,323,645 thousand Financial Position Summary | Indicator | As of Sep 30, 2023 (in thousands of HKD) | As of Mar 31, 2023 (in thousands of HKD) | | :--- | :--- | :--- | | Total non-current assets | 3,714,833 | 3,802,790 | | Total current assets | 910,015 | 941,478 | | Total assets | 4,624,848 | 4,744,268 | | Total current liabilities | 2,233,660 | 992,390 | | Total non-current liabilities | 414,592 | 1,764,410 | | Total liabilities | 2,648,252 | 2,756,800 | | Total equity | 1,976,596 | 1,987,468 | | Net current liabilities | (1,323,645) | (50,912) | - As of September 30, 2023, the Group's **current liabilities exceeded its current assets by HK$1,323,645 thousand**, mainly due to interest-bearing bank borrowings and contract liabilities payable within 12 months[29](index=29&type=chunk) - The directors believe the Group has sufficient working capital to continue as a going concern, considering potential refinancing arrangements and future financial performance[29](index=29&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) [Corporate Information](index=6&type=section&id=Corporate%20Information) Kwoon Chung Bus Holdings Limited is a Bermuda-incorporated entity whose immediate and ultimate holding companies are based in the British Virgin Islands - Kwoon Chung Bus Holdings Limited is a limited liability company incorporated in Bermuda with its principal place of business in Chai Wan, Hong Kong[21](index=21&type=chunk) - The Group is principally engaged in providing non-franchised bus, franchised bus, public light bus, limousine, hotel, tourism, and other transportation services[22](index=22&type=chunk) - The Company's immediate holding company is Kee Shing Limited, and its ultimate holding company is Winner Way International Limited, both incorporated in the British Virgin Islands[22](index=22&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) The interim financial information is prepared in accordance with HKAS 34 and based on historical cost, with certain assets measured at fair value - The interim condensed consolidated financial information for the six months ended September 30, 2023 has been prepared in accordance with HKAS 34 Interim Financial Reporting issued by the HKICPA[23](index=23&type=chunk) - The information is prepared under the historical cost convention, except for buildings, investment properties, and certain financial assets which are measured at fair value[23](index=23&type=chunk) - The financial information is presented in Hong Kong dollars and all values are rounded to the nearest thousand unless otherwise indicated[23](index=23&type=chunk) [Changes in Accounting Policies and Disclosures](index=7&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Disclosures) The Group adopted several new and amended HKFRSs, which did not have a significant impact on its financial position or performance - The Group has applied amendments to HKAS 1 regarding the disclosure of accounting policies, which is expected to affect annual disclosures but not the interim financial information[18](index=18&type=chunk) - Amendments to HKAS 8 clarifying the distinction between changes in accounting estimates and policies have been applied prospectively without any impact on the financial position or performance[25](index=25&type=chunk) - Amendments to HKAS 12 regarding deferred tax related to a single transaction were applied from April 1, 2022, with no material impact[32](index=32&type=chunk) - Amendments to HKAS 12 concerning the Pillar Two model rules introduced a temporary exemption for deferred tax recognition, which has no impact as the Group is not within the scope of these rules[26](index=26&type=chunk) [Operating Segment Information](index=9&type=section&id=Operating%20Segment%20Information) The Group is organized into five reportable segments, with performance assessed based on adjusted profit/(loss) before tax - The Group has five reportable operating segments: Non-franchised bus, Limousine, Franchised bus and public light bus, Mainland China business, and "Others"[28](index=28&type=chunk)[33](index=33&type=chunk) - Management monitors the results of its operating segments separately for resource allocation and performance assessment, based on reportable segment profit/(loss)[33](index=33&type=chunk) Segment Performance for the six months ended Sep 30, 2023 | Segment | Segment Revenue (in thousands of HKD) | Segment Results (in thousands of HKD) | | :--- | :--- | :--- | | Non-franchised bus | 688,598 | 84,166 | | Limousine | 106,141 | (12,091) | | Franchised bus and public light bus | 98,141 | 14,935 | | Mainland China business | 81,160 | (8,122) | | Others | 684 | (1,342) | | Total | 947,899 | 77,546 | Segment Performance for the six months ended Sep 30, 2022 | Segment | Segment Revenue (in thousands of HKD) | Segment Results (in thousands of HKD) | | :--- | :--- | :--- | | Non-franchised bus | 589,806 | 49,251 | | Limousine | 42,338 | (19,248) | | Franchised bus and public light bus | 78,743 | (3,015) | | Mainland China business | 52,136 | (28,222) | | Others | 456 | (1,700) | | Total | 738,239 | (2,934) | [Revenue Analysis](index=11&type=section&id=Revenue%20Analysis) Total revenue for the period was HK$893,308 thousand, a 45.7% increase driven primarily by revenue from contracts with customers Revenue by Source | Revenue Source | Six months ended Sep 30, 2023 (in thousands of HKD) | Six months ended Sep 30, 2022 (in thousands of HKD) | | :--- | :--- | :--- | | Revenue from contracts with customers | 891,349 | 608,886 | | Gross rental income from operating leases of investment properties | 1,959 | 4,269 | | Total revenue | 893,308 | 613,155 | - For the six months ended September 30, 2023, **total revenue was HK$893,308 thousand**, an increase of 45.7% from HK$613,155 thousand in the prior-year period[38](index=38&type=chunk) - **Revenue from contracts with customers**, accounting for the vast majority of total revenue, grew by 46.4% to HK$891,349 thousand[38](index=38&type=chunk) [Profit/(Loss) Before Tax](index=11&type=section&id=Profit%2F%28Loss%29%20Before%20Tax) The Group achieved a profit before tax of HK$19,646 thousand, reversing a loss of HK$40,494 thousand from the prior year period Key Items Affecting Profit/(Loss) Before Tax | Indicator | Six months ended Sep 30, 2023 (in thousands of HKD) | Six months ended Sep 30, 2022 (in thousands of HKD) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 112,225 | 120,566 | | Depreciation of right-of-use assets | 17,031 | 13,791 | | Amortisation of other intangible assets | 6,294 | 7,067 | | Government grants | (19,608) | (107,190) | | Fair value gains on financial assets at FVTPL | (484) | (473) | | Fair value losses on investment properties | 5,968 | – | | Net impairment of trade receivables | 3,277 | 3,947 | | Loss/(gain) on disposal of items of property, plant and equipment, net | (583) | 103 | - For the six months ended September 30, 2023, the Group recorded a **profit before tax of HK$19,646 thousand**, compared to a loss of HK$40,494 thousand in the prior-year period[6](index=6&type=chunk) - Government grants decreased to HK$19,608 thousand from HK$107,190 thousand, while fair value gains on financial assets at FVTPL were HK$484 thousand (negative figures represent income/gains)[47](index=47&type=chunk)[59](index=59&type=chunk) [Income Tax](index=12&type=section&id=Income%20Tax) The Group's income tax expense for the period was HK$10,191 thousand, a decrease from HK$13,413 thousand in the prior year period Income Tax Expense Breakdown | Indicator | Six months ended Sep 30, 2023 (in thousands of HKD) | Six months ended Sep 30, 2022 (in thousands of HKD) | | :--- | :--- | :--- | | Current tax expense - Hong Kong | 9,979 | 23,232 | | Under/(over)provision in prior periods - Mainland China | 713 | (6,391) | | Deferred tax | (501) | (3,428) | | Total tax charge for the period | 10,191 | 13,413 | - Hong Kong profits tax is provided at a rate of 16.5% on the estimated assessable profits arising in Hong Kong during the period[48](index=48&type=chunk) - One subsidiary qualifies for the two-tiered profits tax rates regime, where the first HK$2,000,000 of assessable profits are taxed at 8.25% and the remainder at 16.5%[48](index=48&type=chunk) [Dividends](index=12&type=section&id=Dividends) The Board of Directors has recommended not to declare an interim dividend for the six months ended September 30, 2023 - The Board of Directors recommends that no interim dividend be paid for the six months ended September 30, 2023 (six months ended September 30, 2022: Nil)[41](index=41&type=chunk)[55](index=55&type=chunk) [Earnings/(Loss) Per Share](index=12&type=section&id=Earnings%2F%28Loss%29%20Per%20Share) The Group reported basic earnings per share of 1.16 HK cents, a significant improvement from a loss per share of 8.95 HK cents in the prior year period EPS Calculation | Indicator | Six months ended Sep 30, 2023 | Six months ended Sep 30, 2022 | | :--- | :--- | :--- | | Profit/(loss) attributable to ordinary equity holders of the parent | HK$5,514 thousand | (HK$42,681) thousand | | Weighted average number of ordinary shares in issue | 476,776,842 shares | 476,776,842 shares | | Basic earnings/(loss) per share | 1.16 HK cents | (8.95) HK cents | - Basic earnings per share is calculated based on the **profit attributable to ordinary equity holders of the parent of HK$5,514,000** (2022: loss of HK$42,681,000) and the weighted average number of 476,776,842 ordinary shares in issue[41](index=41&type=chunk) - No adjustment has been made to the basic earnings/(loss) per share amounts presented for the periods ended September 30, 2023 and 2022 as the impact of unexercised share options had no dilutive effect[49](index=49&type=chunk) [Trade Receivables](index=13&type=section&id=Trade%20Receivables) As of September 30, 2023, the Group's total trade receivables increased to HK$201,447 thousand, with the majority aged within 30 days Aging Analysis of Trade Receivables | Aging | As of Sep 30, 2023 (in thousands of HKD) | As of Mar 31, 2023 (in thousands of HKD) | | :--- | :--- | :--- | | Within 30 days | 130,389 | 81,111 | | 31 to 60 days | 33,704 | 61,030 | | 61 to 90 days | 18,414 | 3,302 | | Over 90 days | 18,940 | 16,394 | | Total | 201,447 | 161,837 | - The Group's trade receivables include amounts due from a joint venture of HK$1,648 thousand and associate companies of HK$10,256 thousand, which are repayable within 90 days[50](index=50&type=chunk) - The Group grants an average credit period of 30 to 90 days to its trade debtors and maintains strict control over outstanding receivables, with overdue balances reviewed regularly by senior management[61](index=61&type=chunk) [Trade Payables](index=14&type=section&id=Trade%20Payables) As of September 30, 2023, the Group's total trade payables increased to HK$63,069 thousand, with the majority aged within 30 days Aging Analysis of Trade Payables | Aging | As of Sep 30, 2023 (in thousands of HKD) | As of Mar 31, 2023 (in thousands of HKD) | | :--- | :--- | :--- | | Within 30 days | 32,409 | 28,030 | | 31 to 60 days | 7,363 | 6,919 | | 61 to 90 days | 1,079 | 1,683 | | Over 90 days | 22,218 | 20,191 | | Total | 63,069 | 56,823 | - Trade payables are non-interest-bearing and are normally settled on 60-day terms[53](index=53&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [Performance Review](index=15&type=section&id=Performance%20Review) The Group achieved a turnaround to profitability, driven by the recovery of cross-boundary transport services and strong performance in Mainland China's tourism sector - For the six months ended September 30, 2023, the Group achieved a **turnaround to an unaudited consolidated profit attributable to owners of the parent of approximately HK$5.5 million**, compared to a loss of approximately HK$42.7 million in the prior-year period[62](index=62&type=chunk) - The Group's **revenue increased by 45.7%** to approximately HK$893.3 million from approximately HK$613.2 million in the same period of 2022[62](index=62&type=chunk) - The turnaround was mainly attributable to the steady recovery of cross-boundary transport services, waiver of certain payables by suppliers, strong recovery of tourism in Mainland China, and effective cost control measures[62](index=62&type=chunk) - Positive impacts were partially offset by high international fuel prices, increased borrowing costs due to rising HIBOR, and higher labor and maintenance costs from inflationary pressures[63](index=63&type=chunk) [Business Segment Review](index=16&type=section&id=Business%20Segment%20Review) [Non-Franchised Bus Segment](index=16&type=section&id=Non-Franchised%20Bus%20Segment) The core non-franchised bus segment revenue grew by 29.7%, driven by the resumption of cross-boundary passenger transport services - Non-franchised bus services, including cross-boundary transport between Mainland China and Hong Kong and local transport, remain the Group's core business[80](index=80&type=chunk) - For the six months ended September 30, 2023, **revenue from non-franchised bus services was approximately HK$631.5 million**, a 29.7% increase from HK$486.8 million in the prior-year period[57](index=57&type=chunk) - The revenue increase was primarily due to the recovery in passenger volume following the resumption of cross-boundary transport services on January 8, 2023, after a three-year suspension[57](index=57&type=chunk) [Limousine Segment](index=16&type=section&id=Limousine%20Segment) The limousine service segment experienced a substantial 424.6% revenue increase due to the recovery of cross-boundary travel and a low prior-year base - The limousine segment provides transfer services for hotel guests, corporate clients, and leisure travelers between Mainland China, Hong Kong, and Macau[81](index=81&type=chunk) - For the six months ended September 30, 2023, **revenue from limousine services was approximately HK$91.8 million**, a 424.6% increase from HK$17.5 million in the prior-year period[58](index=58&type=chunk) - The revenue surge was mainly due to the recovery in passenger volume after the resumption of cross-boundary transport services and a low base in the comparative period of 2022[58](index=58&type=chunk) [Franchised Bus and Public Light Bus Segment](index=17&type=section&id=Franchised%20Bus%20and%20Public%20Light%20Bus%20Segment) This segment's revenue grew significantly, boosted by the resumption of cross-boundary routes and the implementation of new bus fares - The Group operates franchised bus services on Lantau Island and cross-boundary routes through NLB, and a green minibus route through Coronet Development Limited[82](index=82&type=chunk) - For the six months ended September 30, 2023, **NLB's fare revenue was approximately HK$93.0 million**, a 51.7% increase from HK$61.3 million in the prior-year period[68](index=68&type=chunk) - The revenue increase was mainly due to the recovery in passenger volume on cross-boundary routes since January 8, 2023, and the implementation of new fares from June 18, 2023[68](index=68&type=chunk) - Public light bus services resumed on January 29, 2023, generating fare revenue of approximately HK$0.5 million for the period[68](index=68&type=chunk) [Mainland China Business Segment](index=18&type=section&id=Mainland%20China%20Business%20Segment) The Mainland China business segment saw a 60.8% revenue increase, driven by a strong recovery in domestic tourism - For the six months ended September 30, 2023, **revenue from the Mainland China business was approximately HK$75.9 million**, a 60.8% increase from HK$47.2 million in the prior-year period, driven by a strong recovery in domestic tourism[83](index=83&type=chunk) - The Bipenggou scenic spot remains popular, benefiting from the post-pandemic trend towards health and wellness tourism[70](index=70&type=chunk) - The Chongqing Grand Hotel has completed renovations and is moving towards automation to enhance competitiveness and operational efficiency[71](index=71&type=chunk) - Hubei Shenzhou is exploring business transformation and has replaced its old diesel public buses with electric buses[73](index=73&type=chunk) - The agreement to dispose of the equity interest in Hubei Shenzhou was terminated, with a final court judgment in the Group's favor, and the Board believes this will not have a material adverse impact[74](index=74&type=chunk) [Future Outlook](index=20&type=section&id=Future%20Outlook) The Group anticipates performance improvement driven by economic recovery, but faces challenges from high interest rates, inflation, and a driver shortage - The full resumption of socio-economic activities in Hong Kong and the recovery of tourism in Mainland China are key drivers for improving the Group's performance[76](index=76&type=chunk) - The Group's financial performance remains susceptible to adverse external factors, including **persistently high borrowing rates, inflationary pressures, and the expanding railway network**[76](index=76&type=chunk) - A driver shortage has constrained operational capacity; the Group has applied for the Labour Importation Scheme for the Transport Sector, with imported labor expected to be in place in the first quarter of 2024[76](index=76&type=chunk) - The Group will continue to seize opportunities in the Greater Bay Area and enhance its cross-boundary transport services to drive future profit growth[76](index=76&type=chunk) [Liquidity and Financial Resources](index=20&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's total outstanding debt decreased, and its gearing ratio improved, with operations funded by internal cash flow and bank borrowings - The Group's operations are mainly financed by internally generated cash flow, supplemented by bank borrowings[77](index=77&type=chunk) Debt and Gearing Ratio | Indicator | As of Sep 30, 2023 (in thousands of HKD) | As of Mar 31, 2023 (in thousands of HKD) | | :--- | :--- | :--- | | Total outstanding debt | 1,608,200 | 1,745,200 | | Gearing ratio | 81.4% | 87.8% | - Debts primarily consist of term loans from banks in Hong Kong and Mainland China, used mainly for purchasing capital assets and related investments[77](index=77&type=chunk) [Financing, Treasury Policy, and Financial Risk Management](index=21&type=section&id=Financing%2C%20Treasury%20Policy%2C%20and%20Financial%20Risk%20Management) The Group maintains a prudent financing and treasury policy to minimize financial risks, funding major investments through internal cash flow and bank credit - The Group adopts a **prudent financing and treasury policy** to minimize its financial risks[78](index=78&type=chunk) - All future major investment projects or capital assets are funded by internal cash flow from operations, bank credit, or other available financing options in Hong Kong and/or Mainland China[78](index=78&type=chunk) - The Group closely monitors the exchange rate between the Hong Kong dollar and Renminbi and will formulate plans to hedge any significant foreign exchange risk when necessary[85](index=85&type=chunk) [Employee and Remuneration Policy](index=21&type=section&id=Employee%20and%20Remuneration%20Policy) The Group employed approximately 4,150 staff as of September 30, 2023, with a remuneration policy based on merit and market competitiveness - As of September 30, 2023, the Group employed approximately **4,150 employees** in Mainland China, Hong Kong, and Macau (March 31, 2023: 3,950 employees)[79](index=79&type=chunk) - The Group's policies on recruitment, employment, remuneration, and promotion are based on employees' qualifications, experience, expertise, performance, and contributions, with salaries offered at market levels[79](index=79&type=chunk) - Discretionary year-end bonuses and share options are granted to eligible employees based on Group performance and individual contributions, with continuous on-the-job training provided[79](index=79&type=chunk) [Other Information](index=21&type=section&id=Other%20Information) [Compliance with Corporate Governance Code and Model Code](index=21&type=section&id=Compliance%20with%20Corporate%20Governance%20Code%20and%20Model%20Code) The Company has complied with the Corporate Governance Code and the Model Code for Securities Transactions by Directors throughout the period - The Board considers that the Company has complied with the code provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules throughout the six months ended September 30, 2023[94](index=94&type=chunk) - The Company has adopted the Model Code for Securities Transactions by Directors as set out in Appendix 10 to the Listing Rules, and all Directors have complied with the required standard throughout the period[94](index=94&type=chunk) [Purchase, Sale, or Redemption of the Company's Listed Securities](index=22&type=section&id=Purchase%2C%20Sale%2C%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period - During the six months ended September 30, 2023, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[88](index=88&type=chunk) [Audit Committee](index=22&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's interim financial information - The Company's Audit Committee was established in compliance with Rule 3.21 of the Listing Rules to review and supervise the Group's financial reporting process and internal controls[89](index=89&type=chunk) - The Audit Committee comprises three independent non-executive directors[89](index=89&type=chunk) - The Group's interim condensed consolidated financial information has been reviewed by the Audit Committee[89](index=89&type=chunk) [Publication of Interim Results](index=22&type=section&id=Publication%20of%20Interim%20Results) This announcement is available on the websites of the HKEX and the Company, with the interim report to be dispatched to shareholders in due course - This announcement is published on the websites of the HKEX (www.hkexnews.hk) and the Company (www.kcbh.com.hk)[90](index=90&type=chunk) - The interim report for the six months ended September 30, 2023, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the respective websites in due course[90](index=90&type=chunk) [Acknowledgement](index=22&type=section&id=Acknowledgement) The Chairman expresses gratitude to the Group's business partners, shareholders, and dedicated employees for their support - On behalf of the Board, the Chairman extends sincere thanks to the Group's business partners, shareholders, and loyal and diligent employees[95](index=95&type=chunk) [Board Composition](index=22&type=section&id=Board%20Composition) As of the announcement date, the Board consists of three executive directors and three independent non-executive directors - As at the date of this announcement, the Board of Directors comprises Mr Wong Leung Pak, Mr Wong Cheuk On, and Mr Lo Man Po as executive directors, and Mr Chan Bing Woon, Mr Fong Man Bun, and Mr Chan Fong Kong as independent non-executive directors[96](index=96&type=chunk)

Share Option Scheme and Equity - The company adopted the 2012 Share Option Scheme on August 23, 2012, which expired on August 22, 2022, and no further options can be granted under this scheme[2]. - The total number of shares that may be issued upon the exercise of options granted under all share option schemes shall not exceed 10% of the total number of shares in issue as of the respective approval date of each scheme[5]. - The number of shares to be issued upon the exercise of options granted or to be granted to participants shall not exceed 1% of the issued shares in any 12-month period without shareholder approval[6]. - The company aims to retain and attract talented employees through its share option schemes[3]. - The company’s issued share capital remained unchanged at HKD 47,678 thousand for both 2022 and 2023[36]. Financial Performance - The company reported a loss for the year, with total comprehensive loss amounting to HKD 83,539 thousand in 2023 compared to a loss of HKD 138,935 thousand in 2022[36]. - The company reported a pre-tax loss of HKD 141,511 thousand for the year ended March 31, 2023, compared to a loss of HKD 138,819 thousand in the previous year[56]. - The group recorded a consolidated net loss of approximately HKD 137.9 million for the year ended March 31, 2023, compared to a net loss of approximately HKD 136 million in 2022[118]. - The loss attributable to equity holders of the parent decreased by 6.6% to approximately HKD 130.7 million from approximately HKD 139.9 million in the previous year[122]. - The annual loss for the year ended March 31, 2023, was HKD (137,879,000), compared to a loss of HKD (136,000,000) in the previous year[176]. Assets and Liabilities - Current liabilities increased to HKD 992,390 thousand in 2023 from HKD 875,388 thousand in 2022, representing a growth of 13.4%[35]. - Total non-current liabilities decreased to HKD 1,764,410 thousand in 2023 from HKD 2,050,235 thousand in 2022, a reduction of 13.9%[35]. - Total assets less current liabilities amounted to HKD 3,751,878 thousand in 2023, down from HKD 4,237,407 thousand in 2022, indicating a decline of 11.4%[35]. - The net assets of the company decreased to HKD 1,987,468 thousand in 2023 from HKD 2,187,172 thousand in 2022, reflecting a decrease of 9.1%[35]. - The equity attributable to owners of the parent company fell to HKD 1,911,824 thousand in 2023 from HKD 2,098,061 thousand in 2022, a decline of 8.9%[35]. - The total equity decreased from HKD 2,187,172 thousand in 2022 to HKD 1,987,468 thousand in 2023, a decrease of 9.1%[35]. - The company’s total liabilities increased, with financial expenses rising to HKD 98,906 thousand in 2023 from HKD 54,140 thousand in 2022, marking an increase of 82.5%[56]. - The group’s total outstanding debt as of March 31, 2023, was approximately HKD 1,745.2 million, down from HKD 1,934.2 million in the previous year, with a debt-to-equity ratio of approximately 87.8%[152]. Revenue and Operational Highlights - Revenue for the year was approximately HKD 1,311.3 million, an increase of 9.1% from approximately HKD 1,202.1 million in the previous year[122]. - Revenue from local transport services increased to approximately HKD 929 million, up 13.6% from approximately HKD 817.8 million in the previous year[124]. - Revenue from luxury car services was approximately HKD 66.1 million, an increase of 55.2% from HKD 42.6 million in the previous year, as tourist and business traveler numbers began to recover[144]. - Revenue from mainland China operations decreased by 44.3% to approximately HKD 116.8 million from HKD 209.7 million in the previous year, primarily due to repeated lockdowns and temporary closures of tourist attractions[145]. - Revenue from cross-border non-patented bus services was approximately HKD 57.9 million, a significant increase of 1,013.5% compared to the previous year's HKD 5.2 million, following the gradual resumption of operations since January 8, 2023[142]. Corporate Governance and Compliance - The company has adopted a board diversity policy, with a gender ratio of approximately 7:3 among employees as of March 31, 2023[195]. - The board of directors has established mechanisms to ensure independent opinions and recommendations are obtained[182]. - The company has adopted the standards of conduct for securities trading as outlined in Appendix 10 of the Listing Rules[199]. - The Compensation Committee reviews the company's compensation policies and structures annually, determining the annual compensation packages for executive directors and senior management[198]. - There were no known instances of employees failing to comply with written guidelines during the review year[200]. Strategic Focus and Future Outlook - The group aims to leverage opportunities from the Greater Bay Area's development to drive business growth, particularly with the completion of key cross-border infrastructure projects[152]. - Management maintains a prudent approach to business strategies, adjusting operations based on changing consumer demands and preferences in the post-pandemic environment[148]. - The group anticipates that the resumption of cross-border transport services will positively impact its core operations, despite facing challenges from global economic uncertainties and fluctuating oil prices[151]. - The group is confident in its future development due to the logistics and tourism sectors being two of Hong Kong's four pillar industries, supported by national policies like the Greater Bay Area and Belt and Road initiatives[109]. - The group is exploring the enhancement of bus station land use and actively seeking partners for new business opportunities[170].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對本公告之準確性或完整性亦不發表任何聲明，並明確表示概不就因本 公告全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任 何責任。 KWOON CHUNG BUS HOLDINGS LIMITED 冠 忠 巴 士 集 團 有 限 公 司 * （於百慕達註冊成立之有限公司） 306 （股份代號： ） 截 至 二 零 二 三 年 三 月 三 十 一 日 止 年 度 末 期 業 績 冠忠巴士集團有限公司（「本公司」）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」）截至二零二三年三月三十一日止年度之綜合業 績，連同去年之比較數字如下： 綜合損益表 截至三月三十一日止年度 二零二三年 二零二二年 附註 千港元 千港元 4 1,311,312 1,202,051 收入 (1,233,142) (1,141,338) 提供服務之成本 78,170 60,713 ...

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].