Summary [Summary](index=1&type=section&id=Summary) The company reported a slight revenue decrease in FY2025, but achieved growth in gross profit and profit after tax, alongside a proposed increase in final dividend | Metric | FY2025 (Million HKD) | FY2024 (Million HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 3,996.6 | 4,037.8 | -1.0% | | Gross Profit | 653.3 | 631.1 | 3.5% | | Adjusted EBITDA | 332.2 | 333.9 | -0.5% | | Profit After Tax | 90.3 | 83.9 | 7.6% | | Proposed Final Dividend | 0.054 HKD | 0.050 HKD | 8.0% | Management Discussion and Analysis [Market Overview](index=2&type=section&id=Market%20Overview) The complex macroeconomic environment in FY2025, marked by geopolitical tensions, inflation, and high interest rates, led to a downward revision of global growth forecasts and a slowdown in new housing activity, posing challenges to the company's business [Geopolitical and Trade Developments](index=3&type=section&id=Geopolitical%20and%20Trade%20Developments) The re-election of the Trump administration intensifies global trade uncertainty and tariff measures, while ongoing conflicts further dampen business confidence, necessitating supply chain resilience reassessments - The re-election of the US Trump administration exacerbates global policy uncertainty, particularly in trade and tariffs, leading to market volatility and supply chain disruptions[5](index=5&type=chunk) - Ongoing geopolitical tensions, such as the Russia-Ukraine war and the Israel-Hamas conflict, further undermine business confidence and hinder global economic recovery[5](index=5&type=chunk) [Economic Growth and Monetary Policy Outlook](index=3&type=section&id=Economic%20Growth%20and%20Monetary%20Policy%20Outlook) The IMF lowered global GDP growth forecasts, with the US, Eurozone, and UK also seeing reductions, while the Federal Reserve maintained interest rates amid concerns that tariffs could fuel inflation - The International Monetary Fund (IMF) revised its global GDP growth forecast downwards from **3.3% to 2.8%**[6](index=6&type=chunk) - The US 2025 growth forecast was lowered to **1.8%**, with the Eurozone and UK forecasts reduced to **0.8%** and **1.1%** respectively[6](index=6&type=chunk) - The Federal Reserve maintained interest rates at **4.5%** in March 2025, expressing concerns that tariff measures could lead to increased inflation[6](index=6&type=chunk) [Slowdown in New Housing Activity](index=4&type=section&id=Slowdown%20in%20New%20Housing%20Activity) US tariffs are expected to increase costs, leading to a slight decrease in new housing starts in 2025 compared to 2024, while the UK and EU also anticipate declines due to economic weakness and high construction costs - US tariff measures are expected to increase costs, negatively impacting new housing activity, with 2025 new housing starts projected at **1.35 million units**, slightly below 2024's **1.364 million units**[8](index=8&type=chunk) - The number of new housing starts in the UK decreased by **7%** for the full year 2024[8](index=8&type=chunk) - New residential units in the EU are projected to decline by **5.5%** to **1.5 million units** in 2025, primarily due to sluggish economic growth, reduced public investment, and high construction costs[8](index=8&type=chunk) [Business and Financial Review](index=4&type=section&id=Business%20and%20Financial%20Review) Despite a challenging macroeconomic environment, the company demonstrated resilient financial performance in FY2025 with a slight revenue dip, but growth in gross profit and profit after tax, maintaining a strong balance sheet - FY2025 revenue was **3,996.6 million HKD**, a slight decrease of **1.0%** compared to FY2024, mainly attributed to a persistent market downturn and backlog shipments in the Control Solutions segment[9](index=9&type=chunk) - Revenue in the second half of FY2025 saw strong growth of **20.6%** to **2,185.3 million HKD**, primarily driven by the appliance business within the Control Solutions segment[9](index=9&type=chunk) - Gross profit increased by **3.5%** year-on-year to **653.3 million HKD**, with the gross profit margin improving from **15.6% to 16.3%**, benefiting from stringent operating expense control and improved margins in the Brand Business segment[10](index=10&type=chunk) - Profit after tax increased by **7.6%** from **83.9 million HKD to 90.3 million HKD**[10](index=10&type=chunk) - Adjusted EBITDA was **332.2 million HKD**, slightly lower than the previous year, but the adjusted EBITDA margin remained robust at **8.3%**[10](index=10&type=chunk) - Cash and bank balances remained strong at **214.2 million HKD** (FY2024: **226.7 million HKD**), with net cash at **95.9 million HKD** (FY2024: **90.3 million HKD**)[11](index=11&type=chunk) - Inventory levels decreased to **756.0 million HKD** (FY2024: **824.0 million HKD**), trade receivables increased to **770.9 million HKD** (FY2024: **509.4 million HKD**), and trade payables and bills payable increased to **950.8 million HKD** (FY2024: **745.3 million HKD**), primarily driven by strong sales momentum in the second half[12](index=12&type=chunk) - The gearing ratio improved from **9.9%** a year ago to **8.4%**, mainly due to reduced bank borrowings, further strengthening the financial position[13](index=13&type=chunk) [Group Operations Review](index=6&type=section&id=Group%20Operations%20Review) The Group operates through Control Solutions and Brand Business segments, with Control Solutions seeing a slight revenue decrease but steady growth in specific sub-segments, while Brand Business, affected by the weak US market, rebounded in H2 with new smart home solutions [Control Solutions](index=6&type=section&id=Control%20Solutions) The Control Solutions segment recorded a slight 1.0% revenue decrease to **3,565.8 million HKD** in FY2025, primarily due to HVAC industry weakness, but saw robust growth in appliance, water & air products, and tools, with future expansion planned through new geographical markets - The Control Solutions segment's revenue in FY2025 reached **3,565.8 million HKD**, a slight decrease of **1.0%** compared to the previous fiscal year[14](index=14&type=chunk) - The slight revenue decline was primarily attributed to the weak performance of the HVAC industry, but the appliance, water & air products, and tools sub-segments achieved steady growth[14](index=14&type=chunk) - Looking ahead, this segment is poised for recovery and expansion through new business opportunities in target geographical markets[14](index=14&type=chunk) [Brand Business](index=6&type=section&id=Brand%20Business) The Brand Business segment's revenue slightly declined by 1.4% to **430.8 million HKD** in FY2025, mainly due to a weak US market, but experienced strong growth in H2 driven by new smart home solutions and regaining market share in Eastern Europe - The Brand Business segment recorded revenue of **430.8 million HKD** in FY2025, a slight decrease of **1.4%** compared to FY2024[15](index=15&type=chunk) - The revenue contraction was primarily due to the weak market environment in the US[15](index=15&type=chunk) - Salus experienced strong growth in the second half of FY2025, benefiting from the successful launch of new smart home solutions and regaining market share in Eastern Europe[15](index=15&type=chunk) [Our Approach: Global Localization within the Five-Year Plan](index=7&type=section&id=Our%20Approach%3A%20Global%20Localization%20within%20the%20Five-Year%20Plan) The company is deepening its global localization strategy, leveraging Hong Kong as a central hub to support local operations, integrating global resources with local demands to navigate market volatility and achieve future growth - The Group is deepening its global localization strategy, emphasizing centralized management from Hong Kong to support local operations, combining "globalization" with "localization" to meet specific regional needs[16](index=16&type=chunk) - This strategy, implemented before market turbulence, serves as a guiding framework for sustainable development, enhancing crisis management capabilities and ensuring structural resilience[16](index=16&type=chunk) [Strategies under Global Localization](index=7&type=section&id=Strategies%20under%20Global%20Localization) The Group adopts a region-to-region operating model with local business development teams to understand client needs and secure new business, while Hong Kong serves as a central hub for strategic support, optimizing resource allocation and market coverage - Adopting a region-to-region operating model, relying on dedicated local business development teams in each market for customer communication, production coordination, and frontline sales leadership[17](index=17&type=chunk) - Hong Kong serves as a central hub, providing strategic support and direction to regional offices to optimize resource allocation and ensure market coverage[17](index=17&type=chunk) [Corporate Focus](index=8&type=section&id=Corporate%20Focus) The company strengthens its leadership in smart and sustainable living by focusing on high-growth green and smart home markets, developing AI-driven energy and water management platforms, leveraging 1-to-N technology for scalable solutions, implementing a 'New Global Landscape' strategy, and enhancing efficiency through operational transformation - Focusing on high-growth potential green and smart home markets, developing AI-driven advanced energy and water resource management platforms, with all new products complying with MATTER standards[19](index=19&type=chunk) - Leveraging over **500** engineers and **200** patents to develop energy-saving products with quantifiable benefits using 1-to-N technology[20](index=20&type=chunk) - Implementing a "New Global Landscape" strategy to refine corporate culture, talent development models, and reporting structures, establishing integrated business development, engineering, and manufacturing capabilities across North America, the EU, Southeast Asia, and China[21](index=21&type=chunk) [Operational Transformation](index=9&type=section&id=Operational%20Transformation) The Group is implementing a region-to-region model and hub-and-spoke infrastructure to enhance market proximity and responsiveness, improving operational efficiency and decision-making flexibility through P&L accountability, empowered business structures, and comprehensive process re-engineering including SAP implementation - Implementing a region-to-region model and hub-and-spoke infrastructure to enhance responsiveness and efficiency[22](index=22&type=chunk) - Establishing profit and loss accountability for all business units and creating an empowered business structure to improve accountability and decision-making flexibility[22](index=22&type=chunk) - Enhancing operational efficiency through comprehensive process re-engineering and implementing the SAP system across all areas[22](index=22&type=chunk) [Sustainable Management](index=9&type=section&id=Sustainable%20Management) The company integrates ESG considerations into its operations and culture, achieving significant progress in FY2025 with multiple environmental certifications, exceeding carbon emission reduction targets, and committing to net-zero emissions by 2050 - Obtained **3** WWF Low-Carbon Manufacturing Programme (LCMP) Gold Labels, affirming continuous carbon reduction effectiveness in production facilities[24](index=24&type=chunk) - The Hong Kong office received the WWF Low-Carbon Office Programme (LOOP+) Label – Level 3, and the Malaysia office received the Penang Green Office Label[24](index=24&type=chunk) - Achieved a Bronze medal in the EcoVadis ESG rating, with its percentile ranking significantly improving from **53rd to 78th**[24](index=24&type=chunk) - Exceeded the five-year target for Scope 1 and Scope 2 greenhouse gas emissions, achieving a significant **38.3%** reduction compared to the 2020 baseline[25](index=25&type=chunk) - Outlined an ESG roadmap for achieving net-zero emissions by 2050 and formally committed to this goal[25](index=25&type=chunk) Outlook [Market Opportunities](index=10&type=section&id=Market%20Opportunities) Despite short-term pressures, the company is optimistic about long-term growth opportunities, anticipating an HVAC market rebound, actively expanding into Asian and European markets (especially China), and continuously investing in advanced technologies and product portfolios to meet energy efficiency and smart control demands - The HVAC market is expected to rebound, providing an important channel for the expansion of the Brand Business segment[27](index=27&type=chunk) - The Control Solutions segment is actively expanding into key regional markets in Asia and Europe, particularly China, to diversify revenue sources[27](index=27&type=chunk) - Continuous investment in advanced technologies and expansion of the product portfolio are aimed at meeting the growing global demand for energy efficiency, smart control systems, and environmental monitoring[28](index=28&type=chunk) [Southeast Asia Expansion](index=11&type=section&id=Southeast%20Asia%20Expansion) As part of its globalization strategy, the company established an operational hub in Singapore to integrate business, engineering, customer support, and operations, leveraging Singapore's strategic advantages and regional connectivity to deepen its regional presence and capitalize on the healthcare sector's growth potential - Established an operational hub in Singapore to drive long-term growth, which has been approved under the Singapore Economic Development Board's Global Headquarters Programme[29](index=29&type=chunk) - The Singapore hub aims to integrate business, engineering, customer support, and operational functions to provide tailored end-to-end solutions[29](index=29&type=chunk) - The company is optimistic about the strong growth potential in the region's medical and healthcare sector, which aligns closely with its core capabilities and strategic direction[29](index=29&type=chunk) [Operational Optimization and Strategic Investment](index=11&type=section&id=Operational%20Optimization%20and%20Strategic%20Investment) Facing a dynamic business environment, the company is committed to a rigorous and flexible operating model, prioritizing financial prudence, strictly managing operating expenses, and precisely allocating capital expenditure to new product development, production plans, facility upgrades, and talent development, while increasing R&D investment to maintain competitive advantage - Committed to implementing a rigorous and flexible operating model, with a focus on financial prudence, strictly managing operating expenses to ensure financial stability[30](index=30&type=chunk) - Strategic investments will be precisely targeted, with capital expenditure prudently allocated to areas such as new product development, production plans, facility upgrades, and talent development[30](index=30&type=chunk) - Increased investment in R&D and continuous streamlining of operations will enhance overall efficiency across the value chain to address external challenges[31](index=31&type=chunk) [Conclusion](index=12&type=section&id=Conclusion) Navigating a continuously challenging global business environment, the company will advance steadily through strategic focus, operational flexibility, and adaptability, committed to creating lasting value for customers, partners, and shareholders through continuous innovation and global expansion - The global business environment will remain challenging, but climate change and global emphasis on sustainable development will create new avenues for innovation and growth[32](index=32&type=chunk) - The company will leverage strategic focus, operational flexibility, and adaptability to continuously improve its business model and operations, maintaining competitiveness and a customer-centric approach[32](index=32&type=chunk) - Emphasis on continuous innovation and global expansion is aimed at creating lasting value for customers, partners, and shareholders[32](index=32&type=chunk) Liquidity, Financial Resources and Capital Structure [Liquidity, Financial Resources and Capital Structure](index=13&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) | Metric | March 31, 2025 (Thousand HKD) | March 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Total Cash and Bank Deposits | 214,188 | 226,699 | | Of which: Cash and Bank Balances | 195,820 | 210,824 | | Of which: Restricted Deposits | 18,368 | 15,875 | | RMB-denominated Balances | 50,844 | 53,263 | - The current ratio remained robust at **1.4 times** (FY2024: **1.5 times**)[33](index=33&type=chunk) Interest-Bearing Bank Borrowings | Metric | March 31, 2025 (Thousand HKD) | March 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Total Interest-Bearing Bank Borrowings | 118,249 | 136,445 | - Total equity attributable to owners of the company was **1,401,268 thousand HKD** (FY2024: **1,380,738 thousand HKD**)[34](index=34&type=chunk) - Net cash (total cash and bank balances less total interest-bearing bank borrowings) was **95,939 thousand HKD** (FY2024: **90,254 thousand HKD**)[34](index=34&type=chunk) [Treasury Policy](index=13&type=section&id=Treasury%20Policy) The Group primarily faces foreign exchange risks denominated in USD, RMB, EUR, and GBP, which are closely monitored with proactive and prudent measures taken to mitigate these risks - The Group's foreign exchange risk primarily arises from transactions denominated in currencies other than the functional currency of the respective operations, mainly USD, RMB, EUR, and GBP[35](index=35&type=chunk) - The Group closely monitors its overall foreign exchange risk and adopts proactive yet prudent measures to minimize such risks[35](index=35&type=chunk) [Capital Expenditure and Commitments](index=14&type=section&id=Capital%20Expenditure%20and%20Commitments) Total capital expenditure for the year was approximately **124.68 million HKD**, primarily for leasehold land, property, plant & equipment, software, and new product development, with contracted but unprovided capital commitments of **12.211 million HKD** as of March 31, 2025 - Total capital expenditure for the year was approximately **124,680 thousand HKD** (FY2024: **160,320 thousand HKD**), used for the acquisition of leasehold land, property, plant & equipment, software, and deferred expenses for new product development[36](index=36&type=chunk) - As of March 31, 2025, contracted but unprovided capital commitments, primarily for the acquisition of property, plant & equipment, amounted to **12,211 thousand HKD** (FY2024: **8,102 thousand HKD**)[36](index=36&type=chunk) [Contingent Liabilities](index=14&type=section&id=Contingent%20Liabilities) As of March 31, 2025, the Group had no significant contingent liabilities - As of March 31, 2025, the Group had no significant contingent liabilities (FY2024: Nil)[37](index=37&type=chunk) [Pledged Assets](index=14&type=section&id=Pledged%20Assets) The Group pledged **18.4 million HKD** in short-term deposits to banks, required to be maintained for the duration of certain bills payable - The Group pledged short-term deposits of **18.4 million HKD** (FY2024: **15.9 million HKD**) to banks, which must be maintained in the respective banks for the duration of certain bills payable[38](index=38&type=chunk) [Employee Information](index=14&type=section&id=Employee%20Information) As of March 31, 2025, the Group employed **4,007** individuals with total staff costs of **661.386 million HKD**, offering comprehensive benefits including year-end bonuses, medical insurance, and training Employee Data | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Total Employees | 4,007 | 4,005 | | Total Staff Costs | 661,386 Thousand HKD | 652,372 Thousand HKD | - The Group generally reviews salaries and wages annually based on individual qualifications, performance, Group results, and market conditions[39](index=39&type=chunk) - The Group provides employees with year-end double pay, discretionary bonuses, medical insurance, provident funds, education subsidies, and training[39](index=39&type=chunk) Share Schemes [2023 Share Award Scheme](index=15&type=section&id=2023%20Share%20Award%20Scheme) The 2023 Share Award Scheme, effective for ten years, aims to recognize and incentivize eligible participants, with total shares awarded not exceeding 10% of issued shares; in FY2025, **17.6 million** awards were granted, **1.6 million** vested, **1.2 million** lapsed, and **20.8 million** remain unvested - The 2023 Share Award Scheme, adopted on September 7, 2023, aims to recognize and reward contributions of eligible participants to the Group's growth and development, and to attract suitable talent[40](index=40&type=chunk) - The scheme is valid for a period of ten years from September 7, 2023, and is administered by the Board or its delegates and the trustee[40](index=40&type=chunk) - The total number of shares to be awarded under the scheme shall not exceed **10%** of the company's total issued shares on the date of adoption (i.e., **84,254,000** shares)[40](index=40&type=chunk) - On April 26, 2024 (the first grant date), **8,300,000** awards were granted to Mr. Ouyang Bok-kan and Mr. Wong Wah-shun, with a total fair value of approximately **3,071,000 HKD**[41](index=41&type=chunk)[42](index=42&type=chunk) - On March 20, 2025 (the second grant date), **9,300,000** awards were granted to eleven employee participants, with a total fair value of approximately **3,813,000 HKD**[41](index=41&type=chunk)[42](index=42&type=chunk) 2025 Share Award Scheme Movements | Status | Number of Shares | | :--- | :--- | | Granted during the year | 17,600,000 | | Vested | 1,600,000 | | Lapsed | 1,200,000 | | Unvested (end of period) | 20,800,000 | | Available for grant under scheme limit (end of period) | 61,854,000 | - Award vesting is subject to the achievement of certain performance targets and other requirements, including financial objectives (e.g., Group's annual net profit after tax) and management objectives (e.g., stakeholder engagement, productivity, customer satisfaction)[43](index=43&type=chunk) [2023 Share Option Scheme](index=18&type=section&id=2023%20Share%20Option%20Scheme) The 2023 Share Option Scheme rewards contributors and enhances company value, with no options granted, exercised, or cancelled during the year, leaving **61.854 million** options available under the authorized limit, representing approximately **7.34%** of issued share capital - The 2023 Share Option Scheme was adopted at the 2023 Annual General Meeting, aiming to reward individuals who have contributed to the Group and to encourage the enhancement of the value of the company and its shares[45](index=45&type=chunk) - During the current year, no share options were granted, exercised, or cancelled under the 2023 Share Option Scheme[45](index=45&type=chunk) - The number of share options available for grant under the scheme's authorized limit at the end of the current year was **61,854,000**, representing approximately **7.34%** of the company's issued share capital[45](index=45&type=chunk) Consolidated Statement of Profit or Loss [Consolidated Statement of Profit or Loss](index=19&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) The consolidated statement details the Group's financial performance, showing revenue, cost of sales, gross profit, and profit for the year, along with basic earnings per share Consolidated Statement of Profit or Loss Summary | Metric | FY2025 (Thousand HKD) | FY2024 (Thousand HKD) | | :--- | :--- | :--- | | Revenue | 3,996,600 | 4,037,818 | | Cost of Sales | (3,343,337) | (3,406,739) | | Gross Profit | 653,263 | 631,079 | | Other Income | 8,825 | 14,499 | | Selling and Distribution Expenses | (110,525) | (106,631) | | Administrative Expenses | (400,303) | (377,892) | | Profit Before Tax | 112,881 | 107,580 | | Income Tax Expense | (22,576) | (23,668) | | Profit for the Year | 90,305 | 83,912 | | Basic Earnings Per Share Attributable to Owners of the Company | 11.12 HK cents | 10.10 HK cents | Consolidated Statement of Comprehensive Income [Consolidated Statement of Comprehensive Income](index=20&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) This statement presents the Group's profit for the year and other comprehensive income items, including exchange differences on translation of overseas operations, culminating in total comprehensive income Consolidated Statement of Comprehensive Income Summary | Metric | FY2025 (Thousand HKD) | FY2024 (Thousand HKD) | | :--- | :--- | :--- | | Profit for the Year | 90,305 | 83,912 | | Exchange Differences on Translation of Overseas Operations | (31,733) | (1,659) | | Total Comprehensive Income for the Year | 58,572 | 82,253 | | Attributable to Owners of the Company | 60,907 | 83,129 | Consolidated Statement of Financial Position [Consolidated Statement of Financial Position](index=21&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) The consolidated statement provides a snapshot of the Group's assets, liabilities, and equity as of the reporting date, distinguishing between non-current and current classifications Consolidated Statement of Financial Position Summary | Metric | March 31, 2025 (Thousand HKD) | March 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | **Non-Current Assets** | | | | Property, Plant and Equipment | 318,056 | 342,066 | | Intangible Assets | 322,847 | 302,615 | | Total Non-Current Assets | 926,133 | 953,419 | | **Current Assets** | | | | Inventories | 756,044 | 823,976 | | Trade Receivables | 770,881 | 509,376 | | Cash and Bank Deposits | 214,188 | 226,699 | | Total Current Assets | 1,882,654 | 1,667,509 | | **Current Liabilities** | | | | Trade Payables and Bills Payable | 950,807 | 745,346 | | Interest-Bearing Bank Borrowings | 118,249 | 136,445 | | Total Current Liabilities | 1,336,358 | 1,136,117 | | **Non-Current Liabilities** | | | | Total Non-Current Liabilities | 69,797 | 100,374 | | **Equity** | | | | Equity Attributable to Owners of the Company | 1,401,268 | 1,380,738 | | Total Equity | 1,402,632 | 1,384,437 | Notes [Company and Group Information](index=23&type=section&id=Company%20and%20Group%20Information) The company, incorporated in the Cayman Islands, primarily engages in R&D, manufacturing, sales, and brand management of electronic control devices, focusing on smart and sustainable living - The company was incorporated as an exempted company under the Companies Act of the Cayman Islands on June 23, 2006[50](index=50&type=chunk) - The Group is principally engaged in the research and development, manufacturing, sales, and brand management of electronic control device products, focusing on smart and sustainable living[51](index=51&type=chunk) [Basis of Preparation](index=23&type=section&id=Basis%20of%20Preparation) The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, presented under the historical cost convention, with certain financial assets measured at fair value, and are denominated in HKD, covering the company and its subsidiaries with consistent accounting policies - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, presented under the historical cost convention, except for certain financial assets measured at fair value[52](index=52&type=chunk) - The consolidated financial statements include the financial statements of the company and its subsidiaries for the year ended March 31, 2025, and are prepared using consistent accounting policies[53](index=53&type=chunk)[54](index=54&type=chunk) [Changes in Accounting Policies and Disclosures](index=24&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Disclosures) This year saw the initial adoption of revised Hong Kong Financial Reporting Standards, including those for lease liabilities in sale and leaseback, classification of liabilities, non-current liabilities with covenants, and supplier finance arrangements, none of which had a material impact on the Group's financial position or performance due to the absence of relevant transactions - The financial statements for the current year saw the initial adoption of revised Hong Kong Financial Reporting Standards, including HKFRS 16 (Amendments), HKAS 1 (Amendments), and HKAS 7 and HKFRS 7 (Amendments)[55](index=55&type=chunk)[56](index=56&type=chunk) - The amendments had no impact on the Group's financial position or performance, as the Group had no relevant sale and leaseback transactions, liability classifications remained unchanged, and there were no supplier finance arrangements[58](index=58&type=chunk)[59](index=59&type=chunk) [Operating Segment Information](index=26&type=section&id=Operating%20Segment%20Information) The Group operates through two main segments, Control Solutions and Brand Business, with management monitoring their performance separately for resource allocation and assessment, and inter-segment revenues and transfers conducted at market prices - The Group operates through two main segments: Control Solutions and Brand Business, with management separately monitoring their performance to make decisions regarding resource allocation and performance assessment[60](index=60&type=chunk) Operating Segment Performance Summary | Metric | Control Solutions (Thousand HKD) | Brand Business (Thousand HKD) | Total (Thousand HKD) | | :--- | :--- | :--- | :--- | | 2025 Segment Revenue | 3,565,761 | 430,839 | 3,996,600 | | 2024 Segment Revenue | 3,600,983 | 436,835 | 4,037,818 | | 2025 Segment Results | 295,143 | 783 | 295,926 | | 2024 Segment Results | 314,476 | (29,544) | 284,932 | [Geographical Information](index=28&type=section&id=Geographical%20Information) The Group's revenue primarily originates from Asia, Europe, and the Americas, with Asia being the largest contributor, and non-current assets predominantly located in Asia Revenue by Geographical Region | Region | FY2025 (Thousand HKD) | FY2024 (Thousand HKD) | | :--- | :--- | :--- | | Americas | 813,219 | 1,077,248 | | Europe | 1,558,216 | 1,408,846 | | Asia | 1,612,526 | 1,543,826 | | Oceania | 12,639 | 7,898 | | **Total** | **3,996,600** | **4,037,818** | Non-Current Assets by Geographical Region (excluding goodwill, etc.) | Region | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Americas | 38,659 | 37,478 | | Europe | 30,539 | 8,026 | | Asia | 378,909 | 458,643 | | **Total** | **448,107** | **504,147** | [Major Customer Information](index=28&type=section&id=Major%20Customer%20Information) For the year ended March 31, 2025, **24.5%** and **21.8%** of the Group's total revenue were derived from sales to two major customers within the Control Solutions segment - For the year ended March 31, 2025, approximately **979,456 thousand HKD** (representing **24.5%** of total revenue) and **871,637 thousand HKD** (representing **21.8%** of total revenue) were derived from sales to two major customers within the Control Solutions segment[65](index=65&type=chunk) [Revenue and Other Income](index=29&type=section&id=Revenue%20and%20Other%20Income) Group revenue primarily stems from customer contracts, with sales of electronic control devices being the main performance obligation, while other income includes bank interest, government grants, and miscellaneous income, predominantly from Hong Kong and mainland China - Revenue primarily consists of income from contracts with customers, totaling **3,996,600 thousand HKD** in FY2025[66](index=66&type=chunk) - Performance obligations are satisfied upon delivery of goods, with payments typically due within **30 to 150 days** after delivery[67](index=67&type=chunk) Other Income Analysis | Item | FY2025 (Thousand HKD) | FY2024 (Thousand HKD) | | :--- | :--- | :--- | | Bank Interest Income | 2,021 | 2,060 | | Government Grants | 5,351 | 9,467 | | Miscellaneous Income | 1,453 | 2,972 | | **Total** | **8,825** | **14,499** | - Government grants are primarily awarded by government authorities in Hong Kong and mainland China, including enterprise employment stabilization unemployment insurance refunds and industry development subsidies[68](index=68&type=chunk) [Finance Costs](index=30&type=section&id=Finance%20Costs) The Group's finance costs primarily comprise interest on bank loans and lease liabilities Finance Costs Analysis | Item | FY2025 (Thousand HKD) | FY2024 (Thousand HKD) | | :--- | :--- | :--- | | Interest on Bank Loans | 54,252 | 61,428 | | Interest on Lease Liabilities | 4,281 | 4,249 | | **Total** | **58,533** | **65,677** | [Profit Before Tax](index=31&type=section&id=Profit%20Before%20Tax) The Group's profit before tax is calculated after deducting items such as cost of inventories sold, depreciation, amortization, R&D costs, impairment of trade receivables, and inventory write-downs Profit Before Tax Deductions/Additions | Item | FY2025 (Thousand HKD) | FY2024 (Thousand HKD) | | :--- | :--- | :--- | | Cost of Inventories Sold | 3,318,426 | 3,395,023 | | Depreciation of Property, Plant and Equipment | 67,770 | 70,263 | | Depreciation of Right-of-Use Assets | 47,425 | 49,752 | | Amortization of Intangible Assets | 4,895 | 2,957 | | Research and Development Costs (Amortization of deferred expenses + current year expenses) | 57,630 | 61,823 | | Net Foreign Exchange Differences | (14,224) | (5,549) | | Net Impairment Loss on Trade Receivables | 73 | 3,249 | | Write-down of Inventories to Net Realizable Value | 24,911 | 11,716 | | Fair Value Loss/(Gain) on Financial Assets at Fair Value Through Profit or Loss | 1,581 | (7,045) | [Income Tax Expense](index=32&type=section&id=Income%20Tax%20Expense) Hong Kong profits tax is provisioned at 16.5% (or two-tiered 8.25%), with other regions taxed at applicable local rates, resulting in a total tax expense of **22.576 million HKD** for the year - Hong Kong profits tax is provisioned at **16.5%** (or a two-tiered rate of **8.25%**), while other regions are taxed at the applicable rates in the jurisdictions where the Group entities operate[71](index=71&type=chunk) Income Tax Expense Analysis | Item | FY2025 (Thousand HKD) | FY2024 (Thousand HKD) | | :--- | :--- | :--- | | Current - Hong Kong | 19,159 | 12,393 | | Current - Mainland China and Other Countries | 13,584 | 7,043 | | Deferred | (10,167) | 4,232 | | **Total Tax Expense** | **22,576** | **23,668** | [Dividends](index=32&type=section&id=Dividends) The Group paid a final dividend of **0.050 HKD** per share for FY2024 and proposes a final dividend of **0.054 HKD** per share for FY2025, subject to shareholder approval Dividends Paid | Item | FY2025 (Thousand HKD) | FY2024 (Thousand HKD) | | :--- | :--- | :--- | | 2024 Final Dividend (0.050 HKD per share) | 42,127 | 17,693 | | Less: Dividends on Ordinary Shares Held by Share Award Scheme | (431) | – | | **Total** | **41,696** | **17,693** | Proposed Final Dividend | Item | FY2025 (Thousand HKD) | FY2024 (Thousand HKD) | | :--- | :--- | :--- | | Final Dividend (0.054 HKD per share) | 45,497 | 42,127 | - The proposed final dividend for the year ended March 31, 2025, is subject to approval by the company's shareholders at the upcoming Annual General Meeting[73](index=73&type=chunk) [Earnings Per Share Attributable to Owners of the Company](index=33&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Both basic and diluted earnings per share are calculated based on profit attributable to owners of the company and the weighted average number of ordinary shares outstanding, with diluted EPS accounting for the potential impact of share awards Earnings Per Share Data | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | Profit for the Year Attributable to Owners of the Company | 92,602 Thousand HKD | 84,772 Thousand HKD | | Basic Earnings Per Share | 11.12 HK cents | 10.10 HK cents | | Diluted Earnings Per Share | 11.03 HK cents | 10.08 HK cents | Weighted Average Number of Ordinary Shares for EPS Calculation | Item | FY2025 | FY2024 | | :--- | :--- | :--- | | Weighted Average Number of Ordinary Shares for Basic EPS | 832,659,000 | 839,589,000 | | Dilutive Effect of Share Awards | 7,213,000 | 1,103,000 | | Weighted Average Number of Ordinary Shares for Diluted EPS | 839,872,000 | 840,692,000 | [Trade Receivables](index=33&type=section&id=Trade%20Receivables) The Group primarily trades with customers on credit, typically with terms of one to five months; as of March 31, 2025, total trade receivables increased to **770.881 million HKD**, driven by strong sales in the second half - Total trade receivables amounted to **770,881 thousand HKD** (2024: **509,376 thousand HKD**), primarily from trade terms with customers on credit, typically ranging from one to five months[74](index=74&type=chunk) Trade Receivables Ageing Analysis (by Invoice Date) | Ageing | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Within one month | 516,683 | 249,472 | | One to two months | 134,330 | 136,841 | | Two to three months | 63,090 | 67,214 | | Over three months | 56,778 | 55,849 | | **Total** | **770,881** | **509,376** | Trade Receivables Ageing Analysis (by Due Date) | Ageing | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Current and within one month | 741,089 | 459,258 | | One to two months | 5,452 | 27,897 | | Two to three months | 2,907 | 7,125 | | Over three months | 21,433 | 15,096 | | **Total** | **770,881** | **509,376** | [Trade Payables and Bills Payable](index=35&type=section&id=Trade%20Payables%20and%20Bills%20Payable) As of March 31, 2025, total trade payables and bills payable increased to **950.807 million HKD**, primarily due to strong sales momentum in the second half of FY2025, with payment terms generally ranging from one to six months - Total trade payables and bills payable amounted to **950,807 thousand HKD** (2024: **745,346 thousand HKD**), an increase from the previous year, primarily driven by the Group's strong sales momentum in the second half of FY2025[12](index=12&type=chunk)[76](index=76&type=chunk) Trade Payables and Bills Payable Ageing Analysis (by Invoice Date) | Ageing | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Within one month | 291,727 | 300,741 | | One to two months | 339,840 | 245,388 | | Two to three months | 199,612 | 28,256 | | Over three months | 119,628 | 170,961 | | **Total** | **950,807** | **745,346** | Trade Payables and Bills Payable Ageing Analysis (by Due Date) | Ageing | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Current and within one month | 850,863 | 695,280 | | One to two months | 84,687 | 13,642 | | Two to three months | 14,144 | 15,565 | | Over three months | 1,113 | 20,859 | | **Total** | **950,807** | **745,346** | Final Dividend [Final Dividend](index=36&type=section&id=Final%20Dividend) The Board proposes a final dividend of **0.054 HKD** per share for the year, subject to shareholder approval at the AGM on September 4, 2025, payable on October 24, 2025, to shareholders on record as of October 6, 2025 - The Board resolved to recommend the payment of a final dividend of **0.054 HKD** per share for the current year to shareholders, subject to approval at the Annual General Meeting on September 4, 2025[77](index=77&type=chunk) - The proposed final dividend will be paid on Friday, October 24, 2025, to shareholders whose names appear on the company's register of members on Monday, October 6, 2025[77](index=77&type=chunk) Closure of Register of Members [Closure of Register of Members](index=36&type=section&id=Closure%20of%20Register%20of%20Members) The register of members will be closed from September 1 to September 4, 2025, to determine eligibility for attending and voting at the AGM, and from October 2 to October 6, 2025, to determine eligibility for the proposed final dividend - To determine eligibility for attending and voting at the 2025 Annual General Meeting, the register of members will be closed from Monday, September 1, 2025, to Thursday, September 4, 2025[78](index=78&type=chunk) - To determine eligibility for the proposed final dividend, the register of members will be closed from Thursday, October 2, 2025, to Monday, October 6, 2025[79](index=79&type=chunk) Annual General Meeting [Annual General Meeting](index=37&type=section&id=Annual%20General%20Meeting) The Annual General Meeting is scheduled for September 4, 2025, with the notice to be dispatched to shareholders in due course - The 2025 Annual General Meeting is scheduled to be held on Thursday, September 4, 2025, and the notice will be dispatched to shareholders in due course[80](index=80&type=chunk) Purchase, Sale or Redemption of the Company's Listed Securities [Purchase, Sale or Redemption of the Company's Listed Securities](index=37&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the year - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the current year[81](index=81&type=chunk) Corporate Governance [Corporate Governance](index=37&type=section&id=Corporate%20Governance) The company maintains high corporate governance standards, adhering to the Corporate Governance Code in Appendix C1 of the HKEX Listing Rules, with a deviation from C.2.1 where the CEO also serves as Chairman, deemed effective for consistent leadership and strategy execution - The company is committed to maintaining high standards of corporate governance practices and has complied with the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited throughout the current year[82](index=82&type=chunk) - A deviation from Corporate Governance Code provision C.2.1 (roles of chairman and chief executive should be separate) exists, as Mr. Ouyang Bok-kan, the company's Chief Executive Officer, has also served as the Chairman of the Board since April 13, 2022[82](index=82&type=chunk) - The Board believes that combining the roles of Chairman and Chief Executive Officer ensures consistent leadership for the Group and more effective execution of its overall strategy, further supported by a high proportion of independent non-executive directors reviewing key decisions[82](index=82&type=chunk) Audit Committee [Audit Committee](index=38&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors and one non-executive director, reviewed the Group's consolidated financial statements for the year, discussing accounting principles, internal controls, and financial reporting with management and auditors - The company's Audit Committee comprises three independent non-executive directors (Ms. Mui Man-yee, Mr. Ho Pak-chuen, Ms. Lee Sheung-yuk) and one non-executive director (Mr. Kam Chi-chiu)[83](index=83&type=chunk) - The Audit Committee has reviewed the Group's consolidated financial statements for the current year and discussed accounting principles and practices, internal controls, and financial reporting matters with management and the auditors[83](index=83&type=chunk) Scope of Work by Ernst & Young in Preliminary Announcement [Scope of Work by Ernst & Young in Preliminary Announcement](index=38&type=section&id=Scope%20of%20Work%20by%20Ernst%20%26%20Young%20in%20Preliminary%20Announcement) Ernst & Young confirmed that the financial figures in this preliminary announcement align with the Group's consolidated financial statements for the year ended March 31, 2025, noting that their work does not constitute an assurance engagement under HKSA, HKSRS, or HKSAE - Ernst & Young has confirmed that the figures for the Group's consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of financial position, and related notes for the year ended March 31, 2025, as presented in this announcement, are consistent with the amounts set out in the Group's consolidated financial statements for the current year[84](index=84&type=chunk) - Ernst & Young's work in this regard does not constitute an assurance engagement conducted in accordance with Hong Kong Standards on Auditing, Hong Kong Standards on Review Engagements, or Hong Kong Standards on Assurance Engagements issued by the Hong Kong Institute of Certified Public Accountants, and therefore no assurance is expressed[84](index=84&type=chunk) Publication of Further Information [Publication of Further Information](index=38&type=section&id=Publication%20of%20Further%20Information) The company's annual report for the year, containing information required by the Listing Rules, will be dispatched to shareholders and published on the HKEX and company websites in due course - The company's annual report for the current year, containing information required by the Listing Rules, will be dispatched to shareholders and published on the websites of The Stock Exchange of Hong Kong Limited and the company in due course[85](index=85&type=chunk) Acknowledgement [Acknowledgement](index=39&type=section&id=Acknowledgement) The Board extends its sincere gratitude to the Group's management and employees for their efforts and contributions throughout the year - The Board wishes to express its sincere gratitude to the Group's management and employees for their continuous efforts and contributions to the Group throughout the current year[86](index=86&type=chunk) By Order of the Board [By Order of the Board](index=39&type=section&id=By%20Order%20of%20the%20Board) The Board of Directors comprises executive directors Mr. Ouyang Bok-kan (Chairman and CEO) and Mr. Wong Wah-shun, non-executive directors Mr. Kam Chi-chiu and Mr. Wong Chun-kwong, and independent non-executive directors Mr. Ho Pak-chuen, Ms. Lee Sheung-yuk, and Ms. Mui Man-yee - The Board of Directors includes executive directors Mr. Ouyang Bok-kan (Chairman and Chief Executive Officer) and Mr. Wong Wah-shun, non-executive directors Mr. Kam Chi-chiu and Mr. Wong Chun-kwong, and independent non-executive directors Mr. Ho Pak-chuen, Ms. Lee Sheung-yuk, and Ms. Mui Man-yee[87](index=87&type=chunk)

Financial Performance - For the six months ended September 30, 2024, the company reported revenue of HKD 1,811,320 thousand, a decrease of 11.5% compared to HKD 2,046,848 thousand for the same period in 2023[10]. - Gross profit for the same period was HKD 282,935 thousand, down from HKD 307,420 thousand, reflecting a decline of 7.9%[10]. - The net profit for the period was HKD 27,475 thousand, a decrease of 27.1% from HKD 37,697 thousand in the previous year[10]. - Basic earnings per share for the period were HKD 3.42, down from HKD 4.48, representing a decline of 23.6%[10]. - The total comprehensive income for the period was HKD 16,481 thousand, compared to HKD 4,784 thousand in the same period last year, indicating a significant increase[12]. - The segment profit for the control solutions division was HKD 126,132, down 22.0% from HKD 161,801 in the previous year[32]. - The company reported a pre-tax profit of HKD 33,920 for the six months ended September 30, 2024, compared to HKD 48,330 in the same period of 2023, representing a decline of 29.8%[32]. - The total tax expense for the period was HKD 6,445,000, down from HKD 10,633,000 in the previous year, indicating a reduction of about 39%[40]. - Basic and diluted earnings per share for the six months ended September 30, 2024, were HKD 0.034, down from HKD 0.045 for the same period in 2023, reflecting a decline of approximately 24%[43]. - EBITDA decreased by 11.5% to HKD 146.5 million, maintaining an EBITDA margin of 8.1%[88]. Assets and Liabilities - As of September 30, 2024, total non-current assets amounted to HKD 928,402,000, a decrease of 2.6% from HKD 953,419,000 as of March 31, 2024[14]. - Current assets increased to HKD 1,799,298,000, up 7.9% from HKD 1,667,509,000 as of March 31, 2024, primarily driven by a rise in inventory to HKD 940,164,000, which is a 14.1% increase[14]. - Total liabilities increased to HKD 1,367,849,000, compared to HKD 1,236,491,000 as of March 31, 2024, reflecting a rise in current liabilities to HKD 1,278,698,000, which is an increase of 12.5%[14]. - The company's equity attributable to owners decreased to HKD 1,357,484,000 from HKD 1,380,738,000, indicating a decline of 1.7%[16]. - The company's non-current liabilities decreased to HKD 89,151,000 from HKD 100,374,000, a reduction of 11.1%[16]. - The company's total assets less current liabilities stood at HKD 1,449,002,000, down from HKD 1,484,811,000 as of March 31, 2024[16]. Cash Flow and Investments - The net cash flow from operating activities for the six months ended September 30, 2024, was HKD 88,532,000, down 12% from HKD 100,628,000 in the same period last year[21]. - The company reported a net cash outflow from investing activities of HKD 59,907,000, an improvement compared to HKD 88,651,000 in the prior year[21]. - Cash and cash equivalents at the end of the period were HKD 201,421,000, an increase from HKD 184,802,000 in the previous year[21]. - The group held cash and bank balances of HKD 217.1 million, including cash of HKD 201.4 million and restricted bank deposits of HKD 15.7 million[106]. - The total interest-bearing bank borrowings amounted to HKD 147.0 million, primarily consisting of bank loans repayable within one year[106]. Operational Highlights - The company plans to focus on new product development and market expansion strategies in the upcoming quarters[11]. - The management remains optimistic about future growth despite the current challenges in the market[11]. - The company is focused on the research, development, manufacturing, sales, and brand management of electronic control devices, emphasizing smart and sustainable living[24]. - The company faces challenges in the HVAC segment due to adverse weather conditions and weak demand in new housing construction and renovation activities[84]. - The geopolitical instability and slow economic growth have created uncertainties that require strategic adjustments in the company's approach[83]. - The company plans to launch new smart and sustainable appliances in the second half of the year to capture market potential[95]. - Investment in R&D focuses on energy and water management platforms, with AI products potentially reducing energy costs by up to 25%[102]. - The company is implementing strict cost control measures to maintain financial discipline, particularly regarding operational expenses in factories[102]. - The macroeconomic landscape presents ongoing challenges, but residential renovation activities are expected to increase significantly in 2024 due to new energy-saving upgrade standards[103]. - The company maintains a cautious optimism regarding growth potential while preparing to address economic challenges and seize emerging opportunities[105]. Shareholder and Governance Matters - The group did not recommend the payment of an interim dividend for the six months ended September 30, 2024, consistent with the previous year[42]. - The company has granted a total of 14,300,000 shares under the 2023 Share Award Scheme, with 1,600,000 shares vested and 1,200,000 shares lapsed, leaving 11,500,000 shares unvested[54]. - The company has capital commitments of HKD 10,412,000 for the acquisition of properties, plants, equipment, and software as of September 30, 2024, an increase from HKD 8,102,000 as of March 31, 2024[57]. - The total remuneration for key management personnel was HKD 13,730,000 for the six months ending September 30, 2024, slightly up from HKD 13,718,000 in the previous year[60]. - The company has maintained a high level of corporate governance, ensuring the overall interests of shareholders are protected[129]. - The audit committee consists of three independent non-executive directors and one non-executive director, overseeing accounting principles and internal controls[133]. - The company has confirmed that all directors have complied with the trading code during the period[130]. - Major shareholder Solar Power Group Limited holds 352,500,000 shares, representing approximately 41.84% of the company's issued share capital[152]. - The board has announced a change in the audit committee leadership, with Ms. Mei Min-Yi appointed as the new chair[158]. - Mr. Guan Wen-Hao did not seek re-election and has retired from the board as of September 5, 2024[158]. Market and Strategic Initiatives - The "global localization" strategy enhances the company's ability to respond flexibly to local market demands and customer needs[98]. - The establishment of production facilities in Romania and Vietnam aims to expand the company's global footprint and improve operational efficiency[96]. - The company is committed to sustainable development, aligning with the growing consumer demand for environmentally friendly solutions[103].

Financial Performance - For the six months ended September 30, 2024, the company reported revenue of HKD 1,811,320, a decrease of 11.5% compared to HKD 2,046,848 for the same period in 2023[2] - Gross profit for the same period was HKD 282,935, down from HKD 307,420, reflecting a gross margin of 15.6% compared to 15.0% in the previous year[2] - The net profit attributable to the owners of the company was HKD 28,808, a decline of 23.6% from HKD 37,709 in the prior year[4] - Basic earnings per share decreased to HKD 3.42 from HKD 4.48, representing a drop of 23.6%[4] - Total comprehensive income for the period was HKD 16,481, significantly up from HKD 4,784 in the previous year, driven by lower other comprehensive expenses[6] - The pre-tax profit for the period was HKD 33,920 thousand, down from HKD 48,330 thousand in the previous year, marking a decline of about 29.8%[25] - The company reported a net profit of HKD 27,475 thousand for the period, compared to HKD 37,697 thousand in the previous year, reflecting a decline of about 27.2%[25] - Total tax expenses for the period amounted to HKD 6,445,000, down from HKD 10,633,000 in the previous year, representing a reduction of about 39.5%[36] - EBITDA decreased by 11.5% to HKD 146.5 million, with EBITDA margin remaining stable at 8.1%[58] Assets and Liabilities - Non-current assets totaled HKD 928,402 as of September 30, 2024, down from HKD 953,419 as of March 31, 2024[8] - Current assets increased to HKD 1,799,298 from HKD 1,667,509, indicating a growth of 7.9%[8] - The company's total equity amounted to HKD 1,359,851, slightly down from HKD 1,384,437 as of March 31, 2024[11] - The total assets as of September 30, 2024, amounted to HKD 2,727,700 thousand, an increase from HKD 2,620,928 thousand as of the previous year, representing a growth of approximately 4.1%[25] - Trade receivables at the end of the reporting period totaled HKD 517,865,000, showing an increase from HKD 509,376,000 as of March 31, 2024[42] - Cash and bank balances were reported at HKD 217,110,000 as of September 30, 2024, compared to HKD 226,699,000 as of March 31, 2024[44] - Trade payables and notes payable amounted to HKD 828,581,000 at the end of the reporting period, up from HKD 745,346,000 as of March 31, 2024, reflecting an increase of approximately 11.1%[45] - Total interest-bearing bank borrowings amount to HKD 147.0 million, primarily consisting of loans repayable within one year[77] - The company maintains a net cash position of HKD 70.1 million after deducting total interest-bearing bank borrowings[77] Revenue Segments - Revenue from external customers for the control solutions segment was HKD 1,638,557 thousand, compared to HKD 1,844,431 thousand in the same period last year, representing a decrease of approximately 11.1%[25] - The brand business segment reported revenue of HKD 172,763 thousand, down from HKD 202,417 thousand, indicating a decline of about 14.6%[25] - Revenue for the first half of fiscal year 2024/25 decreased by 11.5% to HKD 1,811.3 million, down from HKD 2,046.8 million in the same period last year[52] - Revenue from the control solutions segment decreased by 11.2% to HKD 1,638.6 million, impacted by previous backlog shipments and reduced demand in HVAC[64] - Brand business revenue fell by 14.6% to HKD 172.8 million, attributed to warmer weather and a slowdown in new housing construction[66] Strategic Focus and Development - The company continues to focus on research and development of electronic control devices, emphasizing smart and sustainable living solutions[15] - The company’s growth strategy focuses on advancing smart and sustainable living solutions, including zero-carbon homes and expanding water-saving product lines[71] - Investment in R&D has led to the development of AI products that can reduce energy costs by up to 25%[73] - Strategic initiatives and new product launches are expected to positively impact performance in the second half of the fiscal year[66] - The company has established production facilities in Romania and is preparing a production base in Vietnam to enhance its global influence[67] Employee and Governance - As of September 30, 2024, the group employed approximately 4,006 full-time employees, with total employee costs amounting to HKD 326.6 million[84] - The group provided year-end double pay, discretionary bonuses, medical insurance, provident fund, education assistance, and training for its employees[84] - The company has maintained high standards of corporate governance, adhering to the corporate governance code, with a noted deviation regarding the roles of the chairman and CEO being held by the same individual since April 13, 2022[98] - The audit committee consists of three independent non-executive directors and has reviewed the accounting principles and financial reporting matters, including the interim performance[103] Share Award Plan - The 2023 Share Award Plan was approved on September 7, 2023, allowing for a total of 14,300,000 awards to be granted, of which 1,600,000 have vested and 1,200,000 have lapsed[89] - The total number of awards available under the 2023 Share Award Plan decreased from 78,254,000 at the beginning of the period to 71,154,000 at the end, representing about 8.45% of the company's issued share capital[89] - The 2023 Share Award Plan is valid for ten years and aims to reward and retain eligible participants contributing to the group's growth and development[86] - The maximum number of shares that can be awarded to selected participants under the 2023 Share Award Plan is capped at 1% of the total issued shares[86] - The board approved the conditional grants of 5,100,000 awards to the chairman and 3,200,000 awards to an executive director on April 26, 2024[87] - The awards granted under the 2023 Share Award Plan are subject to performance targets, including financial and management objectives[93] Miscellaneous - The group did not recommend an interim dividend for the six months ended September 30, 2024, consistent with the previous year[37] - The board does not recommend the payment of an interim dividend for the current period, consistent with the previous half-year[96] - There were no purchases, sales, or redemptions of the company's listed securities during the period[97] - The company has no significant contingent liabilities as of September 30, 2024[81] - The group has not pledged any bank deposits or other assets as collateral for bank financing as of September 30, 2024[82] - There have been no significant events affecting the group from the end of the reporting period to the announcement date[102] - The interim report will be sent to shareholders and published on the stock exchange and the company's website at an appropriate time[104] - The board expresses gratitude to the management and staff for their efforts and contributions during the period[106]

Financial Performance - Total revenue for the fiscal year decreased by HKD 167.0 million, from HKD 4,204.8 million in FY2023 to HKD 4,037.8 million in FY2024, a decline of approximately 4.0%[5] - Gross profit margin increased by 16.4% year-on-year, rising from 13.4% in FY2023 to 15.6% in FY2024, attributed to higher operational efficiency and favorable currency conditions[6] - Adjusted EBITDA for FY2024 was HKD 333.9 million, a significant increase of 13.2% compared to HKD 295.0 million in FY2023[8] - Pre-tax profit for FY2024 reached HKD 107.6 million, a substantial increase of 242.7% from HKD 31.4 million in FY2023[8] - Cash and bank deposits as of March 31, 2024, amounted to HKD 226.7 million, down from HKD 307.8 million as of March 31, 2023[9] - The company’s total equity attributable to owners increased to HKD 1,380,738,000 as of March 31, 2024, from HKD 1,318,240,000 in the previous fiscal year[47] - The company reported a solid current ratio of 1.5 times as of March 31, 2024, up from 1.3 times in the previous fiscal year[46] - The total interest-bearing bank borrowings amounted to HKD 136,445,000 as of March 31, 2024, a decrease from HKD 223,510,000 in the previous fiscal year[46] - The company generated total capital expenditures of approximately HKD 160,320,000 during the year, slightly down from HKD 165,612,000 in the previous fiscal year[50] - The company has no significant contingent liabilities as of March 31, 2024, maintaining a stable financial position[51] Operational Efficiency - Inventory balance decreased by 15.0% to HKD 824.0 million in FY2024, down from HKD 969.5 million in FY2023, due to improved operational efficiency[10] - Trade receivables as of March 31, 2024, were HKD 509.4 million, compared to HKD 555.2 million as of March 31, 2023[13] - The total debt-to-asset ratio decreased to 9.9% as of March 31, 2024, down from 17.0% year-on-year, due to reduced bank borrowings[14] - Strategic initiatives include enhancing cash reserves, improving profitability, and redesigning internal processes to increase inventory turnover and reduce operating costs[36] - The company achieved a maximum energy bill saving rate of 25% through AI models developed from global user data, which are now being integrated into new products and services[40] - The company has strengthened its control over expenditures and capital spending, enhancing financial cost management[159] Market Expansion and Product Development - The company is focusing on diversifying its revenue base and optimizing costs to mitigate the impact of macroeconomic factors[2] - The company is expanding into Eastern Europe with dedicated sales teams to capture new market opportunities[19] - Salus Protect, a new security service, aims to enter the security industry in Europe, enhancing smart home product sales and increasing recurring revenue per household in the EU and UK[20] - A central warehouse is being launched in Poland to improve logistics and distribution efficiency, supporting regional growth[21] - The company anticipates increased demand in the US and European markets in 2024, particularly for its brand business segment[35] - New product launches are expected to contribute an additional $300 million in revenue, with a focus on expanding the product line in the Asia-Pacific region[67] - The company is considering strategic acquisitions to bolster its market position, with a budget of $200 million allocated for potential deals[67] - The company is actively involved in market expansion and product development, leveraging its experienced management team to explore new opportunities[62] Research and Development - The R&D team consists of over 200 professionals, focusing on innovation and developing smart products across multiple global engineering centers[22] - The company has over 200 R&D engineers and more than 200 strategic market patents, positioning it as a leader in green and smart living technologies[40] - The company has adopted the new Matter standard to ensure its products meet the latest specifications in the smart home and IoT sectors[37] - The company is focusing on R&D and innovation, particularly in energy management, smart home ecosystems, and water resource management solutions[140] - The company is investing $50 million in research and development for new technologies aimed at enhancing operational efficiency[67] Employee and Leadership - As of March 31, 2024, the group employed 4,005 employees, a decrease from 4,221 employees in the fiscal year 2023[53] - Total employee costs for the year amounted to HKD 652,372,000, down from HKD 685,540,000 in the fiscal year 2023, reflecting a reduction of approximately 4.9%[53] - The company has implemented a new share incentive plan and a new share option plan approved at the annual general meeting on September 7, 2023, aimed at rewarding and retaining key contributors to the group's growth[59] - The group has a strong leadership team with over 50 years of experience in the electronics industry, which is expected to drive future growth and innovation[56] - The executive director, Ouyang Bokan, has over 30 years of comprehensive management experience in the electronics industry, enhancing the company's strategic direction[57] - The company is focused on attracting suitable talent for further development through its incentive plans, which are designed to motivate and retain key personnel[59] Sustainability and Compliance - The group has set quantitative environmental reduction targets for key performance indicators by 2025, including electricity consumption, greenhouse gas emissions, water consumption, and general waste[96] - The company emphasizes the importance of adapting to changing green regulations and assisting other organizations in compliance[143] - The company is committed to sustainable investment returns and aims to leverage its expertise to help other companies improve their sustainability[143] - The company has achieved significant progress in reducing its carbon footprint and improving resource efficiency over the past few years[144] - The group has established an Environmental, Social, and Governance (ESG) committee to support the board in overseeing the implementation of its policies[96] Shareholder Information - The board of directors has approved a dividend increase of 10%, reflecting the company's strong financial performance[67] - The proposed final dividend is HKD 0.05 per share, subject to approval at the 2024 Annual General Meeting on September 5, 2024[87] - The company's distributable reserves as of March 31, 2024, were HKD 42,127,000, after deducting the proposed final dividend of HKD 877,185,000[104] - The board of directors has confirmed the independence of all current independent non-executive directors as of the report date[119] - The group did not purchase, sell, or redeem any of its listed securities during the year[109] Risk Management - The board report includes a business review discussing major risks, uncertainties, and significant events affecting the company, along with future development insights[95] - The company recognizes the need to adjust its strategies to navigate a complex and changing environment, particularly in response to geopolitical tensions and sustainability concerns[158] - There were no significant disputes with suppliers, customers, or other stakeholders during the year[98]

Financial Performance - Total revenue for the fiscal year 2024 decreased by 4.0% to HKD 4,037.8 million from HKD 4,204.8 million in fiscal year 2023[6] - Gross profit increased by 24.0% to HKD 631.1 million, with a gross margin improvement from 13.4% to 15.6%[6] - EBITDA rose by 41.9% to HKD 340.9 million compared to HKD 240.2 million in the previous year[2] - Net profit after tax surged by 257.0% to HKD 83.9 million, up from HKD 23.5 million in fiscal year 2023[2] - Basic earnings per share rose to HKD 10.10, compared to HKD 2.67 in the previous year, reflecting a significant increase[47] - Net profit for the year was HKD 83,912, up 256.56% from HKD 23,539 in 2023[48] - Adjusted profit before tax for the year was HKD 107,580,000, compared to HKD 31,392,000 in the previous year, indicating a significant increase[127] Cash and Liquidity - Net cash improved to HKD 90.3 million from HKD 84.3 million year-on-year, with cash and bank deposits totaling HKD 226.7 million[8] - As of March 31, 2024, the group's cash and bank deposits stood at HKD 226.7 million, down from HKD 307.8 million in fiscal year 2023, with a current ratio of 1.5 times compared to 1.3 times in the previous fiscal year[42] - The company has maintained a stable financial and liquidity position, with no significant contingent liabilities reported for the fiscal year[44] Debt and Equity - The total debt-to-asset ratio improved to 9.9%, down from 17.0% year-on-year, due to reduced bank borrowings[10] - The company reported a total equity of HKD 1,384,437, an increase from HKD 1,322,815 in 2023[50] - The total liabilities decreased to HKD 1,236,491,000 from HKD 1,617,916,000, indicating a reduction of 23.5%[127] - The total equity attributable to owners as of March 31, 2024, is HKD 1,380,738,000, up from HKD 1,318,240,000 in the previous fiscal year[155] Operational Efficiency - Inventory levels decreased by 15.0% to HKD 824.0 million from HKD 969.5 million, attributed to improved operational efficiency[8] - The group has implemented SAP to enhance operational efficiency across various functions, including sales, supply chain management, and human resources, aiming to improve customer satisfaction and drive digital transformation[32] - The company plans to redesign internal processes, particularly in global material centers and order management, to improve inventory turnover and reduce operating costs[61] Strategic Initiatives - The company plans to diversify its revenue base to mitigate the impact of macroeconomic factors and transition to a "region-to-region" model[5] - The group has strategically positioned itself to capitalize on the rapidly expanding green and smart markets by increasing R&D investments, particularly in energy and water resource management platforms utilizing artificial intelligence[26] - The company is focusing on strategic partnerships and cloud technology to enhance R&D capabilities[56] - The company is committed to investing in cutting-edge technologies such as artificial intelligence and machine learning to enhance energy management solutions[172] Market and Economic Outlook - The global economic outlook for 2024 is uncertain, with expected growth declining from 3% in 2023 to 2.9%[54] - The North American real estate market has stagnated post-pandemic, exacerbated by rising interest rates, with current rates at 5.5%[193] - Inflation in the US remains at 3.7%, leading to reduced consumer spending and increased operational costs due to higher borrowing costs[193] Research and Development - The group has a strong global R&D team of over 200 professionals and more than 200 strategic market patents, focusing on energy management, water resource management, and cutting-edge Matter standard platforms and products[28] - The company maintains a strong focus on research and development to innovate solutions that meet changing customer needs and market trends[177] Product Development and Innovation - The company is expanding its energy management platform through the implementation of zero-carbon homes and early adoption of Matter standards[61] - New product launches include energy management products such as electric vehicle chargers and home battery storage solutions, AI-driven climate control systems, and Matter-compatible thermostats[188] - A key focus for the future is the launch of Salus Protect security services, aimed at entering the security industry and enhancing smart home product sales in Europe[189] Sales and Revenue Breakdown - Revenue breakdown by region for 2024 shows Americas at HKD 1,892,423, Europe at HKD 1,562,529, Asia at HKD 574,971, and Oceania at HKD 7,895[107] - Revenue from customer contracts for 2024 is HKD 4,037,818, a decrease of 3.95% from HKD 4,204,764 in 2023[107] - Brand business revenue decreased from HKD 539.1 million in FY2023 to HKD 436.8 million in FY2024, a decline of 19.0%[188] Employee and Operational Metrics - The company employed 4,005 employees as of March 31, 2024, a decrease from 4,221 employees in the previous fiscal year[160] - The total employee cost for the year is HKD 652,372,000, a decrease from HKD 685,540,000 in the previous fiscal year[160]

Financial Performance - For the six months ended September 30, 2023, the company reported revenue of HKD 2,046,848,000, a decrease of 2.1% compared to HKD 2,090,500,000 for the same period in 2022[8] - Gross profit for the same period was HKD 307,420,000, representing a 14.9% increase from HKD 267,459,000 year-over-year[8] - The net profit for the period was HKD 37,697,000, up 24.6% from HKD 30,251,000 in the previous year[9] - Basic earnings per share increased to HKD 4.48, compared to HKD 3.58 for the same period last year, reflecting a 25.1% growth[8] - The operating profit before tax for the group was HKD 48,330,000 for the six months ended September 30, 2023, compared to HKD 40,334,000 for the same period in 2022, reflecting an increase of 19.8%[27] - The group reported a profit for the period of HKD 37,697,000 for the six months ended September 30, 2023, compared to HKD 30,251,000 in 2022, representing a growth of 24.6%[27] - The total tax expense for the period was HKD 10,633,000, slightly up from HKD 10,083,000 in the prior year, reflecting a tax rate of 16.5% applicable in Hong Kong[36] Assets and Liabilities - The company's total assets as of September 30, 2023, were HKD 2,912,661,000, a slight increase from HKD 2,940,731,000 as of March 31, 2023[11] - Current liabilities totaled HKD 1,518,593,000, which is an increase from HKD 1,495,560,000 at the end of the previous fiscal year[11] - As of September 30, 2023, total assets less current liabilities amounted to HKD 1,394,068,000, a decrease from HKD 1,445,171,000 as of March 31, 2023, representing a decline of approximately 3.5%[12] - The total equity attributable to the owners of the company as of September 30, 2023, was HKD 1,305,379,000, a decrease from HKD 1,318,240,000 as of March 31, 2023, reflecting a decline of approximately 1.0%[14] - The group’s total liabilities increased to HKD 1,168,000,000 as of September 30, 2023, compared to HKD 1,150,000,000 as of March 31, 2023, indicating a rise of 1.6%[29] Cash Flow and Financing - The net cash flow from operating activities for the six months ended September 30, 2023, was HKD 100,628,000, down from HKD 143,640,000 in the same period last year, indicating a decrease of about 30%[16] - Cash and cash equivalents at the end of the period were HKD 184,802,000, down from HKD 343,907,000 at the beginning of the period, representing a decrease of approximately 46%[16] - Financing costs increased to HKD 33,983,000 from HKD 19,018,000, indicating higher borrowing costs[8] - The net cash used in financing activities was HKD 79,910,000 for the six months ended September 30, 2023, compared to a net cash inflow of HKD 7,693,000 in the previous year[16] Inventory and Receivables - The company reported a decrease in inventory to HKD 925,684,000 from HKD 969,470,000, indicating improved inventory management[11] - As of September 30, 2023, trade receivables totaled HKD 1,031,685,000, an increase from HKD 946,473,000 as of March 31, 2023[44] - The aging analysis of trade receivables showed that 91.4% were due within one month, indicating strong credit control measures[44] - The group’s trade receivables amounted to HKD 616.7 million, an increase from HKD 555.2 million as of March 31, 2023, due to reduced factoring usage in a high-interest environment[74] Dividends and Share Plans - The company declared a final dividend of HKD 17,693,000 for the period, which is a reduction compared to previous dividends declared[14] - The company did not recommend an interim dividend for the six months ended September 30, 2023, consistent with the previous year[37] - The 2023 Share Award Plan was approved on September 7, 2023, allowing for a total of 84,254,000 shares to be awarded, representing 10% of the company's issued shares[102] - A total of 6,000,000 shares were granted to five senior management members under the 2023 Share Award Plan, with all recipients formally accepting the awards[104] Strategic Focus and Market Outlook - The company plans to focus on expanding its market presence and investing in new product development to drive future growth[7] - The company continues to focus on research and development of electronic control devices, emphasizing smart and sustainable living solutions[18] - The global smart home device market is expected to grow steadily by 4.6% this year, driven by demand for security and home monitoring products[65] - The company plans to further penetrate existing smart and sustainable living markets and strengthen its revenue base amid macroeconomic challenges[63] - The group is focusing on R&D investments in key technology areas such as AI, ML, IoT, and automation, enhancing its position as a technology leader[80] Corporate Governance - The company is committed to maintaining high standards of corporate governance to enhance management efficiency and protect shareholder interests[110] - The audit committee, consisting of three independent non-executive directors, reviewed the accounting principles and financial reporting matters, including the interim results[114]

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的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 COMPUTIME GROUP LIMITED 金 寶 通 集 團 有 限 公 司 * （於開曼群島註冊成立的有限公司） （股份代號：320） 截 至 二 零 二 三 年 九 月 三 十 日 止 六 個 月 的 中 期 業 績 公 告 金寶通集團有限公司（「本公司」或「金寶通」）董事會（「董事會」）欣然宣佈本公司及其 附屬公司（統稱「本集團」）截至二零二三年九月三十日止六個月（「二三╱二四財年上 半年」或「本期間」）的未經審核中期簡明綜合業績，連同截至二零二二年九月三十日 止六個月（「二二╱二三財年上半年」）的比較數字。 摘要 二三╱二四 二二╱二三 財年上半年 財年上半年 按年變動 ...

Financial Performance - The overall revenue for the fiscal year ending March 31, 2023, increased by 0.5% to HKD 4,204.8 million[9]. - The revenue from the brand business, including Braeburn System LLC, grew by 31.1% to HKD 539.1 million, reflecting significant business synergies[9]. - The revenue for the fiscal year 2023 increased to HKD 4,204.8 million, compared to HKD 4,184.8 million for the fiscal year 2022, showing growth despite challenges[19]. - The gross profit increased to HKD 563.7 million, representing a gross margin of 13.4%, up from HKD 537.3 million in the previous fiscal year[19]. - The net profit decreased by 71.9% to HKD 23.5 million due to additional inventory provisions in Malaysia, compared to HKD 83.7 million in the fiscal year 2022[22]. - Adjusted net profit, excluding the inventory provision and one-time gains, increased by 21.9% to HKD 78.4 million from HKD 64.3 million in the previous fiscal year[22]. - The EBITDA for fiscal year 2023 decreased by 8.7% to HKD 240.2 million, down from HKD 263.1 million in fiscal year 2022[22]. - Trade receivables for the fiscal year 2023 amounted to HKD 555.2 million, compared to HKD 499.2 million in the fiscal year 2022[23]. - Revenue from the control solutions business was HKD 3,665.7 million, slightly down from HKD 3,773.6 million in the previous fiscal year, with a gross margin decrease of 2.0 percentage points to 9.4%[24]. Strategic Initiatives - The company implemented cost control measures, including lean production and reduction of indirect costs, to maintain healthy levels of sales and distribution expenses as well as administrative expenses[11]. - The company is focusing on enhancing research capabilities in key areas such as AI, human-machine interaction, wireless connectivity, IoT, and cloud technology[11]. - New product offerings include electric vehicle charging equipment, integrated smart irrigation systems, lawnmowers, home security systems, and AI thermostats, aimed at enhancing core competitiveness and providing energy-saving user experiences[11]. - The company plans to develop a commercial zero-carbon home platform to seize green development opportunities and assist households in achieving zero-carbon goals[11]. - The company is strategically restructuring its material management processes globally to improve visibility and collaboration with suppliers and customers[9]. - The company aims to invest in new technologies such as AI, machine learning, and IoT to enhance its product offerings and maintain competitiveness[18]. - The company plans to expand its product and service offerings in zero-carbon homes, including EV chargers and professional security solutions[31]. Supply Chain and Inventory Management - The company has increased inventory of critical components to mitigate supply chain disruptions, allowing for more flexible responses to customer demands[9]. - The company is strategically increasing inventory levels of critical components to ensure timely order fulfillment[20]. Market Position and Challenges - The geopolitical risks and inflationary pressures have posed challenges to the company's operations, but it has maintained resilience in its overall revenue and market share[9]. - The company has established itself as a market leader in IoT and home automation products through innovative design and manufacturing solutions[1]. - The management remains cautiously optimistic about future prospects despite economic challenges, leveraging its position as a leader in smart and sustainable living[31]. Corporate Governance and Management - The company has a strong management team with extensive experience in manufacturing, supply chain management, and technology development[68][69][70][71]. - The board consists of eight members, including two executive directors, two non-executive directors, and four independent non-executive directors, complying with listing rules[140]. - The board includes experienced non-executive directors, such as Gan Zhichao, a senior member of the Hong Kong Institute of Certified Public Accountants[50]. - The company has a diverse board with members experienced in law, finance, and engineering, enhancing its governance structure[51][52]. - The company has established a nomination committee to oversee the appointment and independence of directors[148]. - The board has mechanisms in place to ensure independent advice and timely access to relevant information for all directors[137]. - The company emphasizes five core values: customer-centricity, solution-driven, innovation, collaboration, and integrity, to promote sustainable development[135]. Environmental, Social, and Governance (ESG) - The company aims to integrate ESG into its business strategy and corporate culture[32]. - The company has established an Environmental, Social, and Governance (ESG) committee to oversee the implementation of its policies in these areas[79]. - The company has set quantified environmental performance indicators for 2025, including targets for electricity consumption, greenhouse gas emissions, water consumption, and general waste[79]. Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to 12%[55]. - New product launches are expected to contribute an additional $200 million in revenue, with a focus on innovative technology solutions[55]. - The company is expanding its market presence in Asia, targeting a 25% increase in market share over the next two years[55]. Shareholder Information - The proposed final dividend is HKD 0.0210 per share, to be paid on October 9, 2023, to shareholders listed on September 21, 2023[75]. - The proposed final dividend of HKD 17,693,000 is subject to approval at the 2023 annual general meeting[77]. - The company has adopted a dividend policy without a preset payout ratio, with dividends subject to the board's discretion based on financial performance and other factors[84]. Risk Management - The audit committee oversees the group's risk management and internal control systems, ensuring they are effective and aligned with business objectives[182]. - The group established a risk management framework in April 2016 to identify and assess risks consistently across the organization[183]. - The internal audit function provides independent assurance to the audit committee and senior management regarding the effectiveness of governance, risk management, and internal controls[193]. - The board believes that the risk management and internal control systems are effective and sufficient, with no significant concerns affecting the group's financial, operational, compliance, and risk management functions identified[197].

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的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 COMPUTIME GROUP LIMITED 金 寶 通 集 團 有 限 公 司 * （於開曼群島註冊成立的有限公司） （股份代號：320） 截 至 二 零 二 三 年 三 月 三 十 一 日 止 年 度 的 全 年 業 績 公 告 金寶通集團有限公司（「本公司」或「金寶通」）董事會（「董事會」）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（「本年度」或「二零二三財 政年度」）的綜合業績，連同截至二零二二年三月三十一日止年度（「二零二二財政年 度」）的比較數字如下： 摘要 二零二三 二零二二 財政年度 財政年度 按年變動 百萬港元 百萬港元 ...

Financial Performance - Revenue for the six months ended September 30, 2022, was HKD 2,090,500, an increase from HKD 1,836,206 for the same period in 2021, representing a growth of 13.9%[8] - Gross profit for the same period was HKD 267,459, compared to HKD 255,758 in the previous year, reflecting a gross margin improvement[8] - The net profit for the period was HKD 30,251, down from HKD 34,156 in the prior year, indicating a decrease of 11.1%[8] - Basic earnings per share for the period was HKD 3.58, compared to HKD 4.06 in the previous year, a decline of 11.8%[8] - The group reported a pre-tax profit of HKD 1,823,121 thousand for the six months ended September 30, 2022, compared to HKD 1,574,829 thousand for the same period in 2021, reflecting an increase of approximately 15.7%[44] - The cost of goods sold for the six months ended September 30, 2022, was HKD 1,823,121 thousand, compared to HKD 1,574,829 thousand for the same period in 2021, representing an increase of approximately 15.7%[44] - The group reported a total tax expense of HKD 10,083,000 for the six months ended September 30, 2022, compared to HKD 7,408,000 for the same period in 2021, reflecting an increase of approximately 36%[47] Assets and Liabilities - Total assets as of September 30, 2022, amounted to HKD 2,918,585, an increase from HKD 2,799,964 as of March 31, 2022[14] - Current assets totaled HKD 2,047,595, up from HKD 1,915,928 as of March 31, 2022, indicating a growth of 6.9%[14] - The total liabilities as of September 30, 2022, were HKD 1,525,027, compared to HKD 1,321,851 as of March 31, 2022, representing an increase of 15.4%[14] - Total assets less current liabilities as of September 30, 2022, amounted to HKD 1,393,558, a decrease from HKD 1,478,113 as of March 31, 2022, representing a decline of approximately 5.73%[15] - The total equity as of September 30, 2022, was HKD 1,317,117, down from HKD 1,389,888 as of March 31, 2022, reflecting a decrease of about 5.2%[15] - Non-current liabilities decreased to HKD 76,441 as of September 30, 2022, from HKD 88,225 as of March 31, 2022, showing a reduction of approximately 13.3%[15] Cash Flow and Investments - Net cash flow from operating activities for the six months ended September 30, 2022, was HKD 143,640, compared to a cash outflow of HKD 118,709 in the same period last year, indicating a significant turnaround[19] - The company reported a net cash outflow from investing activities of HKD 101,081 for the six months ended September 30, 2022, compared to HKD 78,656 in the prior year, indicating increased investment activity[19] - Financing activities generated a net cash inflow of HKD 7,693, a recovery from a cash outflow of HKD 17,071 in the same period last year[19] - Cash and cash equivalents at the end of the period were HKD 343,907, a slight decrease from HKD 368,999 at the end of the previous year, representing a decline of about 6.8%[19] - Capital expenditures for the period were approximately HKD 102,082,000, primarily for the acquisition of property, plant, and equipment, as well as deferred expenses related to new product development[118] Customer and Market Dynamics - The company faced significant challenges in 2022, including supply chain disruptions due to COVID-19 and rising raw material costs exacerbated by the Russia-Ukraine conflict[104] - Consumer demand in Europe and America has been gradually declining, with nearly 40% of consumers reducing spending on non-essential goods[104] - The group’s largest customer accounted for 21.0% of total trade receivables, down from 36.2% as of March 31, 2022, indicating improved customer diversification[56] Employee and Management - The group employs around 4,500 full-time employees, with total employee costs amounting to HKD 360,558,000 for the period[123] - The company recognized a total of HKD 15,440,000 in key management personnel compensation for the six months ended September 30, 2022, compared to HKD 19,016,000 for the same period in 2021[84] - The company reported short-term employee benefits of HKD 15,341,000 for the six months ended September 30, 2022, down from HKD 18,777,000 in the previous year[84] Strategic Outlook - The company plans to focus on cost control and efficiency improvements to navigate market volatility and maintain competitive advantages in new regional markets[113] - The group maintains a cautiously optimistic outlook for the future, with the successful integration of Braeburn expected to provide new directions for business development[115] - The group continues to invest in R&D, focusing on AI, machine learning, robotics, cloud computing, and electric vehicle chargers to expand its global production layout[115] Shareholder Information - As of September 30, 2022, the company has a total of 352,500,000 shares held by Solar Power Group Limited, representing 41.84% of the issued shares[135] - The total beneficial ownership of shares by Mr. Ouyang and his spouse, Ms. Xie, amounts to 353,523,000 shares, which is approximately 41.96%[139] - Mr. Xiang Lichi holds 202,132,000 shares, accounting for 23.99% of the total shares[139] - The company has no other significant shareholders with 5% or more ownership recorded as of September 30, 2022[142] Dividend and Capital Management - The group did not recommend the payment of an interim dividend for the six months ended September 30, 2022, consistent with the previous year[51] - The company’s issued share capital remained stable at HKD 84,254 as of September 30, 2022, consistent with the previous reporting period[15]