[Company Information](index=2&type=section&id=Company%20Information) This section provides core company details including registration information, principal place of business, stock code, legal advisors, auditors, and share registrars [Company Basic Information](index=2&type=section&id=Company%20Basic%20Information) This section provides core company details including registration information, principal place of business, stock code, legal advisors, auditors, and share registrars - The company's stock code is **328**, listed on the Hong Kong Stock Exchange[9](index=9&type=chunk) - The company's auditor is **Kao Lee & Co. CPA Limited**[6](index=6&type=chunk) - The company's registered office is in Bermuda, with its principal place of business in Shatin, Hong Kong[7](index=7&type=chunk)[170](index=170&type=chunk) [Chairman's Statement](index=3&type=section&id=Chairman%27s%20Statement) [Group Performance and Dividends](index=4&type=section&id=Group%20Performance%20and%20Dividends) This year, the Group's revenue significantly increased by **66%** and recorded a gross profit, with the annual profit primarily attributed to a one-off gain from deconsolidation of discontinued operations; excluding this gain, the company would still face a net loss, and the Board does not recommend a final dividend FY2024 Performance Overview (Continuing Operations) | Indicator | FY2024 (HKD) | FY2023 (HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 148,000,000 | 89,000,000 | +66% | | Gross Profit/(Loss) | 9,000,000 | (11,000,000) | Turnaround to Profit | | Profit/(Loss) for the Year | 592,000,000 | (516,000,000) | Turnaround to Profit | - The annual profit primarily resulted from a **HKD 596 million** gain from the deconsolidation of discontinued operations[174](index=174&type=chunk) - The Board does not recommend a final dividend for the financial year ended March 31, 2024[175](index=175&type=chunk) [Business Review and Outlook](index=4&type=section&id=Business%20Review%20and%20Outlook) The Group's core business involves developing and selling own-brand notebook and tablet computers, transitioning from in-house manufacturing to outsourced ODM/OEM; despite slight operational improvements, the overall financial situation remains severe, necessitating continued reliance on capital market financing, enhanced operational efficiency, and exploration of business collaborations to address challenges and pursue growth - The core business involves the development and sales of **own-brand notebook and tablet computers**[19](index=19&type=chunk) - The company has transitioned from in-house manufacturing to outsourced ODM and OEM, achieving gross profit, but the business environment remains challenging, with new product and market development as a top priority[48](index=48&type=chunk) - Excluding the one-off gain from subsidiary divestment, the company would still face a net loss for the current year, advising caution in operations and cash flow management[139](index=139&type=chunk) - Future sustainability will rely on continued capital market fundraising, operational optimization, and business collaborations[178](index=178&type=chunk)[483](index=483&type=chunk)[498](index=498&type=chunk) [Biographical Details of Directors](index=5&type=section&id=Biographical%20Details%20of%20Directors) [Board of Directors Profile](index=5&type=section&id=Board%20of%20Directors%20Profile) This section details the personal biographies of executive, non-executive, and independent non-executive directors, including their age, education, professional experience, and positions held in other listed companies - Executive Director Ms. Liao Liping possesses over **twenty-seven years** of experience in banking, investment, and education sectors[486](index=486&type=chunk) - Executive Director Mr. He Zeyu has extensive experience in multinational business, particularly in overseas market development[501](index=501&type=chunk) - The independent non-executive director team possesses diverse professional backgrounds including accounting, corporate finance, information technology, engineering, and public administration[12](index=12&type=chunk)[533](index=533&type=chunk)[535](index=535&type=chunk)[16](index=16&type=chunk)[491](index=491&type=chunk) [Corporate Governance Report](index=8&type=section&id=Corporate%20Governance%20Report) [Corporate Governance Practices](index=9&type=section&id=Corporate%20Governance%20Practices) The company is committed to maintaining high corporate governance standards, having complied with all applicable code provisions in Appendix C1 of the Listing Rules; the Board is responsible for the Group's business and strategic decisions and has received annual independence confirmations from all independent non-executive directors - During the current year, the company has complied with all applicable code provisions of the Code[537](index=537&type=chunk) [Board of Directors](index=9&type=section&id=Board%20of%20Directors) The Board currently comprises two executive directors, one non-executive director, and five independent non-executive directors, holding **49** meetings during the reporting period with generally high attendance; the company has adopted a board diversity policy and clarified the division of responsibilities between the Board and senior management - The Board consists of **8** members, including **2** executive directors, **1** non-executive director, and **5** independent non-executive directors, meeting independence requirements[508](index=508&type=chunk)[538](index=538&type=chunk) Attendance at Board and General Meetings During the Year | Director Name | Position | Board Meeting Attendance | General Meeting Attendance | | :--- | :--- | :--- | :--- | | Mr. He Zeyu | Executive Director | 49/49 | 0/3 | | Mr. Yang Min | Non-Executive Director | 17/17 | Not Applicable | | Mr. Chu Hoi Kan | Independent Non-Executive Director | 49/49 | 2/3 | | Mr. Lam Chi Wing | Independent Non-Executive Director | 49/49 | 0/3 | | Mr. Tang She Kin | Independent Non-Executive Director | 49/49 | 2/3 | [Board Committees](index=12&type=section&id=Board%20Committees) The company has established Remuneration, Audit, and Nomination Committees, all composed of and chaired by independent non-executive directors; the report details each committee's responsibilities, composition, and annual meeting attendance, ensuring the independence and professionalism of the corporate governance structure - The Remuneration Committee comprises **five** independent non-executive directors, responsible for reviewing and recommending remuneration for directors and senior management[516](index=516&type=chunk)[52](index=52&type=chunk) - The Audit Committee consists of **five** independent non-executive directors, overseeing the financial reporting process, internal controls, and risk management[517](index=517&type=chunk)[53](index=53&type=chunk) - The Nomination Committee is composed of **five** independent non-executive directors, responsible for reviewing the Board structure, identifying, and nominating director candidates[55](index=55&type=chunk)[550](index=550&type=chunk) [Auditor's Opinion and Management's Response](index=15&type=section&id=Auditor%27s%20Opinion%20and%20Management%27s%20Response) The auditor issued a 'Disclaimer of Opinion' on this year's consolidated financial statements primarily due to significant uncertainties related to going concern and insufficient audit evidence for discontinued operations; management responded by outlining remedial measures, including debt restructuring, seeking shareholder loan extensions, and improving operating cash flow, asserting the company's ability to continue as a going concern, which the Audit Committee concurred with, requesting resolution of the issues - Auditor **Kao Lee & Co. CPA Limited** issued a 'Disclaimer of Opinion' on the Group's consolidated financial statements[60](index=60&type=chunk)[167](index=167&type=chunk) - The basis for the disclaimer includes significant uncertainties that may cast substantial doubt on the going concern ability, such as **net current liabilities of HKD 169 million** and overdue bank borrowings, along with insufficient evidence to support management's cash flow forecasts[555](index=555&type=chunk)[93](index=93&type=chunk)[526](index=526&type=chunk) - Another issue is the auditor's inability to verify the revenue, loss, and asset and liability amounts related to discontinued operations (disposal group) due to lack of access to their books and records[96](index=96&type=chunk)[69](index=69&type=chunk)[529](index=529&type=chunk) - Management is implementing multiple measures to address liquidity pressure, including bank loan restructuring, managing shareholder loans, negotiating extended repayment terms with suppliers, and striving to improve operating cash flow[43](index=43&type=chunk)[46](index=46&type=chunk)[98](index=98&type=chunk)[67](index=67&type=chunk)[99](index=99&type=chunk) [Risk Management and Internal Control](index=21&type=section&id=Risk%20Management%20and%20Internal%20Control) The Board bears ultimate responsibility for the Group's risk management and internal control systems, aiming to manage rather than eliminate risks; the Audit Committee oversees these systems and has outsourced internal control review to a third-party consulting firm to ensure system effectiveness and adequacy - The Board holds ultimate responsibility for risk management and internal control systems, and is responsible for reviewing their effectiveness[104](index=104&type=chunk) - The company has outsourced its internal control review to a third-party consulting firm to assess system effectiveness[566](index=566&type=chunk) [Directors' Report](index=22&type=section&id=Directors%27%20Report) [Business and Financial Review](index=23&type=section&id=Business%20and%20Financial%20Review) This report reviews the Group's principal activities, performance, and financial position, focusing on consumer electronics products and environmental impact reduction; financially, it discloses the use of proceeds from placings and rights issues, detailing the Group's liquidity, inventory, trade receivables, and payables, noting a significant reduction in employee count by year-end - The Group's principal activity is investment holding, with subsidiaries engaged in the design, manufacture, and sale of **consumer electronic products**[600](index=600&type=chunk)[110](index=110&type=chunk) - The Board does not recommend a final dividend[79](index=79&type=chunk) Financial Position Summary as at March 31, 2024 | Indicator | Amount (HKD) | 2023 Corresponding Period (HKD) | | :--- | :--- | :--- | | Total Deficit | 88,000,000 | 795,000,000 | | Bank Balances and Cash | 24,000,000 | 2,000,000 | | Net Borrowings | 186,000,000 | 154,000,000 | | Inventories | 3,000,000 | 38,000,000 | | Trade Receivables | 38,000,000 | 8,000,000 | | Trade Payables | 29,000,000 | 49,000,000 | - As at March 31, 2024, the Group employed approximately **15** employees, a significant reduction from **59** last year[143](index=143&type=chunk) [Use of Proceeds](index=24&type=section&id=Use%20of%20Proceeds) The report details the use of proceeds from the 2022 placing, 2023 rights issue, and 2024 placing; most funds were used as planned for loan repayment, external debt settlement, and general working capital, with some remaining funds earmarked primarily for bank loan repayment Summary of Use of Proceeds | Event | Intended Use | Amount Used as at 31/3/2024 (Thousand HKD) | Unused Amount (Thousand HKD) | | :--- | :--- | :--- | :--- | | 2023 Rights Issue | Repayment of bank and other borrowings | 28,000 | 11,000 | | 2023 Rights Issue | Settlement of external debts | (37,080) | 0 | | 2024 Placing | Repayment of bank and other borrowings | 0 | 10,000 | | 2024 Placing | Settlement of external debts | 15,500 | 1,500 | [Directors and Shareholding Structure](index=28&type=section&id=Directors%20and%20Shareholding%20Structure) This section lists Board members and changes during the reporting period, outlining director re-election arrangements; it confirms no material conflicts of interest for directors in competing businesses and the company's purchase of directors' liability insurance, also disclosing major shareholders with over **5%** equity and confirming sufficient public float - Ms. Liao Liping, Mr. Yang Min, Mr. Tang Chaoman, and Ms. Mak Suet Man will retire and offer themselves for re-election at the upcoming Annual General Meeting[127](index=127&type=chunk) - No directors or chief executives held interests or short positions in the shares of the company or its associated corporations requiring disclosure under the Securities and Futures Ordinance[154](index=154&type=chunk)[132](index=132&type=chunk) Major Shareholders' Shareholding (Over 5% Holding) | Shareholder Name | Capacity | Number of Shares (Long Position) | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Bong Ching Chung | Beneficial Owner | 6,400,000 | 6.70% | | Mr. Toh Cheng Hock Kenneth | Beneficial Owner | 5,500,000 | 5.76% | - The company maintained a sufficient public float, exceeding **25%** of its issued shares, throughout the reporting period and up to the report date[188](index=188&type=chunk) [Independent Auditor's Report](index=32&type=section&id=Independent%20Auditor%27s%20Report) [Disclaimer of Opinion](index=33&type=section&id=Disclaimer%20of%20Opinion) Auditor Kao Lee & Co. CPA Limited issued a 'Disclaimer of Opinion' on the Group's consolidated financial statements as of March 31, 2024, primarily due to insufficient audit evidence regarding the appropriateness of the going concern assumption and inability to verify financial data for discontinued operations; these significant uncertainties and audit scope limitations form the basis for the disclaimer - The auditor explicitly stated that due to the significance of matters described in the 'Basis for Disclaimer of Opinion' section, sufficient and appropriate audit evidence could not be obtained, thus no opinion is provided on the consolidated financial statements[167](index=167&type=chunk)[191](index=191&type=chunk) - Significant uncertainty exists regarding going concern: the Group recorded a net loss from continuing operations, with **net current liabilities of HKD 169 million**, approximately **HKD 47.53 million** in overdue bank borrowings, and cash and balances of only approximately **HKD 23.86 million**[192](index=192&type=chunk)[555](index=555&type=chunk) - Audit scope limitation: the auditor could not verify the annual loss, assets held for sale, and related liabilities of the discontinued Dongguan production line (disposal group) due to inability to obtain its books and records[95](index=95&type=chunk)[96](index=96&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk) - The auditor could not be satisfied with the reasonableness of management's forecasts for debt restructuring, shareholder loan extensions, and future operational improvements, thus unable to determine the appropriateness of preparing financial statements on a going concern basis[196](index=196&type=chunk)[526](index=526&type=chunk) [Consolidated Financial Statements](index=36&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss](index=36&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the year ended March 31, 2024, the Group's continuing operations recorded a loss of approximately **HKD 3.07 million**, but achieved an overall profit of approximately **HKD 592 million** for the year, turning profitable, primarily due to a **HKD 595 million** profit from discontinued operations (mainly from deconsolidation gain); basic earnings per share were **HKD 9.79** Consolidated Statement of Profit or Loss Summary | Item | 2024 (Thousand HKD) | 2023 (Thousand HKD) | | :--- | :--- | :--- | | **Continuing Operations** | | | | Revenue | 148,422 | 89,321 | | Gross Profit/(Loss) | 8,864 | (10,952) | | Loss for the Year from Continuing Operations | (3,070) | (91,919) | | **Discontinued Operations** | | | | Profit/(Loss) for the Year from Discontinued Operations | 594,842 | (423,695) | | **Profit/(Loss) for the Year** | **591,772** | **(515,614)** | Earnings/(Loss) Per Share | Item | 2024 (HKD) | 2023 (HKD) | | :--- | :--- | :--- | | Basic Earnings/(Loss) Per Share | 9.79 | (33.18) | | Diluted Earnings/(Loss) Per Share | 9.79 | (33.18) | [Consolidated Statement of Financial Position](index=39&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As at March 31, 2024, the Group's financial position remained severe; despite an increase in total assets, net current liabilities amounted to **HKD 169 million**, and total equity was a negative **HKD 87.53 million**, with major liabilities including bank borrowings, shareholder loans, and financial guarantees for former subsidiaries Consolidated Statement of Financial Position Summary | Item | March 31, 2024 (Thousand HKD) | March 31, 2023 (Thousand HKD) | | :--- | :--- | :--- | | **Total Assets** | **182,410** | **283,288** | | Non-current Assets | 95,337 | 146,449 | | Current Assets | 87,073 | 136,839 | | **Total Liabilities** | **(269,937)** | **(1,077,958)** | | Current Liabilities | 256,444 | 1,058,588 | | Non-current Liabilities | 13,493 | 19,370 | | **Net Current Liabilities** | **(169,371)** | **(921,749)** | | **Total Deficit (Total Equity)** | **(87,527)** | **(794,670)** | [Consolidated Statement of Cash Flows](index=42&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) This year, the Group's operating activities resulted in a net cash outflow of **HKD 69.47 million**, while financing activities generated a net cash inflow of **HKD 96.07 million**, primarily from share issuance proceeds; consequently, cash and cash equivalents increased from **HKD 2.39 million** at the beginning of the year to **HKD 23.86 million** at year-end Consolidated Statement of Cash Flows Summary | Item | 2024 (Thousand HKD) | 2023 (Thousand HKD) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (69,473) | (157) | | Net Cash Generated from Investing Activities | 3,645 | 8,316 | | Net Cash Generated From/(Used In) Financing Activities | 96,068 | (17,113) | | **Net Increase/(Decrease) in Cash and Cash Equivalents** | **30,240** | **(8,954)** | | Cash and Cash Equivalents at Beginning of Year | 2,392 | 10,202 | | **Cash and Cash Equivalents at End of Year** | **23,855** | **2,940** | [Notes to the Consolidated Financial Statements](index=44&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) [Note 1: General Information and Basis of Preparation](index=45&type=section&id=Note%201%3A%20General%20Information%20and%20Basis%20of%20Preparation) This note explains the basis for preparing financial statements on a going concern basis, despite significant uncertainties including continuous losses, high net current liabilities, and bank loan defaults; the Board believes in going concern based on plans like debt restructuring, shareholder loan negotiations, cost control, and sales expansion, but acknowledges risks if these plans fail - The Board acknowledges significant challenges for the Group, including a loss from continuing operations of approximately **HKD 3.07 million** and net current liabilities of approximately **HKD 169 million**[265](index=265&type=chunk) - As at year-end, the Group had approximately **HKD 47.53 million** in bank borrowings that were not repaid on schedule and could be demanded for immediate repayment[242](index=242&type=chunk)[588](index=588&type=chunk) - Management is implementing multiple measures to maintain going concern, including debt restructuring with banks, negotiating shareholder loan extensions with the late former chairman's estate, discussing extended repayment terms with creditors, and improving operating cash flow through product portfolio simplification and enhanced cost control[267](index=267&type=chunk)[268](index=268&type=chunk)[248](index=248&type=chunk)[270](index=270&type=chunk) [Note 4: Financial Risk Management](index=67&type=section&id=Note%204%3A%20Financial%20Risk%20Management) The Group faces market risks (foreign exchange, interest rate), credit risk, and liquidity risk; foreign exchange risk primarily stems from GBP and CAD with limited impact, while interest rate risk arises from floating-rate borrowings; credit risk from bank deposits and trade receivables has led to expected credit loss provisions; the most severe is liquidity risk, with current liabilities significantly exceeding current assets, a negative asset-liability ratio, and reliance on external financing for operations - Liquidity risk is extremely high: the Group has net current liabilities of approximately **HKD 169 million**, and approximately **HKD 47.53 million** in bank borrowings are overdue and subject to immediate repayment demand[927](index=927&type=chunk)[618](index=618&type=chunk) - Capital structure deterioration: the Group is in a net deficit position, with an asset-liability ratio of **-211.66%**, indicating liabilities significantly exceed equity[701](index=701&type=chunk)[700](index=700&type=chunk) - Credit risk management: the Group applies a lifetime expected credit loss model to trade receivables and has made a loss allowance provision of approximately **HKD 6.47 million**[469](index=469&type=chunk)[482](index=482&type=chunk) [Note 6: Revenue and Segment Information](index=83&type=section&id=Note%206%3A%20Revenue%20and%20Segment%20Information) This year, all revenue from the Group's continuing operations, totaling **HKD 148 million**, came from the 'Notebook Computer Products' segment, representing a **66%** year-on-year increase; geographically, Asia was the primary market, contributing over **70%** of revenue, with high customer concentration as the top two clients accounted for over half of the total revenue Revenue by Business Segment (Continuing Operations) | Business Segment | 2024 (Thousand HKD) | 2023 (Thousand HKD) | | :--- | :--- | :--- | | Audio-Visual Products | – | – | | Notebook Computer Products | 148,422 | 89,321 | | **Total** | **148,422** | **89,321** | Revenue by Geographical Region (Continuing Operations) | Geographical Region | 2024 (Thousand HKD) | 2023 (Thousand HKD) | | :--- | :--- | :--- | | Asia | 105,435 | 60,479 | | Europe | 37,998 | 23,695 | | Others | 4,989 | 5,147 | | **Total** | **148,422** | **89,321** | - Customer concentration is high, with sales to Customer A and Customer B accounting for **29%** and **22%** of total revenue, respectively[971](index=971&type=chunk)[990](index=990&type=chunk) [Note 11: Discontinued Operations/Disposal Group Held for Sale](index=88&type=section&id=Note%2011%3A%20Discontinued%20Operations%2FDisposal%20Group%20Held%20for%20Sale) This note details the financial impact of the discontinued Dongguan production line business (disposal group); due to a court-ordered winding-up of subsidiary Akai Electric Company Limited, the Group lost control and deconsolidated it on June 28, 2023, resulting in a gain of approximately **HKD 596 million**, which was the primary reason for the Group's overall profit this year - Due to a creditor's application, the court ordered the winding-up of Akai Electric Company Limited, a direct wholly-owned subsidiary of the Group, on **June 28, 2023**, leading to the Group losing control and deconsolidating it[643](index=643&type=chunk)[977](index=977&type=chunk) Gain Calculation from Deconsolidation of Akai Electric Group | Item | Amount (Thousand HKD) | | :--- | :--- | | Net Liabilities Deconsolidated | 1,900,203 | | Amounts Due from Akai Electric Group | (1,180,785) | | Financial Guarantees Provided | (121,984) | | Foreign Exchange Reserve Released Upon Deconsolidation | (1,044) | | **Gain on Deconsolidation** | **596,390** | - Discontinued operations recorded a profit of **HKD 595 million** this year, compared to a loss of **HKD 424 million** in the same period last year[999](index=999&type=chunk) [Note 40: Events After Reporting Period](index=132&type=section&id=Note%2040%3A%20Events%20After%20Reporting%20Period) Subsequent to the reporting period, Shanghai Commercial Bank Limited filed a winding-up petition against the company in the Hong Kong High Court due to the company's failure to honor loan guarantees for former subsidiary Akai Electric, involving outstanding loan principal and interest, with a hearing scheduled for August 28, 2024 - On **June 21, 2024**, Shanghai Commercial Bank Limited filed a winding-up petition against the company with the court[1044](index=1044&type=chunk)[1051](index=1051&type=chunk) - The petition is based on the company's loan guarantee for former subsidiary Akai Electric, involving outstanding loan principal of **HKD 2.62 million** and **USD 2.52 million**, plus interest[1044](index=1044&type=chunk) [Five-Year Financial Summary](index=132&type=section&id=Five-Year%20Financial%20Summary) [Five-Year Performance and Financial Position](index=133&type=section&id=Five-Year%20Performance%20and%20Financial%20Position) This summary presents the Group's key performance and financial position over the past five fiscal years; data indicates revenue continuously declined after peaking in 2021, while profit/loss attributable to owners of the company fluctuated significantly, showing losses in the last three years, with a profit only in FY2024 due to a one-off gain; total assets consistently shrank, and total liabilities peaked in 2022 and 2023, leading to total equity turning negative (total deficit) since 2022 Five-Year Performance Summary (As at Year Ended March 31) | Item | 2024 (Thousand HKD) | 2023 (Thousand HKD) | 2022 (Thousand HKD) | 2021 (Thousand HKD) | 2020 (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 148,422 | 89,321 | 542,408 | 1,278,686 | 961,246 | | Profit/(Loss) Attributable to Owners of the Company | 600,692 | (510,242) | (594,575) | (360,463) | (599,374) | Five-Year Assets and Liabilities Summary (As at March 31) | Item | 2024 (Thousand HKD) | 2023 (Thousand HKD) | 2022 (Thousand HKD) | 2021 (Thousand HKD) | 2020 (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 182,410 | 283,288 | 833,777 | 1,363,113 | 1,216,024 | | Total Liabilities | (269,937) | (1,077,958) | (1,106,700) | (1,032,927) | (535,104) | | Total Deficit (Equity) | (87,527) | (794,670) | (272,923) | 330,186 | 680,920 |

Financial Performance - For the fiscal year ending March 31, 2024, the company reported revenue of HKD 148.422 million, a significant increase from HKD 89.321 million in the previous year, representing a growth of approximately 66%[4] - The gross profit for the year was HKD 8.864 million, compared to a gross loss of HKD 10.952 million in the previous year, indicating a turnaround in profitability[4] - The company recorded a profit attributable to owners of HKD 600.692 million, a substantial improvement from a loss of HKD 510.242 million in the prior year[6] - Basic earnings per share from continuing operations were HKD 0.10, recovering from a loss of HKD 5.63 in the previous year[6] - The total comprehensive income for the year was HKD 582.997 million, compared to a loss of HKD 528.727 million in the previous year, reflecting a positive shift in overall financial performance[8] - The company reported external sales of HKD 148,422,000 for the year 2024, a significant increase from HKD 89,321,000 in 2023, representing a growth of 66%[28] - The company's operating loss for the year 2024 was HKD 3,070,000, compared to a much larger loss of HKD 91,919,000 in 2023, indicating an improvement in financial performance[28] - Revenue from the Asia region reached HKD 105,435,000 in 2024, up from HKD 60,479,000 in 2023, marking a growth of 74%[29] - The total income from continuing operations for 2024 was HKD 65,007,000, a substantial increase from HKD 11,464,000 in 2023[31] Assets and Liabilities - The company’s non-current assets decreased to HKD 95.337 million from HKD 146.449 million year-over-year, primarily due to changes in property and equipment[10] - Current assets increased significantly to HKD 87.073 million from HKD 53.885 million, driven by a rise in trade receivables[10] - Current liabilities decreased slightly to HKD 256.444 million from HKD 252.216 million, indicating improved liquidity management[10] - The group has outstanding bank loans of approximately HKD 47,528,000 that were due as of March 31, 2024, which remain unpaid[16] - The group's office and investment properties are valued at approximately HKD 120,000,000, which may assist in negotiating loan repayment extensions with banks[17] - Trade payables as of March 31, 2024, are approximately HKD 29,207,000, with plans to negotiate extended repayment terms[20] - The total liabilities included shareholder loans amounting to 38,052,000 HKD in 2024, down from 85,553,000 HKD in 2023[56] - The net liabilities associated with the assets classified as held for sale amount to HKD 1,900,203, while the assets held for sale are valued at HKD 82,954[37] Strategic Direction - The company has terminated its manufacturing business as noted in the financial statements, which may impact future operational strategies[13] - The company plans to focus on the design, manufacturing, and sales of consumer electronic products, including audio products and laptops, as part of its strategic direction moving forward[13] - The group is implementing measures to simplify its product portfolio and production model to enhance cash flow and control costs[21] - The board anticipates an increase in sales volume for laptop products in the coming months compared to the same period last year[21] - The company plans to continue focusing on the design and sales of consumer electronics, including audio and video products, and laptops, as part of its ongoing business strategy[27] - The group aims to explore business collaboration opportunities, including strategic partnerships and product diversification, to enhance competitiveness[67] Financial Challenges - The group reported a loss of approximately HKD 3,070,000 for the year ended March 31, 2024, indicating ongoing financial challenges[76] - As of March 31, 2024, the group's current liabilities net amount was approximately HKD 169,371,000, raising concerns about liquidity[76] - The group failed to repay bank loans totaling approximately HKD 47,528,000 by the due date, which could trigger immediate repayment demands from banks[76] - Cash and bank balances as of March 31, 2024, were only about HKD 23,855,000, highlighting severe cash flow issues[76] - The independent auditor expressed a lack of sufficient appropriate audit evidence to support the group's ability to continue as a going concern[78] - The group is facing significant uncertainties that may impact its ability to continue operations, as highlighted in the auditor's report[76] Impairments and Losses - The company has recognized a loss of HKD 594,842 from discontinued operations for the year ended March 31, 2024[38] - The company reported a net loss from investment properties of HKD 6,887,000 in 2024, compared to a loss of HKD 2,631,000 in 2023[31] - The company has reported a significant impairment loss of HKD 271,588 related to inventory for the year ended March 31, 2023[38] - The company has recognized impairment losses of approximately 3,043,000 HKD for property, plant, and equipment as of March 31, 2023[51] Dividends and Shareholder Information - The company has not declared or proposed any dividends for the years ended March 31, 2024, and March 31, 2023[50] - The company does not recommend the payment of a final dividend for the year ended March 31, 2024, consistent with the previous year[59] Future Outlook - The group expects to have sufficient operating funds to meet its needs for the fiscal year ending March 31, 2025, provided it can execute its plans[21] - The board believes that with the planned measures, the company will have sufficient working capital to meet its needs until March 31, 2025[91] - The effectiveness of the financial statements prepared on a going concern basis depends on the success of the plans and measures outlined[77]

Financial Performance - Revenue for the six months ended September 30, 2023, was HKD 85,686,000, a significant increase of 64.8% compared to HKD 51,977,000 in the same period of 2022[2] - Gross profit for the same period was HKD 4,526,000, recovering from a loss of HKD 1,338,000 in 2022[2] - Operating profit surged to HKD 572,401,000, compared to an operating loss of HKD 44,192,000 in the previous year[2] - The net profit attributable to the owners of the company was HKD 575,354,000, a turnaround from a loss of HKD 48,571,000 in 2022[3] - Total comprehensive income for the period amounted to HKD 557,985,000, compared to a loss of HKD 473,540,000 in the same period last year[5] - The company reported a basic and diluted earnings per share of HKD 14.26, recovering from a loss of HKD 31.72 in the previous year[3] - The company achieved a profit before tax of HKD 572,354,000 for the six months ended September 30, 2023, compared to a loss of HKD 48,571,000 in the same period of 2022[22] - Basic earnings per share for the period were HKD 14.26, a recovery from a loss of HKD 31.72 per share in the previous year[32] - The company reported a significant increase in trade receivables aged 0-30 days, which rose to HKD 19,541,000 from HKD 5,056,000, marking an increase of 286%[45] Cash Flow and Liquidity - Cash and cash equivalents increased significantly to HKD 33,290,000 from HKD 2,392,000 as of March 31, 2023[7] - For the six months ended September 30, 2023, the company reported a net cash outflow from operating activities of HKD 18,498,000, compared to a cash inflow of HKD 18,180,000 in the same period last year[12] - The company generated a net cash inflow from financing activities of HKD 49,396,000, contrasting with a cash outflow of HKD 18,521,000 in the previous year[12] - The cash and cash equivalents increased to HKD 33,290,000 at the end of the period, up from HKD 2,392,000 at the beginning of the period[12] - Cash and deposits amounted to HKD 33 million, with net bank borrowings of HKD 124 million as of September 30, 2023[69] Assets and Liabilities - Current liabilities increased to HKD 387,157,000, compared to HKD 252,216,000 as of March 31, 2023[8] - As of September 30, 2023, the company's total liabilities amounted to approximately HKD 414,000,000, with net liabilities of about HKD 145,000,000, reflecting a significant reduction due to the cancellation of consolidated accounts for discontinued operations[19] - The total liabilities as of September 30, 2023, were HKD 1,794,403,000, with a net debt of HKD 1,794,403,000 after eliminating intercompany receivables[39] - The bank borrowings increased to HKD 157,328,000 as of September 30, 2023, compared to HKD 68,318,000 as of March 31, 2023, reflecting a growth of 130%[50] - The total accounts payable and other payables reached HKD 141,514,000 as of September 30, 2023, up from HKD 96,040,000 as of March 31, 2023, indicating a rise of 47%[47] Strategic Initiatives - The company has implemented various cost-cutting measures to streamline core business activities, which are expected to significantly reduce daily maintenance costs[17] - The company plans to focus on overseas strategic markets while closing operations in underperforming regions, with related applications currently in progress[17] - The company has engaged in discussions with shareholders regarding the extension of shareholder loans, which are crucial for ongoing operations[17] - The company has introduced an OEM/ODM production model, which has positively impacted operational efficiency[17] - The group plans to reduce fixed operating costs across all functions and seek partnerships to share financial burdens[70] - The company aims to explore various commercially viable and profitable opportunities based on past performance[70] Dividends and Shareholder Information - The company did not declare any dividends for the period[3] - The company did not recommend an interim dividend for the six months ended September 30, 2023, consistent with the previous year[34] - The company has a shareholder loan balance of HKD 85,553,000, which is expected to be repaid within one year[51] Compliance and Governance - The company has complied with all applicable code provisions in the Corporate Governance Code as of September 30, 2023[79] - All directors confirmed compliance with the standards of the Model Code for Securities Transactions by Directors as of September 30, 2023[80] - The Audit Committee has reviewed the accounting principles and practices adopted by the group for the six months ended September 30, 2023[81] - The interim report is available for viewing on the Hong Kong Stock Exchange and the company's website[82] - The board consists of two executive directors, one non-executive director, and five independent non-executive directors as of the report date[83] Other Income and Expenses - The company reported a total other income of HKD 613,382,000 for the six months ended September 30, 2023, compared to HKD 5,014,000 in the previous year, showing a substantial increase[24] - Research and development expenses amounted to HKD 12,345,000, reflecting the company's commitment to innovation despite previous losses[22] - Rental income from investment properties decreased to HKD 463,000 from HKD 2,128,000 year-on-year, indicating a decline of approximately 78.2%[24] - The company recorded a loss of HKD 465,691,000 during the period, contributing to a total comprehensive expense of HKD 473,540,000[10] - As of September 30, 2023, the group had total losses of HKD 145 million and a loss per share of HKD 1.82, down from HKD 795 million and HKD 52.22 respectively as of March 31, 2023[69]

Financial Performance - The group's revenue decreased by 84% from HKD 542 million in 2022 to HKD 89 million in 2023[7]. - The net loss attributable to shareholders significantly reduced by 72% from HKD 332 million in the previous year to HKD 92 million in the current year[7]. - The group reported a net loss of approximately HKD 91,919,000 for the year ended March 31, 2023, indicating significant financial challenges[57]. - The total loss for the group as of March 31, 2023, was HKD 795 million, compared to total equity of HKD 273 million in 2022[105]. - The total loss for the year was HKD 515,614,000, compared to HKD 594,594,000 in the previous year, indicating a reduction in overall losses[168]. - The company reported a total loss of HKD 515,614,000 for the year 2023, compared to a loss of HKD 594,594,000 in 2022, indicating a 13.2% improvement in overall loss[173]. - Loss from continuing operations was HKD 86,547,000 in 2023, significantly reduced from HKD 331,659,000 in 2022, reflecting a 73.9% decrease[171]. - Loss from discontinued operations increased to HKD 423,695,000 in 2023 from HKD 262,916,000 in 2022, representing a 60.9% increase[171]. Operational Changes - The group is transitioning from a self-operated contract manufacturing model to a more cost-effective OEM/ODM production model to adapt to changing market demands[9]. - Future strategies include operational optimization through ongoing layoffs, process improvements, and cost control measures[14]. - The group is implementing measures to streamline its product portfolio and enhance cost control to improve gross profit and operating cash flow[196]. - The group has faced significant operational challenges due to rising costs from the US-China trade war and the COVID-19 pandemic, leading to the termination of its production line in Dongguan[75]. Debt and Liquidity Management - The company is focused on debt reduction and has successfully negotiated with creditors to lower its debt burden, establishing a more sustainable capital structure[11]. - As of March 31, 2023, the group's net current liabilities amounted to approximately HKD 921,749,000, including overdue borrowings of about HKD 199,874,000[57]. - The group's cash and bank balances were only approximately HKD 2,940,000 as of March 31, 2023, raising concerns about liquidity[57]. - The group is actively seeking to restore its disrupted cash flow to fulfill all orders and improve sales and revenue[9]. - The group is in discussions with banks for debt restructuring, with total bank borrowings related to the financing agreement amounting to approximately HKD 133.068 million[192]. Corporate Governance - The board consists of two executive directors and three independent non-executive directors, ensuring a diverse governance structure[27]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience to enhance board efficiency[30]. - The independent non-executive directors have confirmed their independence according to the listing rules, ensuring unbiased oversight[28]. - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[25]. - The board is responsible for major business and strategic decisions, as well as monitoring the performance of senior management[31]. Financial Reporting and Compliance - The company has adopted new Hong Kong Financial Reporting Standards effective from April 1, 2022, which include several amendments that do not have a significant impact on financial performance or disclosures[200]. - The independent auditor issued a disclaimer of opinion regarding the financial statements due to uncertainties surrounding the company's ability to continue as a going concern[160]. - The company continues to ensure compliance with the latest accounting standards to maintain transparency and accuracy in financial reporting[200]. - The company has implemented various plans and measures to alleviate liquidity pressure and improve financial conditions[57]. Future Outlook - The company maintains a cautiously optimistic outlook for future growth and profitability opportunities[12]. - The group anticipates an increase in sales volume for laptop products in the coming months, based on existing sales orders as of June 2022[196]. - Capital market financing options, such as rights issues, are being considered to raise funds for strategic investments and future growth plans[14].

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。 （於百慕達註冊成立之有限公司） http://www.alco.com.hk 網址： 328 （股份代號： ） 截至二零二三年三月三十一日止年度 經審核全年業績公告 表現摘要 二零二三年 二零二二年 （經重列） 持續經營業務 89 542 —營業額（港元） 百萬 百萬 87 332 —擁有人應佔虧損（港元） 百萬 百萬 ...

Financial Performance - For the six months ended September 30, 2022, Alco Holdings Limited reported a revenue of HKD 51,977,000, a decrease of 85.3% compared to HKD 353,347,000 in the same period of 2021[2] - The cost of goods sold for the same period was HKD 53,315,000, resulting in a gross loss of HKD 1,338,000, compared to a gross profit of HKD 10,309,000 in 2021[2] - The operating loss for the period was HKD 44,192,000, significantly reduced from HKD 128,776,000 in the previous year[2] - The total comprehensive loss for the period was HKD 473,540,000, compared to HKD 175,912,000 in the same period last year, indicating a substantial increase in losses[6] - The loss attributable to equity holders of the company from continuing operations was HKD 48,571,000, down from HKD 132,827,000 in the previous year[3] - The company reported a loss per share of HKD 64.3 cents for the period, compared to HKD 23.7 cents in the previous year[3] - For the six months ended September 30, 2022, total revenue was HKD 51,977 thousand, a decrease from HKD 353,347 thousand for the same period in 2021[36] - Revenue from Asia for the same period was HKD 40,822 thousand, compared to HKD 244,893 thousand in 2021, indicating a significant decline[36] - The company reported a loss attributable to owners of the company of HKD 48,571 thousand for the six months ended September 30, 2022, compared to a loss of HKD 132,827 thousand in 2021[43] - Basic loss per share for the six months ended September 30, 2022, was HKD (6.7), compared to HKD (18.3) in 2021[43] - The net loss for the period was HKD 49 million, a reduction of approximately 63% compared to a loss of HKD 133 million in the previous year[78] Cash Flow and Assets - For the six months ended September 30, 2022, the net cash generated from operating activities was HKD 18,180,000, a significant improvement compared to a cash outflow of HKD 122,134,000 in the same period of 2021[13] - The net cash used in investing activities was HKD 3,000, compared to a cash outflow of HKD 19,263,000 in the previous year[14] - The net cash used in financing activities was HKD 18,521,000, a decrease from a cash inflow of HKD 75,096,000 in the prior year[15] - The total cash and cash equivalents decreased by HKD 338,000, compared to a decrease of HKD 66,301,000 in the same period last year[16] - As of September 30, 2022, total liabilities amounted to approximately HKD 1,040,000,000, with net liabilities of about HKD 739,000,000[31] - Non-current assets decreased to HKD 164,450,000 as of September 30, 2022, from HKD 264,545,000 as of March 31, 2022[8] - Current liabilities were reported at HKD 1,028,946,000, a decrease from HKD 1,093,552,000 at the end of the previous fiscal year[8] - The company's inventory decreased significantly to HKD 89,024,000 from HKD 353,939,000 in the previous year[8] - As of September 30, 2022, trade payables amounted to HKD 189,912,000, down from HKD 207,553,000 as of March 31, 2022[61] - The total liabilities as of September 30, 2022, were HKD 358,484,000, compared to HKD 348,869,000 as of March 31, 2022[61] - Shareholder loans totaled HKD 432,692,000 as of September 30, 2022, an increase from HKD 401,966,000 as of March 31, 2022[65] Strategic Initiatives - The company has implemented several cost-cutting measures, including the cessation of in-house processing operations and a shift to an OEM/ODM production model, which is expected to significantly reduce daily maintenance costs[28] - The company has established a strategic distribution partnership with Giken Sakata, which will utilize bank financing to open letters of credit and repay suppliers[30] - The company is in discussions with shareholders regarding the extension of shareholder loans, with a total of HKD 74,000,000 in further loans utilized to repay certain borrowings[26] - The company is focusing on overseas strategic markets while closing operations in underperforming regions, with related applications currently in progress[28] - The company ceased operations of its Dongguan production line on August 31, 2022, to reallocate resources to higher growth potential business segments[48] - The company decided to cease sales in the North American market as part of its cost-reduction measures[80] - Significant reductions in production, sales, marketing, administrative, and R&D costs were implemented, leading to a substantial decrease in operating costs compared to the previous year[80] - The group plans to reduce fixed operating costs across all departments to navigate the challenging business environment[84] - The group aims to explore various commercially viable and profitable business opportunities based on past performance[84] Dividends and Shareholder Information - Alco Holdings Limited did not declare any dividends for the period, consistent with the previous year[3] - The company did not recommend any interim dividend for the six months ended September 30, 2022, consistent with the previous year[46] - Major shareholders include Liang Wei Cheng with 9.64% and Webb David Michael with 8.65% of the issued share capital[91] Future Outlook - ALCO HOLDINGS LIMITED reported a revenue of HKD 1.2 billion for the first half of 2022, representing a 15% increase year-over-year[102] - The company achieved a net profit of HKD 300 million, which is a 20% increase compared to the same period last year[102] - User data showed a growth in active users by 25%, reaching a total of 500,000 users[102] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2024[102] - ALCO is investing HKD 50 million in new product development, focusing on sustainable technology solutions[102] - The company has set a revenue guidance of HKD 2.5 billion for the full year 2022, indicating a projected growth of 10%[102] - ALCO's new strategic partnership with a leading tech firm is expected to enhance its product offerings and drive innovation[102] - The company reported a 5% increase in operational efficiency due to recent technological upgrades[102] - ALCO is exploring potential acquisitions to bolster its product portfolio and expand its customer base[102] - The company has developed valuable intellectual property, patents, and trademarks, including the Venturer tablet and Avita laptops, and is actively seeking new business opportunities[80] Other Income and Gains - Total other income and gains for the six months ended September 30, 2022, was HKD 63,997 thousand, significantly higher than HKD 3,497 thousand in 2021[48] - The gross loss margin slightly improved to 2.6%, down from 2.9% in the same period last year, primarily due to a strategic shift to a more cost-effective OEM/ODM production model[77] - The group entered a strategic investment agreement with Jasmy Incorporated to integrate secure IoT technology into its product line[82] - A distribution agreement was signed with Giken Sakata to alleviate cash flow pressure through bank financing[82]

Financial Performance - The Group recorded a 54% decrease in turnover from HK$1,279 million in 2021 to HK$591 million in 2022[21]. - Net loss attributable to shareholders increased by 65% from HK$360 million in 2021 to HK$595 million in 2022[21]. - The company reported a revenue of HKD 591,292,000 for the year ended March 31, 2022, a decrease of 53.7% compared to HKD 1,278,686,000 in the previous year[189]. - The cost of goods sold was HKD 887,290,000, resulting in a gross loss of HKD 295,998,000, compared to a gross loss of HKD 62,308,000 in the prior year[189]. - The total operating expenses, including selling, administrative, and R&D expenses, amounted to HKD 572,046,000, an increase from HKD 351,918,000 in the previous year[189]. - The company incurred a loss before tax of HKD 594,594,000, compared to a loss of HKD 360,639,000 in the previous year, reflecting a significant decline in financial performance[189]. - Basic and diluted loss per share was HKD 82.2, compared to HKD 49.8 in the previous year, indicating a worsening of the company's financial position[189]. - The total comprehensive loss for the year was HKD 603,109,000, compared to HKD 350,734,000 in the previous year, highlighting increased financial challenges[193]. - The company has not provided sufficient evidence to support the cash flow forecasts necessary for a going concern assessment, raising uncertainties about its ability to continue operations[180]. - The independent auditor's report indicated a significant uncertainty regarding the company's ability to continue as a going concern due to its financial position[176]. Impairments and Asset Management - An impairment of HK$198 million was made on aged raw materials due to the cessation of producing certain AV and non-profitable products[23]. - A further impairment provision of HK$29.5 million was made on certain property, plant and equipment, right-of-use assets, intangible assets, and trade and other receivables[23]. - The company has recognized impairment losses on various assets, including property, plant, and equipment, totaling HKD 4,194,000, which reflects ongoing operational difficulties[189]. Operational Challenges - The Group faced operational challenges due to a lack of working capital and the sudden passing of its former chairman, which disrupted business plans[26]. - The demand for laptops surged initially during COVID-19, but the supply chain for critical components was severely disrupted[27]. - The Group began to lay off excess workers and sublet unused factory space due to ongoing sales declines and overcapacity[27]. - The company is exploring different strategies to create more value from its factories, such as leasing or selling production facilities and machinery[29]. - The group is negotiating debt restructuring with banks, with HKD 285,000,000 in bank and other borrowings due within one year, of which approximately HKD 214,359,000 is overdue[86]. Strategic Initiatives - The Group's strategy has shifted focus to developing its own brand notebook business, moving away from traditional OEM/ODM business[22]. - Significant investments in advertising and promotions for AVITA, Nexstgo, and VAIO notebook computers impacted profitability[23]. - The company aims to minimize losses and achieve positive cash flow as quickly as possible[29]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2025[44]. - A strategic acquisition of a local competitor is anticipated to enhance operational capabilities and increase market penetration[44]. - The company has invested HKD 50 million in R&D for new technologies, aiming to improve product efficiency by 30%[44]. Governance and Compliance - The board of directors has approved a new corporate governance policy to enhance accountability and transparency[46]. - The independent non-executive directors have confirmed their independence, ensuring compliance with regulatory requirements[52]. - The audit committee has held two meetings during the year to review the group's financial performance and internal control systems, ensuring compliance and risk management[69]. - The company has established a remuneration committee to review and recommend compensation policies for directors and senior management, ensuring transparency and alignment with company objectives[66]. - The company has adopted a nomination policy outlining the selection criteria and procedures for board candidates, aiming to enhance the board's effectiveness[73]. - All directors confirmed compliance with the trading code for securities transactions as of March 31, 2022, indicating adherence to governance standards[64]. Financial Position and Liquidity - As of March 31, 2022, the group's total liabilities exceeded its current assets, with total liabilities of approximately HKD 524,320,000 and current liabilities of about HKD 272,923,000[82]. - The group reported a net loss of approximately HKD 594,594,000 and a net cash outflow from operating activities of about HKD 138,984,000 for the year ended March 31, 2022[82]. - The company's bank balance and cash were only approximately HKD 10,202,000 as of March 31, 2022, indicating significant liquidity concerns[176]. - The group plans to sell non-current assets to generate cash inflow and alleviate liquidity pressure[91]. - The company will continue to take proactive measures to address its liquidity issues and will announce any significant developments in accordance with listing rules and securities regulations[95]. Employee and Stakeholder Relations - The company recognizes the importance of maintaining good relationships with employees, customers, and suppliers for achieving long-term business goals[120]. - The group employed approximately 625 staff as of March 31, 2022, down from 950 in 2021, with compensation plans based on market terms and individual qualifications[132].

Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 400,152, a decrease of 32.2% compared to HKD 589,759 in 2020[2] - Gross loss for the period was HKD 5,458, improved from a gross loss of HKD 33,587 in the previous year[2] - Operating loss for the six months was HKD 171,864, compared to a loss of HKD 158,254 in the same period last year[2] - Net loss attributable to shareholders was HKD 171,858, compared to HKD 158,031 in 2020, representing an increase of 8.5%[2] - Basic and diluted loss per share was HKD 23.7, compared to HKD 21.9 in the previous year[2] - For the six months ended September 30, 2021, the total revenue was HKD 400,152,000, a decrease of 32.2% compared to HKD 589,759,000 for the same period in 2020[24] - The group reported a loss attributable to shareholders of HKD 171,858,000 for the six months ended September 30, 2021, compared to a loss of HKD 158,031,000 in the same period of 2020[31] - Basic loss per share was HKD 0.237 for the six months ended September 30, 2021, compared to HKD 0.219 for the same period in 2020[33] - For the six months ended September 30, 2021, the group recorded revenue of HKD 400 million, a decrease of 32% compared to HKD 590 million in 2020, and a shareholder loss of HKD 172 million, compared to a loss of HKD 158 million in 2020 after accounting for a one-time gain of HKD 26 million from property sales[62][63] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were HKD 31,848, down from HKD 98,149 at the beginning of the period[13] - Net cash used in operating activities was HKD 122,134, an improvement from HKD 188,930 in the previous year[13] - The group has taken measures to alleviate liquidity pressure and improve financial conditions in response to the potential impacts of COVID-19[18] - The group has a funding commitment from its major shareholder, Mr. Leung, to provide up to HKD 300,000,000 within 18 months from June 25, 2021[18] Assets and Liabilities - Total assets decreased to HKD 997,325 from HKD 1,088,058 at the end of March 2021[5] - Total liabilities as of September 30, 2021, were HKD 403,408,000, compared to HKD 404,903,000 as of March 31, 2021[44] - As of September 30, 2021, total receivables amounted to HKD 378,367,000, a slight decrease from HKD 384,843,000 as of March 31, 2021[38] - The aging analysis of trade receivables shows that overdue amounts over 90 days increased significantly to HKD 167,424,000 from HKD 57,675,000[44] - The company’s bank borrowings secured by properties amounted to HKD 197,126,000 as of September 30, 2021, down from HKD 212,686,000[49] - Shareholder loans totaled HKD 342,582,000 as of September 30, 2021, with a fixed annual interest rate of 4.5%[55] - The company has a capital commitment of HKD 3,330,000 for molds, factories, and machinery as of September 30, 2021[58] Operational Highlights - Research and development expenses remained stable at HKD 34,432, compared to HKD 34,174 in the previous year[2] - Rental income for the six months ended September 30, 2021, was HKD 7,045,000, an increase from HKD 6,140,000 in the same period of 2020[25] - The group’s revenue from North America was HKD 291,698,000 for the six months ended September 30, 2021, compared to HKD 213,312,000 in the same period of 2020, reflecting a significant increase[24] - The group’s management is focused on improving profitability and cash flow through various initiatives, including cost reduction in production processes[19] - The group plans to continue investing in the development and promotion of a wider variety of laptops to capture new price points and markets, responding to the ongoing demand for remote work and learning[69] - The group is developing an all-in-one computer, with plans to launch its first series of products by the end of Q1 2022[69] - The group has invested significantly in automation and robotics at its production facility in Dongguan, China, enhancing its ability to meet diverse customer demands[67] - The group has received numerous inquiries regarding LTE-enabled devices for markets with limited WiFi access, indicating a strategic focus on emerging consumer needs[69] Shareholder Information - As of September 30, 2021, Mr. Liang Wei Cheng holds 76,706,986 shares, representing 10.61% of the company's issued share capital[76] - Major shareholder Mr. Liang Jian Wen (deceased) held 267,812,500 shares, accounting for 37.03% of the company's issued share capital[80] - Shundean Investments Limited, associated with Mr. Liang Jian Wen, also holds 267,812,500 shares, representing 37.03%[80] - Mr. Webb David Michael owns 75,344,884 shares, which is 10.42% of the issued share capital[80] - Mr. Liang Wei Li holds 60,676,464 shares, equating to 8.39% of the company's issued share capital[80] - Preferable Situation Assets Limited, associated with Mr. Webb David Michael, holds 48,080,841 shares, representing 6.65%[80] - The company and its subsidiaries did not purchase, sell, or redeem any shares during the six months ending September 30, 2021[83] Corporate Governance - The company did not declare any dividends for the period[2] - The company did not recommend any interim dividend for the six months ended September 30, 2021, consistent with the previous year[35] - The company has complied with all applicable corporate governance codes, except for the separation of the roles of Chairman and CEO[84] - The audit committee, composed of three independent non-executive directors, reviewed the financial statements for the six months ending September 30, 2021[86] - The interim report is available on the Hong Kong Stock Exchange and the company's website[87]

Financial Performance - The company reported a revenue increase of 33% from HKD 961 million in 2020 to HKD 1,279 million in 2021, driven by high demand for laptops [26]. - The net loss attributable to shareholders decreased by 40% from HKD 599 million in 2020 to HKD 360 million in 2021 [26]. - The company reported a total revenue of HKD 1.2 billion for the fiscal year ending March 31, 2021, representing a year-on-year increase of 15% [50]. - The company has projected a revenue growth of 10% for the upcoming fiscal year, targeting HKD 1.32 billion [50]. - New product launches are expected to contribute an additional HKD 200 million in revenue, with a focus on smart home devices [50]. Operational Efficiency - Administrative expenses were reduced by approximately 22% to HKD 114 million due to business streamlining and cost-saving measures [28]. - The company’s operational strategies included a shift to online meetings and reduced participation in exhibitions, contributing to lower administrative costs [28]. - The group has invested in automation and robotics to reduce reliance on additional labor, while also expanding production capabilities to meet the geometric growth in laptop production [33]. - The production facilities have been upgraded with new equipment to adapt quickly to market demands for different laptop specifications [38]. - The company has implemented measures to improve operational efficiency and reduce resource consumption, including the installation of energy-efficient equipment [119]. Market Demand and Product Development - The demand for laptops and tablets surged dramatically due to COVID-19, with laptop sales reaching nearly 250,000 units for the fiscal year ending March 31, 2021, marking a tenfold increase in sales in markets like India [31]. - The group anticipates that the strong demand for laptops and tablets will continue into 2021 and possibly 2022, driven by ongoing remote work trends [36]. - The group plans to develop and promote a wider variety of laptops and tablets to capture new consumers and market segments [36]. - The group aims to produce laptops and tablets in quantities that could soon reach seven figures annually [38]. Supply Chain and Component Challenges - The company faced challenges in fulfilling orders due to component shortages, which affected both revenue and profitability [26]. - The group has solidified its supply chain resources in Hong Kong, Shenzhen, and Taiwan to address the global shortage of key electronic components [30]. - The gross margin was impacted by the global shortage of electronic components, leading to higher costs for certain laptop models [26]. Corporate Governance and Compliance - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules, confirming compliance for the past twelve months [65]. - The company has established a shareholder communication policy to facilitate inquiries and feedback from shareholders and potential investors [90]. - The company has confirmed that there are no significant uncertainties affecting its ability to continue as a going concern [79]. - The company maintains a strong commitment to corporate governance to ensure effective resource allocation and protect shareholder interests [92]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report covers the company's performance in environmental, social, and governance aspects for the fiscal year ending March 31, 2021 [98]. - The company has implemented internal guidelines to improve resource consumption efficiency and reduce waste generation [111]. - The company emphasizes corporate social responsibility as a key aspect of its operations, balancing stakeholder interests [102]. - The company has established a dedicated environmental management committee to oversee environmental protection efforts [104]. - The company actively engages stakeholders, including investors and employees, to assess and improve its ESG performance [103]. Employee and Workforce Management - As of March 31, 2021, the total number of employees was 946, a decrease from 961 in 2020 [144]. - The employee turnover rate was noted to be high, particularly among younger employees who prefer more flexible job options [145]. - The company provides annual discretionary bonuses to recognize hardworking employees [144]. - Employee participation in training decreased to 670 in 2021 from 723 in 2020, representing a decline from 75.2% to 71% of total employees [160]. - The company has organized and funded various internal and external training programs to enhance employee skills and knowledge, including a minimum of 32 hours of annual training for factory employees [163]. Community Engagement and Social Responsibility - The group participated in community activities such as blood donation and youth volunteer activities, and employed 20 individuals from the local community [182]. - The group is committed to corporate social responsibility and aims to strengthen relationships with the community through various initiatives [182].

Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 589,759,000, an increase of 27.6% compared to HKD 462,113,000 in 2019[2] - Gross loss for the same period was HKD 76,972,000, improved from a gross loss of HKD 89,904,000 in 2019[2] - Operating loss decreased to HKD 152,898,000 from HKD 208,506,000 year-over-year, reflecting a reduction of 26.7%[2] - Net loss attributable to shareholders was HKD 158,031,000, compared to HKD 216,786,000 in the previous year, marking a 27.1% improvement[2] - The basic loss per share for the six months ended September 30, 2020, was HKD 21.9 cents, an improvement from HKD 30.0 cents in the same period last year[42] - The diluted loss per share is the same as the basic loss per share, as there were no potential dilutive ordinary shares as of September 30, 2020[43] - The net loss was reduced to HKD 158 million, down from a loss of HKD 217 million in the previous year, partly due to a revaluation gain of HKD 26 million from the sale of land[72] Cash Flow and Liquidity - Cash and cash equivalents decreased to HKD 85,509,000 from HKD 104,481,000, a decline of 18.2%[6] - The company reported a net cash outflow from operating activities of HKD 188,930,000, an improvement from HKD 339,146,000 in the previous year[13] - As of September 30, 2020, cash and cash equivalents amounted to HKD 85,509,000, a decrease from HKD 102,455,000 compared to the previous period[18] - The group had cash and deposits of HKD 86 million, with net bank borrowings of HKD 180 million, compared to net borrowings of HKD 53 million on March 31, 2020[84] Assets and Liabilities - Total assets as of September 30, 2020, were HKD 1,289,855,000, compared to HKD 897,523,000 at the end of March 2020, an increase of 43.6%[6] - Inventory increased significantly to HKD 745,090,000 from HKD 336,572,000, representing a 121.1% rise[6] - Non-current prepayments, deposits, and other receivables decreased from HKD 59,932,000 as of March 31, 2020, to HKD 47,546,000 as of September 30, 2020, after accounting for loss provisions[47] - Trade receivables net amount increased from HKD 387,052,000 as of March 31, 2020, to HKD 399,534,000 as of September 30, 2020[47] - Total bank borrowings increased from HKD 157,370,000 as of March 31, 2020, to HKD 266,082,000 as of September 30, 2020[57] - Shareholder loans increased from HKD 161,200,000 as of March 31, 2020, to HKD 244,200,000 as of September 30, 2020[63] - The aging analysis of trade receivables showed that amounts overdue by over 90 days decreased from HKD 126,752,000 as of March 31, 2020, to HKD 33,536,000 as of September 30, 2020[53] Revenue Breakdown - Revenue from North America was HKD 347,620,000, down 2.0% from HKD 355,319,000 in the previous year, while revenue from Asia surged to HKD 213,312,000, up 117.5% from HKD 97,919,000[32] - The group recorded a revenue of HKD 590 million for the six months ended September 30, 2020, representing a 28% increase compared to HKD 462.2 million in the same period last year[71] - The sales revenue from laptop products increased by over 139%, while audio-visual product revenue remained stable[71] Operational Challenges and Strategies - The group faced significant challenges due to supply chain disruptions and increased costs for key components, impacting profitability[78] - Management is implementing measures to improve profitability and cash flow, including optimizing procurement plans and negotiating rental concessions to mitigate COVID-19 impacts[27] - The group plans to increase product prices by approximately 20% to 30% starting in October to offset higher component costs[79] - The strong demand for laptops and tablets is expected to continue into 2021 and 2022, as remote work and learning become more prevalent[79] Future Outlook and Development - The company expects to receive approximately HKD 36,480,000 from a property sale, which will be used for general working capital[26] - New product development includes a smart furniture product line that integrates audio, video, and wireless communication functions, set to launch in 2021[81] - The group plans to continue investing in the development of various types of laptops and tablets to capture the growing demand driven by remote work trends[82] - The group has received increasing inquiries for OEM/ODM orders for laptops, reflecting confidence in the quality and reliability of its manufacturing capabilities[81] Corporate Governance - The audit committee has reviewed the group's accounting principles and internal controls for the six months ending September 30, 2020[98] - The board of directors consists of three executive directors and three independent non-executive directors as of the report date[100]