Financial Performance - Revenue for the year ended 31 March 2025 decreased to HK$89,324,000, down 26.8% from HK$121,953,000 in 2024[3] - Profit for the year was HK$69,745,000, a decline of 18.6% compared to HK$85,709,000 in the previous year[4] - Basic earnings per share decreased to HK2.59 cents, down from HK3.2 cents in 2024, representing a reduction of 19.1%[4] - Proposed final dividend is HK$40,235,000, which is a decrease of 25.1% from HK$53,646,000 in the prior year[4] - Total comprehensive income for the year was HK$109,810,000, an increase of 33.3% from HK$82,426,000 in 2024[6] - Total revenue for the year was HK$89,324,000 in 2025, down from HK$121,953,000 in 2024, indicating a decrease of approximately 26.7%[41] - Profit before taxation for the Group was HK$71,153,000 in 2025, down from HK$92,754,000 in 2024, a decrease of 23.3%[45] - The Group recorded a profit of approximately HK$69.7 million for the financial year 2025, an 18.63% decrease compared to HK$85.7 million in the previous year[110] Revenue Breakdown - Total revenue from contracts with customers increased to HK$9,251,000 in 2025 from HK$7,214,000 in 2024, representing a growth of approximately 28.3%[40] - Revenue from broking services rose to HK$7,394,000 in 2025, up from HK$5,228,000 in 2024, marking an increase of about 41.5%[41] - Revenue from corporate finance decreased to HK$299,000 in 2025 from HK$392,000 in 2024, a decline of approximately 23.7%[41] - Asset management fees increased slightly to HK$1,531,000 in 2025 from HK$1,479,000 in 2024, reflecting a growth of about 3.5%[41] - Financing revenue from money lending significantly decreased to HK$29,946,000 in 2025 from HK$61,995,000 in 2024, a drop of about 51.6%[41] - Segment revenue for Broking increased to HK$7,394,000 in 2025 from HK$5,228,000 in 2024, representing a growth of 41.5%[44] - Financing segment revenue decreased significantly to HK$45,083,000 in 2025 from HK$79,713,000 in 2024, a decline of 43.4%[44] - Corporate finance segment revenue fell to HK$299,000 in 2025 from HK$392,000 in 2024, a decrease of 23.7%[44] Assets and Liabilities - Net assets increased to HK$2,846,790,000, up 2.0% from HK$2,790,284,000 in 2024[7] - Cash and cash equivalents increased to HK$355,590,000, up from HK$307,555,000 in 2024, indicating a growth of 15.6%[7] - Trade receivables decreased to HK$40,085,000 from HK$54,016,000, a decline of 25.7%[7] - The Group's total assets decreased from HK$783,049,000 in 2024 to HK$581,755,000 in 2025[68] - The Group's total liabilities and equity are not explicitly detailed in the provided content, but the financial performance indicates a focus on managing receivables and credit losses effectively[68] - The Group's borrowings decreased to approximately HK$110.8 million from approximately HK$116.2 million as of March 31, 2024, resulting in a gearing ratio of approximately 3.89% compared to 4.17% in the previous year[150] Expenses and Costs - Administrative and other operating expenses rose to HK$29,034,000, compared to HK$27,781,000 in the previous year, reflecting an increase of 4.5%[4] - The Group's administrative and other operating expenses for the fiscal year were approximately HK$29.0 million, an increase of about HK$1.2 million, with administrative expenses accounting for approximately 32.5% of revenue[143] - Financing costs increased to HK$6,478,000 in 2025 from HK$5,357,000 in 2024, an increase of 20.9%[48] Economic Environment - The overall GDP growth in Hong Kong was 2.5% in Q4 2024, slowing to 2.2% in Q1 2025, indicating a slow economic recovery[113] - The trade sector in Hong Kong remains weak, particularly affected by slower growth in Mainland China, which has reduced export demand[114] - The residential and commercial property markets in Hong Kong remained subdued, with low transaction volumes despite some easing of mortgage measures[115] - The economic outlook for Hong Kong remains challenging due to global economic slowdown, high interest rates, and geopolitical uncertainties, impacting growth prospects[144] Corporate Governance - The Company has complied with all code provisions set out in the Code on Corporate Governance Practices, except for the service term of non-executive directors, which does not have a specific term[183] - The audit committee consists of three independent non-executive directors and has reviewed the financial reporting process and internal control systems for the year ended 31 March 2025[172] - The Group's remuneration policy is based on industry practices, market remuneration, and individual performance, with discretionary bonuses granted based on the Group's performance[169] Investment Properties - The fair value of investment properties increased to HK$2,014,900,000 in 2025 from HK$1,929,400,000 in 2024, reflecting a net increase in fair value of HK$37,176,000[63] - The fair value of the Group's investment properties was approximately HK$1,506.8 million as of March 31, 2025, compared to approximately HK$1,488.4 million in 2024[157] Future Outlook - The Group anticipates that the application of new HKFRS Accounting Standards will have no material impact on the consolidated financial statements in the foreseeable future[33] - The Directors have a reasonable expectation that the Group has adequate resources to continue operational existence for the foreseeable future[35] - The Group plans to continue adopting a prudent investment policy to seize attractive market opportunities while optimizing diversification and flexibility[147]

Financial Performance - Revenue for the six months ended September 30, 2024, was HK$49,448,000, a decrease of 26.8% compared to HK$67,520,000 for the same period in 2023[5] - Profit for the period was HK$27,985,000, down 47.4% from HK$53,165,000 in the previous year[5] - Total comprehensive income for the period was HK$28,691, down from HK$49,380 in the previous year, reflecting a decrease of 42.0%[37] - Basic earnings per share decreased to 1.04 HK cents from 1.98 HK cents year-on-year[5] - The Group's profit before taxation for the six months ended September 30, 2023, was HK$57,987,000, compared to HK$30,534,000 for the same period in 2024[160] Revenue Breakdown - The Group's total revenue for the six months ended September 30, 2024 was HK$4,197,000, an increase of 12.6% compared to HK$3,727,000 for the same period in 2023[112] - Revenue from broking increased to HK$3,409,000, up 14.4% from HK$2,979,000 in the previous year[131] - Revenue from assets management rose to HK$774,000, reflecting an increase of 15.9% from HK$668,000 in 2023[131] - Revenue from precious metal trading significantly decreased to HK$14,000, down 82.5% from HK$80,000 in the prior year[131] - Financing revenue, including margin clients and money lending, totaled HK$26,070,000, a decline of 42.6% from HK$45,390,000 in the previous year[131] Expenses and Financial Position - Administrative and other operating expenses increased to HK$14,653,000 from HK$13,080,000, reflecting a rise of 12%[5] - Cash and cash equivalents increased to HK$398,210,000 from HK$307,555,000, representing a growth of 29.5%[15] - Net current assets as of 30 September 2024 were HK$606,998, a decrease from HK$759,112 as of 31 March 2024, indicating a decline of 20.0%[40] - Total equity as of 30 September 2024 was HK$2,765,498, down from HK$2,790,284 as of 31 March 2024, representing a decrease of 0.9%[40] - The company reported a net cash used in financing activities of HK$27,371 for the six months ended 30 September 2024, compared to HK$118,633 in the previous year, indicating a significant reduction in financing outflows[43] Assets and Investments - Investment properties valued at HK$1,939,787,000 as of September 30, 2024, compared to HK$1,929,400,000 as of March 31, 2024[15] - The total non-current assets amounted to HK$2,158,710,000 as of September 30, 2024, compared to HK$2,031,382,000 as of March 31, 2024[15] - The Group's total loan receivables, net of allowance for credit loss, decreased to HK$534,319,000 from HK$603,097,000, reflecting a decline of approximately 11.4%[200] - The allowance for credit loss for trade receivables is HK$135,847,000, compared to HK$123,869,000, indicating an increase in provisions for potential credit losses[200] - The Group's investment properties' fair value at the end of the period is HK$1,939,787,000, up from HK$1,929,400,000, showing a net increase in fair value recognized in the consolidated income statement[199] Governance and Compliance - The Company has complied with the applicable code provisions set out in the Code on Corporate Governance Practices, except for the absence of formal letters of appointment for all directors[70] - The Company has adopted the Model Code for Securities Transactions by Directors and all directors have confirmed compliance with the required standards[75] - The audit committee reviewed the Group's unaudited condensed consolidated financial statements for the six months ended 30 September 2024, ensuring compliance with applicable accounting standards and adequate disclosures[80] - The Board of Directors consists of a mix of executive and independent non-executive directors, ensuring diverse oversight and governance[96] - The Company is principally engaged in investment holding and its subsidiaries provide a wide range of financial services including securities broking and corporate finance advisory[45] Market and Operational Insights - The Group's operations are primarily located in Hong Kong, Macau, and the People's Republic of China, with administrative functions conducted in Hong Kong[143] - The Group reported a significant decrease in revenue from Hong Kong, which was HK$31,771,000 compared to HK$48,895,000 in the previous year, representing a decline of 35%[144] - Macau revenue was HK$17,677,000, slightly down from HK$18,625,000, indicating a decrease of 5.1%[144] - The Group has no assessable profits arising in Macau for the periods ended September 30, 2024, and September 30, 2023[153] - The Group's reportable segments include broking, asset management, and real estate investment, among others, indicating a diversified business model[123]

Financial Performance - Revenue for the six months ended 30 September 2024 decreased to HK$49,448,000, down 26.8% from HK$67,520,000 in 2023[3] - Profit for the period was HK$27,985,000, a decline of 47.4% compared to HK$53,165,000 in the previous year[3] - Basic earnings per share dropped to HK1.04 cents, down from HK1.98 cents in 2023, reflecting a 47.5% decrease[3] - Total comprehensive income for the period was HK$28,691,000, down 42.0% from HK$49,380,000 in 2023[11] - The profit before taxation for the six months ended September 30, 2024, was HK$30,534,000, down from HK$57,987,000 in 2023, a decrease of 47.4%[52] - For the six months ended September 30, 2024, the Group recorded revenue of approximately HK$49 million, a decrease of approximately 26.7% compared to the previous financial period[124] - The profit for the same period was approximately HK$28 million, representing a decrease of 47.3% compared to the prior period[124] Revenue Breakdown - For the six months ended 30 September 2024, total revenue from contracts with customers was HK$4,197,000, an increase from HK$3,727,000 in the same period of 2023, representing a growth of approximately 12.6%[41] - Commission and brokerage income from securities broking increased to HK$2,674,000 from HK$2,005,000, reflecting a growth of approximately 33.4%[42] - Management and handling fees rose to HK$612,000 from HK$525,000, marking an increase of about 16.6%[42] - Investment management fees in asset management increased to HK$774,000 from HK$668,000, which is an increase of approximately 15.9%[42] - Revenue from broking increased to HK$3,409,000 in 2024 from HK$2,979,000 in 2023, representing a growth of 14.4%[52] - Financing segment revenue decreased significantly to HK$26,070,000 in 2024 from HK$45,390,000 in 2023, a decline of 42.5%[52] - Properties investment revenue rose to HK$19,181,000 in 2024, compared to HK$18,403,000 in 2023, marking an increase of 4.2%[52] - Revenue from precious metal trading services decreased to HK$14,000 from HK$80,000, indicating a decline of approximately 82.5%[43] Expenses and Costs - Administrative and other operating expenses increased to HK$14,653,000 from HK$13,080,000, reflecting a rise of 12.0%[6] - Finance costs increased to HK$3,380,000 from HK$2,543,000, marking a 33.0% increase[6] - Staff costs for the six months ended September 30, 2024, were HK$6,197,000, down from HK$7,017,000 in 2023, a reduction of 11.7%[60] - Administrative and operating expenses amounted to approximately HK$14.7 million, accounting for approximately 29.6% of the Group's revenue, up from 19.4% as of 30 September 2023[145] Assets and Liabilities - As of 30 September 2024, net assets were HK$2,765,498,000, a decrease from HK$2,790,284,000 as of 31 March 2024[15] - Cash and cash equivalents increased to HK$398,210,000 from HK$307,555,000, representing a growth of 29.5%[15] - Non-current assets as of September 30, 2024, totaled HK$1,980,623,000, an increase from HK$1,970,470,000 as of March 31, 2024[57] - The Group's total trade receivables, net of allowance for credit loss, increased to HK$54,973,000 as of 30 September 2024, compared to HK$42,995,000 as of 31 March 2024[78] - Margin client receivables after expected credit loss are approximately HK$23,745,000 as of 30 September 2024, down from HK$28,214,000 as of 31 March 2024[80] - The Group's interest-bearing loan receivables, net of allowance for credit loss, decreased to HK$534,319,000 as of 30 September 2024, down from HK$603,097,000 as of 31 March 2024[78] - The Group's total deposits as of 30 September 2024 are HK$953,000, compared to HK$946,000 as of 31 March 2024[78] Dividends - The company did not declare any interim dividend for the period, consistent with the previous year[6] - The total amount of interim dividend declared and paid was approximately HK$53,646,000, consistent with the previous year[118] - The Board resolved not to propose any interim dividend for the six months ended September 30, 2024[119] Governance and Compliance - The company has established both a remuneration committee and a nomination committee to oversee its governance practices[188][189] - The company has complied with the corporate governance code as per the Listing Rules, with the exception of the absence of formal appointment letters for directors[197] - All directors have confirmed compliance with the Model Code for Securities Transactions throughout the reporting period[199] - The audit committee reviewed the Group's unaudited condensed consolidated financial statements for the six months ended September 30, 2024, and found compliance with applicable accounting standards[182] Economic Outlook - The geopolitical situation and economic adjustments in Hong Kong are expected to create both opportunities and challenges for the Group moving forward[132] - The economy is expected to steadily improve in the second half of 2024, with anticipated benefits from pro-growth measures by the government[146] - The signing of the Regional Comprehensive Economic Partnership Agreement is expected to enhance regional economic integration, benefiting Hong Kong's economy[153]

ANNUAL REPORT CONTENTS Annual Report 2024 年報 二零二四 年 報 目 錄 Upbest Group JO No: 85715(N) (SC: 0335) (Client) 00 Upbest Cover P.1 1st Proof / 13 July 2024 / 13/07/24 05:12:45 File Path: J:\Upbest AR 85715(N)\00 Upbest Cover | AW 78 UPBEST GROUP LIMITED ( 美建集團有限公司 ) Annual Report 2024 年報 79 主題範疇、層面、一般披露及關鍵績效指標(KPIs) 章節 頁次 80 UPBEST GROUP LIMITED ( 美建集團有限公司 ) | --- | --- | --- | --- | |----------------------|--------------------------------------------------------------------------------------------------------| ...

UPBEST GROUP LIMITED 美建集團有限公司* (Incorporated in Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) (Stock Code 股份代號: 335) | --- | --- | --- | --- | |----------------------------------------------------------------------------------------|------------------|---------------------------------------------|----------------------| | ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 MARCH 2024 \nANNUAL RESULTS HIGHLIGHTS | 年度業績摘要 | 截至二零二四年三月三十一日止年度 之業績公佈 | | | | | 2024 | 2023 | | | | HK$'000 千港元 | HK$'000 千港元 | | ...

Financial Performance - For the six months ended September 30, 2023, the Group reported a profit of HK$53,165,000, compared to HK$38,603,000 for the same period in 2022, representing an increase of approximately 37.7%[29] - Total comprehensive income for the period was HK$49,380,000, up from HK$32,459,000 in the previous year, indicating a growth of about 52.1%[29] - Earnings per share for the period increased to HK$1.98 from HK$1.43, reflecting a growth of approximately 38.6%[11] - The Group's profit before taxation for the six months ended September 30, 2023, was HK$57,987,000, up from HK$43,619,000 in the same period of 2022, marking an increase of approximately 33%[91] - The profit attributable to owners of the Company for the period is approximately HK$53,170,000, compared to HK$38,459,000 for the same period in 2022, representing a year-on-year increase of 38.4%[170] Revenue Breakdown - Total revenue from contracts with customers for the six months ended 30 September 2023 was HK$3,727,000, a decrease of 12% compared to HK$4,235,000 for the same period in 2022[70] - Revenue from securities broking and futures broking was HK$2,005,000, down from HK$2,182,000, representing a decline of 8%[68] - Assets management investment management fee decreased to HK$668,000 from HK$746,000, reflecting a reduction of 10%[68] - Revenue from precious metals trading services fee dropped significantly to HK$80,000 from HK$231,000, a decline of 65%[68] - Corporate finance advisory fee was not recorded in the current period, compared to HK$152,000 in the previous period[68] - Total revenue from financing activities increased to HK$67,520,000, up from HK$59,642,000, marking an increase of 13%[73] - Margin clients revenue decreased to HK$2,450,000 from HK$3,077,000, a decline of 20%[73] - Money lending revenue increased slightly to HK$36,371,000 from HK$35,223,000, an increase of 3%[73] - Financial institutions and other sources revenue rose significantly to HK$6,569,000 from HK$1,824,000, an increase of 261%[73] - For the six months ended September 30, 2023, the Group reported segment revenue for Financing at HK$47,237,000, an increase from HK$33,153,000 in the same period of 2022, representing a growth of approximately 42%[91] - The Properties investment segment generated revenue of HK$15,404,000 for the six months ended September 30, 2023, compared to HK$12,170,000 in the previous year, reflecting a growth of about 27%[91] Cash Flow and Equity - The Group's net cash from operating activities was HK$61,151,000 for the six months ended September 30, 2023, compared to HK$70,242,000 in the previous year[37] - As of September 30, 2023, the Group's total equity was HK$2,757,055,000, slightly down from HK$2,761,140,000 as of the same date in 2022[18] - The Group's cash used in financing activities was HK$57,487,000 for the six months ended September 30, 2023, compared to cash inflow of HK$2,839,000 in the same period of 2022[22] Staffing and Employee Costs - Employee costs for the six months ended September 30, 2023, totaled approximately HK$7.02 million, accounting for 10.4% of the Group's revenue, compared to 11.8% in the same period of 2022[2] - The Group employed approximately 39 staff as of September 30, 2023, a decrease from 41 employees as of September 30, 2022[2] - The Group's total staff costs for the six months ended 30 September 2023 were HK$7,017,000, slightly down from HK$7,040,000 in the same period of 2022[137] Investments and Acquisitions - The Group did not have any plans for material investment in capital assets aside from what was disclosed in the report[95] - No significant acquisitions or disposals were made by the Group during the six months ended September 30, 2023[98] - There were no material acquisitions or disposals of subsidiaries and affiliated companies during the six months ended September 30, 2023[121] Tax and Financial Obligations - The Group recognized tax losses of approximately HK$64,483,000 available for offsetting against future taxable profits as of 30 September 2023[155] - The Group has recognized tax losses of approximately HK$64,483,000, which can be carried forward indefinitely[174] - The Group's financial statements have been prepared on a going concern basis, indicating confidence in meeting financial obligations[2] Board and Governance - There were changes in the Board of Directors, with Mr. Mo Guiheng resigning as an executive director effective August 24, 2023[116] - The interests of directors and chief executives in shares and debentures were disclosed as required by the SFO[106] - The Company maintains compliance with the Model Code for Securities Transactions by Directors of Listed Companies[107] Market and Operational Insights - The Group's revenue from external customers by geographical market is primarily derived from Hong Kong, Macau, and the People's Republic of China[144] - The Group's operating segments include broking, assets management, and properties investment, with significant contributions from each segment[144] - The report does not indicate any new product or technology developments during the reporting period[120] Loan and Credit Management - The total loans receivables, after expected credit loss (ECL), amounted to HK$640,514,000 as of 30 September 2023[161] - The repayment period for loans ranges from 3 months to 30 years, with interest rates assessed on a case-by-case basis[163] - The Group has established a Credit Committee to oversee credit and lending strategies, comprising two executive directors and members from compliance and accounting departments[165] - The interest on bank borrowings for the six months ended 30 September 2023 was HK$2,543,000, slightly up from HK$2,442,000 in the previous period[168] - The Group's loans receivables include corporate structured loans with an interest rate of 18% and mortgage loans with rates ranging from 5.25% to 24%[163] - The loan receivables on demand were HK$341,472,000, down from HK$365,206,000[193] - The loan receivables within one year increased to HK$356,172,000 from HK$303,901,000[193] - The loan receivables in more than one year but not more than two years decreased significantly to HK$2,980,000 from HK$42,171,000[193] - The loan receivables in more than two years but not more than five years increased to HK$8,915,000 from HK$7,902,000[193] - The loan receivables in more than five years slightly decreased to HK$38,307,000 from HK$39,498,000[193]

Financial Performance - Revenue for the six months ended September 30, 2023, was HK$67,520,000, representing an increase of 13.5% from HK$59,642,000 in the same period of 2022[24] - Profit for the period increased to HK$53,165,000, up 37.7% from HK$38,603,000 in the previous year[4] - Basic earnings per share rose to HK1.98 cents, compared to HK1.43 cents for the same period last year, reflecting a growth of 38.5%[2] - The comprehensive income attributable to owners of the Company for the period was HK$49,380,000, up from HK$32,459,000 in the previous year, representing a growth of 52.1%[32] - The Group reported a profit before taxation of HK$57,987,000 for the six months ended September 30, 2023, compared to HK$43,619,000 for the same period in 2022, indicating a growth of around 32.9%[71] Revenue Breakdown - The Company reported a decrease in broking revenue to HK$2,979,000 from HK$3,106,000, a decline of 4.1% year-over-year[46] - Revenue from properties investment leases increased to HK$18,403,000, up 20.5% from HK$15,283,000 in the prior year[46] - Financing interest from margin clients decreased to HK$2,450,000, down 20.4% from HK$3,077,000 in the previous year[46] - Financing segment revenue increased to HK$45,390,000, up from HK$40,124,000, reflecting a growth of about 13.3% year-over-year[71] - Properties investment segment revenue rose to HK$18,403,000, compared to HK$15,283,000 in the previous year, marking an increase of approximately 20.5%[71] Assets and Liabilities - Net assets as of September 30, 2023, were HK$2,757,055,000, slightly down from HK$2,761,140,000 as of March 31, 2023[5] - The total equity attributable to owners of the Company as of September 30, 2023, was HK$2,758,389,000, slightly down from HK$2,762,469,000 as of March 31, 2023[34] - The Company’s reserves decreased to HK$2,731,565,000 from HK$2,735,645,000, reflecting a reduction of 0.15%[34] - The Group's non-current assets as of September 30, 2023, were valued at HK$1,743,124,000, slightly down from HK$1,749,916,000 as of March 31, 2023[73] - The Group's total assets as of September 30, 2023, were HK$817,990,000, compared to HK$825,908,000 at the end of March 2023[84] Cash Flow and Liquidity - Cash and cash equivalents stood at HK$398,513,000, down from HK$459,327,000, a decrease of 13.2%[10] - The Group had bank balances and cash of approximately HK$398.5 million as of September 30, 2023, down from HK$459.3 million as of March 31, 2023[175] - The Group's cash at banks was HK$41,960,000 as of September 30, 2023, down from HK$48,500,000 as of March 31, 2023[126] - Secured bank loans amounted to HK$48,792,000 as of September 30, 2023, down from HK$138,715,000 as of March 31, 2023[154] Dividends and Shareholder Returns - The company did not declare any interim dividend for the period, consistent with the previous year[7] - The company declared an interim dividend of HK$0.02 per share, with a total payout of approximately HK$53,646,000, unchanged from the previous year[140] Economic Environment - The economic environment remains complex, with global economic growth slowing and demand declining due to high inflation and interest rates[141] - The Hong Kong economy has shown signs of recovery, with economic activity improving compared to the previous year, although the recovery foundation is still unstable[142] - The economic outlook for the second half of 2023 is cautiously optimistic, with expectations of steady improvement in the economy of Mainland China and Hong Kong[172] Credit and Risk Management - The Company is closely monitoring credit risk and has implemented regular reviews of collateral values to minimize exposure[148] - The aging analysis of receivables is prepared monthly to minimize credit risk associated with debtors[120] - The Credit Committee meets weekly to monitor loan recoverability and collateral value, reporting regularly to the Board[121] Operational Highlights - The Group's guarantees to financial institutions in respect of facilities granted to subsidiaries amounted to HK$452.0 million as of September 30, 2023[182] - The Group has complied with all covenants throughout the reporting period[129] - The Group recognized tax losses of approximately HK$64,483,000 available for offsetting against future taxable profits, slightly down from HK$64,486,000[77]

Financial Performance - The financing segment recorded revenue of approximately HK$75.9 million, a decrease of approximately HK$8.7 million or 10.3% compared to the previous year[10]. - The segment results for the financing segment were approximately HK$11.4 million, net of impairment loss[10]. - The Group recorded a profit of approximately HK$100.2 million for the financial year 2023, representing a 15.2% increase compared to HK$87.0 million in the previous year[35]. - Revenue decreased by approximately HK$12.1 million, a decline of around 9.5%, from approximately HK$127.0 million in the previous year[35]. - The company's revenue for the year ended March 31, 2023, was HK$114,961,000, a decrease of 9.1% from HK$127,011,000 in 2022[132]. - Profit before taxation increased to HK$107,106,000, up 9.0% from HK$97,450,000 in the previous year[132]. - Profit attributable to owners of the company for the year was HK$100,310,000, representing a significant increase of 15.2% compared to HK$87,036,000 in 2022[132]. - Total assets as of March 31, 2023, were HK$3,047,106,000, down from HK$3,292,975,000 in 2022, reflecting a decrease of 7.4%[132]. - Total liabilities decreased to HK$285,966,000 from HK$574,474,000 in the previous year, a reduction of 50.2%[132]. - Net assets increased to HK$2,761,140,000, compared to HK$2,718,501,000 in 2022, marking a growth of 1.6%[132]. Investment and Financing - As of March 31, 2023, the Group pledged investment properties with a fair value of approximately HK$1,467.0 million to secure banking facilities, an increase from HK$1,386.1 million in 2022[22]. - The Group has provided guarantees to financial institutions amounting to HK$452.0 million for facilities granted to subsidiaries, with HK$138.7 million utilized as of March 31, 2023[23]. - The Group will continue to adopt a prudent investment policy to seize attractive market opportunities and optimize diversification and flexibility[15]. - The Group's cautious financial monitoring approach is in response to the economic downturn in Hong Kong, particularly regarding customer loan recoverability[8]. - The Group expects significant influences on financial performance in the second half of 2023 due to potential U.S. recession and high-interest rates[40]. - The market is anticipated to experience brief but frequent volatility, with a focus on identifying undervalued industries and firms[42]. Corporate Governance and Management - The Group has established a Compliance and Risk Steering Committee to enhance corporate governance and support future expansion[46]. - The Company has maintained directors and officers liability insurance for protection against legal actions[115]. - The Company’s organizational structure and governance are supported by various committees including the Audit Committee and Remuneration Committee[98]. - The independent non-executive Directors' term lasts until retirement by rotation as per the Company's Articles of Association[54]. - The Company received confirmation of independence from each independent non-executive Director for the year ended 31 March 2023[52]. Employee and Workforce Development - The total employee costs for the Group were approximately HK$15.0 million, representing 13.1% of the Group's revenue for the fiscal year 2023[27]. - The Group is focused on enhancing workforce capabilities through regular training to improve technical skills and industry knowledge[25]. Shareholder Information - The board declared a final dividend of HK$0.02 per ordinary share for the year[128]. - The Group's five largest clients accounted for approximately 31.63% of total revenue for the year ended March 31, 2023, down from 38% in 2022, with one customer contributing over 10% of total revenue[76]. - The company's reserves available for distribution amounted to approximately HK$370.0 million as of March 31, 2023, unchanged from 2022[74]. Market Conditions and Risks - The ongoing geopolitical tensions and high inflation are expected to create uncertainty in the financial markets, impacting recovery efforts[7]. - The company continues to face significant risks and uncertainties, as discussed in the annual report, particularly in financial performance and market conditions[127]. - Future outlook remains cautious due to market volatility and economic conditions, with ongoing assessments of strategic opportunities[127]. Business Segments - The Group operates across six key business streams: Brokerage, Financing, Corporate Financial Advisory, Assets Management, Properties Investment, and Precious Metal Trading[197]. - The Company’s subsidiaries are engaged in various financial services including money lending and asset management[101]. - The principal activities of the Company include securities broking, futures broking, and corporate finance advisory[101].

Financial Performance - For the year ended March 31, 2023, Upbest Group Limited reported a profit of HK$100,236,000, an increase from HK$86,993,000 in the previous year, representing a growth of approximately 15.7%[7] - Revenue for the year ended March 31, 2023, was HK$114,961,000, a decrease of 9.1% from HK$127,011,000 in 2022[28] - Profit for the year increased to HK$100,236,000, up 15.1% from HK$86,993,000 in the previous year[29] - Total comprehensive income for the year was HK$95,935,000, compared to HK$89,531,000 in 2022, marking a 7.4% increase[31] - Basic earnings per share rose to HK3.7 cents, compared to HK3.2 cents in 2022, reflecting a 15.6% increase[29] Shareholder Information - Proposed final dividend remains unchanged at HK$53,646,000, with a dividend per share of HK2.0 cents[28] - As of the announcement date, CCAA Group Limited holds 1,992,721,496 shares of Upbest Group, accounting for approximately 74.29% of the issued share capital, unchanged from the previous year[11] Financial Position - Net assets as of March 31, 2023, totaled HK$2,761,140,000, an increase from HK$2,718,501,000 in 2022[32] - Cash and cash equivalents decreased to HK$459,327,000 from HK$568,386,000, a decline of 19.2%[32] - Total trade receivables decreased to HK$50,173,000 from HK$73,372,000, while interest-bearing loan receivables fell to HK$640,176,000 from HK$822,271,000[100] - Total cash and cash equivalents decreased to HK$405,444,000 in 2023 from HK$464,551,000 in 2022, a decline of 12.7%[131] - The Group has total borrowings of approximately HKD 139.3 million as of March 31, 2023, down from HKD 234.6 million in 2022[200] Revenue Breakdown - Total revenue from contracts with customers decreased to HK$8,117,000 in 2023 from HK$13,679,000 in 2022, representing a decline of approximately 40.5%[60] - Brokerage income from securities decreased to HK$4,392,000 in 2023 from HK$6,522,000 in 2022, a decrease of about 32.6%[60] - Corporate finance revenue significantly dropped to HK$152,000 in 2023 from HK$3,176,000 in 2022, indicating a decline of approximately 95.2%[62] - Revenue from asset management, including precious metal trading, was HK$1,584,000 in 2023, down from HK$1,735,000 in 2022, a decrease of approximately 8.7%[62] - Revenue from leases increased to HK$30,969,000 in 2023 from HK$28,757,000 in 2022, marking an increase of about 7.6%[62] Expenses and Costs - Administrative and other operating expenses significantly increased to HK$74,900,000 from HK$21,000,000, indicating a rise of 256.2%[29] - The total staff cost for 2023 was HK$15,042,000, a slight decrease from HK$15,471,000 in 2022[90] - The Group's administrative and operating expenses for the fiscal year were approximately HK$25.8 million, a decrease of about HK$0.6 million from the previous year, with administrative expenses accounting for approximately 22.5% of revenue[192] Taxation - The Group's effective tax rate remained stable at 16.5% for both 2023 and 2022, with current year Hong Kong profits tax recorded at HK$6,711,000 in 2023, down from HK$11,154,000 in 2022[69] - The company operates under a two-tiered profits tax regime in Hong Kong, with the first HK$2 million taxed at 8.25%[92] Investment Properties - The company has investment properties held for rental purposes, situated in Macau under medium-term leases[97] - Fair value of investment properties increased to HK$1,697,000,000, with a net increase of HK$74,900,000 recognized in the consolidated income statement[96] - As of 31 March 2023, the fair value of the Group's investment properties was approximately HK$1,697.0 million, with a net fair value increase of approximately HK$74.9 million recorded during the year[186] Economic Outlook - The economic outlook remains uncertain due to potential U.S. recession and geopolitical tensions, which may impact financial performance in the second half of 2023[162] - Real GDP in Hong Kong is expected to grow by 3.5% to 5.5% in the latter half of 2023, following a 3.5% decline in 2022[150] - The Hong Kong economy is expected to rebound significantly in the second half of 2023, with real GDP growth projected between 3.5% to 5.5%[181] Compliance and Reporting - The consolidated financial statements are prepared in accordance with HKFRSs, and all values are rounded to the nearest thousand (HK$'000)[12] - The Group's financial reporting adheres to the standards issued by the HKICPA, ensuring compliance and accuracy in financial disclosures[24] - The Group continues to adopt the going concern basis in preparing the consolidated financial statements, expecting sufficient resources for the foreseeable future[26] Risk Management - The Group maintained a cautious approach in evaluating loan recoverability, ensuring competitiveness while managing risks[183] - The Group implemented a more prudent treasury control approach due to the downturn in the Hong Kong economy[144]

Financial Performance - Revenue for the six months ended September 30, 2022, was HK$59,642,000, a decrease of 15.5% from HK$70,582,000 in the same period of 2021[9]. - Profit for the period attributable to owners of the Company was HK$38,603,000, down 18.3% from HK$47,211,000 in the previous year[12]. - Basic earnings per share decreased to 1.43 HK cents from 1.76 HK cents, reflecting a decline of 18.8%[7]. - Total comprehensive income for the period was HK$32,459,000, a decrease of 32.7% compared to HK$48,245,000 in the prior year[13]. - The overall profit before taxation for the six months ended September 30, 2022, was HK$43,619,000, a decrease of 19.2% from HK$54,005,000 in 2021[94]. - The Group's profit attributable to owners for the six months ended 30th September 2022 was approximately HK$38,459,000, compared to HK$47,234,000 in 2021, reflecting a decrease of 18.5%[135]. Revenue Breakdown - For the six months ended September 30, 2022, total revenue from contracts with customers was HK$4,235,000, a decrease of 47.7% compared to HK$8,102,000 in the same period of 2021[84]. - Revenue from broking services was HK$3,106,000, down 39.7% from HK$5,156,000 in the previous year[83]. - Corporate finance revenue significantly decreased to HK$152,000 from HK$1,933,000, representing a decline of 92.1%[83]. - Assets management revenue was HK$746,000, slightly down from HK$807,000, a decrease of 7.5%[83]. - Precious metal trading revenue increased to HK$231,000 from HK$206,000, marking an increase of 12.1%[83]. - Margin clients' interest revenue decreased to HK$3,077,000 from HK$4,569,000, a decline of 32.7%[86]. - Money lending revenue decreased to HK$35,223,000 from HK$41,897,000, a decline of 16.1%[86]. - Financing segment revenue decreased by 16.3% to HK$40,124,000 from HK$47,857,000 year-on-year[92]. - Corporate finance segment revenue significantly dropped by 92.1% to HK$152,000 compared to HK$1,933,000 in the previous year[92]. - Properties investment segment revenue increased by 4.5% to HK$15,283,000 from HK$14,623,000 in 2021[92]. Expenses and Liabilities - Administrative and other operating expenses were HK$13,544,000, slightly reduced from HK$13,960,000 in the previous period[9]. - Total current liabilities decreased to HK$539,323,000 as of September 30, 2022, from HK$574,474,000 as of March 31, 2022, representing a reduction of approximately 6.1%[14]. - Net cash used in financing activities was HK$67,845,000, compared to HK$40,622,000 in the same period last year, indicating a significant increase of approximately 66.9%[58]. - Interest paid for borrowings increased to HK$2,442,000 in the current period from HK$1,864,000 in the previous period, marking an increase of about 30.9%[55]. Assets and Cash Flow - The Group's non-current assets totaled HK$1,763,286,000 as of September 30, 2022, compared to HK$1,778,759,000 as of March 31, 2022[24]. - Trade receivables amounted to HK$81,329,000, down from HK$89,251,000, indicating a decrease of 8.5%[21]. - Bank balances and cash decreased to HK$520,875,000 from HK$568,386,000, a decline of 8.4%[27]. - Cash and cash equivalents at the end of the period were HK$467,390,000, down from HK$515,549,000 at the beginning of the period, a decrease of about 9.3%[59]. - The Group's total current assets as of September 30, 2022, are HK$948,465,000, slightly up from HK$941,657,000 as of March 31, 2022[165]. Dividends and Shareholder Returns - The Company did not declare any interim dividend for the period[7]. - The company paid dividends of HK$53,646,000 during the period, compared to HK$26,823,000 in the previous year, reflecting an increase of approximately 100%[54]. Taxation and Losses - Hong Kong profits tax for the current period is HK$5,016,000, down from HK$6,794,000 in the previous period, reflecting a decrease of approximately 26.2%[142]. - The Group has unutilised tax losses of approximately HK$65,392,000 available for offsetting against future taxable profits, slightly down from HK$65,407,000 as of March 31, 2022[145]. Operational Overview - The company continues to engage in a wide range of financial services including securities broking, futures broking, and corporate finance advisory[1]. - The Group's operations are primarily located in Hong Kong, Macau, and the People's Republic of China, with administration conducted in Hong Kong[123]. - The Group's geographical revenue breakdown shows HK$43,182,000 from Hong Kong, HK$16,460,000 from Macau, and no revenue from the PRC for the six months ended 30th September 2022[126]. Lending Portfolio - The company reported a total of 5 corporate loans amounting to HK$256,229,000 with interest rates ranging from 12% to 18%[190]. - There were 46 mortgage loans issued, totaling HK$546,076,000, with terms from 6 months to 30 years and interest rates of P+ to 24%[190]. - The consumer finance segment provided loans to individuals, totaling an unspecified amount, with terms from 3 months to 8 years and interest rates between 5.5% and 18%[190]. - The company issued 2 small business loans amounting to HK$845,176,000, with terms of 2 to 4 years and interest rates ranging from 12% to 36%[190]. - The structured loans category included loans with terms of up to 4 years and 10 months, with guarantees and/or corporate guarantees involved[190]. - The total number of loans across all categories indicates a diverse lending portfolio, catering to both corporate and individual borrowers[190]. - The company emphasizes the importance of securities and guarantees in its lending practices, enhancing risk management[190]. - The interest rates offered reflect a competitive range, potentially attracting a variety of borrowers[190]. - The company is focused on expanding its loan offerings, particularly in the mortgage and consumer finance sectors[190]. - Future strategies may include further market expansion and the introduction of new financial products to meet customer needs[190].