Audit and Financial Reporting - The audited annual performance for the year ended March 31, 2022, was completed by the auditor Zhongshen Zhonghuan (Hong Kong) CPA Limited[4] - The financial data for the consolidated income statement and other comprehensive income, as well as the consolidated financial position, were consistent with the audited financial statements for the year ended March 31, 2022[6] - Due to the COVID-19 outbreak in Liaoning Province, the audit process was adversely affected, leading to delays in financial reporting and auditing procedures[3] - The company anticipates that the annual report for the year ended March 31, 2022, will be sent to shareholders by August 5, 2022, due to the delays mentioned[7]

Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 21,480,000, an increase of 53% compared to HKD 14,034,000 for the same period in 2020[6] - Gross profit for the same period was HKD 6,808,000, representing a gross margin of approximately 31.7%, up from HKD 4,142,000 in 2020[6] - The company reported a loss before tax of HKD 4,643,000, compared to a loss of HKD 3,632,000 in the previous year, indicating a deterioration in performance[6] - Total comprehensive income for the period was HKD 1,529,000, significantly lower than HKD 10,929,000 in the prior year[6] - The operating loss before tax for the six months ended September 30, 2021, was HKD 4,643,000, compared to a loss of HKD 3,632,000 in the same period of 2020[27] - Basic and diluted loss per share for the six months ended September 30, 2021, was HKD 2.18, compared to HKD 1.71 for the same period in 2020[27] - The group recorded a classified loss of approximately HKD 3,773,000 for the six months ended September 30, 2021, which is a 182% increase from the loss of HKD 1,336,000 for the same period in 2020[51] Revenue Breakdown - Property development and sales generated HKD 16,246,000, up 61% from HKD 10,065,000 year-on-year[19] - Total revenue from property management was HKD 281,000, an increase from HKD 192,000 in the previous year[18] - Revenue from hydropower station operation management was HKD 4,328,000, up from HKD 3,357,000 year-on-year[18] - Revenue from property investment was approximately HKD 625,000 for the six months ended September 30, 2021, a 49% increase from HKD 420,000 for the same period in 2020[53] - For the six months ended September 30, 2021, the revenue and profit of the clean and renewable energy business were approximately HKD 4,328,000 and HKD 2,238,000, respectively, compared to HKD 3,357,000 and HKD 1,703,000 for the same period in 2020, representing a revenue increase of about 29%[56] Assets and Liabilities - Non-current assets as of September 30, 2021, totaled HKD 101,467,000, slightly down from HKD 101,760,000 as of March 31, 2021[8] - Current assets increased to HKD 293,293,000 from HKD 290,965,000, driven by an increase in trade receivables and properties under development[8] - The company’s total equity as of September 30, 2021, was HKD 314,575,000, a slight increase from HKD 313,046,000 as of March 31, 2021[9] - As of September 30, 2021, trade receivables amounted to HKD 3,731,000, an increase from HKD 3,449,000 as of March 31, 2021[29] - Trade payables were reported at HKD 8,200,000 as of September 30, 2021, down from HKD 8,467,000 as of March 31, 2021[33] - Total borrowings stood at HKD 22,876,000 as of September 30, 2021, compared to HKD 22,502,000 as of March 31, 2021[34] - The debt-to-equity ratio remained stable at 0.11 as of September 30, 2021, consistent with the previous period[58] - The current ratio decreased to 3.85 as of September 30, 2021, from 4.27 as of March 31, 2021, due to the classification of bonds payable due within the next twelve months[58] Cash Flow - The company’s cash and cash equivalents at the end of the reporting period were HKD 12,647,000, up from HKD 12,087,000 at the beginning of the period[13] - The net cash used in operating activities was HKD 141,000, a significant improvement from HKD 14,727,000 used in the same period last year[13] - As of September 30, 2021, the bank balance and cash amounted to approximately HKD 12,647,000, up from HKD 12,087,000 as of March 31, 2021[58] Corporate Governance - The company has adopted all provisions of the corporate governance code as of September 30, 2021, with exceptions noted regarding attendance at the annual general meeting[86] - The board of directors includes three executive directors and three independent non-executive directors as of September 30, 2021[90] - The audit committee has been established and its terms of reference updated to comply with the standard code[89] - All directors confirmed compliance with the standard code regarding securities transactions for the six months ending September 30, 2021[87] Future Outlook - The company has not provided specific guidance for future performance but continues to focus on operational improvements and market expansion strategies[6] - The group anticipates continued recovery in the Chinese real estate market post-pandemic, aligning with national policies to stabilize the economy[52] - The company plans to continue investing in renewable energy to ensure sustainable revenue growth in the long term[56] - The company aims to diversify its business segments to enhance and expand its revenue streams despite external challenges[73] Shareholding Structure - As of September 30, 2021, the company has a total of 108,591,364 shares held by Da Rong Capital Limited, representing 51.02% of the issued share capital[75] - Lushan Investment Holding Limited holds 145,895,712 shares, which accounts for 68.55% of the issued share capital[79] - The shares pledged by Da Rong Capital Limited to Lushan Investment Holding Limited amount to 108,591,364 shares, representing approximately 51.02% of the company's issued share capital[80] - Wang Jing, the beneficial owner of 82.8% of Liao Ning Shi Hua Group, holds 108,591,364 shares, which is 51.02% of the issued share capital[81] - The company has no other recorded interests or short positions in its shares as of September 30, 2021, according to the Securities and Futures Ordinance[83]

Business Strategy and Performance - The Group's business strategy focuses on diversifying into different sectors to strengthen and expand revenue streams[12] - The Group aims to maintain a prudent approach while focusing on core business and seizing emerging opportunities for better shareholder results[19] - The Group is committed to generating sustainable returns and enhancing shareholder value[12] - The Group's strategic focus remains on property development and related services, reallocating resources to enlarge its business scale in these sectors[22] - The Group's strategy includes diversifying business models and expanding revenue streams to improve overall performance[55] - The Group is optimistic about the properties development industry in China and aims to capture potential opportunities in the market[41] Financial Performance - For the year ended 31 March 2021, the Group recorded a revenue of approximately HK$29,542,000, representing a decrease of approximately 58% compared to HK$71,177,000 for the year ended 31 March 2020[24] - The Group recorded a loss from continuing operations of approximately HK$15,428,000 for the year ended 31 March 2021, a decrease of approximately 38% compared to HK$24,694,000 for the year ended 31 March 2020[24] - Revenue from properties development for the year ended 31 March 2021 was derived from the sale of remaining completed properties of the Xiguan Project, achieving total contracted sales of approximately HK$23,018,000, which is a decrease from HK$65,873,000 for the year ended 31 March 2020[31] - Revenue from properties investment decreased by approximately 14% to HK$919,000 for the year ended 31 March 2021, compared to HK$1,072,000 for the previous year[45] - The Group recorded a segment loss of approximately HK$4,639,000 for the year ended 31 March 2021, compared to a segment loss of approximately HK$1,656,000 for the year ended 31 March 2020[45] - The Group's finance costs increased by approximately 11% to HK$3,427,000 for the year ended 31 March 2021, compared to HK$3,077,000 for the year ended 31 March 2020[24] Project Developments - Three property development projects in northern PRC are expected to reinforce the Group's premium market positioning[14] - The Xiguan Project, completed in the year ended 31 March 2019, includes 775 residential units and 30 commercial units, with a total floor area of 46,242.6 sq.m.[30] - Bagua Town Project I is expected to be completed and sold in the third and last quarter of 2021, comprising 3 main buildings and about 38 commercial units[32] - Bagua Town Project II is currently in the preliminary stage of preparation ahead of construction, with a floor area of approximately 9,188.2 sq.m.[37] - The Bagua Town Project I and II are expected to enhance future business performance and generate continuous growth for the Group[38] Renewable Energy - The renewable energy business, including two hydroelectric power stations, provides stable income and supports environmental sustainability[18] - The Group's renewable energy investments are characterized by long lifespans and relatively low operational costs[18] - Revenue from the hydroelectric power business increased to approximately HK$5,144,000 for the year ended 31 March 2021, up from approximately HK$3,916,000 for the previous year, with a segment profit of approximately HK$1,232,000[49] - The Group believes that continued investments in renewable energy will provide sustainable revenue in the long run[54] Cost Management - The Group implemented cost control measures and optimized business management processes to enhance performance during the pandemic[13] - Administrative expenses decreased from approximately HK$41,499,000 for the year ended 31 March 2020 to approximately HK$18,152,000 for the year ended 31 March 2021, mainly due to cost-saving measures[24] - The total employee costs from continuing operations for the year ended March 31, 2021, were approximately HK$1,612,000, down from HK$5,761,000 in 2020[71] Corporate Governance - The Company has established a robust governance structure with various committees to oversee its operations[99] - The Company has adopted all code provisions in the Corporate Governance Code as its own practices, ensuring compliance during the year ended 31 March 2021[108] - The Board consists of three executive Directors and three independent non-executive Directors, with more than one-third being independent, facilitating independent decision-making[117] - The Company is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance performance[107] - The Board meets regularly, approximately quarterly, to review the Group's financial and operational performance[140] Shareholder Communication - The Company emphasizes timely communication with shareholders through various channels, including interim and annual reports, and encourages attendance at general meetings[187] - The Board is committed to enhancing investor relations and maintains open dialogue with institutional investors and analysts to keep them informed of the Group's developments[189] - Shareholders holding at least one-tenth of the paid-up capital can requisition a special general meeting, while those holding one-twentieth can propose items for discussion[193][194] Dividend Policy - The Board does not recommend the payment of a final dividend for the year ended March 31, 2021[83] - The dividend policy aims to balance shareholders' interests with prudent capital management, allowing for special dividends in addition to interim and annual dividends, subject to Board discretion[183] - The Board will review the dividend policy periodically to ensure it remains aligned with the Group's financial performance and capital requirements[183]

China Sinostar Group Company Limited 中國華星集團有限公司 (於百慕達註冊成立之有限公司) 股份代號: 485 2020/2021 中期業績報告 China Sinostar Group Company Limited 中國華星集團有限公司 2020/2021 Interim Report 目錄 公司秘書 林偉基 核數師 公司資料 2 簡明綜合損益及其他全面收益表 3 簡明綜合財務狀況表 5 簡明綜合權益變動表 7 簡明綜合現金流量表 8 簡明綜合財務報表附註 9 管理層討論與分析 20 其他資料 27 公司資料 董事局 執行董事 王晶（主席） 王星喬（行政總裁） 趙爽 獨立非執行董事 蘇波（於二零二零年五月七日獲委任） 唐生智 曾冠維 王平（於二零二零年五月七日辭任） 中審眾環（香港）會計師事務所有限公司 （於二零二零年五月十八日獲委任） 中匯安達會計師事務所有限公司 （於二零二零年五月十五日辭任） 審核委員會 蘇波（於二零二零年五月七日獲委任）（主席） 唐生智 曾冠維 王平（於二零二零年五月七日辭任） 薪酬委員會 唐生智（主席） 蘇波（於二零二零年五月七日獲委任） 曾冠 ...

Business Strategy and Operations - The Group's business strategy focuses on diversifying into different sectors to strengthen revenue streams and enhance shareholder value[14] - The Group aims to expand its business into sectors with good opportunities for growth in the future[3] - The Group continued to adhere to its business strategy despite downturns in the electronic products and property development markets during the reporting year[15] - The Group is actively seeking good opportunities to repay investors' trust with increasing returns[3] - The Group's strategy includes reallocating resources to enlarge its business scale in properties development and related services[33] - The Group plans to diversify its business models and strengthen revenue streams despite challenges posed by the coronavirus pandemic[70][74] Financial Performance - The financial year ending March 31, 2020, faced significant challenges due to the trade war between the USA and PRC, geopolitical conflicts, and the COVID-19 pandemic, which disrupted global economic activities[15] - For the year ended 31 March 2020, the Group recorded a revenue of approximately HK$71,177,000, representing a decrease of 58% compared to HK$168,783,000 for the year ended 31 March 2019[39] - The total loss for the year ended 31 March 2020 was approximately HK$29,227,000, representing an increase of 149% compared to a loss of approximately HK$11,724,000 for the year ended 31 March 2019[40] - The Group recorded a loss from discontinued operations of approximately HK$4,533,000 for the year ended 31 March 2020, compared to a loss of approximately HK$13,308,000 for the year ended 31 March 2019[39] - The Group's finance costs increased by 25% to approximately HK$3,077,000 for the year ended 31 March 2020, compared to approximately HK$2,466,000 for the year ended 31 March 2019[39] - The Group's borrowings as of March 31, 2020, were approximately HK$20,742,000, down from HK$23,226,000 as of March 31, 2019, with bond payable increasing to approximately HK$11,500,000 from HK$1,000,000[73][76] Market Challenges - The financial risks and foreign currency fluctuations have created instability in the global economy, impacting the Group's operations[15] - The prolonged lockdown due to the pandemic has further devastated the global economy, affecting the Group's performance[15] - The overall business environment has been affected by geopolitical tensions and the COVID-19 pandemic, leading to operational challenges[16] - The impact of the COVID-19 pandemic led to delays in construction works and a deterioration in overall business performance for the year ended 31 March 2020[37] Property Development - The Group owned three properties development projects in the PRC as of 31 March 2020, namely Xiguan Project, Bagua Town Project I, and Bagua Town Project II[41] - For the year ended 31 March 2020, the Group sold approximately 15% of the gross floor area of the Xiguan Project, achieving total contracted sales of approximately HK$65,873,000[46] - Bagua Town Project I and II are at the preliminary stage of preparation ahead of construction, expected to enhance future business performance of the Group[53] - The Group is optimistic about the property development market in the PRC, anticipating favorable policies and mechanisms to stabilize the market[55][58] Corporate Governance - The Company has adopted all code provisions in the Corporate Governance Code as its own corporate governance practices[126] - The Board consists of three executive Directors and three independent non-executive Directors, ensuring more than one-third of the Board members are independent[136] - The Company is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance performance[125] - The leadership structure includes a chairman, executive directors, and independent non-executive directors to ensure balanced decision-making[113][114] - The Board has established a schedule of matters reserved for its decision, which is reviewed periodically to meet the company's needs[145] Management and Leadership - The Company has a strong leadership team with a mix of experience in finance, management, and real estate development[109][110] - The management team has a commitment to maintaining high standards of corporate governance and compliance[113][114] - The Company is focused on expanding its market presence and enhancing its asset management capabilities[110] - The Company will ensure all Directors are provided with appropriate information for general meetings to facilitate attendance[133] Committees and Meetings - The Board established three committees: Audit, Remuneration, and Nomination, to strengthen its functions and expertise[169] - The Audit Committee met twice during the financial year ended March 31, 2020, to review the financial statements and internal control systems[173] - The Remuneration Committee also met twice during the financial year to assess the remuneration package of the Directors and senior management[181] - The Nomination Committee met three times during the year ended March 31, 2020, to assess the qualifications and competencies of Director candidates[185] Employee and Staff Information - The total number of employees decreased to 25 as of March 31, 2020, from 60 in the previous year, with 22 employed overseas[87][92] - The total staff costs from continuing operations for the year ended March 31, 2020, were approximately HK$5,761,000, a decrease from HK$6,193,000 in 2019[87][92] Miscellaneous - The Group did not execute any legally binding agreements for material investment or acquisition of capital assets as of the date of the annual report[91][95] - The Group had no material contingent liabilities as of March 31, 2020, consistent with the previous year[81][85] - The Board does not recommend the payment of a final dividend for the year ended March 31, 2020, which was also nil in 2019[97][101]

Revenue and Profitability - Revenue for the six months ended September 30, 2019, was HKD 41,716,000, a significant increase from HKD 5,280,000 in the same period of 2018, representing a growth of 694%[5] - Gross profit for the same period was HKD 13,108,000, compared to HKD 4,588,000 in 2018, indicating a gross margin improvement[5] - Revenue from property development and sales was HKD 38,637,000, while revenue from hydropower station operation management was HKD 2,405,000[29] - The group generated HKD 41,072,000 in revenue from customer contracts, with property management services contributing HKD 30,000[29] - The group’s property management business generated revenue of approximately HKD 30,000 and a classified profit of approximately HKD 14,000 for the six months ended September 30, 2019, with no revenue recorded in the same period of 2018[72] Losses and Expenses - The company reported a loss before tax of HKD 1,215,000, an improvement from a loss of HKD 5,005,000 in the previous year[5] - The company reported a total comprehensive loss of HKD 30,472,000 for the six months ended September 30, 2019, compared to a total comprehensive loss of HKD 36,303,000 for the same period in 2018, reflecting a decrease in losses of approximately 16.5%[12] - The loss attributable to owners of the company was HKD 7,940,000, compared to HKD 7,502,000 in the previous year, indicating a slight increase in losses[7] - The company incurred costs of HKD 28,608,000 for sold inventory in the six months ended September 30, 2019, compared to HKD 692,000 in the same period of 2018, indicating a significant increase[37] - The company reported total expenses of HKD 3,568,000 related to taxes for the six months ended September 30, 2019, with no tax liabilities reported for the same period in 2018[39] Assets and Liabilities - Non-current assets decreased to HKD 103,207,000 from HKD 134,583,000 as of March 31, 2019, indicating a decline of 23%[9] - Current assets totaled HKD 351,527,000, down from HKD 451,086,000, representing a decrease of 22%[9] - The company's net asset value was HKD 364,934,000, a decrease from HKD 384,640,000 as of March 31, 2019[10] - Total assets classified as held for sale amounted to HKD 318,095,000 as of September 30, 2019[44] - The total liabilities of the company increased, impacting the overall financial position, although specific figures were not disclosed in the provided content[12] Cash Flow and Financing - The net cash used in operating activities for the six months ended September 30, 2019, was HKD (43,259,000), an improvement compared to HKD (85,061,000) for the same period in 2018, indicating a reduction in cash outflow of approximately 49.1%[14] - Cash and cash equivalents at the end of the period were HKD 6,697,000, down from HKD 17,140,000 at the end of the same period in 2018, representing a decrease of approximately 61.0%[14] - The company raised new borrowings amounting to HKD 33,575,000 during the financing activities, compared to HKD 51,974,000 in the previous year, indicating a decrease of approximately 35.4%[14] - The company issued shares worth HKD 11,760,000 during the period, contributing to the increase in share capital[12] - The company issued bonds totaling HKD 10,500,000, with a maturity exceeding two years, compared to HKD 1,000,000 as of March 31, 2019[52] Strategic Decisions and Changes - The company plans to sell its subsidiary, Fengwei Holdings Limited, as part of its strategic restructuring[2] - The company agreed to sell its wholly-owned subsidiary for HKD 7,500,000, which will result in the cessation of its electronic product design and sales business[32] - The company completed the acquisition of 100% equity in Zhongfu Real Estate, indirectly acquiring land use rights for approximately 9,188.2 square meters in Benxi City, Liaoning Province[71] - The company has not signed any legally binding agreements regarding significant investments or acquisitions of capital assets as of the report date[85] - The company has established an audit committee, which includes members Wang Ping, Song Wenke, and Zeng Guowei, to review accounting principles and internal controls[113] Employee and Management Costs - The company’s employee costs, including director remuneration, rose to HKD 2,799,000 for the six months ended September 30, 2019, compared to HKD 1,796,000 in the same period of 2018, an increase of 55.9%[37] - The total employee cost for the six months ended September 30, 2019, was approximately HKD 17,230,000, compared to HKD 15,086,000 for the same period in 2018, representing an increase of about 14.2%[82] - The company reported a significant increase in the remuneration for key management personnel, rising to HKD 2,249,000 from HKD 1,440,000 year-on-year[61] Corporate Governance - The company has adopted all code provisions of the corporate governance standards as of September 30, 2019, with some exceptions noted[102] - The independent non-executive director Wang Ping was re-elected at the 2019 annual general meeting, holding six directorships in listed companies[105] - The board of directors includes executive directors Wang Jing, Wang Xingqiao, and Zhao Shuang, along with independent non-executive directors Wang Ping, Song Wenke, and Zeng Guowei[115] Market Outlook and Future Plans - The group anticipates a challenging market environment in the coming year due to political, economic, and global trade tensions, and will maintain a prudent investment strategy[88] - The group will continue to focus on property development in China, clean energy development, and other prosperous industry categories[88]

China Sinostar Group Company Limited 中國華星集團有限公司 集團使命 我們肩負「創造美好生活」之使命，將我們管理團隊在企 業文化方面取得的成就融入到當前經營的業務中，並堅持 「客戶至上、謀求共贏、和平共處、推動環保、以結果為 導向」之理念，從而推動企業的可持續發展。這一理念表 明我們積極回應利益相關者所關注之問題，尤其是我們將 不斷增加回報，尋求良機，從而不負投資者之重托。我們 日後會將業務擴展至具備良好發展機遇的其他分部。我們 保證會供應優質產品，為客戶提供貼心服務，踐行向員工 許下的承諾並關注員工所需，為其創造居家式辦公環境並 為其提供廣闊的發展平台，同時積極參與社會福利事業， 從而取得社會各界的支持和理解。 Annual Report 2019 年報 CONTENTS 目錄 China Sinostar Group Company Limited 2019 Annual Report 年報 中國華星集團有限公司 OUR MISSION We have highlighted the mission of "invest for a better life", inte ...