Financial Performance - Revenue for the year ended March 31, 2024, was HKD 5,837,373, a decrease of 1.0% compared to HKD 5,896,349 in 2023[2] - Gross profit for the same period was HKD 1,588,260, down 0.5% from HKD 1,596,687, with a gross margin of 27.2%[2] - Operating profit decreased by 2.8% to HKD 658,751, resulting in an operating margin of 11.3%[2] - Net profit for the year was HKD 517,739, a decline of 2.7% from HKD 532,235, with a net margin of 8.9%[2] - The company reported a basic and diluted earnings per share of 35.3 HK cents, down 8.8% from 38.7 HK cents[2] - The company reported a net profit attributable to shareholders of HKD 484,118,000 for the fiscal year ending March 31, 2024, compared to HKD 532,235,000 in the previous year, reflecting a decrease of approximately 9.0%[30] - Basic earnings per share decreased to HKD 35.3 from HKD 38.7 year-over-year, indicating a decline of about 8.8%[31] Assets and Liabilities - Total assets increased by 27.7% to HKD 10,905,823 from HKD 8,539,878 in the previous year[2] - Total equity increased to HKD 4,016,099, a rise of 4.2% from HKD 3,855,716[2] - The company reported a total liability of HKD 6,889,724,000 as of March 31, 2024, compared to HKD 4,684,162,000 in 2023, reflecting an increase of approximately 47.2%[18] - The total outstanding borrowings amounted to HKD 1,792,919,000 as of March 31, 2024, up from HKD 1,641,046,000 a year earlier, with approximately 86.9% classified as short-term loans[57] Cash Flow - Net cash generated from operating activities for the year ended March 31, 2024, was HKD 65,939,000, a decrease of 33.8% compared to HKD 99,375,000 in 2023[9] - Net cash used in investing activities was HKD (505,103,000), an improvement from HKD (540,635,000) in the previous year[9] - Net cash generated from financing activities significantly increased to HKD 2,225,304,000 from HKD 502,526,000 in 2023, indicating a strong financing position[9] - The total cash and cash equivalents at the end of the year reached HKD 2,375,176,000, up from HKD 605,365,000 in 2023, reflecting a net increase of HKD 1,786,140,000[9] Segment Performance - Revenue from the die-casting segment was HKD 4,243,537,000, while the injection molding segment generated HKD 1,425,401,000, and the CNC machining center contributed HKD 168,435,000, totaling HKD 5,837,373,000 in external sales[14] - The overall segment performance resulted in a profit of HKD 640,826,000 before tax, with the die-casting segment contributing HKD 541,180,000[14] - The company reported a decrease in external sales from the die-casting segment by 4.2% compared to the previous year, which was HKD 4,427,861,000[14] - Revenue from the injection molding machines segment increased to HKD 1,425,401,000 in 2024, up from HKD 1,191,013,000 in 2023, marking a growth of approximately 19.7%[24] Research and Development - Research costs surged to HKD 89,859,000 in 2024, up from HKD 27,958,000 in 2023, indicating a focus on innovation and development[22] - The company expanded its R&D team to 678 members, a year-on-year increase of 23.95%[44] - Research and development investment increased significantly to HKD 214 million, a year-on-year growth of 58.3%, indicating a strong commitment to innovation and technology development[44] Corporate Governance and Compliance - The company has not adopted several new accounting standards that are expected to have no significant impact on current or future reporting periods[12] - The company has complied with the corporate governance code as of March 31, 2024[67] - The audit committee, consisting of four independent non-executive directors, has reviewed the consolidated financial statements for the year ended March 31, 2024[69] - The company’s financial statements have been verified by its auditors, PricewaterhouseCoopers, but they do not provide an opinion on the preliminary announcement[70] Strategic Initiatives - The company has implemented an EPC model that optimizes production processes, improving efficiency and reducing operational costs, which is expected to enhance market competitiveness[54] - The introduction of a customized production simulation service is anticipated to become a key revenue growth channel for the company, helping clients visualize production outcomes[54] - The company’s strategy includes a focus on expanding domestic demand and consumer promotion policies to improve economic conditions[38] Market Trends - In 2023, China's new energy vehicle sales reached approximately 9.495 million units, a year-on-year increase of 37.9%, with a market penetration rate of 31.6%[39] - The global electric vehicle sales are projected to exceed 70 million units by 2030, with China, Europe, and the United States leading this growth[39] - The Ministry of Industry and Information Technology's policy to promote equipment upgrades is expected to stimulate demand in the industrial manufacturing sector, benefiting the company's injection molding business[56] Shareholder Information - The company plans to propose a final dividend of HKD 0.05 per share, totaling HKD 68,819,000 for the fiscal year ending March 31, 2024[29] - The interim dividend of HKD 0.045 per share was paid on January 9, 2024, and the proposed final dividend is HKD 0.05 per share, subject to shareholder approval on September 6, 2024[65] - The company will hold its annual general meeting on September 6, 2024, to discuss various matters including the proposed final dividend[72]

Financial Performance - For the six months ended September 30, 2023, the company's revenue was HKD 2,753,733,000, a decrease of 3.7% compared to HKD 2,860,238,000 in 2022[4] - Gross profit for the same period was HKD 720,488,000, down 8.4% from HKD 786,158,000, resulting in a gross margin of 26.2%, a decline of 1.3% year-on-year[4] - Operating profit decreased by 20.5% to HKD 272,858,000, with an operating margin of 9.9%, down 2.1% from the previous year[4] - Net profit attributable to shareholders was HKD 205,202,000, reflecting a 24.3% decrease from HKD 271,193,000, with a net profit margin of 7.5%, down 2.0%[4] - Basic and diluted earnings per share for the period were both HKD 14.9, compared to HKD 19.7 in the same period last year[84] - The group reported total revenue of HKD 2,753,733,000 for the six months ended September 30, 2023, compared to HKD 2,860,238,000 for the same period in 2022, reflecting a decrease of 3.7%[120] - The operating profit for the group for the six months ended September 30, 2023, was HKD 234,394,000, down from HKD 324,230,000 in the same period of the previous year, indicating a decline of 27.8%[120] - The group’s segment performance showed a profit of HKD 253,578,000 for the six months ended September 30, 2023, compared to HKD 361,147,000 in the same period of 2022, a decrease of 29.9%[120] Assets and Liabilities - The total assets increased to HKD 8,662,312,000, a growth of 1.4% year-on-year, while total borrowings rose by 8.0% to HKD 1,771,639,000[4] - Total assets as of September 30, 2023, amounted to HKD 8,662,312, an increase from HKD 8,539,878 as of March 31, 2023[81] - Total liabilities increased to HKD 4,831,108 from HKD 4,684,162, reflecting a rise in current liabilities[81] - The group reported trade payables of HKD 1,103,143,000 as of September 30, 2023, down from HKD 1,192,733,000 as of March 31, 2023[164] - The group has a total of HKD 1,771,639,000 in borrowings as of September 30, 2023, compared to HKD 1,641,046,000 as of March 31, 2023[158] Cash Flow and Investments - The company maintained a strong cash flow position, with cash and cash equivalents increasing by 10.1% to HKD 666,635,000[4] - Cash and cash equivalents amounted to HKD 666,635,000, an increase from HKD 605,365,000 as of March 31, 2023[22] - Operating cash flow for the six months was HKD 175,721,000, a significant improvement from a cash outflow of HKD 83,363,000 in the same period last year[94] - The company made significant investments in property, plant, and equipment totaling HKD 171,066,000 during the period[94] - The company plans to utilize the remaining HKD 8,602,000 for purchasing property, plant, and equipment in the next six months[55] Market and Segment Performance - The demand for die-casting machines remained stable, with sales revenue reaching HKD 1,996,628,000, a decrease of 2.6% year-on-year[10] - The injection molding segment showed a significant recovery, achieving sales revenue of HKD 677,626,000, an increase of 27.5% compared to the second half of 2023[12] - CNC segment revenue decreased to HKD 79,479,000, a year-on-year decline of 47.1% due to underperformance in overseas markets[14] - The company anticipates improved performance in the CNC segment as downstream market demand recovers and delivery cycles are realized[16] Strategic Initiatives - The company is actively expanding its overseas market presence and improving internal management to adapt to changing market conditions[9] - The company plans to expand its overseas market presence by establishing new R&D and service centers in the US, Germany, Mexico, and India[18] - A strategic cooperation agreement for the 16,000T super-large intelligent die-casting unit has been signed, marking a significant advancement in integrated die-casting technology[18] - The introduction of high-quality strategic investors is expected to enhance the company's global competitiveness in the die-casting machine market[21] Employee and Shareholder Information - Employee costs increased to HKD 511,355,000, up from HKD 462,309,000 in the previous year[28] - A total of 27,540,000 stock options were granted to 390 employees under the stock option plan as of September 24, 2021[39] - The company adopted a share award plan on October 28, 2015, aimed at rewarding employees and retaining talent[46] - The interim dividend declared is HKD 0.045 per share, an increase from HKD 0.04 per share in the previous year[65] Compliance and Governance - The audit committee has reviewed the interim financial data for the six months ending September 30, 2023, confirming compliance with relevant accounting standards[71] - The company has maintained compliance with the corporate governance code throughout the review period[68] - The company will hold a special general meeting on December 22, 2023, to seek shareholder approval for the equity incentive plan[62] Risk Management - The company has not made any significant changes to its risk management policies since the last reporting period[107] - The financial risk factors include market risk, credit risk, and liquidity risk, which the company continues to monitor closely[106]

Revenue and Profit Performance - Revenue for the six months ended September 30, 2023, decreased by 3.7% to HKD 2,753,733 thousand compared to HKD 2,860,238 thousand in the same period last year[2] - Gross profit declined by 8.4% to HKD 720,488 thousand, with a gross margin of 26.2%, down from 27.5% in the previous year[2] - Operating profit dropped by 20.5% to HKD 272,858 thousand, with an operating profit margin of 9.9%, compared to 12.0% in 2022[2] - Net profit attributable to the company's owners decreased by 24.3% to HKD 205,202 thousand, with a net profit margin of 7.5%, down from 9.5%[2] - Basic and diluted earnings per share were HKD 14.9, a 24.3% decrease from HKD 19.7 in the same period last year[2] - Revenue for the first half of fiscal year 2024 reached HKD 2,753,733,000, a decrease of 3.7% year-over-year, with net profit attributable to owners at HKD 205,202,000, down 24.3% year-over-year[34] - Gross margin was 26.2%, a decrease of 1.3% year-over-year, while operating profit margin was 9.9%, down 2.1% year-over-year[34] - The company's attributable profit decreased to 205,202 thousand HKD in 2023 from 271,193 thousand HKD in 2022[25] - Basic earnings per share decreased to 14.9 HK cents in 2023 from 19.7 HK cents in 2022[25] Segment Performance - The Die Casting Machines segment contributed HKD 2,025.84 million in revenue, representing the largest share among the three main business segments[13] - The Injection Molding Machines segment generated HKD 677.63 million in revenue, while the CNC Machining Centers segment contributed HKD 85.24 million[13] - Segment performance showed a profit of HKD 241.58 million for Die Casting Machines and HKD 19.21 million for Injection Molding Machines, while CNC Machining Centers reported a loss of HKD 7.21 million[13] - Revenue from die-casting machines decreased to 1,996,628 thousand HKD in 2023 from 2,050,390 thousand HKD in 2022[15] - Revenue from injection molding machines increased to 677,626 thousand HKD in 2023 from 659,510 thousand HKD in 2022[15] - Revenue from CNC machining centers significantly dropped to 79,479 thousand HKD in 2023 from 150,338 thousand HKD in 2022[15] - Die-casting machine sales revenue was HKD 1,996,628,000, a decrease of 2.6% year-over-year, with sufficient orders on hand for the full fiscal year[35] - Injection molding machine segment revenue recovered to HKD 677,626,000, a 27.5% increase compared to the second half of fiscal year 2023 and a 2.7% year-over-year growth[37] - CNC machining center revenue decreased to HKD 79,479,000, a 47.1% year-over-year decline, but is expected to improve in the second half of the fiscal year[38] Financial Position and Cash Flow - Total assets increased by 1.4% to HKD 8,662,312 thousand as of September 30, 2023, compared to HKD 8,539,878 thousand as of March 31, 2023[2] - Cash and cash equivalents rose by 10.1% to HKD 666,635 thousand as of September 30, 2023, from HKD 605,365 thousand as of March 31, 2023[2] - Total borrowings increased by 8.0% to HKD 1,771,639 thousand as of September 30, 2023, compared to HKD 1,641,046 thousand as of March 31, 2023[2] - The company's equity attributable to owners decreased by 0.6% to HKD 3,831,204 thousand as of September 30, 2023, from HKD 3,855,716 thousand as of March 31, 2023[2] - Operating activities generated a net cash inflow of HKD 175.72 million, compared to a net cash outflow of HKD 83.36 million in the same period last year[8] - Net cash used in investing activities increased to HKD 268.65 million from HKD 249.65 million year-over-year[8] - Net cash from financing activities decreased significantly to HKD 177.87 million from HKD 425.77 million in the previous year[8] - The company's cash and cash equivalents increased by HKD 84.94 million, reaching HKD 666.64 million at the end of the period[8] - Total assets increased to 8,662,312 thousand HKD as of September 30, 2023, from 8,539,878 thousand HKD as of March 31, 2023[14][15] - Total liabilities increased to 4,831,108 thousand HKD as of September 30, 2023, from 4,684,162 thousand HKD as of March 31, 2023[14][15] - As of September 30, 2023, the company's cash and cash equivalents amounted to HKD 666,635,000, up from HKD 605,365,000 on March 31, 2023[43] - The company's capital gearing ratio was approximately 28.8% as of September 30, 2023, compared to 26.9% on March 31, 2023[43] - The company's total outstanding borrowings were HKD 1,771,639,000 as of September 30, 2023, with 86.7% being short-term loans[43] Other Income and Expenses - Other income, including government subsidies and rental income, increased to 106,376 thousand HKD in 2023 from 77,282 thousand HKD in 2022[15] - The company recognized 38,889 thousand HKD as other income from forfeited deposits related to a city renewal project[16] - The company received government subsidies related to self-developed product sales and R&D in China, totaling 18,637 thousand HKD in 2023[16] - Exchange loss net amount decreased to 6,983 thousand HKD in 2023 from 22,217 thousand HKD in 2022[17] - Investment property fair value decreased by 272 thousand HKD in 2023 compared to an increase of 11,015 thousand HKD in 2022[17] - Employee costs increased to 511,355 thousand HKD in 2023 from 462,309 thousand HKD in 2022[18] - Research costs increased to 26,862 thousand HKD in 2023 from 13,435 thousand HKD in 2022[18] - Bank loan interest increased to 39,120 thousand HKD in 2023 from 26,277 thousand HKD in 2022[19] - Capitalized borrowing costs for property, plant, and equipment were calculated at a capitalization rate of 3.8% in 2023[19] - Current tax expense in China decreased to 32,082 thousand HKD in 2023 from 50,158 thousand HKD in 2022[20] - Deferred tax liabilities for unremitted earnings increased to 34,417 thousand HKD in 2023 from 30,689 thousand HKD in 2022[23] Corporate Governance and Compliance - The company has complied with all the code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules during the review period[56] - The Audit Committee consists of four independent non-executive directors: Mr. Tsang Yiu Keung, Dr. Lui Ming Wah, Dr. Lau Shiu Chai, and Mr. Luk Tung, with Mr. Tsang Yiu Keung serving as the Chairman[57] - The Audit Committee has reviewed the unaudited condensed interim financial information of the group for the six months ended September 30, 2023[58] - The external auditor, PricewaterhouseCoopers, has reviewed the unaudited condensed interim financial information for the six months ended September 30, 2023, in accordance with Hong Kong Standard on Review Engagements 2410[58] - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules, and all directors confirmed full compliance during the review period[57] - The Board of Directors has the discretion to determine the vesting of awards on an overall or individual basis, regardless of the termination of employment or change of control of the company[55] - The 2023/24 interim report containing all information required by the Listing Rules will be dispatched to shareholders and made available on the company's website[60] - The executive directors as of the announcement date are Ms. Zhang Qiaoying, Mr. Liu Zhuoming, and Mr. Xie Xiaosi, while the independent non-executive directors are Dr. Lau Shiu Chai, Dr. Lui Ming Wah, Mr. Tsang Yiu Keung, and Mr. Luk Tung[59] Dividends and Shareholder Information - The company declared an interim dividend of HK$0.045 per share, totaling HK$61,938,000, an increase from HK$55,056,000 in the previous year[27] - Interim dividend declared at HK$0.045 per share for the six months ended September 30, 2023, compared to HK$0.04 per share in 2022[48] - Shareholder registration will be suspended from December 20 to December 22, 2023, for the interim dividend eligibility[54] - No purchase, sale, or redemption of the company's listed securities during the six months ended September 30, 2023[49] - No unvested, vested, canceled, or lapsed awards under the share incentive plan during the 2022/23 fiscal year[54] Market and Strategic Developments - The company's global market share for large die-casting machines remains above 90%, highlighting its leading position in the automotive integrated die-casting industry[36] - The company expanded its customer base in the automotive chassis integrated die-casting field, securing new clients from both domestic and international markets[36] - New product launches in the injection molding machine segment, including the ELETTRICA series and VARIA series, contributed to revenue recovery and market competitiveness[37] - The company anticipates better development opportunities for the CNC segment with the gradual production of new five-axis gantry machining centers[38] - The company plans to expand overseas markets by establishing new R&D centers, service centers, and production bases in the US, Germany, Mexico, and India, building on its existing network of over 60 sales offices and service centers in more than 20 countries[39][40] - Overseas revenue has been gradually increasing, with the company securing equipment orders or意向 agreements from local automotive manufacturers in Europe, the US, Japan, and South Korea[40] - The company achieved a breakthrough in super-large intelligent die-casting units, advancing from 12,000 tons to 16,000 tons, marking a milestone in China's high-end and green development of the casting industry[41] - The company is collaborating with domestic automakers to develop integrated die-casting technology for A00-class vehicle chassis, expanding the application of integrated die-casting in the automotive industry[41] - The company's subsidiary, Shenzhen Lijin Technology, introduced high-quality strategic investors, including the Advanced Manufacturing Industry Fund, to enhance its global competitiveness in die-casting machines[42] - Advanced Manufacturing Industry Investment Fund II agreed to invest between RMB 1.15 billion and RMB 1.5 billion in Shenzhen Likong Technology, acquiring 9.47% to 12% of the expanded registered capital[52] - Post-investment, the company (via Likong Machinery) holds approximately 13.77% of Shenzhen Likong's expanded equity, while Advanced Manufacturing holds approximately 9.89%[53] Trade Receivables and Payables - Trade receivables and bills receivable net amount was HK$2,522,257,000 as of September 30, 2023, compared to HK$2,520,720,000 as of March 31, 2023[28] - Trade receivables impairment provision was HK$125,374,000 as of September 30, 2023, with an additional provision of HK$3,117,000 made during the period[28] - Trade receivables aging analysis showed 90 days or less accounted for HK$1,076,092,000, while over one year accounted for HK$342,898,000 as of September 30, 2023[29] - Trade payables and bills payable amounted to HK$1,794,289,000 as of September 30, 2023, a slight decrease from HK$1,810,562,000 as of March 31, 2023[31] - Contract liabilities increased to HK$492,229,000 as of September 30, 2023, up from HK$432,348,000 as of March 31, 2023[31] - Trade payables aging analysis showed 90 days or less accounted for HK$920,665,000, while over one year accounted for HK$24,947,000 as of September 30, 2023[33] Other Financial Information - Other comprehensive loss for the period was HKD 169,402 thousand, primarily due to exchange differences, compared to HKD 361,630 thousand in the previous year[5] - The company terminated a cooperation agreement related to a city renewal project, resulting in the recognition of 38,889 thousand HKD as other income[16] - The urban renewal project for the Likong High-Tech Industrial Park was terminated on July 26, 2023, due to the buyer's failure to obtain project approval[50] - The company provided guarantees for customer bank loans totaling HKD 4,770,000 as of September 30, 2023, down from HKD 21,991,000 on March 31, 2023[44] - The company had capital commitments of HKD 192,650,000 for the acquisition of property, plant, and equipment as of September 30, 2023, up from HKD 178,850,000 on March 31, 2023[46]

Financial Performance - The company's revenue for the fiscal year ending March 31, 2023, was HKD 5,896,349,000, representing a year-on-year growth of 10%[8]. - The profit attributable to equity holders decreased by 14.9% to HKD 532,235,000, with a net profit margin of 9.0%[10]. - The operating profit decreased by 14.5% to HKD 677,474,000, with an operating profit margin of 11.5%[10]. - The gross profit margin declined to 27.1%, down from 29.2% in the previous year[10]. - The company reported a net income of HKD 99,903,000 for the fiscal year ending March 31, 2023, compared to HKD 375,823,000 in the previous year[90]. - Basic and diluted earnings per share for the year were both HKD 38.7, down from HKD 45.6 in the previous year[109]. - Total comprehensive income for the year was HKD 262,329,000, a decrease of 67.0% from HKD 795,363,000 in the prior year[110]. - The company plans to focus on market expansion and new product development to drive future growth[109]. Assets and Liabilities - The total assets increased by 12.4% to HKD 8,539,878,000, while total borrowings rose by 50.7% to HKD 1,641,046,000[11]. - The net asset value increased by 4.1% to HKD 3,855,716,000, while current assets decreased by 5.0% to HKD 1,275,782,000[11]. - The company's debt-to-equity ratio was approximately 26.9% as of March 31, 2023, up from 13.8% a year earlier[22]. - The total outstanding loans as of March 31, 2023, were HKD 1,641,046,000, with about 84.6% classified as short-term loans[22]. - The total liabilities rose to HKD 4,684,162,000 in 2023, up from HKD 3,896,525,000 in 2022, which is an increase of approximately 20.23%[106]. Market and Industry Trends - The Chinese new energy vehicle industry saw production and sales of 7.058 million and 6.887 million units respectively, marking year-on-year growth of 96.7% and 93.4%[8]. - In 2022, global sales of new energy vehicles reached 10.824 million units, a year-on-year increase of 61.6%, with a market share of 13.6%[18]. - In China, new energy vehicle sales were approximately 6.887 million units, growing by 93.4% year-on-year, achieving a market share of 25.6%, an increase of 12.1 percentage points[18]. Research and Development - The company plans to enhance R&D investments and launch advanced technologies to support the development of integrated die-casting solutions for the new energy vehicle sector[8]. - The company is focusing on the development of integrated die-casting energy storage shells, which are expected to see significant market growth in the future[20]. - The company has over 300 patents and has participated in the formulation of 2 international standards, 18 national standards, and 8 industry standards[21]. Corporate Governance - The company has maintained good corporate governance practices and has complied with the principles of the Corporate Governance Code as per the Hong Kong Stock Exchange rules[34]. - The board of directors includes experienced individuals with extensive backgrounds in various industries, contributing to strategic planning and management[30][31][32][33]. - The company has a commitment to maintaining high standards of corporate governance, as evidenced by its adherence to the Corporate Governance Code[34]. Employee and Management - The company has a total of 5,193 employees as of March 31, 2023, comprising 4,431 males (85%) and 762 females (15%)[42]. - Employee costs for the year amounted to HKD 960,485,000, an increase from HKD 873,032,000 in the previous year, with approximately 5,193 full-time employees as of March 31, 2023[91]. - The management team has over 30 years of experience in asset investment analysis in the Hong Kong and China stock markets, enhancing the company's strategic insights[32]. Risk Management - The company has engaged a professional consulting firm to enhance its risk management system and assist in the annual assessment of significant risks related to its operations[48]. - The audit committee is responsible for reviewing the effectiveness of the group's risk management and internal control systems[47]. - The company has identified several key risks that could impact its strategic objectives, which are prioritized based on their likelihood and significance[49]. Cash Flow and Capital Expenditures - The net cash generated from operating activities in fiscal year 2023 was HKD 99,375,000[14]. - The company incurred capital expenditures of HKD 430,077,000 for the purchase of property, plant, and equipment, down from HKD 461,665,000 in the previous year[114]. - The company plans to gradually utilize the remaining net proceeds of HKD 10,327,000 for the acquisition of properties, plants, and equipment over the next 12 months[90]. Shareholder Information - The company plans to distribute a final dividend of HKD 0.045 per share for the year ending March 31, 2023, subject to shareholder approval, compared to HKD 0.04 per share for the previous year[58]. - The company has adopted a dividend policy to distribute at least 30% of the annual distributable profits as dividends, depending on profitability and financial conditions[53]. - The company’s major shareholder, Girgio Industries Limited, held approximately 64.7% of the total issued share capital as of the approval date[66].

Financial Performance - Revenue for the year ended March 31, 2023, was HKD 5,896,349 thousand, representing a 10.0% increase from HKD 5,362,474 thousand in 2022[2] - Gross profit increased to HKD 1,596,687 thousand, with a gross margin of 27.1%, down from 29.2% in the previous year[2] - Operating profit decreased by 14.5% to HKD 677,474 thousand, with an operating margin of 11.5% compared to 14.8% in 2022[2] - Net profit attributable to shareholders was HKD 532,235 thousand, a decline of 14.9% from HKD 625,509 thousand in the prior year[2] - The company reported a net profit margin of 9.0%, down from 11.7% in the previous year[2] - Basic and diluted earnings per share decreased to HKD 38.7, down 15.1% from HKD 45.6 in 2022[2] - The group reported a total profit attributable to owners of the company of 532,235,000 HKD for the year ending March 31, 2023, down from 625,509,000 HKD, which is a decrease of approximately 14.9%[32] Assets and Liabilities - Total assets increased by 12.4% to HKD 8,539,878 thousand, up from HKD 7,599,524 thousand in 2022[2] - Total liabilities as of March 31, 2023, were HKD 3,896,525,000, with allocated liabilities of HKD 3,840,514,000[19] - Total borrowings rose significantly by 50.7% to HKD 1,641,046 thousand, compared to HKD 1,088,637 thousand in the previous year[2] - The debt-to-equity ratio was approximately 26.9% as of March 31, 2023, compared to 13.8% on March 31, 2022[54] - The total outstanding borrowings were HKD 1,641,046,000 as of March 31, 2023, up from HKD 1,088,637,000 on March 31, 2022, with about 84.6% being short-term loans[54] Segment Performance - Revenue from the die-casting segment was HKD 4,427,861,000, representing a 15.9% increase from HKD 3,816,178,000 in the previous year[15] - Revenue from the injection molding segment was HKD 1,191,013,000, a decrease of 12.7% from HKD 1,365,111,000 in the previous year[15] - CNC machining center revenue was HKD 277,475,000, up from HKD 181,185,000, marking a 53.2% increase year-over-year[15] - Total segment revenue for the year was HKD 6,019,468,000, an increase of 12.2% compared to HKD 5,453,010,000 in the previous year[15] Cash Flow and Financing - Net cash generated from operating activities for the year ended March 31, 2023, was HKD 99,375,000, a decrease of 45.4% from HKD 182,703,000 in 2022[9] - Cash and cash equivalents increased by 5.0% to HKD 605,365 thousand, compared to HKD 576,790 thousand in the previous year[2] - The group’s financing income was HKD 6,760,000, while financing costs totaled HKD 53,936,000, leading to a net financing cost of HKD 47,176,000[15] - The company reported a net financing cost of HKD 53,936,000 for the year ending March 31, 2023, compared to HKD 33,572,000 in the previous year[26] Employee and Operational Costs - Employee costs for the year ending March 31, 2023, were HKD 960,485,000, compared to HKD 873,032,000 in the previous year[25] - Depreciation and amortization expenses for the year ending March 31, 2023, totaled HKD 185,482,000[20] - The company aims to optimize supply chain management to reduce procurement costs and improve logistics efficiency[51] - The company is focusing on digital transformation and automation to enhance production efficiency and reduce labor costs[51] Research and Development - The company plans to enhance its R&D investment and innovation to maintain its leading technological advantage in the industry[52] - The company has over 300 patents and has participated in the formulation of 2 international standards, 18 national standards, 8 industry standards, and 2 group standards[52] - The company is focusing on research and development of large and super-large die-casting machines for automotive chassis, aligning with industry trends[48] Market and Strategic Initiatives - The company is strategically expanding its overseas market presence to enhance competitiveness and solidify its industry leadership[40] - The company plans to expand its overseas market presence by establishing new production bases and service centers in regions like Mexico, India, and Eastern Europe[49] - The company has successfully established strategic partnerships with several new energy vehicle manufacturers, enhancing its customer base in the automotive sector[44] - The demand for energy storage solutions is increasing significantly, with the company positioning itself to capitalize on this growth through integrated die-casting technology[48] Corporate Governance - The company has adhered to the corporate governance code as of March 31, 2023[64] - The Audit Committee, consisting of four independent non-executive directors, has reviewed the audited consolidated financial statements for the year ending March 31, 2023[66] - The financial data for the year ending March 31, 2023, has been verified by the auditor, PricewaterhouseCoopers, but no audit opinion was issued on the preliminary announcement[67] Upcoming Events - The company will hold its Annual General Meeting on September 6, 2023, and will suspend share registration from September 1 to September 6, 2023[62] - To qualify for the final dividend, share registration will be suspended from September 14 to September 18, 2023, with documents due by September 13, 2023[63]

Financial Performance - Revenue for the six months ended September 30, 2022, was HKD 2,860,238,000, an increase of 3.1% compared to HKD 2,773,518,000 in the same period last year[3]. - Gross profit decreased to HKD 786,158,000, down 2.4% from HKD 805,456,000, resulting in a gross margin of 27.5%, a decline of 1.5% year-on-year[3]. - Operating profit fell by 17.3% to HKD 343,164,000, with an operating margin of 12.0%, down from 15.0% in the previous year[3]. - Profit attributable to owners decreased by 16.3% to HKD 271,193,000, with a net profit margin of 9.5%, down from 11.7%[3]. - The company reported a decrease in cash and cash equivalents to HKD 610,977,000 from HKD 576,790,000, representing an increase of 5.9%[39]. - The company reported a net loss of HKD 10,928,000 from foreign exchange, contrasting with a gain of HKD 7,283,000 in the previous year[93]. - The total comprehensive loss for the six months ended September 30, 2022, was HKD 90,437,000, compared to a total comprehensive income of HKD 271,193,000 for the same period in 2021[44]. - Basic earnings per share for the period was HKD 19.7, down from HKD 23.7 in the previous year, a decline of 16.8%[41]. Assets and Liabilities - Total assets increased by 2.0% to HKD 7,747,910,000, while net assets decreased by 3.9% to HKD 3,559,470,000[4]. - Total liabilities increased to HKD 4,188,440,000 from HKD 3,896,525,000, reflecting a rise of 7.5%[40]. - The total value of property, plant, and equipment as of September 30, 2022, was HKD 1,485,228,000[68]. - The fair value of investment properties as of September 30, 2022, is HKD 598,730,000, a decrease from HKD 651,754,000 as of March 31, 2022[75]. - The net amount of trade receivables and notes receivable as of September 30, 2022, is HKD 2,097,316,000, compared to HKD 2,018,270,000 as of March 31, 2022[77]. Cash Flow and Financing - Operating cash flow for the six months ended September 30, 2022, was a net outflow of HKD 83,363,000, a significant decrease from the inflow of HKD 292,227,000 in the previous year[46]. - The company incurred capital expenditures of HKD 167,505,000 for the purchase of property, plant, and equipment during the reporting period[46]. - Financing costs increased by 25.9% to HKD 18,913,000 due to higher bank loan interest expenses[6]. - The company’s financing activities generated a net cash inflow of HKD 425,770,000, compared to HKD 264,300,000 in the prior year[46]. Employee and Compensation - As of September 30, 2022, the group employed approximately 4,900 full-time staff, with employee costs amounting to HKD 462,309,000, an increase of 12.4% from HKD 411,362,000 in the previous year[11]. - The company’s employee compensation policy is determined based on market trends, future plans, and individual performance, including mandatory provident fund contributions and stock option plans[11]. - Total remuneration for directors and key management personnel for the six months ended September 30, 2022, was HKD 12,540,000, a decrease of 28.0% from HKD 17,467,000 in the previous year[111]. Share Options and Incentives - The company has granted a total of 27,540,000 share options to 390 employees as of September 24, 2021[11]. - The exercise price for the stock options is set at HKD 19.86[21]. - The stock options can be exercised in three tranches based on specific performance criteria, with 40% vesting after two years[24]. - The share option plan is valid for ten years from the date of adoption[24]. - The share option plan is designed to attract and retain individuals whose contributions are vital to the company's performance and success[82]. Market and Expansion - The group is focusing on expanding into overseas markets, establishing new teams in Southeast Asia, Europe, and America[7]. - The company plans to continue its focus on the design, manufacturing, and sales of die-casting machines and related equipment, aiming for market expansion and technological advancements[47]. - Revenue from die-casting machines reached HKD 2,050,390,000 for the six months ended September 30, 2022, compared to HKD 1,889,649,000 in the same period last year, representing an increase of 8.5%[92]. Corporate Governance - The audit committee consists of four independent non-executive directors, with the main responsibility of reviewing and supervising the group's financial reporting processes[34]. - The company has complied with all corporate governance code provisions during the review period[33]. - The company has confirmed compliance with the standard code for securities transactions by all directors during the review period[35].

Financial Performance - Revenue for the fiscal year reached HKD 5,362,474,000, a 33.4% year-on-year increase[8][9] - Net profit attributable to shareholders was HKD 625,509,000, up 82% compared to the previous year[8][9] - Gross profit margin improved to 29.2%, a 1.5% increase from the previous year[9] - Operating profit increased by 54.0% to HKD 792,515,000, with an operating profit margin of 14.8%[9] - Revenue for the fiscal year 2022 increased to 5,362,474 thousand HKD, up from 4,021,206 thousand HKD in 2021, representing a growth of approximately 33.4%[94] - Gross profit rose to 1,566,400 thousand HKD in 2022, compared to 1,115,283 thousand HKD in 2021, reflecting a 40.5% increase[94] - Net profit attributable to the company's owners surged to 625,509 thousand HKD in 2022, up from 343,667 thousand HKD in 2021, marking an 82.1% growth[94] - Earnings per share (basic) for 2022 stood at 45.6 HKD cents, up from 26.2 HKD cents in 2021, reflecting a 74.0% increase[94] - Total comprehensive income attributable to the company's owners reached 795,363 thousand HKD in 2022, up from 510,357 thousand HKD in 2021[95] Asset and Liability Growth - Total assets grew by 38.7% to HKD 7,599,524,000, while net assets increased by 50.5% to HKD 3,702,999,000[10] - Total assets expanded to 7,599,524 thousand HKD in 2022, a significant increase from 5,478,376 thousand HKD in 2021, indicating a 38.7% rise[91] - Total equity grew to 3,702,999 thousand HKD in 2022, up from 2,461,272 thousand HKD in 2021, showing a 50.5% increase[91] - Total liabilities increased to 3,896,525 thousand HKD in 2022, compared to 3,017,104 thousand HKD in 2021, showing a 29.1% rise[92] - Total equity increased to 3,702,999 thousand HKD as of March 31, 2022, compared to 2,461,272 thousand HKD in the previous year[97] Market and Revenue Breakdown - Overseas market revenue was HKD 971,171,000, a 6.0% year-on-year increase, driven by recovery in Europe[12] - Revenue from the Chinese market surged by 41.4% to HKD 4,391,303,000, supported by strong demand in the automotive sector[12] - New energy vehicle production and sales in China reached 3.545 million and 3.521 million units respectively, a 1.6-fold increase year-on-year[12] - The penetration rate of new energy passenger vehicles in China rose to 14.8% in 2021, up from 5.8% in 2020[12] - Revenue from external sales for Die Casting Machines was 3,816,178 thousand HKD, Injection Molding Machines was 1,365,111 thousand HKD, and CNC Machining Centers was 181,185 thousand HKD for the year ended March 31, 2022[198] - Total revenue from external sales across all segments was 5,362,474 thousand HKD for the year ended March 31, 2022[198] Cost and Expense Management - Financing costs decreased by 44.7% to HKD 26,851,000 due to reduced bank loans[12] - The company's supply chain system for new energy vehicles has grown significantly, leading to cost reductions and improved product quality[13] - Employee costs amounted to HKD 873,032,000 (2021: HKD 614,622,000)[76] - Administrative expenses were 37,126 thousand HKD for the year ended March 31, 2022[198] - Finance income was 6,721 thousand HKD for the year ended March 31, 2022[198] Corporate Governance and Leadership - The company's CEO, Liu Zhuoming, has extensive experience in business operations and management, holding a Bachelor's degree in Computer Science from Oregon State University[14] - The company's Chairman, Zhang Qiaoying, has over 34 years of management experience and is responsible for strategic planning, administration, and human resources[14] - The company's Executive Director, Xie Xiaosi, has over 32 years of experience in production management, sales, and marketing[14] - The company's Independent Non-Executive Director, Liu Shaoji, has over 30 years of teaching and research experience in mechanical engineering[14] - The company's Independent Non-Executive Director, Lu Dong, has over 30 years of experience in asset investment analysis in Hong Kong and China's stock markets[16] - The Board of Directors consists of 3 executive directors and 4 independent non-executive directors, ensuring a balanced structure and independent judgment[19] - The roles of Chairman and CEO are separated, with Ms. Zhang Qiaoying serving as Chairman and Mr. Liu Zhuoming as CEO[22] Risk Management and Internal Controls - The company has a robust risk management and internal control system in place to achieve strategic objectives and protect shareholder investments[32] - The company's risk management framework includes an annual enterprise risk assessment conducted by the Group Risk Director[34] - The internal audit department plays a crucial role in monitoring the effectiveness of the company's internal control systems[35] - The company's risk management and internal control systems were reviewed and deemed effective and sufficient by the Board of Directors[36] - The company has established an insider information disclosure policy to ensure compliance with securities and futures regulations and listing rules[37] Dividend and Shareholder Returns - The company's dividend policy aims to distribute at least 30% of the annual distributable profits as dividends, subject to the Board's discretion[38] - The company paid an interim dividend of 6 HK cents per share for the period ended September 30, 2021, and proposed a final dividend of 4 HK cents per share for the year ended March 31, 2022[40] - The company issued bonus shares at a ratio of 1 new bonus share for every 10 existing shares held by shareholders as of September 15, 2021[41] - Dividends paid during the year amounted to 120,121 thousand HKD, reflecting the company's commitment to shareholder returns[97] Research and Development - The company is focusing on R&D breakthroughs in die-casting machines, injection molding machines, and CNC machining centers to meet evolving customer needs[13] - The company is contributing to the innovation of new energy vehicle manufacturing processes, leveraging the rapid growth of the global new energy vehicle sector[13] Capital and Financing Activities - The company completed a placement and subscription of 60,000,000 shares at a price of HKD 9.50 per share, representing a discount of approximately 9.00% to the last closing price of HKD 10.44[68] - The net proceeds from the placement and subscription amounted to approximately HKD 562,546,000, with HKD 386,150,000 allocated to enhancing production efficiency and capacity, and HKD 176,396,000 for general working capital[70] - As of March 31, 2022, HKD 358,521,000 of the net proceeds had been utilized for enhancing production efficiency and capacity, with HKD 258,618,000 spent on property, plant, and equipment, and HKD 99,903,000 on land use rights and deposits[71] - The remaining HKD 27,629,000 of the net proceeds is planned to be used for purchasing property, plant, and equipment at Fuxin Jingda Precision Machinery Co., Ltd. over the next 24 months[71] Inventory and Trade Receivables - Inventory held by the company amounted to HKD 1,713,348,000 as of March 31, 2022, up from HKD 1,147,324,000 in 2021[84] - Inventory impairment provisions were HKD 128,467,000 in 2022, a decrease from HKD 147,108,000 in 2021[85] - Accounts receivable totaled HKD 1,672,937,000 as of March 31, 2022, an increase from HKD 1,195,060,000 in 2021[83] - Impairment provisions for accounts receivable were HKD 137,005,000 in 2022, compared to HKD 135,297,000 in 2021[83] - The company's trade receivables are subject to an expected credit loss model, with provisions based on historical credit loss rates adjusted for macroeconomic factors[165] Segment Reporting - The company operates in three main reportable segments: Die Casting Machines, Injection Molding Machines, and CNC Machining Centers[197] - Revenue from external sales for Die Casting Machines was 3,816,178 thousand HKD, Injection Molding Machines was 1,365,111 thousand HKD, and CNC Machining Centers was 181,185 thousand HKD for the year ended March 31, 2022[198] - Segment performance for Die Casting Machines was 660,866 thousand HKD, Injection Molding Machines was 152,148 thousand HKD, and CNC Machining Centers was 16,627 thousand HKD for the year ended March 31, 2022[198] - Total segment performance across all segments was 829,641 thousand HKD for the year ended March 31, 2022[198] Cash Flow and Liquidity - Operating cash flow from business activities decreased to HK$182.7 million in 2022 from HK$771.1 million in 2021[99] - Net cash used in investing activities increased significantly to HK$601.9 million in 2022 from HK$228.5 million in 2021, primarily due to increased purchases of property, plant, and equipment (HK$461.7 million) and land use rights (HK$85.2 million)[99] - Net cash from financing activities improved to HK$396.2 million in 2022 from a net cash outflow of HK$706.0 million in 2021, driven by share placement proceeds of HK$562.5 million[99] - Cash and cash equivalents decreased by HK$22.9 million in 2022, ending the year at HK$576.8 million[99] Accounting and Financial Reporting - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRS) and the Hong Kong Companies Ordinance[102] - The company adopted revised standards related to interest rate benchmark reform and COVID-19-related rent concessions effective April 1, 2021[103] - Several new and amended accounting standards and interpretations have been issued but not yet adopted, with effective dates starting from April 1, 2022, and April 1, 2023[105] - The company is evaluating the impact of adopting new and amended standards and interpretations, but does not expect them to have a significant impact on current or future reporting periods[105] Shareholder and Equity Information - Girgio holds 848,078,004 shares, representing 61.62% of the company's equity[52] - HSBC International Trustee Limited, as trustee of the Liu Family Trust, holds 95% of Full Profit Asset Limited, which owns 95% of Girgio, giving it an indirect 61.62% stake in the company[53] - Cantrust (Far East) Limited holds 132,264,999 shares, representing 9.61% of the company's equity[52] - Zhang Qiaoying holds 3,105,000 shares directly, representing 0.23% of the company's equity[49] - Liu Zhuoming holds 1,000,000 shares directly, representing 0.07% of the company's equity[49] - Liu Xiangshang, Zhang Qiaoying's spouse, holds 5,722,750 shares, representing 0.42% of the company's equity[49] - Xie Xiaosi holds 50,000 shares through his spouse's stock options, representing 0.004% of the company's equity[49] Stock Options and Compensation - The company granted a total of 27,540,000 stock options to 390 eligible individuals on September 24, 2021[55] - The company granted stock options to several directors and employees, with specific numbers and exercise periods detailed for each individual[57][59] - The total number of shares that may be issued upon the exercise of all stock options granted under the plan and any other plans of the group shall not exceed 113,326,500 shares, representing 10% of the company's issued share capital as of the approval date of the stock option plan[64] - The maximum number of shares that may be issued upon the full exercise of all stock options granted but not yet exercised under the stock option plan and any other plans of the group shall not exceed 30% of the company's issued shares from time to time[64] - The exercise price of any specific stock option shall be determined by the board at its absolute discretion at the time of granting the relevant stock option, but shall not be lower than the highest of: (i) the par value of the company's shares; (ii) the closing price of the company's shares on the offer date[64] - The stock options are subject to vesting conditions, with 40% vesting after the second anniversary of the grant date, 30% after the third anniversary, and 30% after the fourth anniversary, provided that specific performance indicators for the applicable fiscal year are met[61] - The company's stock option plan aims to provide eligible individuals with the opportunity to own shares in the company, incentivize them to enhance their future performance and efficiency, and reward their past contributions[63] Environmental and Social Responsibility - The company made charitable donations totaling HKD 683,000 during the year[43] Foreign Exchange and Interest Rate Sensitivity - The company's pre-tax profit would decrease/increase by HKD 8,139,000/HKD 10,886,000 if interest rates increase/decrease by 100 basis points, based on the sensitivity analysis as of March 31, 2022[161] - A 5% depreciation/appreciation of RMB against HKD would result in a decrease/increase of approximately HKD 4,741,000 in pre-tax profit for the year ended March 31, 2022[162] - A 5% depreciation/appreciation of USD against RMB would result in a decrease/increase of approximately HKD 982,000 in pre-tax profit for the year ended March 31, 2022[163] - The company does not have a foreign currency hedging policy but monitors forex risks and may hedge significant exposures if needed[163] Audit and Compliance - The company's auditor, PwC, confirmed that the consolidated financial statements were prepared in accordance with Hong Kong Financial Reporting Standards[79] - Key audit matters identified included the recoverability of trade receivables and inventory write-down provisions[82] - The company's auditor, PwC, confirmed its independence from the company and compliance with professional ethical responsibilities[81] Property, Plant, and Equipment - Property, plant, and equipment increased to 1,476,984 thousand HKD in 2022, up from 1,173,530 thousand HKD in 2021, marking a 25.9% rise[91] - Property, plant, and equipment are recorded at historical cost less depreciation, with subsequent costs capitalized only if future economic benefits are probable and costs can be reliably measured[118] - Depreciation is allocated on a straight-line basis over the estimated useful lives of assets, with buildings having a useful life of up to 50 years[120] Investment Properties - Investment properties are measured at fair value, with changes in fair value recognized in the consolidated income statement as part of "other net income"[119] - Revaluation gains on property, plant, and equipment transferred to investment properties amounted to 84,315 thousand HKD in 2022, a new addition compared to the previous year[95] Goodwill and Intangible Assets - Goodwill is allocated to cash-generating units and tested for impairment annually or when events indicate potential impairment[121] - Trademarks are amortized on a straight-line basis over a useful life of no more than 10 years[122] - Development costs are capitalized as intangible assets only if future economic benefits are probable, with amortization over a useful life of no more than 5 years[123] - Land use rights are amortized on a straight-line basis over the lease term, which ranges from 44 to 50 years[124] Financial Instruments - Financial assets are classified into categories based on their measurement criteria: fair value through profit or loss, fair value through other comprehensive income, and amortized cost[126] - Debt instruments are measured based on the company's business model and cash flow characteristics, with three measurement categories: amortized cost, fair value through other comprehensive income, and fair value through profit or loss[129] - Equity investments are subsequently measured at fair value, with fair value gains and losses recognized in other comprehensive income if elected by management[130] - The company assesses expected credit losses for debt instruments measured at amortized cost using a forward-looking approach[131] - Financial assets and liabilities can be offset if there is a legally enforceable right to set off and the intention to settle on a net basis[132] Inventory and Trade Payables - Inventories are measured at the lower of cost and net realizable value, with cost determined using the FIFO method[133] - Trade receivables are initially recognized at the unconditional amount due, unless there is a significant financing component, in which case they are recognized at fair value[134] - Trade payables and other payables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method[136] Borrowings and Financial Liabilities - Borrowings are initially recognized at fair value less transaction costs and subsequently measured at amortized cost, with any difference between the proceeds and redemption value recognized in the comprehensive income statement using the effective interest method[139] - Borrowing costs directly attributable to the acquisition, construction, or production of qualifying assets are capitalized as part of the cost of those assets until they are substantially ready for their intended use or sale[140] Taxation - Current tax expense is calculated based on taxable income at the applicable tax rates in each jurisdiction, adjusted for changes in deferred tax assets and liabilities arising from temporary differences and unused tax losses[141] - Deferred tax is recognized for temporary differences between the tax base and the

Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 2,773,518,000, representing a year-on-year increase of 59.9%[4] - Gross profit increased to HKD 805,456,000, with a gross margin of 29.0%, up 2.4% from the previous year[4] - Profit attributable to owners of the company surged to HKD 323,845,000, a significant increase of 186.2% compared to HKD 113,151,000 in the same period last year[4] - The operating profit for the six months ended September 30, 2021, was HKD 415,114,000, significantly up from HKD 181,943,000 in the previous year, indicating a growth of about 128%[49] - Total comprehensive income for the six months ended September 30, 2021, was HKD 372,447,000, an increase from HKD 168,546,000 in the same period of 2020, representing a significant growth of approximately 121.5%[55] - The net profit attributable to the company's owners for the same period was HKD 323,845,000, compared to HKD 113,151,000 in 2020, marking an increase of approximately 186%[52] Revenue Breakdown - Revenue from the die-casting machine and related equipment business was HKD 1,889,649,000, up 68.9% year-on-year[7] - Revenue from the injection molding machine business was HKD 785,449,000, representing a year-on-year increase of 39.2%[7] - The CNC machining center business generated revenue of HKD 98,420,000, marking a 90.0% increase compared to the previous year[7] - The revenue from the die-casting segment was HKD 1,889,649,000, while the injection molding segment generated HKD 785,449,000, and the CNC machining center contributed HKD 98,420,000 for the six months ended September 30, 2021[77] Assets and Liabilities - The total assets of the company reached HKD 6,724,759,000, reflecting a growth of 22.8% from HKD 5,478,376,000[5] - The company's total equity reached HKD 3,362,503,000 as of September 30, 2021, compared to HKD 2,461,272,000 at the end of March 2021, indicating an increase of about 36.5%[47] - The company’s total liabilities as of September 30, 2021, were HKD 3,362,256,000, compared to HKD 3,017,104,000, reflecting an increase of about 11.4%[48] - The total value of assets pledged for bank financing and financial guarantee contracts was HKD 801,534,000 as of September 30, 2021, up from HKD 685,225,000 as of March 31, 2021[14] Cash Flow and Financial Position - The net cash and cash equivalents increased to HKD 961,377,000, a rise of 63.4% compared to HKD 588,391,000[5] - The company reported a net cash flow from operating activities of HKD 292,227,000 for the six months ended September 30, 2021, compared to HKD 305,691,000 in the same period of 2020, reflecting a decrease of approximately 4.8%[57] - The company’s cash and cash equivalents increased by HKD 368,060,000 during the six months ended September 30, 2021, compared to a decrease of HKD 135,956,000 in the same period of 2020[57] Shareholder Information - As of September 30, 2021, Girgio held 848,078,004 shares, representing 61.62% of the company[23] - The company issued a total of 27,540,000 stock options to 390 employees on September 24, 2021[16] - The company declared an interim dividend of HKD 0.06 per share for the six months ended September 30, 2021, compared to HKD 0.03 per share in 2020, reflecting a 100% increase[33] Employee and Management Costs - Employee costs for the review period amounted to HKD 411,362,000, an increase from HKD 269,747,000 in the previous year[16] - The total remuneration for directors and key management personnel for the six months ended September 30, 2021, was 18,220,000 HKD, compared to 9,208,000 HKD in 2020, representing an increase of approximately 97.8%[128] Corporate Governance and Compliance - The company has complied with all corporate governance codes as per the Stock Exchange's listing rules during the review period[38] - The audit committee reviewed the unaudited condensed consolidated interim financial information for the six months ended September 30, 2021[40] Future Outlook - The company remains optimistic about future business development, supported by sufficient orders and a recovering global economy[10] - The focus on R&D for die-casting machines, injection molding machines, and CNC machining centers continues to drive the company's growth strategy[10] - The company plans to continue expanding its market presence and investing in research and development for new products[115]

Financial Performance - The group's revenue for the fiscal year ended March 31, 2021, was HKD 4,021,206,000, representing a year-on-year growth of 46.4%[14] - Profit attributable to equity holders for the same period was HKD 343,667,000, a significant increase from HKD 3,278,000 in the previous year[17] - Revenue from the Chinese market was HKD 3,104,819,000, reflecting a year-on-year increase of 54.1%[17] - Revenue from overseas markets reached HKD 916,387,000, marking a year-on-year growth of 25.4%[17] - The group's die-casting machine and related equipment business revenue reached HKD 2,657,244,000, representing a year-on-year increase of 40.6%[20] - Revenue from the CNC machining center business was HKD 118,416,000, up 19.0% year-on-year, with operational losses further controlled[20] - Revenue from the Chinese market for die-casting machines was HKD 1,865,589,000, reflecting a year-on-year increase of 46.8%[20] - Injection molding machine business revenue was HKD 1,245,546,000, showing a year-on-year increase of 64.7%[20] - The overall gross profit margin for the group was 27.7%, an increase of 1.5% compared to the same period last year, attributed to improved operational efficiency[20] - The company reported a total comprehensive income of HKD 510,357 thousand for the year, compared to a loss of HKD 135,700 thousand in the previous year[121] - The company reported a net profit attributable to owners of HKD 3,278 million for the year ended March 31, 2021, compared to a loss of HKD 138,288 million in the previous year[126] - Operating profit increased significantly to HKD 514,780 thousand from HKD 130,999 thousand, marking a 292.5% rise[119] - Basic and diluted earnings per share for the year were both HKD 28.8, compared to HKD 0.3 in 2020[119] Market and Industry Insights - The automotive industry in China showed a V-shaped recovery, with vehicle sales gradually improving since the second quarter of 2020[17] - The impact of the COVID-19 pandemic has been significant, but effective control measures have led to a recovery in the economy and automotive sales[17] - The company is focused on expanding its overseas market presence, particularly in the United States and India[12] - The company plans to accelerate the launch of new products to enhance market competitiveness and provide comprehensive die-casting solutions for new energy vehicles[14] Corporate Governance - The company is led by experienced executives, including Riccardo Ferrario, who has over 35 years in the light alloy casting industry, and Pan Lingling, who has extensive experience in R&D management and marketing[27] - The board of directors meets at least four times a year to review financial performance and approve significant matters, ensuring good corporate governance practices[30] - The roles of the chairman and CEO are separated, with Zhang Qiaoying as chairman and Liu Zhuoming as CEO, ensuring clear distinction in responsibilities[34] - Continuous professional development is emphasized, with training records maintained for directors to keep them updated on legal and regulatory changes[35] - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced structure with independent judgment[30] - Independent non-executive directors have confirmed their independence according to listing rules, contributing valuable guidance to the company's development[30] - The company has a structured process for directors to seek independent professional advice at the company's expense when necessary[33] - The board actively participates in meetings, ensuring that all members are well-informed and can make informed decisions[30] - The company is committed to maintaining transparency and compliance with corporate governance codes, regularly reviewing its policies and practices[33] Risk Management - The board acknowledged its responsibility for establishing and maintaining an effective risk management and internal control system[47] - The board is responsible for the risk management and internal control systems, continuously monitoring risk exposure and management effectiveness[48] - The group has identified several key risks affecting strategic objectives, which are ranked by likelihood and impact during the annual risk assessment[50] - The internal audit department plays a crucial role in monitoring the effectiveness of the internal control system and reports directly to the audit committee[51] - The board has reviewed the effectiveness of the risk management and internal control systems and considers them adequate and effective[52] Shareholder Relations and Dividends - The company has adopted a dividend policy to distribute at least 30% of the annual distributable profits as dividends, subject to board discretion[54] - The company reported a final dividend of HKD 0.03 per share for the year ended March 31, 2021, which is an increase from zero in the previous year[58] - The total reserves available for distribution to shareholders as of March 31, 2021, amounted to HKD 636,928,000, consisting of share premium of HKD 579,809,000 and retained earnings of HKD 57,119,000[62] - The company plans to issue one bonus share for every ten shares held, pending approval at the upcoming annual general meeting[59] Financial Position and Cash Flow - Total assets increased to HKD 5,478,376 thousand from HKD 4,999,005 thousand, a growth of 9.6%[116] - Total liabilities remained relatively stable at HKD 3,017,104 thousand, slightly up from HKD 3,012,353 thousand[116] - The company's reserves rose to HKD 1,014,472 thousand from HKD 833,428 thousand, an increase of 21.7%[116] - Cash and cash equivalents decreased to HKD 588,391 thousand from HKD 713,793 thousand, a decline of 17.5%[116] - Operating cash flow from operating activities was HKD 771,063 million, significantly up from HKD 170,524 million in the previous year, indicating strong operational performance[129] - The company incurred a net cash outflow from investing activities of HKD 228,518 million, compared to HKD 75,154 million in the previous year, reflecting increased investment in property, plant, and equipment[129] - The company raised new bank loans amounting to HKD 957,777 million, while repaying bank loans of HKD 1,525,731 million during the year[129] Compliance and Legal Matters - The company confirmed compliance with relevant laws and regulations, with no significant violations reported during the year[58] - The company has maintained appropriate insurance for potential legal claims arising from the duties of directors and senior officers[101] - The audit opinion confirmed that the consolidated financial statements reflect a true and fair view of the group's financial position as of March 31, 2021[98] - The audit was conducted in accordance with the Hong Kong auditing standards, ensuring independence and adherence to ethical responsibilities[99] Employee and Operational Insights - Employee costs for the year were HKD 614,622,000, up from HKD 537,257,000 in 2020[101] - The group employed approximately 4,000 full-time employees as of March 31, 2021[101] - The group’s remuneration policy is determined based on market trends, future plans, and individual performance, including various employee benefits[101] Investment and Asset Management - The company is exploring the feasibility of restructuring and the potential listing of a subsidiary engaged in injection molding business on a Chinese exchange[90] - The group adopts the acquisition method for business combinations, measuring the transferred consideration at fair value, including any contingent consideration arrangements[138] - Investments in associates are accounted for using the equity method, with the initial investment recognized at cost and adjusted for the investor's share of post-acquisition profits or losses[146]

Financial Performance - The group recorded revenue of HKD 1,734,642,000 for the six months ended September 30, 2020, representing a year-on-year increase of 19.2%[4] - Profit attributable to owners of the company surged to HKD 113,151,000, compared to HKD 15,893,000 in the same period last year[4] - Revenue from the Chinese market reached HKD 1,358,927,000, a year-on-year growth of 29.1%[4] - Revenue from overseas markets declined to HKD 375,715,000, a decrease of 6.7% year-on-year due to the ongoing pandemic[4] - Revenue for the six months ended September 30, 2020, was HKD 1,734,642,000, an increase of 19.2% compared to HKD 1,455,201,000 for the same period in 2019[31] - Gross profit for the same period was HKD 460,898,000, representing a gross margin of approximately 26.6%[31] - Operating profit increased significantly to HKD 181,943,000, compared to HKD 78,425,000 in the previous year, reflecting a growth of 132.4%[31] - Net profit attributable to the company's owners for the period was HKD 113,151,000, up from HKD 15,893,000, marking a substantial increase[31] - Basic and diluted earnings per share for the period were both HKD 0.095, compared to HKD 0.013 in the previous year[31] - The total comprehensive income attributable to the company's owners for the period was HKD 168,546,000, a turnaround from a loss of HKD 131,107,000 in the previous year[33] Revenue Breakdown - The group's die-casting machine and related equipment business generated revenue of HKD 1,118,759,000, reflecting a year-on-year increase of 15.3%[5] - Revenue from injection molding machines was HKD 564,091,000, marking a year-on-year rise of 28.9%[5] - CNC machining center revenue amounted to HKD 51,792,000, showing a year-on-year increase of 10.6%[5] - Revenue from die-casting machines reached HKD 1,118,759,000, up 15.3% from HKD 970,670,000 in the previous year[84] Expenses and Costs - Sales and distribution expenses rose to HKD 162,924,000, an increase of 13.5% year-on-year, primarily due to higher employee wages and transportation costs[5] - The cost of raw materials and consumables was HKD 1,012,661,000, representing an increase of 27.3% from HKD 795,959,000 in the previous year[86] - Employee benefits expenses totaled HKD 269,747,000, a slight decrease of 2.0% from HKD 277,809,000 in 2019[87] - The company recognized a tax expense of HKD 41,636,000 for the six months ended September 30, 2020, compared to HKD 21,416,000 in the previous year, indicating an increase of 94.3%[89] Assets and Liabilities - Total assets as of September 30, 2020, amounted to HKD 5,122,835,000, an increase from HKD 4,999,005,000 as of March 31, 2020[30] - Total liabilities decreased to HKD 2,967,637,000 from HKD 3,012,353,000, indicating improved financial stability[30] - Current assets totaled HKD 3,294,680,000, slightly up from HKD 3,229,686,000, showing stable liquidity[28] - The company's total outstanding borrowings amounted to HKD 1,434,528,000, a decrease from HKD 1,765,507,000 as of March 31, 2020, with approximately 99.2% being short-term loans[6] - The debt-to-equity ratio was approximately 39.3% as of September 30, 2020, compared to 52.9% on March 31, 2020[6] Cash Flow and Financing - The cash flow from operating activities was HKD 361,864,000, a substantial increase from HKD 62,286,000 in the prior year[38] - The company reported a net financing cost of HKD 27,492,000, a decrease from HKD 39,190,000, indicating improved financing efficiency[31] - The company reported a decrease in cash and cash equivalents of HKD 135,956,000, compared to a decrease of HKD 47,389,000 in the prior year[38] - The company experienced a foreign exchange gain of HKD 55,226,000, compared to a loss of HKD 147,232,000 in the previous year[33] Investments and Commitments - The company has a capital expenditure commitment of HKD 419,801,000 for the acquisition of properties, plants, and equipment as of September 30, 2020, significantly up from HKD 131,293,000 on March 31, 2020[6] - The company invested HKD 84,544,000 in property, plant, and equipment during the period, up from HKD 14,456,000 in the same period last year[38] - The company plans to continue expanding its market presence and investing in new technologies to enhance its competitive edge in the industry[61] Shareholder Information - The company declared an interim dividend of HKD 0.03 per share for the six months ended September 30, 2020, compared to no dividend in 2019[17] - The board declared an interim dividend of HKD 0.03 per share, totaling HKD 35,737,000, compared to no dividend in the previous year[94] Risk Management and Compliance - The group’s financial risk management policies have remained unchanged since the year-end date, addressing market risk, credit risk, and liquidity risk[46] - The financial data for the six months ending September 30, 2020, was prepared in accordance with Hong Kong Accounting Standards (HKAS) No. 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Listing Rules[41]