Financial Performance - The group's revenue for the fiscal year ended March 31, 2020, was HKD 2,746,099,000, a decrease of 23.8% compared to the previous year[9]. - The profit attributable to equity holders for the year was HKD 3,278,000, significantly down from HKD 190,676,000 in the previous year[11]. - Revenue from the group's die-casting machines and related equipment was HKD 1,890,234,000, a decline of 26.0% year-on-year[11]. - Revenue from the Chinese market was HKD 2,015,235,000, down 25.8% year-on-year, with die-casting machine revenue in China at HKD 1,270,517,000, a decrease of 27.1%[11]. - Overseas market revenue was HKD 730,864,000, down 17.8% year-on-year, with die-casting machine revenue from overseas markets at HKD 619,717,000, a decline of 23.5%[11]. - The injection molding machine business generated revenue of HKD 756,390,000, a decrease of 20.3% year-on-year[11]. - The overall gross profit margin for the group was 26.2%, remaining stable compared to the same period last year[12]. - The company reported a net loss of HKD 135,700 thousand for the year, compared to a profit of HKD 30,613 thousand in 2019[83]. - The company’s basic earnings per share for 2020 was HKD 0.3, a significant decrease from HKD 16.0 in 2019[81]. - The company reported a net loss of HKD 163,305,000 in other comprehensive income for the year, highlighting challenges in the market[88]. Market Conditions - The automotive industry faced significant challenges, with China's automotive production and sales down 7.5% and 8.2% respectively in 2019[11]. - The global economic slowdown and the impact of the COVID-19 pandemic have severely affected the manufacturing supply chain and machinery equipment demand[11]. - The outlook for the automotive industry remains pessimistic, which is expected to impact the group's future performance[12]. Cost Management - Selling and distribution expenses decreased by 14.2% to HKD 290,901,000, primarily due to reductions in employee wages, transportation costs, and agency fees[12]. - General and administrative expenses were HKD 333,605,000, down 5.5% year-on-year, mainly due to lower employee wages[12]. - Net financing costs increased by 5.3% to HKD 79,915,000, attributed to rising domestic and foreign loan interest rates[12]. - The company has a total employee cost of HKD 537,257,000 for the year, down from HKD 618,271,000 in the previous year, indicating a reduction of approximately 13%[56]. Corporate Governance - The board of directors is committed to maintaining good corporate governance practices and meets at least four times a year to review financial performance and operational matters[17]. - The company has implemented the corporate governance code as per the Hong Kong Stock Exchange rules and has complied with its provisions[17]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced structure[17]. - The roles of the chairman and the CEO are separated, with clear delineation of responsibilities to ensure effective management[20]. - The company has arranged appropriate insurance for its directors and senior officers against legal actions, ensuring adequate protection[19]. Risk Management - The board is responsible for ensuring the establishment, maintenance, and review of the group's risk management and internal control systems[33]. - The group has engaged a professional consulting firm to enhance its risk management system and assist management in conducting an annual assessment of significant risks[34]. - The risk management framework includes a top-down approach for risk assessment and the implementation of internal controls across various operational areas[34]. - The group has identified several key risks that could impact its strategic objectives, which are prioritized based on their likelihood and potential impact[37]. Shareholder Communication - The company emphasizes effective communication with shareholders and investors, providing opportunities for interaction during annual general meetings[40]. - The company maintains a website to facilitate communication and provide information about its operations and developments[40]. - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special general meeting[41]. Financial Position - Total assets decreased to HKD 4,999,005,000, a decline of 4.2% from HKD 5,220,784,000[77]. - Total equity was HKD 1,986,652,000, down 7.5% from HKD 2,148,560,000 in the previous year[77]. - Cash and cash equivalents increased to HKD 713,793,000, up 12.5% from HKD 634,699,000[77]. - The total liabilities decreased to HKD 3,012,353 thousand in 2020 from HKD 3,072,224 thousand in 2019, reflecting a reduction of 2%[81]. Accounting Policies - The financial statements were prepared in accordance with the disclosure requirements of the Hong Kong Companies Ordinance[64]. - The group has not yet adopted new accounting standards that will take effect on April 1, 2020, including HKFRS 3 (revised) and HKAS 1 and 8 (revised) regarding definitions of business and materiality[95]. - The group has disclosed the cumulative impact of adopting HKFRS 16 in note 2.2.3 of the financial statements[98]. - The group adopts the acquisition method for business combinations, measuring the transferred consideration at fair value, including identifiable assets and liabilities at the acquisition date[103]. Employee Relations - The company confirmed no significant disputes with employees, customers, or suppliers during the year[44]. - The company has established multiple defined contribution plans for employees in Hong Kong and China, with contributions recognized as employee benefit expenses upon due[149]. Investment and Financing - The company has a financing agreement with a maximum amount of HKD 372,000,000 and USD 16,450,000, which is subject to certain conditions regarding the major shareholders[59]. - New bank borrowings in 2020 totaled HKD 972,858,000, slightly up from HKD 946,678,000 in 2019, indicating continued reliance on financing[88]. - The group’s strategy for capital management remains unchanged from 2019, focusing on providing returns to shareholders and maintaining an optimal capital structure[182].

Financial Performance - For the six months ended September 30, 2019, the group recorded revenue of HKD 1,455,201,000, a decrease of approximately 24.5% compared to the same period last year[9]. - Profit attributable to owners of the company was HKD 15,893,000, significantly down from HKD 103,365,000 in the same period last year[9]. - Revenue from the Chinese market was HKD 1,052,707,000, down 32.8% year-on-year[9]. - Overseas revenue increased by 11.4% to HKD 402,494,000 during the review period[9]. - The group's die-casting machine and related equipment business revenue was HKD 970,670,000, a decline of 28.7% from HKD 1,361,412,000 in the previous year[10]. - The injection molding machine business revenue was HKD 437,694,000, down 12.7% year-on-year[11]. - The CNC machining center business revenue was HKD 46,837,000, a decrease of 27.9% compared to the previous year[12]. - Total revenue for the six months ended September 30, 2019, was HKD 1,455,201, a decrease of 24.5% compared to HKD 1,927,951 for the same period in 2018[41]. - Gross profit for the same period was HKD 372,711, down 26.6% from HKD 508,104 in 2018[41]. - Operating profit decreased to HKD 78,425, a decline of 53.7% from HKD 169,167 in the previous year[41]. - The company reported a comprehensive loss attributable to owners of HKD 131,107 for the period, compared to a loss of HKD 114,540 in 2018[42]. - The company reported a total comprehensive loss of HKD 114,540 for the period, compared to a profit of HKD 103,365 in the previous year, marking a significant turnaround[44]. Assets and Liabilities - As of September 30, 2019, the group's total assets pledged for bank financing and financial guarantee contracts amounted to HKD 631,878,000, down from HKD 671,646,000 as of March 31, 2019[17]. - Total assets as of September 30, 2019, amounted to HKD 4,823,550, down from HKD 5,220,784 as of March 31, 2019[40]. - Total liabilities decreased to HKD 2,832,305 from HKD 3,072,224, reflecting a reduction of 7.8%[40]. - Current assets totaled HKD 3,057,129, a decrease of 8.9% from HKD 3,358,922[40]. - The total liabilities of the group as of September 30, 2019, were HKD 2,832,305, compared to HKD 3,072,224 as of March 31, 2019, reflecting a reduction of approximately 7.8%[68]. - The group’s total borrowings as of September 30, 2019, were approximately HKD 529,644,000, down from HKD 591,332,000 as of March 31, 2019, reflecting a reduction of about 10%[86]. - Trade payables amounted to HKD 429,733,000 as of September 30, 2019, compared to HKD 568,958,000 as of March 31, 2019, showing a decrease of approximately 25%[87]. Cash Flow and Financing - As of September 30, 2019, the group's cash and bank balances reached HKD 568,054,000, down from HKD 634,699,000 as of March 31, 2019[15]. - The net cash flow from operating activities for the six months was HKD 62,286, compared to HKD 26,491 in the previous year, indicating an increase of 134.9%[45]. - The company incurred a net cash outflow from investing activities of HKD 21,239, a significant improvement from HKD 69,537 in the previous year, reflecting a reduction of 69.5%[45]. - Financing activities resulted in a net cash outflow of HKD 15,831, compared to an inflow of HKD 105,442 in the previous year, indicating a shift in financing strategy[45]. - The group has implemented cost-cutting measures to mitigate the impact of reduced sales and improve overall financial performance[91]. Shareholder and Employee Information - As of September 30, 2019, the major shareholder Girgio held 770,980,000 shares, representing 64.72% of the company's equity[25]. - The company employed approximately 3,700 full-time employees as of September 30, 2019[19]. - The total employee cost for the review period was HKD 277,809,000, a decrease from HKD 326,521,000 in 2018[19]. - The employee compensation policy is determined based on market trends, future plans, and individual performance[19]. - Basic earnings per share for the six months ended September 30, 2019, were HKD 1.3, down from HKD 8.7 in 2018, indicating a decline of approximately 85.0%[98]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, is responsible for reviewing the financial reporting process and internal controls[31]. - The company has complied with all corporate governance code provisions during the review period[30]. - The independent auditor did not find any issues that would lead to a belief that the interim financial information was not prepared in accordance with the relevant accounting standards[36]. Future Plans and Strategic Focus - The group plans to focus on R&D for die-casting machines, injection molding machines, and CNC machining centers to meet evolving customer demands, particularly in the new energy vehicle and 5G communication sectors[14]. - The company plans to focus on expanding its market presence and enhancing product development in response to declining revenues[89]. Accounting and Financial Reporting - The company has adopted new accounting standards, including HKFRS 16 on leases, which may impact future financial reporting[50]. - The adoption of HKFRS 16 resulted in the recognition of lease liabilities amounting to HKD 41,232,000 as of April 1, 2019[52]. - The right-of-use assets increased by HKD 382,218,000 following the adoption of HKFRS 16[53]. - The group has not reassessed contracts to determine if they contain leases upon first application of HKFRS 16[54]. Taxation and Provisions - The company's income tax expense for the six months ended September 30, 2019, was HKD 21,416,000, a decrease from HKD 29,860,000 in the same period of 2018, representing a reduction of approximately 28.4%[94]. - The deferred tax liabilities related to withholding tax on undistributed profits amounted to HKD 41,480,000 as of September 30, 2019, down from HKD 52,348,000 as of March 31, 2019[96].

Company Overview - L.K. Technology Holdings Limited is one of the world's largest die-casting machine manufacturers, with manufacturing bases and R&D centres in China, Taiwan, and Italy[5]. - The company was successfully listed on the Main Board of the Hong Kong Stock Exchange on October 16, 2006[8]. - The company acquired Idra S.r.l., a leading die-casting machine manufacturer, in 2008[8]. - The company has over 31 years of experience in management, with the current CEO having extensive operational and management experience since joining in 2008[36]. - The finance director has over 25 years of experience in corporate finance, mergers, accounting, and financial management[39]. - The engineering manager has accumulated over 30 years of experience in mechanical engineering and customer service since joining the group in 1998[38]. - The company has a strong focus on product development and technical support, with key personnel holding advanced degrees in engineering and business management[38]. - The group has a diverse board of directors with extensive experience in various industries, including finance, engineering, and manufacturing[37]. Product and Technology - The Impress-Plus large tonnage die-casting machine has a maximum clamping force of 50,000 kN, making it the largest of its kind globally[6]. - The FORZA-III series is designed for various injection plastic products, including automotive components and home appliances[12]. - The CNC machining centre LT series features high rigidity and heavy cutting performance, enhancing accuracy and rigidity[13]. - The advanced injection system in the Impress-Plus machine guarantees consistent product quality and provides immediate return on investment[10]. - The company has a strong focus on R&D, with multiple manufacturing bases and a commitment to innovation in die-casting and injection molding technologies[5]. Financial Performance - The group's revenue for the fiscal year ending March 31, 2019, was HKD 3,604,449,000, a decrease of 3.3% compared to HKD 3,728,533,000 in the previous year[33]. - Profit attributable to shareholders for the same period was HKD 190,676,000, down approximately 20.9% from the previous year[33]. - Revenue from the Chinese market was HKD 2,715,134,000, reflecting a decline of 8.4% year-on-year[33]. - The group's overseas revenue reached HKD 889,315,000, representing a year-on-year increase of 16.3%[33]. - The overall gross profit margin for the group was 24.7%, a decrease of 2.3% from the previous year due to intense market competition and rising raw material costs[34]. - Selling and distribution expenses were HKD 339,092,000, a decrease of 3.1% compared to HKD 350,095,000 in the previous year[34]. - General and administrative expenses were HKD 365,162,000, down 14.1% from HKD 425,281,000 in the previous year, primarily due to the absence of share-based payment expenses this year[34]. - Net financing costs increased by 11% to HKD 75,918,000, attributed to rising working capital loans and interest rates[34]. - The company plans to increase R&D investment to enhance product quality and meet rising customer demands amid challenging market conditions[35]. Corporate Governance - The board includes independent non-executive directors with significant experience in accounting and corporate governance[37]. - The board consists of four executive directors and three independent non-executive directors, ensuring a balanced structure with deep knowledge and experience related to the group's operations and development[41]. - The board held a minimum of four meetings annually, approximately once per quarter, to review financial and operational performance[41]. - All independent non-executive directors confirmed their independence according to the listing rules, ensuring no significant relationships among board members[41]. - The company has arranged appropriate insurance for its directors and senior officers against legal actions, ensuring adequate protection[43]. - The roles of the chairman and the CEO are separated, with Zhang Qiaoying serving as chairman and Liu Zhuoming as CEO, ensuring clear distinction of responsibilities[44]. - The company complies with the corporate governance code and regularly reviews its policies and practices[42]. - The board has established procedures for independent professional advice to assist directors in fulfilling their responsibilities[43]. - The remuneration committee held one meeting during the year to review the remuneration of executive directors and made recommendations to the board[48]. Risk Management and Internal Control - The risk management framework is overseen by the board, with the risk director responsible for raising awareness of risk management in daily operations[60]. - The internal audit department reports directly to the audit committee and evaluates the effectiveness of the internal control system[61]. - The company has engaged a professional consulting firm to strengthen its risk management system[57]. - The company maintains a risk management and internal control system, which is reviewed annually by the board and deemed effective and sufficient[62]. - The company has established an insider information disclosure policy to manage and report insider information in compliance with securities regulations[63]. Shareholder Information - The company proposes to distribute dividends amounting to at least 30% of the annual distributable profits, with interim dividends of HKD 2.5 and final dividends of HKD 2.2 per share for the fiscal year[64]. - The company has established effective communication channels with shareholders, including annual general meetings and a dedicated website for updates[66]. - As of March 31, 2019, the company's distributable reserves amounted to HKD 621,710,000, consisting of share premium of HKD 579,809,000 and retained earnings of HKD 41,901,000[74]. - The company has no provisions in its articles of association or Cayman Islands company law regarding the preferential rights of existing shareholders to subscribe for new shares[76]. - Major shareholders include Girgio, which holds 770,980,000 shares (64.72%), and China High-End Equipment Investment Fund LP, which holds 67,590,000 shares (5.67%)[83]. Audit and Compliance - The independent auditor's report confirmed that the consolidated financial statements reflect the group's financial position as of March 31, 2019, in accordance with Hong Kong Financial Reporting Standards[105]. - The audit committee conducted two meetings during the year to discuss audit, financial reporting, and operational performance matters[51]. - The total fees paid to the external auditor for the year ended March 31, 2019, amounted to HKD 4,285,000, including HKD 3,200,000 for audit services and HKD 1,085,000 for non-audit services[53]. - The audit report was issued by PwC, with the audit engagement partner being Huang Wei Bang[115]. Financial Position - Total assets decreased to HKD 5,220,784 from HKD 5,647,797, reflecting a decline of 7.57%[118]. - Total liabilities decreased to HKD 3,072,224 from HKD 3,407,503, a reduction of 9.83%[119]. - The company's equity decreased to HKD 2,148,560 from HKD 2,240,294, a decline of 4.1%[118]. - Basic earnings per share for the year was HKD 16.0, down from HKD 21.7 in 2018, representing a decrease of 26.0%[124]. - The company reported a total comprehensive income of HKD 30,613, significantly lower than HKD 516,588 in the previous year[125]. Accounting Policies and Standards - The group adopted HKFRS 15, which governs revenue recognition from customer contracts, with no significant impact on the consolidated financial statements[149]. - The new accounting standards, including HKFRS 9 and HKFRS 15, have been evaluated, and their impact on the financial statements has been disclosed[141]. - The group applies the acquisition method for business combinations, measuring identifiable assets and liabilities at fair value on the acquisition date[151]. - The group recognizes revenue from product sales when the customer accepts the product and the sales amount can be reliably measured[189]. Employee and Compensation - The company has approximately 3,900 full-time employees as of March 31, 2019, with an employee cost of HKD 618,271,000, a decrease from HKD 663,574,000 in 2018[97]. - The employee compensation policy is determined based on market trends, future plans, and individual performance[97]. - The group has established an equity-settled share-based payment plan, recognizing the fair value of options granted to employees as an expense[185].