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]

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].