Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 864,043,000, a decrease of 16.3% compared to HKD 1,032,287,000 in the same period of 2019[7] - Gross profit for the same period was HKD 48,063,000, representing a gross margin of 5.6% compared to 0.4% in 2019[7] - The company reported a net profit of HKD 5,419,000, a significant recovery from a net loss of HKD 55,562,000 in the previous year[11] - Basic and diluted earnings per share were HKD 0.65, compared to a loss per share of HKD 6.70 in the prior year[7] - Total comprehensive income for the period was HKD 15,221,000, compared to a loss of HKD 70,372,000 in the same period last year[11] - The group reported a pre-tax profit of HKD 7,684,000 for the six months ended September 30, 2020, compared to a loss of HKD 52,510,000 in the same period of 2019[54] - For the six months ended September 30, 2020, the company reported a profit attributable to ordinary equity shareholders of HKD 5,397,000, compared to a loss of HKD 55,513,000 for the same period in 2019[69] - The basic earnings per share for the six months ended September 30, 2020, was HKD 0.0065, while the previous year showed a loss per share of HKD 0.067[69] Assets and Liabilities - Non-current assets as of September 30, 2020, totaled HKD 111,180,000, an increase from HKD 108,904,000 as of March 31, 2020[15] - The company’s total assets less current liabilities amounted to HKD 897,248,000, up from HKD 882,209,000[15] - The group’s total assets as of September 30, 2020, amounted to HKD 990,351,000, compared to HKD 1,056,526,000 as of March 31, 2020[53] - The group’s total liabilities were HKD 112,317,000 as of September 30, 2020, compared to HKD 193,713,000 as of March 31, 2020[53] - The company’s total liabilities decreased to HKD 66,224,000 as of September 30, 2020, from HKD 119,651,000 as of March 31, 2020, reflecting a decrease of approximately 44.7%[82] - The company’s equity attributable to shareholders was HKD 877,888,000, an increase from HKD 862,689,000[23] Cash Flow and Financing - The company reported a net cash inflow from operating activities of HKD 137,451 thousand for the six months ended September 30, 2020, compared to HKD 21,665 thousand for the same period in 2019, representing a significant increase[35] - The company incurred a loss of HKD 72,544 thousand for the six months ended March 31, 2020, compared to a loss of HKD 55,562 thousand for the same period in 2019, highlighting ongoing challenges[30] - The company reported a net cash outflow from financing activities of HKD 54,376 thousand for the six months ended September 30, 2020, compared to an outflow of HKD 74,168 thousand in the previous year, indicating reduced financing costs[35] - The company received new bank loans amounting to HKD 126,761 thousand during the six months ended September 30, 2020, compared to HKD 532,878 thousand in the same period last year, indicating a shift in financing strategy[35] - The group recorded a financing cost reduction of 80.8% to HKD 800,000 due to decreased bank borrowings compared to the previous period[112] Inventory and Cost Management - Inventory decreased significantly to HKD 276,225,000 from HKD 456,552,000, indicating improved inventory management[15] - The company's total inventory cost recognized as an expense for the six months ended September 30, 2020, was HKD 859,239,000, down from HKD 1,007,238,000 in the same period of 2019, representing a decrease of approximately 14.7%[72] - The group’s inventory write-downs were HKD 43,259,000, compared to a reversal of provisions of HKD 21,048,000 in the previous year[56] - The company plans to continue focusing on cost control and operational efficiency to enhance profitability in the future[7] - Distribution and sales expenses decreased by 3.3% to HKD 12,000,000, while administrative expenses fell by 17.6% to HKD 34,600,000[110] Employee and Management Costs - The group’s employee costs, including directors' remuneration, were HKD 26,527,000, down from HKD 32,465,000 in 2019[56] - The total remuneration for key management personnel for the six months ended September 30, 2020, was HKD 6,331 million, down from HKD 8,447 million in the previous year[97] - The group employs approximately 180 employees as of September 30, 2020, down from 190 in 2019[141] Market and Strategic Outlook - The positive results were attributed to a diversified product and service portfolio, cost control measures, and rising metal prices[109] - The global zinc price hit a four-year low during the peak of the COVID-19 pandemic but showed strong recovery signs in July as the Chinese economy began to recover[109] - The outlook for the metal market remains uncertain, influenced by the evolution of the COVID-19 pandemic and macroeconomic events[131] - The group will continue to monitor global metal markets closely and maintain strong communication with customers to mitigate impacts[132] - The group is focused on responsible procurement and increasing production capacity while aligning with energy efficiency and emission reduction policies[134] - The group will prudently explore high-potential investment opportunities and new business sources to strengthen its market position[137] Corporate Governance - The company has consistently complied with the corporate governance code as per the Stock Exchange Listing Rules and is not aware of any violations during the interim period[163] - The company has adopted the standard code for securities transactions by directors and is not aware of any breaches by directors during the interim period[164]

Financial Performance - The company reported a revenue of HKD 1,864,166 thousand for the fiscal year 2020, a decrease of 18.2% from HKD 2,276,977 thousand in 2019[35]. - The company experienced a loss before tax of HKD (123,394) thousand in 2020, compared to a loss of HKD (81,695) thousand in 2019[35]. - The net loss attributable to equity shareholders was HKD (128,057) thousand in 2020, compared to a loss of HKD (86,652) thousand in 2019, indicating a significant decline in profitability[35]. - Total assets decreased to HKD 1,056,526 thousand in 2020 from HKD 1,301,680 thousand in 2019, reflecting a reduction of approximately 18.8%[35]. - The company's total liabilities decreased to HKD 193,713 thousand in 2020 from HKD 291,500 thousand in 2019, a reduction of about 33.6%[35]. - The net asset value fell to HKD 862,813 thousand in 2020 from HKD 1,010,180 thousand in 2019, representing a decline of approximately 14.6%[35]. - The group's revenue for the fiscal year was approximately HKD 1,864,000,000, a decrease of 18.1% compared to HKD 2,277,000,000 in the previous year[39]. - The sales volume for the fiscal year was 89,460 tons, down from 94,250 tons in the comparative period[39]. - The group recorded a gross profit of approximately HKD 2,000,000 with a gross margin of 0.10%, compared to a gross profit of approximately HKD 39,000,000 in the previous year[39]. - The loss attributable to equity shareholders was approximately HKD 128,000,000, compared to a loss of HKD 87,000,000 in the previous year[39]. Market Challenges and Strategies - The company faced significant challenges during the fiscal year 2019-2020 due to trade tensions, supply chain disruptions, and weak customer demand, impacting metal demand and overall performance[15]. - The market environment remains difficult and complex, posing significant pressure on the industry and impacting metal demand[15]. - The management anticipates that the challenges in the upcoming fiscal year will be as significant as those faced in 2020, with ongoing uncertainties due to the pandemic and trade tensions[30]. - The company is actively planning to respond to the transformed market environment, focusing on business and regional diversification[17]. - The company aims to diversify its revenue sources and enhance its capabilities in Southeast Asia, particularly in Singapore, Malaysia, Thailand, and Vietnam[27]. - The company is focused on maintaining market leadership through adaptability and significant effort in the current environment[17]. - The company aims to integrate environmental, social, and governance factors into its sustainable business model to capture emerging trends[17]. - The company is committed to business growth and will continue to implement strategies with unparalleled flexibility to maintain a competitive edge[14]. Innovation and Development - New product and service development is a priority, with efforts to embrace change and innovation to meet evolving market demands[17]. - The company is focused on improving its R&D capabilities to develop specialized alloys and enhance performance for high-growth sectors like telecommunications and consumer electronics[58]. - New services such as water quality testing and advanced training courses in die-casting have been introduced to create potential new revenue streams[27]. - The company is investing HKD 50 million in research and development for new technologies aimed at improving production efficiency[72]. - New product launches are expected to contribute an additional HKD 200 million in revenue, with a focus on innovative technologies in the metal industry[72]. Financial Position and Cash Management - The group had a strong financial position with bank balances and cash on hand of approximately HKD 306,000,000 as of March 31, 2020[44]. - The company reported cash and bank balances of approximately HKD 306 million as of March 31, 2020, down from HKD 357 million in 2019[63]. - Bank borrowings amounted to approximately HKD 120 million as of March 31, 2020, compared to HKD 196 million in 2019[63]. - The company's capital debt ratio was 14.1% as of March 31, 2020, down from 19.4% in 2019[63]. - The current ratio improved to 544% as of March 31, 2020, compared to 431% in 2019[63]. - Financing costs decreased by 41.0% to approximately HKD 6,000,000 due to maintaining lower levels of bank borrowings[43]. Corporate Governance - The board of directors did not recommend the payment of a final dividend for the fiscal year[60]. - The company has implemented various measures to comply with the corporate governance code as per the listing rules, ensuring effectiveness and accountability[82]. - The board of directors is responsible for providing corporate leadership and ensuring effective internal control, with a focus on long-term value for shareholders[84]. - The remuneration committee has reviewed and approved the remuneration policies, ensuring fair compensation aligned with performance and market competitiveness[88]. - The nomination committee has established a diversity policy with measurable targets, including a minimum number of female board members[91]. - The corporate governance committee has reviewed the overall governance policies and training records, enhancing compliance awareness among employees[92]. - The audit committee was established on September 15, 2006, and is responsible for reviewing and supervising the group's financial reporting procedures, risk management, and internal control systems[94]. - The total audit fees for the fiscal year amounted to HKD 2,170,000, which includes HKD 1,760,000 for audit services and HKD 410,000 for non-audit services[95]. Risk Management - The group faces significant risks including commodity price risk, currency risk, transaction volume risk, credit risk, liquidity risk, and cyber risk[107]. - The group employs stress testing to analyze commodity price and transaction volume risks, particularly focusing on zinc price fluctuations and currency changes[107]. - The group has a comprehensive risk/reward analysis process for major investments, assessing consumer trends, competitiveness, and entry barriers[107]. - The group has implemented a risk management system based on ISO standards to identify, analyze, and mitigate operational risks[110]. - The group has a dedicated team monitoring currency risk and has hedged to lock in favorable interest rates[108]. - The group has engaged an independent professional company to assess its cybersecurity risks and provide improvement recommendations[108]. Community and Environmental Responsibility - The group has been recognized for its community service and environmental protection efforts, receiving multiple awards and certifications[150]. - The group has implemented an environmental management system to regularly identify and assess environmental factors[150]. - The group has established a safety committee to ensure workplace safety and implement the ISO 45001:2018 safety management system[151]. - The group has engaged qualified third-party consultants annually for air quality assessments, with results deemed satisfactory[150]. - The group made charitable donations of approximately HKD 52,000 during the fiscal year[126].

Financial Performance - Revenue for the six months ended September 30, 2019, was HKD 1,032,287 thousand, a decrease of 20% compared to HKD 1,288,324 thousand in the same period of 2018[8]. - Gross profit for the same period was HKD 4,001 thousand, down from HKD 6,977 thousand, reflecting a significant decline in profitability[8]. - The net loss for the period was HKD 55,562 thousand, compared to a net loss of HKD 57,235 thousand in 2018, indicating a slight improvement[11]. - Total comprehensive loss for the period was HKD 70,372 thousand, down from HKD 75,657 thousand in the previous year[11]. - The basic and diluted loss per share was HKD 6.70, slightly improved from HKD 6.90 in the previous year[8]. - The company reported a total comprehensive loss of HKD 55,562,000 for the six months ended September 30, 2019[39]. - The pre-tax loss for the six months ended September 30, 2019, was HKD 52,510, slightly improved from a loss of HKD 54,941 in 2018[79]. - The group recorded a loss attributable to equity holders of HKD 55,500,000 for the interim period, slightly improved from a loss of HKD 57,200,000 in the previous period[132]. Assets and Liabilities - Current assets decreased to HKD 972,986 thousand from HKD 1,172,192 thousand, showing a reduction in liquidity[16]. - Total liabilities decreased to HKD 141,845 thousand from HKD 271,892 thousand, indicating improved financial stability[16]. - The company’s equity attributable to shareholders was HKD 939,597 thousand, down from HKD 1,009,950 thousand, reflecting a decrease in shareholder value[27]. - Total assets less current liabilities amounted to HKD 1,030,070, reflecting a slight increase from HKD 1,029,788[68]. - The company reported a net asset value of HKD 1,010,150, a decrease from HKD 1,010,180[68]. - The company’s total liabilities included current lease liabilities of HKD 1,052,000 and non-current lease liabilities of HKD 312,000[68]. Cash Flow and Investments - Operating cash flow for the six months ended September 30, 2019, was HKD 21,665,000, down from HKD 148,760,000 in the same period last year[45]. - Cash and cash equivalents at the end of the period were HKD 294,125,000, down from HKD 363,939,000 at the end of the previous year[45]. - Net cash used in investing activities for the six months ended September 30, 2019, was HKD 2,459,000, compared to HKD 2,826,000 in the previous year[45]. - The company’s cash flow from operating activities was significantly impacted by a decrease in operating income, which was HKD 27,679,000 compared to HKD 156,469,000 in the previous year[45]. - The company did not declare any dividends during the period, compared to HKD 12,432,000 paid in the previous year[45]. Segment Performance - Revenue from the Hong Kong segment was HKD 611,413, down from HKD 781,865 in the previous year, with a segment loss of HKD 59,763[75]. - Revenue from the Mainland China segment was HKD 420,874, down from HKD 506,459 in the previous year, with a segment profit of HKD 9,389[75]. - The total assets for the Hong Kong segment were HKD 942,088, while the total assets for the Mainland China segment were HKD 359,592, leading to a total of HKD 1,301,680[77]. Operational Highlights - The company operates primarily in the trading of zinc, zinc alloys, nickel, nickel-related products, aluminum, aluminum alloys, stainless steel, and other electroplating chemical products in Hong Kong and mainland China[48]. - The company continues to invest in developing its own brand metals, with sales from its Ningbo alloy manufacturing subsidiary showing continuous growth[139]. - The company is expanding its sales team in Southeast Asia to support sales growth in the region, particularly in Thailand and Vietnam[138]. - The company is committed to improving its R&D capabilities to develop customized alloys to meet the complex requirements of manufacturers in high-value sectors[150]. Compliance and Governance - The financial report is prepared in accordance with the Hong Kong Financial Reporting Standards, specifically HKFRS 34 for interim financial reporting[50]. - The independent review of the interim financial information was conducted by KPMG in accordance with the Hong Kong Institute of Certified Public Accountants' standards[52]. - The company has complied with the corporate governance code as per the Stock Exchange's listing rules and is not aware of any violations during the interim period[175]. Market Conditions - The uncertain macroeconomic outlook, particularly due to US-China trade tensions, continues to affect the confidence of the company's SME clients[143]. - Global zinc prices fell significantly during the interim period, reaching a low of USD 2,211 per ton on September 4[132].

Business Overview - Lee Kee Holdings Limited aims to provide high-quality base metals and unique value-added services across over 20 industries in Greater China and Southeast Asia[2]. - Lee Kee is expanding its business in Southeast Asia, leveraging new opportunities and broadening its customer base and revenue streams[13]. - The company is committed to diversifying its product and service offerings, particularly in providing value-added services and specialty alloys to manufacturers[17]. - Lee Kee's subsidiary, Lee Po Metal Testing Limited, has maintained ideal growth in its testing and consulting services while continuously exploring new markets[17]. - The company is focusing on global market promotion and business development strategies, aiming for sustainable growth[81]. Financial Performance - For the fiscal year 2018/2019, the company reported total revenue of HKD 2,276,977, a decrease of 16.1% from HKD 2,711,441 in the previous year[33]. - The company experienced a loss before tax of HKD 81,695 compared to a profit of HKD 95,561 in the previous year, indicating a significant decline in profitability[33]. - The net loss for the year was HKD 86,660, contrasting with a profit of HKD 90,153 in the previous year, reflecting a year-on-year decrease of 196.3%[33]. - Total assets decreased to HKD 1,301,680 from HKD 1,469,564, representing a decline of 11.4%[33]. - The group's revenue for the fiscal year was HKD 2,277,000,000, a decrease of 16% compared to HKD 2,711,000,000 in the previous year[37]. - The sales volume for the fiscal year was 94,250 tons, down from 108,060 tons in the comparative period[37]. - The group recorded a gross profit of HKD 39,000,000 with a gross margin of 1.72%, compared to a gross profit of HKD 212,000,000 in the previous year[37]. - The financing costs increased by 41.8% to HKD 10,000,000 due to higher overall market interest rates[41]. - The group reported unrestricted cash and bank balances of approximately HKD 357 million as of March 31, 2019, compared to HKD 300 million in 2018[66]. - The capital debt ratio was 19.5% as of March 31, 2019, compared to 23.8% in 2018, indicating improved financial stability[66]. - The current ratio stood at 431% as of March 31, 2019, up from 395% in 2018, reflecting strong liquidity[66]. Strategic Initiatives - New measures such as e-commerce and robotics are being implemented to streamline operations and enhance efficiency[17]. - The company aims to invest in new skills to maintain competitiveness in a rapidly changing environment, highlighting a commitment to innovation and adaptability[24]. - The company plans to integrate more data analytics, digitalization, and AI systems to improve business processes and enhance customer service[28]. - The group will continue to focus on Southeast Asia as an important manufacturing base, leveraging labor cost advantages and supporting industry development[56]. - The group plans to invest in R&D and specialized products to meet the demands of high-value industries in China, particularly in electronics and electric vehicles[60]. Risk Management - The major risks identified include commodity price risk, currency risk, volume risk, credit risk, liquidity risk, and cyber risk[110]. - The company employs stress testing to analyze commodity and volume risks, acknowledging that these measures do not provide absolute guarantees[110]. - A dedicated team monitors and reports on currency, credit, and liquidity risks, utilizing hedging strategies to lock in favorable rates[110]. - The company has implemented a risk register to systematically prioritize and manage identified risks, ensuring effective governance[107]. - Cyber risk management is a priority for the board, with ongoing training and expert consultations to address evolving threats[111]. Corporate Governance - The company has implemented various measures to comply with corporate governance codes, ensuring effective accountability and ethical business practices[85]. - The board of directors has adopted a standard code for securities trading, ensuring compliance and transparency among its members[86]. - The company has adopted a diversity policy with measurable targets, including a minimum number of female board members[95]. - The attendance rate for board meetings was 100% for all directors during the fiscal year[100]. - The company has established a comprehensive financial reporting system, ensuring the accuracy and reliability of its financial statements[101]. Environmental and Social Responsibility - The company has established an environmental policy aimed at minimizing operational negative impacts and enhancing environmental awareness among employees and stakeholders[158]. - The company participates in various environmental initiatives, including the "Carbon Footprint Database" and "Carbon Audit • Green Organization" programs since 2015[159]. - The company conducts regular air quality assessments through qualified third-party consultants, achieving favorable test results[159]. - The company has a strong commitment to reducing resource consumption in daily operations through environmental guidelines and measures[159]. - The company’s environmental, social, and governance (ESG) report is available on its website, detailing its sustainable development initiatives and performance[158]. Shareholder Information - The company did not recommend a final dividend for the year ended March 31, 2019, indicating a cautious approach to shareholder returns amid market uncertainties[127]. - The company has adopted a shareholder communication policy to ensure timely and fair access to information for shareholders[120]. - The company’s board of directors and senior management have disclosed their shareholdings, ensuring transparency in ownership[152]. - The group sold approximately 12.1% of its products to its top five customers during the fiscal year[163]. - The largest supplier accounted for 39.2% of the group's procurement, while the top five suppliers combined accounted for 65.0%[163].