香港交易及結算所有限公司、香港聯合交易所有限公司（「聯交所」）及香港中央結算有限公司 （「香港結算」）對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表 示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 本公告不會直接或間接於或向美國（包括其領土及屬地、美國任何州及哥倫比亞特區）發佈、 刊發、派發。本公告並不構成或組成在美國境內或於任何其他司法管轄區購買或認購證券的任 何要約或招攬的一部分。本公告所述證券並無亦不會根據1933年《美國證券法》（經不時修訂） （「美國證券法」）或美國任何州或其他司法管轄區的證券法登記。該等證券不得在美國境內提呈 發售、出售、質押或以其他方式轉讓，惟根據美國證券法的登記規定豁免及遵守任何適用的州 證券法除外。該等證券乃根據美國證券法S規例於美國境外以離岸交易方式提呈發售及出售。 將不會在美國公開發售證券。 本公告僅供參考，並不構成收購、購買或認購證券的邀請或要約。本公告並非招股章程。潛 在投資者在決定是否投資所提呈發售的H股前，應細閱深圳市廣和通無線股份有限公司（「本公 司」）刊發的日期為2025年10月14日的招股章程（ ...

Financial Performance - Revenue for the year ended March 31, 2024, was HKD 1,103,944, a decrease of 8.7% compared to HKD 1,209,602 in 2023[2] - The net loss attributable to equity holders for the year was HKD 212,132, significantly improved from a loss of HKD 294,169 in 2023[3] - The company reported a total comprehensive loss of HKD 249,096 for the year, compared to HKD 485,225 in the previous year, indicating a reduction of 48.7%[3] - The basic and diluted loss per share was HKD 48.33, improved from HKD 67.01 in 2023[3] - The company reported a total loss of HKD 212,132 for the year, compared to a loss of HKD 294,169 in the previous year, showing an improvement in financial performance[40] - The overall revenue for the fiscal year ending March 31, 2024, decreased by 8.7% to approximately HKD 1,103,944,000 from HKD 1,209,602,000 in the previous fiscal year[75] - The overall gross profit increased by 11.1% to HKD 140,710,000, with a gross profit margin of approximately 12.7%, compared to 10.5% in the previous fiscal year[77] Assets and Liabilities - Total assets decreased to HKD 1,824,338 from HKD 2,096,213, representing a decline of 12.9%[11] - Non-current assets totaled HKD 721,398, down from HKD 1,001,611, a decrease of 28.0%[9] - Current assets increased slightly to HKD 1,102,940 from HKD 1,094,602, a growth of 0.8%[9] - The company’s total liabilities decreased to HKD 968,749 from HKD 991,528, a reduction of 2.3%[11] - The total assets as of March 31, 2024, were HKD 1,824,338, down from HKD 2,096,213 in the previous year, reflecting a decrease of approximately 12.9%[42] - The company’s total liabilities were HKD 968,749, reflecting a slight increase from HKD 991,528 in the previous year, indicating a stable liability management[42] Business Segments - The company has three reportable business segments: electrical and electronic products, electrical machinery, and real estate development, with performance assessed based on operating profit or loss[33] - The electrical and electronic products segment generated revenue of HKD 438,556, while the machinery segment contributed HKD 660,150, indicating a significant reliance on machinery for overall revenue[40] - The revenue breakdown by business segment shows that the electronics segment generated HKD 438,556,000 (39.7% of total revenue), while the electrical segment accounted for HKD 660,150,000 (59.8% of total revenue) in the current fiscal year[76] - The electronics segment's external revenue decreased by 4.6% to approximately HKD 438,556,000, with a profit of HKD 51,451,000 after accounting for specific impairment provisions[83] - The business segment recorded a loss of HKD 163,095,000, compared to a profit of HKD 322,000 in the previous fiscal year, due to impairment losses of HKD 139,408,000[88] - The real estate segment reported a loss of HKD 39,746,000, an improvement from a loss of HKD 257,521,000 in the previous fiscal year[91] Impairment and Provisions - The impairment loss on property, plant, and equipment was HKD 148,921,000 for the year ended March 31, 2024, significantly higher than HKD 50,790,000 in 2023[56] - The group recognized impairment losses of HKD 17,117,000 on development properties for the year ended March 31, 2024, a significant decrease from HKD 191,304,000 in 2023[57] - The company recognized an impairment loss of HKD 139,408,000 on non-financial assets, primarily due to the electrical segment, which included property, plant, and equipment impairments of HKD 131,040,000[79] - The group recorded a net decrease in inventory provisions of HKD 24,360,000 for the year ended March 31, 2024, compared to a provision of HKD 5,801,000 in 2023[56] Cash Flow and Financing - As of March 31, 2024, the group's cash and bank balances amounted to HKD 118,810,000, a decrease of 41.6% from HKD 203,372,000 on March 31, 2023[105] - The group's net current assets were HKD 180,992,000, down 29.8% from HKD 257,905,000 a year earlier[105] - The total bank borrowings due within one year as of March 31, 2024, amounted to HKD 369,146,000, an increase from HKD 269,065,000 in 2023[72] - The total bank borrowings as of March 31, 2024, were HKD 369,146,000, an increase of 5.0% from HKD 351,265,000 on March 31, 2023[106] - The average annual interest rate on bank borrowings decreased to 4.0% for the year ended March 31, 2024, down from 5.3% in 2023[71] - The current ratio was 1.20 as of March 31, 2024, compared to 1.31 a year earlier, indicating a decline in liquidity[106] - The capital debt ratio increased to 43.1% from 31.8% year-on-year, reflecting a higher reliance on debt financing[106] Future Plans and Developments - The company plans to expand its production facilities in Malaysia to meet increasing customer demand for flexible production setups[84] - The electrical segment has expanded its product offerings to include larger motor drivers and brushless DC motors, aligning with the latest technology trends[85] - The company plans to prioritize completing remaining small-scale construction works and obtaining final compliance certificates for the Montessori Garden project[100] - The company aims to expand its production capacity in Malaysia while implementing strict cost control measures to manage operational expenses[103] Corporate Governance and Compliance - The group has adopted several new accounting standards effective from April 1, 2023, including HKFRS 17 for insurance contracts and HKAS 1 for disclosure of accounting policies[18] - The group has not early adopted new and revised standards that are effective after April 1, 2024, indicating a cautious approach to upcoming regulatory changes[20] - The board decided not to declare a final dividend for the year, consistent with the previous fiscal year[104] - The board's audit committee has reviewed the group's consolidated performance for the year, including the consolidated financial statements[129] - The scope of work for PwC accounting firm has been outlined, indicating a thorough examination of financial practices[130] Employment and Operations - The group employed approximately 3,900 full-time employees as of March 31, 2024, with most based in China and Malaysia[113] - The company entered into a lease renewal agreement for its Hong Kong office with a monthly rent of HKD 124,800, effective from April 1, 2023, to March 31, 2026[120] - The group did not engage in any significant acquisitions or disposals of subsidiaries during the year[119] - There were no major events occurring after the reporting period up to the date of the annual report[125]

Financial Performance - Revenue for the six months ended 30 September 2023 was HK$552,266,000, a decrease of 20.8% compared to HK$697,224,000 for the same period in 2022[6]. - Gross profit before impairment was HK$74,811,000, down from HK$88,448,000, reflecting a decline of 15.4%[6]. - Operating profit for the period was HK$64,784,000, a significant recovery from an operating loss of HK$150,566,000 in the previous year[7]. - Profit attributable to equity holders of the Company was HK$36,725,000, compared to a loss of HK$155,607,000 in the same period last year[7]. - Other income and gains increased to HK$73,270,000 from HK$11,722,000, marking a growth of 524.5%[6]. - Total comprehensive loss attributable to equity holders of the Company was HK$7,292,000, a substantial improvement from a loss of HK$326,410,000 in the previous year[12]. - Basic and diluted earnings per share were HK8.37 cents, compared to a loss of HK35.45 cents per share in the prior period[12]. - The company recognized no impairment losses on properties held for sale during the current period, contrasting with HK$175,695,000 in the previous year[12]. - Finance costs increased to HK$8,813,000 from HK$4,590,000, reflecting a rise of 91.5%[7]. - The company reported a deferred tax credit of HK$4,491,000 related to asset revaluation, which was not present in the previous year[12]. Assets and Liabilities - Total assets decreased from HK$2,096,213,000 as of March 31, 2023, to HK$2,005,700,000 as of September 30, 2023, representing a decline of approximately 4.34%[15]. - Total equity attributable to equity holders decreased from HK$1,104,685,000 to HK$1,097,393,000, a reduction of about 0.66%[16]. - Current liabilities decreased from HK$836,697,000 to HK$786,401,000, reflecting a decrease of approximately 6.00%[16]. - Non-current liabilities decreased from HK$154,831,000 to HK$121,906,000, a decline of about 21.24%[16]. - Cash and cash equivalents decreased from HK$203,372,000 to HK$139,029,000, a reduction of approximately 31.65%[15]. - Accounts receivable increased from HK$210,742,000 to HK$247,869,000, an increase of about 17.59%[15]. - The total non-current assets decreased from HK$1,001,611,000 to HK$932,884,000, a decline of approximately 6.87%[15]. Cash Flow - Cash flows from operating activities showed a significant decline, with a net outflow of HK$468,000 compared to an inflow of HK$62,106,000 in the same period last year[20]. - The net cash outflow from investing activities was HK$1,462,000, a decrease from HK$21,518,000 in the previous year, indicating improved cash management[20]. - Financing activities resulted in a net cash outflow of HK$60,901,000, compared to HK$26,008,000 in the prior period, primarily due to higher repayments of bank borrowings[20]. - Cash and cash equivalents at the end of the period decreased to HK$139,029,000 from HK$265,022,000, reflecting a decrease of 47.5% year-over-year[20]. - The Group's total cash outflow for the six months ended 30 September 2023 was HK$62,831,000, contrasting with an increase of HK$14,580,000 in the same period last year[20]. Segment Performance - The electrical and electronic products segment includes the manufacture and sale of robotics, juvenile products, and healthcare products, which are key growth areas for the Group[36]. - The motors segment focuses on the development and sale of electric motor drives, aligning with market trends towards electrification[36]. - The real estate development segment remains a critical part of the Group's diversified business model, contributing to overall revenue stability[36]. - Revenue from electrical and electronic products was HK$231,320,000, down 25.6% from HK$310,919,000 in the previous year[53]. - Revenue from motors decreased by 16.9% to HK$319,956,000 from HK$384,987,000[53]. - The segment results showed a profit of HK$75,452,000, compared to a loss of HK$142,189,000 in the same period last year[44]. - The juvenile and baby care products sector is showing gradual signs of recovery, with demand steadily picking up and normalized inventory levels encouraging new orders[119]. - The healthcare sector is experiencing active inquiries for new model introductions, indicating growth potential despite a low revenue base[119]. Future Outlook - The Group anticipates that the application of new accounting standards will have no material impact on its financial results[34]. - Management continues to monitor segment performance closely to optimize resource allocation and enhance profitability[37]. - The Group plans to actively reach out to existing customers to secure orders and enhance client acquisition efforts, particularly in Malaysia[157]. - The Group will continue to focus on product development, particularly in EPB motors and new products in the juvenile, baby care, and healthcare sectors to drive margin enhancement[157]. - The Group anticipates a challenging second half of the year but expects gradual recovery in 2024, with real consumption spending projected to increase by 1.1% in 2024 and 2.0% in 2025 in the U.S.[156]. Shareholding and Corporate Governance - As of September 30, 2023, the total number of issued ordinary shares of the Company is 438,960,000[192]. - Mr. Cheng Chor Kit holds 283,254,000 shares, representing approximately 64.52% of the total shareholding[185]. - Mr. Liu Tat Luen holds 2,000,000 shares, representing approximately 0.45% of the total shareholding[185]. - The Company’s 2012 Share Option Scheme expired on August 19, 2022, but previously granted options remain valid and exercisable[200]. - Dr. Sun Kwai Yu resigned as an independent non-executive Director on August 28, 2023, and her share option lapsed[198].

Financial Performance - For the year ended 31 March 2023, the Group reported a revenue decline of 47.8% to HK$1,209,602,000 compared to HK$2,316,315,000 in FY2022[21] - Gross profit decreased from HK$245,532,000 in FY2022 to HK$126,665,000 in FY2023, with a gross profit margin of 10.5%[21] - The net loss attributable to equity holders for the year was HK$294,169,000, a significant decline from a net profit of HK$56,858,000 in FY2022[21] - Excluding one-off impairment losses, the Group would have recorded a net profit of HK$2,906,000 for FY2023[21] - Revenue decreased by 47.8% year-on-year to HK$1,209,602,000 in FY2022/23, down from HK$2,316,315,000 in FY2021/22[23] - Gross profit before impairment decreased to HK$126,665,000, with a gross margin of 10.5%, compared to 10.6% in the previous fiscal year[23] - The Group recorded a net loss attributable to equity holders of HK$294,169,000, compared to a net profit of HK$56,858,000 in FY2021/22[23] - Overall gross profit (before impairment) decreased by 48.4% YoY to HK$126,665,000, with a gross profit margin of 10.5%[47] - The Group reported a gross loss (after impairment) of HK$164,203,000 for the Year, compared to a gross profit of HK$245,532,000 in FY2022[48] - The total non-recurring and non-cash impairment losses amounted to HK$297,075,000, leading to a loss for the Year of HK$294,169,000, compared to a profit of HK$56,858,000 in FY2022[48] - Basic loss per share for the Year was HK67.01 cents, compared to basic earnings per share of HK12.95 cents in FY2022[48] Economic Environment - The overall economic environment was impacted by inflation, rising interest rates, and the lingering effects of the COVID-19 pandemic[21] - The International Monetary Fund forecasts a global growth of 2.8% in 2023, down from 3.4% in 2022, with inflation expected to decrease from 8.7% in 2022 to 7.0% in 2023[101] - The global economy has been significantly impacted by the COVID-19 pandemic, leading to a reduction in customer purchase orders and an overall decline in product sales[164][168] - The pandemic has left unresolved issues that will require time to address as normalcy resumes[164][168] Market Trends - The real estate market in China saw a 41.3% decrease in sales from the 100 largest property developers, totaling RMB7.6 trillion in 2022[19] - The overall consumer market continues to show hesitation due to global economic slowdown, impacting demand for household appliances, particularly in Europe and the U.S.[71] - In 2022, the Chinese real estate market declined by 5.1% year-on-year, reflecting a lack of recovery confidence and momentum despite supportive policies[88] - Home sales in China's troubled property sector are projected to fall by a median of 8% in 2023, following a decline of approximately 25% in 2022[98] - The average new-home prices in 70 cities in China dropped from 0.44% in March to 0.32% in April 2023, indicating ongoing weakness in the residential property market[98] Strategic Initiatives - The Group's strategy for FY2023 focused on resource consolidation, cost re-engineering, and improving financial position amidst economic challenges[20] - The Group aims to expand its production base outside of China, potentially in Southeast Asia, to enhance customer engagement and order volume[36] - The Group will explore introducing its own original brand manufacturing business to complement existing customer portfolios and improve profit margins[36] - The company is implementing a "China Plus One" strategy, consolidating production facilities in China while expanding capacity in Malaysia to enhance operational efficiency and margin[66] - The Group plans to actively expand its customer reach in China to capitalize on economic recovery opportunities, particularly in the automotive and household appliance sectors[102] Operational Challenges - The Group's production in Shenzhen and Shaoguan faced significant cost pressures and diseconomies of scale due to strict COVID-19 policies in China[14] - The utilization rate of production facilities in the Shixing Production Centre was estimated to be below 20%, leading to a consolidation of orders and restructuring of the supply chain[26] - The Group streamlined operations to maintain efficiency and margins amid a decreasing order book in its manufacturing business segments[47] - The Group's financial pressure has increased due to the combination of high inflation and the need for cash outflow management[165][169] Segment Performance - The Electrical and Electronic Products Business Segment saw increasing sales from the healthcare sector, indicating a positive trend in product demand[31] - The Electrical and Electronic Products Business Segment generated HK$459,846,000, representing 38.0% of the Group's consolidated turnover for the Year, down from 54.7% in FY2022[42] - The Motors Business Segment contributed HK$745,516,000, accounting for 61.6% of the Group's consolidated turnover, an increase from 45.1% in FY2022[52] - The Motors Business Segment reported external turnover of HK$745,516,000 for the Year, a decrease of 28.6% YoY from HK$1,044,052,000 in FY2022[74] - The segment's results for the Year were HK$322,000, significantly down from HK$71,350,000 in FY2022, after accounting for non-recurring impairments of HK$36,714,000[76] Financial Position - The Group's cash and bank balances decreased from HK$256,934,000 as of March 31, 2022, to HK$203,372,000 as of March 31, 2023, reflecting a decline of approximately 20.9%[108] - Net current assets fell significantly from HK$525,724,000 as of March 31, 2022, to HK$257,905,000 as of March 31, 2023, a decrease of about 51%[108] - Shareholders' equity decreased from HK$1,589,910,000 as of March 31, 2022, to HK$1,104,685,000 as of March 31, 2023, representing a decline of approximately 30.5%[108] - Total bank borrowings reduced from HK$529,147,000 as of March 31, 2022, to HK$351,265,000 as of March 31, 2023, a decrease of about 33.6%[108] - The current ratio decreased from 1.46 times as of March 31, 2022, to 1.31 times as of March 31, 2023[110] - The gearing ratio improved slightly from 33.3% as of March 31, 2022, to 31.8% as of March 31, 2023[110] Governance and Compliance - The Group has complied with relevant laws and regulations in Hong Kong and Mainland China throughout the year[153][160] - The Group's risk management and internal control systems are in place to continuously identify, monitor, and manage principal risks[163] - The Group has implemented risk management and internal control systems to identify and manage key operational risks[167][174] Employee and Management - As of March 31, 2023, the Group employed approximately 4,600 full-time employees, with less than 70 based in Hong Kong and the majority working in the PRC and Malaysia[123] - The Group's employee remuneration policies are aligned with prevailing industry standards, providing benefits such as retirement schemes, medical plans, and performance bonuses in Hong Kong[124] - The Group's management regularly reviews and monitors foreign exchange risks, although no foreign currency hedging policies are currently in place[120] Shareholder Information - The Board has resolved not to declare any final dividend for the year, consistent with the previous year[104] - Charitable donations made by the Group during the year amounted to HK$62,000, an increase from HK$30,000 in 2022[158] - The Group's reserves available for cash distribution amounted to HK$448,956,000 as of March 31, 2023[194] - The company can distribute HK$104,750,000 of contributed surplus under certain circumstances according to Bermuda law[200] - The company's share premium account balance is HK$156,015,000, which can be distributed in the form of bonus shares[200]

Financial Performance - Revenue for the six months ended 30 September 2022 was HK$697,224,000, a decrease of 48.9% compared to HK$1,364,779,000 in the same period of 2021[15]. - Gross profit for the period was HK$88,448,000, down 47.5% from HK$168,658,000 in the previous year[15]. - The loss attributable to equity holders of the Company for the period was HK$155,607,000, compared to a profit of HK$76,274,000 in the same period of 2021[15]. - The Company reported a total comprehensive loss for the period of HK$326,410,000, compared to a total comprehensive income of HK$82,682,000 in the same period of 2021[20]. - Basic and diluted loss per share attributable to equity holders of the Company was HK(35.45) cents, compared to earnings of HK17.38 cents in the previous year[15]. - The company reported a loss for the period of HK$155,607,000 for the six months ended 30 September 2022, compared to a profit of HK$76,274,000 for the same period in 2021[26]. - Total comprehensive loss for the period was HK$326,410,000, compared to a total comprehensive income of HK$82,632,000 for the same period in 2021, indicating a significant decline[26]. Assets and Liabilities - Total assets as of 30 September 2022 were HK$2,410,861,000, a decrease from HK$2,918,083,000 as of 31 March 2022[22]. - Current assets decreased to HK$1,329,711,000 from HK$1,677,566,000 in the previous period[22]. - The Company’s non-current assets totaled HK$1,081,150,000, down from HK$1,240,517,000 as of 31 March 2022[22]. - Total equity decreased to HK$1,263,500,000 as of 30 September 2022, down from HK$1,589,910,000 as of 31 March 2022, representing a decline of approximately 20.5%[24]. - Total liabilities decreased to HK$1,147,361,000 as of 30 September 2022, down from HK$1,328,173,000 as of 31 March 2022, a reduction of about 13.6%[24]. - Total current liabilities decreased to HK$994,648,000 as of 30 September 2022, down from HK$1,151,842,000 as of 31 March 2022, representing a decline of about 13.7%[24]. - Deferred tax liabilities decreased to HK$28,459,000 as of 30 September 2022 from HK$40,075,000 as of 31 March 2022, a reduction of approximately 29.0%[24]. Cash Flow - Cash flows from operating activities for the six months ended 30 September 2022 were HK$62,106,000, compared to HK$69,498,000 for the same period in 2021, indicating a decrease of approximately 10.3%[29]. - Net cash outflow from investing activities was HK$21,518,000 for the six months ended 30 September 2022, compared to HK$34,943,000 in the previous year, showing an improvement of about 38.5%[29]. - Cash and cash equivalents at the end of the period increased to HK$265,022,000 from HK$323,019,000 year-over-year, reflecting a decrease of approximately 17.9%[29]. Segment Performance - The Group has three reportable operating segments: electrical and electronic products, motors, and real estate development[44]. - Revenue from electrical and electronic products was HK$321,231,000, down from HK$823,910,000, indicating a decrease of about 60.0%[57]. - The segment results showed a loss of HK$142,189,000, compared to a profit of HK$94,008,000 in the previous year, reflecting a significant downturn[57]. - The Motors Business Segment contributed HK$384,987,000, accounting for 55.2% of the Group's consolidated turnover for the Period (1H FY2022: HK$562,896,000, 41.2%) [115]. - The Real Estate Development Business Segment recorded HK$1,318,000, representing 0.2% of the Group's consolidated turnover for the Period (1H FY2022: Nil) [115]. Impairment and Provisions - The Company recognized provisions of HK$175,695,000 and HK$12,224,000 to write down properties under development and completed properties held for sale, respectively[20]. - The Group recognized an aggregate impairment loss of HK$189,648,000 for its real estate development projects, turning interim results from profit to loss[109]. - The impairment loss for the period reached HK$175,695,000, including HK$112,177,000 due to the decision to suspend and stop the development of certain phases of the Mong Suri Garden project[86]. - The Group's impairment loss included HK$112,177,000 related to the shelved phases of The Jardin Montsouris, reflecting a significant impact on the financial results[85]. Market Conditions and Strategy - The current global macroeconomic environment has led to a softening of demand for goods and services, impacting the Company's manufacturing business[109]. - The sluggish real estate market in China continues to impact sales and market sentiment negatively[124]. - The Group plans to continue expanding its customer portfolio by targeting growing sectors and increasing resources in the healthcare business[142]. - The Group aims to maintain good relationships with existing customers to ensure stable cash flow while exploring new opportunities[142]. - The Group will adopt stringent cost control and streamline its structure to maintain margin levels in the second half of the financial year[141]. Shareholder Information - As of September 30, 2022, the total number of issued ordinary shares of the company is 438,960,000[190]. - Mr. Cheng Chor Kit holds 26,634,000 personal shares and has a total shareholding of 283,254,000, representing approximately 64.52% of the company[184]. - Padora Global Inc, through its subsidiary Resplendent Global Limited, indirectly holds 252,920,000 shares of the company, with Mr. Cheng Chor Kit owning 52.0% of Padora[191].

Financial Performance - The Group recorded a revenue decline of 14.0% year-on-year to HK$2,316,315,000 for the year ended March 31, 2022, compared to HK$2,693,865,000 in the previous year[22]. - Gross profit decreased from HK$319,645,000 to HK$245,532,000, maintaining a gross profit margin of 10.6%[22]. - Profit attributable to equity holders of the Company decreased by 45.1% to HK$56,858,000, down from HK$103,626,000 in the previous year[22]. - For FY2021/22, the Group's revenue decreased by 14.0% year-on-year to approximately HK$2,316,315,000, down from HK$2,693,865,000 in FY2020/21[24]. - Gross profit also declined from HK$319,645,000 to HK$245,532,000, maintaining a stable gross margin of 10.6% despite the revenue drop[24]. - Shareholders' profit decreased by 45.1% to HK$56,858,000 compared to HK$103,626,000 in the previous fiscal year[24]. - The overall gross profit margin decreased by 1.3 percentage points from 11.9% to 10.6%, with gross profit declining by 23.2% from HK$319,645,000 to HK$245,532,000[46]. - Profit attributable to equity holders of the Company decreased by 45.1% year-on-year from approximately HK$103,626,000 to HK$56,858,000, with basic earnings per share dropping to HK12.95 cents from HK23.61 cents[47]. Impact of COVID-19 - The adverse impact of the COVID-19 pandemic, including changes in fair value of real estate development projects, contributed to the decline in profit[22]. - The COVID-19 pandemic has heightened operational risks, leading to significant business uncertainty and restricted operations in several products[133]. - Supply chain disruptions due to COVID-19 have caused material price increases and challenges in securing stable quality supplies, though the Group remains confident in managing these risks[142]. Cost Management and Strategy - The Group implemented stringent cost control measures to stabilize raw material and labor costs while optimizing the product mix[22]. - The macro operating environment faced challenges such as rising commodity prices and increased production costs due to the pandemic[14]. - The Group continues to focus on maintaining a balance between production schedules and cost management amid ongoing market uncertainties[22]. - The Group will continue stringent cost control measures to manage rising labor, raw materials, and logistics costs[36]. - The transition from a volume-driven to a margin-driven strategy is underway, focusing on smaller projects with higher margins[23]. - The Group's strategic initiatives include reshaping the product portfolio and geographical diversification to ensure a sustainable future[41]. Market and Product Development - Future strategies may involve exploring new markets and enhancing product offerings to adapt to changing consumer demands[22]. - The Group aims to expand its customer portfolio in emerging markets such as electric vehicles and coffee machines to increase revenue streams[28]. - The Group plans to explore Original Brand Manufacturing (OBM) opportunities to enhance brand awareness and profit margins[30]. - The Motors Segment contributed HK$1,044,052,000, accounting for 45.1% of the Group's consolidated turnover for the year, compared to 38.9% in the previous year[49]. - The Group's strategy to reduce reliance on a single major customer in the robotics sector has freed up production capacity to explore new industries and customers with higher margins[54]. - The juvenile products and baby care products sector is expected to benefit from a positive outlook, with the global baby care products market projected to reach USD25.4 billion by 2028, growing at a CAGR of 4.3%[58]. - The smart home market is anticipated to grow at a strong CAGR of 25.3% from 2022 to 2027, reaching USD313.95 billion by 2027, benefiting the Group's Smart Products sector[59]. - The Group is actively exploring collaborations in the medical sector, with new projects confirmed and mass production scheduled to begin in the financial year ending March 31, 2023[60]. Operational Adjustments - A new production site in Southeast Asia is being considered to provide lower labor and logistics costs, enhancing flexibility for brand customers[31]. - The Group plans to shift its focus towards juvenile and baby care products while exploring new overseas markets using its Malaysia plant[65]. - The Motors Segment successfully acquired new customers, particularly in the automobile and home appliance sectors, with mass production set to begin in FY2023[76]. - The Motors Segment plans to closely monitor raw material prices and maintain sufficient inventories while ensuring on-time delivery to meet customer demand[76]. - The Motors Segment aims to expand its presence in European markets by increasing sales and marketing personnel and diversifying its customer portfolio[78]. Financial Position and Governance - As of March 31, 2022, the Group's cash and bank balances were HK$257,584,000, down from HK$390,556,000 as of March 31, 2021, representing a decrease of approximately 34%[92]. - The Group's net current assets increased to HK$525,724,000 as of March 31, 2022, compared to HK$417,886,000 as of March 31, 2021, reflecting an increase of about 26%[92]. - Total bank borrowings decreased to HK$529,147,000 as of March 31, 2022, from HK$659,546,000 as of March 31, 2021, indicating a reduction of approximately 20%[92]. - The current ratio improved to 1.46 times as of March 31, 2022, compared to 1.29 times as of March 31, 2021[92]. - The gearing ratio decreased to 33.3% as of March 31, 2022, down from 44.0% as of March 31, 2021[92]. - The Group's profit for the year and financial position are detailed in the financial statements on pages 86 to 227 of the annual report[127]. - The Board does not recommend the payment of a final dividend to shareholders for the year[127]. - The Company has maintained a stable board of independent non-executive directors since 2004, ensuring governance and oversight[115]. - The Company continues to uphold its commitment to corporate governance through the active participation of its independent directors in key committees[119]. Employee and Leadership - The Group employed approximately 5,600 full-time employees as of March 31, 2022, with fewer than 70 based in Hong Kong[99]. - The Group's employee benefits in Hong Kong include retirement plans, medical plans, and performance bonuses, while in China and Malaysia, benefits are provided according to local labor laws[99]. - The Group has established a stock option plan to incentivize and reward high-performing employees[99]. - The Chairman and CEO, Mr. Cheng Chor Kit, has over 40 years of experience in the toy industry, indicating strong leadership in this sector[102]. - Mr. Liu Tat Luen, an executive director, has over 20 years of experience in the financial industry across Asia, enhancing the Group's financial expertise[103]. - The Group's executive team includes members with extensive backgrounds in engineering and product development, ensuring a strong foundation for innovation[108]. Risk Management - The Group has established risk management and internal control systems to continuously identify and manage principal risks[132]. - The Group's financial performance is influenced by macroeconomic and political factors, including exchange rate fluctuations and trade tariffs[134]. - The Group's foreign currency exposure and interest rate risk details are provided in the "Management Discussion and Analysis" section of the annual report[135].

Financial Performance - Revenue for the six months ended 30 September 2021 was HK$1,364,779,000, an increase of 1.8% compared to HK$1,340,004,000 in the same period last year[13]. - Gross profit for the period was HK$168,658,000, down 9.4% from HK$186,066,000 in the previous year[13]. - Profit before income tax decreased to HK$87,553,000, a decline of 13.9% from HK$101,708,000 in the prior year[13]. - Profit for the period from continuing operations was HK$76,274,000, compared to HK$90,860,000 in the same period last year, representing a decrease of 16.0%[13]. - Total comprehensive income for the period was HK$82,682,000, down 28.4% from HK$115,362,000 in the previous year[15]. - Basic earnings per share from continuing operations was HK17.38 cents, a decrease from HK20.75 cents in the prior year[32]. - Other income and gains for the period amounted to HK$43,230,000, compared to HK$49,484,000 in the previous year[13]. - Selling and distribution expenses increased to HK$37,797,000 from HK$27,177,000, reflecting a rise of 39.0%[13]. - Administrative expenses were HK$79,768,000, down from HK$96,679,000, indicating a decrease of 17.5%[13]. - The company reported an income tax expense of HK$11,279,000, compared to HK$10,848,000 in the previous year[13]. Assets and Liabilities - Total assets increased to HK$3,257,950,000 as of September 30, 2021, compared to HK$3,210,833,000 as of March 31, 2021, reflecting a growth of approximately 1.5%[41]. - Current assets rose to HK$1,965,112,000, up from HK$1,874,202,000, indicating an increase of about 4.9%[41]. - Total equity attributable to equity holders increased to HK$1,582,179,000 from HK$1,499,496,000, representing a growth of approximately 5.5%[41]. - Non-current liabilities decreased to HK$185,297,000 from HK$255,021,000, showing a reduction of about 27.3%[41]. - Bank borrowings reduced significantly from HK$191,874,000 to HK$124,932,000, a decrease of approximately 34.9%[41]. - Total liabilities decreased to HK$1,675,771,000 from HK$1,711,337,000, indicating a reduction of approximately 2.1%[41]. - Deferred tax liabilities increased to HK$40,032,000 from HK$37,097,000, reflecting an increase of about 7.9%[41]. Cash Flow - Cash flows from operating activities were HK$69,498,000, a decrease from HK$87,636,000 in the prior year, reflecting a decline of approximately 20.7%[47]. - Net cash outflow from investing activities was HK$34,943,000, compared to a net cash outflow of HK$11,945,000 in the previous year, showing a significant increase in cash outflow[47]. - The company reported a net cash outflow from financing activities of HK$101,931,000, compared to a net cash outflow of HK$22,690,000 in the previous year, indicating increased financing costs[47]. - The Group's cash and bank balances as of September 30, 2021, were HK$323,586,000, down from HK$390,556,000 as of March 31, 2021[199]. Segment Performance - The Group is organized into four reportable operating segments: electrical and electronic products, motors, real estate development, and glass technology and application[64]. - Revenue from external customers for electrical and electronic products was HK$801,883,000, an increase from HK$562,896,000 in the previous period, representing a growth of 42.5%[78]. - The Electrical and Electronic Products Business Segment generated revenue of HK$801,883,000, accounting for 58.8% of the Group's total turnover, down from 62.3% in the previous year[148]. - The Motors Business Segment contributed HK$562,896,000, representing 41.2% of the Group's consolidated turnover, an increase from 37.7% in the prior year[148]. - Operating profit for the segment decreased by 40.7% year-on-year to HK$53,341,000, down from HK$89,979,000 in the first half of FY2021, due to raw material shortages and logistics disruptions[157]. Government Subsidies and Other Income - The company recognized government subsidy income of HK$23,768,000 during the period, compared to HK$31,225,000 in the first half of FY2021[83]. - The Group recognized subsidies of HK$15,727,000 during the period, which were included in other income and gains[135]. Future Outlook and Strategies - The Group is actively developing OEM+ business opportunities and has established a house brand healthcare product line, "Kin Yat Health," to diversify its product portfolio[143]. - The company plans to implement a "China Plus One" strategy by establishing a production facility in Malaysia to enhance production efficiency and flexibility[170]. - The Group aims to expand its customer base by exploring new applications for its products and targeting potential customers in the ASEAN region, such as Thailand and Vietnam[183]. - The Group plans to continue R&D efforts to develop more powerful, quieter, lighter, and energy-saving motors to enhance its product portfolio[185]. - The healthcare products sector is expected to enhance overall profitability due to its higher entry barriers and stability post-COVID-19[169].

Financial Performance - The Group recorded a revenue decline of 13.5% year-over-year to HK$2,693,865,000, down from HK$3,114,221,000 in the previous year[21] - Profit attributable to equity holders decreased by 39.1% to HK$103,626,000, compared to HK$170,049,000 in the previous year[21] - Gross profit margin improved by 1.2 percentage points to 11.9%, despite a decrease in overall gross profit from HK$333,341,000 to HK$319,645,000 due to lower turnover scale[21] - Basic earnings per share for the year were HK$23.61 cents, down from HK$38.74 cents in the previous year[45] - Segment operating profit decreased by 14.6% to HK$138,447,000, down from HK$162,172,000 in the previous year[56] - The Electrical and Electronic Products Business Segment contributed HK$1,639,837,000, representing 60.9% of the Group's total turnover, down from 70.7% in the previous year[40] - The Motors Business Segment saw an increase in turnover to HK$1,048,551,000, contributing 38.9% to the Group's consolidated turnover, up from 26.9% in the previous year[40] - The Electrical and Electronic Products Business segment's external turnover decreased by 25.5% to HK$1,639,837,000, contributing 60.9% to the Group's total revenue[53] - The Group's profit for the year ended March 31, 2021, is detailed in the financial statements, but no final dividend is recommended for shareholders[178] Strategic Initiatives - The Group is focusing on optimizing its customer mix and phasing out lower-margin orders to enhance pricing power and financial performance[22] - The Group aims to expand revenue streams by exploring new customers and improving the product portfolio mix[22] - The Group plans to establish a new production site in Southeast Asia to meet customer demand for flexible production solutions, although this plan is currently on hold due to COVID-19 and political instability[28] - The Group aims to enhance its customer portfolio and revenue streams by targeting sectors boosted by COVID-19 and developing a healthcare business platform[33] - The Group will maintain good relationships with existing brand owners to ensure stable cash flow while exploring Original Brand Manufacturing (OBM) opportunities[34] - The Group is committed to diversifying its strategies to mitigate risks associated with concentrated customer portfolios and production bases[30] - The Group plans to establish production lines in Malaysia for the Electrical and Electronic Products Business Segment by the end of 2021, enhancing capacity and trust with global brand customers[74] - The Group aims to diversify its production base outside of China, particularly in Southeast Asia, to mitigate geopolitical risks and explore new business opportunities[74] Market Dynamics - The COVID-19 pandemic has led to a shift in consumer behavior, increasing demand in sectors such as office equipment and home appliances, which may benefit the Group's business[14] - The Sino-U.S. trade war has prompted brand owners to consider diversifying production sites, impacting the Group's operational strategies[15] - The pandemic has reshaped market dynamics, creating new opportunities for the Group to expand its client mix and market share[81] - The Robotics sector faced order reductions and pricing pressure due to Sino-U.S. trade tensions, impacting profitability[57] - The Juvenile products sector benefited from increased orders driven by the stay-at-home economy, with baby gears and STEAM education products as major growth drivers[63] Cost Management - The Group is committed to stringent cost control measures to stabilize raw material and labor costs amid rising material prices and currency fluctuations[21] - The Group implemented stringent cost control measures to stabilize raw material and labor costs while optimizing the product mix[41] - The Group will strategically secure sufficient inventories of key raw materials to ensure stable supply and reduce profit pressure amid rising raw material prices[75] - Continuous automation and internal management improvements are being implemented to maximize capital reserves and maintain stringent cost control[97] Healthcare Sector Development - The Group established a healthcare product line, "Kin Yat Health," producing disposable facial masks, responding to the COVID-19 pandemic[68] - In November 2020, the Group obtained the Medical Device Registration Certificate from the Guangdong Medical Products Administration, allowing expansion into the healthcare sector[27] - The healthcare products sector aims to diversify its offerings and expand its customer base, having received medical device certifications[69] - The Group will gradually allocate more resources to develop new products in the healthcare sector to diversify macro and geopolitical risks[71] Employee and Management - As of March 31, 2021, the group employed approximately 7,400 full-time employees, with fewer than 150 based in Hong Kong, while the majority worked in China and Malaysia[147] - The group has established an employee stock option plan to incentivize and reward high-performing employees, with the number of options granted based on individual performance and rank[147] - The company’s remuneration committee reviews and determines the compensation of individual executive directors and senior management based on industry standards and market conditions[147] - The annual report highlights the company's commitment to employee welfare and competitive compensation structures to attract and retain talent[147] Financial Position - As of March 31, 2021, the Group's cash and bank balances increased to HK$390,556,000, up from HK$256,606,000 in the previous year, representing a growth of approximately 52%[127] - The Group's net current assets rose to HK$417,886,000, compared to HK$283,068,000 as of March 31, 2020, indicating a year-on-year increase of about 48%[127] - Shareholders' equity increased to HK$1,499,496,000 from HK$1,225,920,000, reflecting a growth of approximately 22%[127] - The total bank borrowings decreased slightly to HK$659,546,000 from HK$676,809,000, showing a reduction of about 3%[127] - The current ratio improved to 1.29 times from 1.22 times, indicating better liquidity management[129] - The gearing ratio decreased to 44.0% from 55.2%, suggesting a reduction in financial leverage[129] Risk Management - The Group's risk management and internal control systems are in place to continuously identify and manage principal risks[196] - The Group recognizes that adverse economic conditions may negatively impact its operational results and financial performance[197] - The ongoing COVID-19 pandemic has caused delays in the Group's production base planning schedule[198] - The Group is considering a multi-nationalised approach to mitigate political and economic risks associated with its production bases[198] Corporate Social Responsibility - Charitable donations made by the Group during the year amounted to HK$187,000, a decrease from HK$233,000 in the previous year[179] - The Group's charitable contributions reflect a commitment to social responsibility, despite a reduction in donation amounts compared to the previous year[179]

Financial Performance - Revenue for the six months ended 30 September 2020 was HK$1,340,004, a decrease of 28% compared to HK$1,861,015 in the same period of 2019[13]. - Gross profit increased to HK$186,066, representing a gross margin of approximately 13.9%, compared to HK$176,394 in 2019[13]. - Profit before income tax for the period was HK$101,708, up 16.6% from HK$87,251 in the previous year[13]. - Profit for the period attributable to equity holders of the Company was HK$90,378, an increase of 15.4% from HK$78,377 in 2019[13]. - Total comprehensive income for the period was HK$115,362, compared to a loss of HK$16,844 in the same period of 2019[15]. - Earnings per share for continuing operations was HK20.75 cents, up from HK18.40 cents in the previous year[17]. - The Company reported an exchange translation reserve gain of HK$24,922 from foreign operations, compared to a loss of HK$92,996 in 2019[15]. - The total comprehensive income attributable to equity holders of the Company from continuing operations was HK$116,060, compared to a loss of HK$12,117 in 2019[17]. - Profit for the period was HK$90,378, compared to HK$78,377 in the previous period, an increase of 15.5%[24]. - Total comprehensive income for the period was HK$115,359, reflecting an increase from HK$90,159, a growth of 28.0%[24]. Assets and Liabilities - Total assets increased to HK$3,041,720, up from HK$2,874,361, representing a growth of 5.8%[19]. - Total equity rose to HK$1,341,444, compared to HK$1,226,082, reflecting an increase of 9.4%[21]. - Current liabilities increased to HK$1,384,611, up from HK$1,169,878, marking a rise of 18.3%[21]. - Non-current liabilities decreased to HK$315,665 from HK$382,805, a reduction of 17.5%[21]. - Cash and cash equivalents increased to HK$308,686, compared to HK$244,681, showing a growth of 26.2%[19]. - Total non-current assets decreased to HK$1,272,507 from HK$1,325,819, a decrease of 4.0%[19]. - Accounts and bills receivable rose to HK$473,311,000 as of 30 September 2020, compared to HK$228,426,000 at the end of March 2020, representing a significant increase of 107.5%[88]. - The current portion of financial liabilities increased to HK$820,025,000 from HK$624,131,000[126]. Cash Flow - Cash flows from operating activities decreased to HK$87,636,000, down 67.7% from HK$271,511,000 in the previous year[27]. - Net cash outflow from investing activities was HK$11,945,000, a significant reduction from HK$115,896,000 in the prior year[27]. - Cash flows from financing activities resulted in a net outflow of HK$22,690,000, compared to a net outflow of HK$99,967,000 in the previous year[27]. - The net increase in cash and cash equivalents for the period was HK$53,001,000, slightly lower than HK$55,648,000 in the same period last year[27]. - Cash and cash equivalents at the end of the period stood at HK$325,437,000, an increase from HK$288,484,000 at the end of the previous year[27]. - The Group's total cash inflow from the disposal of subsidiaries amounted to HK$37,448,000 during the period[27]. Segment Performance - The Group's total revenue for the period was HK$1,345,515,000, with segment revenue from electrical and electronic products at HK$852,207,000 and motors at HK$507,405,000[44]. - Segment results showed an operating profit of HK$89,979,000 for electrical and electronic products and HK$41,893,000 for motors, totaling HK$111,427,000 for continuing operations[44]. - The Electrical and Electronic Products Business Segment generated external turnover of HK$834,214,000, accounting for 62.3% of the Group's consolidated turnover, a decrease of 40.3% from HK$1,397,142,000 in the same period last year[147]. - The Motors Business Segment contributed HK$505,790,000, representing 37.7% of the Group's consolidated turnover, an increase from HK$463,770,000 in the previous year[147]. - Despite the decrease in turnover, segment profit increased by 14.9% to HK$89,979,000 during the period, up from HK$78,342,000 in the first half of FY2019[157]. - The segment results for electrical and electronic products showed a profit of HK$78,342,000, while motors generated a profit of HK$31,662,000[49]. Operational Challenges and Strategies - The Group's turnover decreased by 28.0% YoY, from approximately HK$1,861,015,000 to approximately HK$1,340,004,000 due to reduced orders from major customers and order postponements amid the COVID-19 pandemic[143][145]. - The robotics sector faced downward pricing pressures due to U.S. tariffs and rising operating costs in China, impacting profitability[158]. - The company plans to diversify its product mix and client portfolio towards less cyclical industries for sustainable growth[171]. - The company is committed to investing in engineering capabilities and R&D to enhance competitive advantages in the market[169]. - The Group's proactive measures included managing raw material and labor costs, maintaining a balanced production schedule, and enhancing customer and product diversity[147]. Market and Product Development - The company has established a new house brand production line, "Kin Yat Health," to diversify its business portfolio[142]. - The company has a strong R&D capability, focusing on technology-driven production in robotics, juvenile products, and smart products[142]. - The company aims to leverage its reliable quality products and strong manufacturing capabilities to expand its clientele during the current market consolidation[180]. - The company plans to continue developing new products for existing clients and explore new opportunities to diversify risks[167]. - The diversified product portfolio of the juvenile products sector helped mitigate the impact of the COVID-19 pandemic on demand[168]. Real Estate and Property Development - The real estate development segment reported a loss of HK$21,224,000, compared to a loss of HK$2,847,000 in the first half of FY2019, primarily due to a one-off impairment loss of HK$20,400,000[196]. - The COVID-19 pandemic adversely affected sales momentum, with no property unit sales closed during the period[198]. - The segment anticipates a boost in property sales from the future commissioning of the Guiyang-Naning high-speed train services[199]. - The segment aims to explore the possibility of realizing remaining property units as a whole, with a total saleable area of approximately 22,000 square meters for residential units and 5,000 square meters for commercial properties[200].

Financial Performance - The Group's consolidated turnover decreased by 24.8% year-over-year to HK$3,114,221,000, down from HK$4,139,886,000 in the previous year[17]. - Gross profit increased to HK$333,341,000, compared to HK$289,876,000 in the previous year, resulting in a gross profit margin of 10.7%, up from 7.0%[17]. - Profit attributable to equity holders of the Company was HK$170,049,000, an increase from HK$112,384,000 in the previous year[17]. - The Group's total revenue decreased by 24.8% year-on-year to HK$3,114,221,000, while gross profit increased to HK$333,341,000, resulting in a gross profit margin of 10.7%[19]. - Profit attributable to equity holders rose by 51.3% year-on-year from HK$112,384,000 to HK$170,049,000, with basic earnings per share increasing to HK38.74 cents from HK25.61 cents[48]. - The Group's consolidated turnover decreased by 24.8% year-on-year, from approximately HK$4,139,886,000 to approximately HK$3,114,221,000 for the financial year ended March 31, 2020[42][44]. Market Environment - The macro environment was affected by the Sino-US trade dispute and the COVID-19 pandemic, leading to conservative order placements from downstream brand owners[17]. - The global economic shutdown due to COVID-19 disrupted supply chains and reduced purchasing power, creating a challenging operating environment for manufacturers[12]. - The year was characterized by unpredictability due to fluctuating trade negotiations between China and the U.S.[11]. - The COVID-19 pandemic led to significant disruptions, including city lockdowns and manufacturing suspensions, impacting global supply chains and consumer demand[42][44]. Cost Control and Efficiency - The Company implemented stringent cost control measures in materials, contributing to the improved gross profit margin[17]. - Selling and distribution expenses decreased by 29.8% due to stringent cost control measures implemented by the Group[22]. - The Group aims to maintain a lean cost structure through increased automation and efficient management practices[22]. - The Group plans to enhance automation levels to lower unit costs and improve profitability amid the economic downturn[75]. - The Group is focused on stringent cost control measures over raw materials and labor costs[99]. Business Diversification and New Products - The Group successfully established a new business line for manufacturing house brand medical protective facemasks with a maximum daily production capacity of approximately 500,000 pieces[23]. - The house brand "Kin Yat Health" facemask product was launched in April 2020 and received positive customer feedback, with plans to explore additional healthcare products to diversify revenue streams[27]. - The Group is developing new products such as children's facemasks and protective clothing, which have attracted interest from overseas customers[33]. - The Group launched the "Kin Yat Health" brand to diversify its business portfolio into health care products, including masks and protective gear[41][43]. - The company plans to expand its product offerings under the "Kin Yat Health" brand to include various healthcare products, including disinfection products[85]. Operational Adjustments - The production of products for a major customer in the electrical and electronic products segment was reduced to balance the production schedule and product portfolio[17]. - The Group is developing new products such as children's masks and protective clothing for medical personnel, which have attracted interest from overseas clients[35]. - The Group has relocated a production line from the PRC to Malaysia to diversify production solutions in response to the Sino-US trade dispute[75]. - The Group is focusing on automation and upgrading to Industry 4.0 to improve production efficiency and better serve major customers[59]. Financial Position and Cash Flow - The Group's cash flow has been improving, and it continues to make solid progress in implementing key strategic initiatives despite the challenges posed by COVID-19[31]. - As of March 31, 2020, the Group's cash and bank balances amounted to HK$256,606,000, an increase from HK$227,170,000 as of March 31, 2019[106]. - The Group's net current assets were HK$283,068,000 as of March 31, 2020, compared to net current liabilities of HK$192,183,000 as of March 31, 2019[106]. - The current ratio improved to 1.22 times as of March 31, 2020, up from 0.91 times as of March 31, 2019[106]. - Total bank borrowings decreased to HK$676,809,000 as of March 31, 2020, down from HK$810,106,000 as of March 31, 2019[106]. Corporate Governance and Compliance - The company is focused on maintaining high standards of corporate governance through its independent directors[132]. - The annual report emphasizes the commitment to transparency and accountability in financial reporting[138]. - The Group's operations are regulated by local laws in Hong Kong and Mainland China, and it has complied with relevant laws and regulations during the Year[143]. - The Group continues to implement strategies to strengthen market penetration and reduce dependency on specific markets due to adverse economic conditions[149]. Customer and Supplier Relationships - The Group faces high customer concentration risks, relying on large international customers for product development, which poses potential long-term risks[150]. - The Group has established long-term partnerships with suppliers to mitigate supply chain risks and ensure stable material supply[151]. - During the Year, sales to the Group's five largest customers accounted for 73% of total sales, with the largest customer contributing 55% of total sales[186]. - Purchases from the Group's five largest suppliers accounted for 34% of total purchases, with the largest supplier contributing 15% of total purchases[186].