格隆汇10月14日丨广和通(00638.HK)发布公告，公司拟全球发售约1.35亿股H股(视乎超额配股权行使与 否而定)，中国香港发售股份1350.82万股，国际发售股份约1.22亿股；2025年10月14日至10月17日招 股，预期定价日为10月20日；发售价将为每股发售股份19.88-21.50港元，每手买卖单位为200股，中信 证券为独家保荐人；预期股份将于2025年10月22日开始在联交所买卖。 ...

Core Viewpoint - Guanghe Tong (00638) is set to launch an IPO from October 14 to October 17, 2025, aiming to issue approximately 135 million H-shares at a price range of HKD 19.88 to HKD 21.5 per share, with trading expected to commence on October 22, 2025 [1] Company Overview - The company is a leading provider of wireless communication modules, offering products such as data transmission modules, smart modules, and AI modules, along with customized solutions for various applications [1] - According to Frost & Sullivan, the company holds a 15.4% global market share in the wireless communication module sector, making it the second-largest provider worldwide [1] Financial Performance - Revenue from continuing operations increased from RMB 5.203 billion in 2022 to RMB 5.652 billion in 2023, representing an 8.6% growth, and is projected to rise by 23.3% to RMB 6.971 billion in 2024 [2] - For the four months ending April 30, 2025, revenue rose by 21.2% to RMB 2.481 billion compared to the same period in 2024 [2] - Gross profit also saw an increase from RMB 1.066 billion in 2022 to RMB 1.187 billion in 2023, a growth of 11.4%, and is expected to reach RMB 1.267 billion in 2024, marking a 6.7% increase [2] Capital Utilization - Assuming an IPO price of HKD 20.69 per share, the company estimates a net proceeds of approximately HKD 2.689 billion from the global offering [3] - The allocation of proceeds is planned as follows: 55% for R&D, particularly in AI and robotics; 15% for building manufacturing facilities in Shenzhen; 10% for repaying bank loans; 10% for strategic investments or acquisitions; and 10% for working capital and general corporate purposes [3] Strategic Partnerships - The company has entered cornerstone investment agreements with several investors, including Qindao Gantong and Pacific Asset Management, agreeing to subscribe for shares amounting to approximately HKD 1.253 billion [2]

Group 1 - The company, Guanghe Tong, plans to conduct an initial public offering (IPO) from October 14 to October 17, 2025, offering approximately 135 million H-shares, with 10% allocated for Hong Kong and 90% for international sales, plus an over-allotment option of 15% [1] - The estimated share price range is HKD 19.88 to HKD 21.5, with trading expected to commence on October 22, 2025 [1] - Guanghe Tong is recognized as the second-largest wireless communication module provider globally, holding a market share of 15.4% based on revenue from continuing operations in 2024 [1] Group 2 - The company's revenue from continuing operations increased from RMB 5.203 billion in 2022 to RMB 5.652 billion in 2023, representing an 8.6% growth, and is projected to rise by 23.3% to RMB 6.971 billion in 2024 [2] - Gross profit also saw an increase from RMB 1.066 billion in 2022 to RMB 1.187 billion in 2023, an 11.4% rise, and is expected to grow by 6.7% to RMB 1.267 billion in 2024 [2] - The company has secured cornerstone investment agreements with several investors, committing to purchase shares worth approximately HKD 12.53 billion at the offering price [2] Group 3 - Assuming a share price of HKD 20.69, the company estimates net proceeds from the global offering to be approximately HKD 2.689 billion [3] - About 55% of the proceeds is expected to be allocated for research and development, focusing on AI and robotics technology [3] - The company plans to allocate approximately 15% of the proceeds for building manufacturing facilities in Shenzhen, China, primarily for module production [3]

深圳市廣和通無線股份有限公司 Fibocom Wireless Inc. 股份代號 : 0638 （於中華人民共和國註冊成立的股份有限公司） 全球發售 獨家保薦人、保薦人兼整體協調人、聯席全球協調人、聯席賬簿管理人及聯席牽頭經辦人 重要提示 閣下如對本招股章程任何內容有任何疑問，應諮詢獨立專業意見。 Fibocom Wireless Inc. 深圳市廣和通無線股份有限公司 （於中華人民共和國註冊成立的股份有限公司） 全球發售 聯席賬簿管理人及聯席牽頭經辦人 香港交易及結算所有限公司、香港聯合交易所有限公司及香港中央結算有限公司對本招股章程的內容概不負責，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招股章程全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 本招股章程連同附錄五「送呈香港公司註冊處處長及展示文件－送呈公司註冊處處長的文件」所述文件，已遵照香港法例第32章公司（清 盤及雜項條文）條例第342C條的規定，送呈香港公司註冊處處長登記。香港證券及期貨事務監察委員會及香港公司註冊處處長對本招股 章程或上述任何其他文件的內容概不負責。 預期發售價將由保薦人兼整體協調人（為其 ...

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].