Core Viewpoint - Pudat Technology (00650) announced the termination of KPMG as its auditor following the conclusion of the upcoming annual general meeting, with the board deciding not to renew KPMG's appointment based on the recommendation of the audit committee [1] Group 1 - The board has resolved to recommend the appointment of RSM Hong Kong as the new auditor, effective from the end of the annual general meeting until the conclusion of the next annual general meeting, subject to shareholder approval [1]

Group 1 - The core point of the article is that Pudat Technology (00650.HK) announced the resignation of KPMG as its auditor and the board has proposed to appoint RSM Hong Kong as the new auditor [1]

Core Viewpoint - Puda Technology (00650) announced that KPMG will complete its term as the company's auditor at the end of the upcoming annual general meeting and will not be reappointed [1] Group 1 - The board of directors has decided not to renew KPMG's appointment as the company's auditor based on the recommendation of the audit committee [1] - The board has proposed to appoint RSM Hong Kong as the new auditor, effective from the end of the annual general meeting until the conclusion of the next annual general meeting, subject to shareholder approval [1]

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 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，概不對因本公告全部 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。 普 達 特 科 技 有 限 公 司* PRODUCTIVE TECHNOLOGIES COMPANY LIMITED （於百慕達註冊成立並於開曼群島存續之有限公司） （股份代號：650） 建議更換核數師 本公告由普達特科技有限公司（「本公司」，連同其附屬公司，統稱「本集團」）董事 會（「 董 事 會 」）根 據 香 港 聯 合 交 易 所 有 限 公 司 證 券 上 市 規 則（「 上 市 規 則 」）第 13.51 (4)條而作出。 核數師退任 董事會宣佈，畢馬威會計師事務所（「畢馬威」）將於本公司應屆股東週年大會（「股 東週年大會」）結束時任期屆滿並退任本公司核數師之職，董事會根據本公司審核 委員會（「審核委員會」）之推薦意見，已決議不再續聘畢馬威為本公司核數師。此 乃本公司的商業決定，亦為加強核數師獨立性策略之一部分。畢馬威自二零一 ...

CONTENTS目錄 | CORPORATE INFORMATION | 公司資料 | 2 | | --- | --- | --- | | BUSINESS HIGHLIGHTS | 業務亮點 | 4 | | CORPORATE PROFILE | 公司概況 | 8 | | FINANCIAL SUMMARY | 財務概要 | 10 | | OPERATING SUMMARY | 營運概要 | 13 | | CHAIRMAN'S STATEMENT | 主席報告 | 16 | | MANAGEMENT DISCUSSION AND ANALYSIS | 管理層討論及分析 | 18 | | DIRECTORS' AND SENIOR MANAGEMENT'S | 董事及高級管理人員簡介 | 57 | | BIOGRAPHIES | | | | REPORT OF THE DIRECTORS | 董事會報告 | 66 | | CORPORATE GOVERNANCE REPORT | 企業管治報告 | 90 | | ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT | 環境、 ...

Core Viewpoint - The company has received an order for a prototype high-temperature sulfuric acid cleaning (high-temperature SPM) equipment from a client, marking a significant step towards breaking the overseas monopoly in the domestic high-temperature SPM cleaning equipment market [1][2] Group 1 - The prototype equipment is currently in the assembly and testing phase, having passed multiple performance tests and marathon tests, with some indicators reaching internationally leading levels [1] - The high-temperature SPM cleaning process can cover various applications for 12-inch wafer critical processes, including PR-strip, Post-CMP, and NiPt remove, which are recognized as high-difficulty wet processes dominated by overseas suppliers [1] - The equipment features domestic leading and internationally competitive high-temperature control capabilities, covering high-temperature SPM processes up to 190°C, with a temperature control range of ±2°C, outperforming major overseas suppliers' ±5°C [1] Group 2 - The company plans to focus on completing the delivery and validation of the equipment, expanding customer adoption in high-end applications, and leveraging its technical team's advantages in semiconductor wet processing technology to address industry pain points and enhance customer efficiency [2]

[Performance Highlights](index=1&type=section&id=Performance%20Highlights) [Business Highlights](index=1&type=section&id=Business%20Highlights) In FY2024, the company's semiconductor equipment business made significant progress, with cleaning equipment serving over ten wafer fab clients and securing repeat orders, and LPCVD equipment successfully shipped. The solar cell equipment business completed a comprehensive upgrade, launching new products with enhanced compatibility and higher capacity. As of the fiscal year-end, the company's order backlog reached HKD 366 million, a 49% year-on-year increase, laying a foundation for future profit growth - Significant industrialization progress in the semiconductor equipment business, with cleaning equipment serving over ten wafer fab clients, completing delivery and verification of multiple units; LPCVD equipment has been successfully shipped to customers[3](index=3&type=chunk) - CUBE/QUADRA single-wafer cleaning equipment has served **8 clients** and secured repeat orders; OCTOPUS single-wafer cleaning equipment completed key client verification and converted to a formal order[4](index=4&type=chunk)[5](index=5&type=chunk) - Solar cell equipment underwent comprehensive upgrades and iterations, with newly designed wet bench and inline machines showing improvements in capacity and process compatibility to address market demand and industry fluctuations[9](index=9&type=chunk) - As of the end of FY2024, the company's total **order backlog was HKD 366 million**, including HKD 138 million worth of semiconductor cleaning equipment shipped pending acceptance, representing a **49% year-on-year increase** in order backlog[11](index=11&type=chunk) [Key Financial Data](index=6&type=section&id=Key%20Financial%20Data) For FY2024 (ended March 31, 2025), the company's total revenue was HKD 279 million, a 49% decrease from HKD 544 million in the previous fiscal year. Although gross profit declined from HKD 82.2 million to HKD 64.0 million, the annual loss narrowed from HKD 362 million to HKD 313 million. Net assets increased to HKD 1.45 billion Key Financial Data (HKD thousands) | Metric | FY2023 (Ended 2024/3/31) | FY2024 (Ended 2025/3/31) | | :--- | :--- | :--- | | **Revenue (HKD thousands)** | **543,638** | **278,829** | | - Equipment Sales | 368,646 | 105,510 | | - Crude Oil Sales | 157,663 | 155,205 | | **Gross Profit (HKD thousands)** | **82,203** | **63,959** | | **Loss for the Year (HKD thousands)** | **(362,131)** | **(313,054)** | | - Attributable to Equity Holders | (347,484) | (303,814) | | **EBITDA (HKD thousands)** | (241,571) | (191,419) | | **Adjusted EBITDA (HKD thousands)** | (160,366) | (44,909) | | **Total Assets (HKD thousands)** | 2,623,137 | 2,319,160 | | **Total Liabilities (HKD thousands)** | 864,906 | 868,862 | | **Net Assets (HKD thousands)** | 1,758,231 | 1,450,298 | - The annual loss was primarily attributable to: (1) approximately **HKD 224 million** in R&D and administrative expenses related to business expansion; (2) a non-cash goodwill impairment of approximately **HKD 67.6 million** due to the downturn in the photovoltaic industry; and (3) a non-cash impairment of approximately **HKD 73 million** on the associate company Weipin[17](index=17&type=chunk) [Business Review and Outlook](index=4&type=section&id=Business%20Review%20and%20Outlook) [Company Overview](index=4&type=section&id=Company%20Overview) The Group primarily engages in semiconductor and solar cell production equipment businesses and operates an oil and gas production project in China. The company operates its equipment business through the establishment and acquisition of various subsidiaries (e.g., Shanghai Pudat, Xinkai, Ruina Yiwu) and conducts crude oil sales through Hongbo Mining - The Group's core business comprises two main segments: first, productivity-driven equipment for semiconductors and solar cells; and second, an oil and gas production project operated in China[12](index=12&type=chunk) - The equipment business is primarily operated through subsidiaries such as Shanghai Pudat (sales and R&D), Xuzhou Pudat (manufacturing), Xinkai (LPCVD equipment), Pudat Technology, and Ruina Yiwu (solar equipment). Additionally, the Group strategically invested in Shenghongye (dry resist strip and epitaxy equipment)[13](index=13&type=chunk)[15](index=15&type=chunk) - The oil and gas business is managed by the wholly-owned subsidiary Hongbo Mining, which engages in crude oil exploration, development, production, and sales, with total sales volume of **320,092 barrels** and total sales revenue of approximately **HKD 194 million** in FY2024[15](index=15&type=chunk) [Business Segment Review](index=28&type=section&id=Business%20Segment%20Review) This fiscal year, both the semiconductor and solar businesses made technological and market progress, but revenue declined due to adjustments in the photovoltaic market. Oil and gas production remained stable, though revenue slightly decreased due to oil price fluctuations. A significant impairment was recognized for the mobility services investment due to intense market competition [Semiconductor and Solar Cell Business](index=28&type=section&id=Semiconductor%20and%20Solar%20Cell%20Business) The semiconductor cleaning equipment business progressed steadily, with CUBE and OCTOPUS series equipment achieving mass production and client acceptance, along with repeat orders. The LPCVD equipment portfolio continued to improve, with LP-SiN equipment already delivered to clients. The company's R&D investment accounted for 40.3% of total revenue, with expenses decreasing by 26.6% year-on-year. The solar business focused on product optimization to adapt to market adjustments - Semiconductor cleaning equipment business progressed smoothly: CUBE equipment entered mass production, with **8 clients** cumulatively delivered; 12-inch OCTOPUS equipment completed major client verification and converted to a formal order; high-temperature sulfuric acid cleaning equipment OCTOPUS-HTSPM passed client performance tests[78](index=78&type=chunk) - LPCVD equipment product portfolio made progress: LP-SiN equipment has been delivered to clients; ALD-SiN equipment is nearing delivery; LP-POLY and ALD-SiOCN equipment completed major development and are nearing industrialization[81](index=81&type=chunk) - In FY2024, the company's R&D expenses were **HKD 112 million**, a **26.6% year-on-year decrease**, accounting for **40.3% of total revenue**[78](index=78&type=chunk) [Oil and Gas Business](index=33&type=section&id=Oil%20and%20Gas%20Business) Hongbo Mining successfully drilled 8 new wells in FY2024, with total crude oil production slightly increasing by 4.5% to 319,922 barrels. Despite increased sales volume, net revenue slightly decreased by 1.6% to HKD 155.2 million due to a drop in average selling price from HKD 617/barrel to HKD 606/barrel. Concurrently, unit production costs slightly rose due to new well depletion Oil and Gas Operating Metrics | Operating Metric | FY2023 | FY2024 | | :--- | :--- | :--- | | Average Daily Total Production (barrels) | 850 | 889 | | Average Unit Selling Price (HKD/barrel) | 617 | 606 | | Average Unit Production Cost (HKD/barrel) | 363 | 369 | | Average Unit Production Cost (Excluding Depreciation & Amortization) (HKD/barrel) | 151 | 175 | - Due to macroeconomic factors such as oil and gas price fluctuations, 1P and 2P net reserves as of March 31, 2025, decreased by **7.4%** and **17.0%** respectively[93](index=93&type=chunk) [Mobility Services Business](index=37&type=section&id=Mobility%20Services%20Business) The company holds a 35.5% equity stake in the mobility services platform Weipin, accounted for as an associate. Due to intense market competition, leading platforms tend to partner with their own drivers, causing Weipin's performance to fall below expectations. Consequently, the company recognized an impairment loss of HKD 73 million on this investment in FY2024 - The company holds a **35.5% equity stake** in Weipin, which ceased to be a controlled subsidiary in June 2021 and is now accounted for as an interest in an associate using the equity method[96](index=96&type=chunk) - Due to intense market competition, Weipin's performance continued to fall below management's expectations. As a result, the Group recognized an impairment loss of **HKD 73 million** on its investment in Weipin in FY2024[97](index=97&type=chunk)[98](index=98&type=chunk) [Outlook](index=40&type=section&id=Outlook) The company believes semiconductors and solar cells are global development trends and will focus on providing high-productivity technology solutions to clients. While geopolitical factors pose challenges, they also accelerate the self-sufficiency of China's semiconductor industry chain, creating market opportunities for the company. The company's long-term goal is to become a leader in the semiconductor cleaning and LPCVD equipment niche markets - Geopolitical factors are expected to accelerate the growth of China's wafer manufacturing capacity, providing the company with greater market space and opportunities to engage with leading clients[106](index=106&type=chunk) - The solar industry is entering an adjustment period, but high-efficiency technologies like TOPCon and BC, along with cost-reduction solutions such as copper plating, present opportunities for the company[107](index=107&type=chunk) - The company's short-to-medium term objectives are: 1. Consolidate its position in the semiconductor cleaning equipment market; 2. Launch and mass-produce semiconductor LPCVD equipment; 3. Commercialize key processes and innovative technologies[108](index=108&type=chunk) [Financial Performance Analysis (MD&A)](index=41&type=section&id=Financial%20Performance%20Analysis%20(MD%26A)) [Overall Performance Review](index=41&type=section&id=Overall%20Performance%20Review) In FY2024, revenue decreased due to a significant 68.0% decline in equipment sales, primarily driven by the downturn in the photovoltaic industry. Gross profit fell by 22.2%. Through cost control, administrative and R&D expenses were substantially reduced. Despite goodwill and investment impairments, the annual loss narrowed from HKD 362 million to HKD 313 million, benefiting from expense control and some investment gains - Equipment and services sales decreased by **68.0%** from HKD 386 million to **HKD 124 million**, primarily due to reduced solar equipment sales caused by the photovoltaic industry downturn[110](index=110&type=chunk) - Administrative expenses decreased by **39.7%** to **HKD 113 million**, and R&D expenses decreased by **26.6%** to **HKD 112 million**, mainly due to cost control measures and the completion of major product R&D[116](index=116&type=chunk)[119](index=119&type=chunk) - An investment loss of **HKD 42.9 million** was recorded, primarily including a non-cash impairment of **HKD 73 million** on the associate Weipin, partially offset by gains from fund investments and an increase in the equity value of another associate[116](index=116&type=chunk)[118](index=118&type=chunk) - A goodwill impairment loss of approximately **HKD 67.6 million** was recognized due to the recent downturn in the photovoltaic industry[117](index=117&type=chunk) - EBITDA loss improved from **HKD 242 million** to **HKD 191 million**[130](index=130&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) The Group primarily funds its operations through bank borrowings and proceeds from the Foxconn subscription. As of the fiscal year-end, it held cash and bank balances of HKD 408.7 million and outstanding loans of HKD 333.1 million. The gearing ratio (total borrowings/total assets) increased from 10.0% in the previous year to 14.4% Liquidity and Capital Resources (As of 2025/3/31) | Metric (2025/3/31) | Amount (HKD thousands) | | :--- | :--- | | Cash and Bank Balances | 408,700 | | Restricted Cash | 211,800 | | Outstanding Loans | 333,100 | - The gearing ratio (total bank and other borrowings to total assets) was approximately **14.4%**, an increase from **10.0%** in the prior year[137](index=137&type=chunk) [Key Risk Management](index=48&type=section&id=Key%20Risk%20Management) The Group faces key market risks including oil price fluctuations, currency exchange rates, liquidity, interest rates, credit, litigation, and driver management risks for its mobility services investment. The company continuously assesses these risks and takes measures when necessary, but currently does not engage in hedging activities aimed at managing foreign exchange or oil price risks - Key risks include: oil price risk, currency risk (primarily HKD, USD, RMB), liquidity risk, interest rate risk, credit risk, litigation risk, and driver management risk for the mobility services platform[138](index=138&type=chunk) - Oil price risk: Crude oil prices are influenced by various uncontrollable factors; the company continuously assesses this risk but does not hold hedging instruments[139](index=139&type=chunk) - Credit risk: Primarily arises from bank cash and trade receivables. Expected credit losses on trade receivables of **HKD 3 million** were recognized this year[143](index=143&type=chunk)[144](index=144&type=chunk) [Consolidated Financial Statements](index=11&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss](index=11&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) The financial report shows that for FY2024, the company's revenue was HKD 279 million, a 49% year-on-year decrease. Gross profit was HKD 64.0 million. Operating loss was HKD 311 million. After accounting for finance income, tax, etc., the net loss for the year was HKD 313 million, narrowing from a loss of HKD 362 million in the prior year. Basic loss per share was 4.105 HK cents Consolidated Statement of Profit or Loss (HKD thousands) | Item (HKD thousands) | FY2023 (Ended 2024/3/31) | FY2024 (Ended 2025/3/31) | | :--- | :--- | :--- | | Revenue | 543,638 | 278,829 | | Gross Profit | 82,203 | 63,959 | | Operating Loss | (344,594) | (311,254) | | Loss Before Tax | (349,361) | (303,800) | | Loss for the Year | (362,131) | (313,054) | | Basic Loss Per Share (HK cents) | (4.689) | (4.105) | [Consolidated Statement of Financial Position](index=13&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, the company's total assets were HKD 2.319 billion, comprising HKD 1.069 billion in non-current assets and HKD 1.250 billion in current assets. Total liabilities were HKD 869 million. Net assets (total equity) amounted to HKD 1.450 billion Consolidated Statement of Financial Position (HKD thousands) | Item (HKD thousands) | 2024/3/31 | 2025/3/31 | | :--- | :--- | :--- | | **Assets** | | | | Non-Current Assets | 1,193,392 | 1,069,191 | | Current Assets | 1,429,745 | 1,249,969 | | **Total Assets** | **2,623,137** | **2,319,160** | | **Liabilities and Equity** | | | | Current Liabilities | 770,536 | 761,840 | | Non-Current Liabilities | 103,066 | 98,326 | | **Total Liabilities** | **868,862** | **864,906** | | **Net Assets** | **1,758,231** | **1,450,298** | [Summary of Notes to Financial Statements](index=15&type=section&id=Summary%20of%20Notes%20to%20Financial%20Statements) The notes detail the basis of financial statement preparation and key accounting policies. Revenue primarily derives from equipment sales and crude oil sales, reported by business segment (semiconductor and solar cell, oil and gas, and others). This year, a goodwill impairment of HKD 67.62 million was recognized for the solar business, along with an impairment of HKD 73.05 million for investments in associates. The company did not declare dividends or repurchase shares - Revenue is disaggregated by business line into equipment sales, crude oil sales, and services rendered. Specifically, equipment sales revenue decreased from **HKD 369 million** to **HKD 106 million**, and crude oil sales revenue decreased from **HKD 158 million** to **HKD 155 million**[41](index=41&type=chunk) - Due to the downturn in the photovoltaic industry, an impairment loss of **HKD 67,622,000** was recognized for goodwill related to the solar cell cleaning equipment manufacturing business[64](index=64&type=chunk) - An impairment loss of **HKD 73,045,000** was recognized for investments in associates, primarily Weipin[50](index=50&type=chunk)[53](index=53&type=chunk) - For the year ended March 31, 2025, the company did not declare any dividends or repurchase its own shares on the Stock Exchange[73](index=73&type=chunk) [Corporate Governance and Other Matters](index=51&type=section&id=Corporate%20Governance%20and%20Other%20Matters) [Significant Investments](index=51&type=section&id=Significant%20Investments) The Group's primary significant investment is in IDG Capital Project Fund II, L.P., with a fair value of HKD 169.8 million as of March 31, 2025, representing 7.3% of the Group's total assets. The company has committed to contribute USD 20 million to this fund, with USD 14.3 million already contributed Significant Investments | Investment Name | Investment Gain/(Loss) (HKD thousands) | Fair Value (HKD thousands) | Percentage of Total Assets | | :--- | :--- | :--- | :--- | | Fund Investment | 22,680 | 169,780 | 7.3% | [Post-Reporting Period Events](index=55&type=section&id=Post-Reporting%20Period%20Events) Subsequent to the reporting period, the company adopted a new share award scheme in April 2025 and granted over 50 million awards to 209 employees in May. Additionally, Mr. Lam Yuk Kai was appointed as a Non-Executive Director on June 27, 2025 - On April 29, 2025, the company adopted the "2025 Share Award Scheme"[164](index=164&type=chunk) - On May 14, 2025, a total of **50,140,086 awards** were granted to **209 employees** under the new scheme[165](index=165&type=chunk) - Mr. Lam Yuk Kai has been appointed as a Non-Executive Director, effective June 27, 2025[166](index=166&type=chunk) [Corporate Governance](index=53&type=section&id=Corporate%20Governance) The company is committed to high standards of corporate governance and has adopted relevant codes. The Audit Committee has reviewed the financial results for this fiscal year. The company has one deviation from the Corporate Governance Code, where the roles of Chairman and Chief Executive Officer are held by the same person (Dr. Liu Erzhong), which the Board believes enhances decision-making efficiency without compromising checks and balances - The Audit Committee has reviewed the annual consolidated financial statements with management and had no disagreement with the accounting treatments adopted[156](index=156&type=chunk) - The company deviates from Corporate Governance Code Provision C.2.1, as the roles of Chairman and Chief Executive Officer are not separated and are both held by Dr. Liu Erzhong[161](index=161&type=chunk)

Financial Performance - The company achieved a year-on-year revenue growth of 25% in the latest quarter, reaching $150 million[14]. - Revenue from equipment sales for the six months ended September 30, 2023, was HK$336.26 million, a decrease from HK$248.26 million in the same period of 2022, representing a year-over-year increase of 35.4%[32]. - Revenue for the six months ended 30 September 2024 decreased by HK$185.4 million, approximately 70.6%, from HK$262.7 million in the same period of 2023 to HK$77.3 million due to a downturn in the PV industry[123]. - Revenue from crude oil sales for the same period was HK$84.67 million, compared to HK$73.56 million in the previous year, reflecting a growth of 15.7%[32]. - The total loss for the period was HK$165.12 million, up from HK$149.83 million, marking a year-over-year increase of 10.2%[32]. - Basic and diluted loss per share was HK$2.171, compared to HK$1.884 in the same period last year, reflecting a 15.3% increase in loss per share[32]. - The company reported a loss before taxation of HK$158.33 million for the period, compared to a loss of HK$145.83 million in the prior year, representing an increase in losses of 8.5%[32]. - The net loss for the period was HK$158,331, primarily due to R&D and administrative expenses of approximately HK$131.1 million related to business expansion in the semiconductor and solar industries[38]. Market Expansion and Future Outlook - Future outlook includes a projected revenue growth of 20% for the next fiscal year, driven by new product launches[14]. - Market expansion plans include entering two new international markets by the end of the fiscal year[14]. - The company plans to expand investments in the semiconductor sector to capitalize on positive market trends[60]. - The company is focusing on expanding its market share in the backside thinning (BGBM) segment and increasing production lines for 12-inch wafers[74]. - The company aims to continuously conduct technological R&D and product iteration to create high-temperature sulfuric acid productivity products[74]. - The company is actively promoting mass equipment production while iterating existing equipment for smooth delivery of new machines[74]. - The company is enhancing operational management to optimize the entire chain from R&D to sales[74]. Research and Development - The company is investing $10 million in R&D for innovative technologies aimed at enhancing product efficiency[14]. - The company’s R&D expenses accounted for 33.29% of revenue during the reporting period, reflecting a focus on technological innovation[67]. - R&D expenses decreased by 23.8% from HK$70.7 million in the previous six months to HK$53.9 million in the reporting period[67]. - The Company has completed the R&D of three types of LPCVD equipment, covering key thin film deposition processes such as ALD-SiN, Poly, and LP-SiN[15]. - The advanced high-temperature SPM cleaning processing technology has been recognized by customers after successful marathon testing[67]. Equipment and Technology Development - The semiconductor equipment business reported a significant increase in revenue, contributing to overall growth[14]. - The newly designed batch cleaning equipment Batch N600-2.0 offers significant capacity advantages and is compatible with a wider range of silicon wafer sizes, meeting the needs of half-wafer processes for BC and HJT cells[18]. - The inline cleaning equipment Niak4-Flattener can fully match the capacity of batch equipment, enabling integration with a unique design of fully independent left and right sides[18]. - The OCTOPUS single wafer cleaning equipment has achieved breakthroughs in advanced processing technology development and mass production, with formal orders received from industry-leading customers[15]. - The CUBE platform can flexibly apply to 6-inch, 8-inch, and 12-inch production lines, providing excellent technical performance and cost-effective solutions[70]. - The LPCVD equipment market is expected to reach approximately $13 billion in 2024, accounting for 12% of the global WFE market[77]. Operational Challenges and Financial Management - The company continues to carry out technological innovation and market development, aiming for higher goals[20]. - The company is exploring potential acquisitions to strengthen its market position and diversify its product offerings[14]. - The company has established and acquired several subsidiaries in China for semiconductor and solar cell equipment manufacturing, including PDT Shanghai and PDT Xuzhou, which were established in January and February 2022, respectively[25]. - The Group's outstanding loans amounted to HK$290.3 million as of September 30, 2024, compared to HK$261.1 million as of March 31, 2024[155]. - The Group's liquidity risk management includes raising loans to cover expected cash demands, subject to board approval for borrowings exceeding predetermined levels[162]. Oil and Gas Segment Performance - Hongbo Mining, a wholly-owned subsidiary, reported a gross sales volume of 169,338 barrels of crude oil, generating revenue of approximately HK$106 million during the reporting period[31]. - The average unit selling price per barrel was HK$625 in 2023, reflecting a significant increase from the previous year[54]. - The average daily gross production volume was reported at 365 barrels during the period[54]. - The average unit production cost before depreciation and amortization was HK$945 per barrel in 2023, compared to HK$156 per barrel in 2022[54]. - The company successfully drilled 8 oil wells during the reporting period, contributing to its crude oil revenue[52]. Investment and Shareholder Information - The company completed the acquisition of Hongbo Mining in July for RMB558.88 million (approximately HK$652 million)[84]. - The Group aims to maximize shareholders' value in the long term through new investment opportunities[176]. - The Group did not hold any investments exceeding 5% of total assets, aside from the Weipin investment, as of September 30, 2024[171]. - The Directors do not recommend the payment of an interim dividend for the Reporting Period, consistent with the previous year[176]. - The Group has established provisions for potential litigation losses based on estimated risks[165].

Financial Performance - Total revenue for the reporting period was approximately HKD 161.99 million, a significant increase from HKD 336.26 million in the previous period[20]. - Revenue from oil sales amounted to HKD 84.67 million, compared to HKD 73.56 million previously, indicating a growth in oil sales[20]. - The company reported a gross profit of HKD 29.75 million, down from HKD 54.73 million, primarily due to reduced contributions from solar cell cleaning equipment sales[20][25]. - The net loss attributable to equity shareholders was HKD 160.70 million, compared to HKD 141.67 million in the previous period[20]. - Revenue for the six months ended September 30, 2024, was HKD 161,990,000, compared to HKD 336,257,000 for the same period in 2023, representing a decrease of approximately 52.2%[47]. - The net loss from operations for the six months ended September 30, 2024, was HKD 159,233,000, compared to a net loss of HKD 134,454,000 for the same period in 2023, indicating an increase in losses of about 18.4%[47]. - The total comprehensive loss for the six months ended September 30, 2024, was HKD 156,539,000, compared to HKD 188,994,000 for the same period in 2023, reflecting a decrease in total comprehensive loss of approximately 17.1%[49]. - The company reported a pre-tax loss of (HKD 158,331,000) for the six months ended September 30, 2024, compared to (HKD 145,830,000) in the prior year, indicating an increase in losses of about 8.6%[30]. Operational Highlights - The company reported a backlog of HKD 469 million in unrecognized revenue as of the mid-term earnings announcement date[10]. - The semiconductor equipment business has successfully served 7 different customers, with multiple equipment units receiving formal acceptance[3]. - The OCTOPUS single-wafer cleaning equipment has transitioned to formal orders after customer trials, indicating strong market demand[5]. - The company has completed the R&D of 3 types of LPCVD equipment, covering key thin film deposition technologies[6]. - The new Batch N600-2.0 cleaning equipment design accommodates various wafer specifications, enhancing production capacity[7]. - The InCellPlate copper plating equipment has gained high customer acceptance, supporting the industry's trend towards silver-free technology[9]. - The company is actively expanding its market presence to secure more new orders, maintaining a positive business development momentum[10]. - The company aims to achieve better profit performance with the completion of R&D projects and a rich order backlog[10]. Market Trends and Future Outlook - Future outlook includes continued investment in R&D and potential market expansion in the semiconductor and solar energy sectors[26]. - The global semiconductor market is projected to reach $673 billion by 2024, with a 3.4% year-on-year growth in global sales of semiconductor equipment expected to reach $109 billion[98]. - The wafer cleaning equipment market is expected to exceed $6 billion by 2024, accounting for 6% of the global WFE market, with the domestic market in China representing approximately 30% of the global market, valued at over $1.8 billion[99]. - The solar cell cleaning equipment market is projected to exceed $680 million globally by 2024, representing 8% of the overall equipment market share[99]. - Geopolitical factors are increasingly impacting the semiconductor industry, with expectations of accelerated growth in China's wafer manufacturing capacity starting in 2024[134]. - The solar cell industry is entering an adjustment period in 2024 but is expected to develop long-term, driven by reduced power generation costs and improved conversion efficiency[135]. Research and Development - The company continues to innovate in wafer fabrication equipment and solar cell production equipment, focusing on high-end single-wafer cleaning and LPCVD equipment[12]. - R&D expenses accounted for 33.29% of revenue, with a reduction in R&D spending from HKD 70.7 million to HKD 53.9 million, a decrease of 23.8%[102]. - The company plans to expand investments in semiconductor equipment to capitalize on positive market trends driven by AI, IoT, 5G, and autonomous vehicles[98]. - The company is focusing on technology innovation and development, with a commitment to maintaining high levels of R&D investment to support long-term business growth[102]. Oil and Gas Operations - The total sales volume of oil by Hongbo Mining during the reporting period was 169,338 barrels, generating total revenue of approximately HKD 106 million[16]. - The average daily production for the period was 945 barrels, up from 803 barrels in the previous year, reflecting a growth of approximately 17.6%[44]. - The company successfully drilled 8 oil wells during the reporting period, compared to 4 in the previous year, indicating a doubling of drilling activity[45]. - The average unit selling price per barrel was HKD 625, down from HKD 636 in the previous year, showing a decrease of about 1.7%[44]. - Crude oil sales revenue increased by approximately 15.1% to about HKD 105.8 million, while net income reached HKD 84.7 million[117]. - The average price of Brent crude oil in 2024 is projected to be around USD 82 per barrel, with the company planning to use upstream asset hedging tools to mitigate risks[138]. Financial Position and Liabilities - The total assets of the company were valued at HKD 2.57 billion, with total liabilities amounting to HKD 952.01 million[21]. - The company’s net asset value was HKD 1.61 billion, reflecting a decrease from HKD 1.76 billion in the previous period[21]. - The company's total liabilities as of September 30, 2024, were HKD 848,607,000, compared to HKD 761,840,000 as of March 31, 2024, indicating an increase of about 11.4%[51]. - The debt-to-asset ratio was approximately 11.3% as of September 30, 2024, compared to 10.0% as of March 31, 2024, indicating a rise of 1.3 percentage points[169]. Corporate Governance - The company has adhered to all applicable corporate governance codes except for clause C.2.1, which requires the roles of Chairman and CEO to be separated[200]. - Dr. Liu Erzhuang serves as both Chairman and CEO to enhance decision-making and execution efficiency[200]. - The board consists of experienced and outstanding talents, ensuring a balance of power and authority distribution[200]. - The presence of sufficient independent non-executive directors on the board supports its operational integrity[200].

Financial Performance - The company reported total sales revenue of HKD 543,638 thousand for the year ending March 31, 2024, a decrease of 4.3% compared to HKD 567,511 thousand for the previous year[11]. - Revenue from sales of oil was HKD 157,663 thousand, down 16.3% from HKD 188,345 thousand year-over-year[11]. - The company experienced a gross profit of HKD 82,203 thousand, a significant decline from HKD 115,871 thousand in the previous year, primarily due to reduced contributions from oil sales[12]. - The adjusted EBITDA was reported at HKD (143,385) thousand, compared to HKD (26,308) thousand in the previous year, indicating a worsening operational performance[11][13]. - The company recorded a net loss attributable to equity shareholders of HKD (347,484) thousand for the year ending March 31, 2024, compared to HKD (222,513) thousand in the previous year[11]. - The total comprehensive loss for the year amounted to HKD 391,815,000, compared to HKD 282,738,000 in the previous year, marking an increase of around 38.7%[19]. - The basic loss per share was HKD 4.689, compared to HKD 2.925 in the previous year, indicating a worsening of the loss per share by approximately 60.5%[17]. - The company reported a pre-tax loss of HKD (349,361) thousand for the fiscal year ending March 31, 2024, compared to a loss of HKD (218,874) thousand for the previous year, indicating a significant increase in losses[14]. Order Backlog and Equipment Delivery - As of the end of the fiscal year 2023, the company has an order backlog for semiconductor cleaning equipment amounting to approximately HKD 220.9 million, representing a 109% increase compared to fiscal year 2022, with 12-inch wafer equipment orders accounting for about HKD 179.4 million, or 81% of the total[4]. - The company has achieved a 704% increase in the order amount (including VAT) for pre-accepted orders, amounting to approximately HKD 107.9 million, with 12-inch wafer equipment orders accounting for about HKD 92.1 million, or 85% of the total[4]. - The company successfully delivered semiconductor cleaning equipment orders worth approximately HKD 154,200 thousand and solar battery cleaning equipment orders worth approximately HKD 112,400 thousand, with revenue yet to be recognized[16]. - The company has successfully delivered a total of 124 semiconductor and solar battery cleaning equipment units as of the earnings announcement date, achieving a milestone of 100 units shipped in October 2023[66]. Research and Development - The company has completed the R&D of three types of advanced LPCVD equipment, with expected deliveries in fiscal year 2024, and has signed a cooperation agreement with a key customer[2]. - The company has applied for 76 patents, including 34 invention patents, with 32 patents granted, showcasing its commitment to innovation[7]. - The company has developed a copper plating equipment that replaces silver paste, which is currently in the verification process with major clients[5]. - Research and development expenses increased by 123.12%, with revenue contribution rising from 12.10% in fiscal year 2022 to fiscal year 2023[61]. - The company aims to enhance operational management and optimize business efficiency by improving the entire chain from R&D to sales[68]. Market Trends and Future Outlook - The global semiconductor market is projected to reach $673 billion by 2024, with a significant increase in China's market share from 26% to 34%[59]. - The global photovoltaic (PV) market is expected to grow, with annual installations projected to increase from 398 GW in 2023 to 513 GW in 2024[60]. - The company plans to expand its investment in semiconductor equipment to capitalize on positive market trends[59]. - The company anticipates that the semiconductor and solar cell applications will become mainstream globally[87]. - The anticipated long-term boom in the semiconductor industry is expected to enhance the company's market opportunities and access to top-tier customers[87]. Corporate Governance and Shareholder Information - The company has committed to high standards of corporate governance and has adhered to all applicable rules, except for the separation of the roles of Chairman and CEO[129]. - The board of directors consists of seven members, including three executive directors and three independent non-executive directors[133]. - The company did not recommend the payment of a final dividend for the fiscal year 2023, compared to no dividend in fiscal year 2022[127]. Employee and Workforce Development - The company has a workforce of 435 employees, with 114 in R&D, representing about 26% of the total workforce, supporting its strategy for technological innovation[7]. - Employee costs for the fiscal year 2023 amounted to HKD 268,100,000, an increase from HKD 167,000,000 in the fiscal year 2022[123]. - The group has increased its workforce to 435 employees as of March 31, 2024, from 360 employees the previous year[123]. Acquisitions and Investments - The acquisition of Putaite Technology and Ruina Yiwu was completed on August 18, 2022, with the company now owning 100% of these subsidiaries[10]. - The company has established subsidiaries and acquired companies to enhance its operations in semiconductor and solar cell production equipment[8][9]. - The company has repurchased a total of 130,818 thousand shares at an average price of approximately HKD 0.68 per share, totaling HKD 94,790 thousand[57]. Risks and Challenges - The company faced market risks including oil price risk, currency risk, liquidity risk, interest rate risk, credit risk, equity price risk, and management risk[112]. - The company did not hold any oil production hedging instruments as of March 31, 2024, indicating a strategy to assess oil price risk continuously[113]. - The company has not engaged in any hedging activities to manage foreign exchange rate risks, focusing instead on monitoring currency fluctuations[114].