[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].

Group 1 - The core point of the article is that Puda Tech (00650) has seen a significant increase in its stock price, rising over 10% in early trading, attributed to the announcement of new orders for its Incellplate Cu series copper plating equipment [1] - The company announced that it has received orders for 83 units of equipment for semiconductor wafer cleaning, solar cell wet processing, and copper plating since April 1, 2023, which is an increase of 22 units compared to a previous announcement on September 12, 2023 [1] - The copper plating technology is estimated to improve solar cell conversion efficiency by 0.3% to 0.5% compared to traditional methods, indicating potential benefits for the solar energy industry [1] Group 2 - As of the latest report, Puda Tech's stock is trading at 0.37 HKD with a trading volume of 593.55 million HKD [1] - The revenue from the newly announced orders has not yet been recognized, suggesting future revenue potential for the company [1]

Equipment Development and Manufacturing - The Company has commenced development and manufacturing of innovative Wafer Fabrication Equipment (WFE) and solar cell production equipment during the six months ended September 30, 2023[6]. - WFE includes high-end single wafer cleaning and low pressure chemical vapor deposition (LPCVD) equipment for front-end wafer processing[6]. - The solar cell production equipment includes wet chemical cleaning and copper plating equipment[6]. - LPCVD equipment is currently under development, indicating ongoing innovation efforts[6]. - The Company is focusing on the development of high WPH solar wet processing equipment and copper plating equipment as major future products[16]. - The company is focusing on developing core competencies in semiconductor and solar cell equipment to enhance productivity and meet customer needs[24]. - The company is actively involved in the development of LPCVD equipment for the semiconductor industry[38]. - The Company plans to invest RMB140 million to launch its LPCVD equipment business, with commercial production expected to begin in 2024[36]. - The Company has completed the design of two new sets of LPCVD equipment, enhancing its capabilities and capacity[36]. Financial Performance - Revenue from sales of equipment for the six months ended September 30, 2023, was HK$336.3 million, a decrease from HK$432.7 million for the same period in 2022, representing a decline of approximately 22.3%[12]. - Revenue for the six months ended September 30, 2023, was HK$336,257,000, a decrease of 22.3% compared to HK$432,746,000 for the same period in 2022[174]. - Gross profit for the six months ended September 30, 2023, was HK$54.7 million, down from HK$60.8 million in the same period of 2022, reflecting a decline of about 10.4%[12]. - Loss before taxation increased by HK$113.2 million, or approximately 347.2%, from a loss of HK$32.6 million to a loss of HK$145.8 million[87]. - The net loss for the period was HK$149,834,000, significantly higher than the loss of HK$42,989,000 reported in the previous year[177]. - The company reported a basic and diluted loss per share of HK$(1.884) for the period[174]. - The total assets as of September 30, 2023, were HK$2,745.2 million, a decrease from HK$2,912.4 million as of March 31, 2023[13]. - Current liabilities increased to HK$692.9 million as of September 30, 2023, compared to HK$594.7 million as of March 31, 2023[13]. - Net assets as of September 30, 2023, were HK$1,953.98 million, down from HK$2,201.5 million as of March 31, 2023[13]. Market Trends and Opportunities - The global semiconductor market is projected to reach US$676 billion in 2023 and US$900 billion by 2030, with semiconductor manufacturing equipment sales expected to hit US$91.2 billion in 2023[21][22]. - China's semiconductor equipment market is anticipated to account for approximately 26.3% of the global market in 2023, representing a significant investment opportunity[21][22]. - The levelized cost of electricity (LCOE) for solar cells has decreased by over 80% in the past decade, prompting the company to expand its investments in the solar cell industry[21][22]. - The global solar module market is expected to reach US$46.9 billion by 2023 and US$78.1 billion by 2030, with the solar cell equipment market projected to reach US$5.6 billion by 2030[21][22]. - The wafer cleaning equipment market is valued at US$6 billion in 2023, accounting for 6% of the global market, with China's domestic market worth over US$1.5 billion[24]. - The company is expected to capture a significant share of the photovoltaic market, as the domestic market accounts for nearly 95% of the global market[24]. Oil and Gas Operations - The Company operates an oil and gas production project in the People's Republic of China[5]. - Revenue from crude oil sales for the same period was HK$73.6 million, compared to HK$99.3 million in the previous year, indicating a decrease of approximately 25.9%[12]. - The company reported a gross production volume of 144,515 barrels from its upstream oil and gas business, a decrease from 154,312 barrels in the previous period[15]. - The average daily gross production volume was 803 barrels, a decline from 857 barrels[15]. - The average unit selling price decreased significantly to HK$636 per barrel from HK$853 per barrel[46]. - The company successfully drilled 4 new oil wells during the reporting period, completed as of September 30, 2023[16]. Strategic Acquisitions and Partnerships - The Company aims to expand its market presence through strategic acquisitions and partnerships in the semiconductor sector[6]. - The company has made significant investments in upstream crude oil assets since 2016, enhancing its portfolio in the oil and gas sector[40]. - The company is evaluating investment opportunities in the pan-semiconductor industry, indicating a strategic focus on this sector[38]. - The company plans to issue further announcements regarding investments and business developments in accordance with the Listing Rules[38]. Research and Development - Administrative and R&D expenses amounted to approximately HK$145.8 million, driven by the rapid development of the semiconductor and solar industries[16]. - Research and development expenses surged to HK$70,733,000, compared to HK$15,665,000 in the same period last year, indicating a focus on innovation[174]. Shareholder and Corporate Governance - The Company changed its domicile from Bermuda to the Cayman Islands, effective November 17, 2023[139]. - The registered office of the Company has been relocated to Grand Cayman, Cayman Islands, following the change of domicile[140]. - The Company aims to maximize shareholders' value in the long term through new investment opportunities[135]. - The company has a structured Share Award Scheme that includes vesting conditions for the underlying shares granted to directors[145]. - The company complied with all applicable code provisions of the Corporate Governance Code throughout the reporting period, except for code provision C.2.1[168].

Financial Performance - For the six months ended September 30, 2023, the company reported total revenue of HKD 336,257,000, a decrease from HKD 432,746,000 in the previous period[5]. - Revenue from equipment sales was HKD 248,263,000, down from HKD 333,458,000, while revenue from oil sales was HKD 73,563,000, compared to HKD 99,288,000 previously[5]. - The company incurred a net loss of HKD 149,834,000 for the period, significantly higher than the loss of HKD 42,989,000 in the prior period[5]. - The EBITDA for the current period was a loss of HKD 88,706,000, compared to a profit of HKD 8,025,000 in the previous period[5]. - Revenue for the six months ended September 30, 2023, was HKD 336,257,000, a decrease of 22.3% compared to HKD 432,746,000 for the same period in 2022[11]. - Gross profit for the same period was HKD 54,734,000, down from HKD 60,809,000, reflecting a decline in oil sales profit due to falling oil prices[11]. - The total comprehensive loss for the period was HKD 188,994,000, up from HKD 105,802,000 in the previous year, indicating a year-over-year increase of about 78%[13]. - The company reported a net loss of HKD 149,834,000 for the six months ended September 30, 2023, compared to a loss of HKD 42,989,000 for the same period in 2022, representing an increase in loss of approximately 248%[12]. Assets and Liabilities - Total assets as of September 30, 2023, were valued at HKD 2,745,192,000, down from HKD 2,912,435,000 as of March 31, 2023[6]. - The company’s total liabilities increased to HKD 791,213,000 from HKD 710,972,000 in the previous reporting period[6]. - Current liabilities increased to HKD 692,904,000 from HKD 594,682,000, marking an increase of about 17%[15]. - The company's total assets decreased to HKD 2,052,288,000 from HKD 2,317,753,000, representing a decline of approximately 11%[15]. - The company's equity attributable to shareholders decreased to HKD 1,964,536,000 from HKD 2,206,849,000, a decrease of about 11%[15]. - The company's cash and cash equivalents amounted to HKD 457,634,000 as of September 30, 2023, compared to HKD 262,848,000 at the end of March 31, 2023, reflecting a significant increase of approximately 74%[14]. Operational Highlights - The company is developing innovative wafer fabrication equipment (WFE) and solar cell production equipment, including LPCVD equipment, which is currently under development[2]. - The company has established and acquired subsidiaries to support its semiconductor and solar cell equipment business, including Shanghai Productive Technologies and Xuzhou Productive Technologies[3]. - The subsidiary Hongbo Mining reported total oil sales of approximately 144,603 barrels, generating total revenue of about HKD 92,000,000 during the reporting period[4]. - The company received 64 orders for solar cell and semiconductor cleaning equipment during the reporting period, with a total of 158 orders received to date[9]. - The company issued 67 units of solar cell and semiconductor cleaning equipment during the reporting period, with a total of 100 units issued to date[9]. Research and Development - Research and development expenses amounted to HKD 70,733,000, significantly higher than HKD 15,665,000 in the previous year, driven by rapid expansion in semiconductor and solar energy sectors[11]. - The company has developed three models of 12-inch CVD equipment, including ALD-SIN, POLY, and LP-SIN, and is currently manufacturing samples[54]. - The company plans to invest RMB 140 million to initiate its LPCVD equipment business, with expectations for commercial production of these products to begin in 2024[54]. Market and Industry Insights - The global semiconductor market is projected to reach $676 billion in 2023 and $900 billion by 2030, with semiconductor manufacturing equipment sales expected to hit $91.2 billion in 2023[45]. - The global solar energy components market is projected to reach $46.9 billion in 2023 and $78.1 billion by 2030, while the solar battery equipment market is expected to reach $5.6 billion by 2030[45]. - The wafer cleaning equipment market is expected to reach $6 billion in 2023, with China representing about 26.3% of this market[46]. Oil Production and Sales - The average selling price per barrel of oil was HKD 636, down from HKD 853, indicating a significant price drop[8]. - Total oil production for the period was 144,515 barrels, a decrease from 154,312 barrels in the same period last year[8]. - The average unit production cost per barrel was HKD 360, slightly up from HKD 354 in the previous year[8]. - The total oil sales revenue decreased by approximately 25.9% to about HKD 92 million, and net income decreased to HKD 73.6 million compared to the same period last year[59]. Corporate Governance and Compliance - The company has maintained compliance with corporate governance codes, except for a deviation regarding the separation of the roles of Chairman and CEO[114]. - The board believes that the current structure does not compromise the balance of power and authority within the company[115]. - The company confirmed that there were no significant events occurring after September 30, 2023, until the date of the interim results announcement[118]. Future Outlook and Strategy - The company aims to expand its business portfolio into the rapidly developing semiconductor and solar cell equipment manufacturing sectors, enhancing revenue sources and financial performance[55]. - The company will continue to monitor market conditions and strictly control risks while enhancing asset value[57]. - The group will continue to seek new investment opportunities to expand its revenue base and profit potential[110].

Business Overview - The Company is engaged in the pan-semiconductor business, focusing on productivity-driven equipment for semiconductor and solar cell industries, and operates an oil and gas production project in the PRC[5]. - For the financial year ended March 31, 2023, the Company commenced development and manufacturing of innovative Wafer Fabrication Equipment (WFE) and solar cell production equipment[5]. - WFE includes high-end single wafer cleaning and chemical vapor deposition (CVD) equipment for front-end wafer processing, while solar cell production equipment includes wet chemical cleaning and copper plating equipment[5]. - The Company has established and acquired several subsidiaries in China and abroad for R&D and manufacturing, including Productive Technologies (Shanghai) Limited and Productive Technologies (Xuzhou) Limited[5]. - CVD equipment and copper plating equipment are currently under development, indicating ongoing investment in new technologies[5]. - The Company aims to enhance its market position through strategic acquisitions and partnerships in the semiconductor equipment sector[6]. - The Company is focusing on expanding its R&D capabilities to innovate and improve its product offerings in the semiconductor industry[6]. - The Company is actively pursuing market expansion strategies to increase its footprint in the semiconductor and solar energy markets[6]. Financial Performance - Revenue from sales for FY2023 reached HK$567.5 million, a significant increase from HK$138.3 million in FY2022, representing a growth of approximately 311%[11]. - Sales from equipment contributed HK$357.6 million, while crude oil sales generated HK$188.3 million, up from HK$138.3 million in the previous year[11]. - Gross profit for FY2023 was HK$115.9 million, compared to HK$41.2 million in FY2022, indicating a gross profit margin improvement[11]. - The company reported a loss before taxation from continuing operations of HK$218.9 million, an improvement from a loss of HK$475.1 million in FY2022[11]. - Loss for the year from continuing operations was HK$229.2 million, compared to HK$483.0 million in the previous year, showing a reduction in losses[11]. - Total assets increased to HK$2,912,435,000 in 2023, up from HK$2,873,106,000 in 2022, representing a growth of 1.9%[12]. - Current liabilities rose significantly to HK$594,682,000 in 2023, compared to HK$178,712,000 in 2022, marking an increase of 232.5%[12]. Oil and Gas Operations - The Company’s subsidiary, Xilin Gol League Hongbo Mining Development Company Limited, is engaged in the sale of crude oil, diversifying its business portfolio[5]. - Net sales volume of crude oil reached 244,542 barrels in 2023, an increase from 228,607 barrels in 2022, reflecting a growth of 6.9%[16]. - Average unit selling price of crude oil increased to HK$730 per barrel in 2023, up from HK$605 per barrel in 2022, a rise of 20.7%[16]. - The company recorded a gross production volume of 305,701 barrels in 2023, compared to 285,459 barrels in 2022, indicating an increase of 7.1%[16]. - The loss for FY2022 from continuing operations was primarily due to administrative and R&D expenses of approximately HK$216.9 million related to the rapid development of the new pan-semiconductor business[14]. - Hongbo Mining successfully drilled 8 new wells since resuming operations in April 2022 after halting due to COVID-19[18]. - The average unit production cost before depreciation was HK$136 per barrel in 2023, down from HK$148 per barrel in 2022, a decrease of 8.1%[16]. Investments and Acquisitions - The company holds a 39% equity interest in JUSDA Energy, which has been engaged in LNG logistics services since 2019[9]. - The company has a 35.5% equity interest in Weipin, which operates in the online ride-hailing services sector in China[10]. - The company has classified the investment in Weipin as an interest in an associate since June 21, 2021, following the discontinuation of its online ride-hailing services[15]. - The company completed the acquisition of RENA Technologies GmbH for €50 million (approximately HKD 412.08 million) on August 18, 2022, integrating the financial performance of the target companies into its financial statements[53]. - The company conditionally agreed to acquire target companies in the solar business for approximately EUR57 million on June 13, 2022[179]. - The acquisition was completed on August 18, 2022, and the financial results of the target companies have been consolidated into the company's financial statements[179]. Market Outlook - The global semiconductor market is projected to reach US$676 billion in 2023 and US$900 billion by 2030, driven by advancements in AI, big data, and electric vehicles[22]. - Global sales of semiconductor manufacturing equipment are expected to reach US$91.2 billion in 2023[22]. - The global solar module market is estimated to reach US$46.9 billion by 2023 and US$78.1 billion by 2030[22]. - The wafer cleaning equipment market is projected to reach US$6 billion in 2023, accounting for 6% of the global WFE market[39]. - China's semiconductor equipment market is expected to account for approximately 26.3% of the global market in 2023[37]. - The solar cell cleaning equipment global market size is expected to be more than US$200 million in 2023, accounting for 16% of the market share[39]. Research and Development - The Company is focused on expanding its clean energy portfolio through investments in LNG and related sectors[9]. - The Company aims for a market share of 20%-25% in cleaning equipment and 10%-15% in PECVD over the next 10 years[27]. - The Company plans to invest US$30 million in a foreign-invested project for solar cell and semiconductor cleaning equipment production lines, with operations starting in May 2022[25]. - The Company aims to consolidate its existing business and expand its market share in the photovoltaic market while focusing on the semiconductor cleaning market and launching CVD equipment with good technical performance in the medium term[120][122]. Corporate Governance and Management - The Company is enhancing its management team with experienced professionals to strengthen its semiconductor and solar power business capabilities[25]. - The Board believes that new business development aligns with the best interests of the Company and its shareholders[61]. - The Company aims to maximize shareholders' value in the long term through broadening its revenue base and profit potential[194]. Employee and Shareholder Information - As of March 31, 2023, the Group had 360 employees, a significant increase from 101 employees as of March 31, 2022[193]. - Total staff costs for FY2022 amounted to approximately HK$167.0 million, up from HK$82.2 million in FY2021, reflecting a growth of 103.4%[193]. - A share award scheme was adopted on August 6, 2021, allowing for a maximum of 4% of the issued share capital to be awarded, with the current limits being 275,668,398 shares (3.67%) and 68,917,099 shares (0.92%) for individual participants[185].

Company Overview - The company operates in the semiconductor and solar cell sectors, focusing on productivity-driven equipment for the semiconductor industry[11]. - The Company has established and acquired subsidiaries for the development and manufacturing of innovative Wafer Fabrication Equipment (WFE) and solar cell production equipment, with ongoing development of CVD and copper plating equipment[12]. - PDT Shanghai, a wholly-owned subsidiary, is engaged in the sale and R&D of semiconductor equipment, including backside thinning and cleaning equipment[12]. - Rena Shanghai and Rena Yiwu, acquired on August 18, 2022, are responsible for the sale and R&D of solar cell equipment, with 100% equity interest held by the Company[12]. - The Company has commenced businesses in the development of high-end semiconductor and solar cell production equipment, indicating a strategic focus on innovation and market expansion[12]. Financial Performance - The interim report for 2022 highlights a significant increase in revenue, with a year-over-year growth of 25%[2]. - Revenue from continuing operations was approximately HK$432.7 million, with HK$333.5 million from equipment sales and HK$99.3 million from crude oil sales[19]. - Gross profit for the period was HK$60.8 million, showing a significant increase due to higher crude oil prices[19]. - Investment income amounted to HK$21.9 million, a recovery from a loss of HK$257.8 million in the previous period[19]. - Loss before taxation from continuing operations was HK$32.6 million, compared to a loss of HK$277.4 million in the prior period[19]. - The company reported a net loss for the period of HK$42,989,000, compared to a loss of HK$222,083,000 in the previous year, marking a reduction of 80.7%[183]. - Total revenue for the six months ended 30 September 2022 was HK$432.7 million, down from HK$816.4 million in the same period of 2021[110]. Market Outlook and Strategy - The company has outlined a future outlook projecting a 30% increase in market share over the next fiscal year[2]. - New product development initiatives are expected to launch three innovative technologies by Q3 2023, aimed at enhancing production efficiency[2]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% increase in sales from this region by the end of 2023[2]. - The company plans to gradually expand investments in semiconductor equipment opportunities to capitalize on the growing market demand[33]. - The company aims to build core competencies to synergize the equipment business in both semiconductor and solar cells[35]. Sustainability and Corporate Responsibility - The interim report emphasizes a commitment to sustainability, with plans to reduce carbon emissions by 25% over the next five years[2]. - The company is investing approximately $5 million in R&D for new technologies aimed at reducing production costs by 15%[2]. Subsidiaries and Investments - The Company holds a 100% equity interest in Hongbo Mining, which is fully consolidated into the Company's financial statements[14]. - The Company has a minority interest in Jiangxi Jovo Energy Company Limited, classified as a financial asset at fair value through profit or loss[15]. - JUSDA Energy, in which the Company holds a 39% equity interest, provides LNG logistics services and is classified as an associate in the financial statements[16]. - Weipin, a mobility sector investment, is engaged in online ride-hailing services in China, with the Company holding a 35.5% equity interest[16]. Operational Highlights - The company received orders for 27 sets of solar cell cleaning equipment and 4 sets of semiconductor cleaning equipment during the reporting period[25]. - As of the interim report date, the company has received a total of 63 purchase orders for semiconductor and solar cell equipment, with manufacturing ongoing in Xuzhou[25]. - The company successfully drilled 8 new wells since April 2022, marking a return to drilling activities after a halt in 2020[26]. Shareholder Information - The Company has not granted any rights to acquire benefits through shares or debentures to any Directors during the Reporting Period[156]. - The Company did not purchase, redeem, or sell any of its listed shares during the Reporting Period[169]. - The Company has adopted the Corporate Governance Code as its corporate governance policy, subject to amendments[171]. Employee and Governance - The total number of Awarded Shares granted during the reporting period was 89,924,094, reflecting active engagement in employee incentive programs[139]. - The remuneration package for employees includes basic salary, year-end bonus, awarded shares, medical, and provident fund contributions[142]. - The audit committee comprises two Independent Non-executive Directors and one Non-executive Director, ensuring appropriate business and financial experience[143]. Risks and Challenges - Geopolitical factors are impacting the semiconductor industry, with a weakened international supply chain service capability for Chinese semiconductor customers[89]. - The Group is exposed to currency risk primarily through overseas investments denominated in HK$, US$, and RMB[115]. - The interest rate risk arises primarily from interest-bearing borrowings, which the Group regularly reviews to manage[120].

Financial Performance - As of March 31, 2022, IDG Energy Investment Limited reported a gross sales volume of approximately 285,759 barrels from its oil and gas production project, generating gross revenue of approximately HK$172.9 million[7]. - Revenue from sales and services for FY2022 was HK$138,326,000, a significant increase from HK$90,008,000 in FY2021, representing a growth of 53.5%[14]. - The investment loss for FY2022 was HK$328,640,000, compared to a loss of HK$297,577,000 in FY2021, indicating a deterioration in investment performance[14]. - The total loss for the year was HK$426,054,000, slightly improved from a loss of HK$436,376,000 in FY2021[14]. - Basic loss per share for continuing and discontinued operations was (5.830 cents), a marginal improvement from (5.849 cents) in FY2021[14]. - Non-current assets decreased to HK$981,125,000 in FY2022 from HK$2,417,054,000 in FY2021, reflecting a significant reduction in asset value[16]. - Current assets increased to HK$1,891,981,000 in FY2022 from HK$1,188,470,000 in FY2021, showing a growth of 59.2%[16]. - Total assets decreased to HK$2,873,106,000 in FY2022 from HK$3,605,524,000 in FY2021, indicating a decline of 20.2%[16]. - Total liabilities decreased to HK$279,652,000 in FY2022 from HK$561,245,000 in FY2021, a reduction of 50.2%[16]. - Net assets for FY2022 were HK$2,593,454,000, down from HK$3,044,279,000 in FY2021, reflecting a decrease of 14.8%[16]. Oil and Gas Operations - Hongbo Mining, a wholly-owned subsidiary, is engaged in exploration, development, production, and sale of crude oil in China, fully consolidating its financial figures into the company's financial statements[8]. - The gross production volume of oil and gas from Hongbo Mining for the year ended 31 March 2022 was 285,459 barrels, a decrease of 9.2% from 314,466 barrels in 2021[22]. - The net sales volume for the same period was 228,607 barrels, down 10.6% from 255,618 barrels in the previous year[22]. - The average unit selling price increased significantly to HK$605 per barrel, up 72.0% from HK$352 per barrel in 2021[22]. - The average unit production cost before depreciation and amortization rose to HK$148 per barrel, an increase of 45.1% from HK$102 per barrel[22]. - The loss from the Stonehold investment was HK$362,418,000, compared to a loss of HK$300,421,000 in the previous year[22]. - Hongbo Mining resumed drilling activities in April 2022 after halting all drilling since 2020 due to the COVID-19 pandemic[24]. - The company completed 4 new wells as of the date of the annual report[24]. Semiconductor and Solar Power Investments - The company has invested in several portfolio companies, including Productive Technologies (Shanghai) Limited and Productive Technologies (Xuzhou) Limited, which focus on manufacturing equipment for semiconductor and solar power industries[5]. - The company operates in advanced manufacturing of productivity-driven equipment applied in semiconductor and solar power businesses[5]. - The global semiconductor market is projected to reach US$676 billion in 2022 and US$900 billion by 2030, with mainland China accounting for over 50% of the total market[31]. - Global sales of semiconductor manufacturing equipment are forecasted to reach US$101.3 billion in 2022, up from US$95.3 billion in 2021[31]. - The global solar module market is estimated to reach US$56.2 billion in 2022 and US$78.1 billion by 2030, with mainland China representing 90% of the total market[31]. - The company aims to capture a market share of 20% to 25% in the global cleaning equipment market for semiconductors and 50% in the solar power cleaning equipment market[35]. - The company has expanded its management team with experienced professionals from top-tier semiconductor companies, enhancing its expertise in new business developments[35]. - The collaboration with RENA, a leading manufacturer of wet processing equipment, allows the company to leverage advanced technologies and management systems[35]. - The wet processing equipment was officially launched on June 2, 2022[47]. - The company aims to become a leader in the cleaning equipment market in mainland China in the short to medium term and globally in the next decade[95]. Investment and Acquisition Activities - The company is focused on expanding its portfolio in the semiconductor and solar power sectors through strategic investments and acquisitions[5]. - The company completed the acquisition of Hongbo Mining in July 2016 for RMB558.88 million (approximately HK$652 million)[54]. - The company has conditionally agreed to acquire the entire equity interest in Shanghai Rena Trading Co., Ltd. and Rena Solar Technologies (Yiwu) Co., Ltd. for a consideration of EUR50 million (approximately HK$412.08 million)[198]. - The acquisition is expected to significantly expedite the development of the Company's solar cell equipment business segment, leveraging leading technologies in high-throughput cleaning and copper plating equipment[198]. - The company plans to issue further announcements regarding significant investments and business developments in accordance with listing rules[52]. - The company is actively identifying and evaluating investment opportunities in the semiconductor and solar power equipment sectors[52]. Market Conditions and Economic Factors - The Brent crude oil futures prices rose from $70/barrel in Q2 2021 to $139/barrel in Q1 2022, driven by supply-demand mismatch and geopolitical factors[38]. - The rise in oil prices is primarily driven by a mismatch between supply and demand, with OPEC's production increase falling short of expectations[53]. - The global COVID vaccination progress has accelerated, leading to a recovery in crude oil demand[53]. - Geopolitical factors are expected to support high oil prices in the short term due to insufficient supply, with OPEC's production cuts and low capital expenditures contributing to ongoing supply challenges[96]. - The expected long-term low oil prices are a result of reduced demand for fossil fuels as alternative renewable energy sources gain traction[116]. Corporate Governance and Management - The company has a diverse board with members holding various significant positions in other publicly listed companies, enhancing its governance and strategic oversight[161]. - The management team includes professionals with advanced degrees from prestigious institutions, such as Harvard and Tsinghua University, indicating a high level of expertise[159][163]. - The company aims to maximize shareholders' value in the long term through strategic investments and market expansion[147]. - The Audit Committee has reviewed the Company's annual results for the year ended 31 March 2022, ensuring compliance with accounting principles and practices[147]. - The company is focused on corporate governance, human resource management, and public and investor relations[168]. Mobility Services Business - Weipin, acquired in 2019, is engaged in online ride-hailing services in China, with the Company holding a 35.5% equity interest[13]. - As of June 21, 2021, the Company no longer controls the majority voting rights of Weipin's board of directors, and its financial results are no longer consolidated[13]. - The financial results of Weipin have ceased to be consolidated into the Company's financial statements since June 21, 2021[83]. - The investment of Weipin is now accounted as interest in an associate under the equity method from June 21, 2021[83]. - The mobility services platform experienced a strong recovery in Q2 2021, with average daily orders surpassing 32 million[100]. - Average daily orders dropped to 20 million in Q1 2022 due to new COVID-19 waves and quarantine rules reducing inter-city mobility demand[100]. - The management team is working on expanding new traffic platform partnerships to secure more orders and adjusting the reward system to improve retention rates[87]. Natural Gas Market - JOVO offers a wide range of clean energy products, including liquefied natural gas (LNG), liquefied petroleum gas (LPG), and methanol[11]. - The average price of LNG imports rose sharply compared to 2020, contributing to upward pressure on natural gas prices[72]. - The economic recovery post-COVID-19 has led to increased energy demand globally, affecting natural gas supply and prices[72]. - JOVO plans to supplement its working capital to further expand production capacity and improve profitability[73]. - The Company has made investments in energy-related business portfolios to capture market opportunities[72]. Risks and Challenges - The company is focused on managing liquidity by reducing drilling activities and pulling back on capital expenditures and growth projects[38]. - The continuing decrease in EBITDA is attributed to the increased risk in shale oil development due to global carbon neutralization efforts[116]. - The Company and its subsidiaries are exposed to liquidity risk and regularly monitor liquidity requirements to maintain sufficient cash reserves and committed lines of funding from major financial institutions[124]. - The Company has implemented a hedging strategy by purchasing swaps for part of the production of Hongbo Mining from July 2022 to March 2023 to protect against oil price declines[123].