Financial Performance - Revenue for the six months ended September 30, 2019, was HKD 568.7 million, a decrease of 11.7% compared to HKD 644.2 million for the same period in 2018[10] - The company reported a net profit of HKD 1.1 million for the period, a significant decline from HKD 36.2 million in the prior year[10] - The basic earnings per share for the period was HKD 0.34, a decrease from HKD 10.80 in the previous year[17] - The company reported a pre-tax profit of HKD 4,834,000 for the six months ended September 30, 2019, a decrease of 87% compared to HKD 37,108,000 for the same period in 2018[25] - The net profit for the six months ended September 30, 2019, was HKD 1,147,000, a significant decrease from HKD 36,234,000 in the same period of 2018[81] - Net profit dropped by 97% to HKD 1.147 million, down from HKD 36.234 million in the same period last year[109] Assets and Liabilities - Total assets as of September 30, 2019, amounted to HKD 1,012.4 million, up from HKD 981.1 million as of March 31, 2019[18] - The company's net asset value rose to HKD 1,196,954,000, up from HKD 1,133,870,000 compared to the previous year[23] - Total assets minus current liabilities increased to HKD 1,261,751,000 from HKD 1,172,284,000 year-over-year[24] - The group maintained a strong cash position with cash and bank deposits of HKD 588.76 million as of September 30, 2019, compared to HKD 558.59 million as of March 31, 2019[117] - The total liabilities as of September 30, 2019, were HKD 347.54 million, with a debt-to-equity ratio of 2.8%[117] Revenue Breakdown - For the six months ended September 30, 2019, the total revenue from the group was HKD 568.691 million, with a segment profit of HKD 33.338 million[66] - The revenue breakdown by region showed Europe at HKD 246.665 million, Americas at HKD 206.970 million, Asia at HKD 92.054 million, and other regions at HKD 23.002 million[66] - Sales revenue in Europe decreased by 16% to HKD 246.665 million, while sales in the Americas increased by 16% to HKD 206.97 million[110] - Approximately 15% of sales revenue was impacted by the US-China trade war, with customers bearing tariff costs[110] Expenses and Costs - Selling and distribution costs decreased by 12.4% to HKD 10.983 million, maintaining a percentage of 1.9% of sales revenue[113] - Administrative expenses decreased by 1.4% to HKD 51.656 million, with the percentage of sales revenue increasing from 8.1% to 9.1%[113] - The financial expenses related to bank loans increased to HKD 586, compared to HKD 420 in the previous year[10] Investment Properties - Investment properties increased to HKD 525.8 million, compared to HKD 327.4 million at the end of the previous fiscal year[18] - The company reported a loss from changes in the fair value of investment properties amounting to HKD 21,995,000, compared to a gain of HKD 44,400,000 in the previous year[26] - The fair value of investment properties in Wanchai was revalued at HKD 305.4 million, resulting in a fair value decrease of HKD 22 million during the reporting period[113] Accounting Standards - The group adopted the new and revised Hong Kong Financial Reporting Standards, effective from April 1, 2019, which includes HKFRS 16 on leases[33] - The application of HKFRS 16 resulted in a reclassification of assets, with the carrying amount of right-of-use assets recognized at HKD 19,949,000 as of April 1, 2019[50] - The group confirmed that the application of new accounting standards did not have a significant impact on the financial position and performance for the current and prior periods[34] Dividends - The company paid dividends of HKD 10,063,000 during the period, compared to HKD 20,126,000 in the same period last year[29] - The company declared a final dividend of HKD 0.03 per share for 2019, totaling HKD 10,063,000, down from HKD 20,126,000 in 2018[84] - The company declared an interim dividend of HKD 0.02 per share, up from HKD 0.01 per share in 2018[109] Employee and Shareholder Information - The group employed approximately 2,650 employees as of September 30, 2019, down from 3,380 in the previous year[122] - Major shareholders include Credit Suisse Trust Limited with 156,349,960 shares, representing approximately 46.61% ownership[130] - Unison Associates Limited holds 149,779,960 shares, accounting for about 44.65% of the total shares[130] Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules[137] - There was a failure to present a resolution for the re-election of an independent non-executive director at the annual general meeting held on August 28, 2019[140] - The company has not established a nomination committee, but the board will consider suitable candidates as needed[141]

Financial Performance - Revenue for the year ended March 31, 2019, decreased by 7% to HK$1,209.2 million compared to HK$1,305.2 million in 2018[10]. - Gross profit for the same period decreased by 26% to HK$95.1 million, with a gross profit margin decline from 9.9% to 7.9%[10][15]. - Net profit fell by 39.9% to HK$28.1 million, resulting in a net profit margin of 2.3% compared to 3.6% in the previous year[10]. - Sales turnover to Europe decreased by 14% to HK$557.4 million, representing 46% of total sales[14]. - Sales turnover to Asia decreased by 15% to HK$277.8 million, accounting for 23% of total sales[14]. - Sales turnover to America increased by 12% to HK$328.3 million, representing 27% of total sales[14]. - The Group's sales revenue decreased by 7% to HK$1.2 billion for the year ended March 31, 2019, with European sales down 14% to HK$557.4 million, Asian sales down 15% to HK$277.8 million, and American sales up 12% to HK$328.3 million[16]. - Gross profit fell by 26% to HK$95.1 million, with the gross profit margin declining from 10% to 8% due to rising raw material costs and labor shortages[16]. - Net profit decreased by 40% to HK$28.1 million, resulting in a net profit margin drop from 3.6% to 2.3%[21]. - Total dividend per share decreased by 50% to HK$4 from HK$8 in the previous year[10]. Operational Efficiency - Trade receivables turnover days improved to 76 days from 81 days, while trade payables turnover days decreased to 46 days from 60 days[10][11]. - Inventory balance decreased from HK$98.9 million to HK$76.2 million, maintaining an inventory turnover of 29 days[38]. - Trade receivables decreased from HK$289 million to HK$250.5 million, with a trade receivables turnover improvement from 81 days to 76 days[38]. - Trade payables decreased from HK$193.2 million to HK$140.8 million, with trade payables turnover improving from 60 days to 46 days[38]. - Selling and distribution expenses decreased by 2.9% to HK$23.9 million, while administration expenses decreased by 5.6% to HK$102.6 million[18]. - Capital expenditures for the year were HK$24 million, down from HK$32 million in 2018, funded by internal resources and bank loans[39]. Financial Position - As of March 31, 2019, total assets were HK$1.4968 billion, financed by current liabilities of HK$324.5 million and shareholders' equity of HK$1.1339 billion[33]. - The Group held HK$558.6 million in cash and bank deposits, with a gearing ratio of 3.2%[34]. - Total assets as of March 31, 2019, were HK$1.4968 billion, a decrease from HK$1.5874 billion in 2018[36]. - Cash and bank deposits amounted to HK$558.6 million as of March 31, 2019, down from HK$597 million in 2018[36]. - Net cash outflow from operating activities for the year ended March 31, 2019, was HK$600,000, compared to a net outflow of HK$32.4 million in 2018[36]. - The group maintains a healthy financial position with a debt-to-equity ratio of 3.2% as of March 31, 2019, compared to 3.6% in 2018[36]. Market and Economic Factors - The statutory minimum wages in Huizhou, PRC, increased by 15% in July 2018, adversely affecting the Group's margins[15]. - Approximately 22% of the Group's sales turnover came from the US market, which could be adversely affected by the ongoing Sino-US trade war[25]. Management and Governance - The company has a strong management team, with key executives including Cheung Shu Wan (Managing Director), Cheung Lai See (Executive Director), and Cheung Shu Sang (Executive Director), all of whom have extensive experience in their respective fields[62][68][71]. - The Honorary Chairman, Cheung Lun, has over 60 years of management and technical experience in the industry, contributing to the company's strategic direction since its listing in 1992[73][75]. - The financial and administrative functions of the group are managed by Cheung Lai See, who has been with the company since 1995 and holds advanced degrees in Business Management[62][64]. - The company emphasizes its commitment to corporate governance and transparency, as evidenced by the detailed disclosures regarding shareholdings and interests of directors[61][64][70]. - The family trust structure indicates a strong alignment of interests between the management and shareholders, potentially enhancing long-term strategic decision-making[61][75]. - The board of directors includes a mix of executive and independent non-executive directors, ensuring a diverse range of expertise and oversight[76][77]. Customer and Supplier Relationships - The Group's major customers are companies selling household electrical appliances under well-known brand names, maintaining long-term relationships with them[98]. - The Group has maintained a long-term relationship with suppliers, selecting them based on criteria such as cost, quality, and sustainability[105]. - The largest customer accounted for 33% of sales, while the five largest customers combined represented 92% of total sales[125]. - The largest supplier contributed to 10% of purchases, and the five largest suppliers combined accounted for 24% of total purchases[125]. Corporate Social Responsibility - The Group is committed to environmental sustainability, with manufacturing sites certified under ISO 14001:2004[108]. - The Group has been recognized as a Caring Company since 2007, reflecting its commitment to employee welfare and community involvement[106]. - The Group made charitable and other donations amounting to approximately HK$106,000 during the year[191]. Future Outlook - The Group plans to invest in engineering and R&D capabilities to enhance productivity and efficiency while seeking growth opportunities through new customers and product categories[27]. - The annual report includes an indication of likely future development of the Group's business[96].