Revenue and Sales Performance - The total revenue for the six months ended September 30, 2024, was approximately HKD 394,121,000, an increase from HKD 385,899,000 in the same period of 2023[17] - Domestic sales in China accounted for HKD 338,777,000, representing 87.2% of total sales, slightly down from 87.6% in 2023[17] - For the six months ended September 30, 2024, the company's revenue increased by approximately 2.1% to about HKD 394,100,000, compared to approximately HKD 385,900,000 in the same period of 2023[31] - The company's revenue from goods sales for the period was approximately HKD 388.6 million, a 1.5% increase from HKD 382.8 million in the same period of 2023[56] - Revenue from corrugated products and offset printed corrugated products was HKD 388,585,000 for the six months ended September 30, 2024, compared to HKD 382,821,000 for the same period in 2023[164] Profitability and Loss - The gross profit for the period was approximately HKD 71,000,000, with a gross margin of 18.0%, compared to HKD 67,200,000 and 17.4% in the same period last year[20] - The net loss for the period decreased by approximately 21.1% to about HKD 7,500,000, down from approximately HKD 9,500,000 in the same period of 2023[34] - The net loss for the period was approximately HKD 7.5 million, an improvement from a net loss of HKD 9.5 million in the same period of 2023, resulting in a net loss margin of about 1.9%[62] - The total comprehensive loss for the period was HKD 5,641,000, a significant improvement from HKD 27,412,000 in the previous period, reflecting a decrease of approximately 79.5%[1] - The company incurred a loss before tax of HKD 5,980,000, an improvement from a loss of HKD 8,874,000 in the prior period, reflecting a reduction of approximately 32.3%[1] Operating Expenses and Cost Management - Other operating expenses for the period were approximately HKD 12,400,000, primarily due to one-time costs related to the sale and write-off of factory machinery and equipment[22] - Selling expenses increased from approximately HKD 27,700,000 in the same period of 2023 to about HKD 31,300,000, while administrative expenses significantly decreased by about 15.8% to approximately HKD 34,000,000[41] - The company continues to focus on high-value printed corrugated packaging products and has implemented cost-effective control measures to maintain operational stability amid a challenging business environment[27] Strategic Initiatives and Market Position - The company aims to expand its domestic market presence and revenue sources while enhancing production efficiency through strategic adjustments in its sales mix[13] - The company plans to integrate production lines from its Huizhou and Dongguan factories to maximize production efficiency and reduce fixed costs[13] - The company plans to establish a joint venture in Thailand in March 2024 to capitalize on supply chain shifts to Southeast Asia and seek strategic partnerships and potential acquisitions to expand market share[77] - The company remains cautiously optimistic about the long-term prospects of the paper packaging industry, driven by sustainable material trends and demand from both traditional and non-retail sectors[5] Financial Position and Liquidity - As of September 30, 2024, the company's bank and cash balance was approximately HKD 111.9 million, down from HKD 138.9 million as of March 31, 2024[47] - The company's current ratio as of September 30, 2024, was maintained at a solid level of 1.16, compared to 1.13 as of March 31, 2024[62] - The debt-to-asset ratio was approximately 10.4% as of September 30, 2024, slightly down from 10.5% as of March 31, 2024, demonstrating effective financial management[69] - The company has approximately HKD 458.2 million in unused bank financing as of September 30, 2024, compared to HKD 437.9 million as of March 31, 2024, ensuring future cash flow[47] Employee and Compensation - Total employee compensation expenses for the period were approximately HKD 52.6 million, down from HKD 60.2 million in the same period last year, with total employees decreasing from 785 to 667[75] - The company’s total employee compensation, including directors' remuneration, was HKD 52,558 million, down from HKD 60,163 million, reflecting a reduction in overall employee costs[198] Tax and Regulatory Matters - The company has received estimated tax assessments totaling approximately HKD 30.7 million from the Hong Kong Inland Revenue Department for the years 2009/10 to 2017/18, and has lodged objections against these assessments[73] - The company’s subsidiaries in China qualified for a reduced corporate income tax rate of 15% due to their status as high-tech enterprises[153] Foreign Exchange and Risk Management - The company is closely monitoring foreign exchange risks and will consider appropriate actions to hedge significant foreign exchange exposures as needed[70] - The net foreign exchange loss was HKD 93 million, compared to a net gain of HKD 2,127 million in the previous year, indicating a significant shift in foreign exchange performance[198]

Financial Performance - The company reported a revenue of HKD 394,121,000 for the six months ending September 30, 2024, compared to HKD 385,899,000 for the same period in 2023, representing a year-over-year increase of approximately 3.2%[2] - The gross profit for the period was HKD 71,032,000, up from HKD 67,221,000 in the previous year, indicating a growth of about 5.3%[2] - The net loss for the six months was HKD 7,502,000, an improvement from a net loss of HKD 9,519,000 in the same period last year, reflecting a reduction in losses of approximately 21.2%[4] - The total comprehensive income for the period was HKD (5,641,000), significantly better than HKD (27,412,000) in the previous year, showing a substantial decrease in comprehensive losses[4] - Basic and diluted loss per share improved to HKD (2.30) from HKD (2.87) year-over-year, indicating a positive trend in loss per share[4] - The company reported a loss attributable to owners of the company of HKD (7,626,000) for the six months ended September 30, 2024, compared to a loss of HKD (9,515,000) for the same period in 2023, indicating an improvement of 20%[48] - The net loss decreased by approximately 21.1% to about HKD 7,500,000, down from HKD 9,500,000 in the same period last year[65] Revenue Breakdown - Total revenue for the six months ended September 30, 2024, was HKD 394,121,000, with contributions from corrugated products (HKD 294,176,000), flexo-printed corrugated products (HKD 114,788,000), and property leasing (HKD 5,536,000) [21] - For the six months ended September 30, 2023, total revenue was HKD 385,899,000, with contributions from corrugated products (HKD 304,538,000), flexo-printed corrugated products (HKD 105,591,000), and property leasing (HKD 3,078,000) [25] - Revenue from property investment increased significantly by approximately 77.4% to about HKD 5,500,000, compared to HKD 3,100,000 in the previous year[77] Assets and Liabilities - The company's total assets as of September 30, 2024, were HKD 612,910,000, down from HKD 654,349,000 as of March 31, 2024[6] - Current liabilities increased to HKD 390,693,000 from HKD 390,668,000, indicating a slight rise in obligations[6] - The company’s net asset value decreased to HKD 509,987,000 from HKD 515,628,000, reflecting a decline in equity[8] - As of September 30, 2024, total assets for the corrugated products segment were HKD 482,942,000, flexo-printed corrugated products segment were HKD 196,602,000, and property leasing segment were HKD 356,215,000, totaling HKD 1,035,759,000 [29] - Total liabilities for the corrugated products segment were HKD 319,532,000, flexo-printed corrugated products segment were HKD 99,945,000, and property leasing segment were HKD 5,382,000, totaling HKD 424,859,000 [29] Operational Efficiency - The company is focused on improving operational efficiency and exploring new market opportunities to enhance future performance[2] - The company plans to integrate production lines from its Huizhou and Dongguan factories to maximize production efficiency due to the relocation of its factory in the Tangxia community[61] - The company continues to implement cost control measures to maintain operational stability amid a challenging business environment[60] - The company aims to continue improving internal controls and enhance profitability through regional operational integration and production line consolidation[80] Cash Flow and Financing - The company had bank and cash balances of approximately HKD 111,900,000 as of September 30, 2024, down from HKD 138,900,000 as of March 31, 2024[99] - The company has unutilized bank financing of approximately HKD 458,200,000 to ensure future cash flow[99] - The company has pledged assets with a net book value of approximately HKD 272,700,000 as collateral for bank financing as of September 30, 2024[103] Employee and Compensation - The group employed a total of 667 employees as of September 30, 2024, down from 785 employees as of March 31, 2024[106] - Total employee compensation expenses, including directors' remuneration, amounted to approximately HKD 52.6 million for the period, compared to HKD 60.2 million in the same period last year[106] Market Outlook - The group is optimistic about the long-term prospects of the paper packaging industry, driven by the recovery of demand in e-commerce and supportive government policies in China[109] - Online retail sales in China grew by 8.1% year-on-year, indicating a shift in consumer behavior that may benefit the company's future prospects in the paper packaging industry[58] - The group plans to establish a joint venture in Thailand in March 2024 to capitalize on supply chain shifts to Southeast Asia and seek strategic partnerships and potential acquisitions[110] Other Income and Expenses - Total other income for the six months ended September 30, 2024, was HKD 8,356,000, compared to HKD 3,146,000 for the same period in 2023, representing a significant increase of 165%[32] - The total financial costs decreased to HKD 10,939,000 for the six months ended September 30, 2024, down from HKD 13,358,000 in the same period of 2023, reflecting a reduction of 18%[37] - The company incurred a loss on the sale of properties, plants, and equipment amounting to HKD 4,055,000 during the six months ended September 30, 2024[46] - The company received government grants amounting to HKD 843,000, significantly higher than HKD 404,000 in the previous year, marking an increase of 109%[32] Compliance and Reporting - The company anticipates that the application of new Hong Kong Financial Reporting Standards will not have a significant impact on the consolidated financial statements in the foreseeable future [20] - The company has not early adopted the newly issued but not yet effective Hong Kong Financial Reporting Standards [20] - The company reported a pre-tax loss of HKD 5,980,000 for the period [21]

COME SURE GROUP (HOLDINGS) LIMITED 承董事會命 錦勝集團（控股）有限公司 主席 莊金洲 香港，二零二四年十一月十八日 於本公佈日期，董事局包括三名執行董事莊金洲先生、莊華彬先生及莊華清先生； 以及三名獨立非執行董事徐珮文女士、羅子璘先生及張宏業先生。 錦 勝 集 團（ 控 股 ）有 限 公 司* （於開曼群島註冊成立之有限公司） （股份代號：00794） 董事局會議召開通告 錦勝集團（控股）有限公司（「本公司」）董事局（「董事局」）宣佈，本公司將於二零 二四年十一月二十九日（星期五）於香港柴灣永泰道50號港利中心8字樓8-10室舉行 董事局會議，董事局將於會上（其中包括）考慮並批准本公司及其附屬公司截至二 零二四年九月三十日止六個月的中期業績及其刊發，以及考慮建議派發中期股息（如 有）。 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佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何 部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 * 僅供識別 ...

Financial Performance - The group's revenue slightly decreased this year, but gross profit increased to approximately HKD 131.7 million, with a gross margin of 17.2%, compared to HKD 118.3 million and approximately 15.0% in 2023[7] - The group's revenue for the fiscal year ended March 31, 2024, was approximately HKD 764.5 million, a slight decrease of about 2.9% compared to HKD 787.1 million in the previous year[49] - The group's net loss for the fiscal year was approximately HKD 15.8 million, significantly improved from a net loss of approximately HKD 67.2 million in the previous year[50] - The group's gross profit for the fiscal year was HKD 131.7 million, compared to HKD 118.3 million in the previous year[49] - The revenue from the Guangdong business segment was approximately HKD 733.7 million, down from HKD 773.3 million in the previous year[55] - The total revenue of China's paper and paper products industry decreased by 2.4% year-on-year to approximately RMB 139.26 billion in 2023[67] - The total comprehensive income for the year is reported as HKD (30,250) million, compared to HKD (97,486) million in the previous year[145] Cost Control and Efficiency - The group implemented strict cost control measures, enhancing procurement and production integration, which improved operational efficiency and reduced fixed costs[28] - The gross profit margin improvement was attributed to effective cost control and operational integration at the new Dongguan facility[7] - Sales expenses decreased by approximately 13.3% to about HKD 59,100,000, down from HKD 68,100,000, due to strict cost control measures[83] - Administrative expenses also reduced by about 13.1% to approximately HKD 77,600,000, compared to HKD 89,300,000 in the previous year[83] Market Strategy and Expansion - The group aims to expand its domestic market customer base and increase sales of packaging products to the medical equipment sector[28] - The group plans to continue expanding its market share through strategic partnerships and potential acquisitions[43] - The company continued to expand its domestic market presence, particularly in the medical equipment sector, leading to an increase in sales orders[84] - The strategic shift towards increasing the sales proportion of cardboard and semi-finished products has enhanced sales volume and operational efficiency despite lower unit prices[74] Investment and Property Management - The group's investment property fair value gain was approximately HKD 24.9 million, compared to a fair value loss of approximately HKD 9 million in the previous year[50] - The company anticipates increased rental income from the property previously used as a production base, which was leased out in June 2024[63] - As of March 31, 2024, the carrying value of investment properties was approximately HKD 348,108,000, with a fair value increase of about HKD 24,872,000 recognized during the year[104] - The group employs independent professional valuers to assess the fair value of investment properties, ensuring appropriate valuation techniques and input data are established[104] Risk Management and Compliance - The group plans to strengthen internal cost and risk management measures in response to global risks such as inflation and geopolitical tensions[31] - The group will continue to review and enhance its internal controls and risk management systems to maintain competitive advantages in a challenging market[7] - The company is actively reviewing internal controls and risk management systems to adapt to potential market changes and ensure sustainable business growth[72] - The group’s financial risk management includes market risk, credit risk, and liquidity risk, with management policies in place to mitigate these risks[185] Corporate Social Responsibility - The company is committed to corporate social responsibility and adhering to high environmental standards in production technology[31] - The company is committed to corporate social responsibility and compliance with various environmental management standards[65] Financial Reporting and Audit - The financial statements were approved and authorized for issue by the board on June 28, 2024[137] - The independent auditor's report concluded on the appropriateness of the going concern basis used by the board, highlighting potential significant uncertainties that could impact the group's ability to continue[109] - The group recognizes gains or losses from changes in the fair value of investment properties in the profit or loss for the period[116] - The group applies new Hong Kong Financial Reporting Standards, which are not expected to have a significant impact on the consolidated financial statements in the foreseeable future[166]

[Group Performance](index=1&type=section&id=Group%20Performance) [Consolidated Statement of Profit or Loss](index=1&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the year ended March 31, 2024, the Group's net loss significantly narrowed, primarily due to improved gross profit and increased other gains, despite a slight decrease in revenue Key Data from Consolidated Statement of Profit or Loss | Metric | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 764,520 | 787,078 | | Cost of sales | (632,781) | (668,789) | | Gross profit | 131,739 | 118,289 | | Other income | 2,896 | 10,449 | | Other gains and losses | 24,971 | (8,546) | | Selling expenses | (59,066) | (68,097) | | Administrative expenses | (77,577) | (89,310) | | Other operating expenses | (9,903) | (355) | | Finance costs | (27,708) | (28,027) | | Loss before tax | (14,648) | (65,597) | | Income tax expense | (1,170) | (1,639) | | Loss for the year | (15,818) | (67,236) | | Basic and diluted loss per share | (4.78) HK cents | (19.84) HK cents | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Total comprehensive expenses for the year significantly decreased, mainly due to reduced exchange differences from translating overseas operations and gains from revaluation of prepaid land lease payments and property, plant and equipment Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Loss for the year | (15,818) | (67,236) | | Exchange differences arising from translation of overseas operations | (13,031) | (29,710) | | Revaluation of prepaid land lease payments and property, plant and equipment upon transfer to investment properties | 8,616 | – | | Fair value loss on financial assets at fair value through other comprehensive income | (601) | (540) | | Other comprehensive expenses for the year, net of income tax | (5,016) | (30,250) | | Total comprehensive expenses for the year | (20,834) | (97,486) | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) The Group's total assets slightly increased, but current liabilities also rose significantly due to a substantial increase in trade and bills payables, leading to a slight decrease in net assets Key Data from Consolidated Statement of Financial Position | Metric | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | **Non-current assets** | | | | Prepaid lease payments | 8,841 | 28,035 | | Right-of-use assets | 171,897 | 196,187 | | Property, plant and equipment | 108,952 | 182,339 | | Investment properties | 348,108 | 248,680 | | Goodwill | 11,631 | 11,631 | | **Current assets** | | | | Inventories | 50,813 | 57,338 | | Trade and bills receivables | 218,892 | 222,836 | | Pledged bank deposits | 37,241 | 10,054 | | Bank and cash balances | 101,657 | 75,896 | | **Current liabilities** | | | | Trade and bills payables | 218,001 | 98,673 | | Short-term bank borrowings | 69,885 | 100,009 | | **Non-current liabilities** | | | | Long-term bank borrowings | 2,800 | 7,000 | | Lease liabilities | 188,071 | 206,584 | | Net assets | 515,628 | 535,927 | | Total equity | 515,628 | 535,927 | [Notes to the Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) [1. Application of New and Revised Hong Kong Financial Reporting Standards](index=5&type=section&id=1.%20Application%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) This year, the Group first applied several new and revised Hong Kong Financial Reporting Standards, which had no significant impact on the Group's financial position, performance, or disclosures, nor did the Group early adopt other issued but not yet effective standards - Several amendments to Hong Kong Financial Reporting Standards were first applied this year, including amendments to **HKFRS 17** and **HKAS 8, 1, and 12**[8](index=8&type=chunk) - The application of these amendments had no significant impact on the Group's financial position and performance for the current and prior years[8](index=8&type=chunk) - The Group did not early adopt other new and revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective, and no significant impact is expected in the future[9](index=9&type=chunk) [2. Revenue and Segment Information](index=6&type=section&id=2.%20Revenue%20and%20Segment%20Information) The Group's revenue primarily derives from sales of corrugated products, offset-printed corrugated products, and property leasing. Despite a slight decrease in total revenue, property leasing revenue grew, with varied segment performance and notable profitability in the property leasing segment. The Group's major customers are concentrated in China, and a single customer A accounts for a high proportion of total revenue - The Group has three reportable operating segments: corrugated products, offset-printed corrugated products, and property leasing[13](index=13&type=chunk) Segment Revenue and Results (2024) | Segment | External Sales (HK$ thousand) | Segment Results (HK$ thousand) | | :--- | :--- | :--- | | Corrugated Products | 572,329 | (1,337) | | Offset-Printed Corrugated Products | 185,870 | 2,460 | | Property Leasing | – | 30,168 | | Total | 764,520 (Customer Contracts: 758,199 + Rental Income: 6,321) | 31,291 (Total Segment Results) | Segment Assets and Liabilities (March 31, 2024) | Segment | Segment Assets (HK$ thousand) | Segment Liabilities (HK$ thousand) | | :--- | :--- | :--- | | Corrugated Products | 531,945 | 343,957 | | Offset-Printed Corrugated Products | 185,579 | 96,064 | | Property Leasing | 348,947 | 4,587 | | Total Reportable Segments | 1,066,471 | 444,608 | Geographical Information (2024) | Region | Revenue from External Customers (HK$ thousand) | Non-current Assets (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong | 100,820 | 244,045 | | Macau | 331 | – | | Mainland China (excluding Hong Kong and Macau) | 663,369 | 398,673 | | Consolidated Total | 764,520 | 642,718 | - Customer A contributed **HK$89,085 thousand** in revenue this year, primarily from corrugated products, accounting for **over 10% of total revenue**[29](index=29&type=chunk) [3. Other Income](index=12&type=section&id=3.%20Other%20Income) Other income significantly decreased this year, mainly due to the absence of exchange gains recorded last year, despite slight increases in dividend and miscellaneous income Details of Other Income | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Dividend income from equity securities at fair value through profit or loss | 117 | 110 | | Government grants | 1,264 | 2,086 | | Bank interest income | 191 | 493 | | Other rental income | 417 | 368 | | Exchange gains | – | 6,894 | | Miscellaneous income | 907 | 498 | | Total | 2,896 | 10,449 | [4. Other Gains and Losses](index=12&type=section&id=4.%20Other%20Gains%20and%20Losses) Significant other gains were recorded this year, primarily benefiting from the fair value change of investment properties shifting from a loss to a gain Details of Other Gains and Losses | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Fair value change on equity securities at fair value through profit or loss | (218) | (107) | | Fair value change on investment properties | 24,872 | (9,010) | | Income from wealth management products | 317 | 571 | | Total | 24,971 | (8,546) | [5. Other Operating Expenses](index=12&type=section&id=5.%20Other%20Operating%20Expenses) Other operating expenses significantly increased this year, mainly due to losses on disposal of property, plant and equipment and one-off staff severance costs Details of Other Operating Expenses | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Loss on disposal of property, plant and equipment | 5,037 | 43 | | Write-off of property, plant and equipment | 344 | 238 | | Staff severance costs | 4,322 | – | | Others | 200 | 74 | | Total | 9,903 | 355 | [6. Finance Costs](index=13&type=section&id=6.%20Finance%20Costs) Total finance costs remained stable this year, with a decrease in interest on lease liabilities offset by an increase in interest on bank borrowings Details of Finance Costs | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Interest on bank borrowings | 10,465 | 9,475 | | Interest on lease liabilities | 17,243 | 18,552 | | Total | 27,708 | 28,027 | [7. Income Tax Expense](index=13&type=section&id=7.%20Income%20Tax%20Expense) Income tax expense decreased this year, with Hong Kong profits tax calculated at 16.5% (8.25% for the first HK$2 million), and PRC subsidiaries enjoying a 15% preferential tax rate for high-tech enterprises and tax reductions for small-profit enterprises Details of Income Tax Expense | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong profits tax | 1,256 | 1,197 | | PRC enterprise income tax | (86) | 442 | | Total | 1,170 | 1,639 | - Hong Kong profits tax rate is **16.5%**, with the first **HK$2 million** of assessable profits taxed at **8.25%**[33](index=33&type=chunk) - PRC subsidiaries enjoy a **15%** preferential enterprise income tax rate for high-tech enterprises, and tax reductions for small-profit enterprises (for assessable income not exceeding **RMB3 million**, 25% is included in assessable income and taxed at **20%**)[34](index=34&type=chunk)[36](index=36&type=chunk) - Certain PRC subsidiaries of the Group are eligible to apply for a **200%** income tax deduction for research and development costs[37](index=37&type=chunk) [8. Loss for the Year](index=15&type=section&id=8.%20Loss%20for%20the%20Year) Loss for the year significantly decreased, primarily due to lower total depreciation and amortization, increased rental income from investment properties, and a shift from exchange losses to gains Items Affecting Loss for the Year | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Total depreciation and amortization | 37,779 | 39,988 | | Net rental income from investment properties | (6,029) | (5,653) | | Cost of inventories recognized as expense | 632,489 | 668,606 | | Auditors' remuneration | 1,200 | 1,200 | | Net exchange losses (gains) | 495 | (6,894) | [9. Dividends](index=15&type=section&id=9.%20Dividends) The Board does not recommend the payment of a final dividend for the year ended March 31, 2024 - The Board does not recommend the payment of a final dividend for the year ended March 31, 2024[41](index=41&type=chunk) [10. Loss Per Share](index=15&type=section&id=10.%20Loss%20Per%20Share) Basic and diluted loss per share attributable to owners of the Company significantly improved due to a substantial reduction in loss for the year Loss Per Share Calculation Data | Metric | 2024 (HK$ thousand/Number of shares) | 2023 (HK$ thousand/Number of shares) | | :--- | :--- | :--- | | Loss for the year attributable to owners of the Company | (15,839) | (67,236) | | Weighted average number of ordinary shares | 331,084,000 | 338,853,392 | | Basic and diluted loss per share | (4.78) HK cents | (19.84) HK cents | - There were no potential dilutive ordinary shares for the years ended March 31, 2024 and 2023, for the purpose of calculating loss per share[44](index=44&type=chunk) [11. Trade and Bills Receivables](index=16&type=section&id=11.%20Trade%20and%20Bills%20Receivables) Total trade and bills receivables slightly decreased, with an increase in overdue receivables, but the provision for expected credit losses remained stable, deemed recoverable by management Ageing Analysis of Trade and Bills Receivables | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Not yet due | 138,661 | 162,713 | | Overdue 1 to 30 days | 36,494 | 7,235 | | Overdue 31 to 90 days | 14,454 | 7,363 | | Overdue 91 to 365 days | 4,136 | 294 | | Overdue over one year | 3,494 | 3,600 | | Total trade receivables | 197,239 | 181,205 | | Less: Provision for expected credit losses | (3,089) | (3,191) | | Bills receivables | 24,742 | 44,822 | | Total | 218,892 | 222,836 | - Overdue but not impaired trade receivables totaled **HK$55,489 thousand** (2023: HK$15,301 thousand), which management considers recoverable[49](index=49&type=chunk) - The provision for expected credit losses includes individually impaired trade receivables involving liquidation or severe financial difficulties, totaling approximately **HK$3,089 thousand** (2023: HK$3,191 thousand)[49](index=49&type=chunk)[50](index=50&type=chunk) [12. Trade and Bills Payables](index=18&type=section&id=12.%20Trade%20and%20Bills%20Payables) Total trade and bills payables significantly increased, mainly due to a substantial rise in bills payables, reflecting extended payment terms with suppliers Ageing Analysis of Trade and Bills Payables | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables 0 to 30 days | 65,674 | 58,042 | | Trade payables 31 to 90 days | 16,161 | 2,003 | | Trade payables over 90 days | 1,175 | 353 | | Bills payables | 134,991 | 38,275 | | Total | 218,001 | 98,673 | - All bills payables are due within **180 days**[51](index=51&type=chunk) - Supplier credit terms range from **15 to 90 days**, and the Group has established financial risk management policies to ensure timely settlement[51](index=51&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) [Industry Review](index=19&type=section&id=Industry%20Review) China's paper packaging industry faces multiple challenges including slow economic recovery, weak demand, intense competition, and supply chain shifts, yet the growth of China's online retail market presents long-term potential for high-quality paper packaging products - China's economic and overall consumer spending recovery is slow, with the real estate crisis continuously impacting the market[53](index=53&type=chunk) - China's paper and paper products industry's total revenue decreased by **2.4%** year-on-year to approximately **RMB1,392.6 billion**, while the cumulative export value of paper and paperboard container manufacturing decreased by **11.3%** year-on-year to approximately **RMB8.47 billion**[53](index=53&type=chunk) - Weak global trade, US destocking, and geopolitical uncertainties led customers to shift supply chains to Southeast Asia, impacting China's paper packaging industry exports[53](index=53&type=chunk) - China's online retail sales increased by **11.0%** year-on-year to approximately **RMB15,426.4 billion**, supporting the expansion of the express delivery industry and driving demand for high-quality paper packaging products[54](index=54&type=chunk) [Business Review](index=20&type=section&id=Business%20Review) Facing a challenging market environment, the Group successfully maintained sales volume and improved gross profit margin through diversifying its customer base, adjusting product mix (increasing the proportion of paperboard and semi-finished products), strict cost control, and production line integration, while property leasing business profitability also improved, leading to a significant narrowing of net loss - The Group focuses on high-value-added printed corrugated paper packaging products, but demand is in a recovery phase due to challenging global business environment and a weak domestic home appliance market[56](index=56&type=chunk) - The Group successfully maintained sales volume by diversifying its customer base, adjusting its product portfolio to increase the proportion of paperboard and semi-finished product sales, and expanding into the medical equipment industry[56](index=56&type=chunk) - Revenue for the year slightly decreased by **2.9%** to approximately **HK$764.5 million**, primarily due to a decrease in average selling price per product[56](index=56&type=chunk) - Gross profit increased to approximately **HK$131.7 million**, and gross profit margin improved to **17.2%** (2023: 15.0%), mainly benefiting from sales mix adjustment, strict cost control, and production line integration at the new Dongguan plant[57](index=57&type=chunk) - Property leasing business profitability improved, with the former Huizhou production base converted to investment properties, recording a fair value gain on investment properties of approximately **HK$24.9 million** (2023: loss of approximately HK$9.0 million)[59](index=59&type=chunk) - Net loss for the year was approximately **HK$15.8 million**, a significant narrowing compared to last year (HK$67.2 million)[59](index=59&type=chunk) [Operating Results](index=21&type=section&id=Operating%20Results) The Group successfully improved gross profit margin and significantly reduced net loss despite a slight revenue decrease, by adjusting business strategies, optimizing sales mix, strictly controlling costs, and integrating production lines. Fair value gains on investment properties contributed significantly to profit improvement, while one-off operating expenses increased Operating Results Overview | Metric | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Paper packaging domestic sales in Mainland China | 663,369 | 656,306 | | Paper packaging domestic export shipments | 56,108 | 80,451 | | Paper packaging direct exports | 38,722 | 44,485 | | Property investment rental income | 6,321 | 5,836 | | Total revenue | 764,520 | 787,078 | | Gross profit margin | 17.2% | 15.0% | | Net loss margin | (2.1)% | (8.5)% | [Revenue](index=22&type=section&id=Revenue) The Group's revenue slightly decreased, mainly due to business strategy adjustments focusing more resources on lower-priced paperboard and semi-finished product sales, despite maintaining overall sales volume and expanding into domestic and medical equipment industry customers - Revenue for the year slightly decreased to approximately **HK$764.5 million** (2023: approximately HK$787.1 million), mainly due to a decrease in average selling price per product resulting from a change in sales mix[61](index=61&type=chunk) - The Group adjusted its business strategy to increase the sales proportion of paperboard and semi-finished products, and expanded into domestic markets and medical equipment industry customers, maintaining overall sales volume[61](index=61&type=chunk) - Revenue attributable to Guangdong operations was approximately **HK$733.7 million** (2023: approximately HK$773.3 million), affected by market demand fluctuations and production line maintenance integration[63](index=63&type=chunk) - Property leasing business revenue remained stable at approximately **HK$6.3 million** (2023: approximately HK$5.8 million)[64](index=64&type=chunk) [Gross Profit](index=23&type=section&id=Gross%20Profit) Despite a decrease in revenue, the Group's gross profit and gross profit margin both improved, mainly benefiting from continuous cost control, regional business and production line integration, and increased gross profit from property leasing operations - Overall gross profit for the year increased to approximately **HK$131.7 million** (2023: approximately HK$118.3 million), and gross profit margin improved to approximately **17.2%** (2023: approximately 15.0%)[65](index=65&type=chunk) - Gross profit improvement was mainly attributable to cost control, integration of regional businesses and production lines to reduce fixed costs, and flexible procurement channels ensuring raw material cost-effectiveness[65](index=65&type=chunk) - Gross profit margin for Guangdong operations rose to approximately **17.1%** (2023: approximately 14.6%), with gross profit increasing by approximately **11.6%** to **HK$125.7 million**[67](index=67&type=chunk) - Gross profit from property leasing increased by approximately **5.3%** to approximately **HK$6.0 million** (2023: approximately HK$5.7 million)[68](index=68&type=chunk) [Other Income](index=24&type=section&id=Other%20Income) Other income decreased this year, primarily due to reduced foreign exchange gains - Other income for the year decreased to approximately **HK$2.9 million** (2023: approximately HK$10.4 million), mainly from government subsidies and miscellaneous income, but with reduced foreign exchange gains[69](index=69&type=chunk) [Other Gains and Losses](index=24&type=section&id=Other%20Gains%20and%20Losses) Other gains were recorded this year, primarily from fair value gains on investment properties, reversing last year's loss - Other gains of approximately **HK$25.0 million** were recorded this year (2023: loss of approximately HK$8.6 million), primarily fair value gains on investment properties of approximately **HK$24.9 million**[70](index=70&type=chunk) - Fair value gains on investment properties include approximately **HK$32.6 million** from the transfer of the former Huizhou production base to investment properties, and approximately **HK$7.7 million** in losses from other existing investment properties[70](index=70&type=chunk) [Selling and Administrative Expenses](index=25&type=section&id=Selling%20and%20Administrative%20Expenses) Both selling and administrative expenses decreased this year, reflecting the Group's strict cost control and improved operational efficiency amidst reduced revenue, adjusted sales mix, and capacity integration - Selling expenses decreased by approximately **13.3%** to approximately **HK$59.1 million** (2023: approximately HK$68.1 million), mainly due to reduced revenue and an increased proportion of paperboard/semi-finished product sales[72](index=72&type=chunk) - Administrative expenses decreased by approximately **13.1%** to approximately **HK$77.6 million** (2023: approximately HK$89.3 million), benefiting from strict internal controls and capacity integration enhancing operational efficiency[72](index=72&type=chunk) [Other Operating Expenses](index=25&type=section&id=Other%20Operating%20Expenses) Other operating expenses significantly increased this year, primarily due to losses on disposal of factory machinery and equipment and staff severance costs during production line integration - Other operating expenses increased to approximately **HK$9.9 million** (2023: approximately HK$0.4 million), mainly due to losses on disposal of factory machinery and equipment and staff severance costs[73](index=73&type=chunk) [Finance Costs](index=25&type=section&id=Finance%20Costs) Total finance costs remained stable this year, with a decrease in interest on lease liabilities offset by an increase in interest on bank borrowings, the latter influenced by rising global interest rates - Interest expense on lease liabilities decreased to approximately **HK$17.2 million** (2023: approximately HK$18.6 million)[74](index=74&type=chunk) - Interest on bank borrowings increased to approximately **HK$10.5 million** (2023: approximately HK$9.5 million), influenced by sustained high global interest rates[74](index=74&type=chunk) [Net Loss and Dividends](index=25&type=section&id=Net%20Loss%20and%20Dividends) The Group's net loss significantly narrowed, net loss margin substantially improved, and loss per share decreased accordingly, with the Board not recommending a final dividend - Net loss for the year was approximately **HK$15.8 million** (2023: approximately HK$67.2 million), with a net loss margin of approximately **2.1%** (2023: approximately 8.5%)[75](index=75&type=chunk) - Basic and diluted loss per share was **4.78 HK cents** (2023: 19.84 HK cents)[75](index=75&type=chunk) - The Board does not recommend the payment of a final dividend for the current year[75](index=75&type=chunk) [Capital Structure](index=26&type=section&id=Capital%20Structure) The Group's current ratio slightly decreased but remained healthy, primarily impacted by increased trade and bills payables, partially offset by higher bank and cash balances Key Capital Structure Indicators | Metric | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Current Ratio | 1.13 | 1.24 | - As at March 31, 2024, the Company's issued share capital was **HK$3,310,840**, divided into **331,084,000** shares of **HK$0.01** par value each[77](index=77&type=chunk) [Working Capital](index=26&type=section&id=Working%20Capital) The Group's working capital management significantly improved, with a substantially shortened cash conversion cycle, primarily due to reduced trade receivables turnover days, extended trade payables turnover days, and shortened inventory turnover days, reflecting enhanced operational efficiency from sales mix adjustments and production line integration Working Capital Turnover Days | Metric | 2024 (Turnover Days) | 2023 (Turnover Days) | | :--- | :--- | :--- | | Trade and bills receivables | 106 | 121 | | Trade and bills payables | 92 | 61 | | Inventories | 31 | 43 | | Cash conversion cycle | 45 | 103 | - Trade and bills receivables turnover days improved from **121 days** to **106 days**, mainly due to a shift in sales mix towards paperboard and semi-finished products with shorter receivables turnover cycles[78](index=78&type=chunk) - Trade and bills payables turnover days significantly increased from **61 days** to **92 days**, reflecting close cooperation with suppliers and extended payment terms[79](index=79&type=chunk) - Inventory turnover days improved to **31 days** (2023: 43 days), mainly due to shorter delivery periods for paperboard and semi-finished products[81](index=81&type=chunk) [Liquidity and Financial Resources](index=27&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's liquidity improved, with increased bank and cash balances, a lower gearing ratio, and sufficient unutilized bank facilities to support future business growth and investments Key Liquidity and Financial Resources Indicators | Metric | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Current Ratio | 1.13 | 1.24 | | Gearing Ratio | 10.5% | 15.3% | | Bank and cash balances | 138,900 HK$ thousand | 86,000 HK$ thousand | | Unutilized bank facilities | 437,900 HK$ thousand | – | - All of the Group's bank borrowings are secured, primarily denominated in **HKD** and **RMB**, and bear interest at floating rates[84](index=84&type=chunk) - Total outstanding bank borrowings were approximately **HK$114.9 million** (2023: approximately HK$163.8 million), of which approximately **HK$96.6 million** is repayable within one year[84](index=84&type=chunk) [Foreign Exchange Risk](index=28&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risk and will closely monitor it, taking hedging measures when necessary - The Group is exposed to foreign exchange risk as some business transactions, assets, and liabilities are denominated in currencies other than the functional currency[87](index=87&type=chunk) - The Group will closely monitor foreign exchange risk and consider appropriate actions to hedge significant foreign exchange exposures when necessary[87](index=87&type=chunk) [Pledged Assets](index=28&type=section&id=Pledged%20Assets) The Group pledged approximately HK$278.0 million in assets as collateral for bank financing - The Group pledged certain assets with an aggregate carrying value of approximately **HK$278.0 million** (2023: approximately HK$258.4 million), including bank deposits, property, plant and equipment, and investment properties, as collateral for bank financing[88](index=88&type=chunk) [Capital Commitments](index=28&type=section&id=Capital%20Commitments) The Group's contracted but unprovided capital expenditure for property, plant and equipment significantly decreased, with no authorized but uncontracted capital expenditure - The Group's contracted but unprovided capital expenditure for property, plant and equipment was approximately **HK$200 thousand** (2023: approximately HK$1.7 million)[89](index=89&type=chunk) - The Group had no authorized but uncontracted capital expenditure[89](index=89&type=chunk) [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) The Group faces contingent liabilities from Hong Kong Inland Revenue Department tax assessments totaling approximately HK$30.7 million, currently under negotiation with no provision made - The Hong Kong Inland Revenue Department issued estimated and additional tax assessments to six of the Group's subsidiaries for the tax years 2009/10 to 2017/18, totaling approximately **HK$30.698 million**[90](index=90&type=chunk) - The Group has filed objections and purchased tax reserve certificates of **HK$9.766 million**, and the Inland Revenue Department has held over profits tax of **HK$20.204 million**[90](index=90&type=chunk) - No tax provision was made at the end of the current year due to the uncertainty of negotiation outcomes[90](index=90&type=chunk) [Employees and Remuneration](index=29&type=section&id=Employees%20and%20Remuneration) Both the Group's employee headcount and total remuneration expenses decreased, with remuneration policies regularly reviewed based on individual performance and market conditions Employee and Remuneration Data | Metric | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Total number of employees | 785 | 933 | | Total employee remuneration expenses | 116,900 HK$ thousand | 137,400 HK$ thousand | - Remuneration policies are formulated based on individual employee performance and current market conditions, and are reviewed regularly[92](index=92&type=chunk) [Prospects](index=29&type=section&id=Prospects) Facing global uncertainties, the Group will continue to implement diversified procurement strategies, integrate resources, innovate production technologies, and prudently manage investments to seize growth opportunities in China's e-commerce and eco-friendly packaging industries for sustainable profitability - As the business environment becomes increasingly uncertain, the Group will continue to implement diversified procurement strategies to mitigate risks and ensure stable raw material supply[93](index=93&type=chunk) - The rapid growth of China's e-commerce industry and increasing demand for high-quality eco-friendly packaging present potential growth opportunities for China's paper packaging industry[93](index=93&type=chunk) - The Group will continue to integrate resources and production, allocate more resources to producing paperboard and semi-finished packaging products, and utilize advanced production technologies to enhance product quality[93](index=93&type=chunk) - The former Huizhou production base has been converted into investment properties and successfully leased out, expected to generate more rental income. Currently, there are no significant investment plans[95](index=95&type=chunk) [Future Plans for Material Investments and Capital Assets](index=30&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of the date of this announcement, the Group has no proposed plans for any material investments or capital assets - As at March 31, 2024 and the date of this announcement, the Group had no proposed plans for any material investments or capital assets[96](index=96&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=30&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the year - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the year[97](index=97&type=chunk) [Other Information](index=30&type=section&id=Other%20Information) [Corporate Governance](index=30&type=section&id=Corporate%20Governance) The Board is committed to maintaining appropriate corporate governance practices and has complied with the Corporate Governance Code in Appendix C1 of the SEHK Listing Rules - The Board is committed to maintaining appropriate corporate governance practices to safeguard shareholders' interests and ensure compliance with statutory requirements and professional standards[98](index=98&type=chunk) - The Company has complied with the code provisions set out in the Corporate Governance Code in Appendix C1 of the SEHK Listing Rules during the year[98](index=98&type=chunk) [Standard Code for Securities Transactions by Directors](index=30&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Standard Code set out in Appendix C3 of the Listing Rules, and all Directors confirmed compliance with it throughout the year - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[99](index=99&type=chunk) - All Board members confirmed compliance with the required standards set out in the Standard Code throughout the year[99](index=99&type=chunk) [Audit Committee](index=31&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing financial statements, risk management, and internal control systems, and has reviewed this results announcement and related financial matters - The Audit Committee's primary responsibilities include considering the relationship with external auditors, reviewing the Group's financial statements, and overseeing the Group's financial reporting system, risk management, and internal control systems[101](index=101&type=chunk) - The Audit Committee comprises three independent non-executive directors: Mr. Law Tsz Lun (Chairman), Mr. Chow On Tai Yuen, and Ms. Tsui Pui Man[101](index=101&type=chunk) - The Audit Committee has reviewed this results announcement, the audited consolidated financial statements, accounting principles and practices, and discussed auditing, internal control, risk management, and financial reporting matters[101](index=101&type=chunk) [Dividends](index=31&type=section&id=Dividends) The Board does not recommend the payment of any final dividend for the current year - The Board does not recommend the payment of any final dividend for the current year[102](index=102&type=chunk) [Closure of Register of Members](index=31&type=section&id=Closure%20of%20Register%20of%20Members) To determine eligibility to attend and vote at the Annual General Meeting, the Company will suspend registration of members from September 4 to September 9, 2024 - The Company will suspend registration of members from **September 4, 2024 to September 9, 2024** (both dates inclusive), during which no share transfers will be effected[103](index=103&type=chunk) - All share transfer documents, accompanied by the relevant share certificates, must be lodged with the Company's Hong Kong Share Registrar by **4:30 p.m. on September 3, 2024** at the latest[103](index=103&type=chunk) [Events After the Reporting Period](index=31&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events occurred after the end of the current year and up to the date of this announcement - No significant events occurred after the end of the current year and up to the date of this announcement[104](index=104&type=chunk) [Public Float](index=31&type=section&id=Public%20Float) As at March 31, 2024, public shareholders held over 25% of the Company's issued shares - As at **March 31, 2024**, public shareholders held **over 25%** of the Company's issued shares[105](index=105&type=chunk) [Scope of Work of Tianjian International Certified Public Accountants Limited](index=32&type=section&id=Scope%20of%20Work%20of%20Tianjian%20International%20Certified%20Public%20Accountants%20Limited) The Group's auditor confirmed that the financial data in this results announcement is consistent with the audited consolidated financial statements, but their work does not constitute an assurance engagement on this announcement - The Group's auditor, Tianjian International Certified Public Accountants Limited, agreed that the data in the Group's consolidated statement of financial position, consolidated statement of profit or loss, consolidated statement of profit or loss and other comprehensive income, and their related notes for the current year, as presented in this results announcement, are consistent with the amounts in the Group's audited consolidated financial statements for the current year[107](index=107&type=chunk) - The work performed by the auditor in this regard does not constitute an assurance engagement conducted in accordance with Hong Kong Standards on Auditing, Hong Kong Standards on Review Engagements, or Hong Kong Standards on Assurance Engagements issued by the Hong Kong Institute of Certified Public Accountants, and therefore, no assurance is provided on this announcement[107](index=107&type=chunk) [Publication of Annual Report](index=32&type=section&id=Publication%20of%20Annual%20Report) The Company's annual report will be published on the Company's website and the SEHK website at the appropriate time and sent to shareholders upon request - The Company's annual report will be published on the Company's website and the SEHK website at the appropriate time[108](index=108&type=chunk) - The annual report will be sent to the Company's shareholders upon request[108](index=108&type=chunk) [By Order of the Board](index=32&type=section&id=By%20Order%20of%20the%20Board) This announcement is issued by Mr. Zhuang Jinzhou, Chairman of the Board, on behalf of the Board, and lists the current members of the Board - This announcement was issued by Mr. Zhuang Jinzhou, Chairman of the Board of Directors of Kam Shing Group (Holdings) Limited, on **June 28, 2024**[109](index=109&type=chunk)[110](index=110&type=chunk) - The Board members include three executive directors (Mr. Zhuang Jinzhou, Mr. Zhuang Huabin, and Mr. Zhuang Huaqing) and three independent non-executive directors (Mr. Chow On Tai Yuen, Ms. Tsui Pui Man, and Mr. Law Tsz Lun)[110](index=110&type=chunk)

Financial Performance - The company's revenue decreased by approximately 19.1% to about HKD 385.9 million during the period[13]. - Gross profit for the period fell by approximately 16.5% to about HKD 67.2 million, compared to HKD 80.5 million in the same period last year[13]. - The net loss for the period was approximately HKD 9.5 million, resulting in a net loss margin of 2.5%, compared to a net loss margin of 1.8% in the same period of 2022[30]. - Revenue for the six months ended September 30, 2023, was approximately HKD 385.9 million, a decrease of 19.1% compared to HKD 476.9 million in the same period of 2022[18]. - The company reported a loss before tax of HKD 8.9 million, compared to a loss of HKD 5.9 million in the previous year, indicating a worsening financial performance[65]. - The total comprehensive income for the six months ended September 30, 2023, was a loss of HKD 27,406,000, compared to a loss of HKD 51,092,000 for the same period in 2022, representing a 46.3% improvement[69]. - The basic and diluted loss per share for the period was HKD 2.87, compared to HKD 2.44 in the previous year[65]. - The company reported a loss attributable to owners of HKD 9,515,000 for the six months ended September 30, 2023, compared to a loss of HKD 8,388,000 in the same period of 2022[107]. Cost Management - The average selling price of the company's products decreased due to increased sales of lower-cost products[13]. - The company maintained a focus on internal cost control measures to ensure effective resource allocation[14]. - Sales and administrative expenses decreased to approximately HKD 27.7 million from HKD 41.8 million in the same period of 2022, while administrative expenses decreased by 13.7% to approximately HKD 40.4 million[28]. - The total employee costs for the six months ended September 30, 2023, were HKD 60,163,000, down 24.5% from HKD 79,638,000 in the previous year[105]. Operational Efficiency - The company plans to implement production integration to enhance production capacity and efficiency[14]. - The company aims to enhance cost and production efficiency through resource and production integration, leveraging its production capacity in Dongguan[44]. - The cash conversion cycle improved to 84 days from 103 days, attributed to a strategic focus on producing cardboard and semi-finished packaging products[34]. - The company is adjusting its product strategy to focus on semi-finished packaging products and cardboard, which have increased domestic sales orders and shortened cash conversion cycles[44]. Market and Sales - The company successfully expanded its sales orders in the domestic market, particularly in the medical equipment sector[13]. - The demand for quality paper packaging products is expected to continue growing in the long term due to the development of the express delivery industry[10]. - Revenue from corrugated products was HKD 304.538 million, while revenue from flexographic printed corrugated products was HKD 105.591 million, with no revenue from property leasing[82]. Financial Position - The net asset value as of September 30, 2023, was HKD 509.1 million, down from HKD 535.9 million as of March 31, 2023[67]. - Current assets increased to HKD 423.5 million from HKD 394.7 million, reflecting improved liquidity[67]. - The company's total assets decreased from HKD 638,455,000 to HKD 535,927,000 as of April 1, 2023, indicating a 16.1% reduction[69]. - The total bank borrowings as of September 30, 2023, were approximately HKD 163.7 million, with HKD 128.5 million due within one year[36]. Governance and Compliance - The board is committed to maintaining appropriate corporate governance practices to safeguard shareholder interests and ensure compliance with statutory regulations[53]. - The company has adhered to the applicable provisions of the corporate governance code during the reporting period[54]. - All board members have confirmed compliance with the standards set forth in the trading code during the reporting period[56]. Investment and Future Plans - The company plans to invest more resources to capture growth opportunities in green paper packaging, particularly in China and Southeast Asia[44]. - The company has adopted a cautious approach in light of economic uncertainty, with no major investment plans currently in place[45]. Risk Management - The company continues to monitor foreign exchange risks and will consider appropriate hedging actions as necessary[38]. - The company is implementing a diversified procurement strategy to mitigate risks associated with reliance on specific suppliers or regions, ensuring stable raw material supply while maintaining quality standards[44].

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佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何 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。 COME SURE GROUP (HOLDINGS) LIMITED 錦 勝 集 團（ 控 股 ）有 限 公 司* （於開曼群島註冊成立之有限公司） （股份代號：00794） 截至二零二三年九月三十日止六個月 中期業績公佈 集團業績 錦勝集團（控股）有限公司（「本公司」）之董事（「董事」）局（「董事局」）欣然公佈， 本公司及其附屬公司（統稱「本集團」）截至二零二三年九月三十日止六個月之未經 審核綜合業績如下： 綜合損益及其他全面收入報表 截至二零二三年九月三十日止六個月 截至九月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 （未經審核） （未經審核） 收益 3 385,899 476,948 銷售成本 (318,678) (396,461) ...

Financial Performance - The company's revenue for the fiscal year ending March 31, 2023, was HKD 787,078,000, a decrease of 33.2% compared to HKD 1,177,271,000 in the previous year[10]. - Gross profit for the same period was HKD 118,289,000, resulting in a gross margin of approximately 15.0%[10]. - The company recorded a net loss of HKD 67,236,000 for the fiscal year, compared to a net profit of HKD 39,882,000 in the previous year[10]. - Total assets decreased to HKD 1,068,862,000 from HKD 1,299,264,000 in the previous year, reflecting a decline of 17.7%[11]. - The company's revenue decreased by approximately 33.1% to about HKD 787.1 million in the current year, compared to HKD 1,177.3 million in the previous year[30]. - Gross profit for the year fell by about 35.1% to approximately HKD 118.3 million, down from HKD 182.3 million in the previous year[30]. - The overall gross margin slightly decreased to about 15.0%, compared to 15.5% in the previous year[31]. - The company recorded a net loss of approximately HKD 67.2 million, compared to a net loss of HKD 39.9 million in the previous year[32]. - Revenue from Guangdong operations decreased to approximately HKD 773.3 million in 2023, down from HKD 1,096.1 million in 2022, a decline of about 29.5%[40]. - The gross profit margin for the group was maintained at approximately 15.0% in 2023, compared to 15.5% in 2022[42]. - Other income for the year was approximately HKD 10.4 million, significantly down from HKD 63.6 million in 2022, primarily due to a one-time relocation compensation received in the previous year[45]. - Sales and administrative expenses decreased to approximately HKD 68.1 million in 2023, down from HKD 89.8 million in 2022[49]. - The net loss for the year was approximately HKD 67.2 million, compared to a net loss of HKD 39.9 million in 2022, resulting in a net loss margin of 8.5%[53]. Business Strategy and Development - The company has diversified its product mix and customer base, focusing on the production of cardboard and semi-finished products to meet changing logistics demands[14]. - The company successfully expanded its customer base in the medical industry, which is expected to contribute significantly to future growth[14]. - The company plans to continue adjusting its business development strategies to enhance resilience and establish a solid foundation for long-term sustainable financial performance[15]. - The company plans to invest further resources to support long-term business expansion in China, leveraging its production capacity in Dongguan[20]. - The company aims to maintain strict cost control while expanding its customer base and product offerings in the domestic market[30]. - The group aims to expand and diversify its customer base, particularly in industries with growth potential such as healthcare, in response to declining demand in the home appliance sector[77]. - The group plans to allocate more resources to semi-finished packaging products, such as cardboard production, which typically have a shorter cash cycle[77]. - The group will maintain long-term relationships with existing suppliers and implement a diversified procurement strategy for domestic and imported raw materials to ensure stable and quality supply[77]. Corporate Governance - The board of directors is committed to maintaining appropriate corporate governance practices to safeguard shareholder interests and ensure compliance with statutory regulations[82]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a strong independent element for effective decision-making[90]. - The board meets at least four times a year, with additional special meetings as necessary to address any concerns[92]. - The board held four meetings during the year to review operational performance and market conditions, and to approve overall strategies and annual/interim results[96]. - The audit committee held three meetings to consider the reappointment of external auditors and reviewed the audited consolidated financial statements for the year[109]. - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Executive Committee, each with defined responsibilities[106]. - The nomination committee is responsible for reviewing the board's structure and composition to ensure it meets the company's development needs[102]. - The audit committee monitors the completeness of the company's financial statements and reviews significant financial reporting judgments[110]. - The company encourages directors to participate in relevant professional development courses to continuously improve their skills[96]. Risk Management and Internal Control - The group has established effective risk management and internal control systems, complying with Code Principle D.2, with no significant risks identified during the annual risk assessment[135]. - The internal control system aligns with the COSO 2013 framework, ensuring operational effectiveness, reliability of financial reporting, and compliance with applicable laws[136]. - The board is responsible for reviewing the effectiveness of the risk management and internal control systems annually, considering changes in significant risks and the group's ability to respond to business and external environment changes[142]. Environmental and Social Responsibility - The company is committed to corporate social responsibility and adheres to high environmental standards in its production processes[20]. - The group is committed to minimizing environmental impact through energy conservation and encouraging the recycling of office supplies[199]. - The group operates its facilities in strict compliance with relevant environmental regulations and possesses all necessary permits issued by Chinese regulatory authorities[199]. Shareholder Engagement - The company encourages shareholders to attend the annual general meeting to provide feedback and engage with the board[146]. - The annual general meeting is scheduled for September 1, 2023, with notices and relevant information to be sent to shareholders at least 21 days prior to the meeting[146]. - The company emphasizes transparency and values shareholder feedback, encouraging communication with the investor relations team[157].

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佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何 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。 COME SURE GROUP (HOLDINGS) LIMITED 錦 勝 集 團（ 控 股 ）有 限 公 司* （於開曼群島註冊成立之有限公司） （股份代號：00794） 截至二零二三年三月三十一日止年度 業績公佈 集團業績 錦勝集團（控股）有限公司（「本公司」）之董事（「董事」）局（「董事局」）欣然公佈， 本公司及其附屬公司（統稱「本集團」）截至二零二三年三月三十一日止年度（「本年 度」或「年內」）之經審核綜合業績如下： 綜合損益表 截至二零二三年三月三十一日止年度 二零二三年 二零二二年 附註 千港元 千港元 收益 2 787,078 1,177,271 銷售成本 (668,789) (995,012) 毛利 118,289 182,259 其他收入 3 10,449 63,602 其他收益及虧損 4 (8,546) 12,193 銷售費用 (68,097) (89,783) 行政費用 (89,3 ...

Economic Performance - In the six months ending September 30, 2022, China's GDP growth rates were 0.4% and 3.9% for the second and third quarters, respectively, compared to 7.9% and 4.9% in the same periods of 2021[11]. - The total retail sales of consumer goods in China for the first nine months of 2022 grew by 0.7% year-on-year, reaching approximately RMB 32,031 billion, with online retail sales increasing by 4.0% to about RMB 9,588.4 billion[11]. - The profit of large paper and paper product manufacturers in China decreased by approximately 42.0% year-on-year in the first three quarters of 2022, highlighting the operational pressures faced by the industry[12]. - The exchange rate of RMB to USD reached a new low since 2011 at RMB 7.0998 per USD on September 30, 2022, compared to RMB 6.4854 per USD on September 30, 2021[12]. Company Performance - The company's revenue decreased by approximately 24.3% to about HKD 476,900,000 compared to HKD 630,100,000 in the same period last year[16]. - The gross profit for the period was approximately HKD 80,500,000, a decrease of about 2.4% from HKD 82,500,000 in the previous year, while the overall gross margin increased to approximately 16.9% from 13.1%[17]. - The company recorded a net loss of approximately HKD 8,400,000, an improvement from a net loss of HKD 9,100,000 in the same period last year[18]. - The total comprehensive loss for the period was HKD 51,092,000, compared to a loss of HKD 2,349,000 in the previous year, showing a significant increase in losses[84]. Operational Challenges - Increased logistics costs due to global supply chain tensions and inflation have pressured the profitability of paper packaging manufacturers[12]. - The retail trade in the domestic market was negatively impacted by COVID-19 control measures, yet the company continues to seize significant opportunities in the market[14]. - The company is committed to providing high-quality packaging products and value-added services to sustain orders from loyal customers despite the challenging economic environment[23]. Financial Management - The group recorded other losses of approximately HKD 1,800,000 compared to other income of HKD 6,500,000 in the previous year, mainly due to fair value losses on investment properties[35]. - Sales expenses decreased to approximately HKD 41,800,000 from HKD 46,600,000 year-on-year, while administrative expenses reduced to approximately HKD 46,800,000 from HKD 61,700,000, reflecting enhanced internal controls and risk management[33]. - The cash conversion cycle increased to 100 days from 80 days year-on-year[40]. - The group had unutilized bank financing of approximately HKD 766,000,000 to ensure future cash flow[42]. Strategic Initiatives - The company aims to diversify its customer base while continuing to expand strategically in the domestic market[14]. - The company plans to enhance resource integration and optimize capacity allocation to expand and diversify its customer base in response to market changes[18]. - The group aims to focus resources on developing the domestic paper packaging production business to maintain stable growth amid challenging market conditions[52]. - The group emphasizes a diversified procurement strategy to maintain a flexible and cost-effective supply of raw materials from both domestic and overseas suppliers[52]. Human Resources - As of September 30, 2022, the group employed a total of 1,040 employees, down from 1,174 employees as of March 31, 2022[50]. - Total employee compensation expenses, including director remuneration, amounted to approximately HKD 79.6 million, compared to HKD 103.1 million for the same period last year, reflecting a decrease of about 22.9%[50]. Shareholder Information - Major shareholders include Perfect Group Version Limited, which holds 233,000,000 shares, representing 67.76% of the issued shares[61]. - The CEO and other senior management are considered to have interests in the shares held by Perfect Group, which also amounts to 233,000,000 shares or 67.76%[60]. Tax and Compliance - The group has several subsidiaries in China that qualify for a reduced corporate tax rate of 15% due to their status as high-tech enterprises[135]. - The group has not recognized any tax provisions for the six months ended September 30, 2022, due to ongoing discussions with the tax authority regarding tax assessments[139]. - The group has received estimated tax assessments from the Hong Kong Inland Revenue Department totaling HKD 23,247,000 for the tax years from 2009/10 to 2015/16[160]. Investment and Capital Expenditure - The group had capital expenditures contracted but not yet provided for approximately HKD 7,500,000, an increase from HKD 5,800,000 as of March 31[47]. - The company acquired property, plant, and equipment for approximately HKD 4,678,000 during the reporting period[146]. Market Conditions - The group will adjust its sales and marketing strategies in a timely manner based on the latest market conditions while adhering to strict risk control management[52]. - There are no significant investment plans under the current uncertain economic conditions, but the group will review its investment portfolio as necessary to achieve sustainable profitability[53].