Financial Performance - The Group recorded a revenue of HK$717.5 million for the six months ended 30 September 2023, representing a decrease of 3.5% compared to HK$743.6 million in the same period last year[16]. - Gross profit for the period was HK$104.1 million, with a gross profit margin of 14.5%, unchanged from the previous year[13]. - Operating profit decreased to HK$26.2 million from HK$33.5 million, indicating a decline of 21.8% year-on-year[13]. - Profit attributable to owners of the Company was HK$19.7 million, down from HK$26.7 million, reflecting a decrease of 26.3%[13]. - Basic earnings per share fell to 6.90 HK cents from 9.36 HK cents, a decline of 26.3%[13]. - The net profit margin for the period was 2.7%, down from 3.6% in the first half of 2022/23[31]. - The Group declared an interim dividend of HK4.0 cents per share, down from HK5.0 cents per share in the previous year[32]. - The Group recorded other net losses of HK$1.2 million for the period, compared to other net gains of HK$13.9 million in the previous year, primarily due to net foreign currency exchange losses[69]. - Profit for the period was HK$19.7 million, a decrease of HK$7.2 million or 27.0% compared to HK$26.9 million in the previous year, with basic earnings per share of HK6.90 cents[73]. - Other comprehensive loss for the period amounted to HK$20,521,000, compared to a loss of HK$32,753,000 in the previous year[153]. - Total comprehensive loss for the period was HK$856,000, a significant improvement from a loss of HK$5,805,000 in the same period of 2022[153]. Cash Flow and Liquidity - Cash and cash equivalents increased to HK$170.3 million from HK$138.2 million, showing a growth of 23.2%[13]. - The current ratio improved to 2.31 from 2.13, indicating better short-term financial health[13]. - The net cash position increased to HK$65.9 million as of September 30, 2023, compared to a net cash of HK$0.9 million as of March 31, 2023[90]. - For the six months ended 30 September 2023, cash generated from operations was HK$95,067,000, an increase of 7.5% compared to HK$88,458,000 for the same period in 2022[159]. - Net cash generated from operating activities was HK$89,513,000, up from HK$76,610,000, reflecting a growth of 16.1% year-over-year[159]. - Dividends paid during the six months ended 30 September 2023 amounted to HK$19,934,000, compared to HK$17,087,000 in the same period of 2022, indicating an increase of 16.9%[159]. Business Segments - Sales from electronic products, the Group's core business, amounted to HK$590.2 million, representing a year-on-year decrease of 7.9%[38]. - The pet business recorded sales of HK$127.3 million, a year-on-year increase of 23.8%, accounting for 17.7% of total sales[41]. - Revenue from the electronic products segment was approximately HK$590.2 million, a decrease of HK$50.6 million or 7.9% compared to the previous year, representing 82.3% of the Group's total revenue[82]. - Revenue from the pet-related products segment increased to approximately HK$127.3 million, an increase of HK$24.5 million or 23.8% compared to the previous period, representing 17.7% of the Group's total revenue[87]. Strategic Initiatives - The Group remains cautiously optimistic about business prospects for FY2023/24, focusing on expanding its product portfolio and leveraging its "China Plus One" strategy[18]. - The management plans to enhance production efficiency in Vietnam, which is now on par with facilities in China, to meet emerging demand[17]. - The establishment of an IoT department aims to develop a diversified IoT product portfolio, providing one-stop solutions for business partners[40]. - The Group's IoT product development has led to significant revenue growth, particularly from electronic paper displays produced in Vietnam[42][49]. - The "China Plus One" strategy continues to drive business development, leveraging production capabilities in both China and Vietnam[49][51]. - The Group is committed to enhancing product R&D and optimizing the pet health ecosystem to meet evolving consumer demands[47][53]. - The Group expects stable revenue growth from electronic products and increased orders in the IoT field in the future[49]. Financial Position - The Group's total assets as of September 30, 2023, were approximately HK$1,147.0 million, down from HK$1,231.2 million as of March 31, 2023[94]. - The Group's total liabilities as of September 30, 2023, were approximately HK$363.3 million, down from HK$426.8 million as of March 31, 2023[94]. - The liquidity ratio improved to 2.31 times as of September 30, 2023, compared to 2.13 times as of March 31, 2023[89]. - The debt ratio decreased to approximately 0.32 times as of September 30, 2023, from approximately 0.35 times as of March 31, 2023[94]. - The Group's net asset value decreased from HK$804.4 million as of March 31, 2023, to HK$783.6 million as of September 30, 2023[95]. - The Group's capital expenditures for the period were HK$2.2 million, primarily for machinery and equipment for production plants in China and Vietnam[97]. Corporate Governance - The Company complied with the Corporate Governance Code throughout the period, except for a deviation regarding the separation of the roles of Chairman and Chief Executive Officer until June 30, 2023[115][120]. - The Audit Committee reviewed the accounting policies and practices adopted by the Group and discussed risk management and internal control systems for the six months ended September 30, 2023[124][128]. - The Company confirmed compliance with the Model Code for Securities Transactions by Directors during the six months ended September 30, 2023[122][126]. - There was sufficient public float of not less than 25% of the Company's issued shares as required under the Listing Rules as of the report date[123][127]. Financial Risks and Instruments - The Group is exposed to various financial risks, including foreign exchange risk, cash flow and fair value interest rate risk, credit risk, and liquidity risk[182]. - The fair value estimation of the Group's financial instruments is categorized into three levels, with Level 1 being quoted prices in active markets[185]. - The Group maximizes the use of observable market data for fair value estimation, particularly for level 1 financial instruments[192]. - The financial risk management strategy emphasizes the importance of accurate fair value estimation to mitigate potential financial risks[199].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內 容而引致之任何損失承擔任何責任。 截至二零二三年九月三十日止六個月之未經審核中期業績公告 財務摘要 – 收益為717,500,000港元（二零二二年：743,600,000港元） – 毛利為104,100,000 港元（二零二二年：107,900,000港元） – 本公司擁有人應佔溢利為19,700,000港元（二零二二年：26,700,000港元） – 每股基本盈利為6.90 港仙（二零二二年：9.36港仙） – 董事會議決派發中期股息每股4.0港仙（二零二二年：中期股息每股5.0港仙） ...

Financial Performance - Total revenue for the year 2023 was HK$1,443,482,000, a decrease of 22.2% from HK$1,855,875,000 in 2022[13] - Revenue from electronic products was HK$1,243,928,000 in 2023, down 12% from HK$1,412,953,000 in 2022[13] - Revenue from pet-related products totaled HK$199,554,000, a significant decline from HK$442,922,000 in 2022, representing a decrease of 55.0%[13] - Revenue from the United States was HK$654,433,000, down 45.4% from HK$1,196,719,000 in 2022[13] - Revenue from the People's Republic of China increased to HK$411,843,000, up 51.6% from HK$271,799,000 in 2022[13] - Revenue for the year ended 31 March 2023 was HK$1,443.5 million, a decrease of approximately 22.2% compared to HK$1,855.9 million in the previous year[30] - Gross profit for the year was HK$202.9 million, with a gross profit margin of 14.1%, up from 13.9% in the previous year[30] - Profit attributable to shareholders increased by 5.9% to HK$59.8 million, compared to HK$56.5 million in the previous year[30] - Basic earnings per share were HK21.00 cents, an increase from HK19.83 cents in the previous year[30] - The Group recorded revenue of HK$1,443.5 million for the year ended 31 March 2023, a decrease of 22.2% compared to HK$1,855.9 million in the previous year[76] - Gross profit for the year was HK$202.9 million, representing a decrease of 21.3% from HK$257.7 million in the prior year[78] - The Group's profit for the year was HK$60.1 million, a 5.8% increase from HK$56.8 million in the prior year[76] Dividends - The company proposed a final dividend of HK4.0 cents per share and a special dividend of HK3.0 cents per share, totaling HK12.0 cents for the year[32] - The total proposed dividend for the year is HK$12.0 per share, consistent with the previous fiscal year[59] Business Strategy and Development - The company aims to become a technologically advanced and innovative partner in Asia, focusing on comprehensive electronics solutions and a pet health ecosystem[6] - The company is actively developing Internet of Things (IoT) technology, with stable growth in orders from a new innovative IoT partner focused on the European and American markets[36] - The Group plans to continue promoting business diversification and leverage the "China Plus One" strategy for steady development[70] - The Group aims to diversify its business and leverage the "China + 1" production layout advantage to ensure stable overall business development amid economic recovery opportunities[100] - The Group's focus on developing IoT technology has led to steady growth in orders from an innovative IoT company, contributing to revenue growth[58] Operational Performance - The pet business recorded sales of HK$199.6 million, a decrease of 54.9% from HK$442.9 million in the previous fiscal year, accounting for 13.8% of the Group's total sales[40] - The electronic products business generated revenue of HK$1,243.9 million, down 12.0% from HK$1,413 million in the previous year, representing 86.2% of total sales[57] - The Group's production capacity in the Dongguan plant was fully utilized due to increased order volumes from Mainland China, while the Vietnam plant is gradually receiving new business opportunities[63] - The Group's cooperation with new customers in producing Single-Board Computers and professional audio equipment began to yield significant revenue contributions in the second half of the year[63] Financial Position - Total bank borrowings decreased to HK$137.3 million from HK$206.0 million in the previous year[30] - The current ratio improved to 2.13, up from 1.80 in the previous year[30] - As of March 31, 2023, the Group's current assets were approximately HK$870.4 million and current liabilities were approximately HK$408.2 million, resulting in a liquidity ratio of 2.13 times[85] - The Group's total assets and total liabilities as of March 31, 2023, were approximately HK$1,231.2 million and HK$426.8 million, respectively, with a debt ratio of approximately 0.35 times[86] - The net asset value of the Group decreased from HK$810.0 million as of March 31, 2022, to HK$804.4 million as of March 31, 2023[86] - The Group had aggregate banking facilities of approximately HK$822.7 million as of March 31, 2023, with unused facilities of HK$682.3 million[86] Corporate Governance - The company is committed to maintaining high standards of corporate governance and transparency[160] - The Company has complied with all applicable code provisions of the Corporate Governance Code, except for code provision C.2.1[167] - The Board is responsible for risk management and internal control systems, ensuring reasonable assurance of achieving business objectives[186] - The Board holds at least four meetings annually to review business development and overall strategic policies[187] - The Company has complied with the Listing Rules regarding the appointment of at least three independent non-executive directors, ensuring one has appropriate professional qualifications[200] Management and Leadership - Dr. Ng Chi Ho held both the Chairman and CEO positions until July 1, 2023, when Dr. Ng Man Cheuk was appointed as CEO[140] - The management team includes experienced professionals with extensive backgrounds in finance, accounting, and technology[160] - The management team regularly discusses sustainability issues and makes appropriate recommendations[174] Sustainability and Community Engagement - The company is committed to environmental protection and nurturing talent while providing quality products and services[18] - The Group has established a sustainable development management framework to oversee relevant work and ensure high-quality product delivery[174] - The Group is actively engaged in community and civic initiatives to support local development[158]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該 等內容而引致之任何損失承擔任何責任。 截至二零二三年三月三十一日止年度之全年業績公告 財務摘要 – 收益為1,443,500,000港元（二零二二年：1,855,900,000港元） – 毛利為202,900,000港元（二零二二年：257,700,000港元） – 股權持有人應佔溢利為59,800,000港元（二零二二年：56,500,000港元） – 每股基本盈利為21.00港仙（二零二二年：19.83港仙） – 董事會建議派發末期股息每股4.0港仙（二零二二年：6.0港仙） – 董事會建議派發特別股息每股3.0港仙 （二零二二年：無） – 年內每股股息合共12.0港仙（二零二二年：12.0港仙） ...

Financial Performance - Revenue for the six months ended September 30, 2022, was HK$743,576,000, a decrease of 26% from HK$1,003,298,000 in 2021[16] - Gross profit for the same period was HK$107,880,000, with a gross profit margin of 14.5%, compared to 13.4% in the previous year[16] - Operating profit decreased to HK$33,494,000 from HK$38,953,000, while profit attributable to owners of the Company was HK$26,665,000, down from HK$29,103,000[16] - Basic earnings per share were 9.36 HK cents, a decline from 10.22 HK cents in the prior year[16] - The Group's turnover decreased by 25.9% year-on-year to HK$743.6 million (1H 2021/22: HK$1,003.3 million) [23] - Gross profit was HK$107.9 million (1H 2021/22: HK$134.7 million), with a gross profit margin rising to 14.5% (1H 2021/22: 13.4%) [23] - Profit attributable to shareholders was HK$26.7 million (1H 2021/22: HK$29.1 million), resulting in a net profit margin of 3.6% (1H 2021/22: 2.9%) [23] - Profit for the period was HK$26,948,000, an 8.7% decline from HK$29,507,000 in the previous year[57] - Total comprehensive loss for the period was HK$32,753,000, compared to a loss of HK$3,498,000 in the previous year[177] Cash and Liquidity - Cash and cash equivalents increased to HK$158,039,000 from HK$141,657,000, while total bank borrowings decreased to HK$174,706,000 from HK$206,000,000[16] - The current ratio improved to 2.0 from 1.8, and the gearing ratio decreased to 22.2% from 25.4%[16] - The net gearing ratio improved to 2.1% from 7.9%, indicating a stronger financial position[16] - The Group's liquidity ratio improved to 1.95 times as of September 30, 2022, compared to 1.80 times as of March 31, 2022[76] - The Group's net debt position improved to HK$16.7 million as of September 30, 2022, down from HK$64.3 million as of March 31, 2022[76] - The Group's total cash flow from financing activities resulted in a net outflow of HK$49,314,000, compared to a smaller outflow of HK$15,338,000 in the previous year[189] Operational Highlights - The business environment was impacted by the COVID-19 pandemic, global inflation, and interest rate hikes, yet the Company managed to advance its business through a diversified product portfolio[20] - The Group launched a line of fresh, grain-free cat food under the "TeenyTiny" brand, achieving compliance with 83 international, U.S., and European standards [36] - The Group expects to see solid development in its core electronic products business, with new orders for audio products and Single-Board Computers (SBC) anticipated to contribute profits in the second half of the financial year [42] - The Group has entered into a partnership with a new customer in the professional audio equipment field, expanding its customer base and revenue stream [28] - The Group's diversified product portfolio and focus on unique product development have enabled steady growth in a complex market environment [27] - The Group remains cautiously optimistic about its business prospects in the second half of the financial year, despite uncertainties from geopolitical tensions and high inflation [37] Segment Performance - Sales from electronic products amounted to HK$640.8 million (1H 2021/22: HK$768.7 million), representing a year-on-year decrease of 16.6% and accounting for 86.2% of total sales [26] - The pet business recorded sales of HK$102.8 million (1H 2021/22: HK$234.6 million), representing a year-on-year decrease of 56.2% and accounting for 13.8% of total sales [33] - Revenue from the electronic products segment was approximately HK$640.8 million, a decrease of HK$127.9 million or 16.6% compared to HK$768.7 million in the previous period[67] - Revenue from the pet-related products segment recorded approximately HK$102.8 million, a decrease of HK$131.8 million or 56.2% compared to HK$234.6 million in the previous period[69] Expenses and Cost Management - Selling and distribution expenses decreased by HK$3.9 million or 12.3% to HK$28.0 million, reflecting the drop in revenue during the period[63] - General and administrative expenses decreased by HK$11.7 million or 16.3% to HK$60.2 million, mainly due to a reduction in headcount and bonuses[63] - Other income increased significantly by 404.6% to HK$4,420,000 from HK$876,000, while other gains – net rose by 91.2% to HK$13,892,000 from HK$7,267,000[57] Shareholder Information - An interim dividend of HK5.0 cents per share was declared for the six months ended 30 September 2022, down from HK6.0 cents per share in the same period of the previous year[109] - The interim dividend declared is HK$0.05 per share for the six months ended September 30, 2022, down from HK$0.06 per share in the same period last year[112] - The company has confirmed that at least 25% of its issued shares are held by the public as required under the Listing Rules[122] Corporate Governance - The Audit Committee has reviewed the unaudited condensed consolidated interim financial information for the six months ended September 30, 2022[124] - The company has confirmed compliance with the Corporate Governance Code for the period under review[118] - The company has adopted the Model Code for Securities Transactions by Directors, confirming compliance during the six months ended September 30, 2022[120]

Financial Performance - Revenue for the year ended March 31, 2022, was HK$1,855,875, a decrease of 11.6% from HK$2,101,573 in 2021[12] - Gross profit for 2022 was HK$257,733, down from HK$286,634 in 2021, reflecting a decline of 10.1%[12] - Operating profit decreased to HK$75,933 in 2022 from HK$102,083 in 2021, representing a drop of 25.7%[12] - Profit attributable to owners of the Company was HK$56,465, a decrease of 28.8% compared to HK$79,274 in the previous year[12] - Earnings per share (basic) fell to 19.83 HK cents from 27.96 HK cents, a decline of 29.1%[12] - The Group's turnover for the year amounted to HK$1,855.9 million, representing a decrease of approximately 11.7% compared to HK$2,101.6 million in the previous year[30] - Gross profit was HK$257.7 million with a gross profit margin of 13.9%, up from 13.6% in the previous year[30] - Profit attributable to shareholders declined to HK$56.5 million, with a net profit margin of 3.1%, down from 3.8% in the previous year[30] Revenue Breakdown - Revenue from electronic products was HK$1,412,953, down from HK$1,695,367, a decrease of 16.7%[15] - Revenue from pet-related products increased to HK$442,922 from HK$406,206, reflecting a growth of 9.0%[15] - The electronic products business contributed HK$1,413.0 million, accounting for 76.1% of total sales, down by 16.7% year-on-year[34] - Revenue from the electronic products segment recorded approximately HK$1,413.0 million, representing 76.1% of the Group's total revenue, and decreased by 16.7% compared to last year[81] - Revenue from the pet-related products segment recorded approximately HK$442.9 million, an increase of HK$36.7 million or 9.0% compared to the previous financial year, driven by growth in demand for pet training devices[83] Assets and Liabilities - Total equity as of March 31, 2022, was HK$809,959, slightly up from HK$802,168 in 2021[12] - Net current assets increased to HK$398,413 from HK$355,422, showing a growth of 12.1%[12] - The debt to equity ratio rose to 25.4% in 2022 from 17.5% in 2021, indicating increased leverage[12] - As of March 31, 2022, the group's current assets were approximately HK$899.2 million, and current liabilities were approximately HK$500.8 million, resulting in a liquidity ratio of 1.80 times[90] - The group's total assets amounted to approximately HK$1,333.3 million, with total liabilities of approximately HK$523.3 million, leading to a debt ratio of approximately 0.39 times[90] Operational Challenges - The COVID-19 pandemic and the emergence of the Omicron variant significantly impacted the Group's performance, particularly in the second half of the year[30] - The Group's production and operations were affected by tightened pandemic prevention measures at its major production bases in Dongguan and Vietnam[30] - The logistics and raw material supply were also impacted due to the ongoing pandemic situation[30] - Customers are now adopting mid- to long-term strategies for order placements due to supply chain constraints, allowing the Group to enhance operational efficiency[53] Strategic Initiatives - The Group has actively expanded into Internet of Things (IoT) technologies, securing orders from a new customer focused on IoT-based products for the European and US markets[37] - The Group's "China Plus One" strategy, initiated in 2018, includes an automated factory in Vietnam, enhancing production allocation and reducing supply chain risks[49] - The Group aims to capitalize on the development potential of the pet food market by building its own pet food brand[44] Corporate Governance - The Group is committed to maintaining high standards of corporate governance and financial transparency[154] - The Group's governance structure includes a diverse board with expertise in engineering, technology, and business management[134][146] - The Company has complied with the Listing Rules regarding the appointment of at least three independent non-executive directors, ensuring their independence[182] - The Board is responsible for supervising the Group's business, reviewing financial performance, and approving strategic plans and investment decisions[181] Management and Leadership - The Group's leadership includes members with extensive experience in both academia and industry, enhancing its strategic direction[127][128][134][146] - The Group's management team includes professionals with advanced degrees from prestigious institutions, enhancing its competitive edge[157] - The Group's Chief Financial Officer, Mr. CHOW Sze Shek, has over 28 years of experience in corporate finance, accounting, and auditing[159] - The Group's Chief Operation Officer, Mr. TENG Boon Han, has international working exposure in the USA, Malaysia, Indonesia, and Thailand[160] Employee and Talent Development - The Group's remuneration policy includes educational sponsorship subsidies and discretionary performance bonuses[110] - The management team is committed to nurturing local talents through various educational initiatives and advisory roles[129]

Financial Performance - The Group's turnover increased by 10.7% year-on-year to HK$1,003.3 million (1H 2020/21: HK$906.0 million) due to rising sales of pet training equipment[10]. - Gross profit rose by 10.0% to HK$134.7 million (1H 2020/21: HK$122.4 million), with a gross profit margin of 13.4% (1H 2020/21: 13.5%) [11]. - Profit attributable to shareholders remained stable at HK$29.1 million (1H 2020/21: HK$29.1 million), with a net profit margin of 2.9% (1H 2020/21: 3.2%) [11]. - Sales from the core electronic products business amounted to HK$768.7 million, representing a year-on-year increase of 6.4% and accounting for 76.6% of total sales[18]. - The pet business recorded sales of HK$234.6 million, a year-on-year increase of 27.9%, accounting for 23.4% of total sales[21]. - Revenue from the electronic products segment recorded approximately HK$768.7 million, representing 76.6% of the group's total revenue, with an increase of HK$46.1 million or 6.4% compared to the previous year[58]. - Revenue from the pet-related products segment recorded approximately HK$234.6 million, representing 23.4% of the group's total revenue, with an increase of HK$51.1 million or 27.9% compared to the previous review period[58]. - Operating profit for the period was HK$39.0 million, an increase of HK$1.6 million or 4.2% compared to the corresponding period last year[47]. - Profit for the period was HK$29.5 million, representing an increase of HK$0.2 million or 0.6% compared to HK$29.3 million in the previous year[47]. Dividends and Shareholder Returns - The interim dividend declared is HK$6.0 cents per share, consistent with the previous year[11]. - The Board declared an interim dividend of HK$6.0 cents per share for the six months ended 30 September 2021, consistent with the previous period[92]. - The company paid dividends totaling HK$31,327,000 during the period[183]. Production and Operations - The Group is optimizing its production base in Vietnam to meet strong customer demand for diversified supply chains[9]. - The new highly automated factory in Vietnam, covering over 30,000 sq. m., commenced operations in October to meet customer demand for cost-effective production[31]. - The Group aims to improve operational efficiency in its factories in Mainland China and Vietnam to enhance cost-effectiveness and reduce geopolitical risks[39]. - The Group continues to benefit from the "stay-at-home" mentality, driving demand for home appliances and related products[19]. - The overall market is showing signs of recovery despite ongoing global material supply tensions and shipping challenges[9]. Research and Development - The Group plans to enhance R&D resources for smart and big data-related products, showcasing innovative technologies such as pet facial recognition and AI solutions at the Hong Kong Electronics Fair[40]. Financial Position and Assets - As of 30 September 2021, the Group's current assets were approximately HK$904.9 million, an increase from HK$875.2 million as of 31 March 2021[64]. - The liquidity ratio decreased slightly to 1.65 times as of 30 September 2021, compared to 1.68 times as of 31 March 2021[64]. - The Group's cash and bank balances were approximately HK$126.5 million as of 30 September 2021, down from HK$127.8 million as of 31 March 2021[64]. - Total bank borrowings increased to HK$155.5 million as of 30 September 2021, compared to HK$138.6 million as of 31 March 2021, resulting in a gearing ratio of 19.5%[64]. - The Group's total assets amounted to approximately HK$1,350.3 million as of 30 September 2021, up from HK$1,326.6 million as of 31 March 2021[64]. - The debt ratio was approximately 0.41 times as of 30 September 2021, compared to 0.40 times as of 31 March 2021[64]. - The net asset value decreased from HK$802.2 million as of 31 March 2021 to HK$798.7 million as of 30 September 2021[64]. - The Group's total capital expenditures for the period were HK$28.2 million, primarily for machinery and equipment for production plants in PRC and Vietnam[64]. Corporate Governance and Compliance - The Audit Committee reviewed the accounting policies and practices adopted by the Group for the six months ended 30 September 2021[97]. - The Company confirmed compliance with the Model Code for Securities Transactions by Directors during the reporting period[97]. - The public float of the Company's issued shares was not less than 25% as required under the Listing Rules[97]. - The company has adopted the standard code of conduct for securities trading by directors, confirming compliance as of September 30, 2021[98]. - The company confirms compliance with the Securities and Futures Ordinance regarding the interests and short positions of directors[110]. Employee and Remuneration - The Group employed approximately 2,896 employees, with 69 based in Hong Kong and the remainder primarily in Mainland China and Vietnam[88]. - The Group's remuneration policy includes educational sponsorship subsidies, discretionary performance bonuses, and share options[88]. Shareholder Interests - Dr. Ng Chi Ho holds a total interest of 170,528,000 shares, representing 59.88% of the issued ordinary shares[101]. - Mr. Ma Fung On has a total interest of 14,223,000 shares, accounting for 4.99% of the issued ordinary shares[101]. - Dr. Ng Man Cheuk holds 111,000,000 shares, which is 38.98% of the issued ordinary shares[101]. - Superior View Inc. holds 110,000,000 shares, representing 38.62% of the issued shares[129]. - Billion Linkage Limited owns 53,598,000 shares, accounting for 18.82% of the issued shares[133]. - Lee Wai Fun has an interest in 116,930,000 shares, which is 41.06% of the issued shares[137]. Cash Flow and Investments - For the six months ended September 30, 2021, cash generated from operations was HK$49,385,000, compared to HK$48,404,000 in the same period of 2020, reflecting a slight increase[190]. - The net cash used in investing activities amounted to HK$34,533,000, primarily due to purchases of property, plant, and equipment totaling HK$29,741,000[190]. - Proceeds from bank borrowings were HK$175,000,000, while repayments of bank borrowings were HK$158,050,000, resulting in a net cash inflow from financing activities of HK$15,520,000[190]. - The cash and cash equivalents at the end of the period were HK$126,547,000, down from HK$128,459,000 at the beginning of the period, indicating a decrease of HK$1,649,000[190]. Accounting Policies and Standards - The accounting policies applied are consistent with those of the annual consolidated financial statements for the year ended March 31, 2021, with no material effect from the adoption of new amendments[195]. - The Group has not early adopted new accounting standards and amendments that are not yet effective for the financial year beginning April 1, 2021[199]. - The amendments to HKAS 16, HKAS 37, and HKFRS 3 will take effect from January 1, 2022, impacting property, plant, and equipment accounting practices[200]. - The amendments to HKAS 1 and HKFRS Practice Statement 2 regarding the disclosure of accounting policies will be effective from January 1, 2023[200]. - The definition of accounting estimates has been revised under HKAS 8, effective January 1, 2023[200]. - Amendments to HKAS 12 regarding income taxes and asset sales between investors and their associates will also take effect on January 1, 2023[200].

Financial Performance - Revenue for the year ended March 31, 2021, was HK$2,101,573, representing a 30% increase from HK$1,615,183 in 2020[10] - Gross profit increased to HK$286,634, up 39% from HK$206,343 in the previous year[10] - Operating profit rose significantly to HK$102,083, compared to HK$34,534 in 2020, marking a 195% increase[10] - Profit attributable to owners of the Company was HK$79,274, a substantial increase from HK$27,705 in 2020, reflecting a 186% growth[10] - Earnings per share increased to 27.96 HK cents, up from 9.77 HK cents in the prior year, representing a 186% rise[10] - Total equity as of March 31, 2021, was HK$802,168, compared to HK$704,841 in 2020, indicating a 14% increase[10] - The company reported a net cash position of (HK$10,760) as of March 31, 2021, down from HK$60,709 in 2020[10] - Capital expenditure for the year was HK$114,690, significantly higher than HK$35,005 in the previous year, reflecting a 228% increase[10] Revenue Segmentation - Revenue from electronic products was HK$1,695,367, while pet-related products generated HK$406,206, showing growth in both segments[12] - The electronic products segment contributed HK$1,695.4 million, accounting for 80.7% of total sales, with a year-on-year growth of 24.3%[30] - The pet business generated revenue of approximately HK$406.2 million, a 62.0% increase year-on-year, representing 19.3% of total revenue[33] Dividends and Shareholder Returns - The company proposed a final dividend of HK8.0 cents per share and a special dividend of HK3.0 cents per share, totaling HK17.0 cents for the year, up from HK8.0 cents in the previous year[25] Market and Production Expansion - Suga has expanded its production base in Vietnam, which has allowed the company to meet increased demand for certain products during the pandemic[23] - The Chinese market showed a quick rebound, leading to an increase in orders for general consumer electronics, filling production capacity previously vacated in Dongguan[32] - The group plans to expand its customer base in China and enhance market resilience by utilizing production capacity at its Dongguan plant[45][46] - A new plant of over 30,000 sq.m. is being built in Vietnam, expected to commence production in the second half of 2021, to meet increasing demand for cost-effective production[52] Innovation and Product Development - The company maintained its commitment to developing innovative products despite the pandemic, resulting in strong demand for professional audio equipment[31] - The professional audio equipment segment is expected to sustain demand, with plans to grow the R&D team to develop products with strong demand potential[44] Financial Health and Ratios - The debt to equity ratio increased to 17.5% from 9.6% in the previous year, indicating a rise in leverage[10] - The Group's total assets as of March 31, 2021, amounted to approximately HK$1,326.6 million, up from HK$998.0 million as of March 31, 2020[73] - The Group's total liabilities as of March 31, 2021, were approximately HK$524.4 million, compared to HK$293.1 million as of March 31, 2020[73] - The debt ratio was approximately 0.40 times as of March 31, 2021, compared to 0.29 times as of March 31, 2020[73] - The liquidity ratio was 1.68 times as of March 31, 2021, down from 2.19 times as of March 31, 2020[71] Corporate Governance - The Group is committed to high standards of corporate governance, complying with the Corporate Governance Code, except for the separation of the roles of Chairman and CEO[132][133] - The Group's leadership structure currently combines the roles of Chairman and CEO, held by Dr. Ng, which the Board believes provides strong and consistent leadership[134] - The Board consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[137] - The Company has complied with the Listing Rules regarding the appointment of at least three independent non-executive directors, ensuring independence and objectivity in Board decisions[142] Risk Management and Internal Controls - The Board is responsible for the risk management and internal control systems, which were reviewed for effectiveness for the year ended March 31, 2021[148] - The Audit Committee held two meetings during the year to review the fiscal year 2019/2020 annual report and the fiscal year 2020/2021 interim report, discussing financial results and risk management[167] Employee and Director Information - The Group employed approximately 2,890 employees as of March 31, 2021, with 73 based in Hong Kong and the remainder primarily in Mainland China and Vietnam[84] - The Group's Chief Financial Officer, Mr. Chow, has over 27 years of experience in corporate finance and accounting, having joined the Group in September 2001[125] - The Chief Executive Officer of WePet Group, Mr. Ng, has been responsible for developing the pet business since joining in 2010, focusing on wholesale and retail operations in Hong Kong and mainland China[125][126]

Financial Performance - Turnover increased by 3.0% year-on-year to HK$906.0 million (1H2019/20: HK$879.8 million) despite challenges from the COVID-19 pandemic [10] - Gross profit rose by 3.5% to HK$122.4 million (1H2019/20: HK$118.3 million), with a gross profit margin of 13.5% (1H2019/20: 13.4%) attributed to cost effectiveness and production capacity expansion in Vietnam [13] - Profit attributable to shareholders was HK$29.1 million (1H2019/20: HK$27.5 million), resulting in a net profit margin of 3.2% (1H2019/20: 3.1%) and basic earnings per share of HK10.25 cents (1H2019/20: HK9.68 cents) [13] - Operating profit increased by 16.4% to HK$37.4 million compared to the previous year, driven by increased revenue and improved gross profit margin [49] - Profit for the period was HK$29.3 million, representing a 7.3% increase from HK$27.3 million in the last corresponding period [55] - Total comprehensive income for the period was HK$29,302,000, compared to HK$22,343,000 in 2019, marking a significant increase of 31.2% [157] Revenue Segments - The electronic products business generated stable revenue of HK$722.6 million (1H2019/20: HK$740.3 million), representing a year-on-year decrease of 2.4% and accounting for 79.8% of total sales [16] - Revenue from electronic products segment decreased by 2.4% to HK$722.6 million, accounting for 79.8% of total revenue [60] - The pet business recorded sales of HK$183.4 million, representing a year-on-year growth of 31.5% and accounting for 20.2% of total sales [19] - Revenue from pet-related products segment increased by 31.5% to HK$183.4 million, representing 20.2% of total revenue [63] Market Trends and Strategies - The demand for professional audio equipment surged due to the trend of remote working and learning from home, particularly for wireless microphones [17] - The Group aims to strengthen its market presence in Mainland China to mitigate pandemic impacts and enhance resilience against risks [29] - The Group's strategy includes diversifying regional markets and production layouts for risk aversion post-COVID-19 [23] - The Group anticipates that the trend of working from home will continue to stimulate demand for pet products [33] - The Group is optimistic about returning to pre-epidemic business performance and is focused on seizing opportunities in the "new normal after COVID-19" [39] Production and Expansion Plans - The Group plans to build a new factory of over 30,000 sq.m. in Vietnam, expected to commence production in 2021, to reduce production costs and support business expansion in Mainland China [30] - The number of R&D projects has significantly increased amid the pandemic, focusing on professional audio equipment and new hair styling products, which is expected to enhance profitability [24] - Orders for other products that were postponed earlier have resumed, with some expected to be delivered in the second half of the year, potentially improving business performance [18] Financial Position - As of September 30, 2020, the Group's current assets were approximately HK$811.7 million, and current liabilities were approximately HK$452.7 million, resulting in a liquidity ratio of 1.79 times [65] - The Group's total assets increased to approximately HK$1,185.4 million as of September 30, 2020, from HK$998.0 million as of March 31, 2020, with total liabilities rising to HK$456.9 million [71] - The net asset value of the Group increased from HK$704.8 million as of March 31, 2020, to HK$728.5 million as of September 30, 2020, primarily due to profit for the period [72] - The Group maintained cash and bank balances of approximately HK$137.1 million as of September 30, 2020, an increase from HK$128.5 million as of March 31, 2020 [66] Corporate Governance and Shareholder Information - The company declared an interim dividend of HK6.0 cents per share for the six months ended 30 September 2020, consistent with the previous year [90] - The company has complied with the Corporate Governance Code, except for the deviation where the roles of Chairman and Chief Executive Officer are held by the same individual, Dr. Ng Chi Ho [93] - The company confirmed that there was sufficient public float of not less than 25% of the issued shares as required under the Listing Rules [101] - The directors confirmed compliance with the Model Code for Securities Transactions during the six months ended 30 September 2020 [100] Financial Risks and Accounting Policies - The Group is exposed to various financial risks including foreign exchange risk, cash flow and fair value interest rate risk, credit risk, and liquidity risk [189] - There have been no significant changes in the risk management policies since the year end of March 31, 2020 [189] - The Group's accounting policies are consistent with those of the annual consolidated financial statements for the year ended March 31, 2020, with interim income taxes accrued using the applicable tax rate for expected total annual earnings [181]

Financial Performance - Revenue for the year ended March 31, 2020, was HK$1,615,183, a decrease of 3.9% from HK$1,681,862 in 2019[13] - Gross profit for the year was HK$206,343, down from HK$226,983 in the previous year, reflecting a decline of 9.1%[13] - Operating profit decreased to HK$34,534, a drop of 47.3% compared to HK$65,524 in 2019[13] - Profit attributable to owners of the Company was HK$27,705, down 50.2% from HK$55,557 in 2019[13] - Earnings per share decreased to 9.77 HK cents, down from 19.64 HK cents in the previous year[13] - The Group's turnover for the financial year was HK$1.6 billion, a year-on-year decrease of 4.0% from HK$1.7 billion in FY2018/19[31] - Gross profit amounted to approximately HK$206.3 million, with a gross profit margin of 12.8%, down from HK$227.0 million and 13.5% in the previous year[31] - Profit attributable to shareholders was HK$27.7 million, resulting in a net profit margin of 1.7%, compared to HK$55.6 million and 3.3% in FY2018/19[31] Revenue Breakdown - Revenue from electronic products was HK$1,364,415, a decrease of 2.3% from HK$1,395,599 in 2019[16] - Revenue from pet-related products was HK$250,768, down 12.4% from HK$286,263 in 2019[16] - Revenue from the USA was HK$769,079, a decrease of 7.7% from HK$832,952 in 2019[17] - The electronic products business generated revenue of HK$1,364.4 million, accounting for 84.5% of total sales, with a year-on-year decrease of 2.2%[37] - The pet business recorded sales of HK$250.8 million, representing a year-on-year decrease of 12.4% and accounting for 15.5% of total sales[45] Assets and Liabilities - Total equity as of March 31, 2020, was HK$704,841, down from HK$724,650 in 2019[13] - As of March 31, 2020, the Group's current assets were approximately HK$630.8 million, down from HK$676.4 million as of March 31, 2019, while current liabilities decreased to approximately HK$287.6 million from HK$317.7 million[95] - The Group's total assets as of March 31, 2020, were approximately HK$998.0 million, down from HK$1,042.7 million as of March 31, 2019, while total liabilities decreased to approximately HK$293.1 million from HK$318.0 million[101] - The debt ratio improved to approximately 0.29 times as of March 31, 2020, compared to 0.31 times as of March 31, 2019[101] Operational Developments - The highly automated factory in Vietnam commenced operation, with an expansion of production lines to sixteen to meet customer demand[44] - The Group has expanded its production capacity by renting over 6,000 sq.m. of additional space in Vietnam to accommodate increased demand[44] - Production facilities in Dongguan, China, have fully resumed operations, preparing for increased order volumes from business partners[54] - The Group anticipates a rise in demand for technology products post-COVID-19, presenting significant business opportunities[53] New Products and Innovations - The Group's new product, the "Cordless Hair Straightener," has received positive market feedback and is part of its new smart personal care business[37] - The "Cordless Hair Straightener" won the Gold Prize in the Personal Electronics category at the Electronic Industries Awards 2019, showcasing the Group's technological innovation capabilities[47] - The Group plans to launch a new pet food brand targeting the mid-range market in China, following positive responses at the Pet Fair Asia in August 2019[97] Corporate Governance - The Company has complied with the Corporate Governance Code, except for CG Code A.2.1, which requires separation of the roles of Chairman and Chief Executive Officer[173][174] - The Board is responsible for supervising the Group's business, reviewing financial performance, and approving strategic plans and funding decisions[181][184] - The Company has appointed at least three independent non-executive directors, ensuring compliance with Listing Rules[182] - The Board held four regular meetings and one Annual General Meeting during the year, with full attendance from all directors[192] Management and Directors - The Group's overall management is vested in its board of directors, which comprises eight members from diverse professional backgrounds[176] - The Group's Chief Financial Officer, Mr. CHOW Sze Shek, has over 26 years of experience in corporate finance, accounting, and auditing[160] - The Group's independent non-executive director, Dr. CHEUNG Nim Kwan, has served as the Chief Executive Officer of the Hong Kong Applied Science and Technology Research Institute, which has 500 members[156] - The Group's independent non-executive director, Mr. CHAN Kit Wang, has over 43 years of experience in accounting, auditing, and taxation[152] Financial Management - Total operating expenses were HK$174.2 million, an increase of HK$7.6 million compared to HK$166.6 million in the previous fiscal year[75] - Net finance costs for the year were HK$3.5 million, an increase from HK$1.9 million in the previous year[76] - The Group maintained cash and bank balances of approximately HK$128.5 million as of March 31, 2020, similar to HK$127.8 million in the previous year[100] - The Group's bank borrowings were HK$67.8 million as of March 31, 2020, down from HK$69.5 million as of March 31, 2019, maintaining a gearing ratio of 9.6%[100]