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依賴該等內容而引致之任何損失承擔任何責 任。 民生國際有限公司 （於百慕達註冊成立之有限公司） （股份代號︰938） 截 至2023年9月30日止六個月之 未經審核財務業績 民 生 國 際 有 限 公 司（「本公司」）董 事 會（「董事會」）欣 然 宣 佈 本 公 司 及 其 附 屬 公 司 （統 稱「本集團」）截 至2023年9月30日 止 六 個 月 之 未 經 審 核 財 務 業 績，連 同2022年 同 期 之 未 經 審 核 比 較 數 據。 – 1 – 簡明綜合損益表 截 至2023年9月30日止六個月 | --- | --- | |-------|-----------------| | | 日止六個月 | | | 2022年 | | 附 註 | 千港元 | | | （未 經 審 核） | 收 入 3 68,634 82,919 銷售成本 (62,830) (80,522) | ...

Corporate Governance - The Board is responsible for the overall management of the Group, overseeing strategic decisions and performance[16]. - The Company has complied with all code provisions in the Corporate Governance Code during the period, except for a deviation regarding the separation of roles between the Chairman and CEO[14]. - The Board consists of four executive directors and three independent non-executive directors, ensuring a diverse leadership structure[18]. - The Audit Committee is composed of three independent non-executive directors, with Mr. Wong Kwan Kit serving as the chairman[31]. - Directors have acknowledged their responsibility for preparing all information in the consolidated financial statements for the year ended 31 March 2023[23]. - Each independent non-executive director has a service agreement for a term of three years, subject to rotational retirement provisions[27]. - The management team is delegated authority for day-to-day operations, with major corporate matters reviewed periodically by the Board[16]. - The Company emphasizes high standards of corporate governance to manage business risks and enhance transparency[13]. - The Board meets regularly to discuss overall strategy and financial performance, with six meetings held during the year[19]. Financial Performance - Revenue for the year ended March 31, 2023, was HK$50,185,000, an increase from HK$40,329,000 in the previous fiscal year, representing a growth of approximately 24%[62]. - The company's revenue for FY23 increased to HK$137,137,000, representing a growth of 17.56% compared to HK$116,656,000 in FY22[73]. - Gross profit for FY23 was HK$10,435,000, a significant recovery from a gross loss of HK$8,394,000 in FY22, marking a change of 224.31%[73]. - Loss before tax increased to HK$481,271,000 in FY23, up 28.26% from a loss of HK$375,244,000 in FY22[73]. - The total comprehensive expenses attributable to equity holders for FY23 were HK$587,601,000, compared to HK$323,153,000 in FY22, primarily due to a decrease in the fair value of investment properties[78]. - The company's net assets decreased to HK$(397,764,000) in FY23 from HK$190,159,000 in FY22, reflecting a change of 309.17%[73]. - Cash and cash equivalents increased slightly to HK$32,869,000 in FY23 from HK$31,770,000 in FY22, a growth of 3.46%[73]. - The gross profit margin improved to 7.61% in FY23 from a negative margin of (7.20)% in FY22, indicating a significant turnaround[75]. - The return on equity for FY23 was 121.85%, a recovery from (194.35)% in FY22, showing a positive shift in financial performance[75]. - The current ratio decreased to 1.01 times in FY23 from 1.49 times in FY22, indicating a decline in short-term liquidity[75]. Business Operations - The hotel business achieved an average occupancy rate of over 80%, outperforming surrounding hotels of the same category[64]. - The Group's rental income from serviced apartments and shopping malls in the Chongqing Property is expected to remain a stable income source in the long run[64]. - The Group is studying to enhance its business model to boost sales in response to the cautious behavior of real estate investors[64]. - The Group's performance and prospects are assessed clearly and comprehensively, with results announced within two months and three months after the relevant periods[37]. - The Group continues to diversify its revenue streams through four main business segments, including property development and hotel operations in Japan[87]. - The Group's serviced apartments and hotel operations in Hokkaido, Japan, are anticipated to further improve as travel restrictions ease[101]. - The Group's property management segment and renovation services are expected to continue providing stable income moving forward[101]. - The Group's hotel operations in Japan are expected to leverage the unique integrated facilities of hotel, golf course, and restaurant to enhance profitability[146]. - The Group is actively optimizing and restructuring its shopping mall operations, which are in the nurturing stage, showing improvement post-pandemic[123]. - The Group's serviced apartments in Chongqing have generated positive returns and are expected to provide stable income, while the shopping mall operation is in the nurturing stage[172]. Remuneration and Committees - The Group's remuneration policy aims to retain and motivate executive Directors and employees by linking compensation to the Company's performance[35]. - The Remuneration Committee held one meeting during the year to approve the remuneration packages for Directors and senior management[54]. - The Remuneration Committee comprises three independent non-executive Directors and two executive Directors, with Ms. Pau Yee Ling as the chairman[33]. Investment and Financial Strategy - The Group plans to focus on reducing operating expenses and improving asset profitability to generate stable income and cash flow[101]. - The Group aims to identify investment and merger opportunities to enhance overall financial performance and diversify its investment portfolio[101]. - The Group plans to seek more investment opportunities with promising outlooks to create value for shareholders[149]. - The Group is considering refining its investment strategy and optimizing its asset portfolio to alleviate financial burdens[185]. - The Group will continue to comply with financial covenants related to secured bank borrowings, including timely repayment of principal and interest[184]. - The Group is assessing various feasible solutions to improve operations, including obtaining additional financing to reduce debt burden[159]. Liabilities and Equity - As of March 31, 2023, the Group had no material contingent liabilities[1]. - As of March 31, 2023, the Group's current liabilities were HK$463,797,000, an increase from HK$364,548,000 in 2022, while total borrowings amounted to HK$2,851,056,000, up from HK$2,802,264,000 in 2022[183]. - The gearing ratio was negative 7.17 as of March 31, 2023, compared to 14.74 in 2022, indicating negative total equity[183]. - Approximately HK$123,047,000 of total borrowings will be due within the next twelve months from the reporting date, compared to HK$47,714,000 in 2022[183]. - The Group had capital commitments of HK$7,351,000 as of March 31, 2023, significantly higher than HK$1,963,000 in 2022[183]. - The Group's net current assets were HK$4,704,000, a decrease from HK$179,466,000 in 2022, while cash and cash equivalents were HK$32,869,000, slightly up from HK$31,770,000 in 2022[183]. - As of March 31, 2023, the Group's total equity was negative HK$397,764,000, a decrease of HK$587,923,000 from the previous year, primarily due to exchange losses and the loss for the year[182]. Market and Economic Conditions - The Group expects occupancy rates and room rates for serviced apartments in Chongqing to reach new post-COVID highs[101]. - Average occupancy rate for hotels in Hokkaido exceeded 80%, significantly higher than similar hotels in the area, benefiting from the recovery of the tourism industry post-pandemic[135]. - The Chongqing Property is strategically located near Jiefangbei Walking Street, a well-known retail area, which is expected to attract more customers[130].

Financial Performance - The company's revenue for the fiscal year 2023 was HKD 137,137,000, an increase of HKD 20,481,000 or 17.5% compared to HKD 116,656,000 in fiscal year 2022[5] - Gross profit for fiscal year 2023 was HKD 10,435,000, recovering from a gross loss of HKD 8,394,000 in the previous year, resulting in a gross margin of 7.6% compared to a negative gross margin of 7.2% in fiscal year 2022[7] - The company reported a net loss of HKD 483,325,000 for the year, slightly improved from a loss of HKD 375,610,000 in 2022[54] - The company experienced a significant decrease in the fair value of investment properties, reporting a loss of HKD 193,891,000 compared to HKD 69,366,000 in 2022[52] - Total comprehensive expenses for the fiscal year were approximately HKD 587,923,000, up from HKD 326,969,000 in the previous fiscal year[155] Expenses and Cost Management - Selling and administrative expenses decreased by 17.6% to HKD 11,399,000 and by 16.4% to HKD 69,210,000 respectively, due to strict cost control measures implemented by the company[8] - The company aims to reduce operating expenses and improve asset profitability to generate stable income and cash flow, thereby lowering capital debt ratios and financial costs[4] - Employee costs, including salaries and other allowances, decreased from HKD 72,688,000 in 2022 to HKD 46,648,000 in 2023, a reduction of approximately 36%[97] - The company incurred financial costs totaling HKD 167,920,000 in 2023, down from HKD 185,602,000 in 2022, indicating a decrease of about 9.5%[95] Assets and Liabilities - As of March 31, 2023, the company's total equity was negative HKD 397,764,000, a decrease of HKD 587,923,000 from HKD 190,159,000 in the previous year[10] - The current ratio decreased from 1.49 in 2022 to 1.01 in 2023, indicating a tighter liquidity position[10] - The company’s total assets decreased to HKD 2,346,883,000 from HKD 2,808,254,000 in the previous year[62] - The company’s total liabilities decreased to HKD 2,749,351,000 from HKD 2,797,561,000 year-over-year[64] - The total amount of outstanding commercial papers at year-end was HKD 912,052,000 in 2023, compared to HKD 868,052,000 in 2022[127] Investment and Growth Strategies - The company is actively seeking investment opportunities to create value for shareholders while focusing on improving the financial performance of existing businesses[4] - The company is actively seeking investment and acquisition opportunities with growth potential to improve overall financial performance and diversify its investment portfolio[35] - The company plans to optimize and restructure its shopping mall operations, which are currently in the nurturing stage, to achieve new sales breakthroughs[3] - The group is considering various feasible plans to improve operations, including obtaining further equity or loan financing from related parties[14] Operational Performance - The hotel and golf course in Hokkaido are expected to benefit from the recovery of the tourism industry in Japan, leveraging their unique integrated facilities[1] - The company anticipates a new high in occupancy rates for its serviced apartments in Chongqing and expects further improvements in hotel and resort operations in Hokkaido, Japan[35] - The reported loss from the Chongqing property segment was HKD 401,526,000, indicating a challenging operational environment[75] - The shopping mall leasing situation has shown continuous improvement as foot traffic and income gradually increase post-pandemic[158] Compliance and Governance - The group will continue to comply with financial covenants related to secured bank borrowings, ensuring timely repayment of principal and interest[12] - The independent non-executive directors have confirmed their independence in accordance with the listing rules[28] - The group has no significant contingent liabilities as of March 31, 2023[22] Revenue Breakdown - Total revenue for the year ended March 31, 2023, was HKD 137,137,000, with contributions from various segments including serviced apartments (HKD 30,052,000) and property management services (HKD 36,907,000) [45] - Revenue from external customers totaled HKD 137,137,000, with significant contributions from various segments[74] - The company reported a total income from customer contracts under operating leases of HKD 132,042,000, which includes fixed and variable lease payments [45] - Property management revenue increased to HKD 36,907,000 in the fiscal year 2022 from HKD 30,919,000 in the previous year, representing a growth of approximately 19.3%[160]

Revenue Performance - Revenue for the six months ended September 30, 2022, was HK$82,919,000, an increase of 68.9% compared to HK$49,035,000 for the same period in 2021[10]. - Revenue for the six months ended 30 September 2022 was HK$80,535,000, compared to HK$44,352,000 for the same period in 2021, representing an increase of approximately 81.5%[51]. - Revenue from hotel operations in Japan reached HK$36,321,000, up from HK$7,860,000 in the previous year, reflecting a growth of 361.5%[55]. - Revenue from property management services generated revenue of HK$17,549,000, an increase of 22.8% from HK$14,353,000 in the prior year[55]. - Revenue from external customers in Chongqing property development was HK$22,852,000, showing a notable increase from HK$21,770,000 in the same period last year[65]. - Revenue from the Chongqing Property was approximately HK$22,852,000, up from HK$21,770,000 in the same period last year[164]. - Renovation and decoration revenue was approximately HK$36,321,000 for the six months ended 30 September 2021, compared to HK$7,860,000 for the same period in the previous year, indicating significant growth[180]. Financial Performance - Gross profit for the same period was HK$2,397,000, up from HK$1,837,000, reflecting a gross margin improvement[10]. - Loss for the period was HK$146,089,000, compared to a loss of HK$200,147,000 in the previous year, indicating a reduction in losses[10]. - Basic and diluted loss per share was HK(22.69 cents), an improvement from HK(45.20 cents) in the same period last year[10]. - The segment loss before tax for the group was HK$142,871,000, compared to a loss of HK$215,784,000 for the same period in 2021, indicating an improvement in financial performance[65]. - For the six months ended September 30, 2022, the loss attributable to equity holders of the Company was HK$146,860,000, compared to a loss of HK$199,856,000 for the same period in 2021, representing a 26.5% improvement[82]. - Total comprehensive expenses for the current period were approximately HK$259,870,000, an increase from HK$143,696,000 in the previous year[160]. Expenses and Costs - Selling expenses increased to HK$8,342,000 from HK$7,136,000, reflecting higher marketing efforts[10]. - Administrative expenses rose slightly to HK$45,251,000 from HK$44,752,000, indicating stable operational costs[10]. - Finance costs decreased to HK$88,998,000 from HK$96,849,000, reflecting improved debt management[10]. - The company reported unallocated expenses of HK$37,595,000 for the period, which contributed to the overall loss before tax[65]. - Interest on bank and other borrowings amounted to HK$52,649,000, slightly down from HK$53,543,000 in the previous year[72]. - Interest expense on unsecured borrowings was HK$20,443,000, a decrease from the previous year's figure[160]. Assets and Liabilities - As of September 30, 2022, total non-current assets decreased to HK$2,482,184, down from HK$2,808,254 as of March 31, 2022, representing a decline of approximately 11.6%[14]. - Current assets totaled HK$487,177, a decrease from HK$544,014, reflecting a reduction of about 10.5%[14]. - The company reported a net current liabilities of HK$1,133,908, compared to net current assets of HK$179,466 as of March 31, 2022, indicating a significant shift in financial position[14]. - Total liabilities increased to HK$1,621,085 from HK$364,548, marking a substantial rise in obligations[17]. - The company's total equity attributable to owners decreased to HK$ (69,711) as of September 30, 2022, from HK$190,159, indicating a negative equity position[17]. - Cash and cash equivalents stood at HK$28,697, down from HK$31,770, a decrease of approximately 8.7%[14]. - Trade and other receivables increased to HK$28,759 from HK$26,363, reflecting a growth of about 9.1%[14]. - The carrying amount of the investment properties as of September 30, 2022, was approximately HK$1,748,450,000, down from HK$1,957,299,000 as of March 31, 2022, indicating a decrease in value[86]. Cash Flow and Financing - For the six months ended September 30, 2022, the net cash used in operating activities was HK$14,452,000, compared to HK$52,478,000 for the same period in 2021, indicating a significant improvement[29]. - The net cash from financing activities for the six months ended September 30, 2022, was HK$21,044,000, a recovery from a net cash used of HK$70,304,000 in the previous year[32]. - The total cash and cash equivalents at the end of the period were HK$28,697,000, down from HK$37,837,000 at the end of the same period in 2021[32]. - The company reported a payment for property, plant, and equipment of HK$2,710,000 for the six months ended September 30, 2022, compared to HK$1,422,000 in the prior year[29]. - The company experienced a net cash used in investing activities of HK$3,911,000 for the six months ended September 30, 2022, compared to a net cash generated of HK$3,248,000 in the previous year[29]. - The Group's cash flow projection indicates sufficient working capital to meet financial obligations over the next twelve months[39]. Strategic Developments - The Group's strategic plan focuses on multi-business development and regional growth, aiming to strengthen brand influence and diversify customer services[179]. - The Group anticipates that the tourism industry in Japan will gradually recover, leading to improved performance for the Hokkaido hotel in the long run[195]. - The Group is committed to monitoring financial performance, reducing operating expenses, and improving asset profitability to generate stable income and cash flows[196]. - The Group is exploring ways to adjust its business model to increase revenue due to the impacts of the COVID-19 pandemic[170]. - The shopping mall operation in Chongqing is still in its nurturing stage and has been impacted by the pandemic resurgence, but is expected to return to normal as the market recovers[194]. Management and Governance - Key management personnel compensation for the six months ended September 30, 2022, totaled HK$4,178,000, a decrease of 16.3% from HK$4,990,000 in the same period of 2021[142]. - The company’s short-term benefits for key management were HK$4,121,000 for the six months ended September 30, 2022, compared to HK$4,922,000 in the previous year[142]. - The Group has implemented financial risk management policies to ensure that all payables are settled within the credit timeframe, enhancing operational efficiency[98].

Financial Performance - Revenue for FY22 decreased by 26.51% to HK$116,656,000 from HK$158,729,000 in FY21[8] - Gross loss for FY22 was HK$8,394,000, a significant improvement from a gross loss of HK$24,278,000 in FY21, representing a 65.43% reduction[8] - Loss before tax narrowed by 27.13% to HK$375,244,000 compared to HK$514,965,000 in the previous year[8] - Loss attributable to owners of the Company decreased by 28.76% to HK$371,735,000 from HK$521,821,000 in FY21[8] - Basic and diluted loss per share improved to HK$0.69 from HK$1.26, a 45.24% reduction[8] - Total comprehensive expenses for FY22 were approximately HK$326,969,000, compared to HK$396,025,000 in FY21[29] - The loss attributable to equity holders decreased to HK$371,735,000 in FY22 from HK$521,821,000 in FY21, with total comprehensive expenses at HK$323,153,000 compared to HK$397,998,000 in the previous year[66] Revenue Breakdown - Revenue from the Chongqing property segment was HK$37,418,000, down from HK$62,053,000 in FY21[31] - Revenue from property management services increased to HK$30,919,000 in FY22, up from HK$26,249,000 in FY21[39] - Revenue from the renovation and decoration segment was HK$40,329,000, down from HK$62,394,000 in FY21[43] - Revenue for FY22 amounted to HK$116,656,000, a decrease of HK$42,073,000 compared to FY21's HK$158,729,000, primarily due to reduced income from Chongqing Property[60] Asset and Equity Management - Net assets increased slightly by 0.55% to HK$190,159,000 from HK$189,128,000[8] - The Group's total equity was HK$190,159,000, a slight increase of 0.55% from HK$189,128,000 in the previous year, driven by an exchange gain of HK$48,641,000 from the appreciation of Renminbi[71] - The Group's cash and cash equivalents decreased to HK$31,770,000 in FY22 from HK$153,787,000 in FY21, indicating a liquidity challenge[73] - The current ratio as of March 31, 2022, was 1.49, down from 1.71 in FY21, reflecting a decline in current assets to HK$544,014,000 from HK$670,556,000[73] Cost Management - Selling and administrative expenses were reduced to HK$96,665,000 in FY22 from HK$122,100,000 in FY21, reflecting effective cost control measures[65] - The total staff cost for FY22 was HK$72,688,000, an increase from HK$67,245,000 in FY21, with a total workforce of 393 employees[86] Corporate Governance - The Company has a strong commitment to high standards of corporate governance, which is essential for managing business risks and enhancing transparency[137] - The Board of Directors consists of five executive Directors and three independent non-executive Directors, ensuring a balance of skills and experience[148] - The Company has complied with all principles of good corporate governance throughout the year ended March 31, 2022[140] - The independent non-executive Directors bring extensive experience in accounting, financial management, and mergers and acquisitions[129][130][132] - The Group's corporate governance policy is aligned with the Corporate Governance Code set out in the Listing Rules[139] Strategic Outlook - The Group plans to continue identifying investment and merger and acquisition opportunities to enhance financial performance and diversify its investment portfolio[25] - The operating environment remains uncertain due to the resurgence of COVID-19 in Mainland China, but the long-term positive trend is expected to continue[23] - The company expects the tourism industry in Japan to gradually recover, positively impacting hotel performance in the long run[58] - The redevelopment of Chongqing Property has been completed, with expectations for serviced apartments to generate positive returns due to geographical advantages[56] Risk Management - The Group did not enter into any foreign exchange contracts for hedging during FY22, exposing it to fluctuations in exchange rates primarily from RMB and JPY[81] - The Company ensures compliance with statutory and regulatory provisions through regular reviews[174] - The Company has established adequate systems of internal controls and risk management procedures as part of its governance framework[146]

Financial Performance - Revenue for the six months ended September 30, 2021, was HK$49,035,000, a decrease of 39.2% compared to HK$80,749,000 for the same period in 2020[11]. - Gross profit for the period was HK$1,837,000, compared to a gross loss of HK$4,111,000 in the previous year[11]. - Loss before tax increased to HK$215,784,000, compared to a loss of HK$139,758,000 in the same period last year, representing a 54.3% increase[11]. - Loss for the period was HK$200,147,000, compared to HK$137,773,000 in the previous year, indicating a 45.2% increase in losses[11]. - Basic and diluted loss per share was HK$0.4520, compared to HK$0.3254 for the same period in 2020[11]. - Total comprehensive expenses for the period amounted to HK$143,696,000, compared to HK$67,391,000 in the same period last year[14]. - Other income and gains for the period were HK$3,519,000, an increase from HK$1,426,000 in the previous year[11]. Assets and Liabilities - As of September 30, 2021, total assets amounted to HK$4,632,755,000, a decrease from HK$4,754,315,000 as of March 31, 2021, reflecting a decline of approximately 2.56%[16]. - Current liabilities decreased to HK$581,308,000 from HK$670,556,000, representing a reduction of about 13.25%[16]. - The net current liabilities stood at (HK$1,283,587,000), a significant decline from net current assets of HK$278,927,000 in the previous period[16]. - Cash and cash equivalents decreased sharply to HK$37,837,000 from HK$153,787,000, indicating a decline of approximately 75.5%[16]. - Non-current liabilities increased to HK$1,487,358,000 from HK$2,922,042,000, showing a decrease of about 49.1%[18]. - The company's net assets as of September 30, 2021, were HK$45,432,000, down from HK$189,128,000, reflecting a decrease of approximately 76%[18]. - Total equity decreased to HK$45,432,000 from HK$189,128,000, indicating a decline of about 76%[18]. Cash Flow and Financing - The Group's net cash used in operating activities was HK$52,478,000 for the six months ended September 30, 2021, compared to HK$19,604,000 in the same period of the previous year[30]. - The Group's net cash from investing activities was HK$3,248,000, a significant decrease from HK$37,621,000 in the prior period[30]. - The Group's financing activities resulted in a net cash outflow of HK$70,304,000, compared to HK$1,106,270,000 in the previous year[30]. - The Group's capital commitment as of September 30, 2021, was approximately HK$2,128,000[34]. - The Group's cash inflow from a related company was HK$4,647,000 during the reporting period[30]. - Mr. Hu provided continuous financial support with unutilized facilities amounting to approximately HK$394,218,000 available for drawdown as of 30 September 2021[37]. Business Operations - Revenue from external customers in Chongqing property segment was HK$21,770,000, while property management services generated HK$14,353,000, and hotel operation in Japan contributed HK$5,052,000[69]. - Revenue from serviced apartments increased to HK$17,087,000 from HK$10,321,000, reflecting a growth of 65.5% year-over-year[59]. - The total revenue from hotel operations in Japan was HK$7,860,000, a decrease from HK$38,858,000 in the same period last year, representing a decline of 79.8%[59]. - The Group's renovation and decoration services generated HK$3,812,000, slightly down from HK$3,986,000, a decrease of 4.4%[59]. - The Group's operating segments include property development, property management services, renovation and decoration services, and hotel operations in Japan, each facing different market risks and returns[64]. Related Party Transactions - Significant related party transactions included management service fees of HK$5,986,000, an increase of 85.5% from HK$3,222,000 in the previous period[161]. - Interest expenses on promissory notes amounted to HK$31,205,000, slightly up from HK$31,120,000 in the prior year[161]. Strategic Developments - The Group anticipates that lease income from serviced apartments and the shopping mall will become a stable income source in the long run[199]. - The Group is engaged in diversified business activities including real estate development, hotel management, and property management to create multiple income streams[193]. - The Group's strategic focus includes expanding its presence in the hotel and property management sectors to enhance revenue diversification[193]. Taxation - The PRC Enterprise Income Tax was calculated at a rate of 25% on estimated assessable profits, with a current income tax of HK$219,000 reported[92]. - The company did not generate any assessable profits in Hong Kong or Japan, resulting in no tax provisions for these regions[85][86].

Financial Performance - Revenue for FY21 was HK$158,729,000, an increase of 16.85% from HK$135,838,000 in FY20[8] - Gross loss for FY21 was HK$24,278,000 compared to a gross profit of HK$56,421,000 in FY20, representing a decline of 143.03%[8] - Loss before tax for FY21 was HK$514,965,000, a significant increase from a loss of HK$178,041,000 in FY20, marking a 189.24% increase[8] - The loss attributable to owners of the Company rose to HK$521,821,000 in FY21, compared to a loss of HK$202,914,000 in FY20, with total comprehensive expenses amounting to HK$397,998,000[22] - Basic and diluted loss per share increased to HK$1.26 from HK$0.53, a rise of 137.74%[8] - Basic loss per share for FY21 was HK$1.26, compared to HK$0.53 for FY20, with total comprehensive expenses approximately HK$396,025,000[32] - The Group reported a gross loss of HK$24,278,000 for the year, compared to a gross profit of HK$56,421,000 in FY20, primarily due to special discounts on residential apartments and the impact of travel restrictions on serviced apartments in Chongqing[48][49]. Assets and Liabilities - Net assets decreased by 52.34% to HK$189,128,000 from HK$396,804,000 in FY20[8] - Cash and cash equivalents dropped by 88.87% to HK$153,787,000 from HK$1,381,528,000 in FY20[8] - Current ratio decreased to 1.71 from 3.60 in FY20[11] - Gearing ratio increased to 15.38 from 9.76 in FY20[11] - As of 31 March 2021, the Group's total equity decreased by 52.3% to HK$189,128,000 (2020: HK$396,804,000), impacted by the loss attributable to owners and partially offset by an exchange gain of HK$124,084,000[55][56]. - The Group's cash and cash equivalents fell to HK$153,787,000 (2020: HK$1,381,528,000), with current assets at HK$670,556,000 (2020: HK$1,886,328,000) and a current ratio of 1.71 (2020: 3.60)[57][58]. - Total borrowings amounted to HK$2,908,705,000 (2020: HK$3,873,325,000), with a gearing ratio of 15.38 (2020: 9.76), indicating increased financial leverage[57][58]. Revenue Breakdown - The Group's revenue increased to HK$158,729,000 during FY21, up by HK$22,891,000 compared to the previous year, primarily driven by the property management and renovation businesses acquired in March and June 2020[22] - Property management revenue reached HK$26,249,000, up from HK$15,173,000 in FY20[35] - Renovation and decoration revenue was HK$62,394,000, compared to nil in FY20[35] - Hotel operations in Japan generated revenue of HK$8,033,000, down from HK$10,985,000 in FY20[38] - Revenue from the Chongqing Property was HK$62,053,000 in FY21, down from HK$109,680,000 in FY20[32] Impairment and Losses - The impairment loss on property, plant, and equipment was HK$149,920,000, and HK$52,124,000 on right-of-use assets, primarily due to uncertainties arising from COVID-19[22] - The gross loss from the property segment was HK$24,278,000, mainly due to special discounts on residential apartment sales under unfavorable market conditions[22] Strategic Focus and Future Plans - The Group plans to focus on monitoring financial performance and maximizing returns to generate stable income and lower finance costs[26] - Future strategies include continuous investments and acquisitions to enhance overall financial performance and diversify the portfolio[28] - The Group aims to monitor financial performance and improve management standards to generate stable income and lower finance costs[44] - The Group will actively seek more investment opportunities with promising outlooks[46] Corporate Governance - The Company has adopted a corporate governance statement of policy in line with the CG Code, ensuring high standards of corporate governance[112] - The Company has complied with all code provisions set out in the CG Code throughout the year ended 31 March 2021[113] - The Group's board is committed to managing business risks and enhancing transparency to protect stakeholders' interests[110] - The Company recognizes the importance of achieving high standards of corporate governance for the benefit of all stakeholders[110] - The Company has a structured approach to corporate governance, providing a solid foundation for accountability and risk management[112] Board Composition and Meetings - The Board comprises five executive Directors and three independent non-executive Directors, ensuring a balance of skills and experience[118] - Fourteen Board meetings were held during the year, facilitating discussions on overall strategy and financial performance[124] - The roles of Chairman and CEO are clearly defined and segregated to ensure independence and proper checks and balances[132] - The Audit Committee held three meetings during the year ended 31 March 2021, reviewing the annual results and interim results before submission to the Board[158] Risk Management - The Board has delegated the responsibility for internal controls and risk management to the management, which has established a process for identifying and managing significant risks[196] - The audit committee reviewed significant internal controls and risk management based on the going concern basis, ensuring adequate resources and employee qualifications in accounting and financial reporting functions[198] - Management has established procedures to identify, assess, and manage significant risks faced by the group under the supervision of the board[198]

Revenue and Profitability - Revenue for the six months ended September 30, 2020, was HK$75,123,000, a significant increase from HK$29,593,000 in the same period of 2019, representing a growth of 153%[9] - The gross loss for the period was HK$3,002,000, compared to a gross profit of HK$7,731,000 in the previous year, indicating a decline in profitability[9] - Loss before tax for the period was HK$133,762,000, compared to a loss of HK$93,710,000 in the same period last year, representing a deterioration of 43%[9] - The company reported a loss per share of HK$6.79, compared to HK$4.89 in the same period of 2019, indicating a worsening in per-share performance[9] - The Group reported a segment loss of HK$81,513,000 for the six months ended September 30, 2020, compared to a loss of HK$44,230,000 in the same period of 2019[67] - The unaudited consolidated loss attributable to equity holders for the six months ended September 30, 2020, was HK$133,936,000, compared to HK$93,276,000 for the same period in 2019, reflecting an increase in loss of approximately 43.7%[193] - Basic loss per share for the current period was 6.79 HK cents, up from 4.89 HK cents in the previous year, indicating a deterioration in earnings per share[193] Expenses and Financial Costs - Administrative expenses increased to HK$46,229,000 from HK$27,353,000, reflecting a rise of 69% year-over-year[9] - The financial costs for the period were HK$62,934,000, up from HK$46,564,000, indicating an increase of 35% year-over-year[9] - Interest expenses on unsecured borrowings amounted to HK$31,120,000 for the six months ended 30 September 2020, slightly down from HK$31,205,000 in 2019[166] Assets and Liabilities - As of September 30, 2020, total assets amounted to HK$3,189,036, a decrease from HK$4,217,549 as of March 31, 2020, reflecting a decline of approximately 24.4%[14] - The company's net current assets decreased significantly to HK$342,951 from HK$1,495,784, indicating a reduction of about 77%[14] - Total equity as of September 30, 2020, was HK$450,867, down from HK$470,481 as of March 31, 2020, representing a decline of approximately 4.3%[20] - The Group's total liabilities increased to HK$2,738,169 from HK$3,747,068, reflecting a decrease of approximately 26.9%[14] - Total bank and other borrowings as of September 30, 2020, amounted to HK$1,420,695,000, a decrease of 34.2% from HK$2,157,356,000 as of March 31, 2020[130] Cash Flow and Liquidity - The net cash used in operating activities for the six months ended September 30, 2020, was HK$22,665,000, compared to a net cash generated of HK$30,352,000 in the same period of 2019[33] - Cash and cash equivalents significantly decreased to HK$218,094 from HK$1,376,409, a decline of approximately 84.2%[14] - The cash and cash equivalents at the end of the period were HK$218,094,000, an increase from HK$40,750,000 at the end of the same period in 2019[33] - The Group's cash flow projections indicate sufficient working capital to meet financial obligations for the next twelve months from September 30, 2020[37] Acquisitions and Investments - The acquisition of Zhejiang Doof Property Management Services Co., Ltd. was completed on March 5, 2020, for a cash consideration of RMB500,000 (approximately HK$545,000)[40] - The acquisition of Wenzhou Junshang Decoration Company Limited was completed on June 4, 2020, for a total consideration of RMB 1, which has been accounted for as a business combination[180] - The acquisition of Doof Japan was agreed upon on July 14, 2020, with a consideration of JPY848,394,000 (approximately HK$60,575,000), to be satisfied by issuing 163,717,121 new shares at HK$0.37 per share[188] Strategic Focus and Future Plans - The Group's strategic focus remains on property development and management services, with plans for future market expansion and new product offerings[64] - The Chongqing Property is expected to become a new landmark in Yuzhong District, with ongoing development despite COVID-19 impacts, and is anticipated to generate steady income from serviced apartments and shopping mall leases[197][198] Taxation - No Hong Kong Profits Tax has been provided as no assessable profits were generated during the six months ended 30 September 2020[83] - The PRC Enterprise Income Tax is calculated at a rate of 25% on estimated assessable profits for the six months ended 30 September 2020[86]

Financial Performance - Revenue for FY20 decreased by 21.67% to HK$124,853,000 from HK$159,399,000 in FY19[9] - Gross profit increased by 2.49% to HK$63,039,000 compared to HK$61,509,000 in the previous year[9] - Loss before tax rose by 73.77% to HK$165,055,000 from HK$94,985,000 in FY19[9] - Net assets decreased by 39.30% to HK$470,481,000 from HK$775,091,000 in FY19[9] - Basic and diluted loss per share increased by 47.86% to HK(10.01) from HK(6.77) in FY19[9] - The loss attributable to owners of the Company increased from HK$128,976,000 in FY19 to HK$190,842,000 in FY20, representing an approximately 47.97% increase[16] - Revenue for FY20 was HK$124,853,000, a decrease of HK$34,546,000 or 21.67% compared to FY19 due to a reduction in the number of apartments sold[49] Profitability and Margins - Gross profit margin improved to 50.49% from 38.59% in FY19, an increase of 11.9 percentage points[12] - Gross profit increased by HK$1,530,000 or 2.49% to HK$63,039,000 in FY20, attributed to higher-margin apartment sales and increased property management fee income[50] - The gross profit margin improved from 38.59% in FY19 to 50.49% in FY20, mainly due to the sale of higher-margin apartment units[51] Liquidity and Financial Ratios - Cash and cash equivalents significantly increased by 740.21% to HK$1,376,409,000 from HK$163,818,000 in FY19[9] - Current ratio improved to 4.89 times from 1.91 times in FY19[12] - As of March 31, 2020, the Group's net current assets were HK$1,495,784,000, up from HK$341,119,000 in 2019, while cash and cash equivalents increased to HK$1,376,409,000 from HK$163,818,000[57] - The current ratio improved to 4.89 as of March 31, 2020, up from 1.91 in FY19, indicating enhanced liquidity[54] Debt and Gearing - Gearing ratio increased to 7.94 times from 3.01 times in FY19[12] - As of March 31, 2020, total equity decreased by 39.30% to HK$470,481,000, influenced by the loss attributable to owners and exchange losses[54] - The Group secured a new bank loan of RMB1,250,000,000 (approximately HK$1,362,500,000) at a fixed interest rate of 7% per annum, maturing on March 30, 2035[54] - As of March 31, 2020, the Group's total borrowings amounted to HK$3,736,597,000, an increase from HK$2,334,374,000 in 2019, resulting in a gearing ratio of 7.94 compared to 3.01 in 2019[57] Operational Developments - The revenue from the sale of residential apartments in the Chongqing Property amounted to HK$109,680,000, a decrease of HK$47,041,000 compared to the previous year[15] - The newly acquired property management business generated revenue of HK$15,173,000 during the year[15] - The redevelopment of the Chongqing Property is expected to be completed soon, including residential apartments, serviced apartments, and a shopping mall[17] - The Group's current strategy focuses on maximizing returns from the Chongqing Property to generate stable income and lower finance costs[25] - The Group expects long-term growth in property sales volume despite a slight decrease in FY20 due to the global environment and COVID-19[33] Corporate Governance - The Group's Board of Directors is committed to achieving high standards of corporate governance to manage business risks and protect stakeholders' interests[97] - The Company has complied with all code provisions set out in the Corporate Governance Code throughout the year ended March 31, 2020[99] - The Board maintains a balance of skills and experience appropriate for the Group's business requirements and objectives[107] - The Company has adopted a corporate governance statement of policy to guide the application of governance principles[98] - The Board oversees the Group's strategic decisions, internal control, risk management, and performance[105] Management and Personnel - The total staff cost for the Group was HK$46,151,000 for the year ended March 31, 2020, compared to HK$27,476,000 in 2019[62] - The Group had a total workforce of 220 employees as of March 31, 2020, significantly up from 61 in 2019[62] - Mr. Hu Xingrong has over 17 years of experience in corporate management, investment, and business development, currently serving as the chairman of Doof International Holding Group Limited[76] - Mr. Huang Xiaohai has over 31 years of experience in banking and finance, responsible for the overall implementation of the Company's strategies[77] - The Group's Chief Financial Officer, Mr. Cheng Haoliang, has extensive experience in financial management and corporate finance[93] Risk Management - The Group is responsible for the design and implementation of internal controls and risk management, covering financial reporting and operations[189] - The Audit Committee reviews significant internal controls and risk management processes on an ongoing basis[190] - The risk management systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement or loss[200] - Control procedures are established to safeguard assets against misappropriation and ensure compliance with relevant laws and regulations[200] - Ongoing and periodic monitoring of risks is performed to ensure appropriate internal control processes are in place[200]

Financial Performance - Revenue for the six months ended September 30, 2019, was HK$23,587,000, a decrease of 12.5% from HK$26,922,000 in the same period of 2018[8]. - Gross profit for the period was HK$5,576,000, slightly down from HK$5,635,000, resulting in a gross margin of approximately 23.6%[8]. - Loss before tax increased to HK$93,598,000 compared to a loss of HK$67,150,000 in the previous year, reflecting a 39.4% increase in losses[8]. - Loss attributable to equity holders of the Company was HK$93,164,000, up from HK$73,792,000, indicating a 26.3% increase in losses year-over-year[10]. - Total comprehensive loss for the period was HK$195,047,000, compared to HK$238,096,000 in the same period last year, showing a decrease of 18.1%[10]. - The company reported a basic and diluted loss per share of HK$4.89, compared to HK$3.87 in the previous year, representing a 26.3% increase in loss per share[8]. - The unaudited consolidated loss attributable to equity holders for the six months ended 30 September 2019 was HK$93,164,000, compared to HK$73,792,000 for the same period in 2018, representing an increase of approximately 26.3%[81]. - Basic loss per share for the current period was 4.89 HK cents, up from 3.87 HK cents in the previous year[81]. Expenses and Costs - Selling expenses rose significantly to HK$7,783,000 from HK$1,880,000, indicating a substantial increase in operational costs[8]. - Administrative expenses increased to HK$25,185,000 from HK$23,547,000, reflecting a 7% rise in overhead costs[8]. - Finance costs decreased to HK$46,463,000 from HK$49,940,000, a reduction of approximately 7.4%[8]. - The finance income decreased to HK$19,000 from HK$34,000 year-on-year, while finance costs increased significantly to HK$42,662,000 from HK$54,197,000, indicating a reduction in interest expenses[36]. - The depreciation of property, plant, and equipment increased to HK$617,000 from HK$386,000, marking a 60% increase year-on-year[38]. - The company capitalized HK$94,356,000 on qualifying assets, compared to HK$86,642,000 in the previous year, indicating a 8.5% increase[36]. Assets and Liabilities - As of September 30, 2019, non-current assets under construction amounted to HK$1,710,912, a decrease of 3.2% from HK$1,767,135 as of March 31, 2019[11]. - Current assets totaled HK$2,719,420, showing a slight increase from HK$2,702,629 as of March 31, 2019[11]. - Net current assets decreased to HK$181,037 from HK$340,793, reflecting a decline of 46.9%[11]. - Total equity as of September 30, 2019, was HK$579,695, down 25.2% from HK$774,742 as of March 31, 2019[12]. - The Group's total assets less current liabilities were HK$2,900,457, down from HK$3,043,422 as of March 31, 2019[11]. - The carrying amount of the investment properties under construction as of 30 September 2019 was approximately HK$1,710,912,000, down from HK$1,767,135,000 as of 31 March 2019, indicating a decrease of about 3.2%[51]. - Total assets less current liabilities amounted to HK$3,073,593,000, with an increase of HK$30,171,000 due to the adoption of HKFRS 16[24]. Cash Flow - The company reported a net cash generated from operating activities of HK$26,531, compared to a net cash used of HK$53,644 in the same period last year[15]. - Cash and cash equivalents at the end of the period were HK$38,092, down from HK$82,774 a year earlier, representing a decrease of 54%[15]. - The Group's cash and cash equivalents were HK$38,092,000, down from HK$163,248,000 as of March 31, 2019, with a current ratio of 1.4 compared to 1.9 previously[85]. Borrowings and Financing - As of September 30, 2019, the Group's borrowings amounted to HK$2,332,482,000, a slight decrease from HK$2,334,374,000 as of March 31, 2019[18]. - Approximately HK$44,190,000 of the borrowings will be due for repayment in the next twelve months, down from HK$73,030,000 as of March 31, 2019[18]. - The Group's unsecured borrowings amounted to approximately HK$510,960,000, an increase from HK$407,517,000 as of March 31, 2019, representing a growth of 25.3%[65]. - The effective interest rate for unsecured borrowings is 9% per annum for RMB borrowings and 8% per annum for HK$ borrowings[67]. - The Group has drawn down unsecured borrowings of RMB377,870,000 (approximately HK$415,657,000) as of September 30, 2019, compared to RMB294,150,000 (approximately HK$344,156,000) as of March 31, 2019, indicating a 28.5% increase[68]. Corporate Governance - The Company has complied with all code provisions of the Corporate Governance Code throughout the six months ended 30 September 2019[42]. - The audit committee, consisting of three independent non-executive Directors, has reviewed the unaudited interim results for the six months ended 30 September 2019[113]. - The Company has adopted a corporate governance statement of policy in line with the CG Code[42]. - The Company confirmed compliance with the Model Code for securities transactions by Directors throughout the reporting period[106]. Management and Personnel - Key management personnel compensation for the six months ended September 30, 2019, totaled HK$4,441,000 for short-term benefits, a decrease from HK$4,777,000 in the same period of 2018[70]. - The total workforce increased to approximately 170 employees as of September 30, 2019, from 61 employees as of March 31, 2019, with total staff costs of HK$17,929,000 for the current period[89]. Future Outlook - The redevelopment of the Chongqing Property is nearing completion, with residential apartments available for sale and serviced apartments under trial run[84]. - The Group expects to generate revenue from leasing serviced apartments in the current financial year and from the shopping mall in the next financial year, aiming for stable rental income thereafter[84]. - The Company is actively seeking investment opportunities to diversify revenue sources and create shareholder value[84]. - The Group plans to monitor the financial performance of the Chongqing Property operations and maximize returns to lower the gearing ratio and finance costs[84].