Financial Performance - Revenue for the six months ended September 30, 2021, increased by approximately 33.0% to HK$2,460,817,000 from HK$1,850,031,000 in the corresponding period last year[7] - Gross profit for the same period rose from HK$286,206,000 to HK$421,214,000[7] - Profit attributable to owners of the Company for the six months ended September 30, 2021, was HK$37,989,000, compared to HK$31,413,000 in the same period of 2020[7] - Earnings per share attributable to owners of the Company were HK$0.7 cent for the six months ended September 30, 2021, up from HK$0.6 cent in the previous financial period[7] - Operating profit decreased to HK$50,501,000, down 21% from HK$64,007,000 in the previous year[78] - Profit for the period was HK$36,881,000, compared to HK$30,958,000 in the same period of 2020, reflecting a 19% increase[78] - Total comprehensive income for the period was HK$57,060,000, a decrease of 60% compared to HK$142,405,000 in the same period last year[80] - Profit for the period attributable to owners of the Company was HK$37,989,000, up from HK$31,413,000, representing a 21% increase[80] Expenses and Costs - Other income, gains, and losses for the six months ended September 30, 2021, recorded losses of HK$87,606,000, compared to gains of HK$17,787,000 in 2020[7] - Selling and distribution costs increased by approximately 17.6% compared to the same period last year[7] - Administrative expenses for the six months ended September 30, 2021, increased by approximately 19.9% compared to the same period last year[7] - Selling and distribution costs increased to HK$238,757,000 from HK$202,985,000 year-on-year[78] - Administrative expenses rose to HK$44,350,000, compared to HK$37,001,000 in the previous year[78] - Financing costs decreased by approximately 6.7% to approximately HK$32.5 million, attributed to a decrease in borrowings for purchasing automobile inventories[51] Assets and Liabilities - Total assets increased to HK$4,283,876, up from HK$4,086,152, representing a growth of approximately 4.8% year-over-year[14] - Total liabilities rose to HK$1,533,796, compared to HK$1,426,856, indicating an increase of about 7.5%[14] - Net assets reached HK$2,750,080, reflecting a growth of 3.4% from HK$2,659,296[14] - Current ratio decreased slightly to 1.63 from 1.71, indicating a reduction in short-term liquidity[14] - Gearing ratio increased to 22.5%, up from 17.2%, suggesting a higher level of financial leverage[14] - Non-current assets totaled HK$2,482,756,000, an increase from HK$2,575,366,000 as of March 31, 2021[81] - Current assets increased to HK$1,801,120,000 from HK$1,510,786,000, marking a 19.2% rise[81] - Inventories rose significantly to HK$930,216,000, up from HK$696,224,000, indicating a 33.5% increase[81] - Total equity attributable to owners of the Company was HK$2,713,081,000, compared to HK$2,654,955,000, reflecting a growth of 2.2%[83] Market Trends and Outlook - China's luxury goods market is projected to grow, contributing €60 billion or 21% of the global market, making it the second largest after the US[16] - The luxury market in China accounts for over 35% of global luxury spending, with a rising trend expected[16] - The emergence of Gen Z and millennials as key consumers is reshaping the luxury market dynamics in China[16] - Economic growth in China is expected to slow to 5.5% in 2022 from an anticipated 8.2% in 2021, indicating potential challenges ahead[16] - The Group anticipates stable performance in automobile sales for the second half of the financial year[39] - The property management business is expected to continue declining due to tightening real estate policies in China and increased competition[43] Business Segments Performance - Rolls-Royce Motor Cars delivered 1,380 motor cars in Q1 2021, a 62% increase compared to the same period in 2020, surpassing the previous record set in 2019[22] - Bentley's sales increased by approximately 28.4% to HK$1,011.8 million, with 277 units sold, representing a 19.4% increase from 232 units sold last year[22] - Lamborghini recorded a 11.4% increase in unit sales to 49 units, with total sales revenue of approximately HK$180.0 million, up 26.7% from HK$142.1 million last year[22] - Revenue from after-sales services increased to approximately HK$45.0 million, a 9.2% rise compared to the previous year, but gross profit margin decreased from 45.9% to 32.1%[22] - Non-auto dealership division sales increased by approximately 24.5% to HK$187.1 million, compared to HK$150.3 million in the previous financial period[26] - Revenue from the property management business decreased by approximately 18.2% to HK$41.4 million, down from HK$50.6 million in the previous financial period[28] - The film business generated no revenue during the financial period due to delays caused by the COVID-19 Delta variant[29] Shareholder Information - No interim dividend was declared for the six months ended September 30, 2021[7] - The company did not recommend the payment of an interim dividend for the six months ended September 30, 2021, as it aims to reserve more capital for future opportunities[70] - The total number of shares under the New Scheme as of September 30, 2021, was 297,982,885, representing 10% of the issued share capital[72] Legal Matters - On September 9, 2021, the Plaintiff's action against the Company and the Secretary was dismissed by the High Court[66] - The Company received a writ of summons claiming damages of approximately HK$143 million, but the preliminary legal advice indicated that the claim lacked sufficient particulars[66]

Financial Performance - Revenue for the financial year ended 31 March 2021 increased by 31.4% from HK$3,443,430,000 to HK$4,525,762,000 compared with the last financial year[9] - Gross profit for this financial year increased by 23.6% from HK$559,885,000 to HK$691,753,000[9] - Profit attributable to owners of the Company for the financial year ended 31 March 2021 was HK$37,527,000, up from HK$30,283,000 in 2020[9] - Earnings per share attributable to owners of the Company were HK$0.7 cent for this financial year, compared with HK$0.6 cent in the last financial year[9] - The Group's revenue increased from HK$3,443.4 million in 2020 to HK$4,525.8 million in 2021, representing a growth of approximately 31.5%[24] - Gross profit rose from HK$559.9 million in 2020 to HK$691.8 million in 2021, marking an increase of about 23.5%[24] - Net profit attributable to owners increased to HK$37.5 million in 2021 from HK$30.3 million in 2020, reflecting a growth of approximately 23.5%[24] Expenses and Costs - Selling and distribution costs for this financial year increased by 22.0% compared with the same in the last financial year[9] - Administrative expenses for this financial year decreased by 9.6% compared with the same in the last financial year[9] - Other income, gains and losses for this financial year were losses of HK$51,230,000, compared to gains of HK$5,506,000 in 2020[9] - Finance costs decreased by approximately 21.4% from approximately HK$82.1 million to approximately HK$64.5 million, attributed to reduced borrowing for automobile inventories[60] Assets and Liabilities - Total assets grew to HK$4,086.2 million in 2021 from HK$3,597.1 million in 2020, an increase of about 13.6%[19] - Total liabilities decreased from HK$1,594.1 million in 2020 to HK$1,426.9 million in 2021, a reduction of approximately 10.5%[19] - The Group's total liabilities were approximately HK$2,659.3 million as of 31 March 2021, compared to approximately HK$2,002.9 million in the previous year[61] - The Group's cash at banks and in hand increased to approximately HK$246.5 million from approximately HK$116.0 million, mainly due to a decrease in inventory levels[61] Market and Business Segments - The Group's auto business remains the primary income driver, contributing approximately 90% of total revenue[24] - The ultra-luxury automobile distributorships of Bentley, Lamborghini, and Rolls-Royce recorded a revenue increase of approximately 35% to approximately HK$4,076 million, compared to approximately HK$3,016 million in the previous financial year[38] - Bentley achieved total sales of approximately HK$2,005 million, representing a 75% increase from approximately HK$1,146 million in the previous financial year, with 586 units sold, a 70% increase from 345 units[38] - Rolls-Royce sales rose to approximately HK$1,553 million, reflecting a 17% increase from approximately HK$1,326 million, with 233 units sold, a 13% increase from 207 units[38] - Lamborghini recorded a revenue increase of approximately 1% to approximately HK$440.8 million, with 130 units sold, a 13% increase from 115 units[40] Dividends and Share Capital - No dividend was declared for this financial year, consistent with 2020[9] - The company raised approximately HK$50 million from the issuance of 318,500,000 new ordinary shares at a price of HK$0.157 per share, fully utilized for the subscription of B&O Rights Shares[89] - As of March 31, 2021, the total number of shares issued by the Company is 5,471,953,447[164] - The company's distributable reserves amount to approximately HK$359,173,000, a decrease from HK$365,527,000 in 2020[134] Future Outlook and Challenges - The global semiconductor shortage poses a threat to the supply of automobiles by manufacturers, despite stable luxury car sales[104] - The financial and operational activities of the group have returned to a healthy status due to effective COVID-19 control measures in Mainland China[103] - The Group will adopt a prudent approach in its money lending business and will not increase investment amounts in the upcoming financial year[107] - The film investment segment is not expected to contribute substantially to the Group in the upcoming financial year[107] Corporate Governance - The board of directors includes both executive and independent non-executive members, with specific appointments and resignations noted[145] - The Company has received annual confirmations of independence from all Independent Non-executive Directors[150] - There are no significant transactions or contracts involving Directors with material interests during the financial year[150] - The Company has arranged appropriate liability insurance coverage for its directors and officers[159]

Financial Performance - Revenue for the six months ended September 30, 2020, increased by approximately 5.8% to HK$1,850,031,000 from HK$1,748,357,000 in the corresponding period last year[10]. - Gross profit for the same period decreased from HK$310,312,000 to HK$286,206,000, resulting in a gross profit margin decline from 17.7% to 15.5%[10][25]. - Profit attributable to owners of the Company for the six months ended September 30, 2020, was HK$31,413,000, down from HK$38,732,000 in the same period of 2019[13]. - Earnings per share attributable to owners of the Company were HK0.6 cent, compared to HK0.8 cent in the last financial period[13]. - Total comprehensive income for the period was HK$111,447, compared to a loss of HK$233,050 in 2019[161]. - Operating profit for the period was HK$64,007, a decline of 6.8% from HK$68,787 in 2019[159]. - Profit before income tax remained stable at HK$29,154, slightly up from HK$29,145 in the previous year[159]. Revenue Breakdown - Sales of automobiles contributed HK$1,607.8 million, accounting for 86.9% of total revenue, with a growth of 9.4% year-on-year[75]. - Bentley sales increased by approximately 84.8% to HK$787.9 million, with 232 units sold, a 74.4% increase compared to the previous year[35]. - Rolls-Royce sales decreased by approximately 10.5% to HK$677.8 million, with 104 units sold, a 12.6% decrease compared to the previous year[39]. - Lamborghini experienced a 50.4% drop in sales to approximately HK$142.1 million, with unit sales down 38.9% to 44 units[40]. - Revenue from after-sales services decreased by approximately 27.2% to HK$41.2 million, with gross profit margin declining from 52.7% to 45.9%[41]. - Non-auto dealership sales increased by approximately 1.8% to HK$150.3 million, with gross profit margin slightly decreasing from 35.8% to 35.0%[42]. Expenses and Costs - Selling and distribution costs decreased by approximately 3.4% compared to the corresponding period last year[11]. - Administrative expenses decreased by approximately 25.0% compared to the same period last year[12]. - Financing costs decreased by approximately 11.9% to HK$34.9 million, attributed to reduced borrowing for automobile inventories and lower interest expenses on lease liabilities[86]. - Staff costs for the six months ended September 30, 2020, amounted to approximately HK$24.3 million, down from HK$32.4 million for the same period in 2019[117]. - Employee costs for the six months ended September 30, 2020, were approximately HK$24.3 million, down from HK$32.4 million for the same period in 2019[119]. Assets and Liabilities - Total assets as of September 30, 2020, were HK$3,621,518,000, an increase from HK$3,597,058,000[23]. - Total liabilities decreased to HK$1,424,494,000 from HK$1,594,148,000[23]. - The Group's cash and cash equivalents increased to approximately HK$216.0 million as of September 30, 2020, compared to HK$116.0 million as of March 31, 2020[98]. - The Group's borrowings decreased by approximately 37.3% to HK$473.6 million as of September 30, 2020, down from HK$755.4 million as of March 31, 2020[101]. - The Group's inventories decreased by approximately 28.4% from HK$912.9 million as of March 31, 2020, to HK$654.0 million as of September 30, 2020[107]. Dividends and Share Capital - No interim dividend was declared for the six months ended September 30, 2020[13]. - The Group has resolved not to recommend the payment of an interim dividend for the six months ended September 30, 2020, to reserve more capital for future opportunities[149]. - The company completed a placing of 318,500,000 new ordinary shares at a price of HK$0.157, raising a total of HK$50,004,000[172]. - The total number of shares under the New Share Option Scheme as of September 30, 2020, was 297,982,885, representing 10% of the issued share capital[154]. Market Trends and Outlook - China's GDP grew by 4.9% in Q3 2020, with IMF predicting a 1.9% growth for the year and 8.2% for 2021[29]. - Chinese demand for luxury goods is projected to grow by up to 30% in 2020, driven by high-income consumers[31]. - The percentage of Chinese consumers making global luxury purchases is expected to rise from 40% to 50% over the next decade[33]. - The luxury market in China is witnessing a shift towards an omni-channel shopping experience, with online purchases increasing to 30%[31]. - The Group expects luxury auto supply to stabilize in the last quarter of FY2021 if the COVID-19 pandemic is effectively controlled[62]. Segment Information - The Group operates in three reportable segments: Auto dealership, Non-auto dealership, and Others, each managed separately due to differing resource and marketing needs[196][197]. - The Auto dealership segment includes sales of branded automobiles such as Bentley, Lamborghini, and Rolls-Royce, along with related after-sales services[196]. - The Non-auto dealership segment encompasses sales of branded watches, jewelry, fine wines, audio equipment, and other luxury goods[197]. - The Others segment provides property management services, catering services, property leasing services, and film-related businesses, including production and investment in films[200]. Accounting Policies and Changes - The Group's accounting policies were not significantly impacted by the new or amended HKFRSs effective from April 1, 2020[190]. - The Group has early adopted amendments to HKFRS 16 related to COVID-19 rent concessions, allowing for practical expedient accounting for qualifying concessions received during the interim reporting period[193]. - The definition of "material" has been aligned across all HKFRS Standards and the Conceptual Framework, incorporating supporting requirements in HKAS 1[190].

Financial Performance - Revenue for the financial year ended March 31, 2020, decreased by 7.6% from HK$3,724,845,000 to HK$3,443,430,000 compared to the previous financial year[9]. - Gross profit for this financial year decreased by 0.9% from HK$564,937,000 to HK$559,885,000[9]. - Other income, gains, and losses decreased by 93.9% from HK$90,634,000 to HK$5,506,000[9]. - Profit attributable to owners of the Company for the financial year was HK$30,283,000, down from HK$97,429,000 in 2019[10]. - Earnings per share attributable to owners of the Company were HK0.6 cent, compared to HK2.0 cents in the previous financial year[11]. - The Group's revenue decreased from HK$3,725 million to HK$3,443 million, representing a decline of approximately 7.6%[25]. - Gross profit for the financial year decreased slightly from HK$564.9 million to HK$559.9 million, a decrease of about 0.9%[25]. - Net profit attributable to owners was HK$30.3 million, down from HK$97.4 million in the previous financial year, indicating a decline of approximately 68.9%[25]. - The Group's revenue for the year ended 31 March 2020 was approximately HK$3,443.4 million, representing a decrease of approximately 7.6% compared to HK$3,724.8 million in the previous year[73]. Assets and Liabilities - Total assets decreased from HK$3,933,651,000 in 2019 to HK$3,597,058,000 in 2020[20]. - Net assets decreased from HK$2,373,194,000 in 2019 to HK$2,002,910,000 in 2020[20]. - The Group's total liabilities as of March 31, 2020, were approximately HK$1,594.1 million, compared to approximately HK$1,560.5 million as of March 31, 2019[88]. - The Group's borrowings as of March 31, 2020, were approximately HK$755.4 million, representing a decrease of approximately 13.6% from approximately HK$873.9 million as of March 31, 2019[104]. - The gearing ratio increased to approximately 37.7% as of March 31, 2020, compared to approximately 36.8% as of March 31, 2019[105]. - Cash at banks and in hand as of March 31, 2020, was approximately HK$116.0 million, a decrease from approximately HK$185.2 million as of March 31, 2019[89]. Business Segments - The auto business remained the major income driver, accounting for approximately 87.6% of the Group's total business[25]. - Revenue from ultra-luxury automobile distributorships decreased by approximately 8.8% to HK$3,016 million compared to HK$3,308 million in the previous year[38]. - Lamborghini recorded a significant sales growth of approximately 71%, with total sales reaching HK$437.6 million compared to HK$256.2 million in the previous financial year[38]. - A total of 115 units of Lamborghini were sold, representing an increase of approximately 117% compared to 53 units sold in the previous financial year[38]. - Bentley's sales decreased by approximately 18% to HK$1,146 million, down from HK$1,397 million in the previous financial year, with unit sales dropping by 21% to 345 vehicles[40][42]. - Rolls-Royce recorded a sales decline of approximately 14% to HK$1,326 million, while unit sales increased by approximately 2% to 207 vehicles[44][49]. Market Trends - The luxury goods market in China is expected to recover, with Chinese consumers projected to account for nearly 50% of the market by 2025[26]. - Online luxury purchases have increased during the crisis, potentially representing up to 30% of the market by 2025[26]. - The luxury car market in China saw a year-on-year decline of 16.4% to 795,000 units in the first four months of 2020 due to the pandemic[31]. Expenses and Costs - Selling and distribution costs increased by approximately 0.3%, mainly due to higher depreciation for property, plant, and equipment[80]. - Administrative expenses decreased by approximately HK$65.8 million, attributed to the absence of expenses related to acquisitions and a decrease in amortization of intangible assets[81]. - The gross profit margin for after-sales services decreased from approximately 44.3% to 41.6%, reflecting a decline of about 6.5% in revenue[46][50]. Future Outlook - The Group expects a short-term impact on luxury car sales due to COVID-19, with recovery anticipated in the second half of FY2021[130]. - Sales of B&O products are expected to see a moderate drop in the first half of FY2021, with a return to normal in the second half[131]. - The pandemic has caused significant delays in film investments and projects, with expectations that this segment will not contribute significantly to the Group in the upcoming fiscal year[135]. Corporate Governance - The Directors do not recommend the payment of a final dividend for the year ended March 31, 2020, in order to reserve more capital for business operations and development[140]. - The Company has received annual confirmations of independence from all Independent Non-executive Directors, affirming their independence[185]. - The Company has arranged appropriate directors' and officers' liability insurance coverage for its directors and officers[195].

Financial Performance - Revenue for the six months ended September 30, 2019, decreased by approximately 1% to HK$1,748,357,000 from HK$1,759,937,000 in the corresponding period last year[10]. - Gross profit increased from HK$244,441,000 to HK$310,312,000 for the same period, indicating a significant improvement[11]. - Profit attributable to owners of the Company rose to HK$38,732,000 compared to HK$9,310,000 in the previous year, reflecting a strong performance[13]. - Earnings per share attributable to owners of the Company increased to HK$0.8 cent from HK$0.2 cent in the last financial period[13]. - Operating profit increased significantly to HK$68,787, compared to HK$21,024 in the same period of 2018, marking a growth of 226%[133]. - Profit for the period attributable to owners of the Company was HK$35,281, a substantial increase from HK$7,776 in the prior year[140]. - Total comprehensive income for the period was a loss of HK$197,769, compared to a loss of HK$172,689 in the same period of 2018[139]. Assets and Liabilities - Total assets as of September 30, 2019, were HK$3,995,386,000, up from HK$3,933,651,000 in the previous interim period[21]. - Total liabilities increased to HK$1,842,805,000 from HK$1,560,457,000, indicating a rise in financial obligations[21]. - Cash and cash equivalents decreased to approximately HK$143.3 million, primarily due to repayment of borrowings during the financial period[97]. - The Group's borrowings decreased by approximately 14.6% to HK$746.3 million as of September 30, 2019, from HK$873.9 million as of March 31, 2019, mainly due to repayment of borrowings[101]. - The gearing ratio decreased to approximately 34.7% as of September 30, 2019, compared to 36.8% as of March 31, 2019[102]. - Current assets as of 30 September 2019 totaled HK$2,212,260, an increase from HK$2,028,449 as of 31 March 2019[145]. - Net current assets decreased to HK$598,489 from HK$695,856 as of 31 March 2019[147]. Revenue Breakdown - Revenue from the automobile segment decreased by 4.2% to HK$1,526.8 million, primarily due to lower sales of automobiles and after-sales services[73]. - Revenue from after-sales services decreased to approximately HK$56.6 million, a decline of about 6.9% compared to the same period last year[45]. - Revenue from the audio equipment division increased by approximately 1.05% to HK$116.1 million[51]. - Revenue from property management and catering services surged by approximately 217% to approximately HK$74 million[57]. - Sales performance of the non-auto division increased by approximately 3.1% to approximately HK$147.6 million[48]. Market Conditions - China's GDP growth slowed to a record low of 6.2% in Q2 2019, impacting the overall economic environment[25]. - The economic growth rate in China fell to a historical low of 6.2% in Q2 2019, down from 6.4% in Q1 2019[27]. - The Chinese luxury goods market is expected to grow by 18-20% year-over-year, driven by local consumer spending[31][33]. - Chinese luxury spending is projected to double to 1.2 trillion renminbi by 2025, contributing 65% of global market growth[32][34]. - The global personal luxury goods market is expected to grow by 4-6% in 2019, reaching €271-276 billion, with strong performance driven by Chinese consumers[31][33]. Cost Management - The gross profit margin improved to 17.7% from 13.9% in the previous interim period, showcasing better cost management[22]. - Selling and distribution costs and administrative expenses decreased by approximately 3.8% compared to the same period last year, reflecting operational efficiency[12]. - Selling and distribution costs increased by approximately 7.3%, mainly due to additional consumption levy and operating expenses from new businesses[83]. - Financing costs surged by approximately 205% from HK$13.0 million to HK$39.6 million, driven by increased borrowing for property acquisitions and lease liabilities[85]. Investments and Acquisitions - The Group acquired 6,519,358 shares in Bang & Olufsen A/S for approximately HK$494 million, representing a 15.09% stake[60]. - As of September 30, 2019, the Group's investment in Bang & Olufsen represented approximately 6.34% of total assets[61]. - The share price of Bang & Olufsen decreased by approximately 33% during the six-month period ended September 30, 2019[65]. Dividends and Shareholder Returns - No interim dividend was declared for the six months ended September 30, 2019, consistent with the previous year[14]. - The Group did not recommend the payment of an interim dividend for the six months ended September 30, 2019, as it aims to reserve more capital for future opportunities[121]. Employee and Operational Metrics - Staff costs for the six months ended September 30, 2019, amounted to approximately HK$32.4 million, compared to HK$26.3 million for the same period in 2018[115]. - As of September 30, 2019, the Group had 591 employees, an increase from 530 employees as of March 31, 2019[115]. - The total number of shares under the new share option scheme as of September 30, 2019, was 297,982,885 shares, representing 10% of the issued share capital[124]. Cash Flow and Financial Position - Net cash generated from operating activities for the six months ended 30 September 2019 was HK$196,521,000, an increase of 77.8% compared to HK$110,503,000 in 2018[155]. - Net cash used in investing activities amounted to HK$77,618,000, a significant decrease from HK$430,391,000 in the same period last year[155]. - The company reported a net decrease in cash and cash equivalents of HK$151,221,000 for the period, compared to a net increase of HK$287,666,000 in the previous year[155]. Accounting Changes - The impact of adopting HKFRS 16, Leases, is summarized in the interim financial report, indicating changes in accounting policies[166]. - The adoption of HKFRS 16 resulted in the recognition of right-of-use assets amounting to HK$251,208,000 for property, plant, and equipment[174]. - Right-of-use assets for investment properties were reported at HK$478,990,000[177]. - Lease liabilities recognized as of April 1, 2019, totaled HK$479,401,000[189]. - The Group applied the cumulative effect approach for HKFRS 16, adjusting the opening balance of retained earnings without restating comparative information[181].

Financial Performance - Revenue for the financial year ended March 31, 2019, increased by 28.8% from HK$2,893,052,000 to HK$3,724,845,000[10] - Gross profit for the financial year increased by 41.6% from HK$399,025,000 to HK$564,937,000[10] - Other income for the financial year rose by 8.4% from HK$83,576,000 to HK$90,634,000[10] - Profit attributable to owners of the Company for the financial year was HK$97,429,000, down from HK$664,565,000 in 2018[12] - Earnings per share attributable to owners of the Company were HK2.0 cents, compared to HK14.9 cents in the last financial year[12] - The net profit attributable to owners decreased significantly to HK$97.4 million from HK$664.6 million, indicating a decline of approximately 85.3%[22] - The Group's revenue for the year ended 31 March 2019 was approximately HK$3,724.8 million, representing an increase of approximately 28.8% compared to HK$2,893.1 million in the previous year[55] - The gross profit increased by approximately 41.6% to approximately HK$564.9 million, up from approximately HK$399.0 million in the previous year, primarily due to higher gross profit from automobile sales[59] Assets and Liabilities - Total assets as of March 31, 2019, were HK$3,933,651,000, compared to HK$3,907,033,000 in 2018[17] - Total liabilities increased significantly to HK$1,560,457,000 from HK$883,853,000 in 2018[17] - Net assets decreased to HK$2,373,194,000 from HK$3,023,180,000 in the previous year[17] - As of 31 March 2019, the Group's total assets were approximately HK$3,933.7 million, financed by total equity of approximately HK$2,373.2 million and total liabilities of approximately HK$1,560.5 million[70] - The Group's cash at banks and in hand increased to approximately HK$185.2 million as of March 31, 2019, compared to approximately HK$155.7 million as of March 31, 2018, primarily due to increased operating profit and borrowings[73][75] - The Group's borrowings rose by approximately 53.9% to approximately HK$873.9 million as of March 31, 2019, up from approximately HK$567.7 million as of March 31, 2018, mainly due to new borrowings for the acquisition of Wenfu[85][89] - The gearing ratio increased to approximately 36.8% as of March 31, 2019, compared to approximately 18.8% as of March 31, 2018[86][90] Revenue Sources - Sales of automobiles contributed HK$3,193.7 million, accounting for 85.7% of total revenue, with an increase of approximately 29.3% from the previous year's HK$2,469.5 million[56] - Revenue from ultra-luxury automobile distributorships increased approximately 29.3% to approximately HK$3.194 billion compared to HK$2.470 billion in the previous financial year[37] - Rolls-Royce sales reached approximately HK$1.540 billion, representing a 47% increase from HK$1.046 billion, with 203 units sold, up approximately 20% from 169 units[37] - Lamborghini recorded a sales increase of approximately 98%, with revenue of approximately HK$256.2 million and 53 units sold, an increase of approximately 83% from 29 units[37] - Bentley's sales increased approximately 8% to approximately HK$1.397 billion, with 437 units sold, representing a 39% increase from 314 units[40] Expenses and Costs - Selling and distribution costs and administrative expenses increased by 49.5% compared to the previous financial year[10] - Selling and distribution costs increased by approximately 29.2%, mainly due to higher marketing expenses, depreciation, and staff costs[62] - Administrative expenses rose by approximately HK$89.9 million, primarily due to costs related to acquisitions and increased amortization of intangible assets[67] - Finance costs increased by approximately 152.3% from HK$16.2 million to approximately HK$41.0 million, mainly due to increased borrowing for property acquisitions[64] Market Trends - China's GDP growth in 2018 was 6.6%, down 0.2 percentage points from the previous year, with a target growth of 6-6.5% for 2019[20] - Spending on luxury goods in China is expected to increase by 10% in 2019, down from 20% in the previous two years[25] - The global luxury market was valued at €920 billion in 2018, with a projected growth to €1.256 trillion by 2025, at an average annual growth rate of 4.6%[27] - The resale market for luxury goods is currently valued at €22 billion and is expected to grow at a rate of 12% per annum[31] Acquisitions and Investments - The Group completed the acquisition of a property management business for a total consideration of RMB428 million, which is expected to provide stable income and profits in the long run[108] - In January 2019, the Group acquired Cheer Summit Investment Limited, which operates in the movie industry in China, issuing 340 million new shares at HK$0.3 each as part of the transaction[109] - The Group recorded approximately HK$301.8 million in investment in films as of March 31, 2019, resulting from the acquisition of Cheer Summit Investment Limited[84][88] Dividends and Shareholder Information - No dividend was declared for the financial year, consistent with the previous year[12] - The company does not recommend the payment of any dividend for the financial year ended March 31, 2019[144] - The distributable reserves of the company amounted to approximately HK$370,299,000, down from HK$475,891,000 in 2018[147] - The company aims to reserve more funds for operating and developing existing businesses, hence the decision against dividend distribution[144] Employee and Management Information - The Group's employee count increased to 530 as of March 31, 2019, up from 474 in the previous year, with total staff costs amounting to approximately HK$65.3 million, compared to approximately HK$44.4 million in the prior year[98] - The Group's management emphasized the importance of employee training and performance appraisal to sustain competitiveness and support future advancement[98] Auditor and Compliance - The Group's independent auditor issued a qualified opinion on the consolidated financial statements for the year ended March 31, 2019, primarily related to the investment in B&O, which included a loss of approximately HK$12.8 million and a gain on deemed disposal of approximately HK$585.6 million in the previous year[110] - The Audit Committee has reviewed the management's position regarding the qualified opinion issued by auditors and found no disagreement, recommending the same to the Directors for approval[115]