[Annual Results Announcement](index=1&type=section&id=Annual%20Results%20Announcement) The group reported a revenue decline and a shift from profit to loss for the year ended March 31, 2023, alongside a decrease in total assets and an increase in gearing ratio [Consolidated Statement of Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the year ended March 31, 2023, the Group's revenue decreased by 7.6% to HKD 3.998 billion, gross profit fell by 32.5% to HKD 578 million, and the company recorded a loss of HKD 53.62 million compared to a profit of HKD 31.51 million in the prior year Consolidated Statement of Comprehensive Income Summary (Thousand HKD) | Indicator | 2023 | 2022 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 3,997,656 | 4,324,487 | -7.6% | | Gross Profit | 578,128 | 856,432 | -32.5% | | Operating Profit | 36,416 | 82,267 | -55.7% | | (Loss)/Profit Before Income Tax | (59,852) | 9,619 | - | | (Loss)/Profit for the Year | (53,623) | 31,514 | - | | (Loss)/Profit Attributable to Owners of the Company | (53,127) | 34,052 | - | Per Share (Loss)/Earnings | Indicator | 2023 | 2022 | | :--- | :--- | :--- | | Basic (Loss)/Earnings Per Share | (15.5) HK cents | 10.0 HK cents | | Diluted (Loss)/Earnings Per Share | (15.5) HK cents | 10.0 HK cents | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2023, the Group's total assets decreased by 15.7% to HKD 3.986 billion, total liabilities were HKD 1.758 billion, and net assets were HKD 2.228 billion, with the gearing ratio increasing to 45.2% Consolidated Statement of Financial Position Summary (Thousand HKD) | Indicator | 2023 | 2022 | | :--- | :--- | :--- | | Non-current Assets | 2,253,825 | 2,693,652 | | Current Assets | 1,732,135 | 2,034,032 | | **Total Assets** | **3,985,950** | **4,727,684** | | Non-current Liabilities | 630,710 | 642,553 | | Current Liabilities | 1,127,330 | 1,359,808 | | **Total Liabilities** | **1,758,040** | **2,002,361** | | **Total Equity** | **2,227,920** | **2,725,323** | - As of March 31, 2023, the Group's gearing ratio (total borrowings and convertible bonds divided by total equity) increased to approximately **45.2%** from approximately 39.4% as of March 31, 2022[246](index=246&type=chunk) [Notes to Financial Statements](index=6&type=section&id=Notes%20to%20Financial%20Statements) This section provides detailed breakdowns of the Group's segment performance, revenue sources, changes in financial assets, and dividend policy [Segment Information](index=10&type=section&id=4.%20Segment%20Information) The Group's three segments are automobile distribution, non-automobile distribution, and property management and others, with automobile distribution remaining the primary revenue source at 87.5% of total revenue, while its segment result declined by 47.3% to HKD 231 million Segment Results (Thousand HKD) | Segment | 2023 | 2022 | | :--- | :--- | :--- | | **Automobile Distribution** | | | | Revenue | 3,497,614 | 3,800,194 | | Result | 230,559 | 437,642 | | **Non-Automobile Distribution** | | | | Revenue | 422,022 | 437,458 | | Result | (63,376) | (75,046) | | **Property Management and Others** | | | | Revenue | 78,020 | 86,835 | | Result | (40,252) | (202,461) | [Revenue](index=12&type=section&id=5.%20Revenue) Total revenue for the year decreased by 7.6% to HKD 3.998 billion, primarily due to an 8.2% decline in automobile sales to HKD 3.404 billion, while after-sales and property management services saw slight increases Revenue by Product or Service Line (Thousand HKD) | Revenue Source | 2023 | 2022 | | :--- | :--- | :--- | | Automobile Sales | 3,404,431 | 3,709,351 | | Other Goods Sales | 422,022 | 437,458 | | Provision of After-sales Services | 93,183 | 90,843 | | Provision of Property Management Services | 1,561 | 1,059 | | Interest Income from Lending Services | 1,942 | 5,652 | | Provision of Property Leasing Services | 74,517 | 80,124 | | **Total** | **3,997,656** | **4,324,487** | [Financial Assets at Fair Value Through Other Comprehensive Income](index=24&type=section&id=15.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) As of March 31, 2023, financial assets at fair value through other comprehensive income significantly decreased to approximately HKD 158 million from HKD 320 million, mainly due to a decline in the market price of shares held in Bang & Olufsen A/S - The fair value of the Group's listed equity securities decreased from **HKD 320 million** to **HKD 158 million**, primarily invested in Denmark-listed Bang & Olufsen A/S[113](index=113&type=chunk) - These equity investments are designated as at fair value through other comprehensive income because the Group considers them strategic investments[99](index=99&type=chunk) [Dividends](index=26&type=section&id=19.%20Dividends) The Board did not recommend a final dividend for the year ended March 31, 2023, nor were any interim dividends distributed, to retain funds for existing business operations and development - The Company did not pay, declare, or propose any dividends for the years ended March 31, 2022, and 2023[146](index=146&type=chunk)[235](index=235&type=chunk) [Management Discussion and Analysis](index=27&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's insights into the Group's operational performance, strategic initiatives, and financial position, highlighting key drivers and future outlook [Chairman's Statement](index=27&type=section&id=Chairman%27s%20Statement) The Chairman's Statement highlights a revenue decline from approximately HKD 4.32 billion to HKD 4 billion and a shift from net profit to a loss attributable to owners of approximately HKD 53.1 million, while expressing confidence in the long-term growth potential of China's luxury market Performance Overview (HKD) | Indicator | Current Fiscal Year | Previous Fiscal Year | | :--- | :--- | :--- | | Revenue | Approx. 3,997,700,000 | Approx. 4,324,500,000 | | Gross Profit | Approx. 578,100,000 | Approx. 856,400,000 | | (Loss)/Net Profit Attributable to Owners | Approx. (53,100,000) | Approx. 34,100,000 | - The report cites research from Bain, PwC, and McKinsey, forecasting that China's luxury market will gradually recover and continue to grow, reaching a market size of **RMB 816 billion** by 2025, accounting for approximately **25%** of the global market share[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) [Business Review](index=29&type=section&id=Business%20Review) This section reviews the performance of each business segment, including automobile distribution, non-automobile distribution, other operations, and equity investments, detailing revenue changes and key operational highlights [Automobile Distribution](index=29&type=section&id=Automobile%20Distribution) Automobile distribution revenue decreased by 8.0% to approximately HKD 3.5 billion, with Lamborghini sales growth offset by declines in Bentley and Rolls-Royce, leading to a 42% drop in overall gross profit from car sales due to rising costs and falling average selling prices Ultra-Luxury Automobile Brand Sales Performance | Brand | Current Fiscal Year Sales Revenue (HKD) | Year-on-Year Change | Sales Volume (Units) | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | Lamborghini | Approx. 408 million | +10.6% | 111 | +19.4% | | Bentley | Approx. 1.587 billion | -7.0% | 455 | +2.9% | | Rolls-Royce | Approx. 1.409 billion | -13.8% | 202 | -10.2% | - After-sales service revenue increased by approximately **2.6%**, with gross profit margin significantly rising from **33.4%** to **50.8%**[127](index=127&type=chunk) [Non-Automobile Distribution](index=30&type=section&id=Non-Automobile%20Distribution) Non-automobile distribution revenue decreased by 3.5% to approximately HKD 422 million, with gross profit margin falling from 30.3% to 24.1% primarily due to increased inventory write-downs of approximately HKD 28 million, while Bang & Olufsen was the top contributor - Non-automobile distribution segment sales revenue decreased by **3.5%** from approximately **HKD 437.5 million** to approximately **HKD 422 million**[128](index=128&type=chunk) - Gross profit margin decreased from **30.3%** to **24.1%**, primarily due to increased inventory write-downs[156](index=156&type=chunk) - To expand its business, the Group collaborated with Chuanjiu Group to produce its own brand, "Longquan 1979"[157](index=157&type=chunk) [Other Businesses](index=31&type=section&id=Other%20Businesses) Other businesses revenue decreased by 10.2% to approximately HKD 78 million, with property management revenue down 6.3% due to reduced sub-lease income, while film and TV investment generated no revenue and faced legal issues, and lending interest income declined with ongoing default lawsuits - Property management business revenue decreased by **6.3%** to approximately **HKD 76.1 million**, with impairment provisions made for overdue sub-lease receivables[132](index=132&type=chunk) - Investment in film and television programs generated no revenue this year, and legal proceedings have commenced due to the producer's failure to repay[159](index=159&type=chunk) - Lending business interest income was approximately **HKD 1.9 million** (last year: HKD 5.7 million), with both loans in default and subject to legal proceedings[160](index=160&type=chunk) [Equity Investments](index=32&type=section&id=Equity%20Investments) The Group's 11.45% stake in B&O saw its share price drop by approximately 49.8%, significantly reducing the investment's book value with no dividends received, while the acquisition of a 2.97% stake in New Idea Group is seen as an opportunity to expand into high-end cigar and wine lounge club businesses - The Group holds **14,059,347** B&O shares, representing approximately **11.45%** of its total issued shares[136](index=136&type=chunk) - B&O's share price decreased from **DKK 19.35** to **DKK 9.72** per share, a decline of approximately **49.8%**[194](index=194&type=chunk) - The Group acquired **2,670,000** shares in New Idea Group, representing approximately **2.97%** of its shareholding[195](index=195&type=chunk)[164](index=164&type=chunk) [Recent Developments and Prospects](index=34&type=section&id=Recent%20Developments%20and%20Prospects) The Group maintains a cautious outlook, expecting stable automobile sales but facing downward pressure on profitability, a moderate decline in B&O product sales, continued inventory reduction in other non-automobile distribution, ongoing challenges in property management, and no new expansion or investment plans for lending and film businesses - The automobile business faces challenges from global economic uncertainty and a slower-than-expected economic recovery in China, with anticipated downward pressure on profitability[140](index=140&type=chunk) - In non-automobile distribution, B&O product sales are expected to decline moderately, while the watches, jewelry, and fine wine businesses will continue to seek opportunities to reduce inventory[197](index=197&type=chunk) - The property management business is expected to remain challenging; there are no new expansion or investment plans for the lending and film businesses in the next fiscal year[167](index=167&type=chunk) [Financial Review](index=35&type=section&id=Financial%20Review) This fiscal year saw revenue decline by 7.6% to HKD 3.998 billion due to exchange rate fluctuations and pandemic-affected auto sales, gross profit fell by 32.5% with margin dropping to 14.5%, finance costs rose by 32.5%, impairment losses were recorded on receivables, inventory turnover days increased to 139, and the gearing ratio rose to 45.2% Financial Metrics Changes | Indicator | 2023 Fiscal Year | 2022 Fiscal Year | Change | | :--- | :--- | :--- | :--- | | Revenue | HKD 3.998 billion | HKD 4.325 billion | -7.6% | | Gross Profit | HKD 578 million | HKD 856 million | -32.5% | | Gross Profit Margin | 14.5% | 19.8% | -5.3pp | | Finance Costs | HKD 96.3 million | HKD 72.6 million | +32.5% | | Inventory Turnover Days | 139 days | 109 days | +30 days | | Gearing Ratio | 45.2% | 39.4% | +5.8pp | - Impairment losses of approximately **HKD 12.7 million** were recorded on loans and interest receivable, and approximately **HKD 5.9 million** on trade receivables[171](index=171&type=chunk)[174](index=174&type=chunk) - As of March 31, 2023, the Group had pledged assets totaling approximately **HKD 1.67 billion** to secure bank financing[221](index=221&type=chunk) [Significant Events](index=42&type=section&id=Significant%20Events) This section details key corporate actions and events, including a significant acquisition, ongoing legal proceedings due to loan defaults, and the termination of a proposed share placement [Significant Acquisition](index=42&type=section&id=Significant%20Acquisition) In January 2023, the Group acquired an additional 26.1% equity interest in Beijing Wenfuxintiandi Property Co., Ltd. for RMB 81.56 million, increasing its stake to 96.5% in the company whose primary asset is a property in Chaoyang District, Beijing - The Group's indirect wholly-owned subsidiary agreed to acquire a **26.1%** equity interest in Beijing Wenfuxintiandi Property Co., Ltd. for a consideration of **RMB 81.56 million**[223](index=223&type=chunk) - Upon completion of the acquisition, the Group's shareholding in the target company increased to **96.5%**[252](index=252&type=chunk) [Borrower Default on Loan Agreements](index=42&type=section&id=Borrower%20Default%20on%20Loan%20Agreements) Borrowers of two loans, totaling HKD 58 million and HKD 32 million respectively, defaulted on principal and interest repayments, leading the Group to initiate legal proceedings against both borrowers and their guarantors, with one case restarting after a failed settlement and the other proceeding to judgment enforcement - For the first loan of **HKD 58 million**, the borrower failed to repay on the due date; although a settlement was reached, legal proceedings have been re-initiated due to non-fulfillment by the counterparty[225](index=225&type=chunk)[256](index=256&type=chunk) - For the second loan of **HKD 32 million**, the borrower failed to repay on the due date; the Group has obtained a judgment against the borrower and guarantor and is currently enforcing it[258](index=258&type=chunk)[230](index=230&type=chunk) [Proposed Placing of New Shares and Its Termination](index=44&type=section&id=Proposed%20Placing%20of%20New%20Shares%20and%20Its%20Termination) The company entered a placing agreement in September 2022 to place up to 538 million new shares, aiming to raise approximately HKD 49.1 million net, but the placing was terminated on October 19, 2022, by mutual agreement due to a key placee requiring more time for legal advice - The Company originally planned to place up to **538 million** new shares at **HKD 0.093** per share, with an expected net proceeds of approximately **HKD 49.1 million**[232](index=232&type=chunk) - The Company and the placing agent mutually agreed to terminate the placing due to a key placee requiring more time and the uncertainty of completion time[233](index=233&type=chunk) [Corporate Governance and Other Information](index=46&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section outlines the Group's adherence to corporate governance standards, including a noted deviation regarding the Chairman and CEO roles, and provides details on the upcoming Annual General Meeting [Corporate Governance Practices](index=46&type=section&id=Corporate%20Governance%20Practices) The Group is committed to high corporate governance standards, complying with the Listing Rules' Corporate Governance Code during the reporting year, with the only deviation being Mr. Zheng Haojiang's dual role as Chairman and CEO, which the Board believes enhances decision-making efficiency - The Group has complied with the Corporate Governance Code throughout the year ended March 31, 2023, with the exception of Code Provision C.2.1[267](index=267&type=chunk) - Mr. Zheng Haojiang serves concurrently as the Chairman of the Board and Chief Executive Officer, an arrangement the Board believes ensures consistent leadership and decision-making efficiency, and will be reviewed periodically[237](index=237&type=chunk) [Annual General Meeting and Closure of Register of Members](index=47&type=section&id=Annual%20General%20Meeting%20and%20Closure%20of%20Register%20of%20Members) The upcoming Annual General Meeting is scheduled for September 5, 2023, at 4:30 PM, with the register of members to be closed from August 31 to September 5, 2023, to determine eligibility for attendance and voting - The Annual General Meeting is scheduled for **September 5, 2023, at 4:30 PM**[1](index=1&type=chunk) - The register of members will be closed from **August 31 to September 5, 2023** (both dates inclusive)[2](index=2&type=chunk)

Financial Performance - Revenue for the six months ended September 30, 2022, decreased by approximately 13.7% from HK$2,460,817,000 to HK$2,123,602,000 compared to the same period last year[8]. - Gross profit for the same period decreased from HK$421,214,000 to HK$337,233,000, with a gross profit margin of 15.9%[8][12]. - Profit attributable to owners of the Company for the six months ended September 30, 2022, was HK$6,934,000, down from HK$37,989,000 in the corresponding period of 2021[8]. - Earnings per share attributable to owners of the Company were HK$0.1 cent for the six months ended September 30, 2022, compared to HK$0.7 cent in the last financial period[8]. - Total comprehensive income for the period was HK$ (422,879,000), a decrease from HK$ 57,060,000 in the previous year, reflecting a significant decline[123]. - Profit for the period was HK$3,484,000, a significant decrease from HK$36,881,000 in 2021[121]. - The company reported a profit for the period of HK$6,934,000, despite the overall comprehensive income loss[132]. Revenue Breakdown - The automobile segment generated revenue of HK$1,825.1 million, accounting for 85.9% of total revenue, a decrease of 16.4% from HK$2,184.4 million in the previous year[57]. - Revenue from after-sales services increased to approximately HK$46.4 million, up about 3.2% from the previous period, with gross profit margin rising from approximately 32.1% to 47.6%[34]. - Non-auto dealership sales performance increased by approximately 8.7% to about HK$203.3 million, compared to HK$187.1 million in the previous period[35]. - Revenue from the others division, including property management and film investments, rose by approximately 9.9% to about HK$48.8 million, compared to HK$44.4 million in the previous period[42]. - The Group's total revenue from external customers was HK$2,123,602,000, with HK$1,871,507,000 from the auto dealership segment and HK$203,320,000 from the non-auto dealership segment[156]. Expenses and Costs - Selling and distribution costs decreased by approximately 7.2% compared to the same period last year[8]. - Administrative expenses increased by approximately 5.3% compared to the same period last year[8]. - Finance costs increased by approximately 49.8% to approximately HK$48.7 million, driven by increased borrowings for automobile inventory purchases and property acquisitions[70]. - Staff costs for the six months ended 30 September 2022 amounted to approximately HK$42.6 million, compared to approximately HK$27.4 million for the same period in 2021, reflecting a significant increase[85]. - The impairment of loan receivables and loan interest receivables was recorded at HK$7,665,000, indicating a new expense not present in the previous year[174]. Assets and Liabilities - Total assets decreased to HK$4,063,355, down from HK$4,727,684 in FY2022, representing a decline of approximately 14%[15]. - Total liabilities decreased to HK$1,778,796, down from HK$2,002,361 in FY2022, reflecting a reduction of about 11%[15]. - Net assets decreased to HK$2,284,559, down from HK$2,725,323 in FY2022, indicating a decline of approximately 16%[15]. - The carrying amount of loan receivables as of 30 September 2022 was approximately HK$18.4 million, down from HK$34.5 million as of 31 March 2022, with accumulated impairment increasing to HK$61.9 million[67]. - The Group's cash and cash equivalents as of 30 September 2022 were approximately HK$164.9 million, an increase from approximately HK$151.5 million as of 31 March 2022[78]. Market and Economic Conditions - The IMF forecasts global economic growth of 3.2% for 2022 and 2.9% for 2023, indicating a potential economic downturn[18]. - China's GDP growth rate for the first three quarters of 2022 was 3.0% year-on-year, with a significant recovery in the third quarter at 3.9%[19]. - The decrease in revenue was primarily due to a series of lockdown measures against COVID-19 in the PRC, which caused logistics restrictions and reduced foot traffic[58]. Shareholder Actions and Corporate Governance - No interim dividend was declared for the six months ended September 30, 2022[8]. - A placing agreement was entered into on 9 September 2022 to issue up to 538,000,000 new shares at a price of HK$0.093 per share, with expected gross proceeds of approximately HK$50 million[92]. - The placing was terminated on 19 October 2022 due to uncertainties regarding the completion of the placing and the background information of a major placee[97]. - The Board proposed a share consolidation on 23 November 2022, consolidating every 16 existing shares into one consolidated share[98]. Segment Performance - Lamborghini sales increased by approximately 19.2% to HK$214.6 million, up from HK$180.0 million in the corresponding period last year[26]. - Rolls-Royce sales decreased by approximately 13.7% to HK$856.6 million, down from HK$992.6 million in the corresponding period last year[28]. - Bentley sales decreased by approximately 25.5% to HK$754.0 million, down from HK$1,011.8 million in the corresponding period last year[29]. - The reportable segment results for the six months ended September 30, 2022, amounted to HK$102,806,000, with the auto dealership segment generating HK$130,010,000 and the non-auto dealership segment reporting a loss of HK$23,357,000[156]. Accounting and Reporting Standards - The interim financial statements were prepared in accordance with HKAS 34 and were authorized for issue on 30 November 2022[142]. - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[145]. - The Group's financial statements are reviewed by the Company's audit committee but not audited by external auditors[142].

Financial Performance - Revenue for the financial year ended 31 March 2022 decreased by 4.4% from HK$4,525,762,000 to HK$4,324,487,000 compared to the last financial year[11]. - Gross profit for this financial year increased by 23.8% from HK$691,753,000 to HK$856,432,000[11]. - Profit attributable to owners of the Company for the financial year ended 31 March 2022 was HK$34,052,000, down from HK$37,527,000 in the previous year[11]. - Earnings per share attributable to owners of the Company were HK0.6 cent for this financial year, compared to HK0.7 cent in the last financial year[11]. - Other income, gains and losses for this financial year were losses of HK$131,599,000, compared to losses of HK$51,230,000 in 2021[11]. - Selling and distribution costs for this financial year increased by 8.0% compared to the same in the last financial year[11]. - Administrative expenses for this financial year increased by 6.6% compared to the same in the last financial year[11]. - Impairment loss recognized on loan receivables amounted to HK$56,390,000, compared to nil in 2021[11]. - No dividend was declared for this financial year, consistent with the previous year[11]. Revenue Breakdown - The auto dealership business accounted for approximately 87.9% of total revenue, remaining the major income driver[22]. - Revenue from ultra-luxury automobile distributorships decreased by approximately 6.8% to approximately HK$3,800 million compared to HK$4,076 million in the previous financial year[38]. - Revenue from the automobile segment decreased by approximately 7.2% to HK$3,709.4 million, contributing 85.8% to total revenue, while after-sales services revenue increased by 16.6% to HK$90.8 million[66]. - Revenue from after-sales services increased by approximately 16.6%, while gross profit margin decreased from approximately 38.4% to approximately 33.4%[42]. - Non-auto dealerships recorded a revenue increase of approximately 32.2% to approximately HK$437.5 million compared to approximately HK$331.0 million in the previous financial year[43]. Profitability Metrics - The Company continues to focus on improving gross profit margins, which increased to 19.8% in FY2022 from 15.2% in FY2021[15]. - The gross profit margin improved to 19.8% from 15.3%, indicating enhanced profitability[18]. - Overall gross profit from automobile sales increased by approximately 40% due to the rise in average selling prices across all three auto brands[41]. - Gross profit for the Group increased by approximately 23.8% to HK$856.4 million, with the gross profit margin rising from 15.3% to 19.8%[73]. Asset and Liability Changes - Total assets increased to HK$4,727.7 million from HK$4,086.2 million, reflecting a growth of approximately 15.7%[18]. - Total liabilities rose to HK$2,002.4 million from HK$1,426.9 million, an increase of approximately 40%[18]. - The gearing ratio increased to 39.4% from 17.2%, suggesting a higher level of financial leverage[18]. - The Group's inventories increased by approximately 95.5% to approximately HK$1,361.2 million as of March 31, 2022, from approximately HK$696.2 million as of March 31, 2021, with automobile inventories comprising approximately 56.2% of total inventories[94]. Market Trends and Outlook - The luxury goods market in China is expected to maintain a favorable growth momentum, driven by increasing consumer spending[32]. - The proportion of luxury automobile sales in China is predicted to exceed 20% of total automobile sales by 2030[31]. - The group anticipates moderate pressure on sales and profitability from the recovery of parallel imported luxury cars in the coming year[122]. - Strong demand for fast-moving consumer electronics has led to stable performance in the audio business, with cautious optimism for B&O product sales[122]. - The liquor business is expected to positively impact revenue due to new cooperation with a leading liquor manufacturer and the promotion of the company's own branded liquor[119]. Legal and Financial Issues - The company has a loan agreement for HK$58 million with a borrower who failed to repay the principal and accrued interest by the maturity date of March 4, 2022[103]. - The company entered into a second loan agreement for HK$32 million with another borrower, who also failed to repay the principal and accrued interest by the maturity date of March 22, 2022[105]. - Legal actions have been initiated against both borrowers in the High Court of Hong Kong to recover the outstanding loans and damages[107]. - The company has sought legal advice regarding the defaults on both loan agreements[107]. Corporate Governance - The company has received annual confirmations of independence from all Independent Non-executive Directors, who are considered independent[178]. - No significant transactions or contracts involving Directors with material interests were reported during the financial year[179]. - There are no Directors with interests in any business that competes directly or indirectly with the Group's business[180]. - The company is committed to ensuring compliance with the Model Code for Securities Transactions by Directors of Listed Issuers[199].

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]