[Consolidated Financial Statements](index=1&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the year ended March 31, 2024, the Group's revenue increased 16.2% to HKD 423 million, with profit attributable to owners rising to HKD 6.178 million Annual Consolidated Performance Summary | Metric | 2024 (HKD thousands) | 2023 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Revenue (Continuing Operations)** | 422,733 | 363,764 | +16.2% | | **Gross Profit** | 37,237 | 33,787 | +10.2% | | **Profit from Continuing Operations** | 6,178 | 4,619 | +33.7% | | **Profit for the Year Attributable to Owners of the Company** | 6,178 | 816 | +657.1% | | **Basic Earnings Per Share (HK cents)** | 1.77 | 0.27 | +555.6% | - The FY2023 results included a loss from discontinued operations of approximately **HKD 3.803 million**, while FY2024 had no such impact, which was one of the reasons for the significant improvement in annual profit[62](index=62&type=chunk)[63](index=63&type=chunk) [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2024, the Group's total assets were HKD 205 million, with net assets at HKD 118 million and a current ratio improving to 2.3 times, reflecting a stable financial position Financial Position Summary | Metric | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | **Non-current Assets** | 11,291 | 11,811 | | **Current Assets** | 193,558 | 200,172 | | **Total Assets** | 204,849 | 211,983 | | **Current Liabilities** | 85,858 | 92,747 | | **Non-current Liabilities** | 1,034 | 3,366 | | **Total Liabilities** | 86,892 | 96,113 | | **Net Assets (Total Equity)** | 117,957 | 115,870 | - Current assets primarily include bank and cash balances of **HKD 79.75 million**, other receivables, deposits and prepayments of **HKD 90.83 million**, and trade receivables of **HKD 10.17 million**[64](index=64&type=chunk) [Notes to the Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) [Segment Information](index=6&type=section&id=Segment%20Information) The Group's core business is gold processing and trading in China, which constitutes all revenue, with previous outsourced business process management and money lending services terminated in FY2023 - The Group currently has only one reportable segment: gold processing and trading, which contributed all **HKD 423 million** in revenue in FY2024[96](index=96&type=chunk)[81](index=81&type=chunk) - Outsourced business process management and money lending services were classified as discontinued operations in prior years[79](index=79&type=chunk)[97](index=97&type=chunk) - Geographically, all of the Group's revenue is derived from the Chinese market[88](index=88&type=chunk) [Key Financial Data Notes](index=10&type=section&id=Key%20Financial%20Data%20Notes) This section provides detailed explanations of key financial items, noting a significant increase in trade receivables and no recommended dividend for the current year - The Board does not recommend the payment of any dividend for the year ended March 31, 2024, consistent with the prior year[2](index=2&type=chunk)[132](index=132&type=chunk) Earnings Per Share Calculation | Metric | 2024 | 2023 | | :--- | :--- | :--- | | **Profit Attributable to Owners of the Company (HKD thousands)** | 6,178 | 816 | | **Weighted Average Number of Ordinary Shares (thousands)** | 349,520 | 301,510 | | **Basic Earnings Per Share (HK cents)** | 1.77 | 0.27 | - Total trade receivables surged from **HKD 1.528 million** to **HKD 12.541 million**, with a significant portion overdue by more than 90 days, and an impairment provision of **HKD 2.373 million** was recognized[5](index=5&type=chunk)[6](index=6&type=chunk)[121](index=121&type=chunk) - Net proceeds of approximately **HKD 71.3 million** from the rights issue completed in June 2022 were originally intended for establishing a gold ore processing plant; however, most funds remain in bank accounts due to site selection delays[27](index=27&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) [Financial Review](index=17&type=section&id=Financial%20Review) In FY2024, revenue grew 16.2% to HKD 423 million, but gross margin declined to 8.8% due to lower ore grades, and administrative expenses increased, resulting in a net profit of HKD 6.2 million Revenue by Business Segment | Business Segment | FY2024 Revenue (HKD millions) | FY2023 Revenue (HKD millions) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Gold-loaded Carbon Processing** | 153.8 | 134.7 | +14.2% | | **Gold Ore Processing** | 268.9 | 228.7 | +17.6% | | **Total** | 422.7 | 363.8 | +16.2% | - Gross profit margin decreased from **9.3%** in the previous fiscal year to **8.8%** in the current fiscal year, primarily due to lower gold ore grades supplied by vendors, leading to a decline in the gross profit margin for gold ore processing[47](index=47&type=chunk) - Administrative and other operating expenses increased by **24.4%** year-on-year to **HKD 28.6 million**, mainly due to increased depreciation from new processing plant leases, higher impairment losses on trade receivables, and increased directors' remuneration[49](index=49&type=chunk) [Liquidity, Financial Resources and Foreign Currency Risk](index=19&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Foreign%20Currency%20Risk) The Group maintains a robust financial position with HKD 79.8 million in cash, a current ratio of 2.3 times, and zero gearing, adopting a prudent treasury policy without hedging foreign exchange risk Liquidity Indicators | Metric | As of March 31, 2024 | As of March 31, 2023 | | :--- | :--- | :--- | | **Cash and Cash Equivalents** | HKD 79.8 million | HKD 91.8 million | | **Current Ratio** | 2.3 times | 2.2 times | | **Gearing Ratio** | Zero | Zero | - The Group's foreign exchange risk primarily stems from its USD and RMB bank deposits, which management will closely monitor and consider hedging when necessary[54](index=54&type=chunk)[55](index=55&type=chunk) [Use of Proceeds from Rights Issue](index=20&type=section&id=Use%20of%20Proceeds%20from%20Rights%20Issue) The company raised HKD 67.2 million from a 2022 rights issue for a new beneficiation plant, with HKD 64.1 million unutilized and expected to be used by June 30, 2025 Use of Proceeds from Rights Issue (As of March 31, 2024) | Item | Intended Use (HKD thousands) | Actual Use (HKD thousands) | Remaining Funds (HKD thousands) | | :--- | :--- | :--- | :--- | | **Preparation Costs** | 3,100 | 3,100 | – | | **Construction Costs** | 64,100 | – | 64,100 | | **Total** | **67,200** | **3,100** | **64,100** | [Future Development of the Group's Business](index=21&type=section&id=Future%20Development%20of%20the%20Group%27s%20Business) The Group monitors gold price trends, with its planned Henan plant suspended due to land issues, now evaluating a new plant in Yunnan to achieve higher revenue and profits - The Group's profitability is highly dependent on gold prices, which are influenced by geopolitical factors such as US interest rates and the global economic environment[8](index=8&type=chunk) - The original plan to establish a new gold ore processing plant in Luanchuan County, Henan, has been suspended, primarily due to land and tailings dam construction approval issues[138](index=138&type=chunk) - To advance its own processing plant construction plan, the Group is actively considering and evaluating the possibility of establishing a new plant in Yunnan Province, currently engaged in preliminary discussions with local governments[138](index=138&type=chunk)[9](index=9&type=chunk) [Principal Risks and Uncertainties](index=23&type=section&id=Principal%20Risks%20and%20Uncertainties) The Group faces strategic, operational, financial, and compliance risks, including economic instability, staff turnover, and liquidity issues, which management monitors and manages - Strategic risks: Economic, governmental, and political instability may lead to business stagnation or delays in new business expansion[164](index=164&type=chunk)[143](index=143&type=chunk) - Operational risks: Include loss of key operating personnel and crisis events that could lead to business interruption[20](index=20&type=chunk)[144](index=144&type=chunk)[159](index=159&type=chunk) - Financial risks: Encompass liquidity risk, foreign exchange rate risk, and credit risk, managed by the Group through monitoring cash flow, maintaining sufficient cash, and assigning teams for credit control[21](index=21&type=chunk)[166](index=166&type=chunk) [Corporate Governance and Other Information](index=24&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance](index=24&type=section&id=Corporate%20Governance) The company complies with Listing Rules' Corporate Governance Code, with the Audit Committee reviewing annual results, noting only the Chairman's absence from the 2023 AGM as a deviation - The company has adopted the Corporate Governance Code in Appendix C1 and the Model Code for Securities Transactions by Directors in Appendix C3 of the Listing Rules[16](index=16&type=chunk) - Mr. Liu Shiwei, the Chairman of the Board, was unable to attend the 2023 Annual General Meeting due to other business commitments, constituting a deviation from Corporate Governance Code provision F.2.2[24](index=24&type=chunk)[17](index=17&type=chunk) - The Audit Committee has reviewed the annual results and discussed the Group's accounting principles, internal controls, and financial reporting matters[148](index=148&type=chunk)

Financial Performance - Revenue for the six months ended September 30, 2023, increased to HK$132,063,000, up 62.5% from HK$81,187,000 in the same period last year[9]. - Gross profit rose to HK$11,709,000, representing a 21.5% increase compared to HK$9,624,000 in the previous year[9]. - Profit from continuing operations reached HK$3,791,000, a significant increase of 127.3% from HK$1,667,000 in the prior year[9]. - Profit for the period from continuing operations was HK$1,587,000, compared to HK$115,000 in the same period last year, marking a substantial increase[9]. - Total comprehensive loss for the period was HK$2,726,000, an improvement from a loss of HK$6,287,000 in the previous year[9]. - The company reported a basic earnings per share of HK$0.45, compared to a loss per share of HK$0.61 in the previous year[9]. - For the six months ended September 30, 2023, the total comprehensive income was a loss of HK$2,726,000, compared to a loss of HK$6,287,000 for the same period in 2022, indicating an improvement of approximately 57%[12]. - The company reported a loss before tax of HK$3,507,000 for the six months ended September 30, 2023, compared to a profit of HK$1,048,000 in the previous year[34]. - The Group reported a net profit attributable to owners of approximately HK$1.6 million for the Reporting Period, compared to a net loss of approximately HK$1.6 million in the Corresponding Period[150]. Cash Flow and Liquidity - The net cash generated from operating activities for the six months ended September 30, 2023, was HK$30,063,000, a significant recovery from a cash outflow of HK$10,717,000 in the previous year[16]. - Cash and cash equivalents at the end of the period increased to HK$117,251,000, up from HK$74,604,000 at the same time last year, representing a growth of approximately 57%[16]. - Bank and cash balances improved to HK$117,251,000, up from HK$91,789,000 at the end of the previous fiscal year[11]. - The bank and cash balances increased to HK$117,251,000 as of September 30, 2023, up from HK$91,789,000 as of March 31, 2023, indicating improved liquidity[37]. - The effect of changes in foreign exchange rates resulted in a decrease of HK$3,065,000 in cash and cash equivalents during the current period[16]. Assets and Liabilities - Current assets increased to HK$226,346,000 as of September 30, 2023, compared to HK$200,172,000 as of March 31, 2023[11]. - Net assets decreased slightly to HK$113,144,000 from HK$115,870,000 as of March 31, 2023[11]. - The total liabilities for continuing operations increased to HK$118,719,000 as of September 30, 2023, compared to HK$90,385,000 as of March 31, 2023, representing a rise of 31.2%[37]. - The company had a total accumulated losses of HK$1,181,217,000 as of September 30, 2023, slightly reduced from HK$1,185,171,000 a year earlier[12]. Operational Highlights - The company continues to focus on expanding its market presence and enhancing operational efficiency to drive future growth[9]. - The principal activities of the company remain focused on gold processing and trading in the People's Republic of China[19]. - Revenue from gold processing and trading business for the six months ended September 30, 2023, was HK$132,063,000, representing an increase of 62.5% compared to HK$81,187,000 in the same period of 2022[46]. - The segment profit for gold processing and trading business was HK$7,929,000, up from HK$5,008,000 in the previous year, reflecting a year-on-year increase of 58.4%[34]. - Revenue from gold ore processing was approximately HK$95.9 million during the reporting period, compared to HK$42.7 million in the corresponding period[135]. - Revenue from gold-laden carbon processing was approximately HK$36.1 million during the reporting period, slightly down from HK$38.2 million in the corresponding period[130]. Employee and Compensation - The Group had 67 employees as of September 30, 2023, a slight decrease from 68 employees as of March 31, 2023[185]. - The Group continues to review employee remuneration packages, offering various benefits including a provident fund, discretionary bonuses, and medical allowances[186]. - The Group's key management personnel received total compensation of HK$672,000 during the reporting period, down from HK$890,000 in the previous year[120]. Share Capital and Ownership - As of September 30, 2023, Liu Shiwei holds 230,214,906 shares, representing approximately 65.87% of the company's total shareholding[196]. - Stone Steps Investments Limited, beneficially owned by Liu Shiwei, also holds 230,214,906 shares, equating to 65.87% of the total shareholding[200]. - Wang Baozhi, as a beneficial owner, holds 5,950,000 shares, which is approximately 1.70% of the total shareholding[196]. - The company's authorized share capital remains at HK$300,000,000, with issued and fully paid shares also unchanged at HK$3,495,000 as of September 30, 2023[99]. Taxation and Compliance - The Group recognized a current PRC Enterprise Income Tax expense of HK$1,920,000 for the six months ended September 30, 2023, up from HK$503,000 in the previous year[65]. - The Group had no assessable profit for Hong Kong Profits Tax for the six months ended September 30, 2023, and 2022, thus no provision was required[67]. - The tax rate for subsidiaries in the PRC remained at 25% for both periods under the EIT Law[66]. Discontinued Operations - The company has discontinued its money lending services, which were previously part of its operations[33]. - For the six months ended September 30, 2023, the discontinued operations reported no revenue, compared to HK$7,634,000 for the same period in 2022[95]. - The loss from discontinued operations for the period was HK$1,666,000, resulting in a loss per share of HK$0.00, compared to a loss per share of HK$0.66 in 2022[95][96]. Future Outlook - The Group expects gold prices to remain stably high and rise further in the coming years, focusing on gold processing and trading as its core business[171]. - The establishment of a self-owned gold processing plant remains a long-term goal, as it can generate higher revenues and maximize profits[172]. - The preparation works for the new gold ore processing plant in Henan Province have been suspended due to land acquisition issues, with ongoing assessments for a new plant in Yunnan Province[176].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部份 內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Success Dragon International Holdings Limited 勝 龍 國 際 控 股 有 限 公 司 （於百慕達註冊成立之有限公司） （股份代號：1182） 截至二零二三年九月三十日止六個月 中期業績公告 勝龍國際控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈本公司及其附 屬公司截至二零二三年九月三十日止六個月之未經審核業績。本公告載列本公司二零 二三至二零二四年中期報告（「二零二三至二零二四年中期報告」）全文，符合香港聯合 交易所有限公司（「聯交所」）證券上市規則中有關中期業績初步公告附載資料之相關規 定。二零二三至二零二四年中期報告之印刷本將適時寄發予本公司股東，並可於聯交 所網站www.hkexnews.hk及本公司網站www.successdragonintl.com查閱。 承董事會命 Success Dragon International H ...

Business Focus and Operations - The Group has fully transitioned to a business focused solely on gold processing and trading, ceasing operations in outsourced business process management for electronic gaming machines and money lending[11]. - The Group's principal activity is gold processing in the People's Republic of China[179]. - The Group has entered into lease agreements for four gold processing plants in Henan province, which commenced operations during the Year[31]. - The Group has entered into lease agreements for several gold processing plants in Henan Province to maintain business momentum and has commenced operations, generating significant revenue and profits during the year[105]. - The establishment of a self-owned gold ore processing plant remains a long-term goal, but construction has been delayed due to pending responses from local government regarding land-use approvals[14]. - The establishment of a new gold ore processing plant in Luanchuan County, Henan Province, with a designed annual processing capacity of 600,000 tonnes has faced delays due to land acquisition issues[99]. - The Group is considering establishing the new plant in other locations, such as Yunnan Province, and is currently conducting feasibility studies and preliminary preparations[106]. Financial Performance - The Group recorded revenue of approximately HK$363.8 million for FY2023, a significant increase of approximately 152.4% compared to HK$144.1 million in FY2022[25]. - Revenue from gold ore processing during the Year was approximately HK$228.7 million, contributing significantly to the overall revenue growth[31]. - Revenue from gold-laden carbon processing was approximately HK$134.7 million, showing stability compared to HK$137.2 million in FY2022[26]. - The Group's trading of gold and other precious metals contributed approximately 0.1% or HK$0.4 million of the revenue, a significant drop from approximately 4.8% or HK$6.9 million in FY2022[32]. - The outsourced business process management revenue decreased by approximately 77.4% from HK$31.5 million in FY2022 to HK$7.1 million in FY2023 due to limited operation time[33]. - The money lending business generated revenue of approximately HK$0.5 million in FY2023, down from approximately HK$6.4 million in FY2022[38]. - The significant increase in revenue was mainly attributed to the commencement of operations in gold ore processing in Henan[25]. - Revenue from gold processing and trading business increased to approximately HK$363.8 million, a rise of 152.4% compared to FY2022's HK$144.1 million[53]. - Cost of sales rose by approximately HK$206.6 million or 167.4%, from approximately HK$123.4 million in FY2022 to approximately HK$330.0 million for the Year[58]. - Gross profit increased by approximately HK$13.1 million or 63.3%, from approximately HK$20.7 million in FY2022 to approximately HK$33.8 million for the Year[59]. - Gross profit margin decreased from approximately 14.4% in FY2022 to 9.3% for the Year due to lower gold content supplied and reduced trading revenue[59]. - Administrative and other operating expenses increased by approximately HK$7.7 million or 50.2%, from approximately HK$15.3 million for FY2022 to approximately HK$23.0 million for the Year[65]. - The Group reported a net profit attributable to owners of the Company of approximately HK$0.8 million for the Year, down from HK$2.0 million in FY2022[69]. Market Outlook - The Group anticipates rising demand and prices for gold in 2023 due to increasing recession and geopolitical risks, which are expected to drive gold as a safe-haven asset[12]. - The Group expects gold prices to remain stably high and rise further in the coming years, focusing on gold processing and trading as its core business to diversify income streams and increase shareholder returns[98]. Shareholder Value and Investments - The Group plans to leverage its experience and business networks to capture market opportunities and deliver sustainable returns to shareholders[19]. - The Group will proactively explore other investment opportunities to expand its gold processing portfolio, maximizing shareholder value[20]. - The Group aims to explore other investment opportunities to expand its existing gold processing portfolio for maximum shareholder value[22]. - The net proceeds from the Rights Issue were approximately HK$67.2 million, intended for financing the costs of preparation and construction of a new processing plant with an annual capacity of 600,000 tonnes[89]. Risk Management - The Group's management is actively monitoring financial risks, including liquidity risk, foreign exchange rate risk, and credit risk, to ensure operational stability[133]. - The Group will conduct regular reviews and follow-up actions on overdue amounts to minimize credit risk exposure[51]. - If loan defaults persist beyond three months, collection procedures will commence, including engaging lawyers for recovery actions[52]. - The Group's credit assessment includes evaluating repayment ability and creditworthiness of potential clients[50]. - The management conducts feasibility assessments and projections to manage strategic enterprise risks related to economic and political instability[125]. Compliance and Governance - The Group has complied with relevant laws and regulations that significantly impact its business and operations during FY2023[116]. - The Group's management collaborates with external professionals to ensure compliance with applicable local laws and regulations, mitigating compliance risk[135]. - The Group emphasizes the importance of maintaining good relationships with business partners, suppliers, and customers to achieve short-term and long-term goals[121]. - The company emphasizes the importance of a robust governance framework to support its operational and financial objectives[160]. Management and Employees - The company has a diverse management team with significant financial and operational experience[160]. - The management structure includes a mix of executive and independent non-executive directors to ensure governance and oversight[159]. - The company is focused on maintaining strong leadership with experienced professionals in key positions[160]. - The management team has a background in finance, investment, and technology sectors, enhancing the company's strategic direction[160]. - The Group has identified high staff turnover rates, particularly among key operational staff, as a significant operational risk[131]. - As of March 31, 2023, the Group employed approximately 68 employees, an increase from 60 in the previous year[113]. Financial Statements and Dividends - The audited consolidated financial statements for the year ended March 31, 2023, are presented in the annual report[178]. - For the financial year ended March 31, 2023, the Directors do not recommend any dividend payment, consistent with the previous year[180]. - The Company currently has no pre-determined dividend payout ratio, with the Board considering various financial factors before recommending dividends[181]. - As of March 31, 2023, there are no distributable reserves available for the Company[192]. - The board does not recommend any dividend payment for the year ended March 31, 2023, similar to the previous year[186].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Success Dragon International Holdings Limited 勝 龍 國 際 控 股 有 限 公 司 （於百慕達註冊成立之有限公司） （股份代號：1182） 截至二零二三年三月三十一日止年度 年度業績公告 勝龍國際控股有限公司（「本公司」）及其附屬公司（統稱「本集團」）截至二零二三年三月 三十一日止財政年度之綜合業績，連同上一財政年度之比較數字如下： 綜合損益及其他全面收益表 截至二零二三年三月三十一日止年度 二零二三年 二零二二年 附註 千港元 千港元 持續經營業務 收益 4 363,764 144,107 銷售成本 (329,977) (123,423) 毛利 33,787 20,684 ...

Financial Performance - Revenue for the six months ended September 30, 2022, was HK$88,821,000, a decrease of 18% compared to HK$108,359,000 in the same period of 2021[12]. - Gross profit for the same period was HK$11,963,000, down 44% from HK$21,361,000 year-on-year[12]. - The company reported a loss of HK$1,551,000 for the period, compared to a profit of HK$4,436,000 in the previous year[12]. - Total comprehensive loss for the period amounted to HK$6,287,000, contrasting with a total comprehensive income of HK$4,720,000 in the prior year[12]. - Basic and diluted loss per share was HK$0.61, compared to earnings of HK$3.00 per share in the same period last year[12]. - The company reported a total comprehensive loss of HK$6,287,000 for the period, reflecting ongoing challenges[15]. - The Group reported a loss of approximately HK$1,551,000 for the six months ended September 30, 2022, compared to a profit of approximately HK$4,436,000 in the same period of 2021[79]. - The Group recorded a net loss attributable to owners of approximately HK$1.6 million for the reporting period, compared to a net profit of approximately HK$4.4 million in the corresponding period[196]. Revenue Breakdown - Money lending services generated revenue of HK$516,000, down from HK$3,792,000 in the prior year, reflecting a significant decline[36]. - Gold processing and trading business revenue was HK$81,187,000, a decrease of 5% from HK$85,468,000 in the same period last year[36]. - Revenue from electronic gaming equipment management services in Macau was HK$7,118, a decline of 63% compared to HK$19,099 in the prior year[49]. - Revenue from the outsourced business process management segment contributed approximately 8.0% to total revenue, down from 17.6% in the previous year, with earnings of approximately HK$7.1 million, a decrease of approximately HK$12.0 million or 62.7%[185]. - Revenue from the money lending business was approximately HK$0.5 million, significantly down from approximately HK$3.8 million in the corresponding period, due to the decision to terminate operations during the reporting period[186]. - The contribution of the gold processing and trading business to the Group's total revenue increased from approximately 78.9% in the corresponding period to approximately 91.4% in the reporting period[166]. Expenses and Costs - Administrative and other operating expenses were HK$13,372,000, slightly down from HK$13,885,000 in the previous year[12]. - Selling and distribution costs decreased by approximately HK$0.3 million or 43.4% to approximately HK$0.4 million, primarily due to reduced advertising and promotion activities[192]. - Administrative and other operating expenses decreased by approximately HK$0.5 million or 3.7% to approximately HK$13.4 million, mainly due to a reduction in professional fees and miscellaneous expenses[193]. - Finance costs decreased significantly to HK$252,000 from HK$1,460,000 year-on-year, indicating improved cost management[12]. - The Group's cost of sales decreased by approximately HK$10.1 million or approximately 11.7%, from approximately HK$87.0 million to approximately HK$76.8 million, primarily due to reduced revenue in the outsourced business process management and money lending segments[183]. Assets and Liabilities - As of September 30, 2022, total assets less current liabilities amounted to HK$111,987,000, a significant increase from HK$52,585,000 as of March 31, 2022[14]. - Current assets increased to HK$184,483,000 from HK$129,631,000, driven by a rise in inventories to HK$56,524,000 from HK$19,376,000[14]. - Total equity increased to HK$111,987,000 as of September 30, 2022, compared to HK$49,880,000 as of April 1, 2022[15]. - Total liabilities decreased to HK$84,180,000 from HK$92,036,000, indicating improved financial stability[40]. - Trade payables rose significantly to HK$45,142,000 from HK$13,758,000, indicating increased operational liabilities[14]. Cash Flow and Financing - The company reported a net cash used in operating activities of HK$10,717,000 for the six months ended September 30, 2022, compared to HK$1,206,000 for the same period in 2021[19]. - Cash and cash equivalents at the end of the period reached HK$74,604,000, up from HK$31,469,000 at the end of the previous year[19]. - The company raised HK$71,301,000 from rights issues during the reporting period[19]. - The Group completed a rights issue on 27 June 2022, raising gross proceeds of approximately HK$71.3 million by issuing up to 209,711,740 Rights Shares at a subscription price of HK$0.34 each[119]. Strategic Initiatives - The management discussed potential strategies for market expansion and new product development in the upcoming quarters[12]. - The company is focusing on enhancing operational efficiency and exploring merger and acquisition opportunities to drive future growth[12]. - The Group aims to develop new procurement and revenue channels in the gold processing market[157]. Other Information - The Group has not yet applied new HKFRSs that are issued but not effective, and is assessing their potential impact[29]. - The Group has no significant events after the reporting period that need to be disclosed[150]. - There were no related party transactions and balances except for those disclosed elsewhere in the financial statements[129].

Business Operations - The Group's core business is gold-laden carbon processing, with an annual processing capacity of 990 tonnes in Yunnan, China[11]. - A new processing plant with a designed annual capacity of 600,000 tonnes is planned in Luanchuan County, Henan Province, which is expected to generate significant revenue[11]. - The Group aims to diversify revenue channels by trading in gold and other precious metals to achieve sustainable growth[11]. - The Group's production line in Yunnan province, PRC, focuses on extracting gold and other precious metals from gold-laden carbon, enhancing its procurement and revenue channels[30]. - The Group commenced trading of gold and other precious metals, contributing approximately 4.8% or approximately HK$6.9 million to the total revenue of the gold-laden carbon processing and trading segment[32]. - The business model for the New Plant involves processing gold ore into gold powder, which will be sold to gold smelters[99][105]. - The Group's principal activities include processing gold-laden carbon, selling gold and other precious metals, outsourced business process management, and money lending during the financial year[184][189]. Financial Performance - The Group recorded revenue of approximately HK$182.0 million for FY2022, representing a slight increase of approximately 3.9% from HK$175.2 million in FY2021[38]. - Revenue from the gold-laden carbon processing and trading business was approximately HK$144.1 million, contributing approximately 79.2% of the Group's total revenue, an increase of approximately HK$9.0 million or 6.6% from FY2021[33]. - The outsourced business process management business contributed approximately 17.3% of the Group's total revenue, with revenue decreasing by approximately 6.1% to HK$31.5 million due to the adverse impact of the COVID-19 pandemic on the Macau gaming industry[21]. - The money lending business generated revenue of approximately HK$6.4 million, slightly down from HK$6.5 million in FY2021, with a profit of approximately HK$3.5 million[22]. - The Group's gross profit increased by approximately HK$15.8 million, or 79.7%, from approximately HK$19.9 million for FY2021 to approximately HK$35.7 million for the Year, resulting in a gross profit margin of approximately 19.6% compared to 11.3% in FY2021[40][46]. - Total revenue for the Year was approximately HK$182.0 million, a slight increase of about 3.9% from approximately HK$175.2 million in FY2021[44]. - The loss from the outsourced business process management segment decreased from approximately HK$9.4 million in FY2021 to approximately HK$5.6 million in FY2022, attributed to tight cost control measures[21]. Cost Management - The cost of sales decreased by approximately HK$9.0 million or approximately 5.8%, from approximately HK$155.3 million in FY2021 to approximately HK$146.3 million in FY2022[39]. - Selling and distribution costs decreased by approximately HK$0.6 million or 28.5% from approximately HK$2.1 million for FY2021 to approximately HK$1.5 million during the Year[42][48]. - Administrative and other operating expenses increased by approximately HK$2.4 million or 9.1% from approximately HK$25.9 million for FY2021 to approximately HK$28.3 million for the Year[51][59]. - The Group plans to closely monitor and review its management and cost structure to achieve cost reduction and efficiency improvements as part of its long-term strategy[18]. Strategic Partnerships and Expansion - The Group plans to form strategic partnerships with major players in the region to leverage its business networks and expand market presence[11]. - A framework agreement was established with Jinxing Mining for a new processing plant with an annual capacity of 600,000 tonnes, located in Henan Province, which is rich in gold resources[93][95]. - The total capital expenditure for the New Plant is expected to be approximately RMB133.8 million (around HK$163.2 million), financed through various means including bank loans and internal resources[106]. - The construction of the New Plant is anticipated to be completed by September 2023[106]. Risk Management - The Group's management regularly identifies and assesses key operational risks to implement appropriate risk responses[128][132]. - Financial risks include liquidity risk, foreign exchange rate risk, and credit risk, with measures in place to monitor and mitigate these risks[133][134]. - The company has implemented measures to monitor cash flow and maintain sufficient cash and cash equivalents to mitigate liquidity risk[138]. - The management team is closely monitoring foreign exchange risks and will consider hedging significant exposures when necessary[139]. - A dedicated team has been assigned to manage credit risk, including setting credit limits and monitoring overdue debts[139]. Corporate Governance and Leadership - Liu Shiwei was appointed as the executive director and chairman of the board on July 13, 2022, holding 65.9% of the entire issued share capital of the company[147][148]. - Wang Baozhi was appointed as the executive director and chief executive officer on July 13, 2022, bringing over 23 years of finance experience to the company[150][151]. - Ding Lei was re-designated from chairman and chief executive officer to chief operating officer on July 13, 2022[156][157]. - The company has undergone changes in its board composition, reflecting a strategic shift in leadership roles[144][146]. - The company is focused on expanding its market presence and enhancing operational efficiency through strategic leadership changes[160]. - The board includes members with significant experience in corporate governance and compliance, ensuring adherence to regulatory standards[171]. Shareholder Returns and Dividends - The Group did not recommend any dividend for the year ended March 31, 2022, consistent with the previous year where no dividend was paid[185][191]. - The Company currently has no pre-determined dividend payout ratio and considers various financial factors before recommending any dividends[186]. - As of March 31, 2022, and 2021, there are no reserves available for distribution by the Company[197]. - The Company has a comprehensive approach to evaluating dividend payments, considering internal and external factors impacting financial performance[186]. Compliance and Sustainability - The Group is committed to environmental sustainability and encourages environmental protection awareness among employees[125][129]. - The Group has complied with relevant laws and regulations that significantly impact its business operations during FY2022[117][121]. - The company collaborates with external professionals to ensure compliance with applicable laws and regulations[140].

Financial Performance - Revenue for the six months ended September 30, 2021, was HK$108,359,000, representing a 114% increase compared to HK$50,473,000 for the same period in 2020[13] - Gross profit increased to HK$21,361,000, up 144% from HK$8,764,000 year-on-year[13] - Profit before tax for the period was HK$7,110,000, compared to a loss of HK$6,103,000 in the previous year[13] - The company reported a profit for the period of HK$4,436,000, reversing a loss of HK$6,103,000 from the same period last year[13] - Total comprehensive income for the period was HK$4,720,000, compared to a loss of HK$6,082,000 in the previous year[13] - For the six months ended September 30, 2021, the total comprehensive income was HK$4,720,000, compared to a total comprehensive loss of HK$6,082,000 for the same period in 2020[16] - The company reported a profit before tax of HK$7,110,000, compared to a loss of HK$6,103,000 in the previous year[36] - For the six months ended September 30, 2021, the Group reported a profit of approximately HK$4,436,000, compared to a loss of approximately HK$6,103,000 for the same period in 2020[80] Assets and Liabilities - Current assets increased to HK$134,504,000 as of September 30, 2021, compared to HK$94,473,000 as of March 31, 2021[14] - Net current assets improved to HK$45,110,000, up from HK$40,518,000 as of March 31, 2021[14] - Total assets less current liabilities amounted to HK$54,786,000, compared to HK$50,366,000 at the end of the previous fiscal year[14] - The company's net assets increased to HK$52,066,000, up from HK$47,346,000 as of March 31, 2021[14] - The total liabilities rose to HK$92,114,000 as of September 30, 2021, compared to HK$56,975,000 as of March 31, 2021, marking an increase of 62%[40] Revenue Breakdown - Revenue from the PRC market reached HK$85,468,000, up from HK$29,559,000 in 2020, indicating a growth of 189%[43] - The revenue from the gold-laden carbon processing and trading business was approximately HK$85.5 million, contributing approximately 78.9% to the Group's total revenue, up from approximately 58.6% in the last period[164] - Revenue from outsourced business process management increased by approximately 7.4% to approximately HK$19.1 million, driven by improved economic conditions in Macau[156] - Revenue from money lending services was approximately HK$3.8 million, with a segment profit of approximately HK$2.2 million, compared to revenue of approximately HK$3.1 million and profit of approximately HK$1.4 million in the last period[158] Cash Flow and Financing - The net cash used in operating activities for the six months ended September 30, 2021, was HK$1,206,000, an improvement from HK$2,086,000 in the previous year[19] - Cash and cash equivalents at the end of the period were HK$31,469,000, compared to HK$3,641,000 at the end of the same period in 2020[19] - Interest paid during the financing activities was HK$915,000, an increase from HK$321,000 in the previous year[19] - Finance costs for the six months ended September 30, 2021, amounted to HK$1,460,000, an increase from HK$1,186,000 in the same period of 2020[64] Share Capital and Reorganization - The company reported a capital reorganization resulting in a reduction of share capital by HK$26,564,000 during the period[16] - The company's share capital increased from HK$27,962,000 at April 1, 2021, to HK$1,398,000 at September 30, 2021, due to capital reorganization[16] - A capital reorganization was implemented, consolidating every twenty existing shares into one consolidated share with a par value of HK$0.2, followed by a capital reduction[120] - The authorized share capital is 30,000,000,000 ordinary shares with a par value of HK$0.01 each, while the issued and fully paid shares amount to 139,807,827 shares[115] Taxation - The Hong Kong Profits Tax for the current period was calculated at a rate of 16.5%, resulting in a tax expense of HK$56,000[74] - The PRC Enterprise Income Tax for the current period amounted to HK$2,618,000, with a tax rate of 25% applicable[74] Management and Future Outlook - The Group expects gold prices to remain high due to anticipated inflation and geopolitical uncertainties, continuing to focus on gold-laden carbon processing and trading as its core business[165] - The Group will continue to identify new opportunities for business development and has no current plans for material investments or acquisitions[170] - The company is currently negotiating to extend the repayment of an unsecured loan of HK$8,865,000, which was originally due on May 13, 2021[190]

Financial Performance - The Group recorded revenue of approximately HK$175.2 million for FY2021, an increase of approximately 91.7% from HK$91.4 million in FY2020[22]. - The financial year ended 31 March 2021 marked a significant recovery in revenue, indicating a positive trend for the Group's operations moving forward[22]. - The Group recorded total revenue of approximately HK$175.2 million for FY2021, representing an increase of approximately 91.7% compared to approximately HK$91.4 million in FY2020[34]. - Revenue from the gold-laden carbon processing business was approximately HK$135.1 million, contributing approximately 77.1% of the Group's total revenue, compared to approximately HK$2.1 million in FY2020[34]. - The Outsourced Business Process Management segment contributed approximately 19.2% of total revenue, with revenue decreasing by approximately 60.2% from approximately HK$84.5 million in FY2020 to approximately HK$33.6 million in FY2021[34]. - The money lending business generated revenue of approximately HK$6.5 million, an increase from approximately HK$4.9 million in FY2020[34]. - The Group reported a net loss attributable to owners of approximately HK$10.5 million for FY2021, a decrease from approximately HK$11.9 million in FY2020[35]. Business Strategy and Operations - The core business of the Group shifted to gold processing, with a production line established in Yunnan province, PRC, for extracting gold and other precious metals from gold-laden carbon[14]. - The Group expects gold prices to increase further due to economic recovery and geopolitical uncertainties, which will enhance the profitability of its gold processing business[15]. - The Company aims to diversify revenue channels by engaging in trading of gold and other precious metals to achieve sustainable growth in the coming years[16]. - The Group aims to explore new procurement and revenue channels in the gold-laden carbon processing market[30]. - The Group plans to expand its gold-laden carbon processing and the sale of gold and other precious metals business in 2021[62]. - The Group is exploring new business development opportunities, particularly in gold processing and sales, to diversify revenue sources and enhance shareholder returns[68]. Financial Position and Capital Management - The Group's bank and cash balances as of 31 March 2021 were approximately HK$32.3 million[40]. - The gearing ratio of loans against total equity as of 31 March 2021 was 57.3%[43]. - The Group entered into an unsecured loan agreement with a principal amount of approximately HK$8.9 million at a fixed interest rate of 3.5% per annum[41]. - The group entered into an unsecured loan agreement with an independent third party for HK$13.6 million at an annual interest rate of 14.5%, due on September 5, 2020, and is currently negotiating an extension[45]. - The debt-to-equity ratio as of March 31, 2021, was 57.3%[45]. - The group completed a placing of up to 473,257,309 new shares at HK$0.067 per share, with a total of 429,870,000 new shares issued, generating net proceeds of approximately HK$28.40 million[52][53]. - The Group's capital expenditure contracted but not provided for the acquisition of property, plant, and equipment amounted to approximately HK$Nil as of March 31, 2021, compared to HK$2,296,000 on March 31, 2020[70][76]. Governance and Management - The Company appreciates the contributions of its directors and staff, emphasizing the importance of their support for corporate growth and shareholder returns[17]. - The company has a diverse board with members holding degrees in finance, management, accounting, and law, enhancing its governance and strategic decision-making capabilities[110]. - The company has appointed independent non-executive directors to ensure compliance and enhance corporate governance practices[106]. - The management team includes professionals with significant experience in various sectors, contributing to the company's strategic direction and operational efficiency[110]. - The company is focused on expanding its market presence and enhancing its financial management capabilities through experienced leadership[105]. Risk Management - Key operational risks include high staff turnover rates, particularly among key operational staff, and potential crises disrupting business[98]. - Financial risks include liquidity risk, foreign exchange rate risk, and credit risk, with measures in place to monitor and mitigate these risks[92][96]. - The Group has complied with relevant laws and regulations that significantly impact its business operations during FY2021[74][79]. Shareholder Information - Approximately 78% of the Group's total turnover was attributable to its five largest customers, with the largest customer accounting for about 56% of total turnover[141]. - The Group's five largest customers accounted for approximately 78% of total revenue, with the largest customer representing about 56%[149]. - The Group's five largest suppliers contributed approximately 100% of total purchases, with the largest supplier accounting for about 84%[151]. - As of March 31, 2021, the Company had no distributable reserves[145]. - The Company maintained Directors' and officers' liability insurance throughout the year to cover legal actions arising from corporate activities[162]. - The Company had no significant contracts with controlling shareholders during the year[175]. - As of March 31, 2021, Liu Shiwei held 602,373,895 shares, representing 21.54% of the company's total shareholding[183]. - Liu Shiwei also had a short position of 503,669,620 shares, accounting for 18.01% of the total shares[183]. - Shanghao Limited, controlled by Tsang Ho Kwan, held 503,669,620 shares, also representing 18.01% of the total shareholding[183]. Employee and Environmental Commitment - The Group employed approximately 60 employees as of March 31, 2021, and continues to review remuneration packages based on market conditions and individual performance[71][77]. - The Group is committed to environmental sustainability and promotes awareness of environmental protection among employees[83][87].

Revenue Performance - Revenue for the six months ended September 30, 2020, was HK$50,473,000, representing an increase of 14.9% compared to HK$44,276,000 for the same period in 2019[11]. - For the six months ended September 30, 2020, total revenue was HK$50,473,000, an increase from HK$44,276,000 in the same period of 2019, representing a growth of approximately 14.9%[43]. - Revenue from the PRC reached HK$29,559,000, while revenue from Macau decreased to HK$17,775,000 from HK$42,012,000, indicating a significant decline of approximately 57.7%[43]. - Revenue from the management of electronic gaming equipment in Macau decreased to HK$17,775,000, down 57.7% from HK$42,012,000 in the previous year[49]. - Revenue from the money lending business increased by approximately 38.7% to approximately HK$3.1 million, with a segment profit of approximately HK$1.4 million[172]. - The newly established gold-laden carbon processing business generated revenue of approximately HK$29.6 million, contributing approximately 58.5% of the Group's total revenue[172]. Profit and Loss - Gross profit decreased to HK$8,764,000, down 38.8% from HK$14,293,000 year-on-year[11]. - Loss from operations improved to HK$4,199,000, a reduction of 17.7% compared to a loss of HK$5,103,000 in the previous year[11]. - Loss before tax was HK$6,103,000, slightly better than the loss of HK$6,905,000 reported in the same period last year[11]. - Total comprehensive loss for the period was HK$6,082,000, compared to HK$6,905,000 in the prior year, indicating a 11.9% improvement[11]. - The Group reported a loss of approximately HK$6,103,000 for the six months ended 30 September 2020, compared to a loss of HK$6,905,000 for the same period in 2019, indicating a decrease in loss of about 11.6%[78]. - The Group's loss attributable to owners decreased from approximately HK$6.9 million to approximately HK$6.1 million during the period under review[173]. Assets and Liabilities - Current assets increased to HK$56,219,000 from HK$55,173,000, showing a slight growth of 1.9%[13]. - Net current assets decreased to HK$17,324,000 from HK$19,290,000, reflecting a decline of 10.2%[13]. - Total assets less current liabilities decreased to HK$25,559,000 from HK$29,322,000, a drop of 12.8%[13]. - Net assets as of September 30, 2020, were HK$23,240,000, down from HK$29,322,000, indicating a decrease of 20.7%[13]. - The Group's total liabilities increased to HK$41,214,000 from HK$35,883,000, reflecting a rise of approximately 14.5%[41]. - As of 30 September 2020, the total amount of other loans was HK$25,826,000, slightly down from HK$26,065,000 as of 31 March 2020[108]. Cash Flow and Financing - The net cash used in operating activities was HK$2,086,000, a significant improvement from HK$14,503,000 in the previous year, reflecting better cash management[19]. - Cash and cash equivalents at the end of the period were HK$3,641,000, down from HK$11,277,000 at the end of September 2019, showing a decrease in liquidity[19]. - The company raised HK$4,219,000 in director's loans during the period, which was not present in the previous year, indicating new financing efforts[19]. - The Group's bank and cash balances improved to HK$3,641,000 from HK$1,629,000, showing a growth of approximately 123.5%[40]. - The Group had bank and cash balances of approximately HK$3.6 million and a loan agreement for HK$13.6 million at an interest rate of 14.5% per annum[181]. Operational Highlights - The company’s principal activities include outsourced business process management for electronic gaming machines in Macau and money lending services in Hong Kong, indicating a focus on diversified revenue streams[22]. - The Group has diversified its operations into processing gold-laden carbon and the sale of gold and other precious metals[153]. - The Group plans to establish a production line in Yunnan province, PRC, for the extraction of gold and other precious metals[163]. - The Group implemented cost control measures in its Macau operations to maintain competitiveness in the market[156]. - The intense competition in the Macau gaming market and the COVID-19 pandemic significantly impacted the Group's revenue and operations[154]. Employee and Cost Management - Total staff costs for the period were HK$4,368,000, down 45.5% from HK$7,929,000 in the previous year[74]. - Selling and distribution costs decreased by approximately 61.1% to approximately HK$1.2 million compared to approximately HK$3.2 million in the last corresponding period[173]. - Administrative and other expenses decreased by approximately 28.3% to approximately HK$11.9 million, primarily due to reduced depreciation and amortization costs[174]. Accounting and Compliance - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from April 1, 2020, which did not result in significant changes to accounting policies[28]. - The Group has not applied new accounting standards that have been issued but not yet effective, and the impact of these standards is still being assessed[32]. - No provision for Hong Kong profits tax was required as the Group had no assessable profit for both periods[68]. - The Macau Complementary Tax was not required due to tax losses incurred by the subsidiary in Macau during the period[69]. Miscellaneous - There were no significant events after the reporting period that needed to be disclosed as of the approval date of the financial statements[147]. - The condensed consolidated financial statements were approved by the board of Directors on 30 November 2020[148]. - The Group employed 45 employees as of 30 September 2020[194]. - The Group maintains strict control over its outstanding receivables, with overdue balances reviewed regularly by the directors[90].