Financial Performance - The Group's revenue for the six months ended 30 September 2023 decreased by approximately 44.6% to approximately HK$1,136.1 million, compared to approximately HK$2,050.5 million for the same period in 2022[14]. - Profit attributable to owners of the parent for the Period was approximately HK$111.0 million, a significant recovery from a loss of approximately HK$23.6 million in the same period last year[16]. - The decrease in revenue was primarily due to reduced sales from property development projects in which the Group has a controlling stake[15]. - The increase in profit was attributed to higher share of results from joint ventures and increased sales and gross profit from pharmaceutical and health food products[16]. - The Group did not recommend the payment of any interim dividend for the six months ended 30 September 2023, consistent with the previous year[13]. Cost and Expenses - The increase in finance costs was noted due to interest rate increments during the Period compared to the corresponding period in 2022[16]. - Administrative expenses were approximately HK$253.4 million, down from HK$270.5 million in the previous period, while selling and distribution expenses decreased to approximately HK$197.3 million from HK$203.6 million[23]. - Finance costs increased to approximately HK$173.4 million from HK$130.9 million, mainly due to rising interest rates[24]. Strategic Focus - The Group's performance reflects a strategic shift towards enhancing its pharmaceutical and health food product lines[16]. - The management highlighted the importance of addressing the challenges in property project deliveries to stabilize revenue streams moving forward[15]. - Future strategies may include further investments in joint ventures to leverage growth opportunities in the health sector[16]. - The Group aims to improve operational efficiency to mitigate the impact of rising finance costs on profitability[16]. Property Development - The property development segment recorded revenue of approximately HK$375.1 million and segment profit of approximately HK$10.1 million, down from HK$1,358.2 million and HK$130.0 million respectively for the six months ended 30 September 2022[39]. - Revenue from the Group's property development business in the PRC was approximately HK$116.7 million, a slight increase from HK$108.2 million in the previous period, attributed to more property sales deliveries[40]. - Revenue contribution from Wang On Properties Group's property development was approximately HK$258.4 million, primarily from sales of "The Met. Azure" and "LADDER Dundas" projects[43]. Agricultural and Fresh Market Operations - Fresh market and agricultural produce exchange market segment recorded a revenue increase of approximately 0.4% to approximately HK$332.7 million for the six months ended 30 September 2023[49]. - The CAP Group contributed approximately HK$193.8 million from agricultural produce exchange markets in China, while fresh market operations in Hong Kong contributed approximately HK$138.9 million[49]. - The Group operates 11 agricultural produce exchange markets across five provinces in China, significantly expanding its presence in this segment[57]. Pharmaceutical and Health Food Products - Revenue from the pharmaceutical and health food products segment reached approximately HK$365.4 million, representing a 22.3% increase from HK$298.7 million for the six months ended September 30, 2022[71]. - Revenue from Chinese pharmaceutical and health food products increased by approximately 23.8% to approximately HK$329.0 million, compared to HK$265.7 million for the six months ended September 30, 2022[72]. - New products, including Cordyceps Plus for respiratory support, were introduced to address seasonal influenza and long Covid symptoms[78]. Financial Position - The Group's net assets as of 30 September 2023 were approximately HK$9,250.5 million, a slight decrease from HK$9,379.4 million as of 31 March 2023[34]. - Total borrowings as of 30 September 2023 were approximately HK$6,536.3 million, resulting in a net debt position of approximately HK$5,351.4 million[34]. - The Group maintained a healthy cash balance of approximately HK$1,333.0 million as of 30 September 2023, down from HK$1,749.0 million as of 31 March 2023[34]. Investment and Acquisitions - On September 6, 2023, the Group agreed to acquire 2,007,700,062 ordinary shares of CAP for HK$200 million, increasing its equity interest in CAP from approximately 53.37% to 73.54%[149]. - The Group has partnered with APG Strategic Real Estate Pool for the acquisition and redevelopment of residential properties in Hong Kong[112]. - The Group's investment strategy remains prudent, with a focus on long-term holdings aimed at generating stable income[143]. Market Conditions and Economic Outlook - The Chief Executive's recent Policy Address included measures to ease property policies, such as reducing buyers' stamp duties on new homes by half, which is expected to positively impact the property market[169]. - The Group anticipates increased competition in fresh market operations due to a rise in the number of operators and the growing acceptance of online shopping and delivery services[170]. - The unemployment rate in Hong Kong dropped to 2.8% from July to September 2023, indicating an improving labor market[171]. Corporate Governance and Shareholding - As of September 30, 2023, Mr. Tang holds a total of 486,915,306 shares through Caister Limited and 531,000,000 shares through Billion Trader Investments Limited, both of which are wholly-owned by him[189]. - Ms. Yau holds 810,322,940 shares of WYT, which is about 69.19% of the total issued shares[191]. - The company has not granted any rights to acquire shares or debentures to any directors or chief executives during the period[197].

[Interim Financial Highlights](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This section provides a concise overview of the Group's key financial performance and position for the six months ended September 30, 2023 Interim Financial Highlights for the Six Months Ended September 30, 2023 | Metric | 2023 (Unaudited) HK$ Million | 2022 (Unaudited) HK$ Million | Change | | :--- | :--- | :--- | :--- | | Revenue | 1,136 | 2,050 | -44.6% | | Gross Profit | 435 | 532 | -18.2% | | Profit/(Loss) Attributable to Owners of the Parent | 111 | (24) | +562.5% | | Earnings/(Loss) Per Share—Basic and Diluted (HK Cents) | 0.81 | (0.17) | +576.5% | | Net Assets (as at September 30) | 9,250 | 9,379 | -1.4% | | Net Assets Per Share (HK$) (as at September 30) | 0.60 | 0.61 | -1.6% | | Gearing Ratio (as at September 30) | 57.9% | 49.4% | +8.5 Percentage Points | [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the Group's condensed consolidated financial statements, including the statement of profit or loss and other comprehensive income, and the statement of financial position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended September 30, 2023, the Group's revenue significantly decreased to HK$1,136.1 million from HK$2,050.5 million in the prior period, yet profit for the period substantially increased to HK$189.7 million from HK$2.6 million, primarily driven by a significant rise in share of profits from joint ventures Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended September 30) | Metric | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 1,136,119 | 2,050,479 | | Cost of Sales | (701,427) | (1,518,319) | | Gross Profit | 434,692 | 532,160 | | Other Income and Gains, Net | 94,152 | 74,569 | | Selling and Distribution Expenses | (197,343) | (203,589) | | Administrative Expenses | (253,419) | (270,459) | | Net Impairment Loss on Financial Assets | (12,266) | (11,628) | | Other Expenses, Net | (54,250) | (36,208) | | Finance Costs | (173,426) | (130,910) | | Write-down of Properties Under Development | — | (5,620) | | Write-down of Properties Held for Sale | — | (16,261) | | Net Fair Value Loss on Financial Assets and Liabilities at Fair Value Through Profit or Loss | (10,606) | (23,573) | | Net Fair Value Gain on Investment Properties Owned | 1,921 | 18,599 | | Share of Profits: Joint Ventures | 377,692 | 108,362 | | Share of Profits: Associates | 1,263 | 722 | | Profit Before Tax | 208,410 | 36,164 | | Income Tax Expense | (18,696) | (33,541) | | Profit for the Period | 189,714 | 2,623 | | Profit/(Loss) Attributable to Owners of the Parent | 110,968 | (23,613) | | Profit Attributable to Non-controlling Interests | 78,746 | 26,236 | | Total Comprehensive Loss for the Period | (71,528) | (460,314) | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of September 30, 2023, the Group's total assets slightly increased to HK$18,464.0 million from HK$18,387.1 million, while net assets marginally decreased to HK$9,250.5 million from HK$9,379.4 million, with total current liabilities at HK$5,073.0 million and non-current liabilities at HK$4,140.5 million Condensed Consolidated Statement of Financial Position (As at September 30) | Metric | September 30, 2023 (HK$ Thousand) | March 31, 2023 (HK$ Thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 1,121,267 | 1,195,656 | | Investment Properties | 3,560,996 | 3,764,015 | | Properties Under Development | 2,135,674 | 1,992,527 | | Interests in Joint Ventures | 4,084,869 | 3,638,403 | | Financial Assets at Fair Value Through Other Comprehensive Income | 195,451 | 323,376 | | Financial Assets at Fair Value Through Profit or Loss | 208,802 | 201,934 | | Total Non-current Assets | 11,649,401 | 11,414,567 | | **Current Assets** | | | | Properties Under Development | 3,021,297 | 2,436,349 | | Properties Held for Sale | 1,190,980 | 1,484,068 | | Inventories | 307,947 | 209,607 | | Trade Receivables | 96,230 | 93,022 | | Loans and Interest Receivables | 308,861 | 290,862 | | Cash and Bank Balances | 1,121,245 | 1,570,628 | | Total Current Assets | 6,814,595 | 6,972,503 | | **Total Assets** | 18,463,996 | 18,387,070 | | **Current Liabilities** | | | | Trade Payables | 188,614 | 155,151 | | Other Payables and Accruals | 1,003,686 | 1,024,273 | | Contract Liabilities | 171,887 | 219,225 | | Interest-bearing Bank and Other Borrowings | 3,518,723 | 3,176,660 | | Total Current Liabilities | 5,073,023 | 4,686,727 | | **Non-current Liabilities** | | | | Interest-bearing Bank and Other Borrowings | 2,938,699 | 2,944,719 | | Deferred Tax Liabilities | 563,932 | 611,887 | | Total Non-current Liabilities | 4,140,515 | 4,320,977 | | **Net Assets** | 9,250,458 | 9,379,366 | | **Total Equity** | 9,250,458 | 9,379,366 | [Notes to the Condensed Consolidated Interim Financial Information](index=7&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section provides detailed notes explaining the basis of preparation, changes in accounting policies, segment information, and specific financial line items [Basis of Preparation](index=7&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This condensed consolidated interim financial information is prepared in accordance with HKAS 34 and Appendix 16 of the Listing Rules, using the historical cost convention, except for investment properties and certain financial assets measured at fair value, with all figures presented in HK dollars and rounded to the nearest thousand - This condensed consolidated interim financial information is prepared in accordance with **Hong Kong Accounting Standard 34** and the disclosure requirements of **Appendix 16 of the Listing Rules**[50](index=50&type=chunk) - The financial information is prepared on the historical cost basis, except for investment properties, financial assets at fair value through other comprehensive income, and financial assets and liabilities at fair value through profit or loss, which are measured at fair value[51](index=51&type=chunk) - All figures are presented in **Hong Kong dollars** and, unless otherwise stated, are rounded to the nearest thousand[51](index=51&type=chunk) [Changes in Accounting Policies and Disclosures](index=8&type=section&id=%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E5%8F%8A%E6%8A%AB%E9%9C%B2%E4%B9%8B%E8%AE%8A%E5%8B%95) The Group adopted several new and revised HKFRSs, including amendments to HKAS 1, 8, and 12, primarily affecting accounting policy disclosures, the definition of accounting estimates, and deferred tax recognition, with no material impact on the Group's financial position or performance as existing policies align or fall outside the scope of these revisions [HKAS 1 (Amendments)](index=8&type=section&id=%E9%A6%99%E6%B8%AF%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E7%AC%AC1%E8%99%9F%EF%BC%88%E4%BF%AE%E8%A8%82%EF%BC%89) HKAS 1 (Amendments) requires entities to disclose material accounting policy information instead of significant accounting policies, applied by the Group from April 1, 2023, impacting annual consolidated financial statements' disclosures but not the interim condensed consolidated financial information - HKAS 1 (Amendments) requires entities to disclose **material accounting policy information** instead of significant accounting policies[52](index=52&type=chunk) - The Group has applied these amendments from **April 1, 2023**, which are expected to affect the accounting policy disclosures in the Group's annual consolidated financial statements but have no impact on the unaudited condensed consolidated interim financial information[52](index=52&type=chunk) [HKAS 8 (Amendments)](index=8&type=section&id=%E9%A6%99%E6%B8%AF%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E7%AC%AC8%E8%99%9F%EF%BC%88%E4%BF%AE%E8%A8%82%EF%BC%89) HKAS 8 (Amendments) clarifies the distinction between changes in accounting estimates and policies, defining estimates as monetary amounts in financial statements subject to measurement uncertainty, applied by the Group from April 1, 2023, with no impact due to consistent accounting estimate policies - HKAS 8 (Amendments) clarifies the distinction between changes in accounting estimates and changes in accounting policies, defining an accounting estimate as a **monetary amount in financial statements that is subject to measurement uncertainty**[39](index=39&type=chunk) - The Group has applied the amendments to accounting policy changes and accounting estimate changes occurring on or after **April 1, 2023**, but these amendments have had **no impact** on the Group's financial position or performance as the Group's policies for determining accounting estimates are consistent with these amendments[39](index=39&type=chunk) [HKAS 12 (Amendments) Single Transaction](index=9&type=section&id=%E9%A6%99%E6%B8%AF%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E7%AC%AC12%E8%99%9F%EF%BC%88%E4%BF%AE%E8%A8%82%EF%BC%89%E5%96%AE%E4%B8%80%E4%BA%A4%E6%98%93) HKAS 12 (Amendments) narrows the scope of initial recognition exemption, requiring entities to recognize deferred tax assets and liabilities for equal taxable and deductible temporary differences arising from transactions like leases and decommissioning liabilities, with no significant impact on the Group's net deferred tax position or financial performance - HKAS 12 (Amendments) narrows the scope of the initial recognition exemption, so that it **no longer applies to transactions that give rise to equal taxable and deductible temporary differences** (e.g., leases and decommissioning liabilities)[53](index=53&type=chunk) - These amendments have had **no significant impact** on the net deferred tax asset and deferred tax liability position or the Group's financial position or performance[53](index=53&type=chunk) [HKAS 12 (Amendments) International Tax Reform](index=9&type=section&id=%E9%A6%99%E6%B8%AF%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E7%AC%AC12%E8%99%9F%EF%BC%88%E4%BF%AE%E8%A8%82%EF%BC%89%E5%9C%8B%E9%9A%9B%E7%A8%85%E5%8B%99%E6%94%B9%E9%9D%A9) HKAS 12 (Amendments) introduces a mandatory temporary exception and disclosure requirements for deferred taxes arising from OECD Pillar Two model rules, applied retrospectively by the Group, with no impact as the Group falls outside the scope of these rules - HKAS 12 (Amendments) introduces a **mandatory temporary exception** to the recognition and disclosure of deferred taxes arising from the implementation of the Pillar Two model rules issued by the Organisation for Economic Co-operation and Development[40](index=40&type=chunk) - The Group has applied these amendments retrospectively, and as the Group is **not within the scope of the Pillar Two model rules**, these amendments have had **no impact** on the Group[40](index=40&type=chunk) [Operating Segment Information](index=9&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group's operating segments include property development, property investment, wet markets, pharmaceutical products, and treasury management, with performance assessed by adjusted profit before tax, excluding bank interest income, finance costs, fair value losses on financial assets, and head office expenses, and inter-segment sales transacted at market prices [Definition of Operating Segments](index=9&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%A1%9E%E5%AE%9A%E7%BE%A9) The Group's five reportable operating segments are property development, property investment (investing in industrial and commercial properties and residential units for rental income or sales profit), wet markets (management and sub-leasing of wet markets and slaughtering businesses, including agricultural product trading markets in Mainland China), pharmaceutical products (production and sale of pharmaceutical and health food products), and treasury management (financing, investment, and asset management of debt and other securities for interest income) - The Group's five reportable operating segments are: **Property Development, Property Investment, Wet Markets, Pharmaceutical Products, and Treasury Management**[54](index=54&type=chunk)[83](index=83&type=chunk) - The Property Development segment refers to the **development of properties**[54](index=54&type=chunk) - The Property Investment segment refers to the **investment in industrial and commercial properties and residential units** for rental income or sales profit[83](index=83&type=chunk) - The Wet Markets segment refers to the **management and sub-leasing of wet markets and slaughtering businesses**, which also includes the management of agricultural product trading markets in Mainland China[41](index=41&type=chunk) - The Pharmaceutical Products segment refers to the **production and sale of pharmaceutical and health food products**[54](index=54&type=chunk) - The Treasury Management segment refers to **financing, investment in debt and other securities for interest income**, and asset management through investment vehicles on behalf of the Group's capital partners[83](index=83&type=chunk) [Reportable Segment Information](index=10&type=section&id=%E5%8F%AF%E5%A0%B1%E5%91%8A%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) For the six months ended September 30, 2023, external customer sales revenue for the property development segment significantly decreased to HK$375.1 million from HK$1,358.2 million, while pharmaceutical products' external sales increased to HK$365.4 million from HK$298.7 million, and treasury management's segment result shifted from a loss of HK$14.3 million to a profit of HK$29.7 million Segment Revenue and Results for the Six Months Ended September 30 | Segment | 2023 External Sales (HK$ Thousand) | 2022 External Sales (HK$ Thousand) | 2023 Segment Results (HK$ Thousand) | 2022 Segment Results (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Property Development | 375,110 | 1,358,229 | 10,105 | 129,995 | | Property Investment | 2,955 | 5,406 | 365,476 | 80,521 | | Pharmaceutical Products | 365,388 | 298,653 | 57,721 | 100,257 | | Wet Markets | 332,707 | 331,272 | 29,692 | (14,269) | | Treasury Management | 59,959 | 56,919 | (18,242) | (32,315) | | Total | 1,136,119 | 2,050,479 | 444,752 | 264,189 | [Revenue, Other Income and Gains, Net](index=11&type=section&id=%E6%94%B6%E5%85%A5%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%E6%B7%A8%E9%A1%8D) Total revenue for the period was HK$1,136.1 million, primarily from sales of goods (HK$426.3 million) and property sales (HK$375.1 million), a significant decrease from HK$2,050.5 million in the prior period, while other income and gains, net, increased to HK$94.2 million, mainly due to higher bank interest income and government grants [Revenue Analysis](index=11&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) For the six months ended September 30, 2023, the Group's total revenue was HK$1,136.1 million, primarily from sales of goods (HK$426.3 million) and property sales (HK$375.1 million), with a significant decrease in property sales revenue and an increase in goods sales revenue compared to the prior period Revenue Sources (For the Six Months Ended September 30) | Revenue Source | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Sales of Properties | 375,110 | 1,358,229 | | Sales of Goods | 426,250 | 349,762 | | Commission Income from Operating Agricultural Product Trading Markets | 45,136 | 51,505 | | Ancillary Services for Agricultural Product Trading Markets | 44,752 | 47,390 | | Provision of Asset Management Services | 26,185 | 9,107 | | Interest Income from Treasury Business | 32,171 | 42,693 | | Sub-leasing Income | 93,537 | 85,961 | | Gross Rental Income from Operating Leases of Investment Properties | 91,375 | 100,713 | | Dividend Income from Financial Assets | 2,250 | 6,107 | | Loss on Disposal of Financial Assets at Fair Value Through Profit or Loss | (647) | (988) | | **Total Revenue** | **1,136,119** | **2,050,479** | - For the six months ended September 30, 2023, total revenue from contracts with customers was **HK$917,433 thousand**, with **HK$375,110 thousand from sales of properties** and **HK$365,388 thousand from sales of goods**[87](index=87&type=chunk) - For the six months ended September 30, 2022, total revenue from contracts with customers was **HK$1,815,993 thousand**, with **HK$1,358,229 thousand from sales of properties** and **HK$298,653 thousand from sales of goods**[61](index=61&type=chunk) [Other Income and Gains, Net Analysis](index=14&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%E6%B7%A8%E9%A1%8D%E5%88%86%E6%9E%90) Other income and gains, net, for the period increased to HK$94.2 million from HK$74.6 million in the prior period, primarily driven by higher bank interest income (HK$9.2 million vs HK$3.2 million) and gains from disposal of property, plant and equipment (HK$13.3 million), while government grants decreased from HK$4.7 million to HK$1.2 million Other Income and Gains, Net Analysis (For the Six Months Ended September 30) | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Bank Interest Income | 9,217 | 3,162 | | Management Fee Income | 6,158 | 6,419 | | Forfeiture of Customers' Deposits | 4,992 | 4,655 | | Government Subsidies | 1,180 | 4,739 | | Others | 49,950 | 39,906 | | Gain on Disposal of a Subsidiary | — | 14,551 | | Gain on Early Redemption of Unsecured Notes | 7,903 | 774 | | Gain on Modification/Termination of Lease Contracts | 1,410 | — | | Gain on Disposal of Investment Properties | — | 363 | | Gain on Disposal of Property, Plant and Equipment Items | 13,330 | — | | Net Gain on Disposal/Redemption of Financial Assets at Fair Value Through Other Comprehensive Income | 12 | — | | **Total Other Income and Gains, Net** | **94,152** | **74,569** | [Finance Costs](index=15&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the six months ended September 30, 2023, the Group's finance costs increased to HK$173.4 million from HK$130.9 million in the prior period, primarily due to higher interest on bank and other borrowings (HK$204.2 million vs HK$123.3 million), partially offset by increased capitalized interest Finance Costs Analysis (For the Six Months Ended September 30) | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Interest on Bank and Other Borrowings | 204,245 | 123,260 | | Interest on Lease Liabilities | 25,153 | 21,983 | | Interest on Unsecured Notes | 5,552 | 12,153 | | **Total Finance Costs** | **234,950** | **157,396** | | Less: Interest Capitalized | (61,524) | (26,486) | | **Net Finance Costs** | **173,426** | **130,910** | [Profit Before Tax](index=16&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) The Group's profit before tax includes various expenses and gains such as cost of services, property sales cost, inventory cost, depreciation, net impairment losses, and net exchange differences, with a significant increase in net impairment loss on property, plant and equipment to HK$48.8 million from HK$8.5 million in the prior period Items Deducted From/(Credited To) Profit Before Tax (For the Six Months Ended September 30) | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Cost of Services Provided | 100,067 | 101,823 | | Cost of Properties Sold | 302,892 | 1,158,784 | | Cost of Inventories Recognized as Expense | 218,026 | 197,641 | | Depreciation of Owned Assets | 28,859 | 30,779 | | Depreciation of Right-of-use Assets | 40,343 | 40,234 | | Net Loss/(Gain) on Disposal of Property, Plant and Equipment | (13,330) | 320 | | Loss/(Gain) on Disposal of a Subsidiary | 2,665 | (14,551) | | Fair Value Loss on Sub-leased Investment Properties | 80,214 | 59,979 | | Net Impairment Loss on Property, Plant and Equipment Items | 48,809 | 8,474 | | Net Loss/(Gain) on Disposal/Redemption of Financial Assets at Fair Value Through Other Comprehensive Income | (12) | 23,027 | | Net Impairment Loss on Financial Assets | 12,266 | 11,628 | | Net Exchange Differences | 2,776 | 4,387 | | Direct Operating Expenses Arising from Investment Properties That Generated Rental Income | 228 | 92 | - For the six months ended September 30, 2022, wage subsidies of **HK$17,556,000** granted under the Employment Support Scheme of the Anti-epidemic Fund were received and recognized in "Administrative expenses" to offset employee benefit expenses[68](index=68&type=chunk) [Income Tax](index=17&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) The Group's income tax expense, comprising Hong Kong profits tax, corporate income tax in other jurisdictions, and PRC Land Appreciation Tax, decreased to HK$18.7 million for the six months ended September 30, 2023, from HK$33.5 million in the prior period, mainly due to increased deferred tax credits and reduced PRC tax expenses Income Tax Expense (For the Six Months Ended September 30) | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Current — Hong Kong | 7,912 | 9,820 | | Current — Expense for the Period in Other Jurisdictions | 9,551 | 19,403 | | Land Appreciation Tax | 9,436 | 4,846 | | Deferred | (8,203) | (528) | | **Total Tax Expense for the Period** | **18,696** | **33,541** | - Hong Kong profits tax is provided at a rate of **16.5%** on the estimated assessable profit for the period[22](index=22&type=chunk) - PRC Land Appreciation Tax is provided at a **progressive tax rate range** on the appreciation value[22](index=22&type=chunk) [Earnings/(Loss) Per Share Attributable to Owners of the Parent](index=17&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E8%82%A1%E6%AC%8A%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%94%E6%BA%A2%E5%88%A9%E2%88%95%EF%BC%88%E虧%E6%90%8D%EF%BC%89) For the six months ended September 30, 2023, profit attributable to owners of the parent was HK$111.0 million, with basic and diluted earnings per share of HK$0.81 cents, a significant improvement from a loss of HK$23.6 million and HK$0.17 cents per share in the prior period, with no dilutive effect from China Agri-Products' share options Calculation of Basic and Diluted Earnings/(Loss) Per Share (For the Six Months Ended September 30) | Item | 2023 (HK$ Thousand/Thousand Shares) | 2022 (HK$ Thousand/Thousand Shares) | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Owners of the Parent | 110,968 | (23,613) | | Weighted Average Number of Ordinary Shares in Issue | 15,355,711 | 15,977,520 | | Less: Weighted Average Number of Treasury Shares | (1,716,749) | (1,716,749) | | Weighted Average Number of Ordinary Shares for Basic and Diluted Earnings/(Loss) Per Share Calculation | 13,638,962 | 14,260,771 | | Basic and Diluted Earnings/(Loss) Per Share (HK Cents) | 0.81 | (0.17) | - The share options issued by China Agri-Products had **no dilutive effect** on the basic earnings/(loss) per share amounts presented[96](index=96&type=chunk) [Loans and Interest Receivables](index=19&type=section&id=%E6%87%89%E6%94%B6%E8%B2%B8%E6%AC%BE%E5%8F%8A%E5%88%A9%E6%81%AF) As of September 30, 2023, the Group's total loans and interest receivables amounted to HK$337.9 million, with a current portion of HK$308.9 million; secured loans are accounted for at effective annual interest rates of 5% to 27%, and unsecured loans at 1% to 33%, with some overdue loans classified as Stage 2 or 3 reflecting expected credit losses Loans and Interest Receivables (As at September 30) | Item | 2023 (HK$ Thousand) | March 31, 2023 (HK$ Thousand) | | :--- | :--- | :--- | | Loans and Interest Receivables, Secured | 325,260 | 309,108 | | Loans and Interest Receivables, Unsecured | 85,747 | 79,074 | | **Total** | **411,007** | **388,182** | | Less: Impairment Allowance | (73,153) | (75,723) | | **Net** | **337,854** | **312,459** | | Less: Loans and Interest Receivables Classified as Non-current Assets | (28,993) | (21,597) | | **Current Portion** | **308,861** | **290,862** | - Secured loans and interest receivables are accounted for at amortized cost with effective annual interest rates ranging from **5% to 27%**, and credit periods ranging from **1 month to 10 years**[127](index=127&type=chunk) - Unsecured loans and interest receivables are accounted for at amortized cost with effective annual interest rates ranging from **1% to 33%**, and credit periods ranging from **1 month to 72 months**[99](index=99&type=chunk) - As of September 30, 2023, **HK$52,319 thousand** and **HK$138,090 thousand** of loans and interest receivables were overdue and classified as **Stage 2 and Stage 3** respectively, for the assessment of expected credit losses[128](index=128&type=chunk) [Trade Receivables](index=20&type=section&id=%E6%87%89%E6%94%B6%E8%B3%A6%E6%AC%BE) As of September 30, 2023, the Group's net trade receivables slightly increased to HK$96.2 million from HK$93.0 million, with strict credit risk control and regular review of overdue balances, and trade receivables are interest-free with no significant concentration of credit risk Trade Receivables (As at September 30) | Item | 2023 (HK$ Thousand) | March 31, 2023 (HK$ Thousand) | | :--- | :--- | :--- | | Trade Receivables | 120,072 | 117,166 | | Less: Accumulated Impairment | (23,842) | (24,144) | | **Net** | **96,230** | **93,022** | Ageing Analysis of Trade Receivables (As at September 30) | Ageing | 2023 (HK$ Thousand) | March 31, 2023 (HK$ Thousand) | | :--- | :--- | :--- | | Within 1 Month | 57,285 | 48,599 | | 1 to 3 Months | 17,295 | 24,898 | | Over 3 Months but Within 6 Months | 17,216 | 12,864 | | Over 6 Months | 4,434 | 6,661 | | **Total** | **96,230** | **93,022** | - The Group's credit period generally ranges from **7 to 120 days**, and credit limits are reviewed regularly to maintain strict control and minimize credit risk[129](index=129&type=chunk) [Trade Payables](index=21&type=section&id=%E6%87%89%E4%BB%98%E8%B3%A6%E6%AC%BE) As of September 30, 2023, the Group's trade payables increased to HK$188.6 million from HK$155.2 million, with interest-free terms and average credit periods ranging from 30 to 360 days, and the Group has established financial risk management policies to ensure timely payment of all payables within credit terms Ageing Analysis of Trade Payables (As at September 30) | Ageing | 2023 (HK$ Thousand) | March 31, 2023 (HK$ Thousand) | | :--- | :--- | :--- | | Within 1 Month | 126,014 | 104,921 | | 1 to 3 Months | 17,374 | 11,236 | | Over 3 Months but Within 6 Months | 2,976 | 1,117 | | Over 6 Months | 42,250 | 37,877 | | **Total** | **188,614** | **155,151** | - Trade payables are **interest-free** and have an average credit period ranging from **30 to 360 days**[103](index=103&type=chunk) - The Group has established financial risk management policies to ensure that all payables are paid within the credit period[103](index=103&type=chunk) [Comparative Amounts](index=21&type=section&id=%E6%AF%94%E8%BC%83%E9%87%91%E9%A1%8D) The Group has reclassified certain comparative amounts to conform with the current period's presentation and disclosure - Certain comparative amounts have been **reclassified** to conform with the current period's presentation and disclosure[131](index=131&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides an in-depth analysis of the Group's financial performance, business operations, liquidity, and future outlook [Financial Results](index=22&type=section&id=%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE) For the six months ended September 30, 2023, the Group's revenue decreased by 44.6% to HK$1,136.1 million, primarily due to fewer property development project deliveries; despite this, profit attributable to owners of the parent turned from a loss of HK$23.6 million to a profit of HK$111.0 million, mainly driven by increased share of joint venture results and pharmaceutical sales growth, partially offset by higher finance costs [Revenue](index=22&type=section&id=%E6%94%B6%E5%85%A5) The Group's revenue for the period decreased by approximately 44.6% to about HK$1,136.1 million, primarily due to reduced sales from property development projects where the Group holds controlling interests - The Group's revenue for the period decreased by approximately **44.6% to approximately HK$1,136.1 million** (six months ended September 30, 2022: approximately HK$2,050.5 million)[21](index=21&type=chunk) - The decrease in revenue was primarily due to **reduced sales from property development projects** where the Group holds controlling interests during the period[21](index=21&type=chunk) [Gross Profit and Gross Profit Margin](index=22&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) The Group recorded a gross profit of approximately HK$434.7 million with a gross profit margin of 38.3% for the period, a change from HK$532.2 million and 26.0% in the prior period, with the decrease in gross profit mainly attributable to fewer property project deliveries Gross Profit and Gross Profit Margin (For the Six Months Ended September 30) | Metric | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Gross Profit | 434.7 | 532.2 | | Gross Profit Margin | 38.3% | 26.0% | - The decrease in gross profit was mainly due to **fewer property project deliveries** during the period[135](index=135&type=chunk) [Profit/(Loss) Attributable to Owners of the Parent](index=22&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%AC%8A%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%94%E6%BA%A2%E5%88%A9%E2%88%95%EF%BC%88%E虧%E6%90%8D%EF%BC%89) Profit attributable to owners of the parent for the period was approximately HK$111.0 million, a significant improvement from a loss of HK$23.6 million in the prior period, primarily driven by increased share of joint venture results and higher sales and gross profit from pharmaceutical and health food products, partially offset by reduced gross profit from fewer property project deliveries and increased finance costs Profit/(Loss) Attributable to Owners of the Parent (For the Six Months Ended September 30) | Metric | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Owners of the Parent | 111.0 | (23.6) | - The increase in profit was mainly due to **(i) an increase in the share of results of joint ventures**, and **(ii) an increase in sales and gross profit generated from the production and sale of pharmaceutical and health food products**[106](index=106&type=chunk) - This was partially offset by **(a) a decrease in gross profit due to fewer property project deliveries** and **(b) an increase in finance costs** compared to the same period in 2022 due to rising interest rates[106](index=106&type=chunk) [Other Income and Gains, Net](index=22&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%E6%B7%A8%E9%A1%8D) Other income and gains, net, for the period increased to approximately HK$94.2 million from HK$74.6 million in the prior period, primarily due to gains from the disposal of property, plant and equipment items Other Income and Gains, Net (For the Six Months Ended September 30) | Metric | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Other Income and Gains, Net | 94.2 | 74.6 | - The increase was mainly due to **gains from the disposal of property, plant and equipment items**[107](index=107&type=chunk) [Expenses](index=23&type=section&id=%E8%B2%BB%E7%94%A8) Administrative expenses of approximately HK$253.4 million, selling and distribution expenses of HK$197.3 million, and net impairment loss on financial assets of HK$12.3 million remained stable and controlled compared to the prior period, while other expenses of HK$54.3 million increased primarily due to higher impairment losses on property, plant and equipment Key Expenses (For the Six Months Ended September 30) | Expense Category | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Administrative Expenses | 253.4 | 270.5 | | Selling and Distribution Expenses | 197.3 | 203.6 | | Net Impairment Loss on Financial Assets | 12.3 | 11.6 | | Other Expenses | 54.3 | 36.2 | - The increase in other expenses was mainly due to **increased impairment losses on property, plant and equipment**[25](index=25&type=chunk) [Net Fair Value Loss on Financial Assets and Liabilities](index=23&type=section&id=%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2%E5%8F%8A%E8%B2%A0%E5%82%B5%E5%85%AC%E5%B9%B3%E5%80%BC%E虧%E6%90%8D%E6%B7%A8%E9%A1%8D) Net fair value loss on financial assets and liabilities at fair value through profit or loss for the period decreased to approximately HK$10.6 million from HK$23.6 million in the prior period, primarily due to reduced fair value losses on fund investments Net Fair Value Loss on Financial Assets and Liabilities (For the Six Months Ended September 30) | Metric | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Net Fair Value Loss | 10.6 | 23.6 | - The decrease was mainly due to **reduced fair value losses on financial assets at fair value through profit or loss**, primarily fund investments[109](index=109&type=chunk) [Property Write-downs](index=23&type=section&id=%E7%89%A9%E6%A5%AD%E6%92%B2%E6%B8%9B) There were no write-downs of properties under development or properties held for sale during the period, compared to write-downs of approximately HK$5.6 million for properties under development and HK$16.3 million for properties held for sale in the prior period Property Write-downs (For the Six Months Ended September 30) | Item | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Write-down of Properties Under Development | — | 5.6 | | Write-down of Properties Held for Sale | — | 16.3 | - The write-down of properties under development in the same period of 2022 related to a **property under development in Hong Kong**[110](index=110&type=chunk) - The write-down of properties held for sale in the same period of 2022 related to a **commercial property held for sale in Hong Kong** and **two agricultural product trading markets in Mainland China**[139](index=139&type=chunk) [Net Fair Value Gain on Investment Properties](index=23&type=section&id=%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD%E5%85%AC%E5%B9%B3%E5%80%BC%E6%94%B6%E7%9B%8A%E6%B7%A8%E9%A1%8D) Net fair value gain on investment properties owned for the period was approximately HK$1.9 million, a decrease from HK$18.6 million in the prior period, primarily due to reduced net fair value gains on several investment properties in Mainland China Net Fair Value Gain on Investment Properties (For the Six Months Ended September 30) | Metric | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Net Fair Value Gain | 1.9 | 18.6 | - The decrease was mainly due to **reduced net fair value gains on several investment properties in Mainland China**[138](index=138&type=chunk) [Share of Profits of Joint Ventures](index=23&type=section&id=%E6%87%89%E4%BD%94%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E6%BA%A2%E5%88%A9) Share of profits of joint ventures for the period significantly increased to approximately HK$377.7 million from HK$108.4 million in the prior period, primarily due to increased profit contributions from the commercial portfolio Share of Profits of Joint Ventures (For the Six Months Ended September 30) | Metric | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Share of Profits of Joint Ventures | 377.7 | 108.4 | - The increase was mainly due to **increased profit contributions from the commercial portfolio**[111](index=111&type=chunk) [Finance Costs](index=23&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs for the period increased to approximately HK$173.4 million from HK$130.9 million in the prior period, primarily due to higher interest expenses Finance Costs (For the Six Months Ended September 30) | Metric | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Finance Costs | 173.4 | 130.9 | - The increase was mainly due to **higher interest expenses**[137](index=137&type=chunk) [Income Tax Expense](index=24&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense for the period decreased to approximately HK$18.7 million from HK$33.5 million in the prior period, primarily due to increased deferred tax credits and reduced PRC tax expenses Income Tax Expense (For the Six Months Ended September 30) | Metric | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Income Tax Expense | 18.7 | 33.5 | - The decrease was mainly due to **increased deferred tax credits** and **reduced PRC tax expenses** during the period compared to the same period in 2022[112](index=112&type=chunk) [Business Review](index=24&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's business review covers five segments: property development, wet markets and agricultural product trading markets, property investment, pharmaceutical and health food products, and treasury management, with property development revenue declining due to fewer Hong Kong project deliveries but slight growth in China, stable wet market revenue and expansion in China's agricultural product trading markets, diversified property investment including joint ventures, a 22.3% increase in total pharmaceutical business revenue with significant progress in both Chinese and Western medicine products, and a decrease in treasury management's lending business revenue offset by an increase in asset management services revenue due to new managed assets [Property Development](index=24&type=section&id=%E7%89%A9%E6%A5%AD%E7%99%BC%E5%B1%95) Property development segment revenue primarily derives from Wang On Properties Group's residential and commercial property sales in Hong Kong and China Agri-Products Group's property sales in China, with Hong Kong property development revenue significantly decreasing due to fewer deliveries, while China property development revenue slightly increased due to more deliveries [Hong Kong Property Development](index=25&type=section&id=%E9%A6%99%E6%B8%AF%E7%89%A9%E6%A5%AD%E7%99%BC%E5%B1%95) Wang On Properties Group's property development segment contributed approximately HK$258.4 million in revenue for the period, primarily from sales of 'The Met. Azure' and 'LADDER Dundas', a significant decrease from HK$1,250.0 million in the prior period Wang On Properties Group Property Development Segment Contribution to Revenue (For the Six Months Ended September 30) | Item | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Wang On Properties Group Property Development Segment Contribution to Revenue | 258.4 | 1,250.0 | - Revenue was mainly due to the recognition of sales from **"The Met. Azure"** and **"LADDER Dundas"**[114](index=114&type=chunk) [China Property Development](index=25&type=section&id=%E4%B8%AD%E5%9C%8B%E7%89%A9%E6%A5%AD%E7%99%BC%E5%B1%95) The Group's property development business in China (through China Agri-Products Group) recorded revenue of approximately HK$116.7 million for the period, a slight increase from HK$108.2 million in the prior period, primarily due to increased deliveries of properties for sale China Property Development Business Revenue (For the Six Months Ended September 30) | Item | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | China Property Development Business Revenue | 116.7 | 108.2 | - The slight increase in revenue was mainly due to **increased deliveries of properties for sale** during the period compared to the same period in 2022[144](index=144&type=chunk) [Development Land Portfolio](index=25&type=section&id=%E7%99%BC%E5%B1%95%E7%94%A8%E5%9C%B0%E7%B5%84%E5%90%88) Wang On Properties Group's development land portfolio comprises various residential and commercial projects in Hong Kong with expected completion years ranging from 2023 to 2028, and the Group actively seeks to increase land bank through public tenders and acquisition of old buildings Wang On Properties Group Development Land Portfolio (As at the Date of this Announcement) | Location | Approximate Site Area (sq. ft.) | Approximate Gross Floor Area (sq. ft.) | Intended Use | Expected Completion Year | | :--- | :--- | :--- | :--- | :--- | | Pok Fu Lam Project | 28,500 | 28,500 | Residential | 2023 | | Tai Kok Tsui Project | 6,800 | 61,500 | Residential and Commercial | 2024 | | Ap Lei Chau Project I | 7,200 | 74,200 | Residential and Commercial | 2025 | | Ap Lei Chau Project II | 4,100 | 38,500 | Residential and Commercial | 2025 | | Wong Tai Sin Project I | 9,600 | 81,300 | Residential and Commercial | 2025 | | Wong Tai Sin Project II | 10,400 | 93,700 | Residential and Commercial | 2025 | | Ngau Tau Kok Project | 5,200 | 46,300 | Residential and Commercial | 2025 | | Fortress Hill Project | 12,400 | 131,600 | Residential and Commercial | 2026 | | Quarry Bay Project | 4,200 | 39,100 | Residential and Commercial | 2026 | | Ap Lei Chau Project III | 6,600 | 68,800 | Residential and Commercial | 2027 | | Yau Tong Project | 41,700 | 269,000 | Residential and Commercial | 2028 | - Wang On Properties Group is actively seeking various channels to **increase its land bank**, including participating in public tenders and acquiring old buildings[146](index=146&type=chunk) [Wet Markets and Agricultural Product Trading Markets](index=26&type=section&id=%E8%A1%97%E5%B8%82%E5%8F%8A%E8%BE%B2%E7%94%A2%E5%93%81%E4%BA%A4%E6%98%93%E5%B8%82%E5%A0%B4) The Group, with over two decades of experience in wet markets and agricultural product trading markets, saw segment revenue slightly increase by 0.4% to approximately HK$332.7 million for the period, primarily contributed by China Agri-Products Group (HK$193.8 million) and Hong Kong wet market operations (HK$138.9 million), with stable slaughtering business revenue and a renewed lease for the Chung On Shopping Centre wet market [Hong Kong Wet Market Operations](index=26&type=section&id=%E9%A6%99%E6%B8%AF%E8%A1%97%E5%B8%82%E7%87%9F%E9%81%8B) The Group manages approximately 600 stalls under the 'Man Yau' and 'Daily Fresh' brands in Hong Kong, totaling over 150,000 sq. ft. of floor area, enhancing the shopping environment and strengthening relationships with tenants and local communities through thoughtful layout design, improvement works, and quality management services - The Group manages approximately **600 stalls** under the "Man Yau" and "Daily Fresh" brands in Hong Kong, with a total floor area of **over 150,000 sq. ft.**[117](index=117&type=chunk) - The Group aims to provide a more comfortable and spacious shopping environment and strengthen relationships with tenants and local communities through thoughtful layout design, improvement works, and quality management services[117](index=117&type=chunk) - The Group received notification from Link Properties Limited agreeing to **renew the lease for Chung On Shopping Centre wet market** for a term of **six years**, until January 31, 2029[174](index=174&type=chunk) [Slaughtering Business](index=27&type=section&id=%E5%B1%A0%E5%AE%B0%E6%A5%AD%E5%8B%99) The slaughtering business generated stable revenue of approximately HK$35.1 million for the period, consistent with HK$35.0 million in the prior period, with 18 operational meat stalls as of September 30, 2023, and the Group considers this business to have low development risk Slaughtering Business Revenue (For the Six Months Ended September 30) | Item | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Slaughtering Business Revenue | 35.1 | 35.0 | - As of September 30, 2023, there were **18 operational meat stalls**[118](index=118&type=chunk) [China Agricultural Product Trading Markets](index=27&type=section&id=%E4%B8%AD%E5%9C%8B%E8%BE%B2%E7%94%A2%E5%93%81%E4%BA%A4%E6%98%93%E5%B8%82%E5%A0%B4) The Group, through China Agri-Products Group, operates 11 agricultural product trading markets across five provinces in China, significantly expanding its business scope and establishing a solid position in the industry, providing a foundation for future sustained development and expansion - The Group currently operates **11 agricultural product trading markets** across **five provinces in China** through China Agri-Products Group[175](index=175&type=chunk) - The acquisition of these agricultural product trading markets has significantly expanded the Group's business in the wet markets and agricultural product trading markets segment in China, providing a **solid foundation for future sustained development and expansion**[175](index=175&type=chunk) [Property Investment](index=27&type=section&id=%E7%89%A9%E6%A5%AD%E6%8A%95%E8%B3%87) The Group's property investment portfolio includes owned investment properties and several joint venture projects, with owned investment properties totaling approximately HK$3,561.0 million in book value as of September 30, 2023, and joint venture properties like Tuen Mun Tin Sang Building, Ma On Shan 'Lake Silver' and Tseung Kwan O 'The Parkside' commercial properties, and Aberdeen Jumbo Court car park platform generally exhibiting high occupancy rates [Owned Investment Properties](index=27&type=section&id=%E8%87%AA%E6%9C%89%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD) As of September 30, 2023, the Group's owned investment properties in Hong Kong and China, comprising commercial, industrial, and residential units, had a total book value of approximately HK$3,561.0 million, a decrease from HK$3,764.0 million as of March 31 Total Book Value of Owned Investment Properties (As at September 30) | Item | 2023 (HK$ Million) | March 31, 2023 (HK$ Million) | | :--- | :--- | :--- | | Total Book Value of Owned Investment Properties | 3,561.0 | 3,764.0 | [Joint Venture Property Investments](index=28&type=section&id=%E5%90%88%E8%B3%87%E4%BC%81%E6%A5%AD%E7%89%A9%E6%A5%AD%E6%8A%95%E8%B3%87) Wang On Properties Group participates in several joint venture property investments, including a 64% interest in the Tuen Mun Tin Sang Building joint venture, which is fully leased with some shop units sold; commercial properties 'Lake Silver' and 'The Parkside' in partnership with KKR have been renovated, improving tenant mix and achieving 100% and over 97% occupancy rates respectively; and the Jumbo joint venture acquired the Aberdeen Jumbo Court car park platform, fully leased and expected to meet future parking demand - Wang On Properties Group holds a **64% interest in the Tin Sang Building joint venture**, which is fully leased, and **3 out of 15 shop units have been sold**[149](index=149&type=chunk) - Wang On Properties Group, in partnership with KKR, holds a **50% equity interest in two commercial properties**, "Lake Silver" in Ma On Shan and "The Parkside" in Tseung Kwan O, which have been renovated to improve tenant mix and increase rental yields, with **Lake Silver fully leased** and **The Parkside achieving an occupancy rate of over 97%**[150](index=150&type=chunk) - The Jumbo joint venture acquired an **8-story car park platform at Jumbo Court in Aberdeen**, providing **509 parking spaces**, which is expected to meet significant parking demand and is currently **fully leased**[177](index=177&type=chunk) [Second-hand Residential Properties and Property Disposals](index=28&type=section&id=%E4%BA%8C%E6%89%8B%E4%BD%8F%E5%AE%85%E7%89%A9%E6%A5%AD%E5%8F%8A%E7%89%A9%E6%A5%AD%E5%87%BA%E5%94%AE) As of September 30, 2023, the Group still holds 8 second-hand residential properties valued at approximately HK$42.8 million and will continue to seek suitable disposal opportunities, while Watsons Group completed two property disposals during the period for a total consideration of HK$137.8 million - As of September 30, 2023, the Group still held **8 second-hand residential properties** with an estimated value of approximately **HK$42.8 million**, and will continue to seek suitable opportunities for disposal[151](index=151&type=chunk) - Watsons Group completed the disposal of a company holding a property at 11/F, Po Shing Industrial Building, 13 Ko Fai Road, Kowloon, Hong Kong for **HK$71.0 million**, and the sale of a property at Shop B and part of the open area on the ground floor of 66, 68, 70 and 72 Tai Wai Road, Sha Tin, New Territories, Hong Kong for **HK$66.8 million**[178](index=178&type=chunk) [Pharmaceutical and Health Food Products Business](index=28&type=section&id=%E9%86%AB%E8%97%A5%E5%8F%8A%E4%BF%9D%E5%81%A5%E9%A3%9F%E5%93%81%E7%94%A2%E5%93%81%E6%A5%AD%E5%8B%99) Total revenue for the pharmaceutical and health food products segment grew by approximately 22.3% to HK$365.4 million for the period, with Chinese medicine and health food products revenue significantly increasing by 23.8% alongside the establishment of a central decoction center and R&D collaboration with Hong Kong Polytechnic University; Western medicine and health food products revenue rose by 10.3%, with flagship brand 'Madame Pearl's' retaining its top cough syrup sales position and 'Pett's' mosquito repellent products performing well, while e-commerce and China market channels are actively being developed [Chinese Medicine and Health Food Products](index=29&type=section&id=%E4%B8%AD%E8%97%A5%E5%8F%8A%E4%BF%9D%E5%81%A5%E9%A3%9F%E5%93%81%E7%94%A2%E5%93%81) Revenue from Chinese medicine and health food products segment significantly increased by approximately 23.8% to HK$329.0 million, with Watsons Group establishing a central decoction center, expanding retail stores, entering e-commerce platforms, and collaborating with Hong Kong Polytechnic University on new product development like Cordyceps Cs4 Nano Selenium, earning Watsons the 'Most Frequently Used Chinese Health Product Brand in the Past 12 Months' award Chinese Medicine and Health Food Products Revenue (For the Six Months Ended September 30) | Item | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Chinese Medicine and Health Food Products Revenue | 329.0 | 265.7 | | Year-on-year Growth | +23.8% | | - Watsons Group established a **central decoction center in August 2023**, offering **24-hour Chinese medicine delivery services**[153](index=153&type=chunk) - Watsons Group collaborated with The Hong Kong Polytechnic University, discovering that **Cordyceps Cs4 Nano Selenium** helps promote osteocyte and bone matrix formation[181](index=181&type=chunk) - Watsons Group was awarded the title of **"Most Frequently Used Chinese Health Product Brand in the Past 12 Months"**[124](index=124&type=chunk) [Western Medicine and Health Food Products](index=30&type=section&id=%E8%A5%BF%E8%97%A5%E5%8F%8A%E4%BF%9D%E5%81%A5%E9%A3%9F%E5%93%81%E7%94%A2%E5%93%81) Western medicine and health food products revenue increased by approximately 10.3% to HK$36.4 million, with flagship brand 'Madame Pearl's' maintaining its 13-year reign as Hong Kong's top-selling cough syrup and 'Pett's' mosquito repellent products achieving favorable revenue, while Watsons Group actively develops e-commerce channels and collaborates with local distributors to accelerate 'Madame Pearl's' and 'Pett's' brand penetration in China Western Medicine and Health Food Products Revenue (For the Six Months Ended September 30) | Item | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Western Medicine and Health Food Products Revenue | 36.4 | 33.0 | | Year-on-year Growth | +10.3% | | - **"Madame Pearl's"** has been the **top-selling cough syrup in Hong Kong for 13 consecutive years**[184](index=184&type=chunk) - Watsons Group has actively invested resources in establishing **e-commerce channels**, including its own online platforms and selected third-party e-commerce platforms[158](index=158&type=chunk) - Watsons Group has collaborated with several local distributors to accelerate the **channel penetration of "Madame Pearl's" and "Pett's" brands in China**[185](index=185&type=chunk) [Treasury Management](index=31&type=section&id=%E8%B2%A1%E8%B3%87%E7%AE%A1%E7%90%86) Treasury management encompasses lending and asset management services; lending business revenue decreased by 30.6% to HK$16.3 million due to uncertain economic outlook and a more cautious lending approach, while asset management services revenue increased to HK$26.2 million due to new managed assets, with Wang On Properties Group establishing joint ventures with strategic partners to provide these services [Lending Business](index=31&type=section&id=%E5%80%9F%E8%B2%B8%E6%A5%AD%E5%8B%99) Lending business contributed approximately HK$16.3 million in revenue for the period, a decrease of about 30.6%, primarily due to reduced market demand amid an uncertain economic outlook and the Group's more cautious lending approach; as of September 30, 2023, the total loan portfolio was approximately HK$290.0 million, with 82.8% secured and 17.2% unsecured, carrying weighted average annual interest rates of approximately 13.2% and 13.9% respectively Lending Business Revenue (For the Six Months Ended September 30) | Item | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Lending Business Revenue | 16.3 | 23.5 | | Year-on-year Change | -30.6% | | - The decrease in revenue from the loan portfolio was due to a **general decline in market demand** caused by an uncertain economic outlook, and the Group's **more cautious approach** when accepting potential loan applications in a risky environment[162](index=162&type=chunk) - As of September 30, 2023, the Group had **42 active loan accounts** with a total loan balance of approximately **HK$290.0 million**, of which **82.8% were secured loans** and **17.2% were unsecured loans**[190](index=190&type=chunk) - The weighted average annual interest rate for secured loans was approximately **13.2%**, and for unsecured loans, it was approximately **13.9%**[162](index=162&type=chunk) [Asset Management](index=33&type=section&id=%E8%B3%87%E7%94%A2%E7%AE%A1%E7%90%86) Wang On Properties Group recorded asset management fee income of approximately HK$26.2 million for the period, a significant increase from HK$9.1 million in the prior period, primarily due to the addition of new managed assets; Wang On Properties Group has established joint ventures with several strategic partners to provide asset management services, including hotel renovation projects and residential property development Asset Management Fee Income (For the Six Months Ended September 30) | Item | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Fee Income | 26.2 | 9.1 | | Year-on-year Growth | +187.9% | | - The increase was mainly due to the **addition of new managed assets**[193](index=193&type=chunk) - Wang On Properties Group formed a joint venture with Angelo, Gordon & Co. L.P. to acquire and renovate a hotel building at 19 Luk Hop Street, Kowloon, Hong Kong, expected to **reopen in the first quarter of 2024**[165](index=165&type=chunk) - Wang On Properties Group partnered with APG Strategic Real Estate Pool to acquire residential properties in Hong Kong for **development and redevelopment for sale**[166](index=166&type=chunk) [Liquidity and Financial Resources](index=34&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) As of September 30, 2023, the Group's total assets were approximately HK$18,464.0 million, with cash resources of HK$1,333.0 million; total equity decreased to HK$9,250.5 million, and total borrowings increased to HK$6,536.3 million, resulting in a net gearing ratio of 57.9%, as the Group continues to strengthen financial risk control and maintain a prudent financial management approach [Assets and Cash Resources](index=34&type=section&id=%E8%B3%87%E7%94%A2%E5%8F%8A%E7%8F%BE%E9%87%91%E8%B3%87%E6%BA%90) As of September 30, 2023, the Group's total assets were approximately HK$18,464.0 million, with cash resources of HK$1,333.0 million, comprising cash and bank balances of HK$1,184.9 million and short-term investments of HK$148.1 million; total liquid investments, cash and bank balances amounted to HK$1,737.3 million, a 23.6% decrease from March 31 Assets and Cash Resources (As at September 30) | Item | 2023 (HK$ Million) | March 31, 2023 (HK$ Million) | | :--- | :--- | :--- | | Total Assets | 18,464.0 | 18,387.1 | | Total Cash Resources | 1,333.0 | 1,749.0 | | Of which: Cash and Bank Balances | 1,184.9 | 1,616.3 | | Of which: Short-term Investments | 148.1 | 132.7 | | Total Liquid Investments, Cash and Bank Balances | 1,737.3 | 2,274.3 | | Year-on-year Change | -23.6% | | [Equity](index=34&type=section&id=%E6%AC%8A%E7%9B%8A) As of September 30, 2023, equity attributable to owners of the parent decreased by approximately 0.3% to HK$5,900.9 million, and the Group's total equity (including non-controlling interests) decreased to HK$9,250.5 million Equity (As at September 30) | Item | 2023 (HK$ Million) | March 31, 2023 (HK$ Million) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Parent | 5,900.9 | 5,916.3 | | Total Equity (Including Non-controlling Interests) | 9,250.5 | 9,379.4 | | Change in Equity Attributable to Owners of the Parent | -0.3% | | [Debt and Net Gearing Ratio](index=34&type=section&id=%E5%82%B5%E5%8B%99%E5%8F%8A%E6%B7%A8%E5%82%B5%E5%8B%99%E6%AC%8A%E7%9B%8A%E6%AF%94%E7%8E%87) As of September 30, 2023, the Group's total debt increased to approximately HK$6,536.3 million from HK$6,246.6 million, with the net gearing ratio rising by 8.5 percentage points to 57.9% from 49.4% as of March 31 Debt and Net Gearing Ratio (As at September 30) | Item | 2023 (HK$ Million) | March 31, 2023 (HK$ Million) | | :--- | :--- | :--- | | Total Debt | 6,536.3 | 6,246.6 | | Net Gearing Ratio | 57.9% | 49.4% | | Change in Net Gearing Ratio | +8.5 Percentage Points | | - The net gearing ratio is calculated as **net debt divided by total equity**; net debt is calculated as the total of interest-bearing bank and other borrowings, unsecured notes, and convertible notes, less cash and cash equivalents, restricted bank balances, and pledged deposits[198](index=198&type=chunk) [Pledged Assets](index=34&type=section&id=%E5%B7%B2%E6%8A%B5%E6%8A%BC%E8%B3%87%E7%94%A2) As of September 30, 2023, approximately HK$506.8 million in property, plant and equipment, HK$1,968.7 million in investment properties, HK$4,945.9 million in properties under development, HK$352.9 million in properties held for sale, and HK$58.3 million in pledged deposits were pledged as collateral for the Group's general banking facilities Book Value of Pledged Assets (As at September 30) | Asset Category | 2023 (HK$ Million) | March 31, 2023 (HK$ Million) | | :--- | :--- | :--- | | Property, Plant and Equipment | 506.8 | 539.8 | | Investment Properties | 1,968.7 | 2,218.0 | | Properties Under Development | 4,945.9 | 4,187.6 | | Properties Held for Sale | 352.9 | 601.4 | | Financial Assets at Fair Value Through Other Comprehensive Income | 0 | 126.9 | | Financial Assets at Fair Value Through Profit or Loss | 0 | 12.1 | | Pledged Deposits | 58.3 | 33.5 | - The aforementioned assets were pledged as collateral for the Group's general banking facilities[170](index=170&type=chunk) [Contingent Liabilities](index=35&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of September 30, 2023, the Group's capital commitments were approximately HK$1,407.6 million, primarily for property development, with capital commitments attributable to joint ventures of HK$186.5 million; the Group also provided bank guarantees up to HK$700.8 million for a joint venture's financing, of which HK$426.5 million was utilized, and guarantees of approximately HK$27.2 million for certain bank loans to customers of properties sold Contingent Liabilities (As at September 30) | Item | 2023 (HK$ Million) | March 31, 2023 (HK$ Million) | | :--- | :--- | :--- | | Capital Commitments of the Group | 1,407.6 | 1,409.3 | | Capital Commitments Attributable to Joint Ventures | 186.5 | 110.9 | | Bank Guarantees for Joint Venture Financing (Maximum) | 700.8 | 450.8 | | Bank Guarantees for Joint Venture Financing (Utilized) | 426.5 | 250.3 | | Loan Guarantees Provided to Customers of Properties Sold | 27.2 | 36.1 | | Contingent Liabilities Related to Guarantees | 0.176 | 0.328 | [Analysis of Interest-bearing Debt Portfolio](index=36&type=section&id=%E8%A8%88%E6%81%AF%E5%82%B5%E5%8B%99%E7%B5%84%E5%90%88%E5%88%86%E6%9E%90) As of September 30, 2023, the Group's total interest-bearing debt was approximately HK$6,536.3 million, with HK$749.8 million at fixed rates and HK$5,786.5 million at floating rates, and debt repayment periods distributed across within one year or on demand, second year, third to fifth year, and over five years Repayment Schedule of Interest-bearing Bank and Other Borrowings (As at September 30) | Repayment Period | 2023 (HK$ Thousand) | March 31, 2023 (HK$ Thousand) | | :--- | :--- | :--- | | Within 1 Year or On Demand | 2,991,238 | 2,964,731 | | In the 2nd Year | 1,576,253 | 2,251,228 | | In the 3rd to 5th Year (Inclusive) | 1,298,246 | 672,976 | | Over 5 Years | 64,200 | 20,515 | | **Total** | **5,929,937** | **5,909,450** | Repayment Schedule of Other Loans (As at September 30) | Repayment Period | 2023 (HK$ Thousand) | March 31, 2023 (HK$ Thousand) | | :--- | :--- | :--- | | Within 1 Year or On Demand | 78,923 | — | | In the 2nd Year | — | 125,189 | | **Total** | **78,923** | **125,189** | - As of September 30, 2023, the Group's total interest-bearing debt was approximately **HK$6,536.3 million**, of which approximately **HK$749.8 million bore interest at fixed rates**, while the remaining debt of approximately **HK$5,786.5 million bore interest at floating rates**[202](index=202&type=chunk) [Financial Risk Management](index=35&type=section&id=%E8%B2%A1%E5%8B%99%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Group continuously strengthens and improves financial risk control, adhering to a prudent financial management approach, ensuring efficient and effective operations while maintaining flexibility to address opportunities and changes through close monitoring of financial resources, and management believes the current financial structure is healthy with sufficient resources for foreseeable operational needs - The Group continuously strengthens and improves financial risk control and adheres to a **prudent financial management approach**[224](index=224&type=chunk) - Operating a centralized cash management system helps **optimize cash flow and minimize idle cash**, while prudent investment in liquid investments generates reasonable returns and maintains liquidity[224](index=224&type=chunk) - The Group's management believes that the Group's current financial structure is **healthy**, and its resources are **sufficient to meet its operational needs** for the foreseeable future[224](index=224&type=chunk) [Significant Investments Held, Material Acquisitions and Disposals of Subsidiaries, and Future Plans for Material Investments or Capital Assets](index=37&type=section&id=%E6%89%80%E6%8C%81%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%EF%BC%8C%E4%BB%A5%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of September 30, 2023, the Group held approximately HK$262.6 million in financial assets at fair value through other comprehensive income and HK$289.8 million in financial assets at fair value through profit or loss; during the reporting period, the Company completed the acquisition of approximately 20.17% equity in China Agri-Products, increasing its stake to about 73.54%, and Watsons Group signed a provisional agreement for property disposal post-reporting period, with no other future plans for material investments or capital assets beyond these disclosures [Financial Asset Investments](index=37&type=section&id=%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2%E6%8A%95%E8%B3%87) As of September 30, 2023, the Group held approximately HK$262.6 million in financial assets at fair value through other comprehensive income (including equity investments and bonds) and HK$289.8 million in financial assets at fair value through profit or loss (including equity investments, fu

Lending Business Performance - The lending business generated revenue of approximately HK$43.1 million, a decrease of approximately 30.4% from HK$61.9 million in 2022, primarily due to a drop in the loan portfolio[1]. - As of March 31, 2023, the gross loan balance was approximately HK$277.8 million, down from approximately HK$461.3 million in 2022, reflecting a significant reduction in active loan accounts from 51 to 44[1]. - Secured loans accounted for approximately 81.8% of the loan portfolio, while unsecured loans made up approximately 18.2%[1]. - The top 5 customers represented approximately 48.8% of the loan portfolio, a decrease from 53.9% in 2022[1]. - The weighted average interest rate for secured loans was approximately 12.8% per annum, slightly down from 12.9% in 2022, while unsecured loans saw a more significant drop to approximately 13.3% from 16.2%[1]. - The loan-to-value ratio for secured loans was approximately 66.7%, down from 70.3% in 2022, indicating a cautious lending approach[1]. - Impairment losses for the year were approximately HK$2.2 million, a significant decrease from approximately HK$34.3 million in 2022, primarily due to expected credit loss allowances[1]. Asset Management and Revenue - The asset management services generated fee income of approximately HK$17 million, down from approximately HK$30.8 million in 2022, mainly due to a reduction in acquisition fees[3]. - Total revenue for the year ended March 31, 2023, was HK$3,603.5 million, representing a 94.1% increase from HK$1,856.0 million in 2022[53]. - Profit attributable to owners of the parent was HK$12.8 million, a significant recovery from a loss of HK$305.2 million in the previous year[53]. - Basic earnings per share improved to HK$0.09, compared to a loss of HK$2.06 per share in 2022[53]. Financial Position and Assets - Total assets decreased by 8.3% to HK$18.39 billion from HK$20.06 billion in 2022[38]. - Net assets declined by 2.3% to HK$9.38 billion, down from HK$9.60 billion in 2022[38]. - The gearing ratio improved to 49.4%, a decrease of 6.5 percentage points from 55.9% in 2022[38]. - Capital commitments as of March 31, 2023, amounted to approximately HK$1,409.3 million, down from HK$2,412.2 million in 2022[45]. - The Group's share of joint ventures' capital commitments increased to approximately HK$110.9 million from HK$43.3 million in 2022[45]. Dividends and Guarantees - Total dividends declared per share decreased to HK$0.04, a reduction of 60.0% from HK$0.10 in 2022[53]. - The Group provided guarantees for loans amounting to approximately HK$36.1 million to customers, down from HK$45.5 million in 2022[46]. Cash and Liquidity - The total liquidity investments and cash and bank balances as of March 31, 2023, were approximately HK$2,274.3 million, a decrease of approximately 6.4% from HK$2,429.9 million in 2022[9]. - Approximately 47.6% of liquidity investments were in debt securities, 19.4% in equity securities, and 33.0% in funds and other investments[9]. - Total cash and bank balances increased to approximately HK$1,616.3 million from approximately HK$1,489.9 million in 2022[67]. - The Group's cash and short-term realizable investments amounted to approximately HK$1,749.0 million, with cash and bank balances at approximately HK$1,616.3 million[111]. Operational Developments - The group has formed a new joint venture with Angelo, Gordon & Co., L.P. for the acquisition and operation of a property in Kowloon, Hong Kong, which includes a hotel with a gross floor area of approximately 285,000 square feet[61]. - The Group is leveraging its expertise in asset management to secure additional recurring income and explore strategic expansion opportunities[63]. - The Group is actively expanding its e-commerce channels, including its own online platform and selected third-party platforms[76]. - The Group has partnered with several developers and investment institutions for property development projects, with total investments exceeding HK$15 billion[96]. Cost and Expenses - The Group recorded administrative expenses of approximately HK$513.0 million for the year, a slight increase from HK$497.0 million in 2022[150]. - Selling and distribution expenses rose to approximately HK$452.9 million, up from HK$274.6 million in 2022, primarily due to increased property sales support services[150]. - Finance costs increased to approximately HK$288.4 million, compared to HK$207.6 million in 2022, attributed to rising interest rates[150]. - The average borrowing rate for the Group was 5.6%, up from 3.8% in 2022[150]. Product Development and Market Expansion - The company launched new products across five major categories of Chinese medicine, enhancing product diversity[123]. - The Group is planning to expand its retail network in Hong Kong, Mainland China, and Macau, considering both self-operated and franchised stores[165]. - The Group is developing new products, including cordyceps capsules and muscle relief oil, to enhance its product lineup[165]. - The Group's fresh market operations are adapting to challenges from online shopping and home delivery services by improving the shopping experience and exploring new business opportunities[163]. Agricultural and Cold Chain Development - The comprehensive cold chain circulation rate of fresh agricultural produce in Mainland China is only 19%, indicating significant potential for development in the cold storage industry[120]. - The Group plans to increase the development and construction of cold chains, cold storage, and logistics warehouses in existing market cities and the Greater Bay Area[120]. - The Group's subsidiary manages 11 agricultural produce exchange markets in densely populated areas and transportation hubs across Mainland China, enhancing its supply chain capabilities[117]. - The intelligent automatic packaging system developed by WYT can increase packaging efficiency six-fold and reduce material waste[102]. Urban Redevelopment and Market Presence - The company is focused on expanding its land reserves through public tenders and old building acquisitions to support future development projects[185]. - The total attributable gross floor area for ongoing urban redevelopment projects is approximately 65,000 square feet, with over 90% ownership secured[183]. - The company is actively pursuing urban redevelopment projects, holding over 90% ownership in these projects, with a total gross floor area of approximately 65,000 square feet planned for redevelopment[185]. - The Group managed a portfolio of around 600 stalls in the fresh market segment, covering over 150,000 square feet, and aims to enhance customer experience through improved shopping environments[191]. - The company plans to identify high population density areas for establishing new fresh markets and mini fresh markets to expand its market presence[191].

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佈之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公佈全部 或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 WANG ON GROUP LIMITED （宏 安 集 團 有 限 公 司）* （於百慕達註冊成立之有限公司） （股份代號：1222） 截至二零二三年三月三十一日止年度 全年業績公佈 全年財務摘要 二零二三 二零二二 財政年度 財政年度 變動 收入（百萬港元） 3,603 1,856 +94.1% 毛利（百萬港元） 1,060 806 +31.5% 母公司持有人應佔溢利╱（虧損） 淨額（百萬港元） 13 (305) 不適用 每股盈利╱（虧損（）港仙） – 基本及攤薄 0.09 (2.06) 不適用 每股股息（港仙） ...

Financial Performance - The Group's revenue for the six months ended September 30, 2022, increased by approximately 128.7% to approximately HK$2,050.5 million, compared to approximately HK$896.5 million for the same period in 2021[19]. - Loss attributable to owners of the parent for the Period was approximately HK$23.6 million, a decrease from a profit of approximately HK$46.5 million for the six months ended September 30, 2021[21]. - The increase in revenue was primarily due to higher sales from the delivery of property development projects in which the Group has a controlling stake[20]. - The decrease in loss on disposal of financial assets for the Period compared to the corresponding period in 2021 partially offset the overall loss[21]. - The Company did not recommend the payment of any interim dividend for the six months ended September 30, 2022, compared to HK$0.1 cent per share for the same period in 2021[16]. - The Group recorded a decrease in delivery of completed residential projects from joint ventures, impacting overall profitability[21]. - There was a decrease in net fair value gains on investment properties during the Period[21]. - Impairment losses on property, plant, and equipment were recorded for the Period, contrasting with a reversal of such losses in the previous year[21]. - Revenue from property sales in agricultural produce exchange markets in the PRC decreased compared to the corresponding period in 2021[21]. - Gross profit was approximately HK$532.2 million with a gross profit margin of 26.0%, down from approximately HK$453.3 million and 50.6% respectively for the same period in 2021[26]. Assets and Liabilities - As of September 30, 2022, the Group's net assets were approximately HK$9,100.4 million, down from approximately HK$9,599.8 million as of March 31, 2022[29]. - Cash resources amounted to approximately HK$1,843.1 million, including cash and bank balances of approximately HK$1,712.9 million, a decrease from approximately HK$1,962.8 million and HK$1,489.9 million respectively[29]. - Total borrowings as of September 30, 2022, were approximately HK$6,636.1 million, resulting in a net debt position of approximately HK$4,923.2 million, improved from approximately HK$5,369.7 million[29]. - The Group's total assets as of 30 September 2022 were approximately HK$18,693.1 million, down from approximately HK$20,056.4 million on 31 March 2022[167]. - The Group's total debt as of 30 September 2022 was approximately HK$6,636.1 million, a decrease from approximately HK$6,859.6 million on 31 March 2022[168]. - The net debt to equity ratio as of 30 September 2022 was approximately 54.1%, down from approximately 55.9% on 31 March 2022[168]. - The Group's capital commitment as of 30 September 2022 amounted to approximately HK$1,100.9 million, significantly reduced from approximately HK$2,412.2 million on 31 March 2022[176]. - The Group's share of capital commitments to joint ventures was approximately HK$34.9 million as of 30 September 2022, down from approximately HK$43.3 million on 31 March 2022[176]. Revenue from Property Development - Revenue from the property development segment was approximately HK$1,358.2 million, with segment profit of approximately HK$106.8 million, compared to approximately HK$190.6 million and HK$139.1 million respectively in the prior year[35]. - The WOP Group's revenue from property development was approximately HK$1,250.0 million, mainly due to the sales recognition of "The Met. Azure" project, which generated total sales proceeds of approximately HK$1.6 billion[39]. - The "Larchwood" project, launched in August 2022, has sold 41 out of 98 units, generating total sales proceeds of approximately HK$201.0 million[45]. - The "maya" project, co-developed with CIFI, has sold all 326 units, resulting in total sales proceeds of approximately HK$4.3 billion[47][48]. - The "Altissimo" project has sold 530 out of 547 units, with total sales proceeds amounting to approximately HK$6.3 billion[49][50]. Joint Ventures and Acquisitions - The WOP Group has entered into a joint venture with APG, acquiring a 50% equity interest with a maximum capital commitment of HK$2.334 billion for residential property development in Hong Kong[53][56]. - In August 2022, WOP's subsidiary acquired a site at Nos. 128–130 Main Street, Ap Lei Chau, for redevelopment as part of "The Met." series[54][57]. - The APG JV acquired sites at Nos. 101 and 111 King's Road for approximately HK$1.3 billion, planned for redevelopment into a residential project with commercial space[63]. - The Group's joint venture with Jumbo Holding acquired a carpark podium in Aberdeen, Hong Kong, for HK$410.3 million, expected to meet high demand for parking spaces due to nearby residential developments[109]. Fresh Market and Agricultural Produce - The fresh market and agricultural produce exchange market segment reported a revenue decrease of approximately 0.9% to about HK$331.3 million for the six months ended September 30, 2022[82]. - Revenue from agricultural produce exchange markets in the PRC contributed approximately HK$195.4 million, while fresh market operations in Hong Kong contributed about HK$135.9 million[84]. - The Group's fresh market business includes approximately 600 stalls under the "Allmart" and "Day Day Fresh" brands, covering a total gross floor area of over 150,000 square feet[89]. - The Group aims to enhance shopping experiences at its fresh markets through improved layouts and high-quality management services[89]. - The Group is actively seeking to increase its land bank through acquisitions of ownerships in old buildings and participation in public tenders[81]. Pharmaceutical and Health Products - The WYT Group's revenue from pharmaceutical and health food products totaled approximately HK$298.7 million, representing an increase of approximately 17.5% compared to HK$254.2 million in the same period last year[122]. - The revenue of Chinese pharmaceutical and health food products recorded a healthy growth of approximately 11.1% compared to the same period in 2021[124]. - The total revenue of Western pharmaceutical and personal care products business grew by 80.6% over the corresponding period in 2021[134]. - The WYT Group is expanding its retail sales network and has launched three Chinese specialists centers in Central, Causeway Bay, and Jordan[130]. - "Madame Pearl's" has been the sales champion for cough syrup in Hong Kong for 12 consecutive years, supported by strategic sales and marketing efforts[136]. Financial Management and Investments - The Group's financial management approach emphasizes prudent risk control and efficient monitoring of financial resources[181]. - The Group's existing financial structure is deemed healthy, with sufficient resources to meet operational needs in the foreseeable future[181]. - The Group's financial assets at fair value through profit or loss (FVPL) totaled approximately HK$283.5 million, accounting for 3.1% of the Group's net assets[194]. - The total fair value loss for the Group's investments was approximately HK$133.96 million for the period[195]. - The Group executed subscriptions for interests in the Blackstone Real Estate Income Trust and CS Blackstone REIT Access Fund for a total of US$15.5 million, which were repurchased during the period[199].

Financial Performance - Revenue for the year ended March 31, 2022, was HK$1,856.0 million, a decrease of 3.2% from HK$1,918.3 million in 2021[16]. - Profit attributable to owners of the parent was a loss of HK$305.2 million, compared to a profit of HK$123.9 million in 2021, representing a decline of 346.3%[16]. - Basic loss per share was HK(2.06) cents, compared to earnings of HK0.77 cent in the previous year, a decrease of 367.5%[16]. - The Group's revenue for the year ended March 31, 2022, decreased by approximately 3.2% to approximately HK$1,856.0 million, compared to approximately HK$1,918.3 million in 2021[104]. - The loss attributable to owners of the parent was approximately HK$305.2 million, a significant turnaround from a profit of approximately HK$123.9 million in 2021[109]. Assets and Liabilities - Total assets as of March 31, 2022, were HK$20.06 billion, down 1.9% from HK$20.45 billion in 2021[16]. - Net assets decreased to HK$9.60 billion from HK$9.97 billion, a decline of 3.7%[16]. - The Group's net assets as of 31 March 2022 were approximately HK$9,599.8 million, down from approximately HK$9,969.0 million in 2021[109]. - Cash resources amounted to approximately HK$1,962.8 million, a decrease from approximately HK$2,471.9 million in 2021[109]. - Total borrowings as of 31 March 2022 were approximately HK$6,859.6 million, down from approximately HK$7,172.0 million in 2021[109]. Dividends - Total dividends declared per share were HK0.1 cent, a reduction of 66.7% from HK0.3 cent in the previous year[16]. - The Board does not recommend the payment of a final dividend for the year ended 31 March 2022, compared to a final dividend of HK0.2 cent per share in 2021[105]. - Total dividends for the year ended 31 March 2022 will be HK0.1 cent per ordinary share, down from HK0.3 cent in 2021[105]. Market Environment - The company reported a significant decline in profitability, indicating challenges in the market environment[16]. - The retail and catering industry faced severe challenges in early 2022 due to the Omicron variant, resulting in negative GDP growth in the first quarter[48]. - The Hong Kong economy showed a recovery momentum in 2021, with a GDP growth of 6.4% and a 5.6% increase in local private consumption expenditure[47]. Property Development - The property development segment includes residential and commercial properties in Hong Kong and property sales in China, with significant sales from projects like "maya" and "Altissimo"[54]. - The property development segment recorded revenue of approximately HK$418.6 million, a decrease from approximately HK$534.4 million in 2021[113]. - Revenue from property sales for the WOP Group was generated only from two jointly developed projects, amounting to HK$858.7 million, down from HK$3,343.8 million in 2021[113]. - The WOP Group's residential project "Maya" has sold 323 out of 326 units, with total contracted sales amounting to approximately HK$4.2 billion as of the date of the annual report[117]. - The "Altissimo" project has sold 528 out of 547 units, with total contracted sales of approximately HK$6.2 billion as of the date of the annual report[120]. Joint Ventures and Acquisitions - A joint venture was formed with Stichting Depositary APG to develop multiple urban redevelopment projects, enhancing the Group's asset-light operation model[60]. - WOP formed a joint venture, "Parkville JV," in June 2021 to acquire shops in Tuen Mun and partnered with Jumbo Holding to acquire an eight-story carpark podium in Aberdeen, aiming to enhance rental returns and capital appreciation[61]. - The WOP Group entered into a joint venture with APG Partner in November 2021, acquiring a 50% equity interest with a maximum capital commitment of HK$2,334 million for residential property development in Hong Kong[145]. Fresh Market Operations - The fresh market and agricultural produce exchange market business recorded a revenue increase of approximately 3.3% to approximately HK$676.1 million for the year ended March 31, 2022, compared to approximately HK$654.5 million in 2021[158]. - The Group managed a total of 11 agricultural produce exchange markets in mainland China, enhancing facilities to meet stringent health measures during the pandemic[68]. - The Group operates approximately 600 stalls in Hong Kong under the "Allmart" and "Day Day Fresh" brands, and 16 fresh markets in mainland China under the "Huimin" brand[73]. E-commerce and Product Development - The Group has actively developed its e-commerce market and cross-border sales platforms, responding to increased demand for Chinese medicines and health care products due to heightened public health awareness[80][81]. - WYT has introduced pet wellness products, which have become a stable revenue source for the company[82]. Community Support - The Group donated HK$3.0 million to support anti-pandemic efforts during the fifth wave of COVID-19, aiding vulnerable communities[86]. - WYT donated 7,000 tablets of Angong Niuhuang Wan and 100,000 packets of anti-infection tea to assist the community during the pandemic[90][94]. Future Strategies - Future strategies may focus on improving operational efficiency and exploring new market opportunities to recover from the current losses[16]. - The Group plans to maintain a prudent financial management strategy and ensure sufficient cash flow amid a complex international economic environment[92].

Financial Performance - For the six months ended September 30, 2021, the Group's revenue decreased by 9.7% to HK$892.1 million compared to HK$987.9 million for the same period in 2020[19] - Profit attributable to owners of the parent for the same period was HK$46.5 million, down from HK$102.9 million in the previous year[19] - The reduction in revenue was primarily due to decreased property sales from property development projects with a controlling stake[20] - Profit attributable to owners for the six months ended 30 September 2021 was HK$46.5 million, a decrease of 54.8% compared to HK$102.9 million for the same period in 2020[21] - Revenue for the six months ended 30 September 2021 decreased by approximately 9.7% to HK$892.1 million from HK$987.9 million in the previous year[23] Joint Ventures and Property Development - Share of profits from joint ventures increased significantly from HK$53.5 million in the previous year to HK$211.6 million, mainly driven by profits from the "maya" and "Altissimo" projects[20] - The Group aims to enhance its market position through strategic joint ventures and property development projects[20] - Future outlook includes a focus on increasing revenue through improved property sales and expanding joint venture contributions[20] - The Group completed the acquisition of a site in Ap Lei Chau with a site area of approximately 4,100 square feet and a gross floor area of 38,500 square feet, with demolition work expected to start in Q1 2022[46] - The Wong Tai Sin project acquired in September 2021 has a site area of approximately 9,600 square feet and a gross floor area of 81,000 square feet, with demolition work set to begin in Q1 2022[48] Market Expansion and Strategy - The Group continues to explore new strategies for market expansion and potential acquisitions to drive growth[20] - The Group plans to continue expanding its fresh market portfolio through joint ventures and strategic acquisitions in Hong Kong[67] - The Group is focused on enhancing customer experiences through improved shopping environments and effective marketing strategies at its fresh markets[65] - The Group is cautiously optimistic about the property market and will continue to seek opportunities for property acquisition and collaboration with strategic partners[186] - The Group plans to expand its market share by opening self-operated or franchised retail outlets in the PRC, Hong Kong, and Macau, leveraging the Guangdong-Hong Kong-Macau Greater Bay Area development policy[194] Financial Position and Resources - The Group's net assets as of 30 September 2021 were HK$9,986.3 million, slightly up from HK$9,969.0 million as of 31 March 2021[25] - Cash resources amounted to HK$2,192.8 million, down from HK$2,471.9 million as of 31 March 2021, with total borrowings increasing to HK$7,572.9 million[25] - The Group's total assets increased to approximately HK$20,749.5 million as of September 30, 2021, compared to approximately HK$20,445.9 million as of March 31, 2021[122] - The Group's total debt increased to approximately HK$7,572.9 million as of September 30, 2021, compared to approximately HK$7,172.0 million as of March 31, 2021, reflecting an increase of about 5.6%[122] - The Group's financial resources are under close monitoring to ensure efficient operations and flexibility to respond to opportunities and uncertainties[126] Agricultural and Fresh Market Operations - The fresh market and agricultural produce exchange market segment recorded a revenue increase of 10.5% to approximately HK$334.3 million, with a segment profit of approximately HK$56.8 million for the six months ended September 30, 2021[61] - The Group operates 11 agricultural trading markets across five provinces in China, significantly expanding its business in the agricultural trading sector[81] - Following the COVID-19 outbreak, all agricultural produce exchange markets upgraded facilities to comply with strict health measures, aiding in the restoration of normal operations[192] - The Group's butchery business generated revenue of approximately HK$28.7 million for the six months ended September 30, 2021, down from approximately HK$42.2 million for the same period in 2020, primarily due to increased dining-out activities as COVID-19 restrictions eased[72] - The Group operates 11 agricultural produce exchange markets across five provinces in the PRC following the acquisition of CAP in February 2020[190] Pharmaceutical and Health Products - For the six months ended September 30, 2021, the revenue from pharmaceutical and health food products was approximately HK$254.2 million, representing an increase of approximately 12.4% compared to HK$226.1 million for the same period in 2020[100] - Revenue from Chinese pharmaceutical and health food products increased by approximately 12.9% to approximately HK$235.9 million, up from HK$209.0 million in the same period of 2020[101] - The launch of the Consumption Voucher Scheme by the Hong Kong Government positively impacted the Group's pharmaceutical and health food products business[100] - The Group is expanding its retail outlets to increase market share and is also enhancing its fleet of professional Chinese medicine practitioners[106] - The Group continues to carry out research and development for core medical solutions targeting institutional clients, local clinics, and medical groups[113] Legal and Compliance Matters - CAP Group continues to be the legal and beneficial owner of Baisazhou Agricultural, as confirmed by multiple court judgments[158][163] - The Supreme People's Court dismissed the retrial application of Ms. Wang and Tian Jiu on December 29, 2020, upholding previous judgments[163] - CAP is seeking legal advice for the recovery of the balance of the damages awarded to it[169] - The counterclaim of Ms. Wang and Tian Jiu was dismissed, reinforcing CAP's ownership of Baisazhou Agricultural[169] - CAP is not required to make any payment under the Instruments to Ms. Wang or Tian Jiu due to the court's ruling[169]

wl WANG ON GROUP LIMITED 宏 安 集 團 有 限 公 司 Incorporated in Bermuda with limited liability 於百慕達註冊成立之有限公司 Stock Code股份代號 : 1222 年報 ANNUAL REPORT | --- | --- | --- | --- | --- | |---------------------------------------------------------------------------------------------------|-------|-------|-------|-------| | | | | | | | CONTENTS 目錄 | | | | | | | | | | | | | | | | | | Corporate Information 公司資料 | 2 | | | | | Financial Highlights 財務撮要 | 5 | | | | | Chairman's Statement 主席報告 | 8 | | | | | Management Discussion ...

uf()) WANG ON GROUP LIMITED 宏 安 集 團 有 限 公 司 Incorporated in Bermuda with limited liability 於百慕達註冊成立之有限公司 Stock Code股份代號：1222 期 報告 INTERIM REPORT 2020 CONTENTS 目錄 Corporate Information 2 公司資料 簡明綜合損益及其他全面收益表 Interim Dividend 4 中期股息 Closure of Register of Members 4 暫停辦理股份過戶登記 Management Discussion and Analysis 5 管理層討論及分析 Disclosure of Interests 29 權益披露 Share Option Schemes 35 購股權計劃 Corporate Governance and Other Information 39 企業管治及其他資料 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive ...

Financial Performance - The Group's revenue for the six months ended 30 September 2019 decreased by 17.5% to HK$2,704.4 million compared to HK$3,279.2 million for the same period in 2018[19]. - Profit attributable to owners of the parent was HK$412.7 million, representing a decrease of 10.7% from HK$462.2 million in the previous year[19]. - The pharmaceutical segment recorded revenue of HK$269.3 million, representing a decrease of 19.3% from HK$333.8 million in the same period last year[67]. - Revenue from Chinese pharmaceutical and health food products decreased by HK$63.6 million or 22.8% to HK$215.1 million, down from HK$278.7 million in the same period last year[69]. - The Group recorded a profit of HK$32.0 million for the first half of the financial year, demonstrating effective management of working capital despite challenging market conditions[68]. - The Group's western pharmaceutical business revenue fell by 1.6% to HK$54.2 million, down from HK$55.1 million in the same period last year[76]. Financial Position - As of 30 September 2019, the Group's net assets increased to HK$8,270.8 million from HK$8,005.5 million as of 31 March 2019[20]. - Liquidity and financial resources amounted to HK$3,011.0 million, down from HK$3,299.7 million as of 31 March 2019[20]. - Cash and bank balances decreased to HK$1,909.4 million from HK$2,318.2 million as of 31 March 2019[20]. - Total borrowings as of 30 September 2019 were HK$5,616.4 million, up from HK$5,521.8 million as of 31 March 2019[20]. - The Group's net debt position increased to HK$3,707.0 million from HK$3,203.6 million as of 31 March 2019[20]. - The Group's total equity attributable to owners increased by 3.1% to HK$6,071.0 million as of September 30, 2019, from HK$5,891.0 million at March 31, 2019[84]. - Total assets decreased to HK$15,707.0 million as of September 30, 2019, down from HK$16,417.9 million at March 31, 2019[85]. - The Group's total debt amounted to HK$5,616.4 million as of September 30, 2019, compared to HK$5,521.8 million at March 31, 2019[90]. - The net debt to equity ratio was approximately 44.8% as of September 30, 2019, up from 40.0% at March 31, 2019[90]. Dividend and Share Capital - The interim dividend declared is HK$0.1 cent per ordinary share, consistent with the previous year[14]. - The register of members will be closed from 20 December 2019 to 27 December 2019 for the interim dividend[16]. - As of September 30, 2019, the total issued share capital of the Company was 17,397,520,047 shares[175]. - Mr. Tang Ching Ho and Ms. Yau Yuk Yin hold significant interests in the Company, with Mr. Tang owning 28,026,339 shares and Ms. Yau owning 28,026,300 shares, both representing approximately 57.39% of the total issued share capital[154][155]. - Caister held 4,938,375,306 shares, representing approximately 28.39% of the Company's total issued share capital[189]. - Accord Power Limited owned 4,989,928,827 shares, accounting for approximately 28.68% of the Company's total issued share capital[189]. Property Development - Wang On Properties Limited recorded revenue of HK$2,222.8 million for the property development segment, down from HK$2,726.1 million in the same period last year[39]. - The Met. Acappella project, completed in May 2019, has sold and delivered 97% of its total 336 units[41]. - The new luxury residential project "maya" has a total GFA of 272,000 square feet and 326 units, with 71% of the released units sold as of the report date[44]. - The Altissimo project, with a GFA of 388,000 square feet, has sold 77% of the 508 units released, scheduled for completion in 2020[46]. - The Group's property development portfolio includes projects with completion dates ranging from 2020 to 2022[57]. - The Group is pursuing two urban redevelopment projects with over 80% ownership, totaling approximately 143,000 square feet of GFA[56]. Investment Properties - The Group's investment properties had a total carrying value of HK$1,188.1 million as of 30 September 2019, down from HK$1,510.0 million on 31 March 2019[60]. - Gross rental income for the reporting period was HK$7.1 million, a decrease of 39.8% compared to HK$11.8 million in the same period last year[61]. - The Group's investment property portfolio had a total book value of HK$1,188.1 million as of 30 September 2019, down from HK$1,510.0 million as of 31 March 2019[63]. - Rental income for the reporting period totaled HK$7.1 million, a decrease of HK$4.7 million or 39.8% compared to HK$11.8 million for the same period last year[63]. Business Strategy and Outlook - The Group aims to explore a transition to a licensing fee business model in mainland China to adapt to market challenges[79]. - The Group plans to optimize product formulas and manage production costs to improve profit margins in response to rising cost pressures[70]. - The Group remains optimistic about the Hong Kong residential property market due to limited supply and high demand for affordable properties[125]. - The Group plans to explore opportunities in local residential property projects and expand its investment property portfolio[125]. - The Group's management maintains a prudent outlook on economic prospects in Hong Kong and the PRC due to global economic uncertainty and trade war concerns[124]. - The Group's strong financial position and diverse business model provide the ability to explore new opportunities under a prudent investment approach[134]. Employee and Corporate Governance - As of September 30, 2019, the Group had 944 employees, an increase from 920 employees as of March 31, 2019, with 86% located in Hong Kong[123]. - The Group provides a defined contribution to the Mandatory Provident Fund for all eligible employees in Hong Kong[123]. - The Company adopted a new share option scheme effective from August 21, 2012, which will remain in force for 10 years[195]. - The share option scheme aims to provide incentives and rewards to eligible participants contributing to the Group's success[195]. - No Directors or chief executives had registered interests or short positions in the shares or debentures of the Company as of September 30, 2019[179].