Financial Performance - The company reported a net loss attributable to owners of approximately HKD 51.4 million for the six months ended September 30, 2022, compared to a net profit of approximately HKD 21.3 million for the same period in 2021[10]. - Revenue from continuing operations decreased by approximately HKD 16.4 million or 4.4% to approximately HKD 355.7 million, down from approximately HKD 372.1 million in the previous year[11]. - The group recorded a loss before tax of approximately HKD 43.3 million during the interim period, compared to a profit of approximately HKD 18.4 million in the same period last year[21]. - The group reported a total comprehensive loss attributable to owners of the company of approximately HKD 97.8 million during the interim period, compared to a total comprehensive income of approximately HKD 26.2 million in the same period last year[25]. - The group recorded a net loss of approximately HKD 68.3 million in other income and losses during the interim period, a significant decline from a net income of approximately HKD 3.2 million in the same period last year[19]. Revenue Breakdown - Revenue from the concrete business accounted for approximately 96.1% of total revenue, with a slight decrease of about HKD 12.7 million or 3.6% to approximately HKD 341.8 million[11]. - The lending business revenue decreased by approximately HKD 3.7 million or 20.9% to approximately HKD 13.9 million, attributed to a reduction in the average total loan portfolio[14]. - Revenue for the six months ended September 30, 2022, was HKD 355,663,000, a decrease of 4.3% from HKD 372,067,000 in the same period of 2021[80]. - Interest income from the lending business was HKD 13,877,000, a decline of 21.0% compared to HKD 17,551,000 in the prior year[106]. Cost and Expenses - The cost of sales for continuing operations decreased by approximately HKD 27.5 million or 9.6% to approximately HKD 258.8 million, mainly due to reduced raw material costs and lower sales volume of ready-mixed concrete[16]. - Sales and distribution expenses increased by approximately HKD 8.2 million or 22.4% compared to the same period last year, primarily due to rising transportation costs driven by increasing oil prices[20]. - Administrative expenses slightly increased by approximately HKD 1 million or 3.9% to approximately HKD 25.7 million, mainly due to higher depreciation costs for newly acquired right-of-use assets[20]. Profitability Metrics - Gross profit from continuing operations increased by approximately HKD 11.2 million or 13.0% to approximately HKD 96.9 million, driven by higher average selling prices and lower production costs[16]. - The gross margin for the concrete business improved from approximately 19.2% to about 24.3% due to enhanced management and operational efficiency[17]. - The gross margin for the lending business remained at 100%, positively impacting the overall gross margin of the group[17]. Asset and Liability Management - As of September 30, 2022, the group had total debts of approximately HKD 320.4 million, a slight decrease from approximately HKD 325 million as of March 31, 2022[26]. - The group had cash and cash equivalents of approximately HKD 145.7 million as of September 30, 2022, an increase from approximately HKD 138.5 million as of March 31, 2022[26]. - The current ratio as of September 30, 2022, was 2.1, indicating sufficient financial resources, compared to 2.0 as of March 31, 2022[26]. - The total liabilities of the group as of September 30, 2022, amounted to HKD 984,358,000, a decrease of 8.0% from HKD 1,069,778,000 as of March 31, 2022[116]. Shareholder Information - The group issued a total of 699 million ordinary shares during the interim period, increasing the total number of issued shares to 4,198,098,293 as of September 30, 2022[27]. - As of September 30, 2022, the company has a total of 4,198,098,293 shares issued, with Mr. Huang holding 892,178,000 shares, representing 21.25% of the company's equity[70][71]. - The company has not proposed any interim dividend for the reporting period, consistent with the previous period where no dividend was declared[78]. Business Operations and Strategy - The company has discontinued its home consumables business, which was previously included in its operations[10]. - Future strategies may include further cost reduction and operational efficiency improvements to enhance profitability[17]. - The concrete business remains the main growth driver for the group, despite sales being affected by real estate development slowdowns in Hainan Province[63]. - The group plans to allocate more resources to explore new opportunities in the concrete market in Hainan Province, enhancing its capabilities and position[63]. Impairment and Goodwill - The group recognized goodwill impairment losses of approximately HKD 28.7 million related to its concrete business during the interim period, which was zero in the same period last year[21]. - The goodwill related to the concrete business was determined to have an impairment loss of approximately HKD 28,747,000 during the interim period, primarily due to a slowdown in real estate development in Hainan Province[162]. - The carrying amount of goodwill as of September 30, 2022, was HKD 147,616,000, down from HKD 186,074,000 as of March 31, 2022, representing a decrease of about 20.7%[155]. Employee and Operational Metrics - As of September 30, 2022, the group employed a total of 200 employees, a decrease from 244 employees as of September 30, 2021[49]. - Employee costs for the interim period were approximately HKD 19.8 million, down from approximately HKD 21.4 million for the same period in 2021[49]. - The group expects cash flow improvement following the sale of the home consumables business, allowing for a restructuring of operations[138]. Market and Economic Conditions - The group will continue to monitor the impact of COVID-19 on its operations and financial performance, focusing on cost-saving measures[63]. - In the Hong Kong lending industry, the risk of loan defaults is increasing due to a potential global economic downturn and rising interest rates; the company plans to adopt cautious credit control measures and may gradually reduce the size of its loan portfolio in the upcoming fiscal year[64].

Huasheng International Holding Limited 華盛國際控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1323） 2021/2022 年報 | 目錄 | | --- | | 142 | 48 | 46 | 44 | 42 | 41 | 37 | 27 | 16 | 13 | 4 | 3 | 2 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 財務概要 | 綜合財務報表附註 | 綜合現金流量報表 | 綜合權益變動報表 | 綜合財務狀況報表 | 綜合全面收益報表 | 獨立核數師報告 | 董事會報告 | 企業管治報告 | 董事及高級管理人員 | 管理層討論與分析 | 主席報告書 | 公司資料 | 公司資料 執行董事 黃偉昇先生 （主席兼行政總裁） 陳健龍先生 黃銘禧先生 獨立非執行董事 郭錦添先生 曹炳昌先生 李國泰先生 審核委員會成員 郭錦添先生 （主席） 曹炳昌先生 李國泰先生 薪酬委員會成員 郭錦添先生 （主席） 曹炳昌先生 李國泰先生 提名委員會 ...

Financial Performance - The company reported a net profit attributable to shareholders of approximately HKD 21.3 million for the six months ended September 30, 2021, compared to HKD 9.5 million for the same period in 2020[7]. - Revenue from continuing operations decreased by approximately HKD 96.6 million or 19.4% to about HKD 402.5 million for the interim period, down from approximately HKD 499.1 million for the six months ended September 30, 2020[8]. - The company recorded a profit before tax of approximately HKD 21,300,000 during the interim period, compared to a loss of about HKD 700,000 in the same period of 2020[21]. - The total comprehensive income attributable to the owners of the company for the interim period was approximately HKD 26,200,000, compared to about HKD 23,900,000 for the six months ended September 30, 2020[24]. - The net profit for the period was HKD 21,343,000, a significant recovery from a loss of HKD 5,150,000 in the prior year[63]. - Basic and diluted earnings per share for the period were HKD 0.610, compared to HKD 0.288 in the previous year, indicating a growth of 111.5%[63]. Revenue Breakdown - The concrete business accounted for approximately 88.1% of total revenue from continuing operations, generating about HKD 354.5 million, a decrease of approximately HKD 101.7 million or 22.3% compared to the previous year[10]. - Revenue from the home consumables business increased by approximately HKD 5.1 million or 20.2% to about HKD 30.4 million, primarily due to increased sales in the UK[11]. - Revenue from the lending business maintained stable revenue of approximately HKD 17.6 million for both periods, with an average total loan portfolio of about HKD 261 million[11]. - Revenue from external customers for the concrete business was HKD 354,516,000, a decrease from HKD 456,233,000 in the previous year, representing a decline of approximately 22.4%[99]. - Revenue from external customers for the home consumables business increased to HKD 30,391,000 from HKD 25,286,000, reflecting a growth of about 20.9%[99]. Cost and Expenses - Gross profit from continuing operations decreased by approximately HKD 4.4 million or 4.5% to about HKD 92 million, with a gross profit margin of 22.9%[13]. - The sales and distribution expenses decreased by approximately HKD 5,000,000 or 11.8% during the interim period, attributed to active cost control and improved operational efficiency[17]. - Administrative expenses decreased by approximately HKD 3,300,000 or 10.5% to about HKD 27,800,000 during the interim period, mainly due to a reduction in employee costs[18]. - The cost of goods sold for the six months ended September 30, 2021, was HKD 292,707,000, down from HKD 388,030,000 in the previous year, representing a decrease of 24.6%[116]. Debt and Financial Ratios - As of September 30, 2021, the group had total debt of approximately HKD 348,900,000, compared to about HKD 343,300,000 as of March 31, 2021[25]. - The current ratio as of September 30, 2021, was 2.3, reflecting sufficient financial resources, while the debt-to-equity ratio was 37.3%[25]. - The company reported total borrowings of HKD 146,167,000 as of September 30, 2021, an increase from HKD 142,697,000 as of March 31, 2021, indicating a rise of approximately 2.9%[189]. - The company’s total liabilities increased to HKD 547,726,000 as of September 30, 2021, compared to HKD 448,491,000 as of March 31, 2021, marking an increase of approximately 22.2%[186]. Employee and Operational Metrics - The group employed a total of 244 employees as of September 30, 2021, down from 271 employees a year earlier, with employee costs approximately HKD 22,900,000 compared to HKD 24,400,000 in the previous year[38]. - The total employee costs for the six months ended September 30, 2021, were HKD 22,859,000, a decrease from HKD 24,356,000 in the same period of 2020[116]. Business Segments and Strategy - The company continues to focus on its core businesses of concrete production, home consumables, and lending services[6]. - The group is committed to expanding its concrete business market share in Hainan Province to ensure better performance and increased shareholder returns in the coming years[40]. - The home consumables business showed slight revenue and gross margin growth compared to the same period last year, with plans to identify suitable permanent locations for future development[42]. - The lending business remains a stable source of income, with the group optimistic about its continued profitability due to reduced competition in the market[43]. Discontinued Operations - The company completed the sale of its digital technology business for a total consideration of HKD 30 million, effectively terminating this segment[120]. - The coal business was sold for a nominal price of HKD 100, with the sale completed on September 1, 2020, and classified as discontinued operations[122]. - The education business was sold for HKD 40 million, with the transaction completed on March 31, 2021, allowing the company to focus on more profitable segments[123]. - For the six months ended September 30, 2021, the digital technology business generated revenue of HKD 428, while the education business contributed HKD 3,996, leading to a total revenue of HKD 4,424 from discontinued operations[125]. Governance and Compliance - The group has complied with corporate governance codes and has maintained a strong governance framework throughout the reporting period[45]. - The company has adopted a share option scheme to reward eligible participants with options to subscribe for shares, enhancing employee motivation and retention[38].

Financial Performance - The company recorded revenue of approximately HKD 919 million for the fiscal year ending March 31, 2021, a significant increase from HKD 202 million in the previous year, primarily due to the contribution from the concrete business[7]. - The concrete business generated approximately HKD 839 million in revenue, accounting for over 90% of the total revenue for the year[7]. - The company reported a profit attributable to owners of approximately HKD 44 million, a turnaround from a loss of HKD 78 million in the previous fiscal year[8]. - The group's revenue from continuing operations increased from approximately HKD 202,400,000 for the year ended March 31, 2020, to approximately HKD 919,300,000 for the year ended March 31, 2021, representing a threefold increase[14]. - Concrete business revenue rose by approximately HKD 746,700,000 or about 9 times, from approximately HKD 91,800,000 in 2020 to approximately HKD 838,500,000 in 2021, accounting for about 91.2% of total revenue[17]. - The group recorded a profit before tax of approximately HKD 19,900,000 for the year ended March 31, 2021, compared to a loss of approximately HKD 60,300,000 for the year ended March 31, 2020[31]. - The group reported a total comprehensive income attributable to owners of approximately HKD 50,200,000 for the year ended March 31, 2021, compared to a total comprehensive loss of approximately HKD 83,700,000 for the year ended March 31, 2020[41]. Business Strategy and Development - The company aims to further develop its concrete business by seeking potential investment opportunities in the same industry and plans to acquire small to medium-sized concrete manufacturing plants[8]. - The company is exploring the feasibility of vertical expansion through the acquisition of raw material businesses, such as sand and gravel[8]. - The company believes that Hainan Province will remain a key focus for its development, supported by the government's policies to establish it as a significant free trade port by 2050[8]. - The concrete business is expected to continue as a major growth driver, with plans to expand market share in Haikou City, China, due to strong future demand[66][67]. Cost Management and Financial Health - The company will continue to monitor global economic trends and market conditions to control operating costs and achieve better operational performance[10]. - The gross profit from continuing operations increased by approximately HKD 119,400,000 or 152.0%, from approximately HKD 78,600,000 in 2020 to approximately HKD 198,000,000 in 2021[21]. - The gross profit margin for the concrete business improved from approximately 12.3% in 2020 to approximately 18.5% in 2021, driven by higher average selling prices and strict cost control[22]. - The company completed the sale of its loss-making businesses, including digital technology, education, and coal trading, which is expected to improve net debt levels and provide additional financial resources[7]. - The group had cash and cash equivalents of approximately HKD 110,100,000 as of March 31, 2021, significantly up from approximately HKD 18,200,000 in the previous year[44]. - The current ratio improved to approximately 2.6 as of March 31, 2021, compared to approximately 1.8 in the previous year, indicating sufficient financial resources[44]. - The group’s capital debt ratio decreased to approximately 37.4% as of March 31, 2021, down from approximately 43.1% in the previous year[44]. Governance and Compliance - The company has adhered to all corporate governance codes as per the Hong Kong Stock Exchange, except for the deviation where the Chairman also serves as the CEO, which the board believes is in the best interest of the company[85]. - The board consists of three executive directors and three independent non-executive directors, complying with the requirement of having at least three independent non-executive directors[96]. - The company has appointed Mr. Li Guotai as an independent non-executive director to meet the listing rules after a previous director resigned, ensuring compliance with the regulations[88]. - The company has implemented a set of securities trading standards for directors, confirming compliance throughout the fiscal year ending March 31, 2021[89]. - The board is responsible for overseeing the company's overall strategy, financial performance, and risk management systems[93]. - The company has established appropriate insurance coverage for its directors and executives against legal actions, with annual reviews of the coverage[97]. - All independent non-executive directors have confirmed their independence annually, and the nomination committee has assessed their independence[98]. Employee and Social Responsibility - The company employed a total of 267 employees as of March 31, 2021, with employee costs amounting to approximately HKD 52,600,000, an increase from HKD 33,100,000 in the previous year[63]. - The company has established training programs and diverse career development paths for employees[145]. - The company made charitable donations of approximately HKD 180,000 for the year ended March 31, 2021, compared to none in 2020[174]. Risk Management - The company has identified several major risks, including business and financial risks related to the termination of relationships with key customers[148]. - The company maintains a cautious credit control strategy to balance business development and risk exposure in the lending sector[69]. - The tightening of regulatory measures may lead to some resource-limited competitors exiting the market, which could enhance the group's profitability outlook[69]. Shareholder Information - The company has adopted a dividend policy that balances sufficient funding for business growth and shareholder returns, considering operational performance and financial condition[125]. - The company reported a final dividend of HK$0.3 per share for the year ended March 31, 2021, compared to zero in the previous year[141]. - The company encourages shareholders to attend annual general meetings to discuss business developments[133].

Financial Performance - The company reported a net profit attributable to shareholders of approximately HKD 9,500,000 for the six months ended September 30, 2020, down from approximately HKD 13,500,000 for the same period in 2019[10]. - Revenue from continuing operations increased by approximately HKD 443,100,000 or 737.9% to approximately HKD 503,100,000 for the interim period[11]. - The company recorded a loss before tax of approximately HKD 100,000 during the interim period, compared to a profit of about HKD 18.3 million in the same period last year[27]. - The total comprehensive income attributable to the owners of the company for the interim period was approximately HKD 23.9 million, compared to about HKD 9.4 million in the same period last year[30]. - The company reported a significant increase in other comprehensive income, with a foreign exchange difference of HKD 14,558,000 compared to a loss of HKD 4,085,000 in 2019[91]. - The profit attributable to the company's owners for the six months ended September 30, 2020, was HKD 9,460 million, a decrease of 29.9% compared to HKD 13,494 million in 2019[157]. - The loss from continuing operations attributable to the company's owners for the six months ended September 30, 2020, was HKD 4,557 million, compared to a profit of HKD 14,253 million in 2019[159]. Revenue Breakdown - The concrete business generated revenue of approximately HKD 456,200,000, accounting for 90.7% of total revenue from continuing operations[13]. - Revenue from the home consumables business increased by approximately HKD 700,000 or 2.7% to approximately HKD 25,300,000, primarily due to increased sales of hygiene products in the UK during the COVID-19 pandemic[14]. - Revenue from the education business decreased by approximately HKD 800,000 or 16.7% to approximately HKD 4,000,000, mainly due to a reduction in enrollment for English proficiency tests[14]. - Revenue from the lending business decreased by approximately HKD 13,100,000 or 42.7% to approximately HKD 17,500,000, attributed to a decrease in the average total loan portfolio[16]. - Revenue from external customers for the six months ended September 30, 2020, was HKD 503,062,000, an increase from HKD 60,038,000 for the same period in 2019[119]. - Revenue from the concrete business amounted to HKD 456.2 million, while the home consumables business generated HKD 25.3 million, and the education business contributed HKD 4.0 million[116]. Cost and Expenses - Gross profit from continuing operations increased by approximately HKD 59,800,000 or 152.3% to approximately HKD 99,000,000, driven primarily by the newly acquired concrete business[18]. - Selling and distribution expenses increased significantly by approximately HKD 41.6 million, primarily due to the acquisition of the concrete business completed in January 2020[24]. - Administrative expenses rose by approximately HKD 6.8 million or 25.4% to about HKD 33.7 million, mainly due to the administrative costs associated with the acquired concrete business[25]. - Financing costs increased by approximately HKD 4.6 million or 26.7% to about HKD 21.9 million, largely due to the acquisition of the concrete business and interest expenses from bonds issued[26]. - The total cost of goods sold for the period was HKD 388,030,000, significantly higher than HKD 19,280,000 in the prior year, indicating a substantial increase in operational scale[145]. Assets and Liabilities - As of September 30, 2020, the group's total debt was approximately HKD 291.9 million, down from HKD 318.1 million as of March 31, 2020, representing a decrease of about 8.5%[35]. - The group's cash and cash equivalents increased to approximately HKD 42.3 million as of September 30, 2020, compared to HKD 18.2 million as of March 31, 2020, marking an increase of approximately 132.5%[35]. - The current ratio improved to 1.9 as of September 30, 2020, up from 1.8 as of March 31, 2020[35]. - The total liabilities decreased slightly to HKD 580,629,000 from HKD 582,006,000, showing stable financial management[93]. - The company's equity increased to HKD 777,128,000 from HKD 734,554,000, reflecting growth in shareholder value[93]. Business Operations and Strategy - The concrete business was acquired in January 2020, contributing significantly to the company's revenue during the interim period[13]. - The company plans to explore potential investments and business opportunities in the construction-related concrete sales and production sector to support long-term development[63]. - The company believes that the concrete business will help reverse losses experienced in previous years due to stable supply and demand dynamics[64]. - The company aims to reallocate resources from discontinued operations to enhance growth in other business segments, focusing on maximizing shareholder interests[149]. Employee and Shareholder Information - The company employed a total of 271 employees as of September 30, 2020, compared to 67 employees a year earlier, with employee costs amounting to approximately HKD 25,600,000[62]. - The company did not declare an interim dividend for the period ending September 30, 2020[86]. - The group did not recommend an interim dividend for the period, consistent with the previous year[147]. Discontinued Operations - The company completed the sale of its digital technology business for a total consideration of HKD 30 million, which was classified as a discontinued operation[31]. - The group completed the sale of its digital technology business on July 27, 2020, and the coal business on September 1, 2020, classifying these as discontinued operations[112][113]. - The group recorded a loss before tax from discontinued operations of HKD 253,000 for the six months ended September 30, 2020, compared to a loss of HKD 763,000 for the same period in 2019[153]. Impairment and Goodwill - The impairment loss for the cash-generating unit related to the education business was approximately HKD 13,169,000, reflecting increased competition and changes in customer demand[185]. - An impairment loss of approximately HKD 8,235,000 was recognized for the digital technology cash-generating unit due to the consideration being lower than the net asset value[187]. - The goodwill related to the concrete business and home consumables is part of the company's strategic acquisitions aimed at market expansion[173]. Cash Flow and Financing - The company reported a net cash inflow from operating activities of HKD 72,163,000 for the six months ended September 30, 2020, compared to a net outflow of HKD 5,737,000 in the same period last year[98]. - The company’s financing activities resulted in a cash outflow of HKD 41,474,000 for the six months ended September 30, 2020, compared to HKD 9,328,000 in the same period last year[98]. - The company’s net cash used in investing activities was HKD 11,929,000 for the six months ended September 30, 2020, compared to HKD 14,875,000 in the previous year[98].

Financial Performance - The company recorded revenue of approximately HKD 213,500,000 for the year ended March 31, 2020, an increase of 85.3% from approximately HKD 115,200,000 in the previous year[12]. - The net loss attributable to owners of the company was approximately HKD 78,200,000, compared to a loss of approximately HKD 15,500,000 in the previous year[12]. - The total revenue for the year ended March 31, 2020, was approximately HKD 213,456,000, a significant increase from HKD 115,164,000 in 2019, representing a growth of 85.5%[23]. - Gross profit for the year was approximately HKD 85,781,000, an increase of about HKD 14,800,000 or 20.9% from HKD 70,973,000 in 2019[27]. - The group recorded a loss before tax of approximately HKD 82,900,000 for the year ended March 31, 2020, compared to a loss of approximately HKD 4,200,000 for the year ended March 31, 2019[38]. - Total comprehensive loss attributable to owners of the company was approximately HKD 83,700,000 for the year ended March 31, 2020, compared to approximately HKD 20,900,000 for the year ended March 31, 2019[43]. Business Segments - The concrete business generated revenue of approximately HKD 91,800,000, accounting for about 43.0% of the total revenue for the group[14]. - The digital technology business reported segment losses of approximately HKD 2,000,000 for the year, leading to the decision to sell this business for HKD 30,000,000[16]. - Revenue from the home consumables business increased by approximately HKD 9,300,000 or 20.8% to about HKD 53,796,000, driven by a doubling of orders from a returning customer[24]. - The education business's revenue decreased by approximately HKD 6,400,000 or 38.3% to about HKD 10,312,000, primarily due to a drop in enrollment for English proficiency tests[24]. - The lending business's revenue increased by approximately HKD 4,900,000 or 9.4% to about HKD 56,764,000, attributed to an increase in the average loan portfolio from approximately HKD 287,900,000 to HKD 304,700,000[25]. Operational Strategy - The company plans to streamline operations by divesting loss-making segments and focus resources on profitable business divisions[16]. - The management is committed to exploring new markets and opportunities to enhance competitiveness and deliver positive returns to shareholders[16]. - The company plans to explore new investment and business opportunities in the concrete and construction sectors to support long-term growth[74]. - The company has implemented cautious credit control procedures in response to the deteriorating economic environment while developing the lending business[78]. Risk Management - The group anticipates facing significant challenges in the coming years due to the impact of COVID-19 and geopolitical tensions[16]. - The company aims to strengthen risk management and internal control systems to maximize shareholder returns[16]. - The group has identified several major risks, including business and financial risks that could significantly impact profitability and financial condition[153]. Corporate Governance - The company emphasizes high levels of corporate governance, believing that effective governance practices are crucial for increasing shareholder value and protecting stakeholder interests[92]. - The company has adhered to all provisions of the corporate governance code as per the Stock Exchange Listing Rules, with the exception of the separation of roles between the Chairman and CEO[93]. - The board regularly reviews its structure to ensure effective leadership and decision-making processes are in place[93]. - The company has established an audit committee composed entirely of independent non-executive directors to oversee financial reporting and risk management[118]. - The board of directors is committed to safeguarding the group's assets and preventing fraud and irregularities[109]. Shareholder Information - The company did not recommend the payment of a final dividend for the year ended March 31, 2020[13]. - The company has adopted a dividend policy that balances sufficient funding for business growth and shareholder returns, considering overall operational performance and financial condition[130]. - The company encourages shareholders to attend all annual general meetings and provides necessary information through its website[141]. Capital Structure - As of March 31, 2020, the group had total debt of approximately HKD 318,100,000, an increase from approximately HKD 189,600,000 as of March 31, 2019[43]. - The group issued a total of 850,975,471 ordinary shares during the year, including 397,300,000 shares issued through placement[45]. - The company issued convertible bonds with a principal amount of HKD 70,000,000 as part of the consideration for acquiring 80% of Alpha Youth Limited[49]. - The company has convertible bonds with an unexercised principal amount of HKD 100,000,000, which could potentially issue up to 188,679,245 new shares upon conversion[169]. Employee Information - Employee costs for the year amounted to approximately HKD 38.3 million, an increase from HKD 34.4 million in the previous year, with a total of 300 employees as of March 31, 2020[71]. - The company is committed to maintaining a healthy, safe, and comfortable working environment for all employees[149]. Market Position - The concrete business is expected to generate significant revenue due to strong demand in Hainan Province, contributing to the company's recovery from previous losses[75]. - The lending business continues to provide stable income, with the company positioned as a resilient player in the growing Hong Kong lending market[78]. - The education sector is expected to continue growing, driven by persistent demand for related products and services in Hong Kong and China[77].

Financial Performance - The company reported a net profit attributable to shareholders of approximately HKD 13,500,000 for the six months ended September 30, 2019, compared to a net loss of approximately HKD 6,500,000 for the same period in 2018[11]. - Revenue increased by approximately HKD 800,000 or 1.3% from approximately HKD 59,800,000 for the six months ended September 30, 2018, to approximately HKD 60,600,000 for the current period[12]. - The group recorded a pre-tax profit of approximately HKD 17,500 million, a turnaround from a pre-tax loss of HKD 1,300 million in the previous period[27]. - The company reported a total profit before tax of HKD 17,548,000, compared to a loss of HKD 1,325,000 in the previous period[157]. - The company reported a significant impairment reversal of trade receivables amounting to HKD 10,154,000, compared to HKD 8,763,000 in the previous period[175]. - The company reported a total comprehensive loss of HKD 9,847 thousand for the period, highlighting ongoing operational difficulties[97]. - The company’s financing costs decreased to HKD 17,269,000 from HKD 21,802,000, a reduction of approximately 20.5%[88]. - The effective tax expense for the six months ended September 30, 2019, was HKD 4,058,000, compared to HKD 4,400,000 in the previous year, indicating a decrease of 7.8%[178]. Revenue Breakdown - Revenue from the home consumables business rose by approximately HKD 1,800,000 or 7.9% to approximately HKD 24,600,000, driven by increased orders from a returning customer[15]. - The digital technology business saw a revenue decline of approximately HKD 600,000 or 50.2%, dropping to approximately HKD 600,000 due to intense industry competition[15]. - The education business's revenue decreased by approximately HKD 4,800,000 or 50.1% to approximately HKD 4,800,000, primarily due to a reduction in enrollment for English proficiency tests[15]. - The lending business recorded interest income of approximately HKD 30,600,000, an increase of approximately HKD 4,300,000 or 16.4% compared to the previous period[16]. - The total revenue breakdown by segment shows home consumables at 41%, digital technology at 1%, education at 8%, and lending at 50%[12]. - Revenue from home consumables business reached HKD 24,630,000, an increase of 7.1% from HKD 22,818,000 in the previous year[148]. - Service income from digital technology business decreased to HKD 553,000, down 50.3% from HKD 1,110,000 year-on-year[148]. - Service income from education business fell to HKD 4,797,000, a decline of 50.1% compared to HKD 9,609,000 in the previous year[148]. - Interest income from lending business increased to HKD 30,611,000, up 16.5% from HKD 26,301,000 year-on-year[148]. - Total revenue for the six months ended September 30, 2019, was HKD 60,591,000, slightly up from HKD 59,838,000, reflecting a growth of 1.3%[167]. Shareholder Information - As of September 30, 2019, the company issued a total of 2,509,883,201 ordinary shares, an increase from 2,423,783,201 shares as of March 31, 2019[32]. - Chairman and CEO Mr. Huang Wei Sheng holds 483,500,000 shares, representing approximately 19.94% of the company's equity[68]. - Major shareholder Double Star Global Limited, owned by Mr. Huang, holds 460,806,000 shares, accounting for approximately 19.01% of the company's equity[73]. - Mr. Zhou Feng Tang holds 320,000,000 shares and 132,075,471 related shares, representing approximately 18.01% of the company's equity[73]. - The company has not disclosed any other individuals with significant shareholdings as of September 30, 2019, apart from those mentioned[74]. Corporate Governance - The company has adopted a code of conduct for directors' securities trading, ensuring compliance with the standards set forth in the listing rules[68]. - The board will periodically review the current structure to ensure effective governance and management balance[65]. - The company has taken sufficient measures to ensure its corporate governance practices meet or exceed the corporate governance code[66]. - The company is open to considering suitable candidates for leadership roles if identified internally or externally[65]. - No directors or senior executives have been granted rights to purchase shares or debt securities during the reporting period[71]. Cash Flow and Liquidity - The company’s cash and cash equivalents decreased to HKD 15,768,000 from HKD 45,383,000, indicating a decline of 65.3%[91]. - The company’s inventory increased to HKD 6,009,000 from HKD 5,765,000, representing a growth of 4.23%[91]. - The company’s net cash used in operating activities for the same period was HKD (5,737,000), compared to HKD 46,077,000 in 2018, indicating a substantial decline[100]. - The ending cash and cash equivalents balance was HKD 15,768,000, down from HKD 18,703,000 year-over-year, indicating a tightening liquidity position[100]. - The net decrease in cash and cash equivalents for the period was HKD (29,940,000), compared to HKD (47,058,000) in the same period last year, showing improved cash management[100]. Business Operations - The company has suspended its coal trading operations due to uncertainties in the recovery of trade receivables from its sole customer[11]. - The company anticipates resuming coal trading once trade receivables are at acceptable levels[15]. - The company is optimistic about the growth potential in the education sector, driven by continuous demand for educational products and services in Hong Kong and China[59]. - The company is actively seeking business opportunities across various industries to enrich its business portfolio and support long-term growth[56]. - The company completed the acquisition of 20% of Alpha Youth Limited for a total consideration of HKD 119,000,000, contributing a profit of approximately HKD 9,800,000 during the interim period[48]. - The company plans to acquire the remaining 80% of Alpha Youth's issued share capital for RMB 368,074,000 (approximately HKD 408,562,584), pending the fulfillment of conditions in the acquisition agreement[50]. Accounting and Financial Reporting - The group has implemented new accounting standards, specifically HKFRS 16, which may affect future financial reporting and lease accounting practices[110]. - The company recognized lease liabilities and right-of-use assets of HKD 24,355,000 as of April 1, 2019, following the application of HKFRS 16[128]. - The company measures right-of-use assets at cost less any accumulated depreciation and impairment losses[114]. - The company will present right-of-use assets as a separate line item in the consolidated financial position statement[116]. - The company opted for exemptions for short-term leases and low-value asset leases, recognizing lease payments as expenses on a straight-line basis over the lease term[118]. Employee Costs - Employee costs for the six months ended September 30, 2019, were approximately HKD 12,200,000, down from HKD 18,200,000 for the same period in 2018[54]. - Total employee costs decreased to HKD 12,231,000 from HKD 18,220,000 year-on-year, reflecting a reduction of approximately 32.7%[183].

Financial Performance - The group recorded revenue of approximately HKD 115,200,000 for the year, a slight decrease of 0.5% compared to HKD 115,700,000 in the previous year[10] - The loss attributable to owners of the company was approximately HKD 15,500,000, a significant reduction from HKD 77,000,000 in the previous year[10] - The gross profit from the home consumables business was approximately HKD 8,600,000, contributing 12.1% to the total gross profit of the group[12] - The lending business generated a gross profit of approximately HKD 51,900,000, accounting for 73.1% of the total gross profit[12] - The profit share from Alpha Youth Limited, a company in which the group acquired a 20% stake, was approximately HKD 9,300,000, compared to HKD 1,400,000 in the previous year[14] - The group's revenue from continuing operations decreased slightly by approximately HKD 500,000 or 0.5% to about HKD 115,200,000 for the year ended March 31, 2019, compared to approximately HKD 115,700,000 for the year ended March 31, 2018[20] - Revenue from the home consumables business decreased by approximately HKD 7,600,000 or 14.6% to about HKD 44,500,000, primarily due to customer loss and economic slowdown in the UK[22] - The digital technology business's revenue fell by approximately HKD 4,200,000 to about HKD 2,000,000, mainly due to intense competition and rapid technological development[23] - The lending business recorded significant revenue of approximately HKD 51,900,000, an increase of about HKD 19,600,000 from approximately HKD 32,300,000 in the previous year, driven by an increase in average loans[24] - The gross profit from continuing operations increased by approximately HKD 13,300,000 or 23.0% to about HKD 71,000,000, compared to approximately HKD 57,700,000 in the previous year[26] - The gross profit margin for the education business improved from approximately 41.5% to about 58.6% due to increased demand for online education solutions[28] - Other income significantly decreased by approximately HKD 4,500,000 to about HKD 1,500,000, primarily due to the absence of interest income from bonds and dividends from non-listed equity investments[31] - The administrative expenses increased by approximately HKD 4,300,000 or 7.8% to about HKD 60,100,000, mainly due to increased employee benefits[35] - Financing costs increased by approximately HKD 22,800,000 or 89.7% to about HKD 48,100,000 for the year ended March 31, 2019, due to interest expenses from newly issued convertible bonds[37] - The group recorded a loss before tax of approximately HKD 4,200,000 for the year ended March 31, 2019, a decrease from approximately HKD 72,500,000 for the previous year, primarily due to an increase in gross profit from bond issuance business by about HKD 13,300,000[38] - Tax expenses increased to approximately HKD 7,700,000 for the year ended March 31, 2019, compared to approximately HKD 4,900,000 for the previous year, mainly due to increased profits from bond issuance business[39] - The total comprehensive loss attributable to owners of the company was approximately HKD 20,900,000 for the year ended March 31, 2019, down from approximately HKD 40,200,000 for the previous year[43] Business Strategy and Outlook - The group plans to continue exploring new sales opportunities and adjusting its product mix to enhance profitability and shareholder returns[12] - The group emphasizes a cautious approach in expanding its lending portfolio while strengthening internal controls and risk management systems[12] - The group anticipates challenges due to geopolitical and economic uncertainties, particularly related to Brexit and its impact on the home consumables business[12] - The group is committed to maximizing shareholder returns and business growth by exploring new markets and opportunities[14] - The home consumables business experienced a slight decrease in revenue, but the gross profit margin remained stable, with expectations for future growth due to resource allocation towards local industrial real estate[76] - The lending business continues to provide stable and substantial income, with the board optimistic about growth opportunities in the Hong Kong lending market[80] - The digital technology business faces significant pressure on profitability due to rapid changes in mobile user demand and intense competition, prompting the company to seek new business opportunities and partnerships[78] - The education sector is experiencing continuous demand in Hong Kong and China, leading to market research for talent education and early childhood education to assess feasibility and profitability[79] - The company plans to explore new business opportunities and product offerings as the sales team expands, anticipating revenue growth from returning customers in the home consumables segment[76] - The coal business is considering a return to operations only when accounts receivable are at acceptable levels, taking into account recent market developments and profitability[77] Corporate Governance - The company emphasizes high standards of corporate governance to enhance shareholder value and protect stakeholders' interests[96] - The company has adopted good corporate governance principles, focusing on effective internal controls and strict disclosure practices[96] - The company has complied with all provisions of the corporate governance code, except for the separation of roles between the Chairman and CEO[97] - The Chairman and CEO, Mr. Wong, held both positions during the fiscal year ending March 31, 2019, which the board deemed appropriate for maintaining policy continuity[97] - The company will review its current structure periodically and may consider necessary arrangements if suitable candidates are identified[97] - An independent non-executive director was unable to attend the annual general meeting held on September 26, 2018, due to other commitments[98] - The company will require all independent non-executive directors to attend future shareholder meetings to comply with governance code provisions[98] - The management team includes experienced professionals with extensive backgrounds in finance and healthcare[89][93] - The company has a strong focus on internal control and treasury management, as highlighted by the experience of its financial director[93] - The board believes that the current arrangement of leadership roles does not undermine the balance of power and authority within the company[97] - The board of directors is responsible for managing the overall business and ensuring that all significant issues are discussed in a timely manner[102] - The company has adopted a code of conduct for securities trading that is not less stringent than the standard code outlined in the listing rules[101] - The board consists of four executive directors and three independent non-executive directors, complying with the listing rules regarding independent director appointments[107] - The board is responsible for maintaining complete accounting records to monitor and accurately disclose the financial status of the group[105] - Independent non-executive directors provide advice on strategy and significant matters, enhancing the constructive operation of the board[110] - The company ensures that all directors have confirmed compliance with the standards of the securities trading code throughout the fiscal year ending March 31, 2019[101] - The board has the authority to appoint, remove, or reappoint members, auditors, and company secretaries[103] - The company has appropriate insurance arrangements for its directors and officers against any legal actions[108] - The board is committed to acting in the best interests of the company and its shareholders, making decisions objectively[102] - The board reviewed the corporate governance policy and report for the year ended March 31, 2019[139] Risk Management and Compliance - The company has established compliance procedures to ensure adherence to relevant laws and regulations[153] - The company has identified several key risks and uncertainties that may impact its financial condition and operational performance[154] - The company has adopted a policy for handling insider information, ensuring compliance with legal and regulatory requirements[125] - The board is responsible for the effectiveness of the internal control and risk management systems[125] - The group has engaged an independent accounting firm to review the entire loan monitoring process and enhance credit and risk assessment items within the lending business[126] - As of March 31, 2019, the group has outsourced internal audit functions to ensure effective risk management and internal control systems, with no significant deficiencies found[126] - The board has improved internal control and risk management measures based on recommendations from the audit committee, ensuring the systems are effective and sufficient[126] Shareholder Information - The company has adopted a dividend policy that balances business growth and shareholder returns, considering operational performance and financial conditions[135] - The board retains the discretion to review and amend the dividend policy as necessary[136] - The company did not recommend the payment of a final dividend for the year ended March 31, 2019, consistent with the previous year[148] - The company has a total of 52,500,000 stock options issued, with 45,000,000 exercised during the year, leaving a balance of 7,300,000 options as of March 31, 2019[166] - The stock option plan allows for a maximum of 30% of the total issued shares to be issued as options, with the current unexercised options representing 9.36% of the total issued shares[162] - The exercise price for the stock options is set at a minimum of HKD 0.48, based on the closing price on the offer date[161] - A total of 30,100,000 options were granted to employees, with 25,000,000 options exercised during the year, resulting in a remaining balance of 4,900,000 options[166] - The stock option plan was adopted on February 26, 2015, and will remain effective for ten years, expiring in 2025[161] - The company must obtain shareholder approval for any new grants of stock options that exceed the established limits[164] - The stock options must be accepted within 10 days from the offer date, with a payment of HKD 1.00 per option required[164] - The total number of shares that can be issued under the stock option plan is capped at 10% of the issued shares as of the adoption date, unless renewed by shareholder approval[162] - The company has a policy requiring independent non-executive directors' approval for granting options to connected persons[164] - The stock option plan aims to incentivize contributions from employees, directors, and business partners[161] Capital Structure and Financing - The company issued guaranteed convertible bonds totaling HKD 200,000,000 with an annual interest rate of 8%, maturing on August 10, 2019, and the initial conversion price was set at HKD 0.46 per share[171] - As of March 31, 2019, the outstanding principal amount of the convertible bonds was HKD 150,000,000, with a maximum of 326,086,956 shares to be issued upon conversion[171] - The net proceeds from the issuance of the convertible bonds were approximately HKD 199,700,000, aimed at funding potential business acquisitions in the concrete manufacturing sector in China and general operational funding[171] - The company had no distributable reserves as of March 31, 2019, consistent with the previous year[172] - The company did not enter into any management or administrative contracts related to its business during the fiscal year ending March 31, 2019[177] - As of March 31, 2019, the total issued shares of the company amounted to 2,423,783,201 shares[188] - Director Wong Wai-shing held a total of 483,500,000 shares, representing approximately 19.94% of the company's equity[182] - Director Chan Kin-lung held 10,000,000 shares, accounting for 0.41% of the company's equity[182] - Director Lee Chi-shing held 5,000,000 shares, which is 0.21% of the company's equity[182] - Double Star Global Limited holds 460,806,000 shares, representing 19.01% of the company's equity[186] - Ling Sheng Investment Limited possesses 326,086,956 shares, accounting for 13.45% of the company's equity[186] Supplier and Customer Relationships - The largest supplier accounted for 13.0% of the total procurement, down from 14.2% in 2018[199] - The top five suppliers represented 50.3% of total procurement, an increase from 44.8% in 2018[199] - Sales to the top five customers constituted 24.9% of total sales, up from 21.5% in 2018[199] - The largest customer contributed 7.4% to total sales, down from 11.2% in 2018[199] - No directors or their close associates hold beneficial interests in the top five customers or suppliers[199] - The company has maintained sufficient public float as of the report date[198] Environmental and Social Responsibility - The group is committed to environmental protection and has implemented best practices to fulfill its environmental commitments[152] - The company made charitable donations of approximately HKD 71,200 in the fiscal year ending March 31, 2019, compared to HKD 91,000 in the previous year[172] Events After Reporting Period - There were no significant events after the reporting period, aside from those disclosed in the management discussion and analysis section[200]