Financial Performance - Revenue from the concrete business decreased from approximately HKD 633.6 million to about HKD 547.8 million, a decline of approximately 13.5%[9] - Total revenue from continuing operations fell by about HKD 94.5 million or 14.3%, from approximately HKD 660.4 million to about HKD 565.9 million[18] - The net loss attributable to the owners of the company was approximately HKD 31.4 million, down from about HKD 54.8 million in the previous year[17] - Gross profit from continuing operations decreased by approximately HKD 35,900,000 or 18.9% to about HKD 154,500,000, primarily due to a decline in concrete sales and a reduction in the total loan portfolio in the lending business[22] - The total comprehensive loss attributable to the owners of the company for the year was approximately HKD 44,500,000, down from approximately HKD 62,400,000 in the previous year[37] - Other income decreased from approximately HKD 12,600,000 to about HKD 9,200,000, mainly due to a reduction in rental income from concrete mixer trucks[26] - The financing cost decreased by approximately HKD 2,200,000 or 10.7% to about HKD 18,400,000, attributed to the repayment of loans and notes payable[30] - The company recorded a pre-tax loss from continuing operations of approximately HKD 26,900,000, a decrease from approximately HKD 47,300,000 in the previous year[33] Business Operations - The concrete business accounted for 96.8% of total revenue, while the lending business contributed 3.2%[18] - The ongoing development of the Hainan Free Trade Port is expected to drive infrastructure development in Hainan Province, presenting growth opportunities for the company[10] - The concrete business remains the main growth driver for the group, with expectations of stable revenue and long-term profitability supported by favorable policies for Hainan Free Trade Port[77] - The group plans to allocate resources to explore new opportunities and potential collaborations within the concrete and construction industry in China, particularly in Hainan Province[77] - The lending business faces high loan default risks due to a high-interest environment and global economic downturn, leading to a reduction of approximately 140 licensed lenders from 2022 to 2023[78] - The group is gradually reducing its loan portfolio in response to strict regulatory oversight, rising operational costs, and declining credit quality, with plans to continue monitoring market fluctuations[78] Financial Position - As of March 31, 2024, the group's total debt is approximately HKD 328.6 million, down from HKD 367.8 million in 2023, reflecting a decrease of about 10.5%[38] - The group's cash and cash equivalents amount to approximately HKD 163.4 million as of March 31, 2024, significantly up from HKD 69.5 million in 2023, representing an increase of about 134%[38] - The current ratio is approximately 2.5 as of March 31, 2024, compared to 2.1 in 2023, indicating improved financial resource availability[38] - The capital debt ratio is approximately 34.2% as of March 31, 2024, down from 38.1% in 2023, showing a reduction in leverage[38] - The total outstanding loan principal before impairment losses is approximately HKD 163.3 million as of March 31, 2024, down from HKD 219.3 million in 2023, a decrease of about 25.6%[56] Corporate Governance - Mr. Huang Wei-sheng has resigned as Executive Director and Chairman on November 30, 2023, with Mr. Li Ren-jie appointed as Non-Executive Director and Chairman from December 1, 2023[95] - The Board of Directors is responsible for maintaining complete accounting records to monitor and accurately disclose the financial status of the group[99] - The company has adopted a code of conduct for directors' securities trading, ensuring compliance with the standards set forth in the listing rules[96] - The Board is committed to reviewing and improving corporate governance practices to ensure prudent regulation of business activities and decision-making processes[95] - The Board consists of two Executive Directors, one Non-Executive Director, and three Independent Non-Executive Directors, complying with listing rules regarding independent director appointments[105] - The company has established appropriate insurance arrangements for its directors and officers against legal actions, with coverage reviewed annually[106] - The Board is responsible for formulating overall strategies and reviewing financial performance, internal controls, and risk management systems[102] - All Independent Non-Executive Directors have confirmed their independence annually, and the nomination committee has assessed their independence[107] Risk Management - The company identified several key risks, including raw material supply disruptions and price fluctuations, which could significantly impact its financial performance[185] - Credit risk management is in place to minimize bad debt exposure, with specific personnel assigned to monitor receivables and credit limits[186] - The company faces operational risks due to potential internal process deficiencies and external events, which cannot be entirely eliminated[188] - The company has a risk management policy detailed in the annual report, addressing financial risks and internal controls[191] - The internal control and risk management system is reviewed annually by the board, which aims to manage risks affecting business objectives rather than eliminate them entirely[126] Shareholder Engagement - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting within two months of submitting a written request[149] - The company encourages shareholder participation in annual general meetings to discuss business progress[156] - All communications with shareholders are also available on the company's website and the Hong Kong Stock Exchange website[156] - The company has reviewed the effectiveness of its shareholder communication policy and found it to be effective[157] Employee Relations and Diversity - The group employed a total of 174 employees as of March 31, 2024, down from 200 in 2023, with total employee costs (including directors' remuneration) amounting to approximately HKD 35.2 million (2023: HKD 42.4 million)[65] - The board currently consists of one female director and five male directors, achieving the measurable diversity goals set for the year[142] - Approximately 23.6% of the group's employees, including senior management, are female, with a commitment to gender diversity in leadership roles[143] - The company has implemented a comprehensive plan to identify and train female employees with leadership potential for promotion to senior management or the board[143] Environmental Commitment - Environmental protection remains a key focus, with the company committed to prudent resource utilization and compliance with environmental laws[179]

Financial Performance - Revenue from continuing operations decreased by approximately 14.3% to about HKD 565,900,000[3] - Gross profit from continuing operations decreased by approximately 18.9% to about HKD 154,500,000, with a gross margin decline from approximately 28.8% to about 27.3%[3] - The loss attributable to owners of the company for the year was approximately HKD 31,400,000, with basic and diluted loss per share from continuing and discontinued operations at approximately HKD 0.0621[3] - Total revenue for the year was HKD 565,906,000, down from HKD 660,371,000 in the previous year[4] - Other income decreased from HKD 12,645,000 to HKD 9,214,000[4] - The company reported a total comprehensive loss attributable to owners of approximately HKD 44,531,000, compared to HKD 62,366,000 in the previous year[5] - The company reported an annual loss of HKD 31,441,000 for the year ending March 31, 2024, compared to a loss of HKD 54,774,000 in the previous year, indicating a 42% improvement in loss[10] - The total comprehensive loss for the year was HKD 44,531,000, which includes a loss of HKD 14,162,000 from other comprehensive income[10] Assets and Liabilities - The company's total assets decreased from HKD 1,257,186,000 to HKD 1,171,255,000[7] - Current liabilities decreased from HKD 601,969,000 to HKD 460,804,000, improving the net current asset position[9] - Non-current assets decreased from HKD 541,616,000 to HKD 464,724,000, primarily due to a decline in goodwill and other intangible assets[7] - The company’s equity attributable to owners remained relatively stable at HKD 960,397,000 compared to HKD 964,302,000 in the previous year[9] - As of March 31, 2024, total equity amounted to HKD 960,397,000, a slight decrease from HKD 964,302,000 as of March 31, 2023[10] - Total liabilities decreased from HKD 834,500 thousand in 2023 to HKD 675,582 thousand in 2024, a reduction of about 19.0%[33] - The company reported a loss of HKD 19,714 thousand in goodwill impairment in 2024, compared to a loss of HKD 30,765 thousand in 2023, indicating an improvement of approximately 35.9%[43] Revenue Breakdown - Revenue from continuing operations for the concrete business decreased to HKD 547,762,000 in 2024 from HKD 633,596,000 in 2023, representing a decline of approximately 13.5%[28] - Interest income from the lending business fell to HKD 18,144,000 in 2024 compared to HKD 26,775,000 in 2023, a decrease of about 32.4%[28] - Concrete business revenue accounted for approximately 96.8% of total revenue, decreasing by approximately HKD 85.8 million or 13.5% to approximately HKD 547.8 million[117] - The lending business revenue decreased by approximately HKD 8.6 million or 32.2% to approximately HKD 18.1 million, attributed to a reduction in the average total loan portfolio[118] Cost and Expenses - The cost of goods sold for the year was HKD 408,821,000, down from HKD 467,187,000 in the previous year, indicating a decrease of about 12.5%[49] - The total employee costs decreased to HKD 35,213,000 in 2024 from HKD 42,417,000 in 2023, reflecting a reduction of approximately 17%[49] - Selling and distribution expenses decreased by approximately HKD 28.4 million or 35.0%, mainly due to lower transportation costs from using more environmentally friendly electric vehicles[125] - Financing costs decreased by approximately HKD 2.2 million or 10.7% to approximately HKD 18.4 million, due to repayment of loans and notes[128] Shareholder Equity and Financing - The company issued new shares under a placement agreement, raising HKD 73,395,000 in the previous year and HKD 13,434,000 in the current year[10] - The company issued a total of HKD 56,946,000 in bonds during the year, with interest expenses amounting to HKD 7,971,000[99] - The company raised additional funds through the placement of 839.6 million shares at a price of HKD 0.016 per share and a rights issue of 251.9 million shares at HKD 0.115 per share[163][164] Impairment and Credit Risk - The impairment loss on goodwill amounted to approximately HKD 19,700,000, primarily due to increased competition and rising operating costs in the lending business[133] - The provision for expected credit losses on trade receivables increased to HKD 30,151,000 in 2024 from HKD 21,233,000 in 2023, indicating a rise in credit risk[78] - The aging analysis of trade receivables showed that overdue amounts over 90 days increased to HKD 296,036,000 in 2024 from HKD 257,071,000 in 2023[75] Business Operations - The company’s business operations primarily focus on the production and sale of ready-mixed concrete and lending services, with the home consumables business classified as discontinued operations[13] - The company completed the sale of its home consumables business on September 29, 2022, which is now classified as discontinued operations[27] - The concrete business remains the main growth driver for the company, with expectations of stable revenue supported by favorable policies for the Hainan Free Trade Port[172] Future Outlook and Strategy - The company plans to explore new opportunities in the concrete market in Hainan through potential collaborations with various industry partners[172] - The lending business faces high loan default risks due to a high-interest environment and a sluggish global economy, leading the company to gradually reduce its loan portfolio[174] - The company will continue to monitor market fluctuations and may further reduce its loan portfolio in the upcoming fiscal year[174] - The company is committed to high standards of corporate governance, emphasizing effective internal controls and transparency[175]

Financial Performance - The company reported a net loss attributable to owners of approximately HKD 3,800,000 for the six months ended September 30, 2023, compared to a net loss of approximately HKD 51,400,000 for the same period in 2022, indicating a significant improvement [7]. - The net loss from continuing operations decreased to approximately HKD 2,500,000 for the interim period, down from approximately HKD 43,300,000 in the same period last year, representing a reduction of about 94.2% [23]. - The group recorded a total comprehensive loss attributable to owners of the company of approximately HKD 23,000,000 for the interim period, compared to a total comprehensive loss of approximately HKD 97,800,000 in the same period last year [27]. - The company reported a loss of HKD 3,776,000 for the period, contributing to a total comprehensive loss of HKD 22,987,000 [89]. - The total comprehensive loss attributable to the company's owners for the period is HKD 22,987,000, down from HKD 97,752,000 in the previous year, showing a significant reduction [80]. Revenue and Business Segments - Revenue from continuing operations decreased by approximately HKD 42,800,000 or 12.0% to about HKD 312,900,000 for the current period, down from approximately HKD 355,700,000 in the previous period [8]. - Concrete business revenue accounted for approximately 96.6% of total revenue, with a decrease of about HKD 39,600,000 or 11.6% to approximately HKD 302,200,000, primarily due to price reductions to increase market share and production interruptions caused by local lockdown measures in Hainan Province [11]. - The lending business revenue decreased by approximately HKD 3,200,000 or 22.9% to about HKD 10,700,000, attributed to a reduction in the average total loan portfolio from approximately HKD 251,500,000 to about HKD 212,800,000 [12]. - Revenue from the concrete business for the six months ended September 30, 2023, was HKD 302,187 thousand, a decrease of 11.6% from HKD 341,786 thousand in the same period of 2022 [104]. - Interest income from the lending business was HKD 10,696 thousand, down from HKD 13,877 thousand year-on-year, representing a decline of 22.3% [104]. Cost Management and Profitability - The cost of sales for continuing operations decreased by approximately HKD 38,100,000 or 14.7% to about HKD 220,700,000, mainly due to a decline in raw material prices [14]. - Gross profit for continuing operations decreased by approximately HKD 4,700,000 or 4.9% to about HKD 92,200,000, with the gross profit margin improving from 27.2% to 29.5% [15]. - The gross margin for the concrete business increased from approximately 24.3% to about 27.0%, driven by cost control measures and more efficient resource utilization [16]. - The company continues to focus on cost control and resource efficiency to enhance profitability in its concrete business [16]. - Sales and distribution expenses significantly decreased by approximately HKD 17,300,000 or 38.6% compared to the same period last year, mainly due to lower transportation costs from using more environmentally friendly electric vehicles [20]. Debt and Financial Position - As of September 30, 2023, the group had total debt of approximately HKD 356,600,000, down from approximately HKD 367,800,000 as of March 31, 2023 [28]. - The current ratio as of September 30, 2023, was 2.2, reflecting sufficient financial resources, compared to 2.1 as of March 31, 2023 [28]. - The group’s capital debt ratio was 37.9% as of September 30, 2023, slightly down from 38.1% as of March 31, 2023 [28]. - The company’s total liabilities related to trade payables and other payables were HKD 421,721,000 as of September 30, 2023, compared to HKD 450,703,000 as of March 31, 2023, indicating a reduction of approximately 6.4% [178]. Employee and Management Costs - The group employed a total of 190 employees as of September 30, 2023, a decrease from 200 employees as of September 30, 2022 [47]. - Employee costs during the interim period were approximately HKD 19.9 million, slightly up from HKD 19.8 million during the same period last year [47]. - The company’s management compensation for the six months ended September 30, 2023, was HKD 5,067,000, compared to HKD 5,318,000 for the same period in 2022 [193]. Corporate Governance and Compliance - The company is committed to maintaining good corporate governance practices and has complied with the Corporate Governance Code throughout the interim period [60]. - The company’s audit committee reviewed the interim financial statements, ensuring compliance with accounting standards [76]. Future Outlook and Strategic Initiatives - The company is exploring market expansion opportunities and new strategies to enhance its business performance moving forward [6]. - The company aims to explore new business opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area and Hainan Province, seeking partnerships with experienced operators [56]. - The concrete business remains the main growth driver, with a gradual recovery in performance despite a year-on-year revenue decline during the interim period [56]. - Due to rising loan default risks in the Hong Kong lending industry, the company plans to gradually reduce the scale of its loan portfolio in the upcoming fiscal year [57]. Impairment and Asset Management - The group recognized goodwill impairment losses of approximately HKD 5,600,000 related to its lending business during the interim period [26]. - The company incurred a total impairment loss of HKD 30,765,000 on goodwill as of September 30, 2023, with HKD 28,684,000 related to the concrete business [144]. - The company’s impairment assessment indicated that reasonable changes in key assumptions would not result in the carrying amount exceeding the recoverable amount for the concrete business [151]. Share Capital and Equity - The company completed a placement of 839,600,000 shares at a price of HKD 0.016 per share, raising approximately HKD 13,120,000 for repaying short-term debts [51]. - The board proposed a share consolidation of every ten existing shares into one share with a par value of HKD 0.1, changing the trading board lot from 2,000 to 20,000 shares [52]. - As of September 30, 2023, the total number of issued shares is 4,198,098,293 [66]. Cash Flow and Liquidity - For the six months ended September 30, 2023, the net cash used in operating activities was HKD (8,736) thousand, a significant improvement from HKD (26,852) thousand in the same period of 2022 [92]. - The total cash and cash equivalents decreased by HKD 27,641 thousand, contrasting with an increase of HKD 47,124 thousand in the prior year [92]. - The cash and cash equivalents at the end of the period were HKD 45,287 thousand, down from HKD 145,690 thousand at the end of the same period last year [92].

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的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何 部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 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） 1323 （股份代號： ） 截至二零二三年九月三十日止六個月的 未經審核中期業績公佈 華盛國際控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及其 附屬公司（統稱為「本集團」）截至二零二三年九月三十日止六個月（「中期期間」）的未 經審核簡明綜合中期業績。 業務及財務回顧 (i) (ii) 於中期期間，本集團一直從事 生產及銷售預拌商品混凝土（「混凝土業務」）；及 提供放債服務（「放債業務」）。 ...

Financial Performance - The company's revenue for the fiscal year ending March 31, 2023, was approximately HKD 660,400,000, a decrease of about 17.9% compared to the previous year[9]. - The concrete business generated revenue of approximately HKD 633,600,000, down 17.7% year-on-year, primarily due to a temporary suspension of production caused by COVID-19 in Haikou[9]. - The net loss attributable to shareholders for the year was approximately HKD 54,800,000, compared to a profit of approximately HKD 31,300,000 in the previous year[15]. - The total revenue for the year was approximately HKD 660.4 million, down from HKD 803.9 million in the previous year[18]. - The company recorded a loss before tax of approximately HKD 47.3 million, compared to a profit of about HKD 26.7 million in the previous year, primarily due to increased impairment losses[31]. - The total comprehensive loss attributable to the company's owners for the year was approximately HKD 62.4 million, compared to a comprehensive income of approximately HKD 46.8 million in the previous year[36]. - The company recorded net other losses of approximately HKD 93.8 million, significantly higher than the previous year's losses of about HKD 3.7 million[25]. - The average total loan portfolio decreased from approximately HKD 248.9 million to about HKD 230.5 million, leading to a revenue drop in the lending business[20]. - The company achieved a gross profit margin of 28.8% for continuing operations, up from 22.6% in the previous year[21]. - The gross profit for the concrete business increased from approximately HKD 147.5 million to about HKD 163.6 million, with a gross margin improvement from 19.2% to 25.8%[21][22]. Business Strategy and Future Outlook - The company aims to diversify its business and mitigate financial risks by seeking new investment opportunities in the future[13]. - The management expresses confidence in a potential rebound of the concrete business as the Chinese economy recovers from COVID-19[11]. - The company plans to continue reviewing business performance and investments to maximize shareholder returns and business growth[13]. - The company anticipates benefiting from economic growth opportunities in Hainan Province due to supportive government policies for the development of a free trade port[11]. - The company plans to allocate more resources to explore new opportunities in the concrete market, particularly in Hainan Province and the Greater Bay Area[72]. - The company is committed to enhancing cost-saving measures in response to the challenging external environment post-pandemic[71]. - The company has not disclosed any significant investment or capital asset plans as of the report date[70]. Corporate Governance - The company emphasizes high standards of corporate governance to enhance shareholder value and protect stakeholder interests[86]. - The company has adopted good corporate governance principles, focusing on effective internal controls and transparency[86]. - The company has complied with all provisions of the corporate governance code as per the Hong Kong Stock Exchange, except for the separation of roles between the Chairman and CEO[87]. - The board believes that the dual role of the Chairman and CEO is in the best interest of the company, ensuring policy continuity and operational stability[88]. - The company has implemented a code of conduct for directors' securities trading, adhering to the standards set by the listing rules[89]. - The company has a strong management team with extensive experience in various fields, including finance and corporate governance[84][80]. - The company is committed to continuously reviewing and improving its corporate governance practices[88]. - The company has a diverse board with members holding qualifications from reputable institutions and extensive industry experience[79][83]. - The board of directors is responsible for managing the overall business and ensuring the creation of conditions for the effectiveness of the board and individual directors[91]. - The board has a duty to maintain complete accounting records to monitor and accurately disclose the financial status of the group[92]. Risk Management - The company has established compliance procedures to ensure adherence to relevant laws and regulations impacting its operations[163]. - The internal control and risk management systems are designed to manage risks affecting business objectives, providing reasonable assurance[114]. - The company identifies key risks including raw material supply disruptions and price fluctuations that could adversely affect its operations[165]. - Credit risk increases during economic downturns, prompting the company to review receivables and ensure adequate provisions for bad debts[166]. - The company continuously monitors the recoverability of loans and borrower status, reporting any delays or breaches to management[158]. - Loan applications are evaluated based on collateral, financial background, repayment ability, and customer reputation to mitigate recoverability risks[156]. Shareholder Engagement and Dividends - The company encourages shareholder participation in annual general meetings to discuss business progress[139]. - The board does not recommend the distribution of a final dividend for the year, consistent with the previous year[148]. - The company has adopted a dividend policy that balances sufficient funding for business growth with shareholder returns[140]. - The board will continue to review the dividend policy and retains the discretion to update or cancel it as necessary[142]. Employee and Board Diversity - Approximately 24% of the group's employees, including senior management, are female, while 76% are male[128]. - The company aims to appoint at least one female director by December 31, 2024, to enhance gender diversity on the board[127]. - The company is committed to identifying and training female employees with leadership potential for advancement to senior management or the board[128]. - The board currently consists solely of male directors, with a service tenure ranging from three to twelve years[127]. - The nomination committee evaluated the board's structure and diversity, assessing the independence of non-executive directors[121]. Audit and Compliance - The audit committee is composed entirely of independent non-executive directors, ensuring objectivity in financial oversight[109]. - The audit committee conducted three meetings to review the annual report and interim report, ensuring the integrity of financial statements[110]. - The external auditor's fees for statutory audit and non-audit services were approximately HKD 1,500,000 and HKD 15,000 respectively[113]. - The company has implemented a whistleblowing policy to protect employees reporting financial misconduct[112]. - The company has engaged external consultants to assess the effectiveness of its risk management and internal control systems[116]. Capital Structure and Share Issuance - The group issued a total of 699 million ordinary shares during the year, increasing the total issued shares to 4,198,098,293 as of March 31, 2023[40]. - The stock option plan adopted on February 26, 2015, has a duration of ten years, with a maximum issuance limit of 30% of the company's issued shares[178]. - The total number of shares that can be issued under the stock option plan is capped at 349,909,829 shares, representing 8.33% of the company's issued shares as of the report date[179]. - The company successfully placed 699,000,000 shares on April 29, 2022, as part of its fundraising activities[184]. Other Financial Information - The company raised approximately HKD 73.4 million through a placement of shares on April 29, 2022, for general working capital and business growth[61]. - The company has a reserve available for distribution as of March 31, 2023, detailed in the financial statements[185]. - The company made a charitable donation of HKD 10,000 during the fiscal year[186]. - The company has no capital commitments as of March 31, 2023, compared to HKD 67.55 million in 2022[56].

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的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何 部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 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） 1323 （股份代號： ） 截至二零二三年三月三十一日止年度的 末期業績初步公佈； 及 建議採納新章程細則 財務摘要 • 17.9% 660,400,000 持續經營業務的收益減少約 至約 港元。 • 4.9% 190,400,000 持續經營業務的毛利增加約 至約 港元。 • 22.6% 28.8% ...

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].

Financial Performance - The total revenue for the fiscal year ended March 31, 2022, was approximately HKD 864.5 million, a slight decrease of 6% compared to the previous year[5]. - The net profit attributable to the owners of the company for the year was HKD 31.3 million, down 28.7% from the previous year, with basic earnings per share of HKD 0.89[5]. - Revenue from the concrete business accounted for 89.1% of total revenue, with a decrease of 8.2% to approximately HKD 769.8 million from HKD 838.5 million in the previous year[10]. - Revenue from the home consumables business increased by 27.2% to approximately HKD 60.6 million, driven by increased sales in the UK[14]. - The lending business revenue slightly increased by 2.7% to approximately HKD 34.1 million[14]. - The gross profit for the continuing operations decreased by approximately HKD 3,500,000 or 1.8% year-on-year to about HKD 194,500,000, primarily due to a decline in sales volume in the concrete business[15]. - The total comprehensive income attributable to owners of the company was approximately HKD 46,800,000, compared to about HKD 50,200,000 in the previous year[29]. - The profit before tax for continuing operations rose to approximately HKD 32,100,000 from about HKD 19,900,000 in the previous year[27]. Business Strategy and Operations - The company aims to expand its concrete business through potential acquisitions of small to medium-sized concrete manufacturers[6]. - The company is exploring the feasibility of vertical expansion by acquiring raw material businesses related to concrete, such as sand and gravel[6]. - The focus on Hainan Province is expected to continue, as the government has policies supporting its development as a significant free trade port by 2050[6]. - The concrete business demonstrated resilience amid global changes and market fluctuations, with expectations of benefiting from stable real estate policies in China[5]. - The concrete business continued to generate strong and stable revenue despite economic downturns, with expectations for steady growth in demand due to government support for infrastructure development[56]. - The group is exploring the feasibility of acquiring or investing in sand and gravel supply businesses to ensure stable raw material supply for the concrete segment[56]. - The home consumables business showed slight growth compared to the previous year, although rising prices and supply chain challenges may hinder recovery in the UK economy[57]. - The lending business remains a stable source of income, with the group positioned as one of the third-tier lenders in Hong Kong, maintaining rigorous risk assessment procedures[58]. Corporate Governance - The company is committed to high standards of corporate governance to enhance shareholder value and protect the interests of stakeholders[72]. - The company has adopted good corporate governance principles emphasizing effective internal controls and transparency[72]. - The company has complied with all provisions of the corporate governance code except for the separation of roles between the chairman and the CEO[73]. - The board believes that the dual role of the chairman and CEO held by Mr. Huang is suitable and beneficial for the company's interests, ensuring policy continuity and operational stability[74]. - The board is responsible for maintaining complete accounting records to monitor and accurately disclose the group's financial status[78]. - The company has adopted a code of conduct for directors' securities trading, ensuring compliance with the standards set out in the listing rules[75]. - The board consists of three executive directors and three independent non-executive directors, meeting the listing rules' requirements for independent board composition[81]. - The company has appropriate insurance arrangements for its directors and executives against legal actions, with coverage reviewed annually[82]. - The board is committed to continuously reviewing and improving corporate governance practices to ensure prudent regulation of business activities[74]. - The directors are responsible for preparing the consolidated financial statements, ensuring they present a true and fair view of the group's financial position[86]. Risk Management and Compliance - The group has identified several key risks and uncertainties that may impact its financial condition and operational performance, including business and financial risks related to major customer relationships[137]. - The group has established compliance procedures to ensure adherence to listing rules and other applicable laws, with a focus on significant impacts on its operations[135]. - The board is responsible for the effectiveness of the internal control and risk management systems, which are reviewed annually[97]. - The company has established policies for handling insider information, ensuring compliance with regulations[97]. Employee and Training Development - The group employed a total of 221 employees as of March 31, 2022, down from 267 employees the previous year, with employee costs approximately HKD 52.6 million, unchanged from the previous year[51]. - The group has developed comprehensive training programs and diverse career development paths for employees[131]. - The company emphasizes ongoing professional training for directors, ensuring they are updated on business operations and regulatory changes[87]. - The company encourages directors to participate in relevant training courses, with costs covered by the company[87]. Shareholder and Financial Management - The group encourages shareholder participation in annual general meetings to discuss business developments and performance[122]. - The board will continue to review the dividend policy, balancing sufficient funding for business growth and shareholder returns[110]. - The board does not recommend the distribution of a final dividend for the year, compared to a dividend of HK$0.03 per ordinary share in the previous year[128]. - The group completed a placement of 699 million ordinary shares at a price of HKD 0.105 per share on April 29, 2022, raising approximately HKD 71.2 million for business growth and expansion[52]. Audit and Financial Reporting - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2022, in accordance with Hong Kong Financial Reporting Standards[190]. - The audit committee conducted three meetings to review the annual report and interim report, ensuring the integrity of financial reporting[95]. - The audit committee reviewed the management accounting principles and practices adopted by the group, discussing audit, internal control, and financial reporting matters[185]. - The external auditor's fees for statutory audit and non-audit services were approximately HKD 1,530,000 and HKD 15,000 respectively, compared to HKD 1,450,000 and HKD 15,000 for the previous year[96]. - The group’s financial statements include key audit matters that were deemed most important during the audit process[192].

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].