Corporate Information [Directors and Committees](index=3&type=section&id=Directors%20and%20Committees) The report lists the company's executive and independent non-executive directors and committee members, with Mr. Yip Mau Lin as Chairman and Mr. Hui Yik Bun as CEO - The company's Chairman is **Mr. Yip Mau Lin**, and the Chief Executive Officer is **Mr. Hui Yik Bun**[5](index=5&type=chunk) - The chairmen of the Audit, Remuneration, and Risk Management Committees are all **Mr. Yu Yan Kong**, an independent non-executive director[4](index=4&type=chunk)[5](index=5&type=chunk)[7](index=7&type=chunk) [Corporate Offices and Advisors](index=4&type=section&id=Corporate%20Offices%20and%20Advisors) This section provides key operational information including the company's registered office, principal place of business, share registrar, principal bankers, and auditor, KPMG - The company's head office and principal place of business are located at 10th and 23rd Floors, Wing On House, 71 Des Voeux Road Central, Hong Kong[7](index=7&type=chunk)[9](index=9&type=chunk) - The company's auditor is **KPMG**[12](index=12&type=chunk) Management Discussion and Analysis [Market Review](index=6&type=section&id=Market%20Review) Despite H1 2020 economic weakness, the Hong Kong stock market saw significant growth in trading volume and a 57.9% increase in IPO fundraising, driven by returning Chinese concept stocks and loose monetary policies - In H1 2020 (Q2 and Q3), the average daily turnover of Hong Kong stocks was approximately **HKD 128.08 billion**, a significant year-on-year increase of approximately **49.9%**[24](index=24&type=chunk)[26](index=26&type=chunk) - In the first nine months of 2020, Hong Kong's IPO market raised **HKD 211.4 billion**, a **57.9%** year-on-year increase, primarily benefiting from the return of Chinese concept stocks[24](index=24&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) - The "stay-at-home economy" and strong online investment demand due to the pandemic, coupled with loose monetary policies globally, led to Hong Kong's banking system balance exceeding **HKD 450 billion**, driving active stock market trading[21](index=21&type=chunk)[23](index=23&type=chunk) [Operating Results](index=9&type=section&id=Operating%20Results) For the six months ended September 30, 2020, the Group achieved strong growth with total revenue increasing by 48.0% to HKD 583 million and profit attributable to shareholders surging by 63.6% to HKD 346 million, driven by active market trading and the IPO boom Key Performance Indicators for H1 FY2020/21 | Indicator | For the Six Months Ended September 30, 2020 | For the Six Months Ended September 30, 2019 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Revenue** | HKD 582.9 million | HKD 393.8 million | +48.0% | | **Profit Attributable to Shareholders** | HKD 346.1 million | HKD 211.5 million | +63.6% | | **Basic Earnings Per Share** | 20.39 HK cents | 12.46 HK cents | +63.6% | - The Board does not recommend the payment of an interim dividend for the period[30](index=30&type=chunk)[31](index=31&type=chunk) [Client Accounts and Assets](index=10&type=section&id=Client%20Accounts%20and%20Assets) During the period, the Group's client base and assets under management continued to expand, driven by the launch of mobile trading applications, resulting in significant year-on-year growth in both metrics Client Data Growth | Indicator | September 30, 2020 | September 30, 2019 | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | **Total Client Accounts** | 405,761 accounts | 300,555 accounts | +35.0% | | **Client Assets Under Management** | approx. HKD 53.6 billion | approx. HKD 42.1 billion | +27.3% | - During the period, **67,957 new accounts** were opened (net of closed accounts)[36](index=36&type=chunk)[37](index=37&type=chunk) [Revenue Breakdown](index=12&type=section&id=Revenue%20Breakdown) The Group's total revenue grew by 48.0%, primarily driven by explosive growth in securities brokerage, IPO brokerage, and IPO financing interest income, with securities brokerage becoming the largest revenue source and IPO-related businesses surging over 16 times, while margin financing interest income decreased by 24.2% due to lower interest rates Revenue Overview by Business Segment (For the Six Months Ended September 30) | Business Segment | 2020 (HKD thousand) | 2019 (HKD thousand) | Increase/Decrease | | :--- | :--- | :--- | :--- | | Securities Brokerage | 219,990 | 113,080 | +94.5% | | IPO Brokerage | 21,416 | 3,857 | +455.1% | | IPO Financing Interest | 95,321 | 2,693 | +3,439.6% | | Margin Financing Interest | 114,092 | 150,421 | -24.2% | | Hong Kong Futures and Options Brokerage | 62,460 | 62,393 | +0.1% | | Global Futures Brokerage | 53,754 | 46,606 | +15.3% | | **Total** | **582,891** | **393,757** | **+48.0%** | [Operating Expenses and Net Profit Margin](index=16&type=section&id=Operating%20Expenses%20and%20Net%20Profit%20Margin) Total operating expenses increased by 24.1% to HKD 329.6 million, but the net profit margin improved from 53.7% to 59.4% due to stronger revenue growth, with increased financial costs, advertising, and brokerage fees contributing to the expense rise - Net profit margin increased by **5.7 percentage points** from **53.7%** to **59.4%** year-on-year[60](index=60&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) Key Operating Expense Changes (For the Six Months Ended September 30) | Expense Item | 2020 (HKD thousand) | 2019 (HKD thousand) | Increase/Decrease | | :--- | :--- | :--- | :--- | | Financial Costs | 99,139 | 55,967 | +77.1% | | Advertising and Promotion Expenses | 15,707 | 5,148 | +205.1% | | Brokerage Commissions, Handling Fees and Clearing Charges | 66,406 | 40,252 | +65.0% | | Staff Costs | 64,199 | 71,365 | -10.0% | | **Total Operating Expenses** | **329,641** | **265,643** | **+24.1%** | [Future Plans](index=18&type=section&id=Future%20Plans) The Group plans to diversify global financial products, invest in FinTech for digital trading, enhance online security, expand into mainland China, optimize branch networks, recruit talent, and boost brand competitiveness - The Group will continue to develop new features for the "Bright Smart Securities (Baby)" and "Bright Smart Futures (Doudou)" apps, advancing client trading services towards digitalization and intelligence[75](index=75&type=chunk)[77](index=77&type=chunk)[79](index=79&type=chunk) - Plans include expanding into the mainland China market through diversified online channels and enhancing brand recognition domestically[83](index=83&type=chunk)[85](index=85&type=chunk) - Continuous investment in enhancing the efficiency, capacity, and security of online trading systems, including simulation tests exceeding five times the current peak transaction volume[80](index=80&type=chunk)[82](index=82&type=chunk) - The Group will continue to explore more global financial products to meet market demand for Hong Kong stocks, US stocks, A-shares, various futures, and foreign exchange products[74](index=74&type=chunk)[76](index=76&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=23&type=section&id=Capital%20Structure%2C%20Liquidity%20and%20Financial%20Resources) The Group relies on equity, cash flow, and bank borrowings for funding, maintaining ample liquidity; as of September 30, 2020, bank balances were HKD 407 million, total bank borrowings surged to HKD 23.765 billion, resulting in a 1340.4% gearing ratio and 1.1x current ratio Financial Position Indicators | Indicator | September 30, 2020 | March 31, 2020 | | :--- | :--- | :--- | | **Bank Deposits, Balances and Cash** | HKD 407.3 million | HKD 477.7 million | | **Total Bank Borrowings** | HKD 23.7651 billion | HKD 2.8588 billion | | **Gearing Ratio** | 1,340.4% | 150.3% | | **Current Ratio** | 1.1 times | 1.4 times | | **Unutilized Bank Facilities** | HKD 11.6478 billion | HKD 18.0496 billion | [Risk Management](index=24&type=section&id=Risk%20Management) The Group has established a comprehensive risk management framework to address credit, liquidity, interest rate, foreign currency, and price risks, managing credit risk through client assessment and collateral, and liquidity risk by monitoring funding needs and maintaining sufficient cash and bank facilities - **Credit Risk**: Primarily arises from amounts due from clients, brokers, and clearing houses, managed by individual credit assessments, requiring securities collateral or cash deposits, and daily monitoring of margin levels[96](index=96&type=chunk)[97](index=97&type=chunk)[99](index=99&type=chunk) - **Liquidity Risk**: The Group regularly monitors liquidity requirements, ensuring sufficient cash reserves and adequate committed financing facilities from major financial institutions[103](index=103&type=chunk)[104](index=104&type=chunk) - **Price Risk**: Primarily arises from listed equity investments, futures contracts, and receivables linked to the fair value of client collateral; the Group regularly monitors investment portfolio performance[109](index=109&type=chunk)[110](index=110&type=chunk)[112](index=112&type=chunk) [Employees and Remuneration Policies](index=26&type=section&id=Employees%20and%20Remuneration%20Policies) As of September 30, 2020, the Group had 261 employees and implements a market-competitive remuneration policy, including bonus schemes, to attract, retain, and motivate staff, while also providing appropriate training and development programs - As of September 30, 2020, the Group had **261 employees**, a slight decrease from **263** as of March 31, 2020[111](index=111&type=chunk)[113](index=113&type=chunk) Other Information [Directors' and Substantial Shareholders' Interests](index=27&type=section&id=Directors%27%20and%20Substantial%20Shareholders%27%20Interests) The report discloses the shareholdings of directors and substantial shareholders as of September 30, 2020, indicating that Mr. Yip Mau Lin, the company's Chairman, is the controlling shareholder, holding approximately 68.67% of the shares through his wholly-owned Bright Smart Holdings Limited and personal beneficial ownership Substantial Shareholders' Shareholdings (September 30, 2020) | Shareholder Name | Nature of Interest | Number of Shares | % of Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Yip Mau Lin | Interest in Controlled Corporation | 900,000,000 | 53.02% | | Mr. Yip Mau Lin | Beneficial Owner | 265,746,280 | 15.65% | | Bright Smart Holdings Limited | Beneficial Owner | 900,000,000 | 53.02% | [Corporate Governance](index=30&type=section&id=Corporate%20Governance) During the reporting period, the company fully complied with the Corporate Governance Code set out in Appendix 14 of the Listing Rules, adopted the Model Code for directors' securities transactions, and confirmed all directors' compliance, with the Audit Committee having reviewed the interim financial report - The company fully complied with the code provisions of the **Corporate Governance Code** during the reporting period[138](index=138&type=chunk)[142](index=142&type=chunk) - The Audit Committee, together with external auditor KPMG, reviewed the Group's unaudited consolidated results and this interim report[140](index=140&type=chunk)[144](index=144&type=chunk) Consolidated Financial Statements [Consolidated Statement of Comprehensive Income](index=32&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended September 30, 2020, the Group reported revenue of HKD 583 million (+48%), operating profit of HKD 500 million (+70.9%), profit before tax of HKD 401 million (+69.4%), and profit for the period (net profit) of HKD 346 million (+63.6%) Consolidated Statement of Comprehensive Income Summary (For the Six Months Ended September 30) | Item (HKD thousand) | 2020 | 2019 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Revenue** | 582,891 | 393,757 | +48.0% | | **Operating Profit** | 500,176 | 292,695 | +70.9% | | **Profit Before Tax** | 401,037 | 236,728 | +69.4% | | **Profit for the Period** | 346,053 | 211,505 | +63.6% | [Consolidated Statement of Financial Position](index=33&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of September 30, 2020, total assets significantly increased to HKD 28.513 billion, mainly due to a substantial rise in receivables from IPO financing; total liabilities also increased to HKD 26.740 billion due to higher bank loans, while total equity decreased to HKD 1.773 billion from HKD 1.902 billion primarily due to dividends paid Consolidated Statement of Financial Position Summary (HKD thousand) | Item | September 30, 2020 | March 31, 2020 | | :--- | :--- | :--- | | **Total Non-Current Assets** | 214,091 | 260,390 | | **Total Current Assets** | 28,299,166 | 6,198,745 | | **Total Current Liabilities** | 26,697,700 | 4,490,487 | | **Net Assets (Total Equity)** | 1,772,972 | 1,902,306 | [Condensed Consolidated Cash Flow Statement](index=36&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) For the six months ended September 30, 2020, the Group reported a net cash outflow of HKD 21.466 billion from operating activities, primarily due to increased client financing for IPOs, while financing activities generated a net cash inflow of HKD 21.302 billion from new bank loans, with cash and cash equivalents at period-end totaling HKD 407 million Cash Flow Statement Summary (For the Six Months Ended September 30, HKD thousand) | Item | 2020 | 2019 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | (21,466,443) | 510,202 | | **Net Cash from Investing Activities** | 82,666 | 80,531 | | **Net Cash from Financing Activities** | 21,301,756 | (584,409) | | **Net (Decrease)/Increase in Cash and Cash Equivalents** | (82,021) | 6,324 | | **Cash and Cash Equivalents at End of Period** | 407,312 | 400,863 | Notes to the Unaudited Interim Financial Report [Note 11 Segment Reporting](index=44&type=section&id=Note%2011%20Segment%20Reporting) The Group's operations are divided into three reportable segments: securities brokerage, commodities and futures brokerage, and spot gold trading, with securities brokerage being the largest contributor to revenue and EBIT, generating HKD 459 million in revenue and HKD 442 million in EBIT during the period Segment Performance Summary (For the Six Months Ended September 30, 2020, HKD thousand) | Segment | Reportable Segment Revenue | Reportable Segment Profit (EBIT) | | :--- | :--- | :--- | | **Securities Brokerage** | 458,526 | 441,928 | | **Commodities and Futures Brokerage** | 117,420 | 49,304 | | **Spot Gold Trading** | 6,682 | 4,263 | | **Total** | **582,628** | **495,495** | [Note 13 Accounts Receivable](index=49&type=section&id=Note%2013%20Accounts%20Receivable) As of September 30, 2020, total accounts receivable surged from HKD 5.645 billion to HKD 27.861 billion, primarily driven by HKD 18.712 billion in financing for IPO subscriptions, with margin client receivables also increasing from HKD 4.386 billion to HKD 7.438 billion Accounts Receivable Composition (HKD thousand) | Item | September 30, 2020 | March 31, 2020 | | :--- | :--- | :--- | | Receivables from Clearing Houses, Brokers and Dealers | 1,283,237 | 995,494 | | Receivables from Cash Clients | 427,473 | 263,480 | | Receivables from Margin Clients | 7,437,894 | 4,385,813 | | Receivables for IPO Subscriptions | 18,712,291 | — | | **Total** | **27,860,895** | **5,644,787** | [Note 18 Bank Loans](index=54&type=section&id=Note%2018%20Bank%20Loans) To support business expansion, especially IPO financing, the Group's total bank loans significantly increased from HKD 2.859 billion to HKD 23.765 billion, including HKD 16.8 billion specifically for IPOs, with most loans secured by client securities as re-pledged collateral Bank Loan Composition (HKD thousand) | Item | September 30, 2020 | March 31, 2020 | | :--- | :--- | :--- | | Secured Bank Loans | 4,830,130 | 2,423,789 | | Secured IPO Bank Loans | 16,800,000 | — | | Unsecured Bank Loans | 2,135,000 | 435,000 | | **Total** | **23,765,130** | **2,858,789** | Independent Auditor's Review Report [Auditor's Conclusion](index=69&type=section&id=Auditor%27s%20Conclusion) KPMG, the auditor, reviewed the interim financial report in accordance with Hong Kong Standard on Review Engagements and found no matters suggesting it was not prepared in all material respects according to HKAS 34 "Interim Financial Reporting" - The auditor concluded that nothing came to their attention to suggest the interim financial report was not prepared in all material respects in accordance with **HKAS 34 "Interim Financial Reporting"**[259](index=259&type=chunk)[260](index=260&type=chunk)

[Corporate Information](index=3&type=section&id=Corporate%20Information) [Directors and Committees](index=3&type=section&id=Directors%20and%20Committees) The report lists the company's executive directors, independent non-executive directors, and members of key committees (Audit, Remuneration, Nomination, Risk Management), with Mr Yip Mau Lam as Chairman and Mr Hui Yuk Pun as Chief Executive Officer - Executive Directors include **Mr Yip Mau Lam** (Chairman), **Mr Hui Yuk Pun** (Chief Executive Officer), and **Mr Chan Wing Shing**[5](index=5&type=chunk) - Independent Non-executive Directors include **Mr Yu Yan Kong**, **Mr Szeto Wai Sun**, and **Mr Ling Kwok Fai**[5](index=5&type=chunk) - The company has established Audit, Remuneration, Nomination, and Risk Management Committees, chaired by **Mr Yu Yan Kong** and **Mr Yip Mau Lam** respectively[5](index=5&type=chunk)[6](index=6&type=chunk) [Corporate Offices and Advisors](index=4&type=section&id=Corporate%20Offices%20and%20Advisors) The report provides information on the company's registered office in the Cayman Islands, head office and principal place of business in Hong Kong, and lists key share registrars, principal bankers, and auditor (KPMG) - The company's head office is located at Wing On House, 71 Des Voeux Road Central, Hong Kong[6](index=6&type=chunk) - The company's auditor is **KPMG**[9](index=9&type=chunk) [Major Accomplishments](index=6&type=section&id=Major%20Accomplishments) [2019 Major Accomplishments](index=6&type=section&id=2019%20Major%20Accomplishments) In 2019, the Group launched two award-winning trading apps, 'Bright Smart Securities (Baby)' and 'Bright Smart Futures (Doudou)', actively engaged in philanthropy, and sponsored the Hong Kong Squash Championships - Launched 'Bright Smart Securities (Baby)' and 'Bright Smart Futures (Doudou)' trading apps, exceeding **30,000 downloads** in the first month, and awarded 'Outstanding Stock and Futures Trading App Program Development' by Capital Magazine[11](index=11&type=chunk) - Group Chairman **Mr Yip Mau Lam** donated over **HKD 1 million** to The Community Chest of Hong Kong and other charitable activities[13](index=13&type=chunk) - Received the 'Caring Company' award from The Hong Kong Council of Social Service for **nine consecutive years**[15](index=15&type=chunk) - Awarded 'Hong Kong All-round Securities Brokerage Jun Ding Award' by mainland media Securities Times and Securities China[16](index=16&type=chunk) [2020 Major Accomplishments](index=13&type=section&id=2020%20Major%20Accomplishments) In 2020, the Group declared a special dividend for its tenth anniversary, Chairman **Mr Yip Mau Lam** personally donated **HKD 10 million** for COVID-19 relief, and the Group maintained service quality with its backup office while winning three 'Top 3 Most Active' broker awards from HKEX - Declared a one-off special dividend of **80.00 HK cents per share** to celebrate the tenth listing anniversary[25](index=25&type=chunk) - Group Chairman **Mr Yip Mau Lam**, through 'Yip Mau Lam Charitable Foundation', donated **HKD 10 million** to the Hospital Authority for anti-epidemic efforts[27](index=27&type=chunk) - The Kowloon backup office, established **five years ago**, played a crucial role during the pandemic, ensuring service continuity[29](index=29&type=chunk) - Awarded three first-place prizes by Hong Kong Exchanges and Clearing Limited (HKEX): 'Top 3 Most Active Stock Futures Brokers', 'Top 3 Most Active Stock Options Brokers', and 'Top 3 Most Active Weekly Index Options Brokers'[31](index=31&type=chunk) [Branch Network](index=17&type=section&id=Branch%20Network) [Branch Locations](index=17&type=section&id=Branch%20Locations) The Group operates an extensive branch network across Hong Kong, Kowloon, and New Territories, totaling **15 business locations** (including headquarters), with most branches open seven days a week, and has launched the 'Bright Smart Teaching Vehicle' to provide mobile services across Hong Kong - The company has **15 business outlets** across Hong Kong, Kowloon, and New Territories, including Hong Kong Headquarters and Kowloon Headquarters[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) - Most branches operate **seven days a week** to provide more convenient customer service[38](index=38&type=chunk) - Launched the innovative 'Bright Smart Teaching Vehicle', providing services across Hong Kong[37](index=37&type=chunk)[38](index=38&type=chunk) [Awards](index=19&type=section&id=Awards) [Awards and Recognitions](index=19&type=section&id=Awards%20and%20Recognitions) During the reporting period, the Group received numerous significant industry awards across social responsibility, derivatives trading, mobile application development, and corporate excellence, demonstrating its leading position and comprehensive strength in the industry - Awarded three major prizes by Hong Kong Exchanges and Clearing Limited (HKEX), including 'Top 3 Most Active Weekly Index Options Brokers', 'Top 3 Most Active Stock Options Brokers', and 'Top 3 Most Active Stock Futures Brokers'[43](index=43&type=chunk)[44](index=44&type=chunk) - Received 'Outstanding Securities and Futures Trading Mobile App Award' from Sky Post and 'Outstanding Stock and Futures Trading App Program Development Award' from Capital Magazine for its excellent trading app performance[43](index=43&type=chunk)[44](index=44&type=chunk) - Received 'Hong Kong Outstanding Enterprise Award' from Economic Digest and 'Listed Company Excellence Award' from Hong Kong Economic Journal for **consecutive years**[43](index=43&type=chunk)[44](index=44&type=chunk) - Received 'Caring Company' and 'Social Care Enterprise Excellence Award' honors in social responsibility[43](index=43&type=chunk)[44](index=44&type=chunk) [Financial Highlights](index=21&type=section&id=Financial%20Highlights) [Key Financial Performance](index=21&type=section&id=Key%20Financial%20Performance) For the year ended March 31, 2020, the Group's total revenue increased by **4.1%** to **HKD 864 million**, profit for the year grew by **6.8%** to **HKD 471 million**, basic earnings per share were **27.75 HK cents**, and the company declared a special dividend of **80 HK cents per share** and increased final dividend by **259%** to **28 HK cents per share** to celebrate its tenth listing anniversary FY2019/20 Key Financial Data (HKD thousands) | Metric | FY2020 (HKD thousands) | FY2019 (HKD thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Revenue** | 864,017 | 830,305 | +4.1% | | **Operating Profit** | 667,089 | 639,785 | +4.3% | | **Profit for the Year** | 470,978 | 440,928 | +6.8% | | **Basic EPS (HK cents)** | 27.75 | 25.98 | +6.8% | | **Final Dividend per Share (HK cents)** | 28.00 | 7.80 | +259.0% | | **Special Dividend per Share (HK cents)** | 80.00 | — | N/A | [Chairman's Statement](index=22&type=section&id=Chairman%27s%20Statement) [Performance and Market Environment](index=22&type=section&id=Performance%20and%20Market%20Environment) The Chairman's report highlights that despite severe challenges in FY2019/20 from the US-China trade war, Hong Kong social unrest, and the COVID-19 pandemic, which led to a **4.1%** decline in average daily turnover of the Hong Kong stock market, the Group outperformed the market with counter-cyclical growth in total revenue and net profit, attributed to its forward-looking strategy and stable operations - The market faced multiple challenges including the US-China trade war, Hong Kong social unrest, and the COVID-19 pandemic, leading to an approximate **4.1% year-on-year decrease** in average daily turnover of Hong Kong stocks[49](index=49&type=chunk)[52](index=52&type=chunk)[54](index=54&type=chunk) FY2019/20 Performance Overview (HKD millions) | Metric | FY2020 (HKD millions) | FY2019 (HKD millions) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | 864.0 | 830.3 | +4.1% | | **Brokerage Commission Income** | 516.2 | 496.3 | +4.0% | | **Margin Lending Interest** | 302.5 | 301.5 | +0.3% | | **Profit for the Year** | 471.0 | 440.9 | +6.8% | | **Basic EPS (HK cents)** | 27.75 | 25.98 | +6.8% | - Total client accounts increased by **19.3%** to **337,804**, but client assets decreased by **9.1%** to **HKD 41.9 billion** due to market conditions[57](index=57&type=chunk)[59](index=59&type=chunk) [Competitive Advantages and Operating Strategies](index=24&type=section&id=Competitive%20Advantages%20and%20Strategies) The Group's success is attributed to its proactive backup office, popular trading apps, and market-responsive strategies, alongside an integrated online-offline approach with **15 branches** and a 'Teaching Vehicle', diverse global financial products, robust cybersecurity, and continuous investor education - Core advantages include: - **Forward-looking layout**: Established a backup office exceeding **20,000 sq ft** as early as **2015**, ensuring business continuity during the pandemic, a unique initiative in Hong Kong - **Technological innovation**: Self-developed 'Baby' and 'Doudou' trading apps performed exceptionally, driving significant growth in online transactions and account openings - **Market strategy**: Launched attractive offers such as high margin ratios, low interest rates, free shares for new accounts, commission waivers, and platform fee waivers to attract clients[58](index=58&type=chunk)[60](index=60&type=chunk)[63](index=63&type=chunk)[66](index=66&type=chunk) - In Q1 2020, 'Baby' trading app's transaction volume surged by **91.7% quarter-on-quarter**, account openings increased by **64.4% quarter-on-quarter**, and active users grew by over **57.8%**[62](index=62&type=chunk)[63](index=63&type=chunk) - Offers comprehensive global financial products, allowing clients to trade Hong Kong stocks, US stocks, A-shares, global futures, and foreign exchange through a single account[65](index=65&type=chunk)[67](index=67&type=chunk) - Prioritizes cybersecurity, implementing measures like 'second password' and 'two-factor authentication (2FA)' to safeguard client assets[72](index=72&type=chunk)[74](index=74&type=chunk) - Actively fulfills social responsibility, supporting charitable activities for **consecutive years**, with the Chairman personally making significant donations during the pandemic[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) [Outlook](index=30&type=section&id=Outlook) Looking ahead, the Chairman identifies the pandemic as key to the global economy, noting the online trading market's strong performance and the Group's unaffected operations due to its leading online platform and backup office, while anticipating new momentum from US-listed Chinese companies' secondary listings in Hong Kong, and committing to an aggressive operating model to explore new markets and products - The pandemic is key to the future economic trend, yet the online trading market stands out, with the Group's online transactions accounting for **95%** and app-based account openings nearly **70%**[85](index=85&type=chunk)[86](index=86&type=chunk) - The secondary listings of US-listed Chinese companies like **JD.com**, **Baidu**, and **NetEase** in Hong Kong are expected to be a significant catalyst for the local stock market[88](index=88&type=chunk)[90](index=90&type=chunk) - The Group will continue its aggressive operating model, seeking new breakthroughs based on existing businesses, exploring new markets, and discovering new financial products[89](index=89&type=chunk)[91](index=91&type=chunk) [Management Discussion and Analysis](index=34&type=section&id=Management%20Discussion%20and%20Analysis) [Market Review](index=34&type=section&id=Market%20Review) During the reporting period, global stock markets experienced severe volatility due to multiple 'black swan' events, including the US-China trade war and COVID-19, leading to a **4.1%** decline in Hong Kong's average daily turnover and the first annual negative GDP growth since **2009**, while the pandemic spurred the 'stay-at-home economy' and counter-cyclical growth in online transactions - Affected by multiple negative factors, HKEX's average daily turnover for the year was approximately **HKD 92.24 billion**, a year-on-year decrease of approximately **4.1%**[99](index=99&type=chunk)[101](index=101&type=chunk) - Hong Kong's economy entered a technical recession, with **GDP falling by 1.2%** in 2019 and **8.9% year-on-year** in Q1 2020[100](index=100&type=chunk)[102](index=102&type=chunk) - The pandemic accelerated the rise of the internet economy and 'stay-at-home economy', with online businesses actively expanding online sales; China's online retail sales of physical goods grew by **5.9% year-on-year** in the first quarter[118](index=118&type=chunk)[120](index=120&type=chunk) [Operational Results](index=39&type=section&id=Operational%20Results) Despite declining market turnover, the Group achieved dual growth in revenue and profit through timely strategic adjustments and a robust online trading platform, with its self-developed trading apps attracting nearly **300,000 downloads** and effectively increasing mainland client proportion, while total client accounts grew by **19.3%** to **337,804**, though client assets under management decreased by **9.1%** to **HKD 41.9 billion** FY2019/20 Operating Results | Metric | FY2020 | FY2019 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Revenue (HKD millions)** | 864.0 | 830.3 | +4.1% | | **Profit for the Year (HKD millions)** | 471.0 | 440.9 | +6.8% | | **Total Client Accounts** | 337,804 | 283,181 | +19.3% | | **Client Assets (HKD billions)** | 41.9 | 46.1 | -9.1% | - Self-developed 'Baby' and 'Doudou' apps successfully attracted nearly **300,000 downloads**, marking a significant step in expanding into the mainland market[127](index=127&type=chunk)[128](index=128&type=chunk) [Revenue Analysis](index=42&type=section&id=Revenue%20Analysis) This fiscal year's total revenue was **HKD 864 million**, a **4.1% year-on-year increase**, primarily from securities brokerage, margin financing, and Hong Kong and global futures and options brokerage, with strong growth in global futures brokerage, IPO brokerage, and financing revenue, increasing by **17.6%** and over **50%** respectively, offsetting the slight impact on securities brokerage from declining market turnover Revenue Breakdown by Business Segment (HKD thousands) | Business Segment | FY2020 (HKD thousands) | FY2019 (HKD thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Securities Brokerage** | 258,292 | 262,004 | -1.4% | | **Hong Kong Futures and Options Brokerage** | 128,358 | 125,158 | +2.6% | | **Global Futures Brokerage** | 101,424 | 86,240 | +17.6% | | **Initial Public Offering (IPO) Brokerage** | 15,730 | 10,366 | +51.7% | | **IPO Financing Interest Income** | 33,474 | 21,411 | +56.3% | | **Margin Financing Interest Income** | 302,486 | 301,462 | +0.3% | | **Total Revenue** | **864,017** | **830,305** | **+4.1%** | [Securities Brokerage](index=42&type=section&id=Securities%20brokerage) Affected by a **3.0% year-on-year decrease** in total Hong Kong stock market turnover, the Group's securities brokerage commission income was **HKD 258 million**, a slight **1.4% year-on-year decrease**, accounting for **29.9%** of total revenue - Securities brokerage commission income was **HKD 258.3 million**, a **1.4% decrease** from **HKD 262.0 million** in the previous year[137](index=137&type=chunk)[138](index=138&type=chunk) [Hong Kong Futures and Options Brokerage](index=44&type=section&id=Hong%20Kong%20futures%20and%20options%20brokerage) Despite a **3.3% decrease** in HKEX derivatives contract turnover, the Group's Hong Kong futures and options brokerage commission income grew against the trend by **2.6%** to **HKD 128 million**, driven by increased market volatility and client hedging demand - Hong Kong futures and options brokerage commission income was **HKD 128.4 million**, a **2.6% increase** from **HKD 125.2 million** in the previous year[143](index=143&type=chunk)[145](index=145&type=chunk) [Global Futures Brokerage](index=45&type=section&id=Global%20futures%20brokerage) Driven by increased global market volatility and growing investor interest in diversified investments, global futures brokerage commission income increased by **17.6% year-on-year** to **HKD 101 million**, becoming a significant growth driver - Global futures brokerage commission income was **HKD 101.4 million**, a significant **17.6% increase** from **HKD 86.2 million** in the previous year[149](index=149&type=chunk) [Initial Public Offering (IPO) Brokerage and Financing](index=46&type=section&id=IPO%20brokerage%20and%20IPO%20financing) IPO-related business performed strongly, with brokerage commission income surging by **51.7%** to **HKD 15.7 million**, and financing interest income sharply rising by **56.3%** to **HKD 33.5 million** - IPO brokerage commission income increased by **51.7% year-on-year** to **HKD 15.7 million**; IPO financing interest income increased by **56.3% year-on-year** to **HKD 33.5 million**[151](index=151&type=chunk)[154](index=154&type=chunk) [Margin Financing](index=46&type=section&id=Margin%20financing) Despite a **15.3% decrease** in average daily margin lending to **HKD 5.85 billion**, margin financing interest income still saw a slight **0.3% increase** to **HKD 302.5 million**, accounting for **35.0%** of total revenue, driven by rising HIBOR - Margin financing interest income was **HKD 302.5 million**, a slight **0.3% increase** from **HKD 301.5 million** in the previous year[152](index=152&type=chunk)[155](index=155&type=chunk) [Operating Expenses and Net Profit Margin](index=47&type=section&id=Operating%20Expenses%20and%20Net%20Profit%20Margin) This year, the Group's operating expenses were **HKD 554 million**, a **2.9% year-on-year increase**; despite increased expenses, the Group's net profit margin improved from **53.1%** to **54.5%** due to faster revenue growth, with the increase primarily driven by a significant rise in amortization and depreciation, while staff costs and finance costs decreased - Net profit margin increased from **53.1%** in the previous year to **54.5%**, an improvement of **1.4 percentage points**[159](index=159&type=chunk)[161](index=161&type=chunk) Operating Expense Details (HKD thousands) | Item | FY2020 (HKD thousands) | FY2019 (HKD thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Staff Costs** | 127,472 | 136,333 | -6.5% | | **Amortization and Depreciation** | 89,635 | 18,839 | +375.8% | | **Finance Costs** | 138,178 | 140,600 | -1.7% | | **Advertising and Promotion** | 15,595 | 7,983 | +95.4% | | **Rent, Rates and Management Fees** | 5,733 | 71,116 | -91.9% | | **Total Operating Expenses** | **554,339** | **538,876** | **+2.9%** | [Future Plans and Strategies](index=48&type=section&id=Future%20Plans%20and%20Strategies) The Group will continue its aggressive expansion strategy, planning to identify new branch locations and continuously recruit talent, with future focus on four key areas: 1) developing diversified global financial products; 2) promoting digitalization and intelligence in trading services; 3) continuously enhancing online transaction security; and 4) actively expanding its mainland business footprint to enhance brand recognition - Continue to identify prime locations for new branches and regularly hold recruitment fairs to attract talent[165](index=165&type=chunk)[166](index=166&type=chunk) - Strategic priorities include: - **Product diversification**: Continuously developing more global financial products to meet market demand - **Service intelligence**: Combining online and offline strategies, leveraging FinTech to enhance customer experience and core competitiveness - **Security first**: Continuously investing resources to improve trading system speed, capacity, and cybersecurity levels - **Mainland expansion**: Actively expanding into the domestic market to build brand recognition[169](index=169&type=chunk)[174](index=174&type=chunk)[179](index=179&type=chunk)[182](index=182&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=54&type=section&id=Capital%20Structure%2C%20Liquidity%20and%20Financial%20Resources) The Group funds its operations through shareholders' equity, operating cash, and bank borrowings, maintaining ample liquidity; as of the reporting period end, bank balances and cash were **HKD 478 million**, bank borrowings were **HKD 2.859 billion**, the debt-to-equity ratio (total bank borrowings/total shareholders' equity) increased to **150.3%** from **117.9%** in the previous year, and the current ratio was **1.4 times** Capital and Liquidity Position (As of March 31) | Metric | FY2020 | FY2019 | | :--- | :--- | :--- | | **Bank Balances and Cash (HKD millions)** | 477.7 | 401.3 | | **Bank Borrowings (HKD millions)** | 2,858.8 | 3,445.5 | | **Unutilized Bank Facilities (HKD millions)** | 18,049.6 | 17,277.3 | | **Debt-to-Equity Ratio** | 150.3% | 117.9% | | **Current Ratio** | 1.4 times | 1.6 times | [Risk Management](index=56&type=section&id=Risk%20Management) The Group systematically manages various risks, controlling credit risk primarily through strict credit policies, collateral management, and continuous monitoring, managing liquidity risk by regularly monitoring liquidity needs and maintaining sufficient cash reserves and financing facilities, while interest rate and foreign exchange risks are less significant due to business model and hedging measures, and price risk from listed equity investments and client collateral is managed through regular monitoring - **Credit Risk**: Primarily arises from receivables from clients, brokers, and clearing houses, managed through individual client assessments, requiring collateral (such as securities or cash deposits), and daily monitoring of margin levels[205](index=205&type=chunk)[206](index=206&type=chunk) - **Liquidity Risk**: Managed by regularly monitoring liquidity requirements and ensuring sufficient cash reserves and committed financing facilities from major financial institutions[214](index=214&type=chunk)[217](index=217&type=chunk) - **Interest Rate Risk**: The Group's revenue and operating cash flows are not significantly affected by interest rate risk, as financial assets and liabilities are primarily floating-rate, and margin interest is linked to funding costs[215](index=215&type=chunk)[218](index=218&type=chunk) - **Foreign Exchange Risk**: Primarily arises from foreign currency financial instruments other than USD, managed by keeping net exposure at acceptable levels through spot foreign currency transactions when necessary[216](index=216&type=chunk)[219](index=219&type=chunk) [Biographies of Directors and Senior Management](index=59&type=section&id=Biographies%20of%20Directors%20and%20Senior%20Management) [Executive Directors](index=59&type=section&id=Executive%20Directors) This section introduces the backgrounds of three Executive Directors: founder **Mr Yip Mau Lam** serves as Chairman, responsible for corporate strategy; **Mr Hui Yuk Pun** is Chief Executive Officer, overseeing overall business development and operations with over **20 years** of industry experience; and **Mr Chan Wing Shing** is Trading Director, responsible for daily trading operations - **Mr Yip Mau Lam**: Aged **68**, founder, Chairman, and controlling shareholder of the Group, responsible for formulating corporate strategy and overseeing overall management[225](index=225&type=chunk)[226](index=226&type=chunk) - **Mr Hui Yuk Pun**: Aged **46**, Chief Executive Officer, responsible for the Group's overall business development, operations, and management, with over **20 years** of experience in the securities and futures industry[228](index=228&type=chunk)[229](index=229&type=chunk) - **Mr Chan Wing Shing**: Aged **55**, Trading Director, responsible for daily trading operations of securities and futures businesses, with over **20 years** of industry experience[231](index=231&type=chunk)[233](index=233&type=chunk) [Independent Non-executive Directors](index=61&type=section&id=Independent%20Non-executive%20Directors) This section introduces the backgrounds of three Independent Non-executive Directors: **Mr Yu Yan Kong**, a practicing accountant, chairs the Audit and Remuneration Committees; **Mr Szeto Wai Sun**, a practicing solicitor and international notary public; and **Mr Ling Kwok Fai**, with over **20 years** of experience in accounting, finance, and administration - **Mr Yu Yan Kong**: Aged **54**, a practicing accountant, serving as Chairman of the Audit Committee, Remuneration Committee, and Risk Management Committee[233](index=233&type=chunk)[234](index=234&type=chunk) - **Mr Szeto Wai Sun**: Aged **61**, a practicing solicitor and international notary public, also serving as an Independent Non-executive Director of Taiping Insurance (Holdings) Company Limited[236](index=236&type=chunk)[237](index=237&type=chunk) - **Mr Ling Kwok Fai**: Aged **64**, with extensive experience in accounting, finance, and administration, holding dual qualifications as a Chartered Secretary and Chartered Governance Professional[240](index=240&type=chunk)[241](index=241&type=chunk) [Senior Management](index=63&type=section&id=Senior%20Management) This section introduces Senior Management members other than directors: **Ms Yip Wing Yan** serves as Assistant to Chairman, assisting in overseeing daily internal operations; **Ms Li Wan Mei** is Financial Controller, responsible for the Group's overall financial and accounting management; and **Mr Chan Kwan Pak** is Company Secretary - **Ms Yip Wing Yan**: Aged **39**, Assistant to Chairman, responsible for assisting the Chairman in overseeing daily internal operations and formulating development strategies[245](index=245&type=chunk)[246](index=246&type=chunk) - **Ms Li Wan Mei**: Aged **36**, Financial Controller, with over **10 years** of accounting experience, responsible for the Group's overall financial and accounting management[249](index=249&type=chunk)[252](index=252&type=chunk)[253](index=253&type=chunk) [Environmental, Social and Governance Report](index=66&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) [Environmental Aspects](index=67&type=section&id=Environmental) The Group is committed to environmental protection and energy conservation, with primary resource consumption being office electricity, water, and paper; during the reporting period, total greenhouse gas emissions were **1,363.9 tonnes of CO2 equivalent**, with **90.4%** from purchased electricity, and the Group has implemented various energy-saving and emission reduction measures, such as using energy-efficient equipment, promoting paperless operations (e-statements, mobile account opening), and recycling waste paper and printing consumables Greenhouse Gas Emissions Overview | Scope | Source | Emissions (tonnes CO2e) | Percentage | | :--- | :--- | :--- | :--- | | **Scope 1 (Direct Emissions)** | Group Vehicle Fleet Gasoline Consumption | 73.8 | 5.4% | | **Scope 2 (Indirect Emissions)** | Purchased Electricity | 1,232.6 | 90.4% | | **Scope 3 (Other Indirect)** | Paper Consumption | 57.5 | 4.2% | | **Total** | | **1,363.9** | **100.0%** | - Actively fostering a paperless work environment by implementing electronic services such as e-statements, mobile app account opening, and online account opening, as well as digitalizing internal information dissemination[274](index=274&type=chunk)[279](index=279&type=chunk) [Social Aspects](index=70&type=section&id=Social) In terms of social responsibility, the Group prioritizes employee well-being, health and safety, and career development, offering comprehensive benefits and training; in operations, it emphasizes supply chain management, product responsibility, and customer privacy protection, establishing strict anti-corruption and anti-money laundering policies; the Group actively contributes to the community, with significant donations from both the Chairman personally and the company, and continuous support for various charitable activities - **Employment and Labor**: Provides employees with benefits including life insurance, medical benefits, paid annual leave, and study allowances, along with a safe and healthy work environment and professional development training[282](index=282&type=chunk)[286](index=286&type=chunk)[287](index=287&type=chunk) - **Operating Practices**: Established comprehensive internal controls, product responsibility, customer complaint handling, personal data privacy protection, and anti-corruption/anti-money laundering procedures[293](index=293&type=chunk)[294](index=294&type=chunk)[300](index=300&type=chunk)[303](index=303&type=chunk) - **Community Investment**: Chairman **Mr Yip Mau Lam** personally donated **HKD 10 million** for anti-epidemic efforts during the pandemic; the Group donated over **HKD 1 million** to The Community Chest of Hong Kong, **HKD 1 million** to Caritas Hong Kong, and has sponsored the 'Mindset Charity Run' for **11 consecutive years**[314](index=314&type=chunk)[317](index=317&type=chunk)[318](index=318&type=chunk) [Corporate Governance Report](index=78&type=section&id=Corporate%20Governance%20Report) [Board of Directors and Committees](index=78&type=section&id=Board%20of%20Directors%20and%20Committees) The company maintains high corporate governance standards, fully complying with the Corporate Governance Code, with a **six-member Board** (three executive, three independent non-executive) and separate Chairman and CEO roles, supported by Audit, Risk Management, Nomination, and Remuneration Committees, whose composition, duties, and annual work are detailed to ensure effective oversight and decision-making - The company fully complied with the Corporate Governance Code as set out in Appendix 14 of the Listing Rules during the year[323](index=323&type=chunk) - The Board of Directors comprises **three Executive Directors** and **three Independent Non-executive Directors**, achieving a balance between management and non-executive directors[325](index=325&type=chunk) - The roles of Chairman (**Mr Yip Mau Lam**) and Chief Executive Officer (**Mr Hui Yuk Pun**) are held by different individuals to ensure a balance of power and authority[361](index=361&type=chunk)[362](index=362&type=chunk) - Both the Audit Committee and Risk Management Committee are chaired by Independent Non-executive Director **Mr Yu Yan Kong**, responsible for overseeing financial reporting, internal controls, and risk management[368](index=368&type=chunk)[375](index=375&type=chunk) [Accountability, Audit, and Shareholder Rights](index=91&type=section&id=Accountability%2C%20Audit%2C%20and%20Shareholder%20Rights) The Board oversees financial statement preparation for truth and fairness, with an external company secretary appointed; the report details audit and non-audit fees from KPMG; the company has robust risk management and internal controls, an inside information handling manual, and a dividend policy, clearly outlining shareholder rights and procedures for EGMs, director nominations, and Board inquiries - The Board is responsible for ensuring the truth and fairness of financial statements and their preparation on a going concern basis[404](index=404&type=chunk) - The company has established risk management and internal control systems, including an internal audit function, which are annually reviewed by the Board and deemed effective and adequate[411](index=411&type=chunk)[415](index=415&type=chunk)[421](index=421&type=chunk) - Shareholder rights are clearly defined, including the right of shareholders holding not less than **10%** of the paid-up share capital to request an extraordinary general meeting, and specific procedures for nominating director candidates[432](index=432&type=chunk)[433](index=433&type=chunk) [Directors' Report](index=96&type=section&id=Directors%27%20Report) [Business and Financial Review](index=96&type=section&id=Business%20and%20Financial%20Review) The Directors' Report outlines the Group's principal business as providing financial services including securities, futures brokerage, and margin financing; during the reporting period, the Group declared a special dividend of **80 HK cents per share** and proposed a final dividend of **28 HK cents per share**, with total charitable donations amounting to **HKD 2.28 million** for the year, and no purchases, sales, or redemptions of company shares - The Group's principal business is providing financial services, including securities brokerage, margin financing, commodities and futures brokerage, precious metals trading, and leveraged foreign exchange trading[445](index=445&type=chunk) - Declared a one-off special dividend of **80.00 HK cents per share** and proposed a final dividend of **28.00 HK cents per share**[459](index=459&type=chunk)[460](index=460&type=chunk) - Total charitable donations for the year amounted to **HKD 2.28 million**[478](index=478&type=chunk)[479](index=479&type=chunk) [Connected Transactions](index=106&type=section&id=Connected%20Transactions) The report details several continuing connected transactions between the Group and connected persons (primarily Chairman **Mr Yip Mau Lam** and his associates), mainly involving office property lease agreements, provision of financial services such as margin and IPO financing to connected persons, and brokerage services, all conducted in the ordinary course of business on normal commercial terms, confirmed by independent non-executive directors, and supported by an unqualified opinion letter from the auditor - The Group entered into multiple office property lease agreements with companies connected to Chairman **Mr Yip Mau Lam**, with total payments amounting to approximately **HKD 51.9 million** for the year[546](index=546&type=chunk)[547](index=547&type=chunk)[551](index=551&type=chunk) - The Group provides margin and IPO financing services to directors and their associates, with annual caps of **HKD 4 billion** for IPO financing and **HKD 1 billion** for margin financing provided to Mr Yip's group[556](index=556&type=chunk) - All continuing connected transactions have been reviewed by Independent Non-executive Directors, who confirmed they were conducted on normal commercial terms, fair and reasonable, and in the overall interest of shareholders[567](index=567&type=chunk)[569](index=569&type=chunk) [Directors' and Major Shareholders' Interests](index=111&type=section&id=Directors%27%20and%20Major%20Shareholders%27%20Interests) The report discloses the interests of directors and major shareholders in the company's shares as of March 31, 2020; Chairman **Mr Yip Mau Lam** is the controlling shareholder, holding approximately **68.67%** of the company's shares through his wholly-owned companies and personal beneficial ownership; no other major shareholder interests or short positions are disclosed beyond the information provided; the company maintained sufficient public float Shareholding of Directors and Major Shareholders | Shareholder Name | Nature of Interest | Number of Shares Held | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | **Mr Yip Mau Lam** | Interest in Controlled Corporation | 900,000,000 | 53.02% | | | Beneficial Owner | 265,746,280 | 15.65% | | **Total** | | **1,165,746,280** | **68.67%** | | **New Charming Holdings Limited** | Beneficial Owner | 900,000,000 | 53.02% | - The company confirmed that as of the reporting date, it maintained a public float of over **25%**, complying with Listing Rules requirements[590](index=590&type=chunk) [Financial Statements](index=122&type=section&id=Financial%20Statements) [Consolidated Statement of Comprehensive Income](index=123&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the year ended March 31, 2020, the Group achieved total revenue of **HKD 864 million**, a **4.1% year-on-year increase**; after deducting various costs and expenses, profit before tax was **HKD 529 million**, and profit for the year was **HKD 471 million**, a **6.8% year-on-year increase** Consolidated Statement of Comprehensive Income Summary (HKD thousands) | Item | FY2020 (HKD thousands) | FY2019 (HKD thousands) | | :--- | :--- | :--- | | **Revenue** | 864,017 | 830,305 | | **Other Income** | 239,503 | 212,440 | | **Operating Profit** | 667,089 | 639,785 | | **Profit Before Tax** | 528,911 | 499,185 | | **Profit for the Year** | 470,978 | 440,928 | | **Total Comprehensive Income** | 471,211 | 441,178 | [Consolidated Statement of Financial Position](index=124&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2020, the Group's total assets were **HKD 6.459 billion**, total liabilities were **HKD 4.557 billion**, and net assets were **HKD 1.902 billion**; key assets included accounts receivable (**HKD 5.645 billion**), while major liabilities were bank loans (**HKD 2.859 billion**) and accounts payable (**HKD 1.301 billion**), with total equity decreasing from **HKD 2.923 billion** to **HKD 1.902 billion** due to the large special dividend payout Consolidated Statement of Financial Position Summary (HKD thousands) | Item | March 31, 2020 (HKD thousands) | March 31, 2019 (HKD thousands) | | :--- | :--- | :--- | | **Total Assets** | 6,459,135 | 7,851,341 | | Of which: Accounts Receivable | 5,644,787 | 7,276,782 | | **Total Liabilities** | 4,556,829 | 4,928,051 | | Of which: Bank Loans | 2,858,789 | 3,445,515 | | **Net Assets/Total Equity** | 1,902,306 | 2,923,290 | [Consolidated Cash Flow Statement](index=127&type=section&id=Consolidated%20Cash%20Flow%20Statement) This year, the Group generated **HKD 2.253 billion** in net cash from operating activities and **HKD 121 million** in net cash from investing activities; financing activities resulted in a net cash outflow of **HKD 2.281 billion** due to loan repayments and dividend payouts (including special dividends); ultimately, cash and cash equivalents increased by **HKD 92.74 million**, with an ending balance of **HKD 478 million** Consolidated Cash Flow Statement Summary (HKD thousands) | Item | FY2020 (HKD thousands) | FY2019 (HKD thousands) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | 2,252,796 | 4,538,171 | | **Net Cash from Investing Activities** | 120,739 | 149,944 | | **Net Cash Used in Financing Activities** | (2,280,792) | (4,800,272) | | **Net Increase in Cash and Cash Equivalents** | 92,743 | (112,157) | | **Cash and Cash Equivalents at End of Period** | 477,657 | 401,254 |

耀才 證 券 BRIGHT SMART SECURITIES 耀才證券金融集團有限公司 Bright Smart Securities & Commodities Group Limited (於開曼群島註冊成立之有限公司) (Incorporated in the Cayman Islands with limited liabflity) 股份代號 Stock Code: 1428 亮 麗 業 績 保 持 全 Ｎ 客 戶 支 持 YOUR TRUST OUR PRIDE 2019/20 中 期 報 告 INTERIM REPORT Contents 目錄 Corporate Information 公司資料 2 Management Discussion and Analysis 管理層討論與分析 5 Other Information 其他資料 25 Consolidated Statement of Comprehensive Income 綜合全面收益表 30 Consolidated Statement of Financial Position 綜合財務狀況表 31 Consolidated S ...

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