香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 會 就 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 之 任 何 損 失 承 擔 任 何 責 任。 董 事 會（「董事會」）呈 列 本 公 司 及 其 附 屬 公 司（統 稱「本集團」）截 至 二 零 二 三 年 三 月 三 十 一 日 止 年 度 之 經 審 核 綜 合 業 績 連 同 二 零 二 二 年 同 期 之 比 較 數 字 如 下： – 1 – 年內虧損 (1,162,989) (73,129) 年內全面開支總額 (1,166,380) (78,307) | --- | --- | --- | |---------------------------------|-------------|----------| | | | | | 應 佔 年 內 全 面 開 支 總 額： | | | | 本公司擁有人 | (1,161,781) | (78,307) | | 非控股權益 ...

Acquisitions - The company completed two acquisitions in June 2022, acquiring 70% of FGA Holdings Limited and 60% of First Achiever Ventures Limited, which have already started contributing significant revenue and profit [12]. - The acquisition of First Achiever Ventures Limited was completed on June 6, 2022, for a total consideration of 3,000,000 USD, focusing on developing a smart digital sales platform [158]. - The company acquired 70% of FGA Holdings Limited for a total consideration of 35,000,000 USD (approximately 271,600,000 HKD), completed on June 6, 2022 [167]. - The identifiable net assets acquired from FGA Holdings amounted to HKD 296,961,000, with goodwill of HKD 228,298,000 recognized in the acquisition [177]. - First Achiever Group contributed revenue of 2,101,000 HKD and a net loss of 1,603,000 HKD since the acquisition date [164]. - The company’s total identifiable net assets acquired from First Achiever Group were valued at 15,948 thousand HKD [164]. Financial Performance - The company reported revenue of HKD 97,137,000 for the six months ended September 30, 2022, compared to HKD 63,760,000 for the same period in 2021, representing a year-over-year increase of 52.3% [25]. - Total revenue for the six months ended September 30, 2022, was HKD 97,137 million, an increase from HKD 63,760 million in the same period of 2021, representing a growth of approximately 52.2% [86]. - The company recorded a pre-tax profit of HKD 4,463,000, a significant recovery from a pre-tax loss of HKD 12,028,000 in the prior year [25]. - The net profit for the period was HKD 2,586,000, compared to a net loss of HKD 13,358,000 in the same period last year [27]. - The company reported a basic and diluted earnings per share of HKD 0.04, recovering from a loss of HKD 0.22 per share in the prior year [27]. - The company recorded a profit of approximately HKD 2,600,000 for the six months ended September 30, 2022, compared to a loss of approximately HKD 13,400,000 in the same period last year [200]. Revenue Breakdown - Securities brokerage commission income decreased by 53.1%, while total revenue slightly increased by approximately 1.3% to about HKD 15,500,000 for the six months ended September 30, 2022, compared to HKD 15,300,000 in the previous year [13]. - The insurance brokerage segment processed over 650 new policies for 985 clients, accumulating an annualized first-year premium of over HKD 98,000,000, up from HKD 78,900,000 in the previous year [16]. - The insurance brokerage service revenue increased to HKD 29,665 million from HKD 25,442 million year-on-year, reflecting a growth of approximately 8.7% [86]. - The fur business generated approximately HKD 8,700,000 in revenue, representing a 26% increase or HKD 1,800,000 compared to the same period last year [18]. - The lending segment contributed approximately HKD 15,700,000 in revenue and HKD 15,800,000 in profit, compared to HKD 12,000,000 and HKD 12,100,000 in the previous year, reflecting a significant increase [194]. - The asset management service revenue was HKD 2,504 million, down from HKD 4,073 million in the previous year, indicating a decline of approximately 38.7% [86]. Cash Flow and Assets - The net cash generated from operating activities for the six months ended September 30, 2022, was HKD 71,415,000, compared to a net cash used of HKD 233,549,000 in the previous year [36]. - The company reported a net cash outflow from investing activities of HKD 44,486,000 for the six months ended September 30, 2022, compared to HKD 106,345,000 in the previous year [36]. - The financing activities resulted in a net cash outflow of HKD 11,891,000 for the six months ended September 30, 2022, contrasting with a net inflow of HKD 467,353,000 in the previous year [36]. - The company’s total assets as of September 30, 2022, were HKD 1,110,967,000, an increase from HKD 849,182,000 as of March 31, 2022 [29]. - The cash and cash equivalents as of September 30, 2022, were HKD 139,549,000, down from HKD 170,706,000 a year earlier [36]. - The company’s total liabilities included a significant amount of HKD 337,613,000 as of September 30, 2022 [34]. Expenses and Liabilities - Administrative expenses increased by approximately 42.9% to about HKD 69,300,000, up from HKD 48,500,000 in the previous year, primarily due to administrative costs from two newly acquired businesses [196]. - The total tax expense for the six months ended September 30, 2022, was HKD 1,877,000, an increase from HKD 1,330,000 in the same period of 2021 [96]. - The company’s total liabilities included trade and other payables of 4,170 thousand HKD related to the acquisition of First Achiever Group [164]. - The total segment liabilities amounted to HKD 693,005 million, with the securities segment accounting for HKD 223,354 million [81]. Market Outlook and Strategy - The company anticipates continued growth in its debt issuance business due to strong demand for capital [21]. - The newly acquired membership business is expected to become a new revenue driver for the group, aiding diversification in Hong Kong and China [21]. - The company plans to continue its market expansion and product development strategies in the upcoming quarters [34]. - The group aims to leverage the reputation of the Forbes brand through the acquisition of FGA Group to enhance its position as a reliable provider of quality financial services [171].

Financial Performance - The group's total revenue for the fiscal year ended March 31, 2022, was approximately HKD 127,000,000, a decrease from HKD 148,600,000 in the previous fiscal year, primarily due to a decline in insurance brokerage service income[38] - The group recorded an annual loss of approximately HKD 73,100,000 for the fiscal year 2022, compared to a loss of HKD 8,400,000 in the fiscal year 2021[81] - The group reported a net loss of approximately HKD 69,900,000, primarily due to non-cash impairment losses of HKD 59,400,000 in the fur business and investment losses of HKD 16,800,000 from the fund portfolio[57] - The group confirmed a loss of approximately HKD 1,900,000 related to expected credit losses on loans receivable in the lending business for the fiscal year[55] - The company raised approximately HKD 450 million in funding to support its lending business, generating significant interest income[21] Business Segments - The securities business contributed approximately HKD 33.9 million in revenue and HKD 10.1 million in profit, down from HKD 36 million and HKD 18.1 million respectively in the previous year[21] - The wealth management division attracted over 670 new clients and issued more than 1,715 insurance policies, managing over 7,855 policies with an annualized first-year premium exceeding HKD 271 million[24] - The asset management services recorded revenue of HKD 8.1 million, down from HKD 13 million in the previous year[27] - The fur business generated approximately HKD 7.2 million in revenue, a decline from HKD 23.4 million in the previous year, with a loss of approximately HKD 51.5 million due to non-cash impairment[26] - Revenue from the insurance brokerage segment was approximately HKD 47,700,000, a decrease from HKD 65,900,000 in the previous fiscal year, resulting in a segment loss of approximately HKD 5,400,000[41] Acquisitions and Investments - The company completed two acquisitions, FGA Holdings Limited and First Achiever Venture Limited, expected to contribute significantly to future revenue[21] - The company agreed to acquire 70% of FGA Holdings Limited for a total consideration of USD 35,000,000 (approximately HKD 271,600,000)[107] - The company acquired a 60% stake in First Achiever Venture Limited for a total consideration of $3,000,000, which will consolidate the financial performance of its subsidiaries[110] Market Environment - The company faced a challenging market environment due to the COVID-19 pandemic, impacting overall performance and investment returns[21] - The overall economic recovery in Hong Kong remained weak, affecting the company's operational performance[21] - The company plans to continue focusing on market expansion and new business strategies to enhance revenue streams[21] Financial Management - Administrative expenses increased by approximately 3.3% to HKD 99,600,000 from HKD 96,400,000 in the previous fiscal year, mainly due to increased legal and professional fees related to acquisition projects[56] - Financing costs for the fiscal year 2022 amounted to approximately HKD 13,500,000, an increase from HKD 9,200,000 in the fiscal year 2021[80] - The company has established credit policies to monitor and manage credit risk effectively, significantly reducing credit risk exposure[118] - The company regularly monitors liquidity needs to ensure sufficient cash and financing resources are available for short-term and long-term requirements[119] Corporate Governance - The company has maintained high standards of corporate governance to enhance shareholder value and ensure transparency, accountability, and independence[131] - The board consists of three executive directors and three independent non-executive directors, ensuring a balance of power and responsibility towards shareholders[134] - The company has adopted a securities trading code that is at least as stringent as the listing rules, with all directors confirming compliance for the year ending March 31, 2022[133] - The company has established mechanisms to ensure the company secretary is well-informed about the group's developments without significant delays[131] Risk Management - The company has established an effective risk management and internal control system, with no significant risks identified during the fiscal year[184] - The company assesses and manages foreign exchange risks, particularly from sales and procurement transactions, with a focus on mitigating currency fluctuations[120] - The company has a dedicated credit risk management department that monitors loan performance and reports to management[194] Employee and Shareholder Engagement - Employee costs for the fiscal year 2022 were approximately HK$43,300,000, a decrease from HK$44,300,000 in the previous fiscal year[117] - The total number of employees as of March 31, 2022, was 69, down from 76 the previous year[117] - The company maintains open communication with shareholders, encouraging participation in annual general meetings[195] - The company ensures independent resolutions are presented at shareholder meetings, adhering to regulatory requirements for timely updates on business matters[196]

Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 63,760,000, a decrease of 22.2% compared to HKD 81,970,000 for the same period in 2020[19]. - The company reported a loss before tax of HKD 12,028,000, which is a 20.5% increase from a loss of HKD 9,987,000 in the same period last year[19]. - The total comprehensive loss for the period was HKD 13,211,000, compared to a total comprehensive loss of HKD 5,615,000 in the previous year[19]. - The company reported a net loss of HKD 12,233,000 in other income and losses for the six months ended September 30, 2021, compared to a gain of HKD 2,531,000 in 2020[65]. - The company recorded a loss of approximately HKD 13,400,000 for the period, compared to a loss of HKD 12,100,000 in the previous year[130]. Revenue Breakdown - Securities business revenue decreased by approximately 26.1% to about HKD 15.3 million, down from HKD 20.7 million in the previous year[10]. - Insurance brokerage service revenue was HKD 25,442,000, down from HKD 36,012,000, representing a decline of 29.5%[60]. - The insurance brokerage segment processed over 850 new policies for 800 clients, accumulating an annualized first-year premium of over HKD 78.9 million, compared to over HKD 40.9 million in the previous year[13]. - Lending business revenue surged from HKD 2.5 million to approximately HKD 12 million, primarily due to increased available capital following fundraising[15]. - Fur business revenue recorded approximately HKD 6.9 million, a decrease of about 63.3% or HKD 11.9 million compared to the previous year[14]. Assets and Liabilities - The total assets as of September 30, 2021, amounted to HKD 1,370,588,000, with allocated segment assets of HKD 1,050,032,000[57]. - Total liabilities as of September 30, 2021, were HKD 510,223,000, with allocated segment liabilities of HKD 340,768,000[57]. - The company’s cash and cash equivalents rose to HKD 170,706,000, compared to HKD 45,626,000 at the end of the previous fiscal year[20]. - The total current assets increased to HKD 344,350,000 as of September 30, 2021, from HKD 258,282,000 as of March 31, 2021, representing a growth of 33.3%[79]. - Trade receivables from margin clients amounted to HKD 337,388,000 as of September 30, 2021, compared to HKD 229,303,000 for the same period in 2020, reflecting a 47.2% increase[79]. Cash Flow and Financing - For the six months ended September 30, 2021, the net cash used in operating activities was HKD (233,549) thousand, compared to HKD 14,423 thousand in the previous period[25]. - The company raised HKD 447,750 thousand through share placement during the financing activities[25]. - The company incurred a cash outflow of HKD (23,900) thousand from financing activities, compared to HKD (2,434) thousand in the previous period[25]. - The company reported a cash inflow of HKD 22,182 thousand from the issuance of corporate bonds, compared to HKD 39,289 thousand in the prior period[25]. - The company recorded a cash inflow of HKD 35,000 thousand from new bank borrowings, with no such inflow in the previous period[25]. Share Capital and Ownership - The company issued new shares through a placement, raising HKD 447,750,000, which contributed to the increase in equity[23]. - As of September 30, 2021, the company had 6,724,629,735 shares issued[140]. - Mr. Chen Jia Jun holds 3,363,819,533 shares, representing 50.02% of the total shares[156]. - The company’s issued share capital increased to 6,724,629,735 shares as of September 30, 2021, from 4,849,629,735 shares at the beginning of the period[112]. - The placement represents about 38.66% of the company's issued share capital at the time of the agreement and approximately 27.88% of the enlarged issued share capital[136]. Corporate Governance and Management - The company is committed to good corporate governance practices and has complied with the corporate governance code[170]. - The Audit Committee consists of three members, all of whom are independent non-executive directors, responsible for reviewing the group's financial reports and internal controls[174]. - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the six months ended September 30, 2021[175]. - The company has not granted any share options under the share option plan during the six months ending September 30, 2021[163]. - The company has adopted a ten-year share award plan to incentivize selected employees[165]. Market Outlook and Future Plans - The company anticipates that the securities business will not see a significant rebound but also will not decline sharply in the second half of the fiscal year[16]. - The fur market outlook is optimistic due to early cold weather and a shortage of Danish mink caused by a government ban on mink farming for the entire year of 2022[16]. - The company plans to focus more on underwriting commission income in the second half of the fiscal year[16]. - The company announced a conditional agreement to acquire 70% of FGA Holdings Limited for USD 35,000,000 (approximately HKD 271,600,000), with the transaction still pending completion[132]. - Approximately HKD 125,000,000 (27.95%) of the net proceeds will be used to establish and develop multiple investment funds, while HKD 322,200,000 (72.05%) will be allocated for the development of existing securities brokerage and financial services, as well as for general corporate purposes[136].

Financial Performance - The securities business contributed approximately HKD 36 million in revenue and HKD 18.1 million in profit for the fiscal year ending March 31, 2021, compared to HKD 37.3 million and HKD 2.8 million respectively in the previous year[11]. - Total revenue for the fiscal year ended March 31, 2021, was approximately HKD 148,600,000, an increase from HKD 125,000,000 in the previous fiscal year[24]. - The securities business recorded segment revenue of approximately HKD 18,100,000, up from HKD 2,800,000 in the previous fiscal year[26]. - The fur business generated revenue of approximately HKD 23,400,000, a significant increase from HKD 2,000,000 in the previous fiscal year, with a profit of approximately HKD 3,900,000 compared to a loss of HKD 41,800,000 previously[29]. - The insurance brokerage segment generated revenue of approximately HKD 65,900,000, down from HKD 82,000,000 in the previous fiscal year, resulting in a loss of approximately HKD 6,100,000[27]. - Gross profit for the fiscal year was approximately HKD 95,900,000, with a gross margin of 64.5%, compared to HKD 40,900,000 and 32.7% in the previous year[33]. - The group recorded an annual loss of approximately HKD 8,400,000 for the fiscal year 2021, compared to a loss of approximately HKD 70,900,000 in the fiscal year 2020, indicating a significant improvement[41]. Business Growth and Development - The insurance brokerage division expanded its sales team by over 60%, acquiring 1,095 new clients and issuing over 1,587 policies, managing over 6,300 policies with an annualized first-year premium exceeding HKD 158 million[12]. - The asset management business generated HKD 13 million in revenue for the fiscal year, a substantial increase from HKD 50,000 in the previous year, indicating strong growth potential in this market[16]. - The company raised approximately HKD 448,000,000 to develop fund management and financial services businesses[18]. - The company acquired 70% of FGA Holdings Limited to enter the online business, leveraging the Forbes brand to attract investors in mainland China[20]. - The company aims to leverage the recovery in the Hong Kong stock market to enhance its brokerage income through increased trading activities[10]. Cost Management and Financial Health - The company implemented effective cost control measures, contributing to better-than-expected performance despite ongoing challenges[10]. - Interest income from lending business increased to approximately HKD 10,300,000, up by HKD 6,700,000 or 186.1% compared to HKD 3,600,000 in the previous year[17]. - Administrative expenses increased by approximately 4.7% from HKD 92,100,000 in the fiscal year 2020 to approximately HKD 96,400,000 in the fiscal year 2021, primarily due to an increase in employee numbers and professional fees[39]. - Financing costs rose to approximately HKD 9,200,000 in the fiscal year 2021 from approximately HKD 8,400,000 in the fiscal year 2020, driven by an increase in bond interest[40]. - The company will not distribute any dividends in the near future to reserve funds for business development due to its current financial situation[123]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report covers the group's business activities in Denmark and Hong Kong, with key performance indicators based on operations directly controlled by the group[128]. - The board is responsible for monitoring and defining the group's ESG strategy, ensuring the effectiveness of its ESG policies[127]. - The company has established an ESG working group to systematically manage ESG issues and report to the board[127]. - The company is committed to integrating sustainability into its operations and aims to reduce environmental impacts through innovative energy consumption measures and waste reduction initiatives[141]. - The company has not reported any significant violations of environmental laws and regulations during the fiscal year 2021, including those in Hong Kong and Denmark[142]. - The company aims to enhance its environmental performance by continuously seeking opportunities to implement eco-friendly measures and reduce resource consumption[142]. Employee Management and Diversity - The company has a total of 76 full-time employees as of March 31, 2021[183]. - Employee turnover rates were reported at 59.52% for males and 63.89% for females, with a notable 111.11% turnover rate for employees under 30 years old[193]. - The group emphasizes the importance of diversity and equal opportunity in hiring practices, ensuring transparency and fairness for all candidates regardless of gender, race, age, or other demographic characteristics[200]. - The group is committed to providing equal opportunities in all aspects of employment and prohibits discrimination based on race, religion, color, gender, disability, age, birthplace, marital status, and sexual orientation[200]. - Employees who experience harassment or discrimination are encouraged to seek assistance from the Human Resources department, which will handle complaints confidentially and promptly[200].

京基金融回 除 2020 中期報告 and and the last . 京基金融國際(控股)有限公司 (於開曼群島註冊成立之有限公司) 股份代號：1468 · . . . . . 0.0 0 · . . · 1 目錄 公司資料 2 主席報告 3 未經審核簡明綜合損益及其他全面收益表 5 未經審核簡明綜合財務狀況表 6 未經審核簡明綜合權益變動表 7 未經審核簡明綜合現金流量表 8 簡明中期財務資料附註 9 管理層討論及分析 31 其他資料 36 京基金融國際（控股）有限公司 二零二零年中期報告 | --- | --- | |--------------------------------|----------------------------------------------| | | | | 公司資料 | | | 董事會 | 主要往來銀行 | | 執行董事 | 香港上海滙豐銀行有限公司 | | 陳家俊先生 黃振宙先生 （主席） | 大眾銀行（香港）有限公司 | | 郭燕寧女士 （行政總裁） | 股份過戶登記總處 | | | Codan Trust Company (Cayman) Limited | ...

京基金融回 除 · . 2020 . 年報 · · · · · · 京基金融國際(控股)有限公司 (於開曼群島註冊成立之有限公司) . . 股份代號：1468 . . . . . . . . . . . . · . and and the same · · . . . . . . . 0 . . . . . . . . . and and the -11-1 . · and and . . · 0.0 . . 0.00 . 0.000 . 1 目錄 | --- | --- | |----------------------------|-------| | | | | 公司資料 | 2 | | 主席報告 | 3 | | 管理層討論及分析 | 6 | | 董事及高級管理層之詳細履歷 | 12 | | 企業管治報告 | 14 | | 環境、社會及管治報告 | 23 | | 董事會報告 | 49 | | 獨立核數師報告 | 65 | | 綜合損益及其他全面收益表 | 71 | | 綜合財務狀況表 | 72 | | 綜合權益變動表 | 73 | | 綜合現金流量表 | 74 | | 綜合財務報表附註 | 76 | | ...

二零一九年中期報告 （於開曼群島註冊成立之有限公司） （前稱英裘（控股）有限公司） 股份代號 : 1468 二零一九年中期報告 公司資料 2 主席報告 3 未經審核簡明綜合損益及其他全面收益表 5 未經審核簡明綜合財務狀況表 6 未經審核簡明綜合權益變動表 7 未經審核簡明綜合現金流量表 8 簡明中期財務資料附註 9 管理層討論及分析 39 其他資料 44 1 京基金融國際（控股）有限公司 目錄 公司資料 | --- | --- | |-----------------------------------------------------|----------------------------------------------------------------| | | | | 董 事 會 | 主 要 往 來 銀 行 | | 執 行 董 事 | 香 港 上 海 滙 豐 銀 行 有 限 公 司 | | 黃 振 宙 先 生 （主席） 郭 燕 寧 女 士 （行政總裁） | 大 眾 銀 行 （ 香 港 ） 有 限 公 司 | | | 股 份 過 戶 登 記 總 處 | | 獨 立 非 執 行 董 事 麥 潤 ...

[Company Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) UKF (Holdings) Limited, listed on the Hong Kong Stock Exchange, engages in diversified financial and fur businesses through its subsidiaries [Company Basic Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) UKF (Holdings) Limited, listed on the Hong Kong Stock Exchange, engages in diversified financial and fur businesses through its subsidiaries - The company was listed on the Main Board of the Hong Kong Stock Exchange on March 20, 2015, with stock code **1468**[7](index=7&type=chunk) - Principal businesses include securities brokerage, wealth management, insurance brokerage, money lending, mink farming, and fur trading[7](index=7&type=chunk) - The Board of Directors comprises Mr. Wong Chun Chow (Chairman) and Ms. Kwok Yin Ning (Chief Executive Officer) as executive directors, and Ms. Mak Yun Chu, Mr. Hung Wai Sze, and Mr. Tang Tat Chi as independent non-executive directors[7](index=7&type=chunk) [Chairman's Statement](index=4&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A) [Business Review](index=4&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) In FY2019, global economic volatility and financial market uncertainty negatively impacted the Group's business, leading to significant declines in securities and fur business revenue, while insurance brokerage performed strongly and asset management services actively developed - Global economic volatility and financial market uncertainty negatively impacted the Group's securities business, deterring investors from committing funds to the stock market[9](index=9&type=chunk) FY2019 Securities Business Performance | Metric | FY2019 (HKD) | FY2018 (HKD) | | :--- | :--- | :--- | | Revenue | 28,500,000 | 81,100,000 | | Profit | 3,200,000 | 37,200,000 | - Insurance brokerage business performed strongly, with King & Yue Wealth Management managing over **1,700 policies for more than 1,300 clients**, generating over **68.00 million HKD in annualized first-year premiums** and over **40.00 million HKD in annualized first-year commissions**[12](index=12&type=chunk) - Fur business revenue further decreased due to sustained market downturn, weak demand, and changing consumer preferences, leading management to reduce production and enhance cost control[13](index=13&type=chunk)[14](index=14&type=chunk)[16](index=16&type=chunk) - The Group actively developed asset management and family office services, offering integrated financial solutions to meet the needs of high-net-worth individuals and corporations[17](index=17&type=chunk) [Outlook](index=5&type=section&id=%E5%89%8D%E6%99%AF%E5%B1%95%E6%9C%9B) Despite short-term fur market challenges, the Group is optimistic about market stabilization and growth in securities, wealth management, and other financial services, pursuing a dual-track development strategy to enhance profitability - Kopenhagen Fur anticipates a **35%** reduction in Danish mink production and a **31%** decrease in feed sales, reflecting a significant decline in breeding mink numbers and an expected reduction in global supply[18](index=18&type=chunk) - Management expects the fur market to stabilize and mink prices to return to more normal levels[18](index=18&type=chunk) - Despite ongoing economic recession and the US-China trade war, the Group remains optimistic about business growth in securities, wealth management, and other financial services[18](index=18&type=chunk) - The Group will continue its dual-track development strategy, enhancing its securities and other financial services businesses and expanding wealth management services for high-net-worth clients to strengthen its overall profitability model[18](index=18&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Revenue and Segment Results](index=6&type=section&id=%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E6%A5%AD%E7%B8%BE) In FY2019, the Group's total revenue significantly decreased to approximately **HKD 113.5 million**, with securities and fur business revenues declining, while insurance brokerage and money lending revenues saw substantial growth FY2019 Total Revenue Comparison | Metric | 2019 (HK$ '000) | 2018 (HK$ '000) | | :--- | :--- | :--- | | Total Revenue | 113,500 | 200,300 | - Securities business revenue was approximately **28,500,000 HKD**, a year-on-year decrease of approximately **64.9%**, primarily due to a downward market trend and decreased average daily turnover[21](index=21&type=chunk) - Insurance brokerage business revenue was **40,900,000 HKD**, a significant increase from approximately **239,000 HKD** last year, but recorded a segment loss of **8,500,000 HKD**[22](index=22&type=chunk) - Fur business revenue decreased by approximately **82,500,000 HKD** to approximately **36,400,000 HKD**, recording a segment loss of approximately **33,200,000 HKD**[23](index=23&type=chunk) - Money lending business contributed approximately **7,700,000 HKD**, a significant increase from **65,000 HKD** last year, and recorded a segment profit of approximately **568,000 HKD**[24](index=24&type=chunk) [Cost of Sales](index=6&type=section&id=%E9%94%80%E5%94%AE%E6%88%90%E6%9C%AC) In FY2019, cost of sales decreased by approximately **35.7%** to **HK$ 78.9 million**, consistent with the overall decline in revenue FY2019 Cost of Sales Comparison | Metric | 2019 (HK$ '000) | 2018 (HK$ '000) | Change Rate | | :--- | :--- | :--- | :--- | | Cost of Sales | 78,900 | 122,700 | -35.7% | [Gross Profit and Gross Margin](index=7&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) In FY2019, consolidated gross profit was approximately **HK$ 34.7 million**, with a gross margin of **30.5%**, both lower than the previous year's **HK$ 77.5 million** and **38.7%** respectively FY2019 Gross Profit and Gross Margin Comparison | Metric | 2019 (HK$ '000) | 2018 (HK$ '000) | | :--- | :--- | :--- | | Consolidated Gross Profit | 34,700 | 77,500 | | Gross Margin | 30.5% | 38.7% | [Other Income](index=7&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) In FY2019, other income decreased by approximately **HKD 32 million**, primarily due to the absence of foreign currency exchange gains recorded in FY2018 - Other income decreased by approximately **32,000,000 HKD**, mainly because **2018** FY recorded approximately **31,800,000 HKD** in exchange gains, while **2019** FY had none[27](index=27&type=chunk) [Fair Value Change of Biological Assets Less Costs to Sell](index=7&type=section&id=%E7%94%9F%E7%89%A9%E8%B3%87%E7%94%A2%E5%85%AC%E5%B9%B3%E5%83%B9%E5%80%BC%E8%AE%8A%E5%8B%95%E6%B8%9B%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) In FY2019, the Group recognized a gain of approximately **HK$ 7.6 million** from fair value adjustments of biological assets, primarily breeding mink and breeding stock, a decrease from **HK$ 12.3 million** in the prior year Fair Value Change of Biological Assets Less Costs to Sell | Metric | 2019 (HK$ '000) | 2018 (HK$ '000) | | :--- | :--- | :--- | | Revenue | 7,600 | 12,300 | - Biological assets primarily refer to breeding mink and breeding stock in the mink farming business[28](index=28&type=chunk) [Administrative Expenses](index=7&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) In FY2019, administrative expenses decreased by approximately **11.3%** to **HK$ 95.8 million**, mainly due to reduced staff salaries, allowances, and commissions FY2019 Administrative Expenses Comparison | Metric | 2019 (HK$ '000) | 2018 (HK$ '000) | Change Rate | | :--- | :--- | :--- | :--- | | Administrative Expenses | 95,800 | 108,000 | -11.3% | - The decrease in administrative expenses was mainly attributable to reduced staff salaries, allowances, and commission expenses[29](index=29&type=chunk) [Finance Costs](index=7&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) In FY2019, finance costs slightly decreased to approximately **HK$ 10.8 million** from **HK$ 11.5 million** in FY2018, primarily comprising interest expenses on bank borrowings and imputed interest on promissory notes FY2019 Finance Costs Comparison | Metric | 2019 (HK$ '000) | 2018 (HK$ '000) | | :--- | :--- | :--- | | Finance Costs | 10,800 | 11,500 | - Finance costs primarily include interest expenses on bank borrowings and imputed interest on promissory notes[30](index=30&type=chunk) [Loss for the Year](index=7&type=section&id=%E5%B9%B4%E5%BA%A6%E虧%E6%90%8D) The Group's loss for FY2019 significantly widened to approximately **HK$ 89.2 million**, compared to a loss of **HK$ 7.9 million** in FY2018 FY2019 Loss for the Year Comparison | Metric | 2019 (HK$ '000) | 2018 (HK$ '000) | | :--- | :--- | :--- | | Loss for the Year | 89,200 | 7,900 | [Liquidity, Financial Resources, and Capital Structure](index=7&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) As at March 31, 2019, the Group's bank balances and cash were approximately **HK$ 100.8 million**, with net assets of approximately **HK$ 458 million**, a decrease from the prior year, primarily funded by internal cash flow, bank borrowings, and equity/debt financing - The Group primarily funds its operations through internally generated cash flows, bank borrowings, and equity/debt financing[32](index=32&type=chunk) FY2019 Liquidity and Net Assets | Metric | March 31, 2019 (HK$ '000) | March 31, 2018 (HK$ '000) | | :--- | :--- | :--- | | Bank Balances and Cash | 100,800 | 100,400 | | Net Assets | 458,000 | 548,300 | [Foreign Exchange Management](index=8&type=section&id=%E5%A4%96%E5%8C%AF%E7%AE%A1%E7%90%86) The Group adopts a prudent approach to foreign exchange risk, primarily from USD and DKK denominated transactions, with HKD-USD exchange rate risk being immaterial and DKK-denominated borrowings offsetting net asset fluctuations in Danish operations - The Group adopts a prudent approach to managing foreign exchange risk, primarily arising from sales and purchase transactions, investments, and borrowings denominated in USD and DKK[35](index=35&type=chunk) - As the Hong Kong Dollar is pegged to the US Dollar, the exchange rate fluctuation risk between HKD and USD is not material[34](index=34&type=chunk)[35](index=35&type=chunk) - The foreign exchange fluctuation impact on net assets of Danish overseas operations is considered manageable as it can be offset by DKK-denominated borrowings[35](index=35&type=chunk) - During the year, the Group did not engage in any financial instrument hedging or speculative activities[36](index=36&type=chunk) [Pledge of Assets](index=8&type=section&id=%E8%B3%87%E7%94%A2%E8%B3%AA%E6%8A%BC) As at March 31, 2019, the Group pledged key management insurance contracts (approximately **HKD 11 million**) and other property, plant and equipment, trade receivables, biological assets, and inventories (approximately **HKD 94.982 million**) as collateral for bank borrowings - As at March 31, 2019, the Group pledged key management insurance contracts (approximately **11,000,000 HKD**) as collateral for bank borrowings[39](index=39&type=chunk) - The Group also pledged other property, plant and equipment, trade receivables, biological assets, and inventories of approximately **80,418,000 DKK** (approximately **94,982,000 HKD**) as collateral for bank borrowings[39](index=39&type=chunk) [Capital Commitments and Contingent Liabilities](index=8&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94%E5%8F%8A%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As at March 31, 2019, the Group had no significant capital commitments or contingent liabilities - As at March 31, 2019, the Group had no significant capital commitments or contingent liabilities[40](index=40&type=chunk) [Significant Acquisitions, Disposals, and Investments](index=8&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E6%88%96%E5%87%BA%E5%94%AE%E4%BB%A5%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) During FY2019, the Company did not undertake any significant acquisitions, disposals, or major investments - During FY2019, the Company did not undertake any significant acquisitions, disposals, or major investments[41](index=41&type=chunk) [Final Dividend](index=8&type=section&id=%E6%9C%AB%E6%9C%9F%E8%82%A1%E6%81%AF) The Directors do not recommend the payment of any final dividend for FY2019 - The Directors do not recommend the payment of any final dividend for FY2019[42](index=42&type=chunk) [Employee Information](index=9&type=section&id=%E5%83%B1%E5%93%A1%E8%B3%87%E6%96%99) As at March 31, 2019, the Group had **74 employees** with total employee costs of approximately **HK$ 41 million**, a decrease from the prior year, with remuneration based on qualifications, experience, position, and market conditions, including MPF contributions and share options FY2019 Employee Data | Metric | March 31, 2019 | March 31, 2018 | | :--- | :--- | :--- | | Total Employees | 74 people | 74 people | | Employee Costs | 41,000,000 HKD | 46,900,000 HKD | - Remuneration is determined based on individual qualifications, experience, position, responsibilities, and market conditions, with employee performance assessed through annual reviews[43](index=43&type=chunk) - Other benefits include statutory Mandatory Provident Fund scheme contributions and share options[43](index=43&type=chunk) [Risk Management](index=9&type=section&id=%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Group manages credit, liquidity, and foreign exchange risks through established policies, continuous monitoring of receivables, ensuring adequate financing, and assessing foreign exchange exposure, with potential hedging via forward contracts - Credit risk primarily arises from trade receivables and loans receivable, which the Group mitigates through established credit policies and continuous monitoring[44](index=44&type=chunk) - Liquidity risk is managed by regularly monitoring liquidity needs and ensuring sufficient liquid cash and financing resources from reputable financial institutions to meet short-term and long-term requirements[45](index=45&type=chunk) - Foreign exchange risk arises from USD and DKK denominated transactions, which the Group continuously assesses and monitors, potentially implementing foreign exchange forward contracts for hedging, with HKD-USD exchange rate fluctuation risk being immaterial[46](index=46&type=chunk) [Environmental Policies and Compliance with Laws and Regulations](index=10&type=section&id=%E7%92%B0%E4%BF%9D%E6%94%BF%E7%AD%96%E5%8F%8A%E9%81%B5%E5%AE%88%E7%9B%B8%E9%97%9C%E6%B3%95%E5%BE%8B%E5%8F%8A%E6%B3%95%E8%A6%8F) This report communicates management's approach, strategies, priorities, and key performance in environmental policies and compliance with relevant laws and regulations, detailed in the 'Environmental, Social and Governance Report' section - This report aims to communicate management's approach, strategies, priorities, and key performance to stakeholders[49](index=49&type=chunk) - Details on environmental policies and compliance with relevant laws and regulations can be found in the 'Environmental, Social and Governance Report' section of this annual report[49](index=49&type=chunk) [Key Relationships with Employees, Customers, and Suppliers](index=10&type=section&id=%E8%88%87%E5%83%B1%E5%93%A1%E3%80%81%E5%AE%A2%E6%88%B6%E5%8F%8A%E4%BE%9B%E6%87%89%E5%95%86%E4%B9%8B%E4%B8%BB%E8%A6%81%E9%97%9C%E4%BF%82) For key relationships with employees, customers, and suppliers, please refer to the 'Major Customers and Suppliers' and 'Employees' sub-sections within the 'Directors' Report' - For key relationships with employees, customers, and suppliers, please refer to the 'Major Customers and Suppliers' and 'Employees' sub-sections within the 'Directors' Report'[50](index=50&type=chunk) [Biographical Details of Directors and Senior Management](index=11&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E5%B1%A4%E4%B9%8B%E8%A9%B3%E7%B4%B0%E5%B1%A5%E6%AD%B7) [Executive Directors](index=11&type=section&id=%E5%9F%B7%E8%A1%8C%E8%91%A3%E4%BA%8B) Mr. Wong Chun Chow serves as Chairman with over **30 years** of fur trade and management experience, overseeing overall strategic planning, while Ms. Kwok Yin Ning, CEO, with over **30 years** in the fur industry, is responsible for corporate management and strategic planning - Mr. Wong Chun Chow (62) was appointed as an executive director on March 31, 2011, and re-designated as the Company's Chairman and a member of the Nomination Committee on August 1, 2012[51](index=51&type=chunk) - Mr. Wong has over **30 years of experience** in fur trading and management, responsible for formulating and overseeing the Group's overall strategic planning and development[51](index=51&type=chunk) - Ms. Kwok Yin Ning (63) was appointed as an executive director on March 31, 2011, and as the Company's Chief Executive Officer on August 1, 2012, with over **30 years of experience** in the fur industry, responsible for the Group's corporate management and strategic planning[52](index=52&type=chunk) [Independent Non-Executive Directors](index=11&type=section&id=%E7%8D%A8%E7%AB%8B%E9%9D%9E%E5%9F%B7%E8%A1%8C%E8%91%A3%E4%BA%8B) Ms. Mak Yun Chu is a seasoned accountant and Audit Committee Chairman, Mr. Tang Tat Chi is a fashion designer and Nomination Committee Chairman, and Mr. Hung Wai Sze has over **14 years** of legal experience - Ms. Mak Yun Chu (61) is a Fellow of the Association of Chartered Certified Accountants and a practicing accountant of the Hong Kong Institute of Certified Public Accountants, serving as the Chairman of the Audit Committee[54](index=54&type=chunk) - Mr. Tang Tat Chi (64) is a fashion designer, serving as the Chairman of the Nomination Committee[59](index=59&type=chunk) - Mr. Hung Wai Sze (43) has over **14 years of experience** in the legal field, operating and managing multiple energy and recycling projects in mainland China and Hong Kong[57](index=57&type=chunk) [Senior Management](index=12&type=section&id=%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E5%B1%A4) Mr. Wong Tim Lok, COO, with over **30 years** of accounting, banking, and finance experience, oversees HR, IT, and daily operations, while Mr. Ng Siu Hong, Managing Director of Grand Capital Securities Limited, is experienced in securities and fundraising services - Mr. Wong Tim Lok (60) joined the Group in April 2017 as Chief Operating Officer, with over **30 years of experience** in accounting, banking, and finance, responsible for human resources, information technology, and daily operations[59](index=59&type=chunk) - Mr. Ng Siu Hong (38) is the Managing Director of Grand Capital Securities Limited, with extensive experience in securities-related work and fundraising services[60](index=60&type=chunk) [Corporate Governance Report](index=13&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%A0%B1%E5%91%8A) [Compliance with the Model Code for Securities Transactions by Directors](index=13&type=section&id=%E9%81%B5%E5%AE%88%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Group has adopted a code of conduct for directors' securities transactions, at least as stringent as Appendix 10 of the Listing Rules, with all directors confirming full compliance for the year ended March 31, 2019 - The Group has adopted a code of conduct for directors' securities transactions, with terms at least as stringent as those set out in Appendix 10 of the Listing Rules[62](index=62&type=chunk) - For the year ended March 31, 2019, all Directors confirmed full compliance with the Model Code for Securities Transactions[62](index=62&type=chunk) [Board of Directors](index=13&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) The Board, comprising two executive and three independent non-executive directors, leads and oversees the Group's business, strategy, and performance, ensuring high standards of financial and statutory reporting, with clear segregation of Chairman and CEO duties, regular meetings, and continuous professional development for directors - The Board of Directors comprises two executive directors and three independent non-executive directors, responsible for leading and overseeing the Company, reviewing business, strategic decisions, and performance[63](index=63&type=chunk) - Chairman Mr. Wong Chun Chow manages Board responsibilities, while Chief Executive Officer Ms. Kwok Yin Ning oversees the Group's overall internal operations, with clearly segregated duties[65](index=65&type=chunk) - The Board holds at least **four regular meetings** annually, having convened **four regular meetings and one additional meeting** in FY2019[69](index=69&type=chunk) - Board papers and all appropriate, complete, and reliable information are circulated to Directors at least **three days** before meetings to ensure informed decisions[74](index=74&type=chunk) - Each Director participates in continuous professional development to ensure a proper understanding of the Group's business and operations, and full awareness of their responsibilities and obligations under the Listing Rules and relevant regulatory requirements[76](index=76&type=chunk) [Board Committees](index=17&type=section&id=%E8%91%A3%E4%BA%8B%E5%A7%94%E5%93%A1%E6%9C%83) The Board has established Audit, Remuneration, and Nomination Committees to oversee specific matters, including financial reporting, internal controls, remuneration policies, and board structure, diversity, and director nominations - The Board has established an Audit Committee, a Remuneration Committee, and a Nomination Committee to oversee specific matters of the Group[77](index=77&type=chunk) - The Audit Committee, comprising three independent non-executive directors, is primarily responsible for reviewing and overseeing the Group's financial reporting process and internal control system[79](index=79&type=chunk) - The Remuneration Committee, comprising three independent non-executive directors, is primarily responsible for making recommendations on the remuneration policy and structure for all Directors and senior management[80](index=80&type=chunk)[81](index=81&type=chunk) - The Nomination Committee, comprising three independent non-executive directors and one executive director, is primarily responsible for reviewing the Board's structure, size, and diversity, and nominating suitable candidates for directorship[83](index=83&type=chunk) - The Company has adopted a Board Diversity Policy, considering factors such as gender, age, cultural and educational background, ethnicity, professional qualifications, skills, knowledge, and length of service[85](index=85&type=chunk) [Directors' and Officers' Liability Insurance](index=19&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E9%AB%98%E7%B4%9A%E4%BA%BA%E5%93%A1%E8%B2%AC%E4%BB%BB%E4%BF%9D%E9%9A%AA) Appropriate insurance covering directors' and officers' liabilities is in effect to protect against risks arising from the Group's business - Appropriate insurance covering the liabilities of Directors and senior officers is in effect to protect them against risks arising from the Group's business[88](index=88&type=chunk) [Directors' and Auditor's Responsibilities for the Consolidated Financial Statements](index=19&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%A0%B8%E6%95%B8%E5%B8%AB%E5%B0%8D%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E6%89%80%E6%89%BF%E6%93%94%E4%B9%8B%E8%B2%AC%E4%BB%BB) The Board is responsible for presenting balanced, clear, and understandable corporate information, ensuring accounts truly and fairly reflect the Group's financial position, and adopting a going concern basis, while the auditor's responsibilities are detailed in the independent auditor's report - The Board is responsible for presenting balanced, clear, and understandable corporate information, including annual and interim reports, other inside information announcements, and other financial disclosures required by the Listing Rules and other relevant statutory requirements[89](index=89&type=chunk) - The Directors acknowledge their responsibility for preparing accounts that truly and fairly reflect the Group's financial position, financial performance, and cash flows for the year ended March 31, 2019[89](index=89&type=chunk) - The Directors continue to adopt the going concern basis of accounting in preparing the consolidated financial statements[89](index=89&type=chunk) - The Company's auditor's statement regarding their reporting responsibilities for the Group's consolidated financial statements is set out in the Independent Auditor's Report on pages 61 to 68[90](index=90&type=chunk) [Auditor's Remuneration](index=19&type=section&id=%E6%A0%B8%E6%95%B8%E5%B8%AB%E9%85%AC%E9%87%91) For the year ended March 31, 2019, total remuneration paid/payable to the Group's auditors amounted to **HK$ 1,198 thousand**, with **HLB Hodgson Impey Cheng Limited** receiving **HK$ 746 thousand** and other auditors **HK$ 452 thousand** FY2019 Auditor's Remuneration | Service | Amount (HK$ '000) | | :--- | :--- | | Statutory Audit Services - HLB Hodgson Impey Cheng Limited | 746 | | Statutory Audit Services - Other Auditors | 452 | | **Total** | **1,198** | [Internal Control and Corporate Governance Policies](index=19&type=section&id=%E5%85%A7%E9%83%A8%E7%9B%A3%E6%8E%A7%E5%8F%8A%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E6%94%BF%E7%AD%96) The Board is fully responsible for monitoring internal control systems and corporate governance, having established a risk management framework for identifying, assessing, and managing business risks, with no significant risks identified during the year - The Board is fully responsible for monitoring the Company's internal control system and corporate governance, and for reviewing and maintaining an adequate internal control system[92](index=92&type=chunk) - The Group has adopted a risk management system, including identifying, assessing, and managing risks related to its business and operations[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) - Based on the risk assessment conducted for this financial year, no significant risks were identified[97](index=97&type=chunk) [Communication with Shareholders](index=20&type=section&id=%E8%88%87%E8%82%A1%E6%9D%B1%E4%B9%8B%E6%BA%9D%E9%80%9A) The Company is committed to maintaining communication with shareholders through AGMs, financial reports, and its website, encouraging participation, and providing channels for inquiries to the Chairman, while ensuring timely disclosure of relevant information - The Company is committed to maintaining communication with shareholders, particularly through annual general meetings or other general meetings, and encourages shareholder participation[98](index=98&type=chunk) - Shareholders may direct any inquiries to Mr. Wong Chun Chow, Chairman of the Board, by mail to the Company's principal place of business in Hong Kong or by email to admin@ukf.com.hk[103](index=103&type=chunk) - The Company will continue to maintain an open and effective investor communication policy, providing investors with timely and relevant updates on the Group's business in accordance with applicable regulatory requirements[105](index=105&type=chunk) [Dividend Policy](index=21&type=section&id=%E8%82%A1%E6%81%AF%E6%94%BF%E7%AD%96) The Company aims to balance shareholder returns with sustainable business development, but given current financial conditions and potential resource needs for business growth, it does not anticipate distributing any dividends in the near future, intending to reserve funds for development - The Company is committed to sharing its achievements with shareholders while balancing sustainable business development[107](index=107&type=chunk) - Given its current financial position and potential financial resources required for business development, the Company does not anticipate distributing any dividends in the near future, as it intends to reserve funds for business development[107](index=107&type=chunk) [Environmental, Social and Governance Report](index=22&type=section&id=%E7%92%B0%E5%A2%83%E3%80%81%E7%A4%BE%E6%9C%83%E5%8F%8A%E7%AE%A1%E6%B2%BB%E5%A0%B1%E5%91%8A) [Introduction, Environmental, Social and Governance Policy](index=22&type=section&id=%E5%BA%8F%E8%A8%80%E3%80%81%E7%92%B0%E5%A2%83%E3%80%81%E7%A4%BE%E6%9C%83%E5%8F%8A%E7%AE%A1%E6%B2%BB%E6%94%BF%E7%AD%96) This ESG report summarizes UKF's environmental, social, and governance initiatives, plans, and performance, demonstrating its commitment to sustainability, with securities brokerage becoming a key business alongside mink farming and fur trading - This ESG report summarizes UKF and its subsidiaries' environmental, social, and governance (ESG) initiatives, plans, and performance, demonstrating their commitment to sustainability[109](index=109&type=chunk) - The Group primarily engages in securities brokerage, wealth management services and other financial services, mink farming, and mink fur trading, with securities brokerage becoming a key business in recent years[109](index=109&type=chunk) [ESG Governance Structure](index=22&type=section&id=ESG%E7%AE%A1%E6%B2%BB%E6%9E%B6%E6%A7%8B) The Group adopts a top-down ESG management approach, with the Board overseeing and defining ESG strategy, ensuring effective risk management and internal controls, supported by an ESG working group responsible for data collection, reporting, and risk assessment - The Group adopts a top-down management approach to ESG issues, with the Board overseeing and defining the Group's ESG strategy[110](index=110&type=chunk) - An ESG working group has been established, responsible for collecting relevant ESG data and preparing ESG reports, reporting regularly to the Board, and assisting in assessing and identifying ESG risk management[112](index=112&type=chunk) [Reporting Scope](index=22&type=section&id=%E5%A0%B1%E5%91%8A%E7%AF%84%E5%9C%8D) This ESG report covers the Group's business activities in Denmark and Hong Kong, including mink farming in Denmark and fur trading, securities brokerage, and other financial services in Hong Kong, with KPIs collected from directly controlled companies and subsidiaries - This ESG report covers the Group's business activities in Denmark and Hong Kong[113](index=113&type=chunk) - Mink farming operations are located in Denmark, while fur trading, securities brokerage, and other financial services operations are primarily located in Hong Kong[113](index=113&type=chunk) - ESG key performance indicators are collected and recorded based on companies and subsidiaries directly controlled by the Group's operations[113](index=113&type=chunk) [Reporting Framework](index=22&type=section&id=%E5%A0%B1%E5%91%8A%E6%A1%86%E6%9E%B6) The ESG report is prepared in accordance with all applicable provisions of Appendix 27 'Environmental, Social and Governance Reporting Guide' of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited - The ESG report is prepared in accordance with all applicable provisions of Appendix 27 'Environmental, Social and Governance Reporting Guide' of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[114](index=114&type=chunk) [Reporting Period](index=22&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E9%96%93) The ESG report outlines the Group's ESG activities, challenges, and measures taken for the year ended March 31, 2019 - The ESG report outlines the Group's ESG activities, challenges, and measures taken for the year ended March 31, 2019[116](index=116&type=chunk) [Stakeholder Engagement](index=23&type=section&id=%E6%8C%81%E4%BB%BD%E8%80%85%E5%8F%83%E8%88%87) The Group values stakeholder feedback, maintaining close communication with the Stock Exchange, government, suppliers, investors, clients, employees, media, and the community through various channels to address concerns and improve ESG performance collaboratively - The Group maintains close communication with key stakeholders (including the Stock Exchange, government and regulatory bodies, suppliers, investors and shareholders, customers, employees, media, NGOs, and the community) to understand and address their main concerns[118](index=118&type=chunk) - Stakeholder expectations are considered through various engagement methods and communication channels (e.e.g., meetings, training, roadshows, financial reports, customer hotlines, regular performance reviews, press releases)[118](index=118&type=chunk) [Materiality Assessment](index=24&type=section&id=%E9%87%8D%E8%A6%81%E6%80%A7%E8%A9%95%E4%BC%B0) The Group considered stakeholder feedback in determining material ESG matters for this report, categorizing them into environmental (emissions, resource use, natural resources) and social (employment, health & safety, product responsibility, anti-corruption) aspects, and assessing their significance - The Group has considered feedback from relevant stakeholders in determining the material ESG matters to be covered in this ESG report[120](index=120&type=chunk) - Material ESG matters include environmental aspects such as gaseous emissions, greenhouse gas emissions, wastewater discharge, waste management, water consumption, energy consumption, indoor air quality, respect for nature, and biodiversity protection[120](index=120&type=chunk) - Material ESG matters in social aspects include talent retention, recruitment, promotion and dismissal, diversity, equal opportunity and anti-discrimination, safety measures, training and development management, prevention of child and forced labor, supply chain management, complaint channels, customer service and privacy, animal rights, anti-corruption, anti-money laundering and counter-terrorist financing, whistleblowing mechanisms, and community investment and engagement[120](index=120&type=chunk) [Contact Us](index=25&type=section&id=%E8%81%AF%E7%B5%A1%E6%88%91%E5%80%91) The Group welcomes feedback and suggestions on its ESG report or sustainability performance, which can be sent via email to admin@ukf.com.hk - The Group welcomes feedback and suggestions from stakeholders, who can provide valuable input on the ESG report or sustainability performance by emailing admin@ukf.com.hk[121](index=121&type=chunk) [A. Environment](index=25&type=section&id=A.%20%E7%92%B0%E5%A2%83) The Group integrates sustainability into its operations, striving to minimize environmental impact and comply with relevant laws, focusing on emissions (gaseous, GHG, wastewater, waste), resource use (water, energy, packaging), and environmental protection (indoor air quality, biodiversity) - The Group integrates sustainability-related issues into its business operations, striving to minimize environmental impact, committed to educating employees on environmental awareness, and complying with relevant environmental laws and regulations[122](index=122&type=chunk) - In FY2019, the Group did not identify any material non-compliance with environmental laws and regulations in Hong Kong and Denmark[123](index=123&type=chunk) - The Group's primary greenhouse gas emission sources are diesel consumed by feeding vehicles (Scope 1), purchased electricity (Scope 2), and other indirect greenhouse gas emissions (Scope 3), totaling **262.16 tonnes of CO2 equivalent**[127](index=127&type=chunk)[128](index=128&type=chunk) - Wastewater discharge from mink farming operations increased from approximately **18,181 cubic meters** in FY2018 to approximately **23,441 cubic meters** in FY2019[138](index=138&type=chunk) - The Group implements the 'reduce, reuse, and recycle' principle, recovering manure as organic fertilizer in its Danish mink farming operations, recycling feed packaging materials, and using fish by-products as mink feed[141](index=141&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) - Total energy consumption in FY2019 was **496,005.87 kWh**, with diesel consumption of **211,432.87 kWh** and purchased electricity of **284,573.00 kWh**[154](index=154&type=chunk) - The Group's fur farming practices are environmentally conscious, with mink animal fat used for biodiesel production, the remainder as CO2-neutral energy, and feed utilizing by-products from the fish and meat industries[160](index=160&type=chunk) [B. Society](index=32&type=section&id=B.%20%E7%A4%BE%E6%9C%83) The Group values employees as its most precious resource, committed to providing a caring, safe, and positive work environment while strictly adhering to labor regulations, prioritizing customer satisfaction, privacy protection, and animal welfare in product responsibility, and actively engaging in anti-corruption efforts and community investment - The Group regards employees as its most valuable resource, committed to providing a caring, safe, and positive work environment while strictly adhering to labor regulations in Hong Kong and Denmark[164](index=164&type=chunk)[165](index=165&type=chunk) - The Group offers attractive remuneration packages, holidays, medical plans, group insurance, MPF, and discretionary bonuses, and has a rental compensation scheme to retain talent[166](index=166&type=chunk) - The Group employs transparent recruitment procedures, ensuring equal opportunities for all job applicants, and strictly prohibits any unfair or unlawful dismissals[167](index=167&type=chunk) - The Group is committed to providing a safe and healthy work environment for all employees, adhering to occupational health and safety guidelines recommended by the Labour Department and Occupational Safety and Health Council[177](index=177&type=chunk) - The Group strictly prohibits the employment of child or forced labor, complying with Hong Kong's Employment Ordinance and Denmark's Children Act[184](index=184&type=chunk) - In its fur trading business, the Group strictly regulates its supply chain, with particular attention to animal rights and ethical issues, complying with the codes of the European Fur Breeders' Association[187](index=187&type=chunk) - The Group is committed to providing quality services and products to customers, maintaining complaint channels, and prioritizing customer privacy protection and animal welfare[189](index=189&type=chunk)[190](index=190&type=chunk)[192](index=192&type=chunk)[194](index=194&type=chunk) - The Group firmly opposes corruption, fraud, and all other unethical conduct, and has established anti-money laundering and counter-terrorist financing policies and whistleblowing mechanisms[197](index=197&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk) - The Group actively participates in community activities such as donations, volunteer services, and sponsorships, with total charitable donations in FY2019 amounting to **161,000 HKD**[201](index=201&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk) [The Stock Exchange of Hong Kong Limited ESG Reporting Guide Content Index](index=42&type=section&id=%E9%A6%99%E6%B8%AF%E8%81%AF%E5%90%88%E4%BA%A4%E6%98%93%E6%89%80%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8%E3%80%8A%E7%A4%BE%E6%9C%83%E3%80%81%E7%92%B0%E5%A2%83%E5%8F%8A%E7%AE%A1%E6%B2%BB%E5%A0%B1%E5%91%8A%E6%8C%87%E5%BC%95%E3%80%8B%E7%B4%A2%E5%BC%95%E8%A1%A8) This section provides an index aligning the Group's ESG report content with the thematic areas, aspects, general disclosures, and key performance indicators of the HKEX ESG Reporting Guide, facilitating reader navigation - This index aims to illustrate how the Group's ESG report content complies with all applicable provisions of the HKEX ESG Reporting Guide[206](index=206&type=chunk) - The index covers two main areas: environmental (emissions, resource use, environment and natural resources) and social (employment, health and safety, development and training, labor standards, supply chain management, product responsibility, anti-corruption, community investment)[206](index=