Financial Performance - The company reported a revenue of HKD 1,198.5 million for the fiscal year ending March 31, 2023, a decrease of 2.1% compared to HKD 1,223.8 million in the previous year[16]. - The company incurred a net loss of HKD 31.4 million, contrasting with a profit of HKD 3.7 million in the prior year[16]. - EBITDA for the year was HKD 3.6 million, significantly down from HKD 35.1 million in the previous year[5]. - The gross profit margin decreased to 10.8% from 12.7% in the previous year[6]. - The net profit margin was reported at -2.6%, compared to 0.3% in the previous year[6]. - The company's sales performance remained comparable to the previous year, with total revenue from product sales decreasing from approximately HKD 1,222.9 million to HKD 1,197.3 million due to pandemic-related impacts[27]. - Other income and net gains decreased to approximately HKD 1.3 million from HKD 7.1 million in the previous year, a decline of about HKD 5.8 million, mainly due to reduced fair value gains on financial assets and increased foreign exchange losses[31]. - The company's revenue is derived from the resale of components and is influenced by the costs associated with providing value-added services to customers[184]. - The demand for components may be adversely affected by the obsolescence of existing technologies, which could impact the company's business and financial performance[185]. - The board has decided not to recommend a final dividend for the year, reflecting a cautious approach given the overall economic and business environment[190]. Debt and Financial Health - The company's debt-to-equity ratio increased to 75.7%, up from 48.9% in the previous year[6]. - The group's cash resources decreased to approximately HKD 64.8 million from HKD 161.2 million in the previous year, with total bank borrowings amounting to HKD 361.9 million[39]. - The debt-to-equity ratio increased from approximately 48.9% to about 75.7%, mainly due to increased bank borrowings and recorded losses[39]. - Financing costs rose to approximately HKD 27.6 million from HKD 15.0 million in the previous year, primarily due to increased interest expenses on bank borrowings[35]. - The company believes it has sufficient resources to continue operating for the foreseeable future, adopting a going concern basis for its financial statements[131]. Market Trends and Opportunities - The semiconductor industry is projected to grow to USD 1.1 trillion by 2030, with the Asia-Pacific region leading this growth[17]. - The company aims to leverage trends in the semiconductor market, particularly in the Asia-Pacific region, to enhance its growth prospects[17]. - The semiconductor industry is expected to continue developing and adapting to changing market conditions, benefiting significantly from advancements in AI, the rollout of 6G networks, and improvements in WiFi 7 technology[18]. - Despite challenges such as geopolitical issues and supply chain disruptions, the semiconductor industry remains a key player in the global economy, with strong demand anticipated in telecommunications infrastructure and data centers[20]. - The rise of AI presents substantial opportunities, particularly in connection technologies and data center demands, prompting the company to seek investment opportunities in these areas[25]. - The company is optimistic about long-term revenue growth, focusing on diversifying revenue sources and exploring new markets and partnerships[21]. Operational Efficiency and Strategy - The company is actively reviewing its revenue and cost structure to improve operational efficiency and competitiveness[16]. - The company plans to enhance its product offerings and market coverage by developing new business partnerships and exploring new technologies and markets[24]. - The company aims to improve its financial health and maintain a competitive edge by diversifying its product lines and enhancing relationships with customers and suppliers[24]. - The company recognizes the importance of strategic partnerships with local and global suppliers to provide innovative solutions that meet evolving customer needs[18]. - The company is committed to addressing the challenges posed by economic conditions and market uncertainties[16]. Management and Governance - The company has a strong management team with extensive experience in various sectors, including finance, technology, and project management, enhancing its operational capabilities[65][66]. - The financial director, Mr. Guo Wensheng, has over 40 years of global experience, particularly in mergers and acquisitions, which could facilitate strategic growth opportunities for the company[66]. - The company is committed to maintaining high standards of accountability and resource management through its independent directors and committees[62][64]. - The board of directors emphasizes the importance of good corporate governance for sustainable development and has adhered to all applicable code provisions, except for the separation of the roles of Chairman and CEO[73]. - The company has implemented sufficient risk management and internal control systems to monitor business performance[77]. Shareholder Communication and Engagement - The company held its annual general meeting on August 12, 2022, providing a platform for shareholders to communicate with the board[150]. - The company has established a shareholder communication policy to ensure effective engagement with shareholders and will regularly review its implementation[149]. - The board will review the effectiveness of the shareholder communication policy regularly to ensure its efficiency[149]. - The company emphasizes the importance of effective communication with shareholders and investors through various channels, including reports and announcements[149]. - The company has a clear process for shareholders to propose resolutions at general meetings, ensuring transparency and participation[159]. Risk Management - The company has established effective risk management policies to identify, assess, and manage risks, with annual evaluations conducted by management[134]. - The board regularly reviews the effectiveness of the risk management and internal control systems, ensuring sufficient resources and qualified personnel are in place[136]. - The company has a robust internal control and risk management system, which is reviewed by the Audit Committee for effectiveness and adequacy[120]. - The Risk Management Committee supervises the implementation of internal controls related to sanction legal risks and reviews potential business transactions with sanctioned entities[122]. - The company emphasizes a zero-tolerance policy towards bribery and corruption, maintaining high standards of business integrity and transparency[143].

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的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就 因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任何損 失承擔任何責任。 Pangaea Connectivity Technology Limited 環 聯 連 訊 科 技 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1473） 截 至 二 零 二 三 年 三 月 三 十 一 日 止 年 度 全 年 業 績 公 告 本年度的總收益同比減少約2.1%至1,198.5百萬港元，而截至二零二二年 三月三十一日止年度的總收益則為1,223.8百萬港元。 本年度，本公司擁有人應佔淨虧損為約31.4百萬港元，而截至二零二二 年三月三十一日止年度的純利為3.7百萬港元。 本年度的每股基本虧損為3.14港仙，而截至二零二二年三月三十一日止 年度的每股基本盈利為0.37港仙。 董事會不建議派付本年度的末期股息（二零二二年：無）。 環聯連訊科技有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本 公司及其附屬公司（統稱「本集團」）截至二零二三年三月三十一日止年 ...

Financial Performance - Revenue from product sales increased from approximately HKD 653.8 million to HKD 682.1 million, representing a slight increase due to rising market demand [22]. - Gross profit margin improved from 11.2% to 12.2%, attributed to increased product demand [24]. - Net profit for the period was approximately HKD 4.1 million, a 121.0% increase compared to HKD 1.8 million for the same period last year [34]. - Revenue for the six months ended September 30, 2022, was HKD 682,449,000, an increase from HKD 659,121,000 in the same period last year, representing a growth of approximately 3.9% [110]. - Profit attributable to equity holders of the parent for the period was HKD 4,051,000, compared to HKD 1,833,000 in the previous year, reflecting a significant increase of 121.5% [110]. - Basic and diluted earnings per share for the period were both HKD 0.41, compared to HKD 0.18 in the prior year, marking a 127.8% increase [110]. - The company reported a pre-tax profit of HKD 33,785,000 for the six months ended September 30, 2022, down from HKD 39,279,000 in 2021, indicating a decrease of 14.0% [162]. Market and Industry Trends - For the first half of the fiscal year 2022/2023, the company maintained performance despite challenges in the semiconductor industry due to geopolitical tensions and rising costs [12]. - The semiconductor industry is experiencing demand fluctuations due to geopolitical tensions and economic uncertainties, impacting the company's market outlook [19]. - The company remains cautiously optimistic about market recovery despite delays in 5G projects and infrastructure development [18]. - The company is preparing for future growth opportunities in the 6G sector, anticipating benefits from ongoing industry expansion [19]. - As of September 2022, 288 operators in 92 countries have launched 3GPP-compliant 5G services, indicating a strong global push for 5G technology [18]. - By the end of July 2022, China had built 2.22 million 5G base stations, an increase of 795,000 from December 2021, highlighting the rapid expansion of 5G infrastructure [18]. Operational Strategy - The company continues to establish offices near new production bases in Southeast Asia to enhance collaboration with major clients and suppliers [15]. - The company is focusing on localizing material supply through partnerships with local suppliers to improve supply chain flexibility and reduce operational costs [15]. - The company is committed to diversifying its product portfolio and expanding market coverage from China to Southeast Asia [15]. - The company is focused on maintaining its development pace and seeking new growth drivers in a challenging economic environment [15]. Financial Position and Cash Flow - Cash resources as of September 30, 2022, were approximately HKD 121.9 million, down from HKD 161.2 million as of March 31, 2022 [37]. - The debt-to-equity ratio increased from approximately 86.9% to 110.5%, driven by increases in inventory and trade receivables [37]. - The company reported a cash flow from operating activities of HKD 23,994,000 for the six months ended September 30, 2022, down from HKD 35,196,000 in the previous year [126]. - The net cash used in operating activities was HKD 69,312,000, an improvement from HKD 101,649,000 in the prior year [126]. - The company experienced a net decrease in cash and cash equivalents of HKD 36,811,000, contrasting with an increase of HKD 31,297,000 in the same period last year [127]. - The company’s total equity increased to HKD 282,305,000, up from HKD 274,589,000 as of March 31, 2023 [119]. Shareholder Information - The major shareholder, Generous Horizon Limited, holds 750 million shares, representing 75% of the issued share capital [67]. - The company’s board members and key executives have disclosed their interests in the company's shares, with Mr. Feng Rui Jiang holding 750 million shares (75%) and other executives holding smaller amounts [59][67]. - The company did not declare any interim dividend for the period [106]. - No interim dividend was proposed for the current period, while a final dividend of HKD 0.013 per share was paid in the previous year, totaling HKD 13,000,000 [170]. Stock Options and Employee Compensation - The company has a stock option plan effective from January 25, 2021, aimed at incentivizing and rewarding eligible participants, including directors and employees [71]. - The total number of shares that may be issued upon the exercise of stock options granted under the plan is capped at 100,000,000 shares, representing 10% of the total issued shares [72]. - A total of 78,464,000 stock options were granted, with 17,700,000 options allocated to certain directors for future service to the group [76]. - The exercise price for stock options is set at HKD 0.60 per share, with the closing price on the grant date being HKD 0.59 [76]. - The company must obtain prior approval from independent non-executive directors for granting stock options to directors, major executives, or major shareholders [75]. Risks and Challenges - The ongoing geopolitical conflicts and economic downturns have contributed to a challenging business environment, impacting the company's operational timelines [56]. - The company has faced restrictions and regulations due to border controls and quarantine measures, further hindering global economic recovery [56]. - The company is continuously evaluating market conditions to fulfill its future plans and will provide updates as necessary [56]. Asset Management - As of September 30, 2023, non-current assets totaled HKD 78,869,000, a decrease of 2.3% from HKD 81,241,000 as of March 31, 2023 [116]. - Current assets increased to HKD 811,185,000, up 13.8% from HKD 712,850,000 as of March 31, 2023, driven by a significant rise in inventory, which reached HKD 375,305,000, up 24.9% from HKD 300,414,000 [116]. - The company’s non-current assets as of September 30, 2022, were HKD 40,088,000, a decrease from HKD 43,062,000 as of March 31, 2022 [151]. - The company reported a significant reduction in the purchase of property, plant, and equipment, amounting to HKD (957,000), compared to HKD (2,842,000) in the previous year [127].

Financial Performance - For the fiscal year ending March 31, 2022, the company reported a revenue of HKD 1,223.8 million, a decrease of 21.0% compared to HKD 1,549.3 million in the previous year[6]. - The gross profit for the year was HKD 155.5 million, down 21.4% from HKD 197.7 million in 2021[17]. - The net profit attributable to ordinary shareholders was approximately HKD 3.7 million, significantly lower than HKD 50.1 million in the prior year, reflecting the impact of global semiconductor shortages and COVID-19[17]. - The EBITDA for the year was HKD 35.1 million, a decline from HKD 88.4 million in 2021[6]. - The company's gross margin was 12.7%, unchanged from the previous year, while the net profit margin dropped to 0.3% from 3.2%[7]. - The group's net profit for the year was approximately HKD 3.7 million, a decrease of about 92.5% compared to HKD 50.1 million in the previous year[36]. Debt and Financial Leverage - The debt-to-equity ratio increased to 86.9%, compared to 39.4% in the previous year, indicating a higher level of financial leverage[7]. - The total outstanding bank borrowings increased to HKD 399.8 million from HKD 252.5 million in the previous year, reflecting a significant rise in financing needs[37]. - The group's debt-to-equity ratio rose from approximately 39.4% to 86.9%, primarily due to increased inventory levels in response to semiconductor shortages[37]. Market and Business Development - The ongoing global semiconductor shortage and pandemic-related disruptions have adversely affected the company's growth, particularly in China's 5G projects[17]. - The company aims to leverage its post-IPO capital strength to maximize shareholder value despite the challenging global business environment[17]. - The company is focused on expanding its market presence and exploring potential opportunities for business development following its successful listing on the Hong Kong Stock Exchange[17]. - The company plans to continue investing in new technologies and product development to enhance its competitive position in the market[17]. - The company plans to expand its product portfolio to enhance competitive advantages in both vertical and horizontal markets[20]. - The company aims to localize component and module supply to strengthen its position in meeting diverse demand patterns[20]. - The company is actively exploring new business opportunities and expanding partnerships with upstream and downstream business partners[20]. - The company has established three new offices in Southeast Asia to meet regional demand and expand market coverage[21]. - The company anticipates increased focus and clarity in 5G, data center, IoT, and commercial laser application projects in the near future[24]. - The company anticipates continued growth in demand for digital storage and IoT products driven by the rollout of 5G networks and increased internet accessibility[52]. Administrative and Operational Costs - The company's administrative expenses increased by approximately HKD 13.9 million or 16.6% to HKD 98.1 million, primarily due to higher salaries and employee benefits, which rose by about HKD 5.4 million[32]. - Sales and distribution costs were approximately HKD 39.1 million, a slight decrease of about 0.5% from HKD 39.3 million in the previous year[31]. - The group's financing costs were approximately HKD 15.0 million, a slight decrease from HKD 15.5 million in the previous year, mainly due to reduced bank borrowings[33]. Corporate Governance and Management - The company has a strong governance structure with independent non-executive directors providing oversight on policies, performance, and compliance[59]. - The management team is committed to ensuring compliance and accountability within the organization, reflecting a strong corporate governance culture[59]. - The company emphasizes the importance of corporate governance, presenting its annual corporate governance report[74]. - The board includes members with diverse backgrounds, including legal and financial expertise, enhancing the company's strategic decision-making capabilities[63]. - The company is focused on expanding its market presence and enhancing its corporate governance practices through experienced board members[60]. - The company has established a robust framework for independent oversight, with independent directors actively participating in key committees[63]. - The strategic planning and development efforts are supported by a team with significant industry experience, ensuring informed decision-making[55]. - The company aims to leverage its experienced leadership to drive future growth and market expansion initiatives[56]. Board Composition and Diversity - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a high level of independence[76]. - The company has a diverse board composition, which is regularly reviewed to ensure a balance of skills and experience relevant to the business[85]. - The board diversity policy aims to ensure a balanced mix of skills, experience, and perspectives to support business strategy and sustainable development[95]. - The Nomination Committee reviews the board diversity policy annually and has determined that the company meets its measurable diversity targets in terms of age, educational background, and professional experience[97]. - The company emphasizes the importance of diversity in its board composition, considering various factors such as gender, age, and professional experience[98]. Risk Management and Internal Control - The company has established a robust risk management and internal control system, which is reviewed annually to ensure long-term sustainable development[173]. - The risk management policies provide guidance for identifying, assessing, and managing risks, with significant risks being assigned mitigation plans and responsible personnel[175]. - The internal control function regularly reviews the effectiveness of the existing internal control systems and reports findings to the audit committee[176]. - The board believes that the resources for accounting and financial reporting are adequate, and staff possess the necessary qualifications and experience[177]. Shareholder Communication and Dividend Policy - The company maintains effective communication with shareholders and investors through various channels, including interim and annual reports[183]. - The designated executive directors and senior management engage in regular dialogue with institutional investors and analysts to provide updates on the company's developments[183]. - The company has adopted a dividend policy aiming to distribute at least 25% of the distributable profits to shareholders, excluding non-recurring items[188]. - The board will consider the group's current and future operating performance, cash flow situation, and financial condition when declaring dividends[188]. - The company retains the discretion to update or modify the dividend policy at any time without any legal obligation to pay a specific amount[193].

Revenue Performance - The company's revenue decreased by approximately 29.1% compared to the same period in 2020, primarily due to a severe shortage of semiconductor integrated circuits [11]. - Revenue for the six months ended September 30, 2021, was HKD 659,121,000, a decrease of 29.1% compared to HKD 929,665,000 for the same period in 2020 [73]. - Revenue from product sales dropped from approximately HKD 929.2 million for the six months ended September 30, 2020, to about HKD 653.8 million in the current period, attributed to delays in major customer deliveries due to the slowdown in China's 5G project development [16]. - Revenue from product sales was HKD 653,821,000, representing a significant decline of 29.8% from HKD 929,240,000 in the previous year [102]. - Revenue from services provided increased to HKD 5,300,000, up from HKD 425,000, marking a substantial growth [102]. Profitability and Margins - The gross profit margin for product sales during the period was approximately 11.2%, down from 12.6% for the six months ended September 30, 2020, primarily due to competitive pricing offered to customers for bulk purchase orders [18]. - The gross profit margin for service provision was approximately 98.3%, compared to 80.6% for the six months ended September 30, 2020, reflecting variability based on the scope and nature of services provided [19]. - Net profit for the period was approximately HKD 1.8 million, a decrease of about 95.4% from HKD 39.5 million for the six months ended September 30, 2020, mainly due to reduced revenues and lower gross profit margins [26]. - Profit attributable to equity holders of the parent for the period was HKD 1,833,000, a significant decline of 95.4% from HKD 39,524,000 in the previous year [74]. - Basic and diluted earnings per share were both HKD 0.18, compared to HKD 5.27 for the same period in 2020 [73]. Expenses and Costs - Selling and distribution costs were approximately HKD 17.7 million, a decrease of about HKD 1.7 million or 8.9% compared to HKD 19.4 million in 2020, primarily due to reduced revenues during the period [21]. - Administrative expenses increased by approximately HKD 6.6 million or 15.7% to HKD 48.9 million, mainly due to share-based payment expenses and increased legal and professional fees following the company's listing [23]. - Financing costs were approximately HKD 5.5 million, down from HKD 8.6 million in 2020, primarily due to reduced bank borrowings during the period [24]. Cash Flow and Financial Position - The group reported a net cash position of HKD 178,146,000 as of September 30, 2021, compared to HKD 146,809,000 at the end of the previous fiscal year [79]. - For the six months ended September 30, 2021, the company reported a cash flow from operating activities of HKD (101,649) thousand, compared to HKD (1,881) thousand in the same period of 2020 [84]. - The net increase in cash and cash equivalents for the six months ended September 30, 2021, was HKD 31,297 thousand, up from HKD 24,157 thousand in the previous year [86]. - The company's retained earnings as of September 30, 2021, were HKD 141,746 thousand, slightly up from HKD 141,369 thousand in the previous year [82]. Investments and Market Expansion - A full subsidiary of the company entered into an investment agreement to acquire approximately 2.4% of a target company for RMB 8 million, which focuses on high-end precision control products in various sectors including optical communications and AI IoT [13]. - The investment is expected to expand the company's product portfolio and strengthen its position in the optical components market [14]. - The company has established new offices in Chengdu and Suzhou, as well as in Taiwan, to capture increasing market opportunities in the Greater China region [11]. - The company is also setting up representative offices in Malaysia, Singapore, and Vietnam to expand its presence in the Asia-Pacific region as 5G development progresses [11]. Corporate Governance and Shareholder Information - The company is committed to maintaining good corporate governance practices, believing it is essential for effective management and enhancing shareholder value [65]. - The company has complied with all provisions of the corporate governance code, except for the separation of roles between the chairman and the CEO, which is deemed appropriate under the current structure [65]. - As of September 30, 2021, the major shareholder Generous Horizon Limited holds 750 million shares, representing 75% of the issued share capital [46]. - The company did not declare any interim dividend for the period [70]. Employee and Management Compensation - Total compensation for key management personnel increased to HKD 10,240,000 in 2021 from HKD 7,353,000 in 2020, reflecting a rise in short-term employee benefits and share-based payment expenses [157]. - The group’s short-term employee benefits decreased from HKD 6,995,000 in 2020 to HKD 6,381,000 in 2021 [157]. - The group’s post-employment benefits increased from HKD 358,000 in 2020 to HKD 503,000 in 2021 [157]. Stock Options and Shareholder Equity - The company has a stock option plan effective from January 25, 2021, aimed at incentivizing and rewarding eligible participants [49]. - The total number of shares that may be issued upon the exercise of all options granted under the share option plan shall not exceed 100,000,000 shares, representing 10% of the total issued shares, unless approved by shareholders [50]. - The exercise price for the options granted on April 20, 2021, is set at HKD 0.60 per share, with a total of 78,464,000 options granted [52]. - The fair value of the stock options granted on April 20, 2021, was HKD 32,977,000, with a contract term of 10 years [152].