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].