Financial Performance - Total revenue for the six months ended September 30, 2022, was HK$83,557,000, an increase from HK$68,486,000 in the same period of 2021, representing a growth of approximately 22%[10] - Gross profit for the period was HK$26,685,000, with a cost of sales amounting to HK$56,872,000[10] - Profit before tax was reported at HK$7,534,000, compared to a loss in the previous period[10] - Basic earnings per share for the period was 0.85 HK cents, reflecting a positive performance compared to the previous period[10] - The total comprehensive income for the period was HK$5,842,000, which includes exchange differences arising from the translation of foreign operations[10] - The company reported a profit for the period of HK$7,367,000, contributing to total comprehensive income of HK$5,842,000 for the six months ended September 30, 2022[19] - The Group recorded a net profit of approximately HK$7.4 million for the six months ended 30 September 2022, a significant increase from approximately HK$0.1 million in the same period last year[164] - Profit attributable to owners of the Company was approximately HK$7.4 million in 1H2023, a substantial increase from HK$0.1 million in 1H2022[172] Revenue Breakdown - Total revenue for the six months ended September 30, 2022, was HK$83,557,000, with leasing revenue contributing HK$72,385,000 and trading revenue contributing HK$11,172,000[51] - Revenue from external customers for leasing increased from HK$54,747,000 in the previous year to HK$72,385,000, representing a growth of approximately 32%[61] - The Group's external revenue for the six months ended 30 September 2022 was HK$83,557,000, an increase of 22% compared to HK$68,486,000 for the same period in 2021[72] - Revenue from Hong Kong increased to HK$77,911,000 in 2022 from HK$62,039,000 in 2021, representing a growth of 25.6%[72] - The Group earned approximately HK$58,249,000 from leasing machinery during the period, down from approximately HK$97,436,000 for the year ended 31 March 2022[160] - For 1H2023, the Group recorded revenue of approximately HK$83.6 million, representing an increase of approximately 22.0% compared to HK$68.5 million for 1H2022[172] - Leasing income from equipment rose to approximately HK$58.3 million in 1H2023, up from approximately HK$46.5 million in 1H2022, reflecting a significant increase in demand from construction projects[192][196] Expenses and Costs - Administrative expenses were reported at HK$8,622,000, while selling and distribution expenses were HK$17,780,000[10] - The company incurred finance costs of HK$682,000 during the period[10] - Total staff costs increased to HK$26,358,000 for the six months ended 30 September 2022, up from HK$22,341,000 in 2021, representing an increase of approximately 18.0%[89] - The cost of inventories recognized as expenses decreased to HK$4,234,000 in 2022 from HK$9,289,000 in 2021, a reduction of about 54.4%[89] Assets and Liabilities - As of September 30, 2022, total assets amounted to HK$244,130,000, an increase from HK$239,555,000 as of March 31, 2022, reflecting a growth of approximately 2.4%[15] - Net current assets increased to HK$38,400,000 from HK$36,233,000, representing a growth of about 5.9%[15] - Total equity as of September 30, 2022, was HK$218,101,000, up from HK$212,259,000 as of March 31, 2022, indicating an increase of approximately 2.6%[15] - Current liabilities decreased to HK$74,338,000 from HK$79,115,000, showing a reduction of about 6.5%[15] - The company’s borrowings due within one year decreased to HK$22,569,000 from HK$25,213,000, a reduction of approximately 10.4%[15] Cash Flow - Net cash from operating activities increased to HK$27,837,000 in 2022 from HK$19,996,000 in 2021, representing a growth of approximately 39%[27] - Net cash used in investing activities was HK$(18,262,000) in 2022, compared to HK$(1,875,000) in 2021, indicating a significant increase in cash outflow[27] - The net cash used in financing activities was HK$(9,906,000), indicating a higher cash outflow compared to the previous period[27] - Cash and cash equivalents at the end of the period decreased to HK$54,614,000 from HK$60,057,000, reflecting a decline of approximately 9%[27] Strategic Focus and Market Conditions - The interim report indicates a strategic focus on expanding leasing services and improving operational efficiency[10] - The Group's strategic focus includes expanding its leasing and trading segments to enhance overall revenue growth and market presence[49] - The Group aims to enhance its service professionalism and increase revenue through the Smart System in Mobile Electricity concept[175] - The introduction of 30,000 new "Light Public Housing" units in Hong Kong over the next five years is expected to drive increased demand for construction works[186][187] Impairment and Losses - The company recognized impairment losses of HK$1,786,000 on property, plant, and equipment[10] - Impairment losses recognized on lease receivables and trade receivables amounted to HK$8,622,000, with HK$8,335,000 attributed to lease receivables[65] - Impairment losses under the expected credit loss model increased to approximately HK$8.6 million in 1H2023, up from a reversal of approximately HK$0.2 million in 1H2022, due to higher expected default risks[167] Government Support - The Group recognized government subsidies of HK$2,603,000 to support employment during the Covid-19 pandemic[77] - The Group received government subsidies of approximately HK$2.1 million from Hong Kong and approximately HK$0.5 million from Macau related to the Covid-19 pandemic in 1H2023, compared to nil in 1H2022[166]

Financial Performance - For FY2022, the Group reported total revenue of approximately HK$134.8 million, a decrease of approximately 9.2% compared to HK$148.5 million in FY2021[24]. - The Group's loss for FY2022 was approximately HK$4.5 million, down from a loss of approximately HK$5.7 million in FY2021[24]. - Revenue for FY2022 was approximately HK$134.8 million, representing a decrease of about 9.2% compared to approximately HK$148.5 million in FY2021[47]. - The Group recorded a loss of approximately HK$4.5 million for FY2022, a decrease from a loss of approximately HK$5.7 million in FY2021, primarily due to increased impairment losses under the expected credit loss model[45]. - Basic loss per share attributable to owners of the Company for FY2022 was HK$0.52 cents, down from HK$0.66 cents in FY2021[47]. - The Group's total equity as of 31 March 2022 was HK$212.3 million, a decrease from HK$216.1 million in FY2021[107]. - The Group's current ratio as of 31 March 2022 was 1.48, indicating a decrease from 1.83 in FY2021, reflecting a tighter liquidity position[107]. - The Group reported a loss attributable to owners of approximately HK$4.46 million for the fiscal year ended March 31, 2022[112]. - Earnings per share for the year were reported at a loss of HK$0.52, compared to a loss of HK$0.66 in the previous year[112]. Revenue Breakdown - Rental income from equipment decreased to approximately HK$97.4 million in FY2022, down from approximately HK$101.9 million in FY2021, accounting for approximately 72.3% of the Group's total revenue[72]. - Revenue from trading business decreased to approximately HK$17.8 million in FY2022, down from approximately HK$27.5 million in FY2021, as the Group focused more on equipment disposal[52]. - The Group's other service income increased to approximately HK$7.2 million in FY2022 from approximately HK$6.3 million in FY2021, representing about 5.4% of total revenue[74]. - Revenue from sales of machinery and parts decreased by approximately 35.5% from approximately HK$27.5 million in FY2021 to approximately HK$17.8 million in FY2022[75]. Cost and Expenses - Administrative expenses increased to approximately HK$34.1 million in FY2022, up from approximately HK$31.4 million in FY2021, mainly due to hiring more management staff and increased compliance costs[45]. - The Group's cost of sales and services amounted to approximately HK$114.2 million in FY2022, a decrease of approximately 12.1% from approximately HK$130.0 million in FY2021[76]. - Staff costs under the cost of sales and services increased by approximately HK$2.4 million due to hiring more technician staff[79]. - Other income decreased significantly by approximately 88.1%, from HK$6.6 million in FY2021 to HK$0.8 million in FY2022, primarily due to a reduction in government subsidies received[83]. Market Conditions - The overall market sentiment in the construction industry in Hong Kong remained poor due to the Covid-19 pandemic, impacting operational days at customer work sites[25]. - In the PRC, the construction industry remains affected by the debt crisis and Covid-19, prompting the Group to increase the disposal of low-utilization equipment and tighten credit control over customers[37]. - The Group anticipates no material improvement in leasing equipment demand in the PRC for FY2023 due to ongoing debt crises and the impact of Covid-19[65]. - Factors causing potential market weakness include economic recession due to the Covid-19 outbreak in Hong Kong since January 2022, increased construction material costs from the Russia-Ukraine conflict, and adverse changes in government infrastructure spending[137]. Investment and Future Plans - The Group plans to continue investing in advanced machines and solutions related to environmental protection and social responsibilities in FY2023[39]. - The Group plans to increase machinery sales and equipment disposal efforts in FY2023 to enhance revenues and cash inflow[64]. - Investment in e-commerce will be increased to support the growth of the trading business, aiming to generate more funds for advanced machines and new products[64]. - The Group aims to provide comprehensive solutions for customers in equipment usage, addressing both leasing and related services as well as environmental concerns in FY2023[39]. Corporate Governance and Share Options - The Group does not recommend the payment of a final dividend for the year ended 31 March 2022[40]. - The Share Option Scheme was adopted on 17 March 2016, but no share options have been granted or agreed to be granted up to 31 March 2022[151]. - The maximum number of shares available for issue under the Share Option Scheme must not exceed 30% of the issued share capital of the Company at any time[162]. - The Share Option Scheme aims to motivate participants to optimize their performance for the benefit of the Group[156]. Employee and Staffing - As of March 31, 2022, the Group employed a total of 130 employees, an increase from 116 employees in the previous year[199]. - For the year ended March 31, 2022, the staff costs amounted to approximately HK$51.3 million, compared to approximately HK$45.9 million in FY2021, reflecting an increase of about 9.3%[199]. - The remuneration policy for employees is determined by the Board based on performance, qualifications, competence, and job nature[199].

tlik AP RENTALS HOLDINGS LIMITED 亞積邦租賃控股有限公司* (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) Stock Code 股份代號：1496 2021/22 Interim Report 中期報告 BOOSPS AP RENTALS 图 2170 8638 * For identification purposes only 僅供議別 CONTENTS 目錄 02 Corporate Information 公司資料 04 condensed consolidated statement of Profit or loss and other comprehensive income 簡明綜合損益及其他全面收益表 05 condensed consolldated statement of Financial Position 簡明綜合財務狀況表 07 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 簡明綜 ...

Financial Performance - AP Rentals reported a significant increase in revenue, achieving a total of HKD 800 million, representing a growth of 15% year-over-year[6]. - For FY2021, the Group reported total revenue of approximately HK$148.5 million, an increase of approximately 1.8% compared to HK$145.8 million in FY2020[21][23]. - The Group's gross profit for FY2021 was approximately HK$18.5 million, an increase of approximately 14.9% from approximately HK$16.1 million in FY2020, with a gross profit margin rising to approximately 12.5% from 11.0%[42]. - The Group recorded a loss attributable to owners of the Company of approximately HK$5.7 million in FY2021, a significant reduction from approximately HK$19.7 million in FY2020[44]. - Basic loss per share attributable to owners of the Company for FY2021 was HK(0.66) cent, compared to HK(2.28) cents for FY2020[45]. - The Group's financial performance indicates a positive trend with improved gross profit and reduced losses, suggesting potential for future growth[42]. Market Outlook and Strategy - Future outlook indicates a projected revenue growth of 10% for the next fiscal year, driven by increased demand for construction and event equipment rentals[6]. - The company plans to enter new markets in Southeast Asia, targeting a market share of 5% within the first two years of operation[6]. - The Group expects improved performance in FY2022 due to anticipated economic growth in PRC and increased construction investments in 5G networks and data centers[25][30]. - The Group expects gradual improvement in leasing-related services in FY2022, despite ongoing impacts from the COVID-19 pandemic[56]. - The Group anticipates an increase in leasing demand in the Central Kowloon Route and machinery sales as lockdowns in Asian countries are lifted in FY2022[61]. Operational Efficiency and Investments - The company has invested HKD 30 million in technology upgrades to improve operational efficiency and customer service[6]. - The Group plans to continue investing in advanced machines and disposing of aged machines to maintain competitiveness and profitability in FY2022[34]. - The Group's cost of sales and services increased by approximately 0.2% to about HK$130.0 million in FY2021[68]. - Machinery hiring expenses decreased by approximately HK$16.5 million compared to FY2020, while depreciation costs increased by approximately HK$11.0 million due to increased investment in leasing machinery[68]. Customer and Market Demand - User data shows a 25% increase in customer inquiries, indicating strong market interest and potential for future contracts[6]. - In FY2021, the leasing income was primarily driven by demands from the Third Runway & Improvements and KTS Park, despite a poor overall market sentiment in the Hong Kong construction industry[50]. - The COVID-19 pandemic significantly impacted the operating days of customers' work sites, leading to a decline in leasing income for FY2021[50]. - The Group expects that the economy of the PRC will continue to improve in FY2022, leading to increased demand for construction machinery[61]. Sustainability and Corporate Responsibility - The management team emphasized a commitment to sustainability, with plans to introduce eco-friendly equipment options by the end of the fiscal year[6]. - The company has obtained the Quality Powered Mechanical Equipment (QPME) identification for most of its rental equipment, demonstrating a commitment to environmental sustainability[135]. - The company recognizes the importance of relationships with employees, customers, and suppliers for sustainable development and is committed to providing a fair and safe workplace[138]. - Charitable donations made by the Group during the year amounted to HK$500.0, compared to nil in FY2020[150]. Financial Stability and Capital Management - As of March 31, 2021, the Group had bank balances and cash equivalents of approximately HK$38.4 million, an increase from approximately HK$30.0 million as of March 31, 2020[85][88]. - The Group's gearing ratio was nil as of March 31, 2021, down from approximately 10.6% as of March 31, 2020, indicating improved financial stability[90][93]. - The Group plans to fund future operations and expansion primarily through cash generated from operations and borrowings[91]. - The total staff cost for FY2021 amounted to approximately HK$45.9 million, up from approximately HK$41.4 million in FY2020, primarily due to an increase in headcount of operators and annual salary review[101]. Employee Development and Training - The Group emphasizes employee training and development resources to keep staff updated on market and industry developments[141]. - The Group's technical staff participate in seminars to acquire product knowledge and skills necessary for their duties[102]. - The company provides competitive remuneration and benefits, along with career development opportunities based on merit and performance[138]. Risks and Challenges - The company faces potential risks including global economic recession, increased construction material costs, and adverse changes in government infrastructure spending[132]. - The construction industry in PRC continues to face challenges due to labor shortages and material supply disruptions caused by COVID-19, impacting leasing demand[25][30].

[Corporate Information](index=2&type=section&id=CORPORATE%20INFORMATION) This section provides key corporate details, including board composition, committee structures, and contact information [Board and Committees](index=3&type=section&id=2.1%20Board%20and%20Committees) This section lists the company's board members, including executive, non-executive, and independent non-executive directors, along with the composition and chairpersons of key committees such as audit, remuneration, nomination, and risk management - Board members include Executive Directors Lau Pong Sing (Chairman) and Chan Kit Mui, Non-executive Director Nakazawa Tomoyuki, and Independent Non-executive Directors Ho Chung Tai, Siu Chak Yu, and Li Bing Chi[6](index=6&type=chunk) - The Audit Committee is chaired by Li Bing Chi, the Remuneration Committee by Siu Chak Yu, the Nomination Committee by Lau Pong Sing, and the Risk Management Committee by Lau Pong Sing[6](index=6&type=chunk) [Company Details and Contacts](index=3&type=section&id=2.2%20Company%20Details%20and%20Contacts) This section provides the company's key administrative and contact information, including authorized representatives, company secretary, auditor, legal counsel, principal bankers, share registrar, registered office, head office, stock code, and company website - The Company Secretary is Wong Cheuk Man (HKICPA, ACCA), and the Auditor is Deloitte Touche Tohmatsu[6](index=6&type=chunk) - Principal bankers include Bank of China (Hong Kong) Limited and The Hongkong and Shanghai Banking Corporation Limited[8](index=8&type=chunk) - The company's stock code is **1496**, and its website is www.aprentalshk.com[8](index=8&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS%20AND%20OTHER%20COMPREHENSIVE%20INCOME) For the six months ended September 30, 2020, the Group's total revenue slightly increased, but loss before tax widened; however, loss for the period and total comprehensive expenses narrowed due to positive impacts from income tax credit and exchange differences Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended September 30) | Metric | 2020 (HK$ '000) | 2019 (HK$ '000) | | :--- | :--- | :--- | | Total Revenue | 68,183 | 67,140 | | Gross Profit | 7,543 | 7,423 | | Loss Before Tax | (6,321) | (6,128) | | Loss for the Period | (5,935) | (6,128) | | Total Comprehensive Expenses for the Period | (5,414) | (6,046) | | Basic Loss Per Share (HK Cents) | (0.69) | (0.71) | [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of September 30, 2020, the Group's non-current assets and liabilities decreased, current assets slightly increased, and current liabilities significantly reduced, resulting in a slight decrease in net assets (total equity) Key Data from Condensed Consolidated Statement of Financial Position (As of September 30 vs March 31) | Metric | Sep 30, 2020 (HK$ '000) | Mar 31, 2020 (HK$ '000) | | :--- | :--- | :--- | | Non-current Assets | 225,222 | 245,821 | | Current Assets | 100,430 | 99,088 | | Current Liabilities | 67,696 | 77,125 | | Non-current Liabilities | 42,614 | 47,029 | | Net Assets (Total Equity) | 215,342 | 220,755 | [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) This section details changes in the Group's equity components for the six months ended September 30, 2020, primarily reflecting the impact of loss for the period and exchange differences from translating overseas operations on total equity Key Data from Condensed Consolidated Statement of Changes in Equity (For the six months ended September 30) | Metric | Sep 30, 2020 (HK$ '000) | | :--- | :--- | | Total Equity at Beginning of Period (Apr 1, 2020) | 220,755 | | Loss for the Period | (5,935) | | Exchange Differences Arising from Translation of Overseas Operations | 522 | | Total Equity at End of Period (Sep 30, 2020) | 215,342 | - The merger reserve represents the difference between the Company's issued share capital and share premium and the issued share capital of AP Rentals Holdings Limited exchanged as a result of the 2015 reorganisation[24](index=24&type=chunk)[26](index=26&type=chunk) - In accordance with the Macau Commercial Code, a subsidiary registered in Macau is required to transfer not less than **25%** of its profit for each accounting period to a legal reserve until it reaches an amount equal to **half of its capital**[25](index=25&type=chunk)[27](index=27&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) For the six months ended September 30, 2020, the Group saw a significant increase in net cash generated from operating activities, reduced cash outflow from investing activities, and increased cash outflow from financing activities, ultimately leading to a net increase in cash and cash equivalents Key Data from Condensed Consolidated Statement of Cash Flows (For the six months ended September 30) | Metric | 2020 (HK$ '000) | 2019 (HK$ '000) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 27,066 | 14,010 | | Net Cash Used in Investing Activities | (11,623) | (25,024) | | Net Cash Used in Financing Activities | (14,026) | 11,045 | | Net Increase/(Decrease) in Cash and Cash Equivalents | 1,417 | (5,969) | | Cash and Cash Equivalents at End of Period | 32,507 | 45,960 | - Net cash generated from operating activities significantly increased year-on-year, primarily due to improved receivables collection and stringent cost control[32](index=32&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk) - Net cash used in investing activities decreased, mainly due to reduced expenditure on the purchase of property, plant and equipment[32](index=32&type=chunk) - Net cash used in financing activities increased, primarily due to repayment of borrowings and lease payments[32](index=32&type=chunk) [Notes to Condensed Consolidated Interim Financial Information](index=11&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20INTERIM%20FINANCIAL%20INFORMATION) This section provides detailed notes to the condensed consolidated interim financial information, covering accounting policies, revenue breakdown, segment data, and other financial disclosures [Basis of Preparation](index=11&type=section&id=6.1%20BASIS%20OF%20PREPARATION) This condensed consolidated interim financial information is prepared in accordance with HKAS 34 and Appendix 16 of the Listing Rules, consistent with the accounting policies and methods used in the annual financial statements for the year ended March 31, 2020, with only an adjustment to the recognition of government grants - The financial information complies with Hong Kong Accounting Standard (HKAS) 34 Interim Financial Reporting and the disclosure requirements of Appendix 16 to the Listing Rules of The Stock Exchange of Hong Kong Limited[35](index=35&type=chunk)[36](index=36&type=chunk) - Government grants are recognized at fair value when there is reasonable assurance that they will be received and all attached conditions will be complied with, and are systematically recognized as other income over the periods in which the related costs are expensed[37](index=37&type=chunk)[39](index=39&type=chunk) [Principal Accounting Policies](index=11&type=section&id=6.2%20PRINCIPAL%20ACCOUNTING%20POLICIES) This condensed consolidated financial statement is primarily prepared on a historical cost basis, with certain financial instruments measured at fair value; revisions to HKFRSs first applied this period had no significant impact on the Group's financial position or performance - The condensed consolidated financial statements are prepared on the historical cost basis, except for certain financial instruments that are measured at fair value[35](index=35&type=chunk)[39](index=39&type=chunk) - The adoption of amendments to the Conceptual Framework for Financial Reporting and amendments to HKFRSs in the current and prior periods had no significant impact on the Group's financial position or performance[45](index=45&type=chunk)[46](index=46&type=chunk) [Revenue](index=13&type=section&id=6.3%20REVENUE) The Group's total revenue for the six months ended September 30, 2020, was **HK$68.183 million**, a **1.55% increase** year-on-year, primarily from machinery rental, analyzed by business activity (trading and rental) and geographical market (Hong Kong, Macau, Singapore, and China) Composition of Total Revenue (For the six months ended September 30) | Revenue Source | 2020 (HK$ '000) | 2019 (HK$ '000) | | :--- | :--- | :--- | | Goods and Services | 16,939 | 16,466 | | Machinery Rental | 51,244 | 50,674 | | **Total Revenue** | **68,183** | **67,140** | Revenue by Business Activity (For the six months ended September 30, 2020) | Business Activity | Trading (HK$ '000) | Rental (HK$ '000) | | :--- | :--- | :--- | | Machinery Rental | - | 51,244 | | Sales of Machinery and Parts | 8,869 | - | | Operator Service Income | 24 | - | | Other Service Income | - | 8,046 | | **Total** | **8,893** | **59,290** | Revenue by Geographical Market (For the six months ended September 30, 2020) | Geographical Market | Trading (HK$ '000) | Rental (HK$ '000) | | :--- | :--- | :--- | | Hong Kong | 8,871 | 55,619 | | Macau | 14 | 3,663 | | Singapore | - | - | | China | - | 8 | | **Total** | **8,893** | **59,290** | [Segment Information](index=15&type=section&id=6.4%20SEGMENT%20INFORMATION) The Group classifies its operations into two reportable segments, rental and trading, under HKFRS 8; the rental segment primarily includes machinery rental and related services, while the trading segment involves sales of machinery and parts, with segment results presented before unallocated interest income, sundry income, corporate income, and central administrative expenses Segment Revenue and Results (For the six months ended September 30) | Metric | Rental (HK$ '000) | Trading (HK$ '000) | Total (HK$ '000) | | :--- | :--- | :--- | :--- | | **2020:** | | | | | Revenue from External Customers | 59,290 | 8,893 | 68,183 | | Segment Results | 1,720 | 755 | 2,475 | | **2019:** | | | | | Revenue from External Customers | 58,118 | 9,022 | 67,140 | | Segment Results | 8,000 | 247 | 8,247 | - Unallocated income includes government grants received by the Group in response to the COVID-19 pandemic[89](index=89&type=chunk)[93](index=93&type=chunk) Geographical Information (External Revenue, As of September 30) | Region | 2020 (HK$ '000) | 2019 (HK$ '000) | | :--- | :--- | :--- | | Hong Kong | 64,490 | 61,980 | | Macau | 3,184 | 4,419 | | Singapore | 144 | 741 | | China | 365 | - | | **Total** | **68,183** | **67,140** | Geographical Information (Non-current Assets, As of September 30) | Region | Sep 30, 2020 (HK$ '000) | Mar 31, 2020 (HK$ '000) | | :--- | :--- | :--- | | Hong Kong | 200,792 | 211,198 | | Macau | 5,761 | 8,107 | | Singapore | 5,172 | 5,631 | | China | 10,578 | 18,002 | | **Total** | **222,303** | **242,938** | [Other Income](index=19&type=section&id=6.5%20OTHER%20INCOME) For the six months ended September 30, 2020, the Group's other income significantly increased by **286.2%** to **HK$4.530 million**, primarily due to **HK$3.917 million** in government grants from Hong Kong, Macau, and Singapore to combat the COVID-19 pandemic Other Income (For the six months ended September 30) | Income Source | 2020 (HK$ '000) | 2019 (HK$ '000) | | :--- | :--- | :--- | | Interest Income from Bank Deposits | 3 | 99 | | Interest Income from Life Insurance Policy Deposits | 50 | 47 | | Government Grants | 3,917 | - | | Storage Income | 429 | 851 | | Sundry Income | 131 | 176 | | **Total** | **4,530** | **1,173** | - Government grants refer to wage subsidies provided by the Hong Kong, Macau, and Singapore governments to support employment and assist businesses through the financial difficulties caused by the COVID-19 pandemic[109](index=109&type=chunk)[110](index=110&type=chunk) [Other Gains and Losses](index=19&type=section&id=6.6%20OTHER%20GAINS%20AND%20LOSSES) For the six months ended September 30, 2020, the Group recorded net other gains and losses of **HK$3.745 million**, a **22.4% increase** year-on-year, primarily driven by exchange gains and gains on disposal of property, plant and equipment Other Gains and Losses (For the six months ended September 30) | Item | 2020 (HK$ '000) | 2019 (HK$ '000) | | :--- | :--- | :--- | | Net Exchange (Loss) Gain | 354 | (234) | | Gain on Disposal of Property, Plant and Equipment | 3,354 | 3,293 | | Gain on Lease Termination | 37 | - | | **Total** | **3,745** | **3,059** | [Finance Costs](index=20&type=section&id=6.7%20FINANCE%20COSTS) For the six months ended September 30, 2020, the Group's finance costs increased to **HK$1.032 million**, primarily due to higher interest on borrowings, lease liabilities, and imputed interest on interest-bearing trade payables and related company loans Finance Costs (For the six months ended September 30) | Item | 2020 (HK$ '000) | 2019 (HK$ '000) | | :--- | :--- | :--- | | Interest on Borrowings | 439 | 188 | | Interest on Finance Leases | - | 164 | | Interest on Lease Liabilities | 137 | 49 | | Interest on Interest-bearing Trade Payables | 369 | - | | Imputed Interest on Loans from a Related Company | 87 | - | | **Total** | **1,032** | **401** | [Income Tax Credit](index=20&type=section&id=6.8%20INCOME%20TAX%20CREDIT) For the six months ended September 30, 2020, the Group recorded an income tax credit of **HK$386 thousand**, primarily from deferred tax, with zero current tax provision in Hong Kong, Macau, and Singapore due to no taxable profits in the respective periods Income Tax Credit (For the six months ended September 30) | Item | 2020 (HK$ '000) | 2019 (HK$ '000) | | :--- | :--- | :--- | | Current Tax | - | - | | Deferred Tax | 386 | - | | **Total** | **386** | **-** | - Hong Kong profits tax rate is **16.5%**, with a **8.25%** tax rate for the first **HK$2 million** of assessable profits[126](index=126&type=chunk) - Singapore subsidiaries are subject to an income tax rate of **17%**, while Macau subsidiaries are subject to a complementary income tax rate of **12%** on profits exceeding **MOP600,000**[126](index=126&type=chunk) - PRC subsidiaries are subject to enterprise income tax at a rate of **25%**[126](index=126&type=chunk) [Loss for the Period](index=22&type=section&id=6.9%20LOSS%20FOR%20THE%20PERIOD) For the six months ended September 30, 2020, the Group's loss for the period was **HK$5.935 million**, primarily impacted by expenses such as total staff costs, depreciation, and cost of inventories Items Deducted in Calculating Loss for the Period (For the six months ended September 30) | Item | 2020 (HK$ '000) | 2019 (HK$ '000) | | :--- | :--- | :--- | | Directors' Emoluments | 3,371 | 3,355 | | Other Staff Costs | 18,298 | 15,570 | | **Total Staff Costs** | **21,669** | **18,925** | | Auditor's Remuneration | 853 | 908 | | Cost of Inventories Recognized as Expense | 6,457 | 5,480 | | Depreciation of Property, Plant and Equipment | 33,552 | 27,144 | | Depreciation of Right-of-use Assets | 1,468 | 512 | [Loss Per Share](index=23&type=section&id=6.10%20LOSS%20PER%20SHARE) For the six months ended September 30, 2020, basic loss per share attributable to owners of the Company was **(0.69) HK Cents**, narrowing from the prior year, with no diluted loss per share presented due to the absence of potential ordinary shares Loss Per Share (For the six months ended September 30) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (HK$ '000) | (5,935) | (6,128) | | Weighted Average Number of Ordinary Shares | 864,000,000 | 864,000,000 | | Basic Loss Per Share (HK Cents) | (0.69) | (0.71) | - Diluted loss per share for both periods is not presented as there were no potential ordinary shares in issue[136](index=136&type=chunk)[138](index=138&type=chunk) [Property, Plant and Equipment](index=24&type=section&id=6.11%20PROPERTY,%20PLANT%20AND%20EQUIPMENT) As of September 30, 2020, the Group's carrying amount of property, plant and equipment decreased to **HK$214.434 million**, primarily impacted by depreciation and impairment losses due to falling rental prices in China, despite additions and transfers from inventories Movement in Carrying Amount of Property, Plant and Equipment (For the six months ended September 30) | Item | Sep 30, 2020 (HK$ '000) | Apr 1, 2020 (HK$ '000) | | :--- | :--- | :--- | | Carrying Amount at Beginning of Period | 234,643 | 234,643 | | Additions | 18,699 | 18,699 | | Transfers from Inventories | 4,971 | 4,971 | | Depreciation | (33,552) | (33,552) | | Impairment Loss | (6,236) | (6,236) | | Disposals/Write-offs | (4,882) | (4,882) | | Exchange Adjustments | 791 | 791 | | **Carrying Amount at End of Period** | **214,434** | **214,434** | - The impairment loss recognized for machinery and equipment was primarily due to a significant decline in rental prices for machinery in China caused by the COVID-19 outbreak[142](index=142&type=chunk)[215](index=215&type=chunk) [Trade and Other Receivables, Deposits and Prepayments](index=25&type=section&id=6.12%20TRADE%20AND%20OTHER%20RECEIVABLES,%20DEPOSITS%20AND%20PREPAYMENTS) As of September 30, 2020, the Group's total trade and other receivables, deposits, and prepayments amounted to **HK$41.217 million**, a decrease from March 31, 2020, with a notable reduction in trade receivables from customer contracts after deducting credit loss allowance Trade and Other Receivables, Deposits and Prepayments (As of September 30) | Item | Sep 30, 2020 (HK$ '000) | Mar 31, 2020 (HK$ '000) | | :--- | :--- | :--- | | Lease Receivables (Net of Allowance for Credit Losses) | 32,285 | 31,996 | | Trade Receivables from Customer Contracts (Net of Allowance for Credit Losses) | 2,138 | 4,483 | | Other Receivables | 2,540 | 50 | | Recoverable VAT | 1,249 | 1,169 | | Lease Deposits Paid | 865 | 1,052 | | Other Deposits and Prepayments | 2,140 | 5,783 | | **Total** | **41,217** | **44,533** | - The Group grants an average credit period of **0 to 75 days** to its trade customers and regularly assesses their credit quality[154](index=154&type=chunk)[155](index=155&type=chunk) Ageing Analysis of Lease Receivables and Trade Receivables (As of September 30) | Ageing | Sep 30, 2020 (HK$ '000) | Mar 31, 2020 (HK$ '000) | | :--- | :--- | :--- | | Within 30 days | 14,784 | 8,656 | | 31 to 60 days | 3,462 | 14,792 | | 61 to 90 days | 6,895 | 2,506 | | 91 to 180 days | 4,354 | 6,318 | | Over 180 days | 4,928 | 4,207 | | **Total** | **34,423** | **36,479** | [Pledged Bank Deposit/Bank Balances and Cash](index=26&type=section&id=6.13%20PLEDGED%20BANK%20DEPOSIT/BANK%20BALANCES%20AND%20CASH) As of September 30, 2020, pledged bank deposits bore interest at a fixed annual rate of **0.01%**, while bank balances bore interest at a market annual rate of **0.001%** - As of September 30, 2020, pledged bank deposits bore interest at a fixed annual rate of **0.01%** (March 31, 2020: **0.05%** per annum)[157](index=157&type=chunk)[158](index=158&type=chunk) - As of September 30, 2020, bank balances bore interest at market annual rates of **0.001%** (March 31, 2020: **0.01%** per annum)[157](index=157&type=chunk)[158](index=158&type=chunk) [Trade and Other Payables and Accrued Charges](index=27&type=section&id=6.14%20TRADE%20AND%20OTHER%20PAYABLES%20AND%20ACCRUED%20CHARGES) As of September 30, 2020, the Group's total trade and other payables and accrued charges amounted to **HK$44.490 million**, a decrease from March 31, 2020, with the ageing analysis of trade payables showing a significant increase in amounts over **180 days** Trade and Other Payables and Accrued Charges (As of September 30) | Item | Sep 30, 2020 (HK$ '000) | Mar 31, 2020 (HK$ '000) | | :--- | :--- | :--- | | Trade Payables | 32,980 | 37,177 | | Accrued Expenses | 8,768 | 9,560 | | Other Payables | 2,742 | 2,956 | | **Total** | **44,490** | **49,693** | - Trade payables include installment payments due to a subsidiary of a shareholder of the Company and trade payables due to a shareholder of the Company, with a credit period of **90 days**[164](index=164&type=chunk) Ageing Analysis of Trade Payables (As of September 30) | Ageing | Sep 30, 2020 (HK$ '000) | Mar 31, 2020 (HK$ '000) | | :--- | :--- | :--- | | Within 30 days | 1,463 | 20,818 | | 31 to 60 days | 4,009 | 5,045 | | 61 to 90 days | 197 | 499 | | 91 to 180 days | 9,830 | 9,505 | | Over 180 days | 17,481 | 1,310 | | **Total** | **32,980** | **37,177** | [Issued Capital](index=29&type=section&id=6.15%20ISSUED%20CAPITAL) As of September 30, 2020, the Company's authorized and issued share capital remained unchanged, with a total of **864,000,000** ordinary shares issued at a par value of **HK$0.001** per share - As of September 30, 2020, the issued share capital comprised **864,000,000** shares with a par value of **HK$0.001** each, totaling **HK$864 thousand**[181](index=181&type=chunk) [Loans from a Related Company](index=29&type=section&id=6.16%20LOANS%20FROM%20A%20RELATED%20COMPANY) Loans from a related company are unsecured, bear an effective annual interest rate of **4.07%**, with portions due for repayment in August and October 2021 - Loans from a related company are unsecured and bear an effective annual interest rate of **4.07%**[183](index=183&type=chunk) - Portions of the loans (approximately **HK$0.2 million** and **HK$2.7 million**) are repayable in August 2021 and October 2021, respectively[183](index=183&type=chunk) [Borrowings](index=30&type=section&id=6.17%20BORROWINGS) As of September 30, 2020, the Group's total borrowings amounted to **HK$16.454 million**, primarily secured, with fixed-rate borrowings bearing annual interest rates ranging from **2.05% to 2.35%** and floating-rate borrowings at **1.6%** Composition of Borrowings (As of September 30) | Type | Sep 30, 2020 (HK$ '000) | Mar 31, 2020 (HK$ '000) | | :--- | :--- | :--- | | Secured Borrowings | 16,454 | 23,164 | | Unsecured Borrowings | - | - | | **Total** | **16,454** | **23,164** | - Fixed-rate borrowings bear annual interest rates ranging from **2.05% to 2.35%**[193](index=193&type=chunk)[195](index=195&type=chunk) - Floating-rate borrowings bear an annual interest rate of **1.6%**[199](index=199&type=chunk) [Related Party Disclosures](index=32&type=section&id=6.18%20RELATED%20PARTY%20DISCLOSURES) The Group engaged in various transactions with related parties in which certain directors had beneficial interests during both periods, including interest expenses, rental expenses, and purchases of property, plant and equipment Related Party Transactions (For the six months ended September 30) | Transaction Type | 2020 (HK$ '000) | 2019 (HK$ '000) | | :--- | :--- | :--- | | Interest Expense (Related Company) | 369 | - | | Rental Expenses (Shareholder's Subsidiary) | 445 | 8,110 | | Purchase of Property, Plant and Equipment (Shareholder's Subsidiary) | 2,045 | 1,971 | | Purchases (Shareholder) | 2,621 | 3,900 | | Storage Income (Shareholder's Subsidiary) | 429 | 851 | [Operating Lease Commitments](index=33&type=section&id=6.19%20OPERATING%20LEASE%20COMMITMENTS) As a lessor, the Group generated approximately **HK$51.244 million** in revenue from machinery rentals for the six months ended September 30, 2020, with future minimum lease payments under non-cancellable operating leases contracted with customers amounting to **HK$5.533 million** within one year as of period-end - During the period, income generated from machinery rentals was approximately **HK$51,244 thousand**[207](index=207&type=chunk)[208](index=208&type=chunk) Future Minimum Lease Payments (As of September 30) | Period | Sep 30, 2020 (HK$ '000) | Mar 31, 2020 (HK$ '000) | | :--- | :--- | :--- | | Within one year | 5,533 | 904 | [Management Discussion and Analysis](index=34&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) This section provides management's perspective on the Group's operational and financial performance, including business overview, outlook, and a detailed financial review [Group Overview](index=34&type=section&id=7.1%20GROUP%20OVERVIEW) For the six months ended September 30, 2020 (1H2021), the Group recorded total comprehensive expenses of approximately **HK$5.4 million**, narrowing from the prior year, driven by reversal of impairment loss on receivables, stringent cost control, and government subsidies, despite impairment loss on machinery and equipment in China due to the pandemic, with both total revenue and gross profit showing slight growth - In 1H2021, the Group recorded a loss and total comprehensive expenses of approximately **HK$5.4 million**, narrowing from approximately **HK$6.0 million** in 1H2020[214](index=214&type=chunk)[219](index=219&type=chunk) - Key influencing factors included: an impairment loss on machinery and equipment of approximately **HK$6.2 million** for AP Rentals Shanghai (due to falling rental prices in China), a reversal of impairment loss on receivables of approximately **HK$0.9 million**, a reduction in administrative expenses of approximately **HK$1.4 million**, and government grants of approximately **HK$3.9 million**[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[219](index=219&type=chunk) - Total revenue in 1H2021 was approximately **HK$68.2 million**, a year-on-year increase of **1.6%**; gross profit was approximately **HK$7.5 million**, also up **1.6%**, with gross profit margin maintained at approximately **11.1%**[218](index=218&type=chunk)[220](index=220&type=chunk) - Loss attributable to owners of the Company was approximately **HK$5.9 million**, with basic loss per share of **(0.69) HK Cents**[222](index=222&type=chunk)[225](index=225&type=chunk) [Business Overview](index=35&type=section&id=7.2%20BUSINESS%20OVERVIEW) In 1H2021, Hong Kong operations benefited from major project demand and SSME generator business growth, leading to a significant increase in operator service income; however, Macau, Singapore, and China markets were severely impacted by COVID-19 lockdowns, labor shortages, price competition, and collection issues, resulting in revenue decline and impairment - Hong Kong operations: Significant demand from the Hong Kong International Airport Third Runway and Kai Tak Sports Park became major rental income sources; the Automatic Power System (APS) generator business of Smart System Mobile Energy (SSME) continued to generate revenue and profit[223](index=223&type=chunk)[226](index=226&type=chunk) - Operator service income significantly increased by promoting the rental of spider cranes, excavators, and cranes through providing more operators[223](index=223&type=chunk)[226](index=226&type=chunk) - Macau operations: Severely hit by the pandemic, AP Rentals Macau's revenue significantly declined compared to 1H2020[224](index=224&type=chunk)[227](index=227&type=chunk) - Singapore operations: Due to COVID-19 lockdowns and labor shortages, AP Singapore had no revenue from July to August 2020[230](index=230&type=chunk) - China operations: Weak demand for construction machinery rental and intense price competition; labor shortages and disruptions in upstream material supply led to project delays and increased costs, resulting in decreased rental demand and prices; worsening receivables collection issues prompted AP Rentals Shanghai to lower rental prices to enhance competitiveness[231](index=231&type=chunk)[232](index=232&type=chunk) [Outlook](index=37&type=section&id=7.3%20OUTLOOK) Facing global lockdown uncertainties, the Group will focus on maximizing revenue in Hong Kong, Macau, and China; Hong Kong operations will target SSME and major projects, Macau rental demand is expected to improve with eased restrictions, and China operations will boost rental income through price adjustments and seizing Greater Bay Area opportunities, while Singapore aims for cost minimization and increased overseas machinery trade and disposal gains post-lockdown - The Group will strive to maximize revenue in Hong Kong, Macau, and China in the coming months, as the impact of the pandemic on these key markets appears limited[234](index=234&type=chunk)[238](index=238&type=chunk) - Hong Kong: The rental business will continue to focus on Smart System Mobile Energy (SSME) operations and demand from major projects like the Third Runway and Kai Tak Sports Park; machinery sales have orders for the Central Kowloon Route awaiting delivery[235](index=235&type=chunk)[238](index=238&type=chunk) - Macau: Rental demand is expected to gradually improve as restrictions on Chinese visitors are further eased in the latter half of 2021[236](index=236&type=chunk)[238](index=238&type=chunk) - China: The economy is expected to continue improving, and by lowering rental prices for machinery, AP Rentals Shanghai's rental income will see some improvement; the Group will consider leveraging the macroeconomic momentum and opportunities arising from the Chinese government's national policy to develop the Greater Bay Area[237](index=237&type=chunk)[238](index=238&type=chunk) - Singapore: The Group will endeavor to minimize AP Singapore's operating costs to maintain its most negligible financial impact on the Group[237](index=237&type=chunk)[239](index=239&type=chunk) - The Group is prepared to increase its revenue from overseas machinery trade and disposals once global lockdowns are further lifted in the latter half of 2021[237](index=237&type=chunk)[239](index=239&type=chunk) [Financial Review](index=38&type=section&id=7.4%20FINANCIAL%20REVIEW) This section provides a detailed review of the Group's financial performance for the six months ended September 30, 2020, covering key financial metrics and management aspects such as revenue, costs, profit, various expenses, capital expenditure, liquidity, foreign exchange risk, contingent liabilities, significant investments, capital commitments, pledge of assets, and human resources [Revenue](index=38&type=section&id=7.4.1%20Revenue) Total revenue in 1H2021 grew **1.6%** to **HK$68.2 million**; machinery rental remained the primary income source, operator service income surged **82.1%**, while other service income and sales of machinery and parts slightly decreased - Total revenue in 1H2021 was approximately **HK$68.2 million**, an increase of approximately **1.6%** compared to 1H2020[241](index=241&type=chunk)[245](index=245&type=chunk) Revenue Composition and Changes (For the six months ended September 30) | Revenue Source | 1H2021 (HK$ '000) | 1H2020 (HK$ '000) | Change (%) | % of Total Revenue (2021) | | :--- | :--- | :--- | :--- | :--- | | Machinery Rental | 51,200 | 50,700 | +1.0% | 75.2% | | Operator Service Income | 5,300 | 2,900 | +82.1% | 7.7% | | Other Service Income | 2,800 | 4,600 | -39.1% | 4.1% | | Sales of Machinery and Parts | 8,900 | 9,000 | -1.2% | 13.0% | - Operator service income significantly increased, mainly due to the Group's need to boost revenue from renting certain products (i.e., spider cranes, cranes, and excavators) by providing operators to sustain rental income[244](index=244&type=chunk)[246](index=246&type=chunk) - The decrease in other service income primarily stemmed from transportation services, partly due to a significant reduction in demand for event-related business caused by the pandemic[249](index=249&type=chunk) [Cost of Sales and Services](index=39&type=section&id=7.4.2%20Cost%20of%20Sales%20and%20Services) In 1H2021, cost of sales and services increased to **HK$60.6 million**, up **1.5%** year-on-year; machinery rental expenses decreased due to the termination of a cooperation agreement, but this was offset by higher depreciation costs from increased investment in rental machinery, increased operator staff costs, and higher machinery and parts costs from growth in machinery trading revenue - Cost of sales and services in 1H2021 was approximately **HK$60.6 million**, representing a year-on-year increase of approximately **1.5%**[249](index=249&type=chunk) - Machinery rental expenses decreased by approximately **HK$9.0 million**, primarily due to the termination of the cooperation agreement with Kanamoto Japan in June 2020[249](index=249&type=chunk)[251](index=251&type=chunk) - The Group increased its investment in rental machinery or transferred machinery inventories to rental machinery by approximately **HK$23.4 million**, leading to an increase in depreciation costs of approximately **HK$6.6 million**[251](index=251&type=chunk)[254](index=254&type=chunk) - Staff costs under cost of sales and services increased by approximately **HK$2.3 million**, mainly due to the increased number of operators required for promoting rental machinery (cranes, spider cranes, and excavators)[251](index=251&type=chunk)[254](index=254&type=chunk) - Cost of machinery and parts increased by approximately **17.8%**, primarily due to increased revenue from machinery trading in 1H2021[251](index=251&type=chunk)[254](index=254&type=chunk) [Gross Profit and Gross Profit Margin](index=40&type=section&id=7.4.3%20Gross%20Profit%20and%20Gross%20Profit%20Margin) In 1H2021, gross profit slightly increased by **1.6%** to **HK$7.5 million**, with the gross profit margin remaining unchanged at approximately **11.1%** - The Group's overall gross profit slightly increased by approximately **1.6%** from approximately **HK$7.4 million** in 1H2020 to approximately **HK$7.5 million** in 1H2021[252](index=252&type=chunk)[253](index=253&type=chunk) - The Group's gross profit margin remained unchanged at approximately **11.1%** in 1H2021 (1H2020: approximately **11.1%**)[253](index=253&type=chunk) [Other Income](index=40&type=section&id=7.4.4%20Other%20Income) In 1H2021, other income significantly increased by **286.2%** to **HK$4.5 million**, primarily due to approximately **HK$3.9 million** in government grants to support employment and assist businesses through financial difficulties caused by the COVID-19 pandemic - The Group recorded other income of approximately **HK$4.5 million** in 1H2021, an increase of approximately **286.2%** compared to 1H2020[253](index=253&type=chunk) - This increase was due to government grants amounting to approximately **HK$3.9 million**, which refer to wage subsidies provided by the Hong Kong, Macau, and Singapore governments to support employment and assist businesses through financial difficulties during the COVID-19 pandemic[253](index=253&type=chunk) [Other Gains and Losses](index=41&type=section&id=7.4.5%20Other%20Gains%20and%20Losses) In 1H2021, other gains and losses increased to **HK$3.7 million**, up **22.4%** year-on-year, primarily benefiting from exchange gains and reversal of impairment loss on receivables, though partially offset by impairment loss on AP Rentals Shanghai's machinery and equipment - Other gains and losses in 1H2021 were approximately **HK$3.7 million**, an increase of approximately **22.4%** compared to 1H2020[256](index=256&type=chunk)[257](index=257&type=chunk) - The Group recorded exchange gains of approximately **HK$0.4 million** in 1H2021, compared to exchange losses of approximately **HK$0.2 million** in 1H2020[256](index=256&type=chunk)[257](index=257&type=chunk) - A reversal of impairment loss on receivables of approximately **HK$0.9 million** was recognized in 1H2021 due to improved receivables conditions[258](index=258&type=chunk) - The Group recognized an impairment loss on machinery and equipment of approximately **HK$6.2 million** for AP Rentals Shanghai, attributed to a significant decline in rental prices for machinery in China[258](index=258&type=chunk) [Administrative Expenses](index=41&type=section&id=7.4.6%20Administrative%20Expenses) In 1H2021, administrative expenses decreased to **HK$15.5 million**, down **8.5%** year-on-year, primarily due to the Group's stringent control over administrative expenses and cost reductions, especially in AP Singapore - Administrative expenses in 1H2021 were approximately **HK$15.5 million**, a decrease of approximately **8.5%** compared to 1H2020[258](index=258&type=chunk) - The decrease in administrative expenses was primarily due to the Group's stringent control over administrative expenses and cost reductions, particularly in AP Singapore[258](index=258&type=chunk) [Selling and Distribution Expenses](index=42&type=section&id=7.4.7%20Selling%20and%20Distribution%20Expenses) In 1H2021, selling and distribution expenses decreased to **HK$0.3 million**, mainly because the Group used its own trucks for outbound transportation, reducing reliance on supplier trucks - Selling and distribution expenses in 1H2021 were approximately **HK$0.3 million**, a decrease compared to 1H2020[261](index=261&type=chunk)[263](index=263&type=chunk) - This decrease was primarily due to the Group using its own trucks instead of vendors' trucks, leading to reduced outbound transportation expenses[261](index=261&type=chunk)[263](index=263&type=chunk) [Finance Costs](index=42&type=section&id=7.4.8%20Finance%20Costs) In 1H2021, finance costs increased to **HK$1.0 million**, primarily due to interest paid on trade payables to Kanamoto Hong Kong for rental machinery purchased in March and June 2020 - Finance costs in 1H2021 were approximately **HK$1.0 million**, an increase compared to 1H2020[262](index=262&type=chunk) - This increase in interest was primarily due to interest paid on trade payables to Kanamoto Hong Kong, incurred from purchasing rental machinery from Kanamoto Hong Kong in March and June 2020[262](index=262&type=chunk) [Loss and Total Comprehensive Expenses for 1H2021](index=42&type=section&id=7.4.9%20Loss%20and%20Total%20Comprehensive%20Expenses%20for%201H2021) In 1H2021, loss attributable to owners of the Company was **HK$5.9 million** (loss ratio of **8.7%**), primarily due to impairment loss on AP Rentals Shanghai's machinery and equipment; total comprehensive expenses were **HK$5.4 million**, with exchange differences from overseas operations increasing due to RMB appreciation - Loss attributable to owners of the Company in 1H2021 was approximately **HK$5.9 million**, with a loss ratio of approximately **8.7%**[262](index=262&type=chunk) - The loss was primarily due to the recognition of an impairment loss on AP Rentals Shanghai's machinery and equipment[262](index=262&type=chunk) - Total comprehensive expenses in 1H2021 were approximately **HK$5.4 million**[262](index=262&type=chunk) - Exchange differences arising from overseas operations were approximately **HK$0.5 million**, mainly due to the appreciation of RMB[262](index=262&type=chunk) [Capital Expenditure](index=43&type=section&id=7.4.10%20Capital%20Expenditure) Total capital expenditure in 1H2021 amounted to **HK$23.7 million**, with **98.7%** allocated to expanding the Group's own rental machinery fleet, including machinery, trucks, and office equipment - Capital expenditure in 1H2021 primarily included expenses for machinery, trucks, and office equipment, totaling approximately **HK$23.7 million**[265](index=265&type=chunk)[266](index=266&type=chunk) - The majority of capital expenditure (approximately **98.7%**) was used to fund the expansion of the Group's self-owned rental machinery fleet[265](index=265&type=chunk)[266](index=266&type=chunk) [Liquidity and Financial Resources Review](index=43&type=section&id=7.4.11%20Liquidity%20and%20Financial%20Resources%20Review) As of September 30, 2020, the Group's bank balances and cash equivalents increased to **HK$32.5 million**, borrowings decreased to **HK$16.5 million**, and the gearing ratio significantly improved to **5.6%**; future operations and expansion plans will be primarily funded by cash flows from operating activities and borrowings - As of September 30, 2020, the Group had bank balances and cash equivalents of approximately **HK$32.5 million** (March 31, 2020: approximately **HK$30.0 million**)[267](index=267&type=chunk)[268](index=268&type=chunk) - Borrowings amounted to approximately **HK$16.5 million** (March 31, 2020: approximately **HK$23.2 million**)[267](index=267&type=chunk)[268](index=268&type=chunk) - Total bank facilities amounted to approximately **HK$50.9 million**, of which approximately **HK$30.1 million** was utilized and approximately **HK$20.8 million** remained unutilized[269](index=269&type=chunk) - As of September 30, 2020, the Group's gearing ratio was approximately **5.6%** (March 31, 2020: **10.6%**)[272](index=272&type=chunk)[273](index=273&type=chunk) - The Group expects to fund its future operations and expansion plans primarily through cash generated from operating activities and borrowings[272](index=272&type=chunk)[273](index=273&type=chunk) [Foreign Exchange Risk](index=44&type=section&id=7.4.12%20Foreign%20Exchange%20Risk) The Group faces foreign exchange risk as its transactions are denominated in multiple currencies including HKD, JPY, MOP, SGD, RMB, and USD; despite no formal hedging policy, the Group will continue to closely monitor currency movements and take proactive measures - The Group faces foreign exchange risk as certain transactions are denominated in currencies other than its functional currency (i.e., HKD)[274](index=274&type=chunk)[275](index=275&type=chunk) - The Group does not have a foreign exchange hedging policy; however, it will continue to closely monitor its exposure to currency fluctuations and take proactive measures[275](index=275&type=chunk) [Contingent Liabilities](index=45&type=section&id=7.4.13%20Contingent%20Liabilities) As of September 30, 2020, the Group had no significant contingent liabilities - As of September 30, 2020, the Group had no significant contingent liabilities[276](index=276&type=chunk) [Material Acquisitions and Disposals of Subsidiaries and Associated Companies and Joint Ventures](index=45&type=section&id=7.4.14%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Associated%20Companies%20and%20Joint%20Ventures) In 1H2021, the Group did not undertake any material acquisitions or disposals of subsidiaries or associated companies - There were no material acquisitions and disposals of subsidiaries and associated companies in 1H2021[276](index=276&type=chunk) [Significant Investments](index=45&type=section&id=7.4.15%20Significant%20Investments) As of September 30, 2020, the Group had no significant investments - As of September 30, 2020, the Group had no significant investments[276](index=276&type=chunk) [Capital Commitments](index=45&type=section&id=7.4.16%20Capital%20Commitments) As of September 30, 2020, the Group's capital commitments amounted to approximately **HK$1.4 million**, primarily for the acquisition of machinery and equipment, to be funded by internal resources and bank financing - As of September 30, 2020, the Group's capital commitments amounted to approximately **HK$1.4 million** (March 31, 2020: **HK$1.0 million**) for the acquisition of machinery and equipment[276](index=276&type=chunk) - The Group will fund the purchase of machinery and equipment through internal resources and bank financing[276](index=276&type=chunk) [Pledge of Assets](index=46&type=section&id=7.4.17%20Pledge%20of%20Assets) As of September 30, 2020, life insurance policy deposits, machinery, and bank deposits were pledged as security for the Group's borrowings of approximately **HK$16.5 million** - As of September 30, 2020, life insurance policy deposits of approximately **HK$2.8 million**, machinery of approximately **HK$9.4 million**, and bank deposits of approximately **HK$0.4 million** were pledged as security for the Group's borrowings of approximately **HK$16.5 million**[281](index=281&type=chunk)[283](index=283&type=chunk) [Segmental Information](index=46&type=section&id=7.4.18%20Segmental%20Information) The Group's segmental information is disclosed in Notes 3A and 3B to the condensed consolidated interim financial information - The Group's segmental information is disclosed in Notes 3A and 3B to the condensed consolidated interim financial information[281](index=281&type=chunk)[283](index=283&type=chunk) [Human Resources and Employees' Remuneration](index=46&type=section&id=7.4.19%20Human%20Resources%20and%20Employees'%20Remuneration) As of September 30, 2020, the Group had **123** employees, with total staff costs increasing to **HK$21.7 million**, primarily due to an increase in operators; the Group offers competitive remuneration and benefits, along with continuous training for technical staff - As of September 30, 2020, the Group had **123** employees (Hong Kong: **116**, Macau: **4**, Singapore: **3**)[282](index=282&type=chunk)[284](index=284&type=chunk) - Total staff costs in 1H2021 were approximately **HK$21.7 million**, primarily due to an increase in the number of operators[282](index=282&type=chunk)[284](index=284&type=chunk) - The Group provides medical insurance, provident fund contributions, and other benefits to its employees[282](index=282&type=chunk)[284](index=284&type=chunk) - The Group's technical staff attend seminars jointly organized by manufacturers and the Group, and participate in external training courses to acquire product knowledge and relevant certifications[286](index=286&type=chunk)[288](index=288&type=chunk) [Share Option Scheme](index=47&type=section&id=7.4.20%20Share%20Option%20Scheme) The Group adopted a share option scheme on March 17, 2016, as a long-term incentive, but as of September 30, 2020, no share options had been granted or agreed to be granted under the scheme - The Group adopted a share option scheme on March 17, 2016, aiming to attract and retain the most suitable personnel for the Group's development[287](index=287&type=chunk)[288](index=288&type=chunk) - No share options had been granted or agreed to be granted under the scheme from the date of its adoption up to September 30, 2020[287](index=287&type=chunk)[288](index=288&type=chunk) [Other Information](index=48&type=section&id=OTHER%20INFORMATION) This section covers additional information including directors' and substantial shareholders' interests, corporate governance practices, IPO proceeds usage, and other statutory disclosures [Directors' Interests and Short Positions in Shares, Underlying Shares and Debentures](index=48&type=section&id=8.1%20DIRECTORS'%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20SHARES,%20UNDERLYING%20SHARES%20AND%20DEBENTURES) As of September 30, 2020, Executive Directors Mr. Lau Pong Sing and Ms. Chan Kit Mui held significant long positions in the Company's shares, indirectly through controlled corporations and spouse interests Directors' Interests in the Company's Shares (As of September 30) | Name of Director | Nature of Interest | Number of Ordinary Shares | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Lau Pong Sing | Interest in Controlled Corporation | 363,528,000 (L) | 42.08% | | | Interest of Spouse | 284,471,352 (L) | 32.92% | | Ms. Chan Kit Mui | Interest in Controlled Corporation | 284,471,352 (L) | 32.92% | | | Interest of Spouse | 363,528,000 (L) | 42.08% | - Mr. Lau Pong Sing, being directly wholly-owned by New Club House International Holdings Limited, is deemed to have a like interest in the shares of the Company held by New Club House[294](index=294&type=chunk) - Ms. Chan Kit Mui, being directly wholly-owned by Great Club House Holdings Limited, is deemed to have a like interest in the shares of the Company held by Great Club House[295](index=295&type=chunk) - Mr. Lau Pong Sing and Ms. Chan Kit Mui are spouses, and under the SFO, they are deemed to have a like interest in the shares of the Company held by each other[294](index=294&type=chunk)[296](index=296&type=chunk)[299](index=299&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=49&type=section&id=8.2%20SUBSTANTIAL%20SHAREHOLDERS'%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20SHARES%20AND%20UNDERLYING%20SHARES) As of September 30, 2020, the Company's substantial shareholders (other than directors) included New Club House International Holdings Limited (**42.08%**), Great Club House Holdings Limited (**32.92%**), and Kanamoto Co., Ltd. (**7.50%**) Substantial Shareholders' Interests in the Company's Shares (As of September 30) | Name of Shareholder | Nature of Interest | Total Number of Ordinary Shares | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | | New Club House International Holdings Limited | Beneficial Interest | 363,528,000 (L) | 42.08% | | Great Club House Holdings Limited | Beneficial Interest | 284,471,352 (L) | 32.92% | | Kanamoto Co., Ltd. | Beneficial Interest | 64,800,648 (L) | 7.50% | - New Club House is directly wholly-owned by Mr. Lau Pong Sing, and Great Club House is directly wholly-owned by Ms. Chan Kit Mui[304](index=304&type=chunk) [Corporate Governance Practices](index=50&type=section&id=8.3%20CORPORATE%20GOVERNANCE%20PRACTICES) The Company generally complied with the Corporate Governance Code in 1H2021, except for a deviation from code provision A.2.1 where the roles of Chairman and Chief Executive Officer were combined in Mr. Lau Pong Sing, an arrangement the Board believes provides strong and consistent leadership and effectively promotes business development - The Company has complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules throughout 1H2021, save for a deviation from code provision A.2.1[304](index=304&type=chunk) - The roles of Chairman and Chief Executive Officer are combined and performed by Mr. Lau Pong Sing, an arrangement the Board believes provides strong and consistent leadership, effective resource utilization, and efficient planning, formulation, and implementation of the Company's business strategies[310](index=310&type=chunk) [Update on Directors' Information Under Rule 13.51B(1) of the Listing Rules](index=51&type=section&id=8.4%20UPDATE%20ON%20DIRECTORS'%20INFORMATION%20UNDER%20RULE%2013.51B(1)%20OF%20THE%20LISTING%20RULES) This section updates directors' current appointments, including Dr. Ho Chung Tai's appointment as an independent non-executive director of Tak Hung Group Holdings Limited, and Mr. Siu Chak Yu's roles as Vice Chairman and Board Member of the Guardianship Board of the Estate Agents Authority - Dr. Ho Chung Tai was appointed as an independent non-executive director of Tak Hung Group Holdings Limited (Stock Code: **368**) during the reporting period[312](index=312&type=chunk) - Mr. Siu Chak Yu currently serves as the Vice Chairman of the Estate Agents Authority and a Board Member of the Guardianship Board[313](index=313&type=chunk) [Compliance with the Model Code for Securities Transactions](index=51&type=section&id=8.5%20COMPLIANCE%20WITH%20THE%20MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix 10 to the Listing Rules, and all directors confirmed compliance with the code in 1H2021 - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules as its own code of conduct for directors' securities transactions[314](index=314&type=chunk) - All directors of the Company confirmed that they have complied with the standards set out in the Model Code throughout 1H2021[314](index=314&type=chunk) [Use of Net Proceeds from Initial Public Offer (the "IPO")](index=52&type=section&id=8.6%20USE%20OF%20NET%20PROCEEDS%20FROM%20INITIAL%20PUBLIC%20OFFER%20(THE%20%22IPO%22)) The Company's net proceeds from the IPO amounted to **HK$81.8 million**; as of September 30, 2020, **HK$75.277 million** was utilized and **HK$6.523 million** remained unutilized, primarily for developing a global positioning system for equipment monitoring and improving equipment maintenance facilities, with full utilization expected by March 31, 2022 - The net proceeds from the Company's initial public offer (after deducting underwriting fees and related expenses) amounted to approximately **HK$81.8 million**[315](index=315&type=chunk)[316](index=316&type=chunk) Use of Net Proceeds from Initial Public Offer (As of September 30) | Use | Net Proceeds from IPO (HK$ '000) | Utilized as of Sep 30, 2020 (HK$ '000) | Unutilized as of Sep 30, 2020 (HK$ '000) | Expected Timeline for Utilizing Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | Investment in Rental Equipment | 58,242 | 58,242 | - | - | | Development of Global Positioning System for Equipment Monitoring | 8,507 | 4,699 | 3,808 | By Mar 31, 2022 | | Investment in Transportation Equipment | 5,808 | 5,808 | - | - | | Improvement of Equipment Maintenance Facilities for the Group | 3,517 | 802 | 2,715 | By Mar 31, 2022 | | General Working Capital | 5,726 | 5,726 | - | - | | **Total** | **81,800** | **75,277** | **6,523** | | - The unutilized proceeds will be applied in the manner set out in the prospectus and may be subject to change based on future market developments[321](index=321&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=53&type=section&id=8.7%20PURCHASE,%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY'S%20LISTED%20SECURITIES) In 1H2021, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities in 1H2021[322](index=322&type=chunk)[325](index=325&type=chunk) [Review by Audit Committee](index=53&type=section&id=8.8%20REVIEW%20BY%20AUDIT%20COMMITTEE) The Company's Audit Committee has reviewed the Group's unaudited interim results for 1H2021 and the relevant accounting principles and practices adopted by the Group - The Company's Audit Committee has reviewed the Group's unaudited interim results for 1H2021 and the relevant accounting principles and practices adopted by the Group[323](index=323&type=chunk)[326](index=326&type=chunk) [Interim Dividend](index=53&type=section&id=8.9%20INTERIM%20DIVIDEND) The Board does not recommend the payment of an interim dividend for the year ending March 31, 2021 - The Board does not recommend the payment of an interim dividend for the year ending March 31, 2021[324](index=324&type=chunk)[326](index=326&type=chunk)

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Financial Performance - Total revenue for the period was HK$67,140,000, a decrease of 3% from HK$69,822,000 in the previous period[15] - Gross profit decreased to HK$7,423,000, down 40% from HK$12,466,000 year-on-year[15] - Loss before tax was HK$6,128,000 compared to a profit of HK$504,000 in the same period last year[15] - Loss for the period amounted to HK$6,128,000, compared to a profit of HK$271,000 in the previous year[15] - Other income decreased to HK$1,173,000, down 60% from HK$2,903,000 year-on-year[15] - Total comprehensive loss for the period was HK$6,046,000, compared to a comprehensive income of HK$195,000 in the previous year[15] - Basic loss per share was HK$0.7 cents, compared to earnings of HK$0.02 cents per share in the previous period[15] - The company reported a net loss of HK$6,128,000 for the period ended September 30, 2019, compared to a profit of HK$271,000 for the same period in 2018[22] - The Group reported a condensed consolidated loss before tax of HK$6,128,000 for the six months ended September 30, 2019[113] Assets and Liabilities - Non-current assets increased to HK$250,001,000 as of September 30, 2019, up from HK$224,138,000 as of March 31, 2019, representing an increase of approximately 11.5%[17] - Current assets decreased to HK$98,798,000 as of September 30, 2019, down from HK$107,918,000 as of March 31, 2019, a decline of about 8.3%[17] - Total liabilities increased to HK$80,389,000 as of September 30, 2019, compared to HK$64,587,000 as of March 31, 2019, an increase of about 24.4%[17] - The company’s total equity decreased to HK$234,499,000 as of September 30, 2019, down from HK$240,545,000 as of March 31, 2019, a decline of approximately 2.5%[20] - Cash and cash equivalents at the end of the period were HK$45,960,000, down from HK$56,207,000 at the end of the same period in 2018, a decrease of approximately 18.2%[28] - Trade and other payables increased to HK$52,566,000 as of September 30, 2019, from HK$45,391,000 as of March 31, 2019, an increase of about 15.3%[17] Cash Flow - Net cash from operating activities for the six months ended September 30, 2019, was HK$14,010,000, compared to HK$35,216,000 for the same period in 2018, a decrease of approximately 60.2%[28] - The company’s net cash used in investing activities was HK$25,024,000 for the six months ended September 30, 2019, compared to HK$27,072,000 for the same period in 2018, a decrease of about 7.6%[28] Accounting Policies and Standards - The Group's interim financial information for the six months ended 30 September 2019 has been prepared in accordance with HKFRS and Listing Rules[32] - The Group has applied HKFRS 16 for the first time, which supersedes HKAS 17 Leases, impacting the accounting policies[46] - The application of new HKFRSs includes changes in accounting policies related to leases and income tax treatments, which may affect reported amounts[41] - The Group's accounting policies for the interim period are consistent with those used in the preparation of the annual consolidated financial statements[33] - The Group's financial results for the six months ended September 30, 2019, reflect significant changes in accounting policies due to the application of HKFRS 16, impacting lease liabilities and right-of-use assets[49] Lease Accounting - Right-of-use assets are measured at cost, which includes the initial measurement of lease liabilities and any lease payments made before the commencement date, adjusted for any incentives received[51] - Lease liabilities are recognized at the present value of unpaid lease payments at the commencement date, using the incremental borrowing rate if the implicit interest rate is not determinable[54] - The Group applies the short-term lease recognition exemption for leases with a term of 12 months or less, recognizing lease payments as expenses on a straight-line basis[51] - The Group's accounting policies ensure that right-of-use assets are depreciated over the shorter of their estimated useful life or the lease term, unless ownership is reasonably certain at the end of the lease[51] - The Group's financial position reflects the impact of these accounting changes, presenting right-of-use assets as a separate line item on the consolidated statement of financial position[51] Business Combinations - Business combinations are accounted for using the acquisition method, with the consideration measured at fair value, including the fair values of assets transferred and liabilities incurred[84] - Goodwill is measured as the excess of the consideration transferred over the net amount of identifiable assets acquired and liabilities assumed at the acquisition date[89] - The Group's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date, with any resulting gain or loss recognized in profit or loss or other comprehensive income[94] - The Group's interim report indicates that the accounting for business combinations may involve provisional amounts subject to adjustments based on new information[99] Revenue Breakdown - The Group's total revenue for the six months ended September 30, 2019, was HK$67,140,000, with segment revenue from external customers amounting to HK$58,118,000 from leasing and HK$9,022,000 from trading[113] - The leasing of machinery generated revenue of HK$50,674,000, while sales of machinery and parts contributed HK$8,975,000[110] - The Group's geographical revenue breakdown shows HK$52,940,000 from Hong Kong and HK$4,404,000 from Macau[110] - The Group's revenue recognition timing indicates HK$8,975,000 was recognized at a point in time, while HK$7,411,000 was recognized over time[110] Staff and Expenses - For the six months ended September 30, 2019, the total staff costs amounted to HK$18,925,000, a decrease of 13.4% compared to HK$21,761,000 in the same period of 2018[145] - Administrative, selling and distribution expenses were HK$17,382,000, slightly down from HK$17,691,000 in the previous period[15] - The Group's unallocated expenses totaled HK$14,450,000, impacting overall profitability[113] Other Financial Information - The company recognized a gain on disposal of property, plant, and equipment amounting to HK$3,293,000 for the six months ended September 30, 2019, compared to HK$3,008,000 in 2018, reflecting an increase of 9.5%[131] - The depreciation of property, plant, and equipment for the period was HK$27,144,000, an increase from HK$24,091,000 in the previous year, representing a rise of 12.5%[125] - The company did not incur any current tax for Hong Kong Profits Tax for the six months ended September 30, 2019, consistent with the previous year[140] Acquisition Details - On September 20, 2019, the company acquired a 100% interest in AP Rentals (Shanghai) Limited for a consideration of HK$18.3 million[199] - The acquisition of AP Rentals (Shanghai) Limited is expected to enhance the company's presence in the construction equipment rental services market in China[200]

Financial Performance - For FY2019, the Group reported total revenue of approximately HK$146.1 million, a decrease of 35.1% compared to HK$225.3 million in FY2018[27]. - The net profit declined from approximately HK$21.1 million in FY2018 to a net loss of approximately HK$(2.5) million in FY2019[27]. - The Group's gross profit for FY2019 was approximately HK$26.2 million, representing a decrease of approximately 54.3% from HK$57.2 million in FY2018, with a gross profit margin of approximately 17.9%[57][60]. - Basic loss per share for FY2019 was HK(0.29) cent, compared to a basic profit per share of HK2.44 cents for FY2018[59][61]. - The Group recorded a loss attributable to owners of approximately HK$(2.5) million for FY2019, compared to a profit of approximately HK$21.1 million in FY2018, resulting in a loss margin of approximately (1.7)%[94]. - The overall market sentiment in the construction industry in Hong Kong deteriorated during FY2019, primarily due to the completion of major projects like the Express Rail and HZMB, which negatively impacted rental income[67]. - The Group's return on total assets was (0.8%), a decrease from 6.3% in 2018, showing a negative trend in asset utilization[120]. - The current ratio for 2019 was 1.67, down from 2.22 in 2018, suggesting a decline in short-term financial health[120]. Revenue Breakdown - The Group's revenue breakdown for FY2019 shows 91.5% from Macau, 0.7% from Singapore, and 7.8% from Hong Kong[41]. - Revenue from machinery and spare parts sales decreased by approximately 74.5% to about HK$10.5 million from approximately HK$41.1 million in FY2018[32]. - Revenue from machinery leasing decreased by approximately 22.4% to about HK$112 million from approximately HK$144.4 million in FY2018[32]. - Rental income from machinery accounted for approximately 76.7% of the Group's total revenue for FY2019, up from approximately 64.1% in FY2018[79]. - Revenue from equipment operating services decreased by approximately 57.1% to approximately HK$10.8 million for FY2019, accounting for approximately 7.4% of total revenue[82]. Expenses and Cost Management - The Group's administrative, selling, and distribution expenses decreased to approximately HK$36.3 million, down 11.2% from approximately HK$40.9 million in FY2018[27]. - The Group's cost of sales amounted to approximately HK$119.9 million for FY2019, representing a year-on-year decrease of approximately 28.6%[84]. - Machinery hiring expenses decreased by approximately 33.1% during FY2019 due to a higher owned fleet and decreased demand for machines[85]. - Sales costs for FY2019 were approximately HK$119.9 million, a decrease of about 28.6% from FY2018's HK$168.0 million, with machinery rental expenses down by approximately 33.1% and employee costs down by approximately 36.5%[87]. - The total staff cost for FY2019 was approximately HK$42.1 million, a decrease from approximately HK$57.0 million in FY2018, primarily due to reduced headcount[107]. Strategic Initiatives and Future Plans - The Group plans to explore opportunities to expand its business beyond Hong Kong while considering economic risks such as the potential Trade War[37]. - The Group aims to promote the APS in Smart System in Mobile Electricity (SSME) to enhance customer benefits in smart equipment management and environmental protection[37]. - The Group plans to expand its trading and rental solution business in Hong Kong and PRC while promoting environmental protection concepts[44]. - The Group is considering a shift in its business model in Singapore to reduce net losses in the coming months[75]. - The Group plans to fund future operations and expansion primarily through cash generated from operations and borrowings[100]. Acquisitions and Investments - AP Rentals (China) Limited acquired Ajax Pong (Shanghai) Limited to expand its business and diversify income streams geographically[38]. - The acquisition will allocate approximately 70% of Ajax Pong Shanghai's equipment fleet to leasing and the remaining to trading[38]. - The Group invested approximately HK$91.8 million in new advanced machines, including generators for the newly introduced Automatic Power System (APS)[32]. - Capital expenditures in FY2019 amounted to approximately HK$92.5 million, up from approximately HK$80.3 million in FY2018, primarily for expanding the Group's owned rental fleet of machinery[95]. Market Conditions and Challenges - The Group's performance in Macau declined but was not significant compared to Hong Kong, as the decline had started in 2017[36]. - The Group does not expect significant improvement in the business performance in Macau and Singapore in the coming year[38]. - Due to the Trade War, the Group has not made progress in expanding its business in Southeast Asian countries along the "Belt & Road" initiative[76]. - The Group recorded a decline in trading income and a decrease in leasing income due to the completion of major infrastructure projects[53]. Corporate Governance and Shareholder Information - The Board does not recommend the payment of a final dividend for the year ended 31 March 2019[46]. - The Group's charitable donations during the year amounted to HK$15,000, a decrease from HK$130,000 in FY2018[164]. - The largest customer contributed 3.8% of the total revenue for the year ended March 31, 2019[192]. - The aggregate revenue from the five largest customers accounted for 14.0% of total revenue[193]. - The largest supplier accounted for 26.1% of total purchases[193]. Environmental and Social Responsibility - The Group has obtained the Quality Powered Mechanical Equipment (QPME) identification for most of its rental equipment, contributing to environmental sustainability[143]. - The Group's environmental policy includes compliance with the NRMM regulations, with most applicable equipment obtaining NRMM labels[147]. - The Group is committed to establishing strong relationships with employees, customers, and suppliers to enhance sustainable development[146].