Financial Performance - The total revenue for the fiscal year ending March 31, 2024, was HKD 148,231,000, a decrease of 5.8% compared to HKD 157,048,000 for the previous year[2]. - Gross profit for the same period was HKD 34,146,000, down 21% from HKD 43,418,000 year-over-year[2]. - The net loss for the fiscal year was HKD 22,561,000, compared to a net loss of HKD 3,576,000 in the previous year, indicating a significant increase in losses[3]. - Basic loss per share for the year was HKD 4.91, compared to HKD 0.92 in the prior year, reflecting a substantial decline in profitability[2]. - Other income for the fiscal year was HKD 3,526,000, down from HKD 4,253,000 in the previous year, showing a decrease of approximately 17%[2]. - Total comprehensive loss for the year was HKD 25,056,000, compared to HKD 8,436,000 in the previous year, highlighting a worsening financial position[3]. - The operating loss before tax for the fiscal year ending March 31, 2024, was HKD 21,328,000, compared to a loss of HKD 6,516,000 in the previous year, indicating a significant increase in losses[20][22]. - The company reported a total of HKD 33,915,000 in segment profit for the fiscal year ending March 31, 2024, down from HKD 41,220,000 the previous year, reflecting a decrease of about 17.7%[20][22]. - The company reported a net loss of HKD 49,295,000 for the fiscal year ending March 31, 2024, compared to a net loss of HKD 48,800,000 in the previous year, indicating a slight increase in losses[20][22]. - The pre-tax loss for the year 2024 was HKD 18,674,000, compared to a loss of HKD 3,504,000 in 2023, indicating a significant increase in losses[37]. Revenue Breakdown - The revenue breakdown indicates that the group primarily engages in the manufacturing and trading of rock drilling tools and piling machines, contributing significantly to overall earnings[13]. - Revenue from external customers for the year ended March 31, 2024, was HKD 148,231,000, compared to HKD 157,048,000 for the previous year, representing a decrease of approximately 5.2%[28]. - Revenue from the sale of drilling tools accounted for approximately 92.1% of total revenue, down from 93.3% in the previous year[48]. - Revenue from the sale of piling machines and drilling equipment accounted for approximately 7.9% of total revenue, up from 6.7% in the previous year[49]. - Revenue from the Hong Kong market was approximately HKD 142.6 million, accounting for 96.2% of total revenue, down from HKD 149.5 million or 95.2% in the previous year[46]. - The group experienced a significant reduction in revenue from the Hong Kong market, which fell from HKD 149,450,000 to HKD 142,629,000, a decline of about 4.1%[28]. - Revenue from the Chinese market was reported at HKD 10,872,000, a notable increase from HKD 13,803,000 in the previous year, indicating growth potential in this region[28]. - Major customer A contributed HKD 34,590,000 to the group's revenue, while major customer C contributed HKD 35,518,000, indicating significant reliance on a few key clients[29]. - The top five customers accounted for approximately HKD 81.9 million in revenue, representing about 55.2% of total revenue, compared to 63.1% in the previous year[67]. Assets and Liabilities - Total assets decreased from HKD 187,164 million in 2023 to HKD 160,017 million in 2024, representing a decline of approximately 14.5%[5]. - Current assets increased from HKD 213,139 million in 2023 to HKD 186,074 million in 2024, a decrease of about 12.7%[5]. - Cash and cash equivalents decreased from HKD 65,969 million in 2023 to HKD 46,616 million in 2024, a decline of approximately 29.4%[5]. - Total liabilities decreased from HKD 43,941 million in 2023 to HKD 41,719 million in 2024, a reduction of about 5.0%[5]. - Shareholders' equity decreased from HKD 177,869 million in 2023 to HKD 152,813 million in 2024, representing a decline of approximately 14.1%[5]. - The company’s total current liabilities increased from HKD 9,263 million in 2023 to HKD 12,489 million in 2024, an increase of approximately 34.5%[5]. - The company’s total liabilities increased from HKD 114,085,000 in 2023 to HKD 113,630,000 in 2024, reflecting a slight decrease of about 0.4%[33]. - The asset-to-liability ratio of the group was approximately 21.9% as of March 31, 2024, a decrease from 22.4% as of March 31, 2023, primarily due to a reduction in bank and other borrowings[63]. Expenses and Costs - Administrative expenses increased to HKD 40,249,000 from HKD 39,772,000, indicating a rise of about 1.2%[2]. - Total employee costs decreased from HKD 29,673,000 in 2023 to HKD 26,441,000 in 2024, reflecting a reduction of approximately 7.5%[33]. - The company incurred financing costs of HKD 1,189,000 for the fiscal year ending March 31, 2024, compared to HKD 1,035,000 in the previous year, indicating an increase of about 14.9%[20][22]. - The company reported a significant increase in depreciation expenses from HKD 1,500,000 in 2023 to HKD 2,010,000 in 2024, an increase of about 34%[33]. - The depreciation of property and equipment amounted to HKD 667,000 for the year, highlighting ongoing capital expenditures[25]. Future Outlook and Strategy - The company plans to focus on new product development and market expansion strategies to improve future performance[2]. - The group is focusing on expanding its market presence and enhancing product offerings to mitigate revenue declines in key regions[28]. - The group continues to adopt a cautious outlook on the construction market and its business prospects in Hong Kong due to an uncertain economic environment[59]. - The group plans to continue expanding into international markets, expecting an increase in revenue from international customers[59]. Governance and Compliance - The company has established an Audit and Compliance Committee consisting of three independent non-executive directors[80]. - The company will review its corporate governance practices to ensure compliance with listing rules and protect shareholder interests[80]. - The company has not made any necessary amendments to its management structure as no suitable candidates have been identified[80]. - The annual general meeting will be held on August 14, 2024, with a suspension of share registration from August 8 to August 14, 2024[85]. Miscellaneous - The company did not declare or recommend any dividends for both reporting periods, maintaining a focus on reinvestment[38]. - There were no significant investments, acquisitions, or disposals of subsidiaries during the year[72]. - The company has not bought, sold, or redeemed any of its listed securities during the year[77]. - There are no significant events affecting the group after the reporting period[79]. - The group has no significant contingent liabilities as of March 31, 2024[68].

Financial Performance - The company reported a significant increase in revenue, with a year-on-year growth of 15%[9] - Revenue for the six months ended September 30, 2023, was HK$67,139,000, a decrease of 24% compared to HK$88,409,000 in the same period of 2022[17] - Gross profit for the same period was HK$16,494,000, down 32% from HK$24,238,000 year-over-year[17] - Loss before tax increased to HK$6,518,000, compared to a loss of HK$550,000 in the prior year[17] - The company reported a total comprehensive expense of HK$9,974,000 for the period, compared to HK$5,457,000 in the previous year[19] - Basic loss per share was HK$1.46, compared to earnings of HK$0.62 per share in the same period last year[19] - The Group recorded a net loss of approximately HK$7.0 million for the Reporting Period, compared to a net profit of approximately HK$3.0 million for the six months ended September 30, 2022[150] Cash Flow and Liquidity - The company maintains a strong cash flow position, with cash reserves reported at $10 million as of September 30, 2023[9] - Cash generated from operations amounted to HK$9,914,000, an increase from HK$8,597,000 in the previous year[28] - As of September 30, 2023, cash and cash equivalents were HK$56,558,000, down from HK$78,572,000 at the end of the previous period[30] - The Group's total cash and cash equivalents amounted to approximately HK$56.6 million as of September 30, 2023[157] - The Group had no bank borrowing as of 30 September 2023, compared to approximately HK$13.2 million in bank borrowings as of 31 March 2023[158] - The Group has maintained a reasonable liquidity buffer to meet liquidity requirements at all times[166] Market and Growth Outlook - Future outlook remains positive, with management guiding for a revenue growth of 10-15% for the next fiscal year[9] - New product launches are expected to contribute an additional 5% to revenue in the upcoming quarters[9] - The company is exploring market expansion opportunities in Southeast Asia, targeting a 25% increase in market share by 2025[9] - The Group anticipates that market conditions in Hong Kong and internationally will remain stagnant for the remainder of the year[151] Assets and Liabilities - Non-current assets decreased from HK$17,966,000 as of March 31, 2023, to HK$15,572,000 as of September 30, 2023[21] - Current assets also declined from HK$213,139,000 to HK$188,370,000 during the same period[21] - Total liabilities decreased from HK$177,869,000 to HK$167,895,000[23] - Equity attributable to owners of the company decreased from HK$142,713,000 to HK$135,576,000[23] Accounting and Compliance - The condensed consolidated financial statements for the six months ended 30 September 2023 have been prepared in accordance with Hong Kong Accounting Standard 34, ensuring compliance with applicable disclosure requirements[33] - The Group has applied new amendments to HKFRSs, including HKFRS 17 and amendments to HKAS 8 and HKAS 12, effective from 1 April 2023, with no material impact on financial positions and performance[36][41] - The Group's financial reporting adheres to the applicable standards set by the HKICPA, ensuring transparency and accuracy in financial disclosures[33][40] Revenue Breakdown - For the six months ended September 30, 2023, the Group's revenue from DTH rockdrilling tools was HK$61,099,000, a decrease of 26.4% compared to HK$82,937,000 in the same period of 2022[64] - Revenue from trading of piling and drilling machineries was HK$0, down from HK$1,005,000 in the previous year, indicating a complete cessation of this segment's activity[64] - Revenue from trading of rockdrilling equipment increased to HK$6,040,000, up 35.2% from HK$4,467,000 in the prior period[64] - The geographical breakdown of revenue showed a significant decline in sales from Hong Kong, which fell to HK$64,912,000 from HK$84,373,000, a decrease of 23%[82] Expenses and Costs - Cost management strategies have been implemented, aiming for a 5% reduction in operational expenses by the end of the fiscal year[9] - Selling and distribution expenses decreased by approximately HK$1.6 million, or 28.2%, to approximately HK$4.0 million for the Reporting Period, from approximately HK$5.5 million for the six months ended September 30, 2022[143] - Finance costs increased to HK$864,000 from HK$679,000, representing a rise of 27%[74][86] Employee and Management - Key management personnel compensation increased to HK$4.465 million for the six months ended 30 September 2023, compared to HK$3.787 million in the same period of 2022[131] - The Group employed 87 employees as of September 30, 2023, an increase from 82 employees as of September 30, 2022[180] Corporate Governance - The company has adopted and complied with the corporate governance code as per the Hong Kong Stock Exchange Listing Rules, except for the separation of the roles of Chairman and CEO[190] - The Audit and Compliance Committee reviewed the unaudited condensed consolidated financial statements and confirmed the adoption of applicable accounting policies[194]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不對 因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損 失承擔任何責任。 截 至 二 零 二 三 年 九 月 三 十 日 止 六 個 月 之 中 期 業 績 公 告 煜榮集團控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本 公司及其附屬公司（統稱「本集團」）截至二零二三年九月三十日止六個月（「報 告期間」）的未經審核綜合中期業績，連同二零二二年同期的比較數字如下： 簡明綜合損益及其他全面收益表 截至二零二三年九月三十日止六個月 截至九月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 （未經審核） （未經審核） 收益 3 67,139 88,409 銷售成本 (50,645) (64,171) 毛利 16,494 24,238 ...

Financial Performance - For the year ended March 31, 2023, the Group's revenue was approximately HK$157.0 million, an increase of 10.4% from HK$141.7 million in 2022[10]. - The Group recorded a net loss of approximately HK$3.6 million for the year, compared to a net loss of approximately HK$1.5 million in the previous year, primarily due to increased fair value losses and impairment losses[11]. - Gross profit for the year ended 31 March 2023 was approximately HK$43.4 million, an increase of approximately HK$3.8 million or 9.6% from approximately HK$39.6 million for the year ended 31 March 2022[36][29]. - The gross profit margin for the year was approximately 27.6%, slightly down from approximately 27.9% for the year ended 31 March 2022[36]. - Other gains for the year were approximately HK$0.5 million, down from approximately HK$2.4 million for the year ended 31 March 2022, primarily due to increased fair value losses on financial assets[37]. Revenue Breakdown - Revenue from Hong Kong contributed approximately HK$149.5 million, accounting for about 95.2% of total revenue, up from 90.9% in 2022[19]. - Revenue from the Scandinavian market increased to approximately HK$5.2 million, representing about 3.3% of total revenue, compared to 1.7% in 2022[20]. - Revenue from the manufacturing and trading of DTH rockdrilling tools accounted for approximately 93.3% of total revenue for the year, up from approximately 82.1% in the previous year[24][27]. - The Group did not generate any revenue from the trading of piling and drilling machineries during the year, which accounted for approximately 7.1% of total revenue in the previous year[25][28]. Expenses and Losses - Selling and distribution expenses rose by approximately HK$2.1 million or 27.9% to approximately HK$9.5 million, primarily due to increased freight, transportation, and storage costs[45]. - Administrative expenses increased by approximately HK$4.0 million or 11.1% to approximately HK$39.8 million, mainly due to higher staff costs[46]. - Fair value loss in financial assets at fair value through profit or loss increased to approximately HK$1.7 million, compared to a gain of approximately HK$1.6 million in 2022[18]. - Impairment loss of trade receivables rose to approximately HK$4.3 million, up from approximately HK$0.8 million in the previous year[18]. - Impairment losses under the expected credit loss model increased to approximately HK$4.3 million for the year, compared to approximately HK$0.8 million in the previous year[26][29]. Cash and Borrowings - As of March 31, 2023, the group's total cash and cash equivalents amounted to approximately HK$66.0 million, an increase from approximately HK$64.6 million the previous year[55]. - The group's gearing ratio increased to approximately 22.4% as of March 31, 2023, up from 17.7% the previous year, mainly due to increased bank borrowings[57]. - The group had bank borrowings of approximately HK$13.2 million as of March 31, 2023, compared to nil the previous year[56]. - The net proceeds from the public offer were approximately HK$88.3 million, fully utilized by March 31, 2023[76][83]. - The Group invested HK$50.4 million in a new manufacturing facility, with no unused amounts remaining[86]. Workforce and Operations - The Group increased its workforce to approximately 87 employees as of March 31, 2023, up from approximately 80 employees a year earlier[87]. - The Group maintains a reasonable liquidity buffer to meet liquidity requirements at all times[74]. - The Group's operations are primarily in Hong Kong and the PRC, with most transactions denominated in Hong Kong dollars and Renminbi, resulting in insignificant foreign exchange risk[75][79]. Corporate Governance - The corporate governance structure complies with the Listing Rules, although the roles of chairman and chief executive are not separated as per Code Provision C.2.1[90][91]. - The Board consists of two Executive Directors and three Independent Non-executive Directors, ensuring at least one-third independence[98]. - The Company complies with Listing Rules by having at least three Independent Non-executive Directors, with one possessing professional qualifications in finance management[100]. - All Independent Non-executive Directors confirmed their independence, ensuring no material relationships among Board members[101]. - The Board has delegated responsibilities to various committees, including the Audit and Compliance Committee, to enhance oversight and governance[107]. Risk Management - The Group's risk management and internal control systems are considered effective and adequate, with no significant compliance or financial risks identified[171][185]. - The Group has established an enterprise risk management framework following the COSO Integrated Framework to manage various risks effectively[178][179]. - The Board has conducted an annual review of the effectiveness of the risk management and internal control systems through discussions with the Audit and Compliance Committee[172]. - The Group's risk management framework includes identifying, assessing, prioritizing, and treating risks, including ESG-related risks[182]. - The effectiveness of the Group's risk management framework is evaluated at least annually, ensuring alignment with corporate goals[195].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不對 因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損 失承擔任何責任。 截 至 二 零 二 三 年 三 月 三 十 一 日 止 年 度 之 年 度 業 績 公 告 煜榮集團控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本 公司及其附屬公司（統稱「本集團」）截至二零二三年三月三十一日止年度（「本 年度」）的經審核綜合業績，連同截至二零二二年三月三十一日止年度的 經審核比較數字如下： 綜合損益及其他全面收益表 截至二零二三年三月三十一日止年度 二零二三年 二零二二年 附註 千港元 千港元 收益 3 157,048 141,748 銷售成本 (113,630) (102,147) 毛利 43,418 39,601 其他收入 4,253 1,724 預期信貸虧損模式項下的減值虧損淨額 (4,307) (762) 其他收益及虧損 450 2,439 ...

Financial Performance - The condensed consolidated financial statements for the six-month period ended September 30, 2022, were reviewed and found to be in compliance with HKAS 34[9]. - The company reported a significant increase in revenue, with a year-on-year growth of 15%[9]. - Revenue for the six months ended September 30, 2022, increased to HK$88,409,000, up 9.1% from HK$81,088,000 in the same period of 2021[17]. - Gross profit for the period was HK$24,238,000, representing a 34.5% increase compared to HK$17,991,000 in the previous year[17]. - Profit for the period attributable to owners of the Company was HK$2,368,000, compared to HK$594,000 in the same period of 2021[19]. - The total comprehensive income for the period was a loss of HK$3,148,000, impacted by an exchange difference of HK$5,516,000 from foreign operations[24]. - The company reported a profit attributable to owners of HK$2,368,000 for the six months ended 30 September 2022, compared to HK$594,000 for the same period in 2021, representing a significant increase of approximately 299%[72]. - The Group recorded a net profit of approximately HK$3.0 million for the Reporting Period, a turnaround from a net loss of approximately HK$0.7 million for the six months ended 30 September 2021[125]. Cash Flow and Financial Position - The cash flow statement indicates a healthy cash position, with net cash inflow of HKD 2 million during the reporting period[9]. - The company's cash and cash equivalents at the end of the period amounted to HK$78,572,000, a decrease from HK$86,729,000 at the end of the previous period[28]. - Net cash generated from operating activities was HK$9,390,000, a substantial increase from HK$692,000 in the prior year[28]. - The company raised HK$13,870,000 in bank borrowings during the financing activities, compared to no borrowings in the previous period[28]. - The Group's total cash and cash equivalents amounted to approximately HK$78.6 million, an increase from approximately HK$64.6 million as of 31 March 2022[133]. - The gearing ratio increased to approximately 25.3% as of 30 September 2022, up from approximately 17.7% as of 31 March 2022[135]. - The Group's bank borrowing was approximately HK$13.9 million with variable interest rates, repayable within one year, and had no bank borrowings as of 31 March 2022[134]. Market and Growth Outlook - Future outlook remains positive, with management guiding for a revenue growth of 10-15% for the next fiscal year[9]. - The company plans to launch two new products in the next quarter, aiming to capture a larger market share[195]. - Future outlook includes a projected revenue growth of 25% for the next fiscal year[195]. - The company is exploring potential acquisitions to enhance its product offerings and market presence[195]. - Market expansion plans include entering two new regions in Asia, projected to contribute an additional HKD 3 million in revenue[9]. - The company is exploring potential acquisitions to enhance its market position, with a focus on companies in the technology sector[9]. - The company is cautiously optimistic about the future of the construction market in Hong Kong and internationally, aiming to capture business opportunities in Hong Kong, Macau, and overseas markets[128]. Operational Performance - User data showed an increase in active users by 20% compared to the previous period, indicating strong market engagement[9]. - User data indicated a growth in active users by 15%, reaching a total of 1.2 million[195]. - The company is investing in new product development, with a budget allocation of approximately HKD 5 million for R&D initiatives[9]. - Investment in new technology development increased by 10% to support innovation[195]. - A new marketing strategy has been implemented, aiming to increase brand awareness by 25% over the next year[9]. - The Group's revenue increased by approximately HK$7.3 million, or 9.0%, to approximately HK$88.4 million for the Reporting Period, compared to approximately HK$81.1 million for the six months ended 30 September 2021[115]. Assets and Liabilities - The company has maintained a strong balance sheet, with total assets increasing by 12% to HKD 50 million[9]. - Current assets as of September 30, 2022, totaled HK$233,875,000, an increase from HK$207,294,000 as of March 31, 2022[21]. - Inventories rose to HK$72,438,000 from HK$55,740,000, indicating a 30% increase[21]. - Trade and other receivables increased to HK$62,284,000 from HK$59,971,000[21]. - Non-current assets decreased to HK$24,159,000 from HK$25,502,000[21]. - Total assets less current liabilities amounted to HK$190,892,000, down from HK$197,346,000[22]. - The allowance for credit losses on trade receivables was HK$4,210,000, compared to HK$3,237,000 as of 31 March 2022[80]. Corporate Governance - The Company is focused on maintaining high levels of corporate governance to enhance shareholder value and protect their interests[168]. - The Board will periodically review the Company's corporate governance practices to comply with Listing Rules and safeguard shareholders' interests[169]. - The Audit and Compliance Committee consists of three Independent Non-executive Directors, with Mr. Yiu To Wa as the chairman[173]. - All existing Directors confirmed compliance with the Model Code for Securities Transactions throughout the Reporting Period[167]. Shareholder Information - Colour Shine holds 188,192,000 shares, representing 49.52% of the total issued share capital of the company[184]. - Mr. He Xiaoming, as the controlling shareholder, also holds 49.52% of the shares through Colour Shine[184]. - Mr. Huang Shixin owns 27,304,000 shares, accounting for 7.19% of the total issued share capital[184]. - Mr. Chan Leung Choi holds 19,188,000 shares, which is 5.05% of the total issued share capital[184]. - As of September 30, 2022, no other persons or entities were reported to have interests or short positions in the shares of the company[185].

Financial Performance - For the year ended March 31, 2022, the Group's revenue was approximately HK$141.7 million, an increase of 32.8% from approximately HK$106.7 million in 2021[9] - The Group recorded a net loss of approximately HK$1.5 million for the year, significantly improved from a net loss of approximately HK$6.5 million in the previous year[10] - Gross profit for the year was approximately HK$39.6 million, an increase of approximately HK$0.6 million, or 1.5%, from approximately HK$39.0 million for the previous year[34] - The gross profit margin decreased to approximately 27.9% for the year, down from approximately 36.6% for the year ended 31 March 2021[34] - The Group recorded a net other gain of approximately HK$2.4 million for the Year, compared to a net other loss of approximately HK$3.7 million for the year ended 31 March 2021[38] - Selling and distribution expenses increased by approximately HK$1.1 million, or 17.5%, to approximately HK$7.4 million for the Year, primarily due to increased freight, transportation, and storage costs[44] - Administrative expenses decreased by approximately HK$0.8 million, or 2.2%, to approximately HK$35.8 million for the Year, mainly due to reduced staff costs and maintenance expenses[45] - The Group's revenue increased by approximately HK$35.0 million, or 32.8%, to approximately HK$141.7 million for the year, compared to approximately HK$106.7 million for the year ended 31 March 2021[25] Revenue Breakdown - Revenue from Hong Kong contributed approximately HK$128.9 million, accounting for about 91.0% of total revenue, compared to 93.1% in 2021[18] - Revenue from Macau increased to approximately HK$8.7 million, representing 6.1% of total revenue, up from 4.3% in 2021[19] - Revenue from the manufacturing and trading of DTH rockdrilling tools contributed approximately 82.1% of total revenue, down from approximately 89.0% in the previous year[23] - Revenue from trading of piling and drilling machineries accounted for approximately 7.1% of total revenue, up from approximately 2.6% in the previous year[24] - Revenue from trading of rockdrilling equipment accounted for approximately 10.8% of total revenue, up from approximately 8.3% in the previous year[24] Market Conditions - The improvement in the business environment in Hong Kong was attributed to a higher level of construction works and projects available during the year[9] - Increased competition in the Hong Kong market has exerted price pressure on products, leading to a decrease in gross profit margin[17] - The international market showed slight improvement, contributing positively to the Group's revenue as local and international customers increased their purchases[17] - The improvement in revenue was primarily due to a better business environment in Hong Kong, leading to increased construction activities[33] - The Group is cautiously optimistic about the future of the construction market in Hong Kong and internationally, aiming to capture business opportunities in Hong Kong, Macau, and overseas markets[53] Financial Position - As of 31 March 2022, the Group's total cash and cash equivalents amounted to approximately HK$64.6 million, a decrease from approximately HK$87.4 million as of 31 March 2021[56] - The gearing ratio as of 31 March 2022 was approximately 17.7%, down from approximately 18.7% as of 31 March 2021, primarily due to a decrease in lease liabilities[58] - The Group had no bank borrowings as of March 31, 2022, with other borrowings remaining at approximately HK$20.0 million[57] - The Group is comfortable with its current financial and liquidity position, maintaining a reasonable liquidity buffer[69] Corporate Governance - The Company focuses on maintaining high standards of corporate governance to enhance shareholder value and protect their interests[96] - The Board comprises two Executive Directors and three Independent Non-executive Directors, ensuring compliance with Listing Rules regarding board composition[104][105] - The Company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance by all Directors throughout the year[103] - The Board is responsible for determining the operational plan and investment proposals of the Company, including the annual financial budget proposal[111] - The Company must notify the Stock Exchange at least seven working days before meetings where dividends or profit resolutions are discussed[117] Board and Committees - The Board held a total of 11 meetings during the year, with attendance rates for individual directors ranging from 64% to 100%[121] - The Audit and Compliance Committee held 4 meetings during the year, with a 100% attendance rate for all members[138] - The Remuneration Committee conducted 2 meetings during the year, with Ms. Lam Hoi Yu Nicki and Mr. Yiu To Wa achieving a 100% attendance rate[148] - The Nomination Committee consists of three members, all of whom are Independent Non-executive Directors, with Mr. Lau Leong Yuen serving as the chairman[154] - The Company has established three board committees: Audit and Compliance Committee, Remuneration Committee, and Nomination Committee, to delegate responsibilities effectively[132] Risk Management - The Group's risk management framework follows the COSO Enterprise Risk Management — Integrated Framework, allowing effective risk management[175] - The Group has identified principal risks classified into compliance risks, financial risks, operational risks, and strategic risks, with no significant risks identified in compliance and financial categories[180] - The Group adopts a "three lines of defence model" for corporate governance, with risk management monitoring conducted by the finance team and independent internal audit functions outsourced[189] - The risk management framework is evaluated at least annually, ensuring proactive management of identified risks[190] - The Group will continue to engage external independent professionals annually to review and enhance its internal control and risk management systems[191] Use of Proceeds - The net proceeds from the public offer were approximately HK$88.3 million, intended for various corporate purposes[77] - As of May 31, 2022, the Group had approximately HK$8.0 million of unutilized net proceeds, with allocations for overseas exhibitions and promotions, manpower increase, and office rental[78] - The unutilized net proceeds for overseas exhibitions and promotions were not utilized due to cancellations caused by the COVID-19 pandemic[85] - The Board resolved to reallocate approximately HK$8.0 million of unutilised net proceeds originally assigned for overseas exhibitions and promotions to fund working capital and other general corporate purposes[89] Employee and Remuneration - The Group had approximately 80 employees, a decrease from approximately 88 employees as of March 31, 2021[92] - The Group's remuneration policy is periodically reviewed, with employee benefits including discretionary bonuses and retirement plans for employees in Hong Kong and the PRC[92] - The performance evaluation standards for Directors and senior management are established by the Remuneration Committee to ensure accountability[144]

Financial Statements and Compliance - The condensed consolidated financial statements as of September 30, 2021, were reviewed, ensuring compliance with HKAS 34[10] - The Group's financial position includes a condensed consolidated statement of profit or loss for the six-month period ended September 30, 2021[10] - The review did not identify any issues that would suggest the financial statements were not prepared in accordance with HKAS 34[16] - Comparative financial data for the six-month period ended September 30, 2020, was extracted from previously reviewed statements, confirming consistency in reporting[17] - The Group's financial statements for the year ended March 31, 2021, were audited and expressed an unmodified opinion by the same auditor[17] - The report was prepared by Baker Tilly Hong Kong Limited, ensuring independent review and compliance with relevant standards[20] - The financial statements include comprehensive income and cash flow statements for the specified periods, reflecting the Group's operational performance[10] - The Group's management is responsible for the preparation and presentation of the financial statements, highlighting accountability in financial reporting[10] - The review process involved inquiries and analytical procedures, indicating a thorough examination of financial data[11] - The report was issued on November 24, 2021, providing timely insights into the Group's financial health[20] Revenue and Profitability - Revenue for the six months ended September 30, 2021, was HK$81,088,000, representing an increase of 43.5% compared to HK$56,602,000 in the same period of 2020[21] - Gross profit decreased to HK$17,991,000, down 31.2% from HK$26,208,000 year-on-year[21] - Loss for the period was HK$660,000, compared to a profit of HK$7,261,000 in the previous year, indicating a significant decline[21] - Total comprehensive income for the period was a loss of HK$526,000, compared to a gain of HK$9,675,000 in the same period last year[21] - Basic earnings per share decreased to 1.97 HK cents from 16 HK cents, reflecting the downturn in profitability[21] - For the six months ended September 30, 2021, the profit attributable to owners of the Company was HK$594,000, a decrease of 92.1% compared to HK$7,492,000 for the same period in 2020[72] Assets and Liabilities - Current assets totaled HK$202,948,000, a decrease from HK$210,850,000 as of March 31, 2021[24] - Current liabilities decreased to HK$32,324,000 from HK$40,156,000, improving the company's liquidity position[24] - Non-current assets amounted to HK$26,762,000, down from HK$28,243,000 as of March 31, 2021[24] - The company's equity attributable to owners increased slightly to HK$149,259,000 from HK$148,869,000[24] - As of 30 September 2021, trade receivables increased to HK$39,443,000 from HK$32,735,000 as of 31 March 2021, reflecting a growth of approximately 20.8%[80] - The allowance for credit losses rose to HK$3,165,000 from HK$2,475,000, indicating an increase of about 27.8%[80] - The Group's trade payables decreased significantly from HK$9,358,000 as of 31 March 2021 to HK$2,476,000 as of 30 September 2021, a reduction of approximately 73.6%[87] Cash Flow and Investments - Operating cash flows before movements in working capital were HK$2,424,000, a decrease from HK$11,804,000 in the prior year[28] - The net cash generated from operating activities was HK$692,000, contrasting with a net cash used of HK$7,473,000 in the previous year[28] - The company reported a net cash used in investing activities of HK$95,000, compared to HK$671,000 in the previous year[28] - The repayment of lease liabilities amounted to HK$838,000, slightly increasing from HK$804,000 in the prior year[28] - Cash and cash equivalents at the end of the period were HK$86,729,000, down from HK$92,556,000 at the end of the previous period[28] Market Performance and Strategy - The company is primarily engaged in manufacturing and trading down-the-hole rock drilling tools, piling and drilling machinery, and rock drilling equipment[39] - The Macau market showed signs of improvement with increased revenue contributions during the reporting period[102] - The Group's revenue increased during the reporting period due to higher purchases from local customers, despite a decrease in gross profit margin due to price pressure[101] - The Group remains cautiously positive about the future of the construction market in Hong Kong and internationally, aiming to capture business opportunities in various markets[123] - The Group anticipates continued improvement in the approval of public works project budgets, subject to the COVID-19 pandemic situation[122] Shareholder Information - As of September 30, 2021, Colour Shine holds 188,192,000 shares, representing approximately 49.52% of the total issued share capital of the company[181] - Mr. Huang Shixin owns 27,304,000 shares, which is about 7.19% of the total issued share capital[181] - Mr. Chan Leung Choi holds 19,188,000 shares, accounting for approximately 5.05% of the total issued share capital[181] - The board of directors did not recommend the distribution of an interim dividend for the reporting period[175] Future Outlook and Developments - The company provided a positive outlook, projecting a revenue growth of 10-15% for the next fiscal year[188] - New product development includes the launch of a next-generation drilling equipment expected to increase market share by 5%[188] - The company plans to expand into Southeast Asia, targeting a market size of approximately HK$200 million[188] - A strategic acquisition of a local competitor is anticipated to enhance operational capabilities and increase revenue by 8%[188] - The company is investing HK$30 million in technology upgrades to improve efficiency and reduce costs by 10%[188] Compliance and Governance - The Audit and Compliance Committee reviewed the unaudited condensed consolidated financial statements and confirmed adequate disclosures were made[168] - The company emphasizes its commitment to compliance with local regulations in its operational jurisdictions[189]

Financial Performance - For the year ended March 31, 2021, the Group's revenue was approximately HK$106.7 million, a decrease of 40.2% from approximately HK$178.6 million in 2020[11]. - The Group recorded a net loss of approximately HK$6.5 million for the year, compared to a net profit of approximately HK$20.9 million for the year ended March 31, 2020[12]. - Revenue decreased by approximately HK$71.9 million, or 40.3%, to approximately HK$106.7 million for the Year, down from approximately HK$178.6 million for the year ended 31 March 2020[30]. - Gross profit decreased by approximately HK$27.4 million, or 41.3%, to approximately HK$39.0 million for the Year, with a gross profit margin of approximately 36.6%[38]. - Total comprehensive income for the year resulted in a loss of approximately HK$1.7 million, compared to a gain of approximately HK$18.0 million in the previous year[35]. Revenue Sources - Revenue generated from Hong Kong contributed approximately HK$99.3 million, accounting for about 93.1% of total revenue during the year, down from 95.1% in 2020[22]. - Revenue from the manufacturing and trading of DTH rockdrilling tools accounted for approximately 89.0% of total revenue during the Year, up from approximately 80.8% in the previous year[30]. - Revenue generated from Macau increased to approximately HK$4.6 million, contributing approximately 4.3% of total revenue, compared to approximately HK$2.9 million and 1.6% in the previous year[26]. - Revenue from the Scandinavia region decreased to approximately HK$2.0 million, representing approximately 1.9% of total revenue, down from approximately HK$3.2 million and 1.8% in the previous year[27]. - Revenue from trading of piling and drilling machineries contributed approximately 2.6% of total revenue, down from approximately 9.9% in the previous year[29]. - Revenue from trading of rockdrilling equipment accounted for approximately 8.3% of total revenue, a decrease from approximately 9.3% in the previous year[31]. Market Conditions - The stagnant market environment in Hong Kong was attributed to a slowdown in public works budget approvals due to the COVID-19 pandemic, leading to fewer construction projects[21]. - The overall construction activity in Hong Kong was at a comparatively lower level, impacting the demand for the Group's products[11]. - The business environment in Hong Kong remained stagnant, leading to lower demand for products due to reduced construction works and projects[37]. Strategic Focus - The Group plans to focus on the manufacturing and trading of down-the-hole (DTH) rockdrilling tools and aims to strengthen its presence in overseas markets[13]. - The Group intends to allocate more resources towards the development of its DTH rockdrilling tools business to maximize long-term returns for shareholders[13]. - The Group's management remains cautious about market prospects while focusing on core business operations[13]. Financial Position - As of 31 March 2021, total cash and cash equivalents amounted to approximately HK$87.4 million, a decrease from approximately HK$101.4 million as of 31 March 2020[55]. - The Group had no bank borrowings as of 31 March 2021, with other borrowings remaining at approximately HK$20.0 million, at a fixed interest rate of 1.0%[56]. - The gearing ratio as of 31 March 2021 was approximately 18.7%, slightly down from 19.3% as of 31 March 2020[57]. - The group maintained a comfortable financial and liquidity position, with no bank borrowings as of March 31, 2021, and deposits of approximately HK$4.7 million pledged to secure banking facilities[68][69]. Corporate Governance - The Company has adopted the Corporate Governance Code and has complied with most provisions, except for Code Provisions A.2.1 and A.4.1[88]. - The Board consists of at least three Independent Non-executive Directors, representing at least one-third of the Board, in compliance with Listing Rules[96]. - The Audit and Compliance Committee consists of three independent non-executive directors, responsible for overseeing financial reporting and internal control systems[119]. - The Company has established procedures for the appointment of directors, with terms set at three years[110]. - The Company emphasizes meritocracy in Board appointments while considering diversity perspectives[149]. Risk Management - The Group has established an enterprise risk management framework, with the Board responsible for maintaining effective internal controls and management tasked with implementing these systems[162]. - Principal risks identified include financial risks such as foreign exchange rate risk, operational risks related to sales and purchases concentration, and strategic risks from reduced market demand[167]. - The effectiveness of the risk management framework is evaluated at least annually, with periodic management meetings to update risk monitoring progress[174]. - The Group will continue to engage external independent professionals for annual reviews of its internal controls and risk management systems[179]. Employee Information - As of March 31, 2021, the company had issued share capital of HK$38 million and 380 million ordinary shares, with no changes in the statutory and issued share capital during the year[62]. - As of March 31, 2021, the group had approximately 88 employees, a decrease from approximately 104 employees in 2020[83]. Shareholder Communication - The Company values effective communication with shareholders and maintains a website for public access to business operations and financial information[196]. - The annual general meeting serves as a platform for direct communication between the Board and shareholders, with separate resolutions proposed for each issue[197]. - The Company will handle shareholder inquiries in a timely and appropriate manner[194].

Financial Statements and Compliance - The condensed consolidated financial statements as of September 30, 2020, were reviewed and found to be in compliance with HKAS 34[9] - The report covers the financial position and performance for the six-month period ending September 30, 2020[9] - The company is responsible for the preparation and presentation of the financial statements[9] - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410[10] - No significant matters were identified that would lead to a belief that the financial statements were not prepared in all material respects according to HKAS 34[14] - The audit was performed by Deloitte Touche Tohmatsu, a certified public accountant firm[16] - The interim report was published on November 25, 2020[16] Revenue and Profit Performance - Revenue for the six months ended September 30, 2020, was HK$56,602,000, a decrease of 51.4% compared to HK$116,667,000 in 2019[17] - Gross profit for the same period was HK$26,208,000, down 38.7% from HK$42,843,000 in 2019[17] - Profit for the period was HK$7,261,000, a decline of 64.8% from HK$20,586,000 in the previous year[17] - Total comprehensive income for the period was HK$9,675,000, compared to HK$17,799,000 in 2019, reflecting a decrease of 45.3%[17] - Basic earnings per share decreased to 1.97 HK cents from 4.23 HK cents, representing a decline of 53.5%[17] - Profit before tax for the six months ended September 30, 2020, was HK$9,271,000, a decrease of 63.7% compared to HK$25,591,000 in the same period of 2019[21] - The overall profit before tax for the six months ended September 30, 2020, was HK$9,271,000, compared to HK$25,591,000 for the same period in 2019, reflecting a decline of 63.7%[50][53] Assets and Liabilities - Current assets increased to HK$226,007,000 as of September 30, 2020, up from HK$208,258,000 at March 31, 2020[18] - Inventories rose significantly to HK$67,550,000 from HK$50,448,000, indicating a 33.9% increase[18] - Net current assets improved to HK$182,758,000, compared to HK$172,498,000 at the end of March 2020[18] - Total assets less current liabilities increased to HK$211,279,000 from HK$202,442,000[18] - Equity attributable to owners of the Company rose to HK$159,095,000 from HK$149,975,000, reflecting an increase of 6.8%[18] Cash Flow and Financing - Operating cash flows before movements in working capital decreased to HK$11,804,000 from HK$27,695,000, reflecting a decline of 57.5%[21] - Net cash used in operating activities was HK$7,473,000, compared to a net cash inflow of HK$10,119,000 in the previous year[21] - Cash and cash equivalents at the end of the period were HK$92,556,000, down from HK$101,421,000 at the beginning of the period[21] - The Group did not raise any new bank borrowings during the period, compared to HK$6,389,000 raised in the previous year[21] - Interest paid decreased to HK$326,000 from HK$1,539,000, indicating a reduction in financing costs[21] Market Environment and Business Impact - The business environment in Hong Kong was stagnant, leading to a reduction in revenue due to fewer construction projects available in the market[24] - The Group's financial performance was negatively impacted by the slowdown in public works budget approvals due to the COVID-19 pandemic[24] - The market environment in Hong Kong remains stagnant, with no public works budget approved by the Finance Committee since the commencement of the LegCo year 2020–21[123] - The approval process for public works project budgets is expected to remain sluggish for the remainder of the year due to the ongoing COVID-19 pandemic[130] - The Group remains cautious about the future of the construction market in Hong Kong and internationally, while continuing to seek business opportunities in Hong Kong, Macau, and overseas markets[131] Segment Performance - Revenue from manufacturing and trading of DTH rockdrilling tools was HK$49,639,000, down 47.4% from HK$94,215,000 in the previous year[41][53] - Trading of piling and drilling machineries generated revenue of HK$2,808,000, a decline of 80.1% from HK$14,096,000 in the prior period[41][53] - Trading of rockdrilling equipment revenue was HK$4,155,000, down 50.2% from HK$8,356,000 year-over-year[41][53] - The segment result for manufacturing and trading of DTH rockdrilling tools was HK$24,654,000, a decrease of 36.4% from HK$38,754,000 in the same period last year[50][53] - Revenue from the manufacturing and trading of DTH rockdrilling tools contributed approximately 87.6% of total revenue during the Reporting Period, up from approximately 80.7% in the previous period[110] Employee and Management Information - The Group had 92 employees as of September 30, 2020, down from 111 employees a year earlier[156] - The total remuneration for key management personnel during the six months ended 30 September 2020 was HK$3,026,000, compared to HK$2,912,000 for the same period in 2019, reflecting an increase of approximately 3.9%[103] Share Capital and Ownership - The Group's issued and fully paid share capital remained at HK$38,000,000 as of 30 September 2020, unchanged from previous periods[97] - As of September 30, 2020, Mr. Huang Shixin holds 18,962,000 shares, representing approximately 4.99% of the total issued share capital of the Company[187] - Colour Shine holds 188,192,000 shares, accounting for approximately 49.52% of the total issued share capital of the Company[194] - Mr. He Xiaoming has an interest in 188,192,000 shares through Colour Shine, also representing approximately 49.52% of the total issued share capital[194] - Mr. Chan Leung Choi holds 19,188,000 shares, which is about 5.05% of the total issued share capital of the Company[194] Dividends and Recommendations - The company did not recommend the payment of an interim dividend for the six months ended September 30, 2020, consistent with the previous year[72] - The Board does not recommend the distribution of an interim dividend for the Reporting Period[179] Compliance and Governance - The Audit and Compliance Committee reviewed the unaudited condensed consolidated financial statements and confirmed adequate disclosures were made[176] - The Company has complied with the Listing Rules after appointing Mr. Huang Shixin as an authorized representative on November 13, 2020[181] - The Company has adopted the standard code for securities transactions by directors as per the Listing Rules[180] - The Company has complied with the provisions of the SFO regarding the disclosure of interests in shares[198]