Market Overview - On August 21, A-shares opened higher with major indices rising, particularly in diversified finance, brokerage, and digital currency sectors, while photovoltaic, rare earth, and military industries saw slight declines [1] - Liquid cooling server and AI hardware stocks opened lower, with Jintian Co. hitting the daily limit down after a strong performance in previous days [1] Company Performance - Jintian Co. reported a total revenue of 59.294 billion yuan for the first half of the year, a year-on-year increase of 2.46%, and a net profit of 373 million yuan, up 203.86% [3] - Jintian Co. primarily engages in non-ferrous metal processing, with copper products and rare earth permanent magnet materials as its main offerings [3] - China Mobile's AI general computing device procurement project has awarded contracts, with ZTE Corporation being the largest winner, securing approximately 885 million yuan, accounting for over 50% of the total [6] Sector Movements - The semiconductor sector saw strong gains, with the Shenwan Electronics Industry Index rising over 1%, reaching a new high [4] - The consumer electronics sector experienced a short-term surge, with Kosen Technology achieving five consecutive trading limit ups [6] - The small metals sector also saw significant movement, with Zhangyuan Tungsten hitting the daily limit up, alongside other companies in the rare earth and tungsten industries [6] Hong Kong Market Highlights - In the Hong Kong market, the Hang Seng Index and Hang Seng Tech Index declined, while pharmaceutical stocks rebounded and stablecoin concepts surged [3] - Zhenrongxin saw a significant increase, with shares rising nearly 30% at one point, following a previous day where the stock price surged over 90% [8][10] - Zhong An Online reported total premiums of 16.661 billion yuan for the first half of 2025, a year-on-year increase of 9.3%, with net profit rising by 1103.5% [10] Cryptocurrency Sector - The cryptocurrency sector in Hong Kong saw initial gains, with Okex Chain rising over 9% and New Fire Technology Holdings increasing by over 8% [11]

Company Overview - Shanda Electric (301609.SZ) has initiated its subscription on July 14, with an issue price of 14.66 yuan per share and a maximum subscription limit of 10,000 shares, reflecting a price-to-earnings ratio of 19.57 times [1] - The company focuses on the research and industrialization of intelligent products related to power systems, with two main business segments: smart grid monitoring and renewable energy [1][2] - Shanda Electric is recognized as one of the earliest entrants in the power system monitoring industry and has established strong partnerships with major entities like State Grid and Southern Power Grid [1] Market Potential - The investment in secondary equipment for smart grids has maintained a proportion of 12%-15% of total grid investment since the comprehensive construction phase began in 2011, with cumulative investment expected to reach between 763.798 billion and 954.748 billion yuan from 2012 to 2024 [2] - The total electricity consumption in China is projected to reach 9.5 trillion kWh by 2025 and 11.3 trillion kWh by 2030, with average annual growth rates of 4.8% and 3.6% during the 14th and 15th Five-Year Plans, respectively [1] Financial Performance - For the fiscal years 2022, 2023, and 2024, the company reported revenues of approximately 478 million yuan, 549 million yuan, and 658 million yuan, respectively, with net profits of approximately 77.9868 million yuan, 103 million yuan, and 127 million yuan [2] - As of December 31, 2024, the total assets amounted to 1,127 million yuan, with equity attributable to shareholders of the parent company at 615.675 million yuan, and a debt-to-asset ratio of 45.37% [3] - The company’s basic and diluted earnings per share for 2024 are projected to be 1.04 yuan, with a return on equity of 22.93% [3] Cash Flow Analysis - In the first quarter of 2025, the net cash flow from operating activities was -13.0793 million yuan, a decrease compared to the previous year, attributed to increased tax payments and fewer guarantee deposits received [4] - The net cash outflow from investment activities was 3.0164 million yuan, a reduction of 83.12% compared to the same period last year, primarily due to lower payments for new factory construction [4]

Financial Performance - The group's revenue for the reporting period decreased by 10.0% to approximately HKD 221.5 million, down from approximately HKD 246.0 million in the previous period[7]. - Gross profit for the reporting period was approximately HKD 26.2 million, with a gross margin of 11.8%, compared to a gross profit of approximately HKD 34.9 million and a gross margin of 14.2% in the previous period[4]. - The group's net profit for the reporting period was approximately HKD 7.5 million, down from approximately HKD 16.3 million in the previous period[23]. - Revenue from concrete pouring services for the six months ended September 30, 2023, was HKD 218,377, a decrease of 9.8% from HKD 242,220 for the same period in 2022[32]. - The group reported a total profit of HKD 31,879 for the six months ended September 30, 2023, compared to HKD 245,974 in the previous period[42]. - The group’s pre-tax profit for the six months ended September 30, 2023, was HKD 21,517[44]. - The company's profit attributable to owners for the six months ended September 30, 2023, was HKD 7,511,000, a decrease of 53.9% from HKD 16,294,000 in the same period of 2022[70]. - The total comprehensive income attributable to shareholders for the period was HKD 7,752,000, down from HKD 16,044,000 in the previous year[158]. - The basic and diluted earnings per share were HKD 0.76, a decline of 48.3% from HKD 1.49 in the prior year[158]. Expenses and Costs - Other income decreased significantly to approximately HKD 100,000 from approximately HKD 5.3 million in the previous period, primarily due to a reduction in government subsidies[5]. - Administrative and other operating expenses increased by 73.9% to approximately HKD 16 million, up from approximately HKD 9.2 million in the previous period, mainly due to higher legal and professional fees[6]. - The group's tax expense for the reporting period was approximately HKD 2.6 million, down from approximately HKD 5.2 million in the previous period[22]. - Employee costs, including director remuneration, increased to HKD 103,785 for the six months ended September 30, 2023, compared to HKD 77,961 in the previous year[67]. - The company’s liabilities related to assets classified as held for sale increased to HKD 182,359,000 from HKD 131,749,000, marking an increase of 38.3%[163]. Cash Flow and Assets - As of September 30, 2023, the group had cash and cash equivalents of approximately HKD 60.1 million, down from HKD 203.5 million as of March 31, 2023[25]. - The total assets as of September 30, 2023, amounted to HKD 794,270, with segment assets for concrete pouring at HKD 360,761 and loan financing at HKD 136,896[47]. - The total trade and other receivables decreased from HKD 300,193,000 as of March 31, 2023, to HKD 213,090,000 as of September 30, 2023[82]. - The cash and bank balances decreased significantly to HKD 60,121,000 from HKD 203,498,000, indicating a decline of 70.5%[163]. - The net cash generated from operating activities for the six months ended September 30, 2023, was HKD 13,376,000, compared to a net cash used of HKD 27,005,000 in the same period of 2022[117]. Shareholder Information - The company did not declare any interim dividend for the six months ended September 30, 2023, consistent with the previous period[31]. - The total number of issued and fully paid ordinary shares as of April 1, 2023, was 1,095,388,000[100]. - The major shareholder, Prestige Rich Holdings Limited, holds 609,100,000 shares, representing 55.61% of the total equity[113]. - The company completed a share buyback offer, repurchasing approximately 119,999,994 shares, representing about 100% of the issued share capital of its subsidiary[72]. Strategic Developments - The group secured 30 construction projects with a total contract value of approximately HKD 1.4 billion, with 27 projects already generating revenue during the reporting period[14]. - The group plans to continue exploring opportunities to expand its concrete-related services and improve its operational model[15]. - The company is in the process of submitting a new listing application related to a significant acquisition, expected to be submitted by December 2023[150]. - The company has agreed to acquire 59% equity in Guangzhou Xiangjing Cemetery Co., Ltd. for HKD 142,407,107, with part of the payment to be made in cash and part through a loan transfer[102]. Risk Management and Compliance - The company has maintained its risk management policies since the year-end[191]. - The company is monitoring foreign exchange risk and has taken appropriate measures to manage this risk[121]. - The company has not engaged in any derivative activities or used financial instruments to hedge against foreign exchange risks as of September 30, 2023[121]. - The audit committee has reviewed and approved the interim financial results, ensuring compliance with applicable accounting standards and regulations[116]. Market and Industry Outlook - Management remains optimistic about the construction industry’s resilience and aims to maintain profitability amid ongoing economic challenges[46]. - The company has not reported any new product launches or significant technological advancements during this period[175]. - There are no indications of market expansion or mergers and acquisitions in the current report[175].

[Financial Summary](index=2&type=section&id=Financial%20Summary) [Core Financial Data](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended September 30, 2023, the Group's revenue decreased by 10.0% to HK$221.5 million, with profit for the period significantly declining by 53.9% to HK$7.511 million Condensed Consolidated Statement of Profit or Loss (For the Six Months Ended September 30) | Indicator | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 221,523 | 245,974 | -10.0% | | Gross Profit | 26,191 | 34,863 | -24.9% | | Profit Before Tax | 10,064 | 21,517 | -53.2% | | Profit for the Period | 7,511 | 16,294 | -53.9% | | Basic Earnings Per Share (HK cents) | 0.76 | 1.49 | -49.0% | Condensed Consolidated Statement of Financial Position (As at End of Reporting Period) | Indicator | As at September 30, 2023 (HK$ Thousand) | As at March 31, 2023 (HK$ Thousand) | Period Change | | :--- | :--- | :--- | :--- | | Total Assets | 794,270 | 736,218 | +7.9% | | Total Liabilities | 182,359 | 132,059 | +38.1% | | Net Assets | 611,911 | 604,159 | +1.3% | - The Board resolved not to declare any interim dividend for the six months ended September 30, 2023[145](index=145&type=chunk)[105](index=105&type=chunk) [Segment Business Performance](index=7&type=section&id=Revenue%20and%20Segment%20Information) The Group operates in two segments: concrete pouring and loan financing, with concrete pouring being the primary revenue source, both segments experienced declines in revenue and segment profit during the reporting period - The Group's operating and reportable segments are: (i) provision of concrete pouring services and other ancillary services in Hong Kong; and (ii) provision of loan financing in Hong Kong[75](index=75&type=chunk)[42](index=42&type=chunk) Segment Revenue and Results (For the Six Months Ended September 30) | Segment | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | **Concrete Pouring** | Revenue from External Customers | 218,377 | 242,220 | -9.8% | | | Segment Profit | 20,042 | 28,125 | -28.7% | | **Loan Financing** | Revenue from External Customers | 3,146 | 3,754 | -16.2% | | | Segment Profit | 3,146 | 3,754 | -16.2% | [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=17&type=section&id=Business%20Review) During the reporting period, the Group continued its concrete pouring and loan financing operations, adopting a streamlined, asset-light strategy for concrete pouring to enhance profitability, securing 30 construction projects with a total contract value of approximately HK$1.4 billion - The Group adopted a more asset-light strategy for its concrete pouring business, adjusting manpower and renting machinery based on project progress to operate in a streamlined manner[114](index=114&type=chunk) - As of September 30, 2023, the Group had been awarded **30 construction projects** with a total contract value of approximately **HK$1.4 billion**, with an additional **2 projects** valued at approximately **HK$16.2 million** awarded after the reporting period[96](index=96&type=chunk) - Looking ahead, management remains confident in the development of Hong Kong's construction industry and will continue to focus on construction projects to maintain profitability[145](index=145&type=chunk) [Financial Review](index=18&type=section&id=Financial%20Review) During the reporting period, the Group's overall financial performance declined, with total revenue decreasing by 10.0% to HK$221.5 million, gross margin falling from 14.2% to 11.8%, and administrative expenses increasing significantly by 73.9%, resulting in a substantial reduction in net profit to HK$7.5 million [Revenue Analysis](index=18&type=section&id=Revenue) Total revenue for the reporting period was approximately HK$221.5 million, a 10.0% year-on-year decrease, primarily due to a 9.8% reduction in concrete pouring services revenue to HK$218.4 million, driven by fewer new projects - Total revenue for the reporting period decreased by **10.0%** to approximately **HK$221.5 million** from HK$246.0 million in the previous period[116](index=116&type=chunk) - Revenue from concrete pouring services was approximately **HK$218.4 million**, a **9.8%** year-on-year decrease, primarily due to a reduction in the value and number of new projects[98](index=98&type=chunk) [Gross Profit and Gross Margin](index=18&type=section&id=Gross%20Profit%20and%20Gross%20Margin) The Group's overall gross profit decreased from HK$34.9 million to HK$26.2 million, with the gross margin declining from 14.2% to 11.8% Gross Profit and Gross Margin Changes | Indicator | Reporting Period | Previous Period | | :--- | :--- | :--- | | Gross Profit | Approx. HK$26.2 million | Approx. HK$34.9 million | | Gross Margin | Approx. 11.8% | 14.2% | [Expenses and Profitability](index=18&type=section&id=Expenses%20and%20Profitability) Administrative and other operating expenses surged by 73.9% to HK$16 million due to increased legal and professional fees, while impairment losses on financial assets significantly decreased by 97.8%, leading to a substantial decline in net profit for the period from HK$16.3 million to HK$7.5 million - Administrative and other operating expenses increased by **73.9%** to approximately **HK$16 million**, primarily due to an increase of approximately **HK$6 million** in legal and professional fees, and entertainment and travel expenses[100](index=100&type=chunk) - Impairment losses on financial assets significantly decreased by **97.8%** from HK$9.3 million in the previous period to approximately **HK$0.2 million**[101](index=101&type=chunk) - Net profit for the period was approximately **HK$7.5 million**, a significant decrease from HK$16.3 million in the previous period[144](index=144&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) The Group relies primarily on internal cash flow and shareholder contributions for operations, with cash and cash equivalents significantly decreasing to approximately HK$60.1 million at period-end, maintaining a very low gearing ratio of 0.4% with no bank borrowings or pledged assets - As of September 30, 2023, the Group's cash and cash equivalents were approximately **HK$60.1 million**, a significant decrease from HK$203.5 million as of March 31, 2023[120](index=120&type=chunk) - As of September 30, 2023, the Group had no borrowings, and its gearing ratio was **0.4%**[104](index=104&type=chunk)[6](index=6&type=chunk) - As at the end of the reporting period, the Group had no pledged assets[122](index=122&type=chunk) [Listing Status and Significant Matters](index=21&type=section&id=Latest%20Developments%20in%20Listing%20Status) The company's shares have been suspended from trading on the Stock Exchange since May 13, 2022, due to a reverse takeover ruling, and to meet resumption guidance, the company announced a new significant acquisition of 59% equity in Guangzhou Xiangjing Cemetery, which also constitutes a reverse takeover requiring a new listing application - The company's shares have been suspended from trading on the Stock Exchange since **May 13, 2022**[153](index=153&type=chunk)[132](index=132&type=chunk) - The Stock Exchange Listing Committee ruled that the company's previous series of acquisitions and disposals constituted a reverse takeover (RTO) under the Listing Rules[12](index=12&type=chunk)[13](index=13&type=chunk)[154](index=154&type=chunk) - To satisfy the resumption guidance, the company entered into an agreement on **November 21, 2023**, to acquire **59% equity** in Guangzhou Xiangjing Cemetery, which constitutes a very substantial acquisition, connected transaction, and reverse takeover, requiring the company to be treated as a new listing applicant[131](index=131&type=chunk)[156](index=156&type=chunk)[94](index=94&type=chunk) - During the reporting period, the company, through a repurchase offer, exchanged and cancelled approximately **120 million** of its shares for shares in its wholly-owned subsidiary, Guoyao Holdings, resulting in Guoyao ceasing to be a subsidiary of the company[71](index=71&type=chunk)[160](index=160&type=chunk) [Corporate Governance](index=26&type=section&id=Corporate%20Governance) [Compliance Status](index=26&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company is committed to maintaining high corporate governance standards, complying with applicable provisions of the Corporate Governance Code during the reporting period, except for code provision A.2.1, and all directors confirmed compliance with the standard code for securities transactions - Except for code provision A.2.1, the company has complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules during the reporting period[18](index=18&type=chunk) - All Directors have confirmed full compliance with the standard code for securities transactions by Directors during the reporting period[170](index=170&type=chunk) - During the reporting period, neither the company nor any of its subsidiaries repurchased, redeemed, or sold any of the company's listed securities[161](index=161&type=chunk) [Audit Committee](index=26&type=section&id=Audit%20Committee) The company has established an Audit Committee comprising three independent non-executive directors, responsible for reviewing financial reporting, risk management, and internal controls, and this period's interim financial results, though unaudited by external auditors, were reviewed and approved by the committee - The Audit Committee is composed of **three independent non-executive directors** and is responsible for reviewing financial reporting, risk management, and internal controls[140](index=140&type=chunk) - The Group's interim financial results were unaudited but have been reviewed and approved by the Audit Committee[164](index=164&type=chunk)[19](index=19&type=chunk)

Financial Performance - The company's revenue for the fiscal year ending March 31, 2023, increased by 42.2% to approximately HKD 489.5 million, up from HKD 344.2 million in the previous year[15]. - The concrete pouring business generated revenue of approximately HKD 480.5 million, representing a 45.3% increase from HKD 330.7 million in the previous year[15]. - The overall gross profit for the year was approximately HKD 54.9 million, compared to HKD 45.6 million in the previous year, with a gross margin of 11.2%[18][19]. - The company recorded a profit attributable to owners of the company of HKD 21.1 million, a turnaround from a loss of HKD 22.7 million in the previous year[7]. - Other income increased significantly to approximately HKD 6.8 million from HKD 0.1 million in the previous year, primarily due to increased government subsidies[20]. - The group's profit from continuing operations for the year was approximately HKD 21.1 million, a turnaround from a loss of HKD 22.7 million in the previous year, primarily due to an increase in concrete pouring business revenue of approximately HKD 149.8 million and a subsidy of HKD 6.5 million from the Hong Kong government[27]. Project and Business Expansion - The company has secured 27 construction projects valued at approximately HKD 1.2243 billion, with 25 projects already underway generating revenue[13]. - The company plans to expand its concrete pouring and related services in Hong Kong to maintain stable revenue sources in the coming year[8]. - The company is actively seeking additional construction projects and has submitted bids for 15 projects as of the report date[14]. - The loan financing business contributed approximately HKD 9 million to the company's revenue, amidst a competitive market[14]. Cost Management and Financial Stability - Administrative and other operating expenses decreased by 11.7% to approximately HKD 25 million compared to HKD 28.3 million in the previous year[21]. - Financial asset impairment losses for the year were approximately HKD 11.2 million, a significant reduction from HKD 35.4 million in the previous year[22]. - The group's financing costs decreased by 25.0% to approximately HKD 300,000 from HKD 400,000 in the previous year[23]. - The income tax expense for the year was approximately HKD 4.1 million, down from HKD 4.4 million in the previous year[25]. - As of March 31, 2023, the group's cash and bank balances were approximately HKD 203.5 million, compared to HKD 200.4 million in the previous year[30]. - The current ratio as of March 31, 2023, was 5.5, down from 6.0 in the previous year, indicating a decrease in liquidity[34]. - The capital debt ratio as of March 31, 2023, was 0.7%, a decrease from 1.4% in the previous year, reflecting improved financial stability[37]. - The group had no borrowings as of March 31, 2023, maintaining a debt-free status compared to the previous year[32]. - The total employee cost for the year was approximately HKD 153.7 million, a slight decrease from HKD 161.5 million in the previous year, with the number of employees increasing to 441 from 293[43]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and business ethics to enhance performance and protect shareholder interests[76]. - The company adopted the corporate governance code as per the listing rules and complied with applicable code provisions for the year ending March 31, 2023[77]. - All directors confirmed compliance with the standard code of conduct for securities trading throughout the year[78]. - The board is responsible for developing and reviewing corporate governance policies and practices, ensuring effective implementation[81]. - The company has a strong management team with over 30 years of experience in the concrete pouring and related industries[68]. - The independent non-executive directors bring extensive legal and financial expertise, enhancing the board's oversight capabilities[69][72]. - The company has a dedicated company secretary with a focus on capital markets and corporate finance matters[73]. - The board regularly reviews training and professional development for directors and senior management[81]. - The company emphasizes compliance with legal and regulatory requirements in its governance practices[81]. - The board monitors adherence to the corporate governance code and the disclosures in the corporate governance report[81]. Risk Management - The company has established a risk management framework that identifies, assesses, and manages key business risks, ensuring effective risk mitigation and control according to the group's risk tolerance[120]. - The board is responsible for reviewing and evaluating the effectiveness and adequacy of the group's risk management and internal control systems[122]. - The risk management committee is tasked with formulating risk management strategies and providing recommendations to the board, including reviewing key risks and risk mitigation measures[114]. - The company has engaged an external consultant for an annual review of its risk management and internal control systems, with no significant issues identified[120]. - The board continuously monitors the overall risk management and internal control systems to safeguard shareholder interests and company assets[118]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers the group's performance from April 1, 2022, to March 31, 2023, focusing on two main businesses: concrete pouring services and loan financing in Hong Kong[133]. - The report adheres to the Hong Kong Stock Exchange's guidelines, ensuring compliance with mandatory disclosure requirements and key performance indicators[135]. - The company aims to expand its concrete pouring business market share in Hong Kong, driven by anticipated large-scale construction projects such as the Hong Kong International Airport Three Runway System and the Kai Tak Development Plan[139]. - The board emphasizes the importance of sustainable development and plans to integrate sustainability further into its core strategy to address future challenges[140]. - The company has identified five key areas of importance for its operations, which will help address potential obstacles and prepare for future challenges[152]. - The company is committed to responsible business practices and will consider sustainability in future investment decisions[143]. - The company aims to create shared sustainable development value for stakeholders and the community while minimizing negative environmental impacts[143]. Climate Change and Emissions - The company recognizes the severe threats posed by climate change and is considering TCFD recommendations to enhance governance processes and integrate climate-related risks into risk assessments[187]. - Identified acute climate risks include increased severity of extreme weather events such as cyclones and hurricanes, potentially disrupting local infrastructure and supply chains[189]. - Chronic climate risks are expected to raise capital, operational, and insurance costs over the long term due to changes in climate patterns[189]. - The company anticipates increased procurement spending to introduce new and alternative technologies during the transition period[189]. - Stricter environmental laws and carbon pricing systems are projected to increase operational costs in the short to medium term[189]. - The company may face revenue declines if it fails to develop strategies to meet higher environmental demands from customers during the transition period[189]. - Stakeholder concerns regarding climate-related issues could negatively impact investor sentiment, affecting the company's stock price and market value, thereby increasing liquidity risks[189]. - The company has implemented emergency plans to address potential negative impacts from extreme weather events on daily operations[190]. - The company is committed to adhering to all relevant environmental regulations and guidelines while actively promoting electrification development[190].

[Company Overview and Performance Summary](index=1&type=section&id=Company%20Overview%20and%20Performance%20Summary) This section summarizes the company's annual financial performance and balance sheet position [Financial Performance Summary](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group achieved a 42.2% revenue growth from continuing operations and swung to a profit of HKD 21.103 million for the year ended March 31, 2023 Consolidated Income Statement Key Data (Continuing Operations) | Metric | 2023 (HKD Thousands) | 2022 (HKD Thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 489,525 | 344,173 | +42.2% | | Gross Profit | 54,943 | 45,617 | +20.4% | | Profit/(Loss) for the Year | 21,103 | (22,709) | Swung to Profit | | Basic Earnings Per Share (HK Cents) | 2.12 | (2.11) | Swung to Profit | - The Board does not recommend any dividend for the years ended March 31, 2023 and 2022[24](index=24&type=chunk)[47](index=47&type=chunk) - In FY2022, discontinued operations recorded a significant **HKD 136 million loss**, primarily from the three disposed business segments: new energy vehicles and logistics, remittance and foreign exchange services, and property development[100](index=100&type=chunk)[28](index=28&type=chunk) [Balance Sheet Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2023, the Group's total assets and equity slightly increased, with strong net current assets indicating robust short-term solvency Consolidated Statement of Financial Position Summary | Metric | 2023 (HKD Thousands) | 2022 (HKD Thousands) | | :--- | :--- | :--- | | Non-current Assets | 9,715 | 9,606 | | Current Assets | 726,503 | 693,620 | | Current Liabilities | 131,749 | 115,990 | | Net Assets | 604,159 | 583,302 | | Total Equity | 604,159 | 583,302 | - As at March 31, 2023, the company's current ratio (current assets/current liabilities) was **5.5 times**, compared to **6.0 times** in the prior year, with the Board deeming working capital levels sufficient for future operations[52](index=52&type=chunk) [Business and Financial Review](index=25&type=section&id=Business%20and%20Financial%20Review) This section provides a detailed review of the Group's core business operations, financial performance, regulatory status, and corporate governance [Business Review](index=25&type=section&id=Business%20Review) The Group's core businesses are concrete pouring and loan financing, with the former adopting an asset-light strategy and the latter contributing new revenue streams - The Group's principal businesses are: (i) providing concrete pouring and ancillary services for building and infrastructure projects; and (ii) providing loan financing services in Hong Kong[17](index=17&type=chunk) - The concrete pouring business adopts an asset-light strategy, having been awarded **27 construction projects** with a total contract value of approximately **HKD 1.2243 billion** by year-end[17](index=17&type=chunk)[18](index=18&type=chunk) - The loan financing business, as a new revenue source, contributed approximately **HKD 9 million** in revenue this year[20](index=20&type=chunk) [Financial Review](index=26&type=section&id=Financial%20Review) The Group's revenue from continuing operations grew significantly, achieving profitability due to increased concrete business, government subsidies, and reduced impairment losses, maintaining a strong financial position - Revenue from continuing operations increased by **42.2%** year-over-year to **HKD 489.5 million**, primarily driven by a **45.3%** surge in concrete pouring business revenue to **HKD 480.5 million**[44](index=44&type=chunk) - Gross profit was approximately **HKD 54.9 million**, but the gross profit margin decreased from **13.3%** in the previous year to **11.2%** this year[200](index=200&type=chunk)[201](index=201&type=chunk) - The Group swung to profitability this year, primarily attributable to: (i) increased revenue and profit from the concrete business; (ii) receipt of approximately **HKD 6.5 million** in government employment support scheme subsidies; and (iii) a significant reduction in net impairment loss on financial assets by approximately **HKD 24.2 million**[46](index=46&type=chunk) Liquidity and Capital Structure | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Cash and Bank Balances | HKD 203.5 million | HKD 200.4 million | | Borrowings | Nil | Nil | | Current Ratio | 5.5 times | 6.0 times | | Gearing Ratio | 0.7% | 1.4% | [Listing Status and Regulatory Matters](index=30&type=section&id=Latest%20Developments%20on%20Listing%20Status) The company's shares remain suspended from trading due to the SEHK's reverse takeover ruling, requiring compliance with resumption guidance for trading to resume - The company's shares have been suspended from trading on the SEHK since **May 13, 2022**[65](index=65&type=chunk)[74](index=74&type=chunk) - The SEHK determined that the company's 2021 disposals and prior acquisitions constituted a reverse takeover, aiming to circumvent new listing requirements, a decision upheld by both the Listing Committee and Listing Review Committee[61](index=61&type=chunk)[62](index=62&type=chunk)[66](index=66&type=chunk)[68](index=68&type=chunk) - The SEHK has issued resumption guidance, requiring the company to comply with relevant listing rules and disclose all material information for investor evaluation[69](index=69&type=chunk) [Post-Reporting Period Events](index=32&type=section&id=Post-Reporting%20Period%20Events) Subsequent to the reporting period, the Board proposed a share repurchase offer on April 28, 2023, potentially leading to the disposal of a wholly-owned subsidiary - On **April 28, 2023**, the Board proposed to repurchase and cancel up to **120 million shares**, representing approximately **10.96%** of the issued share capital[76](index=76&type=chunk) - The consideration for the repurchase offer is shares in the wholly-owned subsidiary, Guoyao Holdings Limited, which, if fully accepted, would constitute a de facto disposal of Guoyao[76](index=76&type=chunk) [Corporate Governance](index=33&type=section&id=Corporate%20Governance) The company largely complied with the Corporate Governance Code, though the Chairman and CEO roles remained unseparated, with robust risk management systems in place - The company deviated from Corporate Governance Code provision A.2.1, as the roles of Chairman and Chief Executive Officer are not separated, with the CEO position vacant since **November 2021**[82](index=82&type=chunk)[84](index=84&type=chunk) - The Audit Committee, comprising three independent non-executive directors, approved the consolidated annual financial statements for the current year[86](index=86&type=chunk)[87](index=87&type=chunk) - The Board is responsible for establishing and reviewing risk management and internal control systems, with external consultants conducting annual reviews that identified no material issues[89](index=89&type=chunk)[93](index=93&type=chunk) [Notes to the Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on segment information, discontinued operations, and key financial statement line items including receivables, contract balances, and share capital [Segment Information](index=8&type=section&id=4.%20Segment%20Information) The Group's continuing operations are segmented into concrete pouring and loan financing, with concrete pouring being the primary revenue and profit driver, all from Hong Kong Segment Revenue and Results (Continuing Operations - For the Year Ended March 31, 2023) | Segment | Revenue from External Customers (HKD Thousands) | Segment Profit (HKD Thousands) | | :--- | :--- | :--- | | Concrete Pouring | 480,543 | 32,910 | | Loan Financing | 8,982 | 8,912 | | **Subtotal** | **489,525** | **41,822** | - The Group's operating and reportable segments are: (i) concrete pouring and other ancillary services in Hong Kong; and (ii) loan financing in Hong Kong[189](index=189&type=chunk) - All revenue and non-current assets from continuing operations are located in Hong Kong[157](index=157&type=chunk) [Discontinued Operations](index=16&type=section&id=11.%20Discontinued%20Operations) In FY2022, the Group terminated three business segments, including new energy vehicles and real estate development, resulting in a total loss of HKD 136 million for the year - Between October 2021 and February 2022, the Group disposed of three business segments: new energy vehicles and logistics, remittance and foreign exchange, and property development, which were classified as discontinued operations[25](index=25&type=chunk)[26](index=26&type=chunk)[178](index=178&type=chunk) Discontinued Operations Loss Analysis (For the Year Ended March 31, 2022) | Business Segment | Loss for the Year (HKD Thousands) | | :--- | :--- | | New Energy Vehicles and Logistics and Finance Lease Services | (67,065) | | Remittance and Foreign Exchange Services | (6,596) | | Property Development | (62,809) | | **Total** | **(136,470)** | [Loans and Interest Receivables](index=18&type=section&id=12.%20Loans%20and%20Interest%20Receivables) Net loans and interest receivables decreased to HKD 147.3 million as of March 31, 2023, with a significant portion being unsecured and an overdue loan secured by industrial property Loans and Interest Receivables | Item | 2023 (HKD Thousands) | 2022 (HKD Thousands) | | :--- | :--- | :--- | | Loans Receivable | 140,508 | 155,000 | | Interest Receivable | 7,575 | 8,645 | | Loss Allowance | (809) | (739) | | **Net** | **147,274** | **162,906** | - Approximately **HKD 60 million** in loans receivable are overdue, secured by a first legal charge over Hong Kong industrial property, with an annual interest rate of **12%**[184](index=184&type=chunk)[193](index=193&type=chunk) - Approximately **HKD 76.61 million** in loans receivable are unsecured, bearing annual interest rates ranging from **6% to 12%**[30](index=30&type=chunk) [Trade and Other Receivables](index=19&type=section&id=13.%20Trade%20and%20Other%20Receivables) Total trade and other receivables reached HKD 300.2 million, including a significant amount from the Grenada government with a recognized impairment loss Composition of Trade and Other Receivables | Item | 2023 (HKD Thousands) | 2022 (HKD Thousands) | | :--- | :--- | :--- | | Net Trade Receivables | 161,856 | 129,029 | | Net Other Receivables | 138,337 | 143,537 | | **Total** | **300,193** | **272,566** | - Due to the Grenada government's termination of a land acquisition agreement, funds are refundable to the Group, with an estimated recoverable amount of approximately **HKD 129 million** and an accumulated impairment loss of approximately **HKD 26.5 million** recognized[33](index=33&type=chunk) - The Group has recognized a loss allowance of **HKD 6.472 million** for trade receivables, compared to nil in the prior year[186](index=186&type=chunk)[196](index=196&type=chunk) [Contract Assets and Liabilities](index=21&type=section&id=14.%20Contract%20Assets%20and%20Liabilities) Contract assets significantly increased to HKD 79.44 million, primarily from construction, while contract liabilities substantially decreased, reflecting changes in performance obligations Contract Assets and Liabilities Balances | Item | 2023 (HKD Thousands) | 2022 (HKD Thousands) | | :--- | :--- | :--- | | Contract Assets - Construction | 79,438 | 55,715 | | Contract Liabilities - Construction | 4,823 | 16,747 | - Contract assets increased by **HKD 276 million** from operations during the year, with **HKD 252 million** of contract assets transferred to receivables[3](index=3&type=chunk) [Share Capital](index=22&type=section&id=16.%20Share%20Capital) As of March 31, 2023, the company's issued and fully paid ordinary share capital remained unchanged at HKD 10.954 million, with no new shares issued during the period Share Capital Structure | Item | Number of Shares | Amount (HKD Thousands) | | :--- | :--- | :--- | | Authorized Ordinary Shares | 2,000,000,000 | 20,000 | | Issued and Fully Paid Ordinary Shares (as at March 31, 2023) | 1,095,388,000 | 10,954 | - Due to the vendor's failure to fulfill conditional agreement terms, the Group did not release **101,973,340 consideration shares**, which remained uncancelled as of the reporting period end[10](index=10&type=chunk)

Revenue and Profitability - The company's revenue from continuing operations increased by 265.5% to approximately HKD 246.0 million, compared to HKD 67.3 million in the previous period[9]. - Revenue from concrete pouring services was approximately HKD 242.2 million, up 282.7% from HKD 63.3 million in the previous period, driven by an increase in project amounts and the number of ongoing projects[9]. - The company reported a net profit of approximately HKD 16.3 million from continuing operations, compared to a net loss of HKD 8.0 million in the previous period[17]. - Gross profit for the same period was HKD 34,863,000, compared to a gross loss of HKD 9,229,000 in the previous year, indicating a turnaround in profitability[52]. - The company reported a profit before tax of HKD 21,517,000, compared to a loss of HKD 6,775,000 in the prior year, marking a substantial improvement[52]. - Net profit attributable to the owners of the company for the period was HKD 16,294,000, a recovery from a loss of HKD 44,953,000 in the previous year[55]. Expenses and Costs - The overall gross profit for the reporting period was approximately HKD 34.9 million, with a gross profit margin of 14.2%, down from 16.1% in the previous period[10]. - Administrative and other operating expenses decreased by 20.0% to approximately HKD 9.2 million from HKD 11.5 million in the previous period[12]. - Employee costs, including director remuneration, were approximately HKD 78.0 million, an increase from HKD 61.8 million in the previous period[27]. - The group incurred administrative and operating expenses of HKD 25,567,000 during the reporting period[120]. Financial Position - As of September 30, 2022, the group's cash and cash equivalents were approximately HKD 172.7 million, down from HKD 200.4 million as of March 31, 2022[20]. - The group had loans and receivables amounting to approximately HKD 189.5 million as of September 30, 2022, compared to HKD 162.9 million as of March 31, 2022[20]. - The group's debt-to-equity ratio was 0.9% as of September 30, 2022, a decrease from 1.4% as of March 31, 2022[21]. - The company reported a total equity of HKD 599,346,000 as of September 30, 2022, up from HKD 583,302,000 as of March 31, 2022, representing an increase of approximately 2.18%[60]. - The company’s current liabilities totaled HKD 136,538,000 as of September 30, 2022, compared to HKD 115,900,000 as of March 31, 2022, reflecting an increase of approximately 17.8%[59]. - The total liabilities as of September 30, 2022, were HKD 138,686,000, up from HKD 119,924,000 as of March 31, 2022[93]. Cash Flow - The net cash used in operating activities for the six months ended September 30, 2022, was HKD (27,005,000), compared to HKD (14,918,000) for the same period in 2021, indicating a decline in cash flow from operations[69]. - The company experienced a net cash outflow from financing activities of HKD (2,059,000) for the six months ended September 30, 2022, compared to a significant inflow of HKD 51,478,000 in the previous year[69]. - The net cash used in investment activities was HKD 1,971,000 for the six months ended September 30, 2022, a significant improvement from HKD (16,126,000) in the same period of the previous year[69]. Projects and Future Outlook - The company has been awarded 22 construction projects with a total contract value of approximately HKD 999 million, with 21 projects already generating revenue during the reporting period[5]. - The company is actively discussing with several major subcontractors to secure more engineering projects in the foreseeable future[6]. - Management remains optimistic about the recovery of the local economy and plans to focus on construction projects to maintain profitability and protect shareholder interests[19]. - The company has submitted bids for five construction projects as of the report date[6]. Shareholder Information - The number of issued and fully paid ordinary shares increased to 1,095,388,000 as of September 30, 2022[128]. - Prestige Rich Holdings Limited holds 609,100,000 shares, representing 55.61% of the company's equity, with Mr. Zhang being the beneficial owner[141]. - As of September 30, 2022, the total shareholding of Mr. Zhang Jinbing, the chairman and executive director, is 633,600,000 shares, accounting for 57.85% of the total equity[138]. Risk Management - The company is closely monitoring foreign exchange risks, particularly related to USD, due to its operations in multiple jurisdictions[26]. - The company has maintained its risk management policies since the year-end, focusing on interest rate risk, credit risk, and liquidity risk[75]. - There were no changes in the financial risk management policies since the last reporting period[75]. Corporate Governance - The audit committee has reviewed and approved the interim financial results, ensuring compliance with applicable accounting standards and regulations[146]. - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[144]. - The company has complied with the Corporate Governance Code during the reporting period, except for one specific provision[144].