Vico International Holdings Limited 域 高 國 際 控 股 有 限 公 司 (於開曼群島註冊成立的有限公司) 股份代號：1621 0 2021 / 2022 年 報 @ 目 錄 公司資料 2 主席報告書 3 管理層討論及分析 4 董事及高級管理層履歷詳情 10 環 境、社 會 及 管 治 報 告 16 企業管治報告 47 董事會報告 63 獨立核數師報告 75 綜合損益及其他全面收益表 80 綜合財務狀況表 81 綜合權益變動表 83 綜合現金流量表 84 綜合財務報表附註 86 財務概要 144 公司資料 董事會 非執行董事 王俊文先生 獨立非執行董事 梁浩志先生 陳政深先生 謝湧海先生 開曼群島證券登記及過戶總處 審核委員會 梁浩志先生（主 席） 陳政深先生 謝湧海先生 核數師 薪酬委員會 梁浩志先生（主 席） 許業豪先生 謝湧海先生 提名委員會 授權代表 許業豪先生 江文豪先生 執行董事 許沛盛先生（主 席） 湯敏華女士 許業豪先生（行 政 總 裁） 許穎雯女士 江文豪先生 註冊辦事處 Second Floor, Century Yard, Cricket Squar ...

Financial Performance - The group's revenue for the period was approximately HKD 622.2 million, an increase of 60.4% compared to HKD 387.9 million in the corresponding period[46]. - The gross profit for the period was approximately HKD 27.5 million, reflecting a slight increase of 2.3% from the previous period[40]. - The net profit for the period was approximately HKD 10.2 million, a decrease of 20.5% compared to the previous period, primarily due to a reduction in other income related to government pandemic relief measures[40]. - Revenue for the six months ended September 30, 2021, was HKD 622,171 thousand, an increase of 60.4% compared to HKD 387,920 thousand in the same period of 2020[106]. - Gross profit for the same period was HKD 27,474 thousand, slightly up from HKD 26,861 thousand, indicating a gross margin improvement[106]. - The net profit for the six months was HKD 10,233 thousand, down 20.4% from HKD 12,870 thousand in the previous year[106]. - Basic and diluted earnings per share were HKD 1.02, compared to HKD 1.29 in the prior year[106]. - The total segment profit for the group was HKD 23,940,000, compared to HKD 28,699,000 in the same period last year, indicating a decrease of 16.5%[135]. - The company reported a pre-tax profit of HKD 11,601,000 for the six months ended September 30, 2021, down from HKD 15,029,000 in the previous year[135]. - The company reported a net profit of HKD 10,233,000 for the six months ended September 30, 2021, compared to HKD 12,870,000 for the same period in 2020, representing a decrease of 20.5%[160]. Revenue Breakdown - Diesel sales generated revenue of approximately HKD 578.2 million during the period, accounting for 92.9% of total revenue[47]. - Revenue from lubricating oil sales was approximately HKD 25,100,000, representing 4.0% of total revenue, compared to HKD 23,500,000 and 6.1% in the corresponding period[48]. - Revenue from fleet card services increased by approximately HKD 3,700,000 or 31.9% to about HKD 15,500,000, driven by local economic recovery[49]. - Revenue from other products, mainly lubricants and eco-friendly automotive urea, was approximately HKD 3,300,000, accounting for 0.5% of total revenue, compared to HKD 1,700,000 and 0.4% in the corresponding period[51]. - Diesel sales contributed HKD 578,245,000, up 64.5% from HKD 350,947,000 year-on-year[130]. - Fleet card service revenue increased to HKD 15,476,000, representing a 31.5% growth compared to HKD 11,733,000 in the previous year[130]. - Lubricant sales rose to HKD 25,137,000, a 6.9% increase from HKD 23,512,000 in the prior period[130]. - Major customer A1 contributed HKD 126,336,000 to revenue, up from HKD 90,190,000 in the previous year, reflecting a growth of 40%[147]. Expenses and Costs - Sales costs increased by 64.7% to approximately HKD 594,700,000, compared to HKD 361,100,000 in the corresponding period[52]. - Administrative and other operating expenses rose by approximately HKD 2,000,000 or 17.3% to about HKD 13,800,000, mainly due to increased depreciation and employee costs[55]. - Financing costs increased by approximately HKD 40,000 or 9.2% to HKD 474,000, compared to HKD 434,000 in the corresponding period[57]. - Income tax expenses decreased by approximately HKD 800,000 or 36.6% to about HKD 1,400,000, primarily due to a reduction in profit before tax[58]. - Depreciation of property, plant, and equipment was HKD 3,809,000, an increase from HKD 3,217,000 in the previous year, indicating higher asset utilization[157]. - Interest expenses for bank borrowings increased to HKD 442,000 from HKD 384,000, indicating a rise in financing costs[151]. Assets and Liabilities - As of September 30, 2021, the group recorded net current assets of approximately HKD 81,600,000, compared to HKD 79,600,000 as of March 31, 2021[67]. - As of September 30, 2021, the group's current assets amounted to approximately HKD 128.3 million, slightly up from HKD 128.2 million on March 31, 2021[68]. - The group's current liabilities were approximately HKD 46.6 million, down from HKD 48.6 million as of March 31, 2021[68]. - The current ratio increased to 2.75 as of September 30, 2021, compared to 2.64 on March 31, 2021[68]. - The debt-to-equity ratio was 18.8% as of September 30, 2021, a slight improvement from 19.1% on March 31, 2021[68]. - The group's capital structure remained unchanged during the period, with equity attributable to owners amounting to approximately HKD 205.4 million[69]. - The group had no significant capital commitments outside of the balance sheet as of September 30, 2021[70]. - The group pledged leasehold land and buildings valued at HKD 62.8 million and investment properties valued at HKD 31.4 million for bank borrowings[72]. - Total assets as of September 30, 2021, were HKD 128,279 thousand, a slight increase from HKD 128,235 thousand as of March 31, 2021[109]. - Non-current assets increased to HKD 128,534 thousand from HKD 117,671 thousand, reflecting ongoing investments in fixed assets[109]. - The company’s total equity rose to HKD 205,358 thousand from HKD 195,125 thousand, indicating a strengthening balance sheet[109]. Operational Strategies and Future Outlook - The company aims to expand its business and trade cooperation in more Asian countries due to strong demand for lubricants and petrochemical products[43]. - The acquisition of a multifunctional warehouse in Tsuen Wan is expected to enhance productivity through industrial improvements[43]. - The supply of automotive urea is currently tight, posing challenges to the company's business development[44]. - The company has demonstrated flexibility in managing production equipment and tools, enhancing its risk management capabilities amid COVID-19 challenges[44]. - The company continues to focus on expanding its diesel sales and fleet card services as key growth areas[134]. - The company is committed to maintaining its operational strategies and exploring new market opportunities[134]. Corporate Governance and Shareholder Information - The group adhered to all corporate governance codes during the reporting period[78]. - Major shareholder Jun Long holds 730,000,000 shares, representing approximately 73% of the company's issued share capital[89]. - The maximum number of shares that can be issued under the share option scheme is capped at 100,000,000 shares, which is 10% of the total shares issued on the listing date[99]. - The company has not granted any share options since the adoption of the share option scheme[99].

Financial Performance - The group's revenue, gross profit, and net profit for the year ended March 31, 2021, were approximately HKD 816.4 million, HKD 47.2 million, and HKD 18.3 million, representing a decrease of 21.9%, an increase of 0.6%, and an increase of 14.4% respectively compared to the previous year[23]. - The group's revenue for the period was HKD 816,400,000, a decrease of 21.9% compared to HKD 1,045,300,000 in the corresponding period[27]. - Revenue from diesel sales was approximately HKD 734,700,000, accounting for 90.0% of total revenue, with sales volume increasing by about 16.49% to 273,510,000 liters[28]. - Revenue from lubricants was approximately HKD 49,000,000, representing 6.0% of total revenue, with sales volume decreasing by about 12.8% to 3,400,000 liters[29]. - Fleet card service revenue was approximately HKD 28,900,000, accounting for 3.5% of total revenue, an increase from HKD 26,200,000 in the corresponding period[32]. - Total sales cost was approximately HKD 769,200,000, a decrease of about 23.0% compared to HKD 998,400,000 in the corresponding period[34]. - Gross profit increased by approximately HKD 300,000 or 0.6% to about HKD 47,200,000, with a gross margin rising from 4.5% to 5.8%[35]. - Net profit for the period was approximately HKD 18,300,000, an increase of 14.4% from HKD 16,000,000 in the corresponding period, with a net profit margin rising to 2.2%[41]. Business Operations and Strategy - The group managed a total of 50,606 fleet card accounts as of March 31, 2021, compared to 38,380 accounts in the previous year, indicating a significant growth in user data[22]. - The group remains optimistic about future profitability due to reduced procurement costs from the decline in international oil prices, which is seen as a favorable factor for business operations[18]. - The company plans to expand its business into Malaysia and Vietnam, capitalizing on strong demand for lubricants and other petroleum products in the Asian market[24]. - The successful development of vaccines is expected to contribute to the recovery of the global economy and the group's business activities, with a positive outlook for the second half of 2021[19]. - The group has upgraded its multifunctional warehouse in Tsuen Wan, which has significantly improved productivity and operational efficiency[24]. - The group aims to enhance its operational mechanisms and organizational structure to seize economic opportunities and maintain a competitive edge in the market[19]. - The company is committed to continuous self-improvement and actively seeks to recruit talent to strengthen its market leadership[19]. Financial Position and Capital Structure - The group recorded a net current asset value of approximately HKD 79,600,000 as of March 31, 2021, down from HKD 90,900,000 a year earlier[49]. - As of March 31, 2021, the group's current assets were approximately HKD 128.2 million, a decrease from HKD 130.3 million in 2020, with cash balances at HKD 55.2 million and trade receivables at HKD 64.7 million[50]. - The group's current liabilities amounted to approximately HKD 48.6 million, up from HKD 39.4 million in 2020, including trade payables of HKD 5.1 million and bank borrowings of HKD 35.4 million[50]. - The current ratio as of March 31, 2021, was 2.6, down from 3.3 in 2020, indicating a decrease in liquidity[50]. - The debt-to-equity ratio was 19.1% as of March 31, 2021, slightly up from 18.5% in 2020, reflecting a marginal increase in leverage[50]. - The net proceeds from the share issuance were approximately HKD 53.2 million, with allocations for new storage facilities, vehicle purchases, and talent retention[62]. - Capital expenditures for property, plant, and equipment during the period were HKD 27 million[55]. - The group provided a guarantee of HKD 4 million to a supplier through bank financing as of March 31, 2021[56]. - The group mortgaged its leased land and buildings valued at HKD 63.9 million and investment properties at HKD 32.1 million for bank borrowings[57]. - The group has no significant foreign exchange risk due to the peg of the Hong Kong dollar to the US dollar, with minimal transactions and currency assets in USD[58]. - The group's capital structure remained unchanged during the period, with equity attributable to owners at approximately HKD 195.1 million[55]. Corporate Governance - The company has strengthened its internal controls and corporate governance policies to enhance operational transparency and accountability[71]. - The company has maintained compliance with all applicable corporate governance codes during the reporting period[90]. - The board of directors is committed to achieving high standards of corporate governance to protect shareholder interests and enhance corporate value[90]. - The company has adopted the corporate governance code as the basis for its governance practices[90]. - The company has established specific inquiries for all directors and relevant employees to ensure compliance with securities trading standards[92]. - The board regularly reviews the contributions of directors and their commitment to fulfilling their responsibilities[95]. - The company has a strong focus on transparency and accountability in its business strategies and policies[90]. - The company has appointed a new company secretary with over 15 years of experience in corporate services[87]. - The board includes independent non-executive directors with extensive experience in finance and governance[81][82]. - The company has a dedicated finance manager overseeing overall financial reporting and accounting activities[83]. - The company has maintained compliance with listing rules by appointing at least three independent non-executive directors, constituting one-third of the board[100]. - All independent non-executive directors have confirmed their independence in writing, and the company believes they all meet independence criteria[100]. - The term for non-executive directors, including independent non-executive directors, is one year, with re-election at the annual general meeting[101]. - The board is responsible for all significant matters, including company policies, strategies, budgets, and major transactions[105]. - The audit committee is composed of three independent non-executive directors, with a designated chairman[112]. - The company encourages all directors to participate in relevant training courses to enhance their knowledge and skills[106]. - The board has established three committees: audit committee, remuneration committee, and nomination committee, each with clearly defined terms of reference[110]. - The company ensures that all directors have access to necessary information and can seek independent professional advice when required[104]. - The Audit Committee held two meetings during the reporting period to review the annual financial performance and reports for the fiscal year ending March 31, 2020, and the interim financial performance for the six months ending September 30, 2020[115]. - The Remuneration Committee conducted one meeting to review the company's remuneration policy and structure, providing recommendations for salary adjustments for executive directors and senior management for the fiscal year ending March 31, 2021[116]. - The Nomination Committee held one meeting to assess the board's structure, size, and composition, considering the independence of non-executive directors and making recommendations for director appointments[119]. - The company aims to maintain a balanced level of diversity on the board, considering factors such as gender, age, culture, education background, professional qualifications, skills, knowledge, and industry experience[124]. - The board currently consists of nine directors, including five executive directors, one non-executive director, and three independent non-executive directors, achieving diversity in gender, age, and professional experience[125]. - The company recognizes the benefits of board diversity as a key factor in maintaining its competitive advantage[121]. - The Nomination Committee will continue to review the board diversity policy to ensure its effectiveness and relevance[125]. - The company has established a formal and transparent process for developing a remuneration policy and structure to ensure no director participates in determining their own remuneration[116]. - The Audit Committee's responsibilities include reviewing financial reporting, risk management, and internal control systems[115]. - The company is committed to ensuring that all levels of recruitment and selection have appropriate structures to consider diverse candidates[124]. - The company has adopted a director nomination policy to ensure a balanced skill set, experience, and diversity on the board[128]. - The board's corporate governance functions include reviewing and monitoring the training and continuous professional development of directors and senior management[134]. - The board confirms its responsibility for risk management and internal control systems, which aim to manage risks rather than eliminate them[137]. - The company has established multiple risk management procedures and guidelines to define implementation authority across key business processes[138]. - An external professional firm has been engaged to provide internal audit functions and independently review the adequacy and effectiveness of risk management and internal control systems[141]. - The board has reviewed the risk management and internal control systems and considers them effective and adequate as of March 31, 2021[141]. - The company has implemented monitoring procedures to strictly prohibit unauthorized access to and use of insider information[143]. - The company has a disclosure policy to ensure that insider information is released to the public in a timely and equal manner according to applicable laws and regulations[142]. - The board is aware of its responsibility for preparing the financial statements for the year ending March 31, 2021[144]. - The board is not aware of any significant uncertainties that may severely impact the company's ability to continue as a going concern[145]. Shareholder Communication - The company maintains effective communication with shareholders through various channels, ensuring their opinions and concerns are properly addressed[154]. - The company has established a shareholder communication policy that is regularly reviewed for effectiveness[154]. - The company’s board of directors is committed to engaging with shareholders during annual general meetings to address inquiries[159]. - The company’s secretary underwent no less than 15 hours of relevant professional training during the year ending March 31, 2021[153]. - The company has not declared any final dividend for the year ending March 31, 2021, compared to no dividend declared for the year 2020[168]. - As of March 31, 2021, the company had no distributable reserves, consistent with the previous year[176]. - The group’s main activities include the sale of diesel, lubricants, and other products, as well as providing fleet card services[166]. - The board of directors has reported on the audited consolidated financial statements for the period[165]. - The company’s shareholders communication policy ensures proper response to shareholder concerns and is reviewed regularly[162]. - The company’s capital structure details are provided in the consolidated financial statements[172]. - The group made no charitable donations during the period, similar to the previous year[177]. - The company’s bank borrowings details as of March 31, 2021, are included in the consolidated financial statements[171]. Director and Shareholder Interests - The board of directors consists of both executive and non-executive members, with specific terms of service contracts in place[181][183]. - The directors and senior management hold significant equity interests in the company, with each holding approximately 73% of the issued share capital[189]. - Junlong holds 730,000,000 shares, representing 73% of the company's issued share capital, making it the controlling entity under the Securities and Futures Ordinance[193]. - Mr. Xu and Ms. Tang each hold 35% of Junlong's shares, while Mr. Xu Yehao holds 30%[198]. - No other directors or senior executives have disclosed interests in the company's shares or related securities as of March 31, 2021[194]. - There are no significant transactions or contracts involving the company and its directors or related entities that would require disclosure under the Securities and Futures Ordinance[198]. - The company has not entered into any major contracts with its controlling shareholders for services provided[199].

| --- | --- | --- | |--------------------------------------------------------------------------------------------------|-------|-------------| | | | | | | | | | | | | | | | | | | | | | | | | | Vico International Holdings Limited 域 高 國 際 控 股 有 限 公 司 (於開曼群島註冊成立的有限公司) | | 中 期 報 告 | 2020 股份代號：1621 目 錄 公司資料 2 管理層討論及分析 4 其他資料 12 簡明綜合損益及其他全面收益表 20 簡明綜合財務狀況表 21 簡明綜合權益變動表 22 簡明綜合現金流量表 23 簡明綜合財務報表附註 25 1 域高國際控股有限公司 域高國際控股有限公司 二零二零年中期報告 二零二零年中期報告 公司資料 執行董事 許沛盛先生（主 席） 湯敏華女士 公司秘書 許業豪先生（行 政 總 裁） 許穎雯女士 江文豪先生 註冊辦事處 非執行董事 王 ...

Financial Performance - The group's revenue for the period was approximately HKD 1,045,300,000, a decrease of 2.9% compared to HKD 1,077,000,000 in the corresponding period[23]. - Diesel sales generated revenue of approximately HKD 959,000,000, accounting for 91.7% of total revenue, with sales volume increasing by 6.9% to 234,800,000 liters[24]. - Lubricant sales revenue increased by 44.4% to approximately HKD 55,500,000, representing 5.3% of total revenue[25]. - The group's gross profit rose by 3.3% to approximately HKD 46,900,000, with a slight increase in gross margin from 4.2% to 4.5%[30]. - Profit for the period decreased by 11.0% to approximately HKD 16,000,000, with a net profit margin decline from 1.7% to 1.5%[37]. - The sales cost for the period was approximately HKD 998,400,000, a decrease of 3.2% compared to the previous period[29]. Market and Operational Challenges - Despite the challenges posed by COVID-19, the company remains committed to capturing opportunities, particularly in supporting national key engineering projects that stimulate significant demand for oil products[18]. - The company acknowledges the impact of COVID-19 on local business activities, leading to a decrease in market demand for petrochemical products[15]. - The company is closely monitoring the effects of COVID-19 and will regularly review its operations, organizational structure, and financial status[15]. - The company has faced challenges due to social unrest and the COVID-19 pandemic but remains confident in its ability to navigate these difficulties[13]. - The international oil price remains uncertain, but the stable oil prices in the Hong Kong market have provided favorable conditions, reducing business costs and creating potential profit margins[14]. Corporate Governance - The company has adopted the corporate governance code as the basis for its governance practices, ensuring shareholder interests and enhancing transparency[74]. - The board believes that the company has complied with all applicable code provisions during the reporting period[75]. - The company has established specific inquiries for all directors and relevant employees to ensure compliance with the securities trading standards[76]. - The company has a strong focus on internal control policies and overall corporate management strategies[56]. - The board is collectively responsible for guiding and supervising the company's affairs to promote its success[89]. Board Composition and Diversity - The board consists of nine directors, including five executive directors, one non-executive director, and three independent non-executive directors as of March 31, 2020[80]. - The board includes two female directors, contributing to diversity in gender, age, culture, education background, professional experience, skills, and knowledge[109]. - The company has adopted a board diversity policy aimed at maintaining a balanced and suitable diversity perspective related to business growth[106]. - The Nomination Committee is responsible for evaluating the independence of independent non-executive directors and identifying qualified candidates for board membership[105]. - The company recognizes the benefits of board diversity and considers it a key factor in maintaining competitive advantage[106]. Financial Position and Liquidity - As of March 31, 2020, the group's current assets amounted to approximately HKD 130.3 million, an increase from HKD 118 million as of March 31, 2019, representing a growth of about 10.3%[45]. - The group's current liabilities were approximately HKD 39.4 million as of March 31, 2020, compared to HKD 23.1 million as of March 31, 2019, indicating an increase of approximately 70.5%[45]. - The current ratio as of March 31, 2020, was 3.3, down from 5.1 as of March 31, 2019, reflecting a decrease of about 35.3%[45]. - The debt-to-equity ratio as of March 31, 2020, was 18.5%, up from 8.0% as of March 31, 2019, indicating an increase of 131.3%[45]. - The group recorded a net current asset value of approximately HKD 90.9 million as of March 31, 2020, down from HKD 94.9 million as of March 31, 2019, a decrease of about 4.2%[44]. Shareholder Communication and Policies - The company maintains communication with shareholders through various channels and has established a shareholder communication policy[137]. - The company will present individual resolutions for each independent matter at the shareholders' meeting to safeguard shareholder interests[139]. - Shareholders can request a special general meeting if they hold at least 10% of the paid-up capital[140]. - The company has a policy for responding to shareholder inquiries and encourages detailed contact information for timely responses[145]. - The company has adopted a dividend policy without a predetermined payout ratio, subject to financial conditions and board recommendations[147]. Management and Executive Team - The company appointed Ms. Xu Yingwen as Executive Director on June 23, 2017, with five years of experience in business management[56]. - Mr. Jiang Wenhao was appointed as Executive Director on June 23, 2017, and has seven years of experience in sales and marketing[57]. - Mr. Wang Junwen has over 20 years of experience in finance and fintech, holding professional qualifications such as MRICS, AICPA, and CFA[60]. - The management team has a robust educational background, with degrees in economics, finance, and business management[56][61]. - The company emphasizes strategic leadership and innovation in financial optimization and capital markets[60].

Revenue and Sales Performance - The company's revenue for the six months ended September 30, 2019, was approximately HKD 591.2 million, an increase of 9.0% compared to HKD 542.5 million for the corresponding period[11]. - Diesel sales generated revenue of approximately HKD 542.6 million, accounting for about 91.8% of total revenue, with sales volume increasing by approximately 22.2% to about 130.2 million liters[12]. - Lubricant sales revenue increased to approximately HKD 30.6 million, representing about 5.2% of total revenue, with sales volume rising by 7.7% to about 1.4 million liters[15]. - Revenue from fleet card services rose by approximately 39.7% to about HKD 15.3 million, driven by promotional activities to attract more customers[16]. - Revenue for the six months ended September 30, 2019, was HKD 591,209,000, representing an increase of 8.9% from HKD 542,510,000 in the same period of 2018[88]. - Diesel sales contributed HKD 542,574,000, up 6.9% from HKD 507,332,000 in the previous year[138]. - Fleet card service revenue increased by 39.5% to HKD 15,336,000 from HKD 10,974,000[138]. - Lubricant sales rose by 40.6% to HKD 30,562,000 compared to HKD 21,721,000 in the prior period[138]. Profitability and Expenses - Gross profit increased by approximately 31.4% to about HKD 29.4 million, with gross profit margin reflecting the rise in selling prices[21]. - Profit for the period increased by approximately HKD 2,100,000 or 19.7% to about HKD 12,800,000, with net profit margins of approximately 2.2% and 2.0% for the current and prior periods, respectively[28]. - Profit before tax increased to HKD 15,416,000, compared to HKD 12,608,000 in the previous year, reflecting a rise of 22.6%[88]. - Net profit for the period was HKD 12,847,000, which is a 19.7% increase from HKD 10,734,000 in the prior year[88]. - Basic earnings per share rose to HKD 1.28, up from HKD 1.07, marking an increase of 19.6%[88]. - Administrative expenses increased by approximately 33.7% to about HKD 9.3 million, primarily due to higher legal and professional fees[23]. - Administrative expenses increased to HKD 9,328,000 from HKD 6,973,000, reflecting a rise of 33.8%[88]. - Financing costs increased by approximately HKD 181,000 or 90.5% to HKD 381,000 due to increased bank borrowings[24]. - Financing costs rose to HKD 381,000, compared to HKD 200,000 in the previous year, indicating an increase of 90.5%[88]. Assets and Liabilities - Current assets as of September 30, 2019, were approximately HKD 142,200,000, up from HKD 118,000,000 as of March 31, 2019[35]. - Current liabilities increased to approximately HKD 51,500,000 from HKD 23,100,000, with bank borrowings rising to approximately HKD 31,700,000 from HKD 13,600,000[35]. - The current ratio decreased to 2.76 from 5.1, while the debt-to-equity ratio increased to 31.0% from 13.9%[35]. - The group recorded a net asset value of approximately HKD 90,700,000 as of September 30, 2019, compared to HKD 94,900,000 as of March 31, 2019[34]. - The company’s total liabilities increased to HKD 51,491,000 as of September 30, 2019, compared to HKD 23,124,000 as of March 31, 2019, representing a significant increase of approximately 122.5%[90]. - As of September 30, 2019, the company's bank borrowings amounted to HKD 31,716,000, an increase from HKD 13,623,000 as of March 31, 2019, representing a growth of 132.7%[179]. - The company has short-term bank borrowings due within one year totaling HKD 3,210,000, compared to HKD 2,445,000 in the previous period, reflecting a 31.3% increase[179]. Cash Flow and Investments - Cash and cash equivalents increased to HKD 76,978,000 as of September 30, 2019, up from HKD 55,053,000 at the beginning of the period, marking a rise of approximately 39.5%[99]. - The net cash generated from operating activities was HKD 14,348,000 for the six months ended September 30, 2019, significantly higher than HKD 1,978,000 for the same period in 2018[96]. - The company raised new bank loans amounting to HKD 19,500,000 during the financing activities, compared to HKD 10,000,000 in the previous period[99]. - The group acquired property, plant, and equipment valued at HKD 8,141,000 during the period, significantly lower than HKD 56,397,000 in the same period last year[168]. Accounting Policies and Standards - The adoption of Hong Kong Financial Reporting Standard 16 resulted in a significant change in accounting policies, specifically the removal of the distinction between operating and finance leases, requiring recognition of right-of-use assets and lease liabilities for all leases except short-term and low-value leases[110]. - The Group's accounting policy changes did not have a significant impact on the financial performance and position for the current and prior periods[109]. - The Group's lease liabilities are presented as a separate line item in the consolidated financial statements, reflecting the present value of future lease payments[127]. - The transition to HKFRS 16 did not require restating comparative figures for the previous reporting period, which may limit comparability with prior financial statements[110]. Dividends and Share Capital - No interim dividend was recommended for the six months ended September 30, 2019[31]. - The company declared a final dividend of HKD 10,000,000 during the reporting period[93]. - The company has a total of 10,000,000,000 shares authorized and issued, maintaining the same number as of March 31, 2019[184].

Financial Performance - The company's revenue for the period reached HKD 1,077,000,000, representing a 30.1% increase from HKD 828,100,000 in the corresponding period[13] - Diesel sales generated revenue of approximately HKD 1,006,700,000, accounting for 93.5% of total revenue, with sales volume increasing by 14.4% to 219,600,000 liters[14] - Lubricant sales revenue was approximately HKD 43,700,000, representing 4.1% of total revenue, with sales volume decreasing by about 10% to 2,700,000 liters[15] - The gross profit for the period was approximately HKD 45,400,000, a decrease of 4.3% compared to the previous year[9] - The net profit for the period was approximately HKD 18,000,000, reflecting a significant increase of 163.9% from the previous year[9] - Profit for the period increased by 163.9% to approximately HKD 18,000,000, with net profit margin rising from 0.8% to 1.7%[27] - Sales costs increased by 32.1% to approximately HKD 1,031,600,000 from HKD 780,700,000, aligning with revenue trends[19] - Gross profit decreased from approximately HKD 47,500,000 to HKD 45,400,000, with a slight decline in gross margin from 5.7% to 4.2%[20] - Fleet card services generated revenue of approximately HKD 21,500,000 and HKD 23,200,000, accounting for 2.0% and 2.8% of total revenue respectively[16] - Revenue from other products, primarily asphalt and kerosene, was approximately HKD 5,100,000 and HKD 3,400,000, representing 0.5% and 0.4% of total revenue respectively[18] Operational Developments - The company acquired a large multifunctional site in Tsuen Wan to enhance production capacity and operational efficiency[10] - The company is optimistic about growth potential in Vietnam, a rapidly growing economy, and has begun selling lubricant products there[10] - The company expects continued demand for diesel and lubricants due to major infrastructure projects in Hong Kong[10] - The company is actively seeking potential sales destinations to expand its business scale[10] Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules, ensuring transparency and accountability[65] - The company has complied with all applicable code provisions of the corporate governance code during the reporting period[66] - The company has established a securities trading code for all directors and relevant employees, ensuring adherence to regulations throughout the reporting period[67] - The company is committed to maintaining high corporate governance standards to protect shareholder interests and enhance corporate value[65] - The independent non-executive directors play a crucial role in the audit and remuneration committees, ensuring objective decision-making[71] - The board consists of eight directors, including five executive directors and three independent non-executive directors[71] - The company has a dedicated company secretary with over 25 years of experience in providing corporate services[62] - The board regularly reviews the contributions of directors to ensure they are fulfilling their responsibilities adequately[68] - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, each with specific written terms of reference[100] - The chairman and the CEO roles are held by different individuals, ensuring a clear division of responsibilities[75] Risk Management and Compliance - The company confirmed the effectiveness of its risk management and internal control systems as of March 31, 2019, ensuring reasonable assurance against significant misstatements or losses[129] - The company has engaged an external professional firm to provide internal audit functions and independently review the adequacy and effectiveness of risk management and internal control systems[129] - The company has implemented monitoring procedures to strictly prohibit unauthorized access to and use of inside information[131] - The independent non-executive directors have reviewed the compliance of controlling shareholders with the non-competition agreement and found that they have adhered to its terms[140] - The company has established a disclosure policy to ensure that inside information is released to the public in a timely and equal manner according to applicable laws and regulations[130] Shareholder Relations - The company maintains communication with shareholders through various channels and has established a shareholder communication policy to ensure that shareholder concerns are addressed[142] - The company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance[149] - The board of directors is committed to responding to shareholder inquiries and maintaining dialogue through annual general meetings[149] - The company has a shareholder communication policy that is regularly reviewed for effectiveness[150] Board Diversity and Composition - The company has adopted a board diversity policy, recognizing the benefits of diversity and considering various factors such as gender, age, cultural background, and professional qualifications in its board composition[112] - The board aims to maintain a balanced and suitable level of diversity in line with the company's business growth, and will consider setting measurable targets to implement the board diversity policy[112] - The board of directors has delegated the responsibility of selecting and appointing directors to the nomination committee, which has established relevant selection criteria and processes[115] - The attendance record of directors at board meetings indicates full participation, with all directors attending 100% of the board meetings held during the reporting period[123] Compensation and Remuneration - The company has established a formal and transparent process for developing a compensation policy to ensure no director participates in determining their own remuneration[105] - The compensation committee held two meetings during the reporting period to review the company's compensation policies and provide recommendations on executive director and senior management compensation changes for the year ending March 31, 2020[105] Experience and Expertise - The group has over 47 years of experience in the sales and distribution of diesel, lubricants, and other petrochemical products[44] - The CEO has four years of experience in promoting fleet card business and sales of petrochemical products[48] - The marketing manager has four years of experience in sales and marketing, focusing on fleet card promotion[51] - The non-executive director has over 20 years of experience in finance and fintech, holding multiple professional qualifications[52] - The independent non-executive director has a master's degree in finance (investment management) and has been appointed to the audit and nomination committees[53] - The company’s management team has extensive experience, with key members having over 20 years in finance and operations[59][58] Share Capital and Ownership - Junlong holds a total of 750,000,000 shares, representing 75% of the company's issued share capital[181] - Mr. Xu and Ms. Tang each own 35% of Junlong, while Mr. Xu Yehao owns 30%[188] - The company has no other directors or senior executives with disclosed interests in the company's shares or related securities as of March 31, 2019[181] - There are no significant transactions or contracts involving directors or related entities that directly or indirectly hold substantial interests in the company[189] - The company has not entered into any major contracts with its controlling shareholders for services provided[190] Dividend Policy - The company proposed a final dividend of HKD 0.01 per ordinary share for the year ended March 31, 2019, compared to no dividend in 2018[156] - As of March 31, 2019, the company had no distributable reserves, consistent with the previous year[163] - The company has not established a predetermined dividend payout ratio, allowing flexibility based on financial conditions[151]