Group 1 - The Hang Seng Index fell by 1.36% to close at 25,176.93 points on July 30 [1] - Yugo International Holdings (01621.HK) saw a stock price increase of 9.09%, closing at HKD 0.12 per share, with a trading volume of 2.072 million shares and a turnover of HKD 239,600 [1] - Over the past month, Yugo International Holdings has experienced a cumulative increase of 35.8%, and a year-to-date increase of 74.6%, outperforming the Hang Seng Index by 27.24% [2] Group 2 - As of March 31, 2025, Yugo International Holdings reported total revenue of CNY 1.426 billion, a year-on-year decrease of 3.15%, and a net profit attributable to shareholders of CNY 11.3933 million, down 27.09% year-on-year [2] - The gross profit margin for Yugo International Holdings is 2.97%, with a debt-to-asset ratio of 19.12% [2] - The company's price-to-earnings (P/E) ratio is 8.91, ranking 10th in the industry, while the average P/E ratio for the oil and gas industry is -1.18, with a median of 1.45 [2] Group 3 - Yugo International Holdings primarily engages in the distribution of third-party branded petrochemical products and the sale of its own branded lubricants in Hong Kong [3] - The company's product portfolio includes diesel, lubricants (both proprietary and third-party), and other petrochemical products such as asphalt [3] - Yugo also acts as an authorized agent for a fleet card issued by an international oil company [3]

Core Viewpoint - As of July 18, 160 stocks reached their 52-week highs, with notable performances from China New Economy Investment (00080), Aoyuan Group Equity (02905), and Zhong An Holdings Group (08462) showing high growth rates of 288.89%, 55.28%, and 50.00% respectively [1][2]. Summary by Category 52-Week High Performers - China New Economy Investment (00080) closed at 0.440, with a peak price of 0.700, achieving a growth rate of 288.89% [2]. - Aoyuan Group Equity (02905) closed at 0.218, with a peak price of 0.250, achieving a growth rate of 55.28% [2]. - Zhong An Holdings Group (08462) closed at 0.221, with a peak price of 0.228, achieving a growth rate of 50.00% [2]. - Other notable performers include Hualian International (00969) with a growth rate of 40.13% and Zhongke Bio (01237) with a growth rate of 37.25% [2]. Additional High Performers - Wanma Holdings (06928) closed at 0.550 with a growth rate of 30.43% [2]. - Lepu Biopharma-B (02157) closed at 7.940 with a growth rate of 24.54% [2]. - Other stocks with significant growth include ZhiJianYueDong (06860) at 17.14% and China Jindian Group (08281) at 17.12% [2]. 52-Week Low Performers - The document also lists stocks that reached their 52-week lows, with XI Ernan CO-U (09311) showing a decline of 16.10% [6]. - Other notable declines include XI Ernan CO (07311) at -12.62% and Haotian International Construction Investment (01341) at -5.70% [6].

CONTENTS 目錄 | CORPORATE INFORMATION | 公司資料 | 2 | | --- | --- | --- | | STATEMENT FROM THE CHAIRMAN | 主席報告書 | 4 | | MANAGEMENT DISCUSSION AND ANALYSIS | 管理層討論及分析 | 6 | | BIOGRAPHICAL DETAILS OF DIRECTORS AND SENIOR MANAGEMENT | 董事及高級管理層履歷詳情 | 14 | | ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT | 環境、社會及管治報告 | 22 | | CORPORATE GOVERNANCE REPORT | 企業管治報告 | 68 | | DIRECTORS' REPORT | 董事會報告 | 97 | | INDEPENDENT AUDITOR'S REPORT | 獨立核數師報告 | 113 | | CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND | 綜合損益及其他全面收益表 | 120 | ...

[Financial Highlights and Results Announcement](index=1&type=section&id=Financial%20Highlights%20and%20Results%20Announcement) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) For the fiscal year ended March 31, 2025, the company's revenue, gross profit, and net profit all declined year-over-year, primarily due to falling oil prices FY2025 Results Summary | Indicator | Year Ended March 31, 2025 | Year Ended March 31, 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | HK$1,544.8 million | HK$1,595.1 million | -3.2% | | Gross Profit | HK$45.9 million | HK$48.3 million | -5.0% | | Net Profit | HK$12.3 million | HK$16.9 million | -27.1% | - The Board of Directors does not recommend the payment of a final dividend for the year ended March 31, 2025[4](index=4&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) During the reporting period, revenue was HK$1.545 billion, a year-over-year decrease of 3.2%, while profit before tax and net profit for the year also declined significantly Key Data from Consolidated Statement of Profit or Loss (HK$ thousands) | Item | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,544,763 | 1,595,083 | -3.2% | | Gross Profit | 45,912 | 48,339 | -5.0% | | Profit Before Tax | 15,422 | 21,336 | -27.7% | | Profit for the Year | 12,346 | 16,933 | -27.1% | | Basic Earnings Per Share (HK cents) | 1.23 | 1.69 | -27.2% | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, the company's net assets grew by 5.6% to HK$232 million, with improved liquidity as net current assets increased to HK$109 million Key Data from Consolidated Statement of Financial Position (HK$ thousands) | Item | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 128,964 | 131,193 | -1.7% | | Current Assets | 158,323 | 141,977 | +11.5% | | Current Liabilities | 48,967 | 49,772 | -1.6% | | Non-current Liabilities | 5,951 | 3,375 | +76.3% | | **Net Assets (Total Equity)** | **232,369** | **220,023** | **+5.6%** | [Notes to the Consolidated Financial Statements](index=4&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) [General Information and Accounting Policies](index=4&type=section&id=General%20Information%20and%20Accounting%20Policies) The company is an investment holding company primarily engaged in selling diesel oil and providing fleet card services, with newly adopted accounting standards having no material impact - The Group is principally engaged in the sale of diesel oil, lubricant oil, and other products, as well as the provision of fleet card services[8](index=8&type=chunk) - During the year, the Group adopted several revised Hong Kong Financial Reporting Standards issued by the HKICPA, which had **no material impact** on the consolidated financial statements[10](index=10&type=chunk)[12](index=12&type=chunk) [Revenue and Segment Information](index=7&type=section&id=Revenue%20and%20Segment%20Information) The company's revenue is dominated by diesel sales in Hong Kong, which constitute 95.1% of the total, and exhibits a high degree of customer concentration Revenue by Major Product (HK$ thousands) | Product/Service | 2025 | % of Total | 2024 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Sale of diesel oil | 1,468,987 | 95.1% | 1,511,507 | 94.8% | | Provision of fleet card services | 30,985 | 2.0% | 33,475 | 2.1% | | Sale of lubricant oil | 39,319 | 2.5% | 44,427 | 2.8% | | Sale of other products | 5,472 | 0.4% | 5,674 | 0.3% | | **Total** | **1,544,763** | **100%** | **1,595,083** | **100%** | - Geographically, the vast majority of revenue, **99.7%**, is derived from Hong Kong[21](index=21&type=chunk) - Revenue from four major customers (A, B, C, and D) accounted for **66.3% of the Group's total revenue**, indicating a high level of customer concentration[22](index=22&type=chunk) [Key Profit or Loss Items](index=9&type=section&id=Key%20Profit%20or%20Loss%20Items) Other income, finance costs, and income tax expense all decreased year-over-year due to factors including reduced rental income and lower taxable profits Other Income, Finance Costs, and Income Tax Expense (HK$ thousands) | Item | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Other income | 1,739 | 2,806 | -38.0% | | Finance costs | (1,186) | (1,456) | -18.5% | | Income tax expense | (3,076) | (4,403) | -30.1% | [Earnings Per Share and Dividends](index=11&type=section&id=Earnings%20Per%20Share%20and%20Dividends) For the year ended March 31, 2025, basic and diluted earnings per share decreased to 1.23 HK cents, and the Board does not recommend a final dividend Calculation of Earnings Per Share | Item | 2025 | 2024 | | :--- | :--- | :--- | | Earnings (HK$ thousands) | 12,346 | 16,933 | | Weighted average number of ordinary shares (shares) | 1,000,000,000 | 1,000,000,000 | | **Basic and diluted earnings per share (HK cents)** | **1.23** | **1.69** | - The Board of Directors does not recommend the payment of a final dividend for the year ended March 31, 2025[28](index=28&type=chunk) [Key Balance Sheet Items](index=12&type=section&id=Key%20Balance%20Sheet%20Items) Net trade receivables decreased to HK$36.36 million, with a significant reduction in overdue amounts over 90 days, indicating improved collections Aging Analysis of Trade Receivables (Net of Impairment, HK$ thousands) | Aging | 2025 | 2024 | | :--- | :--- | :--- | | 0 to 30 days | 35,620 | 41,945 | | 31 to 60 days | 391 | 495 | | 61 to 90 days | 12 | 33 | | Over 90 days | 333 | 3,541 | | **Total** | **36,356** | **46,014** | - Trade payables increased from HK$275 thousand to **HK$509 thousand**, with the entire balance aged within 0 to 30 days[33](index=33&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=14&type=section&id=Business%20Review%20and%20Outlook) The decline in FY2025 performance was mainly due to lower oil prices, and the company plans to pursue growth through overseas expansion and digital enhancement - The decrease in profit was primarily due to **falling oil prices**, which directly impacted revenue, leading to a significant decline in overall profitability[37](index=37&type=chunk) - Looking ahead, management maintains a cautiously optimistic outlook but notes adverse factors such as weak consumer sentiment, shelved public projects, and geopolitical uncertainties[38](index=38&type=chunk) - To pursue new growth, the Group is actively seeking opportunities to expand its lubricant business into selected overseas markets and will enhance its digital capabilities and sustainability efforts[39](index=39&type=chunk) [Financial Review](index=15&type=section&id=Financial%20Review) This section analyzes revenue and cost changes, where a 3.2% revenue drop due to oil prices, despite higher sales volumes, led to a 27.1% decline in net profit [Revenue Analysis](index=15&type=section&id=Revenue%20Analysis) Despite a 9.5% increase in diesel sales volume, revenue from this core segment fell by 2.8% due to lower oil prices, with other segments also seeing revenue declines - Diesel sales volume increased by approximately **9.5%** from 269.7 million liters to 295.3 million liters, but the corresponding revenue decreased by **2.8%** to HK$1,469 million due to falling oil prices[41](index=41&type=chunk) - Lubricant oil sales volume increased by approximately **17.6%** to 2.0 million liters, but the related revenue decreased by **11.5%** to HK$39.3 million[42](index=42&type=chunk) - Revenue generated from fleet card services decreased by **7.5%** to HK$31.0 million[43](index=43&type=chunk) [Cost, Gross Profit, and Expense Analysis](index=16&type=section&id=Cost,%20Gross%20Profit,%20and%20Expense%20Analysis) Cost of sales moved in line with revenue, maintaining a 3.0% gross margin, while increases in operating expenses were partially offset by lower finance costs - Cost of sales decreased by approximately **3.1%** year-on-year, largely in line with the revenue trend, and the gross profit margin remained stable at **3.0%**[46](index=46&type=chunk)[47](index=47&type=chunk) - Selling and distribution expenses increased by **13.6%** year-on-year, primarily due to an increase in commission expenses[48](index=48&type=chunk) - Administrative expenses increased by **8.9%** year-on-year, mainly due to changes in the impairment of trade and other receivables[49](index=49&type=chunk) - Finance costs decreased by **18.5%** year-on-year, mainly due to the progressive completion of finance lease agreements[50](index=50&type=chunk) [Profitability Analysis](index=18&type=section&id=Profitability%20Analysis) Net profit for the period decreased by 27.1% from HK$16.9 million to HK$12.3 million, with the net profit margin declining from 1.1% to 0.8% Changes in Profit and Net Profit Margin | Indicator | This Period | Corresponding Period | Change | | :--- | :--- | :--- | :--- | | Net Profit | Approx. HK$12.3 million | Approx. HK$16.9 million | -27.1% | | Net Profit Margin | 0.8% | 1.1% | -0.3pp | [Liquidity, Capital Resources, and Risk Management](index=19&type=section&id=Liquidity,%20Capital%20Resources,%20and%20Risk%20Management) The company maintains a solid liquidity position with improved ratios, a healthy gearing ratio of 23.6%, and minimal exposure to foreign exchange risk Key Financial Ratios | Indicator | As at March 31, 2025 | As at March 31, 2024 | | :--- | :--- | :--- | | Net Current Assets | HK$109.4 million | HK$92.2 million | | Current Ratio | 3.2 | 2.9 | | Gearing Ratio | 23.6% | 24.2% | - The Group primarily finances its operations through cash generated from operating activities, as well as interest-bearing bank borrowings and overdrafts[58](index=58&type=chunk) - The Group believes it has **no significant US dollar foreign exchange risk** and its operating cash flows are not subject to foreign exchange volatility[63](index=63&type=chunk) [Corporate Governance and Other Information](index=20&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance and Compliance](index=20&type=section&id=Corporate%20Governance%20and%20Compliance) The company complied with the Corporate Governance Code during the reporting period, and the Audit Committee has reviewed the annual results - The Board believes that the Company has complied with all code provisions of the Corporate Governance Code during the period[65](index=65&type=chunk) - The Audit Committee has reviewed the Group's accounting principles, risk management, internal controls, and the consolidated annual results for the period[67](index=67&type=chunk) [Shareholder Information](index=18&type=section&id=Shareholder%20Information) The Board does not recommend a final dividend for the year ended March 31, 2025, and the Annual General Meeting is scheduled for September 10, 2025 - The Board does not recommend the payment of a final dividend for the year ended March 31, 2025 (2024: Nil)[55](index=55&type=chunk) - The Company plans to hold its 2025 Annual General Meeting on September 10, 2025[56](index=56&type=chunk)

Share Option Scheme - The total number of share options available for grant under the share option scheme as of April 1, 2023, and March 31, 2024, is 100 million shares each [3]. - The total number of shares that can be issued under the share option scheme is 100 million shares, representing 10% of the total issued shares as of the annual report date, excluding treasury shares [3].

Financial Performance - For the six months ended September 30, 2024, the company reported revenue of approximately HKD 810 million, an increase of 11.5% compared to the same period last year[11]. - Gross profit for the same period was HKD 24.4 million, representing a decrease of 16.7% year-on-year[11]. - Net profit decreased by 22.0% to HKD 9.6 million, primarily due to increased sales costs and reduced other income[11]. - The group's revenue for the period was approximately HKD 810,000,000, an increase of 11.5% compared to approximately HKD 726,700,000 in the corresponding period, driven by increased diesel demand and the recovery of cross-border land freight[19]. - Revenue for the six months ended September 30, 2024, was HKD 809,982,000, an increase from HKD 785,568,000 in the same period last year[81]. - The company reported a profit of HKD 9,616,000 for the six months ended September 30, 2024, down 21.8% from HKD 12,301,000 in the same period last year[136]. Revenue Breakdown - Revenue from diesel sales was approximately HKD 768,300,000 and HKD 685,300,000 for the current and corresponding periods, respectively, accounting for 94.9% and 94.3% of total revenue[20]. - Revenue from lubricating oil sales was approximately HKD 20,500,000 and HKD 22,100,000, representing 2.5% and 3.0% of total revenue for the current and corresponding periods[21]. - The revenue from fleet card services increased by approximately HKD 2,900,000 or 18.8% to approximately HKD 18,300,000 due to marketing activities stimulating customer spending[23]. - Diesel sales contributed HKD 768,280,000, up 12.1% from HKD 685,333,000 in the previous year[104]. - Fleet card services revenue increased to HKD 18,329,000, representing an 18.5% growth from HKD 15,443,000[104]. - Lubricant sales decreased slightly to HKD 20,465,000, down 7.4% from HKD 22,090,000[104]. Cost and Expenses - Total sales costs were approximately HKD 785,600,000 and HKD 697,300,000 for the current and corresponding periods, reflecting an increase of 12.7%[25]. - Selling and distribution expenses increased by approximately HKD 500,000 or 62.5% to approximately HKD 1,300,000 due to higher storage tank consumption and incentives for sales personnel[28]. - Administrative and operating expenses slightly decreased to HKD 12,107,000 from HKD 12,759,000 year-on-year[81]. - Total employee costs rose to HKD 5,345,000, an increase of 17.2% from HKD 4,562,000 in the previous year[133]. Cash Flow and Assets - The company reported a net cash inflow from operating activities of HKD 38,663,000 for the six months ended September 30, 2024, compared to HKD 14,005,000 for the same period in 2023, indicating a significant increase of 175.5%[91]. - Cash and cash equivalents rose to HKD 56,128,000 as of September 30, 2024, compared to HKD 34,160,000 as of March 31, 2024, marking an increase of 64.4%[94]. - The company’s inventory decreased to HKD 9,577,000 as of September 30, 2024, from HKD 11,602,000 as of March 31, 2024, a reduction of approximately 17.4%[84]. - Trade and other receivables decreased to HKD 72,312,000 as of September 30, 2024, from HKD 90,348,000 as of March 31, 2024, indicating a decline of about 20.0%[84]. Financial Position - As of September 30, 2024, the current ratio was 2.8, slightly down from 2.9 on March 31, 2024[40]. - The group's capital structure includes equity attributable to owners of approximately HKD 230,000,000, with no significant changes during the period[42]. - The group has pledged leasehold land and buildings valued at HKD 118,397,000 and investment properties valued at HKD 7,036,000 as collateral for bank borrowings[45]. - The company’s issued and paid-up share capital remained at HKD 10,000,000 as of both September 30, 2024, and March 31, 2024[156]. Corporate Governance and Management - The company has complied with all corporate governance codes as per the listing rules during the period[50]. - The directors and senior management hold a total of 730,000,000 shares, representing approximately 73% of the issued share capital of the company[56]. - The company has not declared or proposed any dividends for the periods ended September 30, 2024, and September 30, 2023[134]. - The company’s management compensation is determined by the board based on individual performance and market trends[160]. Market and Strategic Initiatives - The company plans to enhance its positioning in the logistics sector by providing customized fleet card solutions to manage costs[15]. - The company is actively exploring overseas markets, particularly in Southeast Asia and other emerging regions, to diversify revenue sources[16]. - The company is promoting ultra-low sulfur diesel and exploring emission reduction technologies in response to the growing demand for cleaner fuels[15]. - The company continues to focus on expanding its diesel sales and fleet card services as key growth areas[106].

Revenue and Profitability - Revenue increased from approximately HKD 726.7 million for the six months ended September 30, 2023, to approximately HKD 810 million for the six months ended September 30, 2024, representing an increase of about 11.5%[3] - Net profit decreased from approximately HKD 12.3 million to approximately HKD 9.6 million, a decline of about 22.0%[3] - Basic and diluted earnings per share decreased from HKD 1.23 to HKD 0.96, a decrease of approximately 21.9%[5] - Profit for the period attributable to owners decreased to HKD 9,616,000 from HKD 12,301,000, a decline of 21.9%[38] - The company reported a decrease in the impairment loss on trade receivables, with a reversal of HKD 190,000 compared to a loss of HKD 1,274,000 in the previous year[13] Gross Profit and Expenses - Gross profit decreased from approximately HKD 29.3 million to approximately HKD 24.4 million, a decline of about 16.7%[3] - Selling and distribution expenses increased from approximately HKD 0.8 million to approximately HKD 1.3 million, an increase of about 66.0%[5] - Total employee costs rose to HKD 5,345,000 for the six months ended September 30, 2024, up from HKD 4,562,000, an increase of 17.1%[35] - Administrative and other operating expenses slightly decreased by 5.5% to approximately HKD 12,100,000 from approximately HKD 12,800,000 in the corresponding period[62] - Financing costs decreased by 4.9% to approximately HKD 684,000 from approximately HKD 719,000 in the corresponding period, mainly due to the Federal Reserve's interest rate cuts[64] Assets and Liabilities - Total assets less current liabilities increased from approximately HKD 223.4 million to approximately HKD 233.8 million, an increase of about 4.0%[7] - Cash and cash equivalents increased from approximately HKD 34.2 million to approximately HKD 56.1 million, an increase of about 64.1%[7] - Trade and other receivables decreased from approximately HKD 90.3 million to approximately HKD 72.3 million, a decrease of about 20.0%[7] - Total equity increased from approximately HKD 220.0 million to approximately HKD 229.6 million, an increase of about 4.5%[9] - The group's current liabilities were approximately HKD 57,200,000 as of September 30, 2024, compared to HKD 49,800,000 as of March 31, 2024, reflecting an increase of about 14.4%[73] Cash Flow and Investments - The company’s operating cash flow before changes in working capital was HKD 14,893,000, down from HKD 21,475,000 in the previous year, reflecting operational challenges[13] - The net cash used in investing activities was HKD 17,475,000, a decrease from HKD 7,661,000 in the previous year, indicating a shift in investment strategy[13] - The company raised HKD 4,000,000 in bank borrowings during the period, down from HKD 7,000,000 in the same period last year[15] Revenue Sources and Market Expansion - Diesel sales contributed HKD 768,280,000, up 12.1% from HKD 685,333,000 in the previous year[25] - The company’s revenue from Vietnam increased significantly to HKD 1,046,000 from HKD 203,000, indicating successful market expansion efforts[27] - The company plans to enhance its positioning in the logistics sector by providing customized fleet card solutions to help manage costs[50] - The company is exploring overseas markets, particularly in Southeast Asia and other emerging regions, to diversify revenue sources[52] Other Income and Financial Position - Other income decreased from approximately HKD 1.8 million to approximately HKD 0.8 million, a decline of about 56.0%[5] - Total other income for the six months ended September 30, 2024, was HKD 816,000, compared to HKD 1,820,000 for the same period in 2023, representing a decrease of 55.2%[30] - Bank interest income increased slightly to HKD 299,000 from HKD 293,000 year-on-year[30] - The group recognized government subsidies of HKD 214,000 under the Technology Voucher Programme, supporting productivity improvements[30] Fleet Management and Customer Accounts - The group managed a total of 50,392 fleet card accounts as of September 30, 2024, down from 54,897 accounts in 2023, a decrease of 8.2%[47] - Major customers contributing over 10% of total revenue included Customer A1 with HKD 194,064,000, an increase of 39.9% from HKD 138,809,000 in the previous year[28] Dividends and Capital Commitments - The group did not recommend any interim dividend for the six months ending September 30, 2024, compared to no dividend for the same period last year[71] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the period[71] - The group had no significant capital commitments outside the balance sheet as of September 30, 2024[76]

Financial Performance - The Group achieved total revenue of approximately HK$1,595.1 million, representing an increase of 56.8% compared to the previous year[21]. - Gross profit for the Group was approximately HK$48.3 million, reflecting an increase of 8.2% year-over-year[21]. - Net profit reached approximately HK$16.9 million, marking a significant increase of 92.5% compared to the prior year[21]. - Revenue from diesel sales amounted to approximately HK$1,511.5 million, accounting for 94.8% of total revenue, with a sales quantity increase of approximately 99.7% from 135.0 million litres to 269.7 million litres[30][31]. - Revenue from lubricant oil sales was approximately HK$44.4 million, representing 2.8% of total revenue, with a sales quantity decrease of approximately 37.0% from 2.7 million litres to 1.7 million litres[37][38]. - Revenue from fleet card services was approximately HK$33.5 million, accounting for 2.1% of total revenue, showing a slight increase from HK$32.4 million in the Corresponding Period[40][45]. - Revenue from other products, mainly bitumen and kerosene, was approximately HK$5.7 million, representing 0.4% of total revenue, down from HK$10.0 million in the Corresponding Period[41][46]. - The Group's cost of sales increased by approximately 59.1% to HK$1,546.7 million from HK$972.3 million in the Corresponding Period[50]. - Selling and distribution expenses decreased by approximately HK$1.8 million or 27.4% to HK$4.7 million due to a drop in salaries and allowances[52]. - Administrative expenses decreased by approximately HK$5.5 million or 18.8% to approximately HK$23.7 million, primarily due to the reversal of impairment allowance for trade receivables[57]. - Net profit for the Current Period increased by approximately HK$8.1 million or 92.5% to approximately HK$16.9 million, with net profit margin rising from 0.9% to 1.1%[61]. Market Conditions and Business Outlook - The increase in revenue was primarily driven by sales of diesel following the reopening of the China border[21]. - The Group's operations benefited from a gradual economic recovery and increased logistics demand in Hong Kong[22]. - Future economic uncertainties include reduced consumer spending and a sluggish property market, which may impact business operations[10]. - The Group remains cautiously optimistic about business prospects, anticipating fluctuations in demand for petrochemical products[11]. - The Group aims to navigate economic uncertainties through strategic planning, operational efficiency, and innovation to deliver consistent value to stakeholders[28]. Corporate Governance and Management - The management team includes experienced executives with over 52 years of experience in the sales and distribution of petrochemical products[93]. - The Chief Executive Officer, Mr. Eric Hui, has 11 years of experience in promoting fleet cards and managing corporate strategies[97]. - The marketing director, Mr. Kong Man Ho, oversees the sales and marketing strategies of the Group, bringing 10 years of experience in sales and marketing[101]. - The Group's overall business development strategies are primarily managed by the Chairman, Mr. Hui, who has extensive experience in the industry[93]. - The Board consists of 2 female members and 6 male members, establishing effective risk management and internal control systems[147][150]. - The Company has implemented comprehensive risk management procedures and guidelines for key business processes, including financial reporting and human resources[146][149]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes sustainable development, as highlighted in its seventh Environmental, Social and Governance (ESG) report, which details achievements in promoting sustainability[129]. - The ESG report covers the sustainability performance of the company’s diesel sales, fleet card services, and lubricant oil segments for the period from April 1, 2023, to March 31, 2024[130]. - The Board has adopted the Environmental, Social and Governance Reporting Guide requirements as per the Stock Exchange of Hong Kong[131]. - The company calculates and discloses environmental and social KPIs based on relevant standards and guidelines issued by the Stock Exchange of Hong Kong[140]. - The Group is committed to supporting 9 of the 17 United Nations Sustainable Development Goals, focusing on global challenges such as poverty, inequality, and climate change[165]. - The Group has implemented energy and water-saving initiatives to conserve natural resources, regularly reviewing daily operations for efficiency[171]. - The Group adheres to "Green Operations" principles, regularly upgrading production equipment and encouraging carbon reduction actions among employees[173]. - The Group promotes energy-saving practices, such as installing energy-efficient lighting and maintaining office temperatures between 24 to 26 degrees Celsius[178]. - The Group has joined "Earth Hour 2024" to enhance staff understanding of low carbon office operations and energy-saving habits[180]. - The Group is implementing carbon reduction strategies and formulating department-level carbon footprint targets and action plans[200]. Stakeholder Engagement and Communication - The Group emphasizes stakeholder engagement, maintaining communication with key stakeholders such as government bodies, customers, and investors[159][160]. - The Company maintains various communication channels with stakeholders, including annual reports and employee satisfaction surveys[161]. - The Company encourages employees to raise concerns regarding financial reporting and internal control[146][149]. - The Board regularly reviews ESG guidelines and management objectives to identify and manage ESG-related risks[154][157].

Revenue and Profitability - Revenue increased by approximately 56.8% from HKD 1,017,000,000 for the year ended March 31, 2023, to HKD 1,595,100,000 for the year ended March 31, 2024[3] - Net profit surged by approximately 92.5% from HKD 8,800,000 to HKD 16,900,000 year-over-year[3] - Basic and diluted earnings per share increased from HKD 0.88 to HKD 1.69[4] - Total revenue for 2024 reached HKD 1,595,083,000, up from HKD 1,017,037,000 in 2023, marking a significant increase of 56.7%[15] - The company reported a net profit of HKD 16,933,000 for 2024, up from HKD 8,796,000 in 2023, indicating a growth of 92.4%[25] - Net profit increased by approximately 92.5% to about HKD 16,900,000 from HKD 8,800,000, with net profit margin rising from approximately 0.9% to 1.1%[53] Revenue Sources - Revenue from diesel sales increased to HKD 1,511,507,000 in 2024 from HKD 937,700,000 in 2023, representing a growth of 61.2%[15] - Diesel sales generated revenue of approximately HKD 1,511,500,000, accounting for 94.8% of total revenue, with sales volume increasing by approximately 99.7% to 269,700,000 liters[41] - Lubricant sales revenue was approximately HKD 44,400,000, representing 2.8% of total revenue, with sales volume decreasing by about 37.0% to 1,700,000 liters[42] - Fleet card services generated revenue of approximately HKD 33,500,000, accounting for 2.1% of total revenue[44] Financial Position - Non-current assets decreased from HKD 140,532,000 to HKD 131,193,000, while current assets increased from HKD 120,284,000 to HKD 141,977,000[6] - Total liabilities decreased from HKD 54,586,000 to HKD 49,772,000, indicating improved financial stability[6] - Current assets as of March 31, 2024, were approximately HKD 142,000,000, up from HKD 120,300,000 in the previous year[62] - Current liabilities decreased to approximately HKD 49,800,000 from HKD 54,600,000, resulting in a current ratio of 2.9 compared to 2.2 in the previous year[62] - Trade receivables amounted to approximately HKD 47,284,000, an increase from HKD 38,010,000 in the previous year[27] - Trade payables were recorded at HKD 10,382,000, an increase from HKD 8,098,000 in the previous year[31] Expenses and Costs - Sales cost increased by approximately 59.1%, amounting to HKD 1,546,700,000 compared to HKD 972,300,000 in the corresponding period[46] - Gross profit rose by about 8.2% from HKD 44,700,000 to HKD 48,300,000 during the same periods[3] - Gross margin decreased from 4.4% to 3.0%[47] - Selling and distribution expenses decreased by approximately 27.4% to HKD 4,700,000 from HKD 6,400,000 due to reduced salaries and allowances[49] - Administrative expenses decreased by approximately 18.8% to about HKD 23,700,000 from HKD 29,200,000, primarily due to the reversal of trade receivables impairment[50] Dividends and Shareholder Information - The company did not recommend a final dividend for the year ended March 31, 2024, compared to no dividend in the previous year[3] - The company did not declare any dividends for 2024, consistent with 2023[24] - The board did not recommend any final dividend for the year ending March 31, 2024[57] - The annual report for the fiscal year 2023/2024 will be made available to shareholders at the appropriate time[74] - The company plans to hold its annual general meeting on September 11, 2024, with a notice to be published in due course[76] - The board expresses gratitude to shareholders, business partners, and customers for their support over the past year[77] Strategic Focus and Development - The company continues to focus on the sale of diesel, lubricants, and fleet card services, indicating a stable business model[8] - The company is committed to ongoing product and technology development to enhance market competitiveness[8] - The group remains cautiously optimistic about business prospects despite economic challenges, focusing on strategic planning and operational efficiency[37] - The group aims to maintain high standards and adapt to market dynamics to provide continuous value to stakeholders[39] Compliance and Governance - The company has applied new Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial statements[11] - The audit committee consists of three independent non-executive directors, ensuring compliance with listing rules and corporate governance codes[72] - The group's financial statements for the year ending March 31, 2024, have been reviewed and confirmed to be consistent with the audited consolidated financial statements[73] Other Financial Information - Interest income from banks rose to HKD 495,000 in 2024, compared to HKD 187,000 in 2023, an increase of 164.2%[19] - The total financing costs decreased slightly to HKD 1,456,000 in 2024 from HKD 1,514,000 in 2023[21] - The deferred tax expense for 2024 was HKD 783,000, compared to HKD 780,000 in 2023, showing a marginal increase[23] - The company confirmed government subsidies totaling approximately HKD 121,000 related to IT solutions during the pandemic[19] - The group did not engage in any significant investments, acquisitions, or disposals of subsidiaries during the period[59] - The company’s property, plant, and equipment are solely located in Hong Kong, with no expansion into other regions reported[17] - The group's capital structure remained unchanged, with equity attributable to owners amounting to approximately HKD 220,000,000[63]

Financial Performance - The company's revenue for the six months ended September 30, 2023, was approximately HKD 726.7 million, an increase of 44.0% compared to HKD 504.6 million for the corresponding period in 2022[15]. - The net profit for the period was approximately HKD 12.3 million, an increase of 42.8% compared to the corresponding period[9]. - Profit before tax increased to HKD 16,908,000, compared to HKD 10,257,000 in the previous year, reflecting a 65% rise[71]. - Basic and diluted earnings per share rose to HKD 1.23, up from HKD 0.86, marking a 43% increase[71]. - The group reported a profit attributable to owners of HKD 12,301,000 for the six months ended September 30, 2023, compared to HKD 8,616,000 in the previous year, marking a year-on-year increase of 42.5%[113]. Revenue Breakdown - Diesel sales generated revenue of approximately HKD 685.3 million, accounting for 94.3% of total revenue, compared to HKD 461.3 million and 91.4% for the corresponding period[16]. - Lubricant sales revenue was approximately HKD 22.1 million, representing 3.0% of total revenue, compared to HKD 22.6 million and 4.5% for the corresponding period[17]. - Revenue from fleet card services decreased by approximately HKD 1,900,000 or 10.9% to about HKD 15,400,000 due to slow local economic growth and increased market competition[18]. - Revenue from the sale of other products was approximately HKD 3,800,000 and HKD 3,400,000, accounting for 0.5% and 0.7% of total revenue, respectively[20]. - Revenue from Hong Kong was HKD 725,504,000, a significant increase from HKD 503,590,000 in the prior year[101]. Cost and Expenses - Sales costs increased by approximately HKD 216,500,000 or 45.0% to about HKD 697,300,000, aligning with revenue trends[21]. - Gross profit increased by approximately HKD 5,500,000 or 23.1% to about HKD 29,300,000[22]. - Selling and distribution expenses decreased by approximately HKD 600,000 or 46.2% to about HKD 700,000[23]. - Administrative and other operating expenses decreased by approximately HKD 700,000 or 5.2% to about HKD 12,800,000[25]. - Financing costs decreased by approximately HKD 100,000 or 12.5% to about HKD 700,000 due to reduced bank borrowings[26]. Assets and Liabilities - Current assets as of September 30, 2023, were approximately HKD 142,000,000, up from HKD 120,300,000 as of March 31, 2023[36]. - Total assets as of September 30, 2023, were HKD 217,685,000, compared to HKD 206,230,000 as of March 31, 2023[74]. - Trade receivables increased to HKD 43,770,000 as of September 30, 2023, compared to HKD 38,010,000 as of March 31, 2023, reflecting a rise of 15.5%[125]. - Trade payables amounted to HKD 435,000 (unaudited), a decrease of 32.7% from HKD 647,000 as of March 31, 2023[127]. - Bank borrowings as of September 30, 2023, totaled HKD 42,878,000, a slight decrease from HKD 43,773,000 as of March 31, 2023[130]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules and has complied with all provisions during the reporting period[44]. - The audit committee, consisting of three independent non-executive directors, has reviewed the financial statements and has no objections to the accounting treatments adopted by the company[57]. - The company has ensured compliance with the corporate governance code and has maintained a robust internal control system[57]. - The directors have confirmed their compliance with the securities trading code during the reporting period[45]. - The company has confirmed that all directors have adhered to the securities trading standards during the reporting period[45]. Market and Economic Conditions - The economic situation in Hong Kong and China poses challenges for the fleet card division, potentially affecting overall demand for commercial fuel[11]. - The construction of Route 11 is expected to increase demand for construction materials and fuel, aligning with the company's core products[12]. - The company plans to explore initiatives promoting clean fuel and environmentally friendly practices in response to global sustainability trends[12]. - The company will closely monitor economic trends and adjust marketing and operational strategies to ensure sustainable growth amid economic uncertainties[13]. - The increase in revenue is primarily attributed to rising demand for diesel due to the easing of cross-border road freight restrictions[15]. Cash Flow and Financing - The operating cash flow for the six months ended September 30, 2023, was HKD 14,005,000, compared to a negative cash flow of HKD 2,095,000 in the same period of 2022, showing a significant turnaround[78]. - The company's financing activities resulted in a net cash outflow of HKD 2,489,000 for the six months ended September 30, 2023, compared to an outflow of HKD 13,544,000 in the same period of 2022, indicating improved cash management[80]. - Cash and cash equivalents increased to HKD 51,911,000 as of September 30, 2023, from HKD 36,723,000 at the end of the previous year, marking a rise of about 41.3%[80]. - Interest expenses for the six months ended September 30, 2023, totaled HKD 719,000, a decrease of 10.9% from HKD 807,000 in the same period of 2022[107]. - Current tax expense for the period increased significantly to HKD 4,664,000 from HKD 1,698,000, representing a growth of 174.5%[109].