Financial Performance - Total revenue for the year ended March 31, 2023, was RMB 4,046,902 thousand, a decrease of 8.4% compared to RMB 4,419,887 thousand in 2022[2] - Gross profit for the year was RMB 1,036,121 thousand, down from RMB 1,173,029 thousand in the previous year, reflecting a gross margin of approximately 25.6%[2] - Profit before tax decreased to RMB 841,019 thousand from RMB 973,834 thousand, representing a decline of 13.6%[2] - Net profit for the year was RMB 579,188 thousand, a decrease of 13.2% compared to RMB 667,404 thousand in 2022[2] - Basic and diluted earnings per share for the year were RMB 1.52, down from RMB 1.75 in the previous year[3] - Revenue from sales of goods was RMB 4,040,837 thousand, down from RMB 4,413,862 thousand in the previous year, representing a decline of 8.4%[20] - Other income and gains totaled RMB 68,357 thousand, down from RMB 180,334 thousand in the previous year[24] - The total income tax expense for the year ended March 31, 2023, was RMB 261,831,000, a decrease of 14.6% from RMB 306,430,000 in 2022[29] - The current tax expense for the year was RMB 241,653,000, down from RMB 284,411,000 in the previous year, reflecting a reduction of 15.0%[29] - The group reported a financing cost of RMB 674 thousand, a decrease from RMB 2,141 thousand in 2022[25] Assets and Liabilities - Total current assets increased slightly to RMB 2,870,410 thousand from RMB 2,868,088 thousand in 2022[4] - Cash and cash equivalents at the end of the year rose to RMB 638,572 thousand, compared to RMB 555,433 thousand at the end of 2022[9] - Total liabilities decreased significantly, with current liabilities dropping to RMB 872,409 thousand from RMB 1,212,735 thousand in the previous year[4] - The company's total equity increased to RMB 2,528,893 thousand from RMB 2,221,342 thousand in 2022, reflecting a growth of 13.8%[6] - The accounts receivable as of March 31, 2023, amounted to RMB 217,953,000, significantly lower than RMB 401,917,000 in 2022, representing a decrease of 45.8%[32] - The provision for impairment losses on accounts receivable decreased to RMB 1,461,000 from RMB 2,400,000 in the previous year, a reduction of 39.1%[35] - The total amount of receivables discounted was RMB 110,514,000, an increase from RMB 82,707,000 in 2022, reflecting a growth of 33.6%[33] - The aging analysis of accounts receivable showed that RMB 214,469,000 was within 3 months, down from RMB 286,091,000 in the previous year, a decrease of 25.0%[35] Operational Highlights - Operating cash flow for the year was RMB 763,403 thousand, significantly higher than RMB 429,514 thousand in the previous year[7] - The average inventory turnover days increased to approximately 127 days, up 31 days from the previous year, due to a decline in orders and sales[54] - The current ratio improved to approximately 3.3 from 2.4 in the previous year, attributed to a reduction in current liabilities by about 28%[57] - The total employee cost for the group is approximately RMB 328,315,000, accounting for a significant portion of the group's expenses[62] Investments and Future Plans - The company has invested approximately RMB 78,308,000 in fixed assets, including RMB 48,061,000 for factory buildings and RMB 30,247,000 for land use rights, with a planned production capacity of 4,000-4,500 units and an expected annual output value of RMB 1 billion[61] - The company plans to invest approximately RMB 130 million to construct an additional factory to ensure future production capacity[61] - The company is committed to expanding its product line and production capacity while strengthening marketing and after-sales service systems[63] - The company aims to enhance product performance and service quality while reducing costs to address potential market fluctuations and intensified competition[64] Corporate Governance - The company was established in the Cayman Islands on July 2, 2013, and its shares have been listed on the Hong Kong Stock Exchange since September 25, 2017[10] - The company's ultimate holding company is Tsugami Corporation, which is registered in Japan and listed on the Tokyo Stock Exchange[10] - The board of directors includes both executive and independent non-executive members, with Dr. Tang Donglei serving as the chairman and CEO[75] - The audit committee has reviewed the group's audited consolidated financial statements for the year, ensuring compliance with accounting principles and internal controls[69] Shareholder Information - The company declared a final dividend of HKD 0.40 per share, totaling HKD 152,321,600, subject to shareholder approval[40] - The board has proposed a final dividend of HKD 0.40 per share, totaling HKD 152,321,600, subject to shareholder approval[65] - The annual general meeting is scheduled for August 18, 2023, in Hong Kong[72] - Share transfer registration will be suspended from August 15 to August 18, 2023, to determine shareholder eligibility for the annual general meeting[73] - Share transfer registration will also be suspended from August 24 to August 25, 2023, to determine eligibility for the proposed final dividend[73] Compliance and Reporting - The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) and presented in Renminbi, with all values rounded to the nearest thousand[13] - The consolidated financial statements include the financial results of the company and its subsidiaries for the year ended March 31, 2023[14] - The company assesses control over subsidiaries based on voting rights and contractual arrangements, ensuring compliance with IFRS guidelines[15] - The company has adopted revised IFRS standards, which have no impact on its financial position or performance during the reporting period[16] - The preliminary performance announcement has been verified by Ernst & Young, ensuring consistency with the audited financial statements[74] - The annual report for the year ending March 31, 2023, will be sent to shareholders and published on the company's website at an appropriate time[75]

Financial Performance - For the six months ended September 30, 2022, the Group's revenue was approximately RMB 2,200,360,000, representing a decrease of approximately 7.2% compared to the same period in 2021[11]. - The Group's gross profit for the same period was approximately RMB 534,098,000, reflecting a decrease of approximately 18.9% year-on-year[12]. - The net profit attributable to shareholders of the Company was approximately RMB 300,693,000, a decrease of approximately 20.4% compared to the previous year[12]. - Basic earnings per share for the period were approximately RMB 0.79, down approximately 20.2% from RMB 0.99 in the same period last year[12]. - The gross profit margin decreased to 24.3% from 27.8% year-on-year, a decline of 3.5 percentage points[11]. - The profit before tax was approximately RMB 442,776,000, representing a decrease of approximately 20.9% compared to the same period in 2021[11]. - The net profit margin decreased to 13.7% from 15.9% year-on-year, a decline of 2.2 percentage points[11]. - Other income and gains decreased by approximately RMB 96,891,000 to approximately RMB 42,815,000, primarily due to a one-off insurance compensation of RMB 107,403,000 from a factory fire in the previous year[25][28]. - Profit for the period was RMB 300,693,000, representing a decrease of approximately 20.4% or RMB 76,964,000 compared to the same period last year[39][43]. - Total comprehensive income for the period was RMB 300,693, consistent with the profit for the period[86]. Revenue Breakdown - Sales of precision lathes decreased by approximately RMB 203,047,000 or approximately 9.8%, significantly impacting the Group's revenue[19]. - Sales of precision grinding machines also decreased by approximately 9.2% compared to the same period last year[19]. - The sales of precision machining centers recorded a growth of approximately 26.8%, driven by increased demand in the new energy vehicle parts and components industry[19]. - Revenue from the sale of CNC high precision machine tools was RMB 2,197,130, down from RMB 2,367,259, reflecting a decline of 7.2% year-over-year[100]. - The Group's revenue from Mainland China was RMB 1,650,339, down from RMB 2,017,233, indicating a decline of 18.1%[100]. - Overseas revenue increased to RMB 550,021, up from RMB 353,106, marking a growth of 55.8%[100]. Expenses and Costs - Selling and distribution expenses were approximately RMB 75,672,000, accounting for 3.4% of the Group's revenue, representing a decrease of approximately 4.7% compared to the same period last year[26][29]. - Administrative expenses increased by approximately 18.4% to approximately RMB 54,660,000, mainly due to increased customization and development expenses[31][32]. - Employee benefit expenses increased to RMB 157,042 from RMB 131,452, representing a rise of 19.4% year-over-year[101]. - The total tax charge for the period was RMB 142,083,000, down 22.1% from RMB 182,179,000 in the previous year[105]. Assets and Liabilities - As of September 30, 2022, total cash and cash equivalents amounted to approximately RMB 550,576,000, a slight decline from RMB 555,433,000 as of March 31, 2022[40]. - The Group recorded net current assets of approximately RMB 1,847,968,000, with a current ratio of approximately 2.9 times[41]. - Total non-current liabilities rose to RMB 2,489,640,000, compared to RMB 2,300,336,000, indicating an increase of 8.2%[87]. - The total equity attributable to owners of the parent reached RMB 2,390,402,000, up from RMB 2,221,342,000, representing a growth of 7.6%[89]. - Trade receivables as of September 30, 2022 amounted to RMB 298,976,000, down from RMB 404,317,000 as of March 31, 2022[110]. - Trade payables as of September 30, 2022, totaled RMB 703,214,000, down from RMB 820,172,000 as of March 31, 2022, indicating a reduction of about 14.3%[116]. Investments and Future Plans - The Group plans to continue investing in the equipment of Precision Tsugami (Anhui) Corporation and the construction of a new factory in Pinghu[17]. - The Group plans to expand production capacity by constructing two new factory buildings with a total investment of approximately RMB 150 million, expected to increase machine tool production capacity by approximately 2,000 units per year starting January 2024[47]. - The Group will strengthen sales expansion of key products and explore potential market demand[17]. Corporate Governance and Compliance - The Company has adopted the Corporate Governance Code and has complied with its provisions during the review period, despite Dr. Tang Donglei serving as both Chairman and Chief Executive Officer since April 1, 2022[76]. - The audit committee reviewed the Group's unaudited condensed consolidated interim financial results for the six months ended September 30, 2022, with external auditor Ernst & Young conducting a review in accordance with relevant standards[81]. - The Group's financial reporting remains aligned with the revised International Financial Reporting Standards adopted for the first time during this period[95]. Shareholder Information - An interim dividend of HK$0.4 per share has been declared for the six months ended September 30, 2022, consistent with the previous year[56]. - The register of members will be closed from December 6 to December 8, 2022, for the purpose of the interim dividend[58]. - As of September 30, 2022, Tsugami Japan holds 270,000,000 shares, representing 70.90% of the issued shares[70]. - The total number of shares held by substantial shareholders indicates a strong control over the company’s equity structure[70].

Company Overview - The Group has become the largest foreign-branded CNC machine tool manufacturer in the Chinese market, achieving significant growth since its establishment in 2003[5]. - The Group's main products include precision lathes, precision machining centers, and precision grinding machines, primarily serving the automobile parts, IT electronics, and industrial automation sectors[19]. - The Group's products are mainly sold in Mainland China and Taiwan, with exports to Japan, South Korea, Europe, and the United States through Tsugami Japan's overseas sales channels[19]. - The Group emphasizes high precision, high speed, and high rigidity in its manufacturing processes, aligning with the globally leading technology of Tsugami Japan[18]. - The Group aims to provide cost-effective products and services to its customers while contributing positively to society[18]. - The Group's customer base includes renowned auto manufacturers, home appliance manufacturers, and smartphone manufacturers globally[19]. Financial Performance - The financial results for the fiscal year ended March 31, 2022, reflect the Group's commitment to quality and customer satisfaction, although specific financial figures are not detailed in the provided content[18]. - The Group recorded sales revenue of approximately RMB4,419,887,000, representing an increase of approximately 41.8% compared to the same period last year[20]. - The gross profit margin increased from approximately 24.6% in the previous year to approximately 26.5% for the Year under Review[20]. - The net profit for the Year under Review amounted to approximately RMB667,404,000, representing a year-on-year increase of approximately 70.3%[20]. - Basic earnings per share amounted to approximately RMB1.75, representing an increase of approximately 70% compared with the same period last year[20]. - The demand for CNC machine tools from various downstream sub-sectors was exceptionally strong, particularly in the new energy vehicle parts manufacturing sector[23]. - The overseas CNC machine tool market has fully recovered, with demand significantly increasing compared to the previous year, reaching the highest level in history[24]. Operational Strategy - The Group continues to focus on professional customization and development of CNC high precision machine tools to meet diverse industry needs[19]. - The Group's strategic direction includes enhancing its market presence and expanding its product offerings to cater to evolving customer demands[18]. - The Group aims to clarify its development goals, expand production capacity, and improve operational efficiency to increase market share of key products[28]. - The Group has committed to enhancing its marketing, product lines, and cost control to achieve solid operational results[24]. - The Group plans to strengthen production capacity expansion and improve product cost-effectiveness to enhance core competitiveness[37]. - The company has increased its production capacity and is expanding its operations to meet the growing demand for CNC machine tools in the Chinese market[76]. Corporate Governance - The company has adopted the Corporate Governance Code to strengthen management accountability and investor confidence[104]. - The company has complied with all code provisions of the Corporate Governance Code during the year[105]. - The board is responsible for determining the business and investment plans of the group and preparing annual financial budgets[107]. - The company has a structured approach to risk management and control, covering potential legal actions faced by directors[105]. - The company has a diverse board with no material relationships among members[107]. - The company periodically reviews its corporate governance practices to ensure compliance with the CG Code[104]. Risk Management and Internal Control - The Group has established a risk management and internal control system to manage risks, including ESG risks, and continuously reviews its effectiveness[164]. - The Audit Committee assists the Board in overseeing the risk management and internal control systems, ensuring an annual review of their effectiveness[167]. - The Board has determined that the Company's risk management and internal control systems are effective and adequate based on reports from the internal audit department and ESG working group[170]. - Procedures have been established to safeguard assets, control capital expenditure, and ensure the reliability of financial information used for business[169]. Environmental, Social, and Governance (ESG) Initiatives - The Group emphasizes the integration of ESG concepts into its risk management system, which is crucial for its daily operations and governance structure[177]. - The Group aims to minimize its potential adverse impact on the environment and preserve natural resources as part of its commitment to sustainability[177]. - The Group treats its stakeholders with mutual respect and care, valuing their contributions and maintaining strong relationships[177]. - The Group's mission is to facilitate human creativity and innovation through the provision of high precision machine tools[177]. - The Group has received the ISO 14001:2015 Environmental Management System certificate, indicating its commitment to minimizing environmental impact[193]. - The Group has implemented various emission reduction measures, including encouraging staff to use public transport and electronic communication to reduce travel[195]. Leadership and Management - Dr. Tang was appointed as the CEO and Chairman of the Company on April 1, 2022, and has been responsible for overall management and strategic planning since joining the Group in November 2005[83]. - The management team has extensive backgrounds in engineering and business strategy, contributing to the Group's competitive edge in the industry[87]. - The leadership structure is designed to support the company's growth strategy and operational effectiveness in a competitive market[88]. - The company has a strong management team with diverse backgrounds in engineering, finance, and wireless communications technology[90][93][95]. Shareholder Engagement and Communication - The Company maintains a proactive investor relations policy, conducting analysts' briefings and participating in investor conferences[161]. - The Group's website provides timely access to press releases, financial reports, and announcements for investors[161]. - The Company encourages shareholders to submit proposals and enquiries in writing to facilitate effective communication[160][162]. Future Outlook - The management is confident in achieving outstanding results in the upcoming financial year, potentially exceeding the previous year's performance due to positive market demand and a substantial order backlog[79]. - The company has been operational for 19 years, gaining a deeper understanding of the market environment and its business model, which supports its confidence in achieving medium and long-term development goals[80].