AUX AUX INTERNATIONAL HOLDINGS LIMITED 奥 克 斯 國 際 控 股 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) (於関曼群島註冊成立的有限公司) STOCK CODE 股份代號：2080 2022 INTERIM REPORT 中期報告 Contents 目錄 Contents 目錄 Corporate Information 公司資料 2 Management Discussion and Analysis 管理層討論與分析 5 Other Information 其他資料 15 Independent Review Report 獨立審閱報告 27 綜合損益表 29 Consolidated Statement of Profit or Loss 綜合損益及其他全面 收益表 Consolidated Statement of Profit or Loss and Other Comprehensive Income 30 綜合財務狀況表 31 Consolidated Stat ...

| --- | --- | --- | |----------------------------------------------------------------------------------------------|----------|---------------| | | | | | (Incorporated in the Cayman Islands with limited liability) ( 於開曼群島註冊成立的有限公司 ) | | | | STOCK CODE 股份代號 : 2080 | | | | | | | | | | | | | 2022 | Annual Report | | | 年度報告 | | | | | | | | | | | | | | Contents 目錄 2 Corporate Information 公司資料 4 Chairman's Statement 主席報告 8 Management Discussion and Analysis 管理層討論與分析 17 Biographical Details of Directors and Senior ...

(Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司 STOCK CODE 股份代號 : 2080 中期報告 2021 INTERIM REPORT Contents 目錄 Contents 目錄 Corporate Information 公司資料 2 Management Discussion and Analysis 管理層討論與分析 5 Other Information 其他資料 15 Independent Review Report 獨立審閱報告 25 綜合損益表 27 Consolidated Statement of Profit or Loss 綜合損益及其他全面 收益表 Consolidated Statement of Profit or Loss and Other Comprehensive Income 28 綜合財務狀況表 29 Consolidated Statement of Financial Position 綜合權益變動表 31 Consolidated Statemen ...

AUX INTERNATIONAL HOLDINGS LIMITED 奥 克 斯 國 際 控 股 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) STOCK CODE 股份代號 : 2080 2021 Annual Report 年度報告 Contents 目錄 2 Corporate Information 公司資料 5 Chairman's Statement 主席報告 9 Management Discussion and Analysis 管理層討論與分析 17 Biographical Details of Directors and Senior Management 董事及高級管理層之簡歷 21 Corporate Governance Report 企業管治報告 36 Environmental, Social and Governance Report 環境、社會及管治報告 70 Report of the Directors 董事會報告 88 Independent A ...

Financial Performance - The Group recorded revenue of approximately HK$137.2 million for the six months ended 30 September 2020, representing a decrease of 21.0% compared to HK$173.8 million for the same period in 2019[29]. - The company reported a loss for the period of HK$7,029,000, contrasting with a profit of HK$18,425,000 in 2019[141]. - Total comprehensive income for the period was HK$525,000, compared to HK$4,517,000 in 2019[141]. - Basic and diluted loss per share was (1.9) cents, down from earnings of 4.9 cents per share in the previous year[139]. - Profit from operations dropped significantly to HK$1,272,000 compared to HK$26,760,000 in the same period last year[139]. - The Group's revenue from property management contracts derived from a single customer amounted to approximately HK$19 million during the six months ended 30 September 2020, indicating a significant reliance on this customer[190]. - Total revenue for the Group in 2020 was HK$19,561,000, compared to HK$22,888,000 in 2019, indicating a decline of approximately 14.3%[195]. Segment Performance - Revenue in the property management segment decreased by 6.4% due to the termination of two property management contracts during the period[18]. - The lifestyle entertainment segment has been significantly impacted by the COVID-19 outbreak, contributing to the overall economic downturn in Hong Kong[17]. - Revenue from the lifestyle entertainment segment decreased by approximately HK$27.8 million to HK$8.8 million for the six months ended 30 September 2020 from HK$36.6 million for the same period in 2019[29]. - For the six months ended September 30, 2020, the reportable segment for Lifestyle Entertainment in Hong Kong reported a loss of HK$5,655,000 compared to a loss of HK$3,489,000 in the same period of 2019[195]. - The Property Management segment in the PRC generated a profit of HK$25,216,000, slightly down from HK$26,377,000 in 2019[195]. Cost Management - Staff costs decreased by approximately 23.9% or HK$19.4 million to approximately HK$61.6 million for the six months ended 30 September 2020 from approximately HK$81.0 million for the same period in 2019[31]. - Property rentals and related expenses decreased by approximately 75.3% or HK$5.6 million to approximately HK$1.9 million for the six months ended 30 September 2020 from approximately HK$7.5 million for the same period in 2019[34]. - Advertising and marketing expenses decreased by approximately 72.2% or HK$2.2 million to HK$0.9 million for the six months ended 30 September 2020 from approximately HK$3.1 million for the same period in 2019[35]. Cash Flow and Financial Position - Total current assets as of 30 September 2020 were approximately HK$298.3 million, while current liabilities were approximately HK$187.8 million, resulting in a current ratio of 1.6 times[45]. - Cash at bank and in hand was approximately HK$190.7 million as of 30 September 2020, down from approximately HK$206.7 million as of 31 March 2020[49]. - Total interest-bearing borrowings as of 30 September 2020 were approximately HK$94.7 million, down from HK$131.3 million as of 31 March 2020[50]. - The gearing ratio as of 30 September 2020 was approximately 0.73, compared to 1.02 as of 31 March 2020[50]. - Cash generated from operating activities was HK$12,316,000, down from HK$13,564,000 in the prior period[151]. - The company incurred a net cash outflow of HK$38,314,000 in financing activities, compared to HK$4,117,000 in the previous year[155]. - Cash and cash equivalents at the end of the period decreased to HK$190,689,000 from HK$195,853,000 in the previous year[155]. Strategic Focus and Business Development - The Group aims to maintain its status as a leading nightlife entertainment service provider in Hong Kong despite the economic challenges posed by COVID-19[23]. - The Group has reshaped the brand of Zentral by offering various music styles and creating different atmospheres in its venues[23]. - The Group is cautiously managing cash flow resources in the lifestyle entertainment segment during the ongoing economic challenges[17]. - The Group aims to diversify its income stream by exploring different business and investment opportunities[62]. - The property management segment experienced a temporary setback but remains a strategic focus due to its potential for stable income and returns for shareholders[72]. Governance and Compliance - The company complied with the Corporate Governance Code during the six months ended 30 September 2020[121]. - The Audit Committee reviewed the accounting principles and practices adopted by the Group for the six months ended 30 September 2020[123][125]. - The interim financial report was prepared in accordance with Hong Kong Accounting Standard 34, with no significant issues identified during the review[134][138]. - The Group's interim financial report is unaudited but has been reviewed by KPMG, ensuring compliance with Hong Kong standards[168]. Shareholder Information - The Board did not recommend the payment of an interim dividend for the six months ended 30 September 2020, consistent with the previous year where no dividend was paid[78]. - As of 30 September 2020, Zheng Jian Jiang held a long position of 219,950,000 shares, representing approximately 58.66% of the issued share capital of the Company[92]. - The Company has adopted a share option scheme effective from 3 January 2014, valid for 10 years, aimed at providing incentives to eligible participants[98]. - As of 30 September 2020, no other persons had disclosed interests or short positions in the shares or underlying shares of the Company under the provisions of the SFO[97]. - The interests of the Directors and chief executive in shares and debentures were fully compliant with the Model Code during the six months ended 30 September 2020[79].

Financial Performance - The Group's total revenue increased by approximately 7.1% from HK$317.6 million last year to HK$340.0 million this year[10]. - The property management segment generated revenue of HK$288.0 million for the year ended 31 March 2020, up from HK$234.1 million for the year ended 31 March 2019[33]. - The Group turned a profit before taxation of HK$29.2 million this year, compared to a loss of HK$2.7 million last year[12]. - The Group reported a profit of approximately HK$13.2 million for the year ended 31 March 2020, a turnaround from a loss of approximately HK$9.6 million for the previous year, primarily due to an increase in revenue of HK$22.4 million and a gain on disposal of a subsidiary of HK$5.0 million[51][53]. - The Group recorded revenue of approximately HK$340.0 million for the year ended 31 March 2020, representing an increase of approximately 7.1% compared to HK$317.6 million for the year ended 31 March 2019[33]. Project Management - The number of projects managed by the Group expanded from 50 to 64, with contracted GFA increasing from 5.92 million sq.m. to 7.19 million sq.m.[11]. - The Group managed a total gross floor area of approximately 7.19 million square meters across 64 projects as of 31 March 2020[32]. - The number of property management projects managed by the Group increased from 50 to 64 during the reporting period[33]. - The property management segment achieved double-digit growth in the past year, with a focus on maintaining service quality and enhancing reputation[81]. Cost Management - Staff costs increased by approximately 8.2% or HK$11.8 million to approximately HK$156.1 million for the year ended 31 March 2020[40]. - Property rentals and related expenses decreased by approximately 65.4% or HK$17.8 million to approximately HK$9.4 million for the year ended 31 March 2020[41]. - Advertising and marketing expenses decreased by approximately 60.7% or HK$6.5 million to approximately HK$4.2 million for the year ended 31 March 2020[42]. - Utilities expenses and repair and maintenance expenses increased by approximately HK$5.0 million or 20.5% for the year ended 31 March 2020[43]. Strategic Initiatives - The Group plans to improve service quality and explore monetization of new services such as online DJ streaming[21]. - Future strategies include consolidating products and services under the lifestyle entertainment segment to enhance brand awareness[22]. - The Group aims to explore new service offerings such as DJ live streaming to enhance profitability in the future[25]. - The Group is open to pursuing investment opportunities in e-commerce and emerging industries to diversify income sources[23]. - The Group plans to explore different business and investment opportunities in areas such as trading, property management, healthcare, and internet information technology, subject to Board approval[65]. - The Group plans to explore various business and investment opportunities in sectors such as trade, property management, healthcare, and emerging industries to expand revenue streams[67]. Corporate Governance - The company has a strong board composition with four executive directors and three independent non-executive directors, ensuring a strong independent element that effectively exercises independent judgment[105]. - The company has complied with all applicable code provisions as set out in the Corporate Governance Code for the year ended March 31, 2020[102]. - The board has delegated its powers to management for daily operations, while providing leadership and strategic decisions[104]. - The company recognizes the importance of corporate transparency and accountability, committing to high standards of corporate governance[101]. - The independent non-executive directors represent more than one-third of the board, fulfilling the requirements of the Listing Rules[105]. - The company has adopted The Model Code for Securities Transactions by Directors, ensuring compliance throughout the year ended March 31, 2020[103]. - The board includes members with appropriate professional accounting qualifications and financial management expertise[105]. - The company aims to improve its corporate image through effective corporate governance procedures[101]. - The board believes that its governance practices lead to better results for the group[101]. - The company has maintained a strong governance framework to enhance performance and accountability[101]. Risk Management - The Group's risk management framework, established in 2016, follows the COSO Enterprise Risk Management — Integrated Framework, allowing effective risk management by the Board and management[192][195]. - The Audit Committee conducted an annual review of the effectiveness of the Group's risk management and internal control systems, ensuring adequate resources and staff qualifications[184][190]. - The Group maintains a risk register that tracks all identified major risks, updated at least annually, to ensure proactive risk management[197]. - Management is committed to integrating risk management into daily business operations to align with corporate goals effectively[198]. - The Group will continue to engage external independent professionals for annual reviews of its internal controls and risk management systems[199]. - There is currently no internal audit function within the Group; external professionals are appointed for this purpose due to cost-effectiveness considerations[200]. - Improvements in internal control and risk management measures recommended by BTCG were adopted by the Board to enhance the Group's systems[190]. - The Board considers the internal control and risk management systems effective and adequate based on findings from independent reviews and Audit Committee comments[190]. - The Group's risk management activities are ongoing, with effectiveness evaluated at least annually through periodic management meetings[198]. Employment and Workforce - The Group employed approximately 1,304 employees as of March 31, 2020, an increase from 1,205 employees as of March 31, 2019[71]. Economic Outlook - The Group expects a prolonged recovery for the overall economic conditions in Hong Kong due to the COVID-19 outbreak, impacting the lifestyle entertainment segment[72]. - The lifestyle entertainment segment has been severely affected by COVID-19, but the Group anticipates a rebound in demand as restrictions ease[74]. Dividend Policy - The Board does not recommend the payment of a final dividend for the year ended March 31, 2020, consistent with the previous year[83].

| --- | --- | |----------------------------------------------------------------------------------------------|-------| | | | | | | | aux international holdings limited | | | 奥 克 斯 國 際 控 股 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) | | Contents 目錄 Corporate Information 公司資料 2 Management Discussion and Analysis 管理層討論與分析 5 Other Information 其他資料 17 Independent Review Report 獨立審閱報告 28 綜合損益表 30 Consolidated Statement of Profit or Loss Consolidated Statement of Profit or Loss and Other Co ...

Financial Performance - The Group's total revenue increased by approximately 18.2% from HK$268.2 million last year to HK$317.6 million this year[9]. - Revenue contribution from Ningbo AUX Property Management Service Co., Ltd rose by approximately HK$66.8 million from HK$167.3 million to HK$234.1 million[9]. - The Group recorded revenue of approximately HK$317.6 million for the year ended 31 March 2019, representing an increase of approximately 18.4% compared to HK$268.2 million for the previous year[38]. - Property management services generated revenue of HK$234.1 million, up from HK$167.3 million in the previous year[38]. - The Group's loss for the year ended 31 March 2019 was approximately HK$9.6 million, a decrease from a loss of approximately HK$25.5 million for the year ended 31 March 2018, primarily due to an increase in revenue of HK$49.3 million and a net exchange gain of HK$7.0 million[47][52]. Project Management and Expansion - The number of projects managed by the Group expanded from 32 to 50, with the aggregate contracted GFA increasing from 5.33 million square meters to 5.92 million square meters[10]. - The number of property management projects managed by the Group increased from 32 to 50 projects during the year under review[38]. - The property management services segment has experienced healthy growth and will continue to expand into managing hospital premises and industrial parks[87]. Expenses and Costs - Loss before taxation significantly decreased by HK$17.9 million from HK$20.6 million last year to HK$2.7 million this year[12]. - The Group's property cleaning expenses and staff costs increased by HK$10.8 million and HK$37.0 million respectively due to the expansion of the property management business[11]. - Staff costs increased by approximately 34.5% or HK$37.0 million to approximately HK$144.3 million for the year ended 31 March 2019[39]. - Property rentals and related expenses decreased by approximately 19.3% or HK$6.5 million to approximately HK$27.2 million for the year ended 31 March 2019[43]. - Advertising and marketing expenses decreased by approximately 22.5% or HK$3.1 million to approximately HK$10.7 million for the year ended 31 March 2019[44]. - Utilities expenses increased by approximately HK$5.3 million or 66.4% for the year ended 31 March 2019[45]. - Repair and maintenance expenses increased by approximately HK$4.1 million or 57.0% for the year ended 31 March 2019[45]. Corporate Governance - The Company has complied with all applicable code provisions of the Corporate Governance Code for the year ended March 31, 2019[111]. - The independent non-executive Directors represent more than one-third of the Board, ensuring strong independent judgment[114]. - The Company is committed to achieving high standards of corporate governance to improve its corporate image[110]. - The Board has delegated daily management and operations powers to the management team[113]. - The Audit Committee, established on January 3, 2014, includes three independent non-executive Directors and oversees the financial reporting process and internal controls[153]. Strategic Focus and Future Plans - The Group aims to enhance its property management services' brand image and explore opportunities to expand income streams from non-residential properties[18]. - The Group plans to explore different business and investment opportunities in areas such as trading, property management, and internet information technology to diversify its income stream[67]. - The Group expects the overall economic condition in Hong Kong to remain uncertain due to the prolonged trade dispute between China and the USA, impacting its clubbing business[79]. - The Group will focus its resources on improving its clubbing business performance and rebranding itself as a leading entertainment services provider in Hong Kong[86]. Management and Leadership - The Company has a strong management team with over 24 years of corporate management experience from Mr. Zheng Jiang and over 25 years in finance management from Ms. Shen Guoying[92][96]. - The company is led by CEO Mr. Wong Hei Yan, who has over 20 years of experience in the clubbing industry[106]. - The Board comprised four executive Directors and three independent non-executive Directors as of March 31, 2019[114]. - The management team includes professionals with qualifications from prestigious institutions, enhancing the Company's governance and operational capabilities[94][104]. Shareholder Information - Mr. Zheng Jiang holds approximately 58.66% of the issued share capital of the Company through Ze Hong Limited, which owns 10% of Huiri Limited[90]. - The Board does not recommend the payment of a final dividend for the year ended March 31, 2019, consistent with the previous year[88]. Risk Management and Internal Controls - The Audit Committee conducted an annual review of the risk management and internal control systems, ensuring they are effective and adequate[192][198]. - The Group appointed Corporate Governance Professional Limited to assist in identifying risks and conducting an independent internal control review[193][196]. - The Audit Committee reviewed the effectiveness of the internal control system of the Group[158].