Group 1 - The company, Digital China Group Co., Ltd., has suspended trading in Hong Kong [1]

Core Insights - The core viewpoint of the articles emphasizes the integration of technology and cultural tourism, highlighting how TaiGang Digital Technology Group is transforming the tourism experience through innovative technologies [1][3][5]. Group 1: Technology Integration - TaiGang Digital Technology Group focuses on the deep integration of "technology + cultural tourism," breaking the traditional one-way communication model in tourism consumption [1][3]. - The company employs cutting-edge technologies such as artificial intelligence, augmented reality, and the Internet of Things to create a new paradigm of tourism experiences that are "perceptible, participatory, and creative" [1][3]. - AI algorithms analyze user behavior data to provide personalized recommendations, while augmented reality integrates virtual elements into physical spaces, enhancing immersive experiences [1][3]. Group 2: Experience Enhancement - The company enhances the emotional impact of cultural tourism content through high-resolution rendering and dynamic lighting technologies, allowing for detailed scene restoration [3]. - Interaction is facilitated through gesture recognition, voice interaction, and body feedback, enabling natural user engagement with content [3]. - The design incorporates branching narratives and user co-creation, transforming users from passive observers to active participants, fostering emotional resonance and social connections [3]. Group 3: Collaborative Ecosystem - TaiGang Digital Technology Group promotes collaborative development in cultural tourism consumption through an open ecosystem approach [3]. - The establishment of a technology platform, content platform, and operational network integrates resources from cultural tourism institutions, technology companies, and consumption scenarios, creating a "shared technology, co-created content, and symbiotic value" ecosystem [3]. - This collaborative ecosystem breaks down the isolation effect in cultural tourism consumption, enabling traditional venues like museums and theaters to synergize with emerging sectors such as the metaverse and live e-commerce [3]. Group 4: Future Outlook - As technology enhances interactivity, immersion, and dissemination in cultural tourism, consumption evolves from mere transactions to emotional resonance and value co-creation [5]. - TaiGang Digital Technology Group's exploration in unlocking new tourism consumption scenarios reveals the core logic of cultural tourism industry development in the digital economy era, painting a broader picture for the future of the industry through continuous innovation [5].

Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 220,276,000, a decrease of 38.8% compared to HKD 360,063,000 for the same period in 2023[8] - Gross profit for the same period was HKD 21,531,000, down 44.5% from HKD 38,447,000 year-over-year[8] - The company reported a net loss of HKD 18,222,000 for the six months ended September 30, 2024, compared to a profit of HKD 1,368,000 in the prior year[8] - Total comprehensive loss for the period was HKD 17,987,000, compared to a comprehensive income of HKD 969,000 in the same period last year[8] - Basic loss per share for the period was HKD (2.92), compared to earnings per share of HKD 0.22 in the previous year[8] - The company reported a loss before tax of HKD 19,268 for the period, compared to a loss of HKD 6,806 in the previous year[31] - The company reported a loss attributable to owners of HKD 18,222,000 for the six months ended September 30, 2024, compared to a profit of HKD 1,368,000 in the same period of 2023[46] - Total revenue decreased by approximately HKD 139.8 million or 38.8% from about HKD 360.1 million in the 2023 fiscal period to about HKD 220.3 million in the 2024 fiscal period[74] - The company recorded a loss of approximately HKD 18.2 million in the 2024 fiscal period, compared to a profit of about HKD 1.4 million in the 2023 fiscal period[85] Revenue Breakdown - Revenue from the distribution of IT products was HKD 106,072, down 56.9% from HKD 245,881 in the previous year[23] - Revenue from system integration solutions was HKD 114,204, an increase of 17.7% compared to HKD 96,950 in the prior year[31] - The geographic revenue breakdown shows that revenue from Hong Kong was HKD 217,405, down 39.0% from HKD 356,460 in the previous year[23] - Revenue recognized over time was HKD 33,279, slightly up from HKD 32,224 in the previous year[27] - Revenue from the distribution business in the 2024 fiscal period was approximately HKD 106.1 million, a decrease of about HKD 157 million or 59.7% compared to approximately HKD 263.1 million in the 2023 fiscal period[74] - Revenue from the system integration solutions business increased by approximately HKD 17.2 million or 17.8% to about HKD 114.2 million in the 2024 fiscal period, driven by increased sales of cloud products and services[74] Assets and Liabilities - The company's total assets as of September 30, 2024, were HKD 418,310,000, compared to HKD 453,006,000 as of March 31, 2024[10] - Current liabilities decreased to HKD 264,383,000 from HKD 280,432,000 as of March 31, 2024[10] - The company's net asset value as of September 30, 2024, was HKD 175,875,000, down from HKD 193,862,000 as of March 31, 2024[10] - As of September 30, 2024, total trade receivables amounted to HKD 307,373,000, a decrease from HKD 372,810,000 as of March 31, 2024[52] - Total trade payables as of September 30, 2024, were HKD 144,536,000, down from HKD 184,556,000 as of March 31, 2024[57] - The company reported bank borrowings of approximately HKD 60,782,000 as of September 30, 2024, an increase from HKD 57,867,000 as of March 31, 2024[58] - The total equity as of September 30, 2024, was HKD 6,250,000,000, unchanged from previous periods[60] - The group's net debt decreased from approximately HKD 57,700,000 on March 31, 2024, to approximately HKD 57,300,000 on September 30, 2024[86] - Total equity decreased from approximately HKD 193,900,000 on March 31, 2024, to approximately HKD 175,900,000 on September 30, 2024, resulting in a net capital debt ratio increase from about 29.6% to approximately 32.7%[86] Cash Flow and Investments - Operating cash flow before changes in working capital was negative HKD 7,250, compared to positive HKD 7,463 in the previous year[15] - Net cash used in investing activities was HKD 4,728, a significant improvement from negative HKD 13,110 in the same period last year[15] - Net cash used in financing activities was HKD 4,134, compared to negative HKD 1,192 in the previous year[15] - Cash and cash equivalents at the end of the period were HKD 10,457, down from HKD 12,765 at the end of the previous year[15] - The company acquired property and equipment amounting to approximately HKD 65,000,000 during the six months ended September 30, 2024, down from HKD 114,000,000 in the same period of 2023[47] - The group incurred capital expenditures of HKD 100,000 for the acquisition of property, plant, and equipment, as well as intangible assets for the six months ended September 30, 2024, consistent with the previous fiscal period[89] Employee and Administrative Costs - Employee costs, including director remuneration, increased to HKD 31,884,000 from HKD 30,213,000 year-on-year[40] - Short-term employee benefits for the six months ended September 30, 2024, were HKD 2,401,000, a decrease from HKD 3,220,000 in the same period of 2023[62] - Administrative expenses decreased by approximately HKD 1.8 million or 10.5% to about HKD 15.3 million in the 2024 fiscal period, mainly due to reduced legal and professional fees[81] Legal and Compliance Matters - The company has reached a preliminary settlement agreement with the Competition Commission, agreeing to pay approximately HKD 1,345,000, which includes a fine of HKD 1,190,000[65] - The company has not made any provisions regarding the legal proceedings initiated by the Competition Commission as of March 31, 2023, due to insufficient information[65] - The company did not declare or propose any dividends for the six months ended September 30, 2024, consistent with the previous year[45] - The group did not declare any interim dividend for the six months ended September 30, 2024, consistent with the previous period[96] Future Outlook and Strategic Initiatives - The company anticipates continued demand for hyper-converged infrastructure products and AI servers driven by the ongoing digital transformation needs of enterprises[69] - The company is facing delays in the expansion of its system integration solutions business due to a shortage of market talent and labor supply[114] - The company is upgrading its equipment, software, hardware, and ERP systems, with an expected total expenditure of HKD 2.9 million to be fully utilized by March 31, 2025[108] - The company established a new centralized service department to provide 24/7 technical support and detection and response services[108] Shareholder and Governance Matters - The company’s major shareholder, Ip Group, holds 393,720,000 shares, representing 62.99% of the company’s equity[121] - The company has adopted a share option scheme approved by shareholders on December 19, 2022, but has not granted any options as of the report date[125] - The company has adopted the corporate governance code as per the listing rules, with a deviation from the code regarding the separation of the roles of Chairman and CEO[127] - The audit committee, composed of three independent non-executive directors, has reviewed and agreed on the accounting principles and practices adopted by the group[132]

Financial Performance - The group recorded revenue of approximately HKD 220,300,000 and gross profit of about HKD 21,500,000 for the six months ended September 30, 2024, representing a decrease of approximately 38.8% and 44.0% respectively compared to the same period in 2023[2]. - The group incurred a loss of approximately HKD 18,200,000 for the six months ended September 30, 2024, compared to a profit of approximately HKD 1,400,000 for the same period in 2023[2]. - Basic loss per share for the six months ended September 30, 2024, was HKD 2.92, compared to basic earnings per share of HKD 0.22 for the same period in 2023[2]. - The company reported a pre-tax loss of HKD 19,268 thousand for the six months ended September 30, 2024, compared to a pre-tax profit of HKD 1,490 thousand for the same period in 2023[29]. - The company reported a loss attributable to shareholders of HKD 18,222,000 for the six months ended September 30, 2024, compared to a profit of HKD 1,368,000 for the same period in 2023, indicating a significant decline in performance[42]. - For the fiscal year 2024, the company recorded a loss of approximately HKD 18,200,000 compared to a profit of approximately HKD 1,400,000 in the fiscal year 2023[71]. Revenue Breakdown - For the six months ended September 30, 2024, the total revenue was HKD 220,276 thousand, a decrease of 38.8% compared to HKD 360,063 thousand for the same period in 2023[22]. - The distribution business generated revenue of HKD 106,072 thousand, down 59.8% from HKD 263,113 thousand in the previous year[17]. - The system integration solutions business reported revenue of HKD 114,204 thousand, an increase of 17.5% from HKD 96,950 thousand in the prior year[18]. - Revenue recognized over time was HKD 33,279 thousand, up 3.3% from HKD 32,224 thousand in the previous year[25]. - Total revenue decreased by approximately HKD 139.8 million or 38.8% from about HKD 360.1 million in the fiscal period ending September 30, 2023, to about HKD 220.3 million in the fiscal period ending September 30, 2024[55]. - Revenue from the distribution business for the fiscal period 2024 was approximately HKD 106.1 million, a decrease of about HKD 157 million or 59.7% compared to approximately HKD 263.1 million in the fiscal period 2023[55]. - Revenue from the system integration solutions business increased by approximately HKD 17.2 million or 17.8%, from about HKD 97 million in the fiscal period 2023 to approximately HKD 114.2 million in the fiscal period 2024[55]. Expenses and Costs - The total operating expenses, including sales and distribution expenses and administrative expenses, amounted to HKD 32,337 thousand for the current period[29]. - Employee costs, including director remuneration, increased to HKD 31,884,000 from HKD 30,213,000 year-on-year, reflecting a rise of approximately 5.5%[6]. - The cost of inventory recognized as an expense decreased significantly to HKD 153,218,000 from HKD 294,089,000, representing a reduction of about 47.9%[6]. - Selling and distribution expenses increased by approximately HKD 400,000 or 2.4% to about HKD 17 million in the fiscal period 2024, mainly due to increased commission expenses in the system integration solutions segment[67]. - Administrative expenses decreased by approximately HKD 1.8 million or 10.5% to about HKD 15.3 million in the fiscal period 2024, primarily due to reduced legal and professional fees[68]. - Financing costs increased by approximately HKD 300,000 or 17.6% to about HKD 2 million in the fiscal period 2024, mainly due to increased bank borrowings[69]. Assets and Liabilities - Total assets less current liabilities amounted to HKD 181,114,000 as of September 30, 2024, compared to HKD 200,326,000 as of March 31, 2024[6]. - Non-current assets were valued at HKD 27,187,000 as of September 30, 2024, slightly down from HKD 27,752,000 as of March 31, 2024[6]. - Current liabilities decreased to HKD 264,383,000 as of September 30, 2024, from HKD 280,432,000 as of March 31, 2024[6]. - The group reported a net asset value of HKD 175,875,000 as of September 30, 2024, down from HKD 193,862,000 as of March 31, 2024[9]. - The group’s total equity decreased to HKD 175,875,000 as of September 30, 2024, from HKD 193,862,000 as of March 31, 2024[9]. - Total trade receivables as of September 30, 2024, amounted to HKD 307,373,000, down from HKD 372,810,000 as of March 31, 2024, indicating a decrease of approximately 17.5%[46]. - The total amount of trade payables as of September 30, 2024, was HKD 144,536,000, a decrease from HKD 184,556,000 as of March 31, 2024, reflecting a decline of about 21.7%[49]. - As of September 30, 2024, the company's bank borrowings amounted to approximately HKD 60,700,000, a slight increase of about HKD 800,000 or 1.4% from HKD 59,900,000 on March 31, 2024[73]. - The company's net debt decreased from approximately HKD 57,700,000 on March 31, 2024, to approximately HKD 57,300,000 on September 30, 2024[73]. - The company's total equity decreased from approximately HKD 193,900,000 on March 31, 2024, to approximately HKD 175,900,000 on September 30, 2024[73]. - The net capital debt ratio increased from approximately 29.6% on March 31, 2024, to approximately 32.7% on September 30, 2024[73]. Dividends and Shareholder Returns - The board of directors did not recommend the payment of any interim dividend for the six months ended September 30, 2024[2]. - The company did not declare or recommend any dividends for the six months ended September 30, 2024, consistent with the previous year[40]. - The company has not purchased, sold, or redeemed any of its listed securities in the six months ending September 30, 2024[98]. Corporate Governance and Compliance - The company has adopted the corporate governance code and has complied with its provisions, except for a deviation regarding the separation of the roles of Chairman and CEO[99][101]. - The audit committee, consisting of three independent non-executive directors, has reviewed and agreed on the accounting principles and practices adopted by the group[103]. Capital Expenditures and Investments - The company acquired property and equipment for approximately HKD 65,000,000 during the six months ended September 30, 2024, compared to HKD 114,000,000 in the same period of 2023[43]. - The company incurred capital expenditures of HKD 100,000 for the acquisition of property, plant, and equipment, consistent with the previous fiscal year[76]. - As of September 30, 2024, the company had no significant investments[86]. Use of Proceeds - The estimated net proceeds from the share sale are approximately HKD 71.2 million, with the actual net proceeds being around HKD 66 million after deducting underwriting fees and expenses[91]. - As of September 30, 2024, the planned use of the net proceeds includes expanding the IT distribution segment with an allocation of HKD 36.5 million, which has been fully utilized[94]. - The expansion of the system integration solutions segment has an allocated amount of HKD 13.5 million, with HKD 5.9 million utilized and HKD 7.6 million expected to be fully utilized by March 31, 2025[94][96]. - A new centralized service department for IT maintenance and support services has been established with an allocation of HKD 5.1 million, which has been fully utilized[94]. - Marketing efforts to enhance brand awareness have an allocation of HKD 1.3 million, which has been fully utilized[94]. - Upgrading the group's equipment, software, hardware, and ERP systems has an allocation of HKD 2.9 million, with HKD 2 million utilized and HKD 0.9 million expected to be fully utilized by March 31, 2025[94][97]. - As of September 30, 2024, the total utilized and unutilized net proceeds amount to HKD 66 million, with HKD 57.5 million utilized and HKD 8.5 million remaining[94]. Employee Information - The company employed approximately 184 employees as of September 30, 2024, an increase from 180 employees on March 31, 2024[88]. Other Information - The company has reached a preliminary settlement agreement with the Competition Commission, agreeing to pay approximately HKD 1,345,000, which includes a fine of HKD 1,190,000 and investigation costs of HKD 155,000[52]. - There were no significant events occurring after September 30, 2024[90]. - The company applied new and revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial position and performance for the current and prior periods[14]. - The tax expense for the six months ended September 30, 2024, was HKD (1,046) thousand, compared to HKD 122 thousand for the same period in 2023[36]. - The company operates in Hong Kong, China (excluding Hong Kong and Macau), and Macau, focusing on distributing IT products and providing related services[20]. - The company has not disclosed asset and liability analysis by operating and reportable segments as it is not regularly reviewed by the chief operating decision maker[34]. - The company reported a net foreign exchange loss of HKD 126,000 for the six months ended September 30, 2024, down from a loss of HKD 319,000 in the previous year[6].

Financial Performance - Total revenue decreased by approximately HKD 124.4 million or 16.5% to about HKD 628.1 million for the fiscal year ending March 31, 2024, compared to approximately HKD 752.5 million in the previous year[9]. - Revenue from the distribution business was approximately HKD 413.7 million, a decrease of about HKD 91.3 million or 18.1% from approximately HKD 505 million in the previous year[12]. - Revenue from the system integration solutions business was approximately HKD 214.4 million, down about HKD 33.1 million or 13.4% from approximately HKD 247.5 million in the previous year[12]. - Sales from content delivery network licensing dropped significantly from approximately HKD 290.4 million to about HKD 150 million, a decrease of approximately HKD 140.4 million[12]. - Gross profit fell by approximately HKD 55.7 million or 44.0% to about HKD 71.0 million, with the overall gross margin declining from 16.8% to 11.3%[18]. - Other income and net gains decreased by approximately HKD 3.5 million or 77.8% to about HKD 1.0 million, primarily due to the absence of government subsidies received in the previous year[20]. - The net loss for the year was approximately HKD 15.0 million, compared to a net profit of approximately HKD 43.7 million in the previous year[27]. - Net debt increased from approximately HKD 42.1 million to about HKD 57.3 million, reflecting a significant decrease in cash and cash equivalents by approximately HKD 17.8 million or 62.5%[28]. - The total equity decreased from approximately HKD 209.2 million to about HKD 193.9 million, resulting in an increase in the net capital debt ratio from approximately 20.1% to 29.6%[28]. Operational Challenges - The company faces a significant challenge of talent shortage, which is impacting the entire industry due to rapid technological advancements[9]. - The economic environment has led to a decrease in project numbers, affecting overall demand for system integration solutions[9]. - The company is focused on strategic adjustments to navigate through the current uncertainties in the market[10]. - The company emphasizes its resilience and adaptability in overcoming challenges and maintaining its commitment to providing high-quality solutions[10]. Employee and Management - The group employed approximately 180 staff as of March 31, 2024, an increase from 135 staff in the previous year[44]. - Employee costs for the year included performance-related bonuses and director remuneration of approximately HKD 57,800,000, slightly down from HKD 58,800,000 in the previous year[44]. - The company emphasizes the importance of employee development and has adopted a new share option plan to recognize and incentivize contributions from eligible participants, including employees[55]. Corporate Governance - The company is committed to high standards of corporate governance to ensure long-term shareholder returns and stakeholder benefits[129]. - The board consists of seven members, including two executive directors, two non-executive directors, and four independent non-executive directors[133]. - The audit committee consists of three independent non-executive directors, ensuring oversight of accounting principles and policies[124]. - The company has established a robust internal control and risk management system to monitor operational and financial performance[140]. - The board has maintained compliance with the corporate governance code, except for a specific provision regarding the roles of the chairman and CEO[129]. Shareholder Relations - The company has established multiple channels for ongoing communication with shareholders, including annual general meetings and the company website[196]. - The company encourages shareholder participation in meetings and supports proxy voting for those unable to attend[199]. - The company will publish voting results from general meetings on its website and the stock exchange after each meeting[193]. Capital Management - The group reached a preliminary settlement agreement with the Competition Commission, agreeing to pay approximately HKD 1,345,000, which includes a fine of HKD 1,190,000 and investigation costs of HKD 155,000[34]. - The company has allocated HKD 5.1 million for IT maintenance and support services, with all funds already utilized[77]. - The company plans to fully utilize HKD 36.5 million for expanding its IT distribution business by March 31, 2025, with HKD 10.6 million already utilized[77]. Legal and Compliance - The company has complied with relevant laws and regulations that significantly impact its business and operations during the year[52]. - There were no significant disputes between the company and its employees, suppliers, or customers during the year[56]. - The company has not engaged in any arrangements that would allow directors or their associates to benefit from the purchase of shares or debt securities[97]. Future Outlook - The company remains optimistic about the long-term development of the IT industry in Hong Kong despite the challenging macroeconomic environment and increasing market competition[13]. - The company anticipates delays in the utilization of funds for system integration solutions due to labor supply issues, affecting the original timeline[84].

Financial Performance - The total revenue for the year was approximately HKD 628.1 million, a decrease of about HKD 124.4 million or 16.5% compared to the previous year's revenue of approximately HKD 752.5 million[24]. - The company reported a loss of approximately HKD 15 million for the year, compared to a profit of HKD 43.7 million in the previous year[24]. - The basic loss per share for the year was HKD 0.024, while the previous year's basic earnings per share were HKD 0.0775[24]. - Gross profit for the year was HKD 70.976 million, down from HKD 126.718 million in the previous year[2]. - The group reported a pre-tax loss of HKD 16,807,000 for the year[43]. - The company recorded a net loss of approximately HKD 15 million for the year, compared to a net profit of approximately HKD 43.7 million in the previous year[87]. - The group recorded a loss of HKD 14.973 million for the year ended March 31, 2024, compared to a profit of HKD 43.737 million in the previous year[195]. Revenue Breakdown - Revenue from the distribution business for the year was approximately HKD 413.7 million, a decrease of about HKD 91.3 million or 18.1% compared to approximately HKD 505 million in the previous year[81]. - Revenue from the system integration solutions business for the year was approximately HKD 214.4 million, down about HKD 33.1 million or 13.4% from approximately HKD 247.5 million in the previous year[81]. - Total revenue for the year ended March 31, 2024, decreased by approximately HKD 124.4 million or 16.5% to about HKD 628.1 million from approximately HKD 752.5 million in the previous year[81]. Expenses and Costs - Total operating expenses, including sales and distribution expenses, were HKD 36.170 million and administrative expenses were HKD 34.470 million[2]. - Administrative expenses increased by approximately HKD 3.8 million or 12.4% to about HKD 34.5 million, mainly due to higher legal and professional fees[84]. - Sales cost decreased by approximately HKD 68.7 million or 11.0% to about HKD 557.1 million, consistent with the decline in revenue during the same period[178]. - Financing costs for the year were HKD 3.705 million, compared to HKD 2.971 million in the previous year[2]. - Financing costs increased by approximately HKD 700,000 or 23.3% to about HKD 3.7 million, primarily due to increased interest from bank borrowings[181]. Assets and Liabilities - Non-current assets totaled HKD 27.752 million, a slight decrease from HKD 28.944 million in the previous year[6]. - Current assets increased to HKD 453.006 million from HKD 358.790 million in the previous year[6]. - The company's total equity decreased to HKD 193.862 million from HKD 209.159 million in the previous year[6]. - Net debt increased from approximately HKD 42.1 million as of March 31, 2023, to approximately HKD 57.3 million as of March 31, 2024, primarily due to a significant decrease in cash and cash equivalents[88]. - The total trade receivables increased to HKD 382,444,000 in 2024 from HKD 246,474,000 in 2023, representing a growth of 55%[171]. Tax and Dividends - The company recorded a tax credit of approximately HKD 1,800,000 for the current year, compared to a tax expense of about HKD 9,200,000 in the previous year, attributed to a net loss this year versus a net profit last year[64]. - The company did not declare or pay any dividends to shareholders for the year ended March 31, 2024[75]. - The group did not declare any final dividend for the year ended March 31, 2024, consistent with the previous year[189]. Market and Industry Outlook - The company anticipates continued growth in Hong Kong's IT industry driven by increased internet usage through smartphones and high-speed broadband connections[54]. - The demand for hyper-converged infrastructure products is expected to rise due to increased investments in data center infrastructure in Hong Kong[55]. - The company is focusing on the demand for AI infrastructure, including AI servers and storage, driven by the adoption of machine learning and deep learning technologies in Hong Kong[176]. Governance and Compliance - The company has a strong governance structure, with the roles of Chairman and CEO held by the same individual, Mr. Ye, since 2013, which the board believes provides effective leadership[147]. - The audit committee, composed of three independent non-executive directors, has reviewed and agreed on the accounting principles and practices adopted by the group[135]. - The group’s financial statements for the year ended March 31, 2024, have been agreed upon by the auditors and are consistent with the amounts approved by the board[136]. Other Information - The company sold properties and equipment worth approximately HKD 56,000,000 during the year, compared to about HKD 17,998,000 in the previous year[49]. - The group incurred a penalty of HKD 1.345 million, which has been recognized in the financial statements for the year ended March 31, 2024[187]. - The group faced foreign exchange risks primarily from sales in HKD and approximately 32.2% of procurement valued in USD[188].

Financial Performance - The company's profit attributable to owners for the six months ended September 30, 2023, was HKD 1,368,000, compared to HKD 31,110,000 for the same period in 2022, representing a significant decrease[31]. - Revenue from goods and services for the six months ended September 30, 2023, was HKD 360,063,000, down from HKD 406,141,000 in the same period of 2022, indicating a decline of approximately 11.4%[53]. - Gross profit for the same period was HKD 38,447, down 48.2% from HKD 74,069 year-on-year[100]. - The net profit for the six months was HKD 1,368, a decrease of 95.6% compared to HKD 31,110 in the previous year[100]. - Total revenue for the six months ended September 30, 2023, decreased by approximately HKD 46 million or 11.3% to about HKD 360.1 million compared to approximately HKD 406.1 million for the same period in 2022[180]. - Gross profit decreased by approximately HKD 35.6 million or 48.0% from about HKD 74.1 million in the fiscal year 2022 to about HKD 38.4 million in the fiscal year 2023, with the overall gross margin dropping from 18.2% to 10.7%[197]. Assets and Liabilities - As of September 30, 2023, total assets amounted to HKD 478.9 million, an increase from HKD 358.79 million as of March 31, 2023, representing a growth of approximately 33.5%[11]. - Current liabilities rose significantly to HKD 289.5 million from HKD 170.15 million, marking an increase of approximately 70.1%[11]. - Total trade receivables as of September 30, 2023, amounted to HKD 378,189,000, an increase of 56.3% from HKD 242,120,000 as of March 31, 2023[119]. - The total liabilities, including trade payables and other payables, increased to HKD 200,312,000 from HKD 76,834,000, representing a rise of approximately 161%[126]. - The total amount of bank borrowings as of September 30, 2023, was approximately HKD 62,806,000, slightly up from HKD 59,011,000 as of March 31, 2023[142]. Revenue Breakdown - Revenue from the Hong Kong market was HKD 356,460,000, a decrease from HKD 401,002,000 year-on-year, reflecting a decline of about 11.1%[53]. - Distribution business revenue for the six months ended September 30, 2023, was HKD 263,113,000, a decrease of 9.2% from HKD 289,583,000 in the same period of 2022[57]. - System integration solutions business revenue for the six months ended September 30, 2023, was HKD 96,950,000, down 16.8% from HKD 116,558,000 in the same period of 2022[68]. Cash Flow and Investments - The company reported a cash balance of HKD 12.77 million, down from HKD 28.51 million, a decrease of approximately 55.2%[11]. - The net cash flow from operating activities for the six months ended September 30, 2023, was HKD 7,463,000, compared to HKD 43,251,000 for the same period in 2022, representing a decrease of approximately 82.7%[110]. - The company plans to invest in new product development to meet evolving customer demands and market trends[21]. - The company plans to expand its IT distribution business segment with an estimated expenditure of HKD 36.5 million, of which HKD 26.2 million has been utilized as of September 30, 2023[121]. Governance and Management - The board of directors has undergone changes, with new appointments aimed at strengthening governance and oversight[5]. - The company has implemented good corporate governance practices in its management structure and internal control procedures[147]. Market and Operational Challenges - The company is facing challenges in retaining qualified IT professionals due to a shortage of talent, which is increasing employee cost pressures and impacting profitability[183]. - The cautious corporate environment due to high interest rates has led to a conservative approach towards capital expenditure, affecting sales flow[190]. - The geopolitical tensions between the US and China, along with the Russia-Ukraine war, have significantly impacted the global business environment, creating uncertainty that may affect international operations and profitability[190]. Future Outlook - Future guidance indicates a commitment to improving operational efficiency and exploring potential mergers and acquisitions to drive growth[21]. - The company anticipates continued demand for hyper-converged infrastructure products and AI servers driven by the ongoing digital transformation needs of enterprises[173]. - The company expects that the adoption of machine learning and deep learning technologies by businesses in Hong Kong will lead to increased demand for AI infrastructure, including AI servers and storage[182].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 MTT GROUP HOLDINGS LIMITED 數科集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2350） 截至二零二三年九月三十日止六個月之 未經審核中期業績公告 財務摘要 本集團於截至二零二三年九月三十日止六個月分別錄得收益及毛利約360,100,000港元及 約38,400,000港元，而於截至二零二二年九月三十日止六個月則分別錄得收益及毛利約 406,100,000港元及約74,100,000港元，分別減少約11.3%及約48.2%。 截至二零二三年九月三十日止六個月，本集團溢利減少至約1,400,000港元（截至二零二二 年九月三十日止六個月：約31,100,000港元），較二零二二年同期減少約95.5%。 ...

Financial Performance - The company's profit decreased by approximately HKD 3,600,000 or 7.6% year-on-year, totaling around HKD 43,700,000[5] - Income tax expenses decreased by approximately HKD 1,300,000 or 12.4% to about HKD 9,200,000, attributed to a reduction in pre-tax profit[17] - The profit for the year decreased by approximately HKD 3.6 million or 7.6%, from approximately HKD 47.3 million in the previous year to approximately HKD 43.7 million[71] Expenses and Costs - Administrative expenses increased by approximately HKD 6,300,000 or 25.8% to about HKD 30,700,000, primarily due to higher legal and professional fees[16] - The group faced increased employee cost pressures due to a shortage of IT professionals in Hong Kong, impacting profitability[94] - As of March 31, 2023, employee costs including performance-related bonuses and director remuneration amounted to approximately HKD 58.8 million, an increase from HKD 56.6 million in the previous year[49] Debt and Liquidity - The group's net debt decreased from approximately HKD 63,100,000 to about HKD 42,100,000, with cash and cash equivalents increasing by 65.7% to approximately HKD 28,500,000[18] - The company has sufficient liquidity to meet its current and future operational funding needs[19] Capital Expenditures - Capital expenditures for property and equipment amounted to HKD 14,900,000, a significant increase from HKD 2,500,000 in the previous year[46] Corporate Governance - The board of directors confirmed compliance with the corporate governance code from the date of listing to the report date, ensuring adherence to established standards[84] - The company has adopted the corporate governance code as a basis for its governance practices[108] - The audit committee is composed of three independent non-executive directors, ensuring compliance with the listing rules and financial management standards[153] Employee Relations and Development - The company emphasizes the importance of employee development and has adopted a new share option plan to recognize and incentivize eligible participants, including employees[52] - The company has conducted training courses for all directors covering various relevant topics, including corporate governance and regulatory updates[123] Shareholder and Market Information - The company successfully listed on the Hong Kong Stock Exchange on September 26, 2022, marking a significant milestone[8] - The company's distributable reserves as of March 31, 2023, were approximately HKD 118.1 million, compared to HKD 78.4 million in the previous year, indicating a significant increase of 50.1%[62] Risk Management and Compliance - The company has effective risk management and internal control systems, which have been reviewed and deemed sufficient[194] - The company has established a whistleblowing policy for employees and others to report concerns about any potential misconduct anonymously[175] Customer and Supplier Relationships - The largest customer accounted for 20.8% of the total revenue, while the top five customers represented 46.8% of the total revenue[178] - The largest supplier accounted for 38.4% of the total procurement, and the top five suppliers made up 56.5% of the total procurement[178] Future Plans and Strategy - The company remains confident in addressing challenges and adapting to rapid technological changes while focusing on sustainable growth and profitability[6] - The company plans to continue enhancing competitiveness, exploring new markets, and strengthening core business areas[6] Board Structure and Independence - The board consists of seven directors, including two executive directors, one non-executive director, and four independent non-executive directors[139] - The nomination committee regularly reviews the board's structure and composition to ensure diversity and alignment with the company's strategic goals[160] Legal and Regulatory Matters - As of March 31, 2023, the company had no pending legal cases that could significantly adversely affect its business or operations[169] - The company has not engaged in any related party transactions or continuous related party transactions during the year[179] Share Option Scheme - The new share option scheme allows for a maximum of 62.5 million shares to be granted, representing 10% of the total issued shares as of the date of shareholder approval[65] - The company has a total of 62,500,000 shares available for issuance under the new share option plan, representing 10% of the total issued shares as of the report date[186]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 MTT GROUP HOLDINGS LIMITED 數科集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2350） 截至二零二三年三月三十一日止年度之 年度業績公告 摘要 • 本集團於本年度的總收益約為752,500,000港元，較上一年度約631,500,000港元增加約 121,000,000港元或19.2%。 • 於本年度，本集團的溢利約為43,700,000港元，較上一年度約47,300,000港元減少約 3,600,000港元或7.6%。有關減少乃主要由於本年度銷售及分銷以及行政開支增加所致。 • 本年度的每股基本盈利為7.75港仙，而上一年度則為9.45港仙。 ...