Financial Performance - The company recorded revenue of approximately HKD 376.7 million for the six months ended September 30, 2024, an increase of approximately HKD 62.6 million or 19.9% compared to HKD 314.1 million in the same period last year[9]. - The total gross profit increased to approximately HKD 67.8 million, up by approximately HKD 0.8 million or 1.2% from HKD 67.0 million in the previous year, with a gross margin of approximately 18.0%, down from 21.3%[12][20]. - The company's net profit attributable to shareholders was approximately HKD 21.8 million, a decrease from HKD 29.4 million in the same period last year[12]. - Profit before tax decreased to HKD 26,983,000, down 24.5% from HKD 35,682,000 in the previous year[109]. - Net profit for the period was HKD 22,547,000, a decline of 23.4% compared to HKD 29,430,000 in the prior year[109]. - Basic and diluted earnings per share were HKD 3.63, down from HKD 4.91 in the same period last year[109]. - The group recorded a net profit attributable to shareholders of approximately HKD 21.8 million for the reporting period, down from HKD 29.4 million in the same period last year, representing a decrease of about 26%[30]. Cost and Expenses - Sales costs increased by approximately HKD 61.8 million or 25.0% compared to the previous year, primarily due to rising direct material and labor costs[19]. - General and administrative expenses rose to approximately HKD 40.2 million from HKD 33.8 million in the same period last year, marking an increase of about 19% due to higher operational costs in Malaysia and Suzhou[25]. - Financial expenses decreased significantly to approximately HKD 0.9 million from HKD 3.4 million year-on-year, a reduction of about 74% attributed to lower lease liabilities[26]. - The company incurred research and development expenses of HKD 9,449,000 for the six months ended September 30, 2024, compared to HKD 9,360,000 in 2023, indicating a stable investment in innovation[171]. Revenue Sources - Revenue from customers in the network and data storage industry increased significantly, while revenue from the office automation sector decreased, partially offsetting the overall revenue growth[9][13]. - Sales in Southeast Asia, China, Europe, and North America accounted for approximately 63.8%, 24.5%, 7.0%, and 3.5% of total revenue, respectively[13]. - Revenue from Southeast Asia increased significantly to HKD 240,167,000, up 53.7% from HKD 156,085,000 in 2023[157]. - Major customer A contributed HKD 255,567,000 to total revenue, representing an increase of 32.9% from HKD 192,277,000 in 2023[164]. Assets and Liabilities - Total current assets increased to approximately HKD 502.0 million as of September 30, 2024, compared to HKD 431.3 million as of March 31, 2024, reflecting a growth of about 16.4%[31]. - The group’s total liabilities increased to HKD 82.5 million as of September 30, 2024, compared to HKD 49.5 million as of March 31, 2024, resulting in a debt-to-equity ratio of 13.3%[32]. - Total assets as of September 30, 2024, amounted to HKD 842,591,000, an increase from HKD 778,276,000 as of March 31, 2024[111]. - Total liabilities rose to HKD 223,656,000, compared to HKD 175,478,000 as of March 31, 2024, primarily due to increased bank borrowings[113]. - The company’s bank borrowings as of September 30, 2024, amounted to HKD 83,537,000, with a book value of HKD 82,500,000[151]. Cash Flow - For the six months ended September 30, 2024, the net cash generated from operating activities was HKD 21,727,000, a decrease of 20.5% compared to HKD 27,257,000 in the same period of 2023[124]. - The company incurred a net cash outflow from investing activities of HKD 3,864,000, a significant improvement compared to a net outflow of HKD 10,319,000 in the prior year[124]. - The financing activities generated a net cash inflow of HKD 20,254,000, compared to HKD 3,528,000 in the same period last year[124]. Shareholder Information - The maximum number of shares that can be issued upon the exercise of options and awards under the revised share option plan is capped at 10% of the issued shares as of the approval date, totaling a maximum of 60,000,000 shares[58]. - The company may seek shareholder approval to update the plan authorization limit, ensuring that the total number of shares issued does not exceed 10% of the issued shares at the time of the update[59]. - Any grants of options or awards exceeding the plan authorization limit require independent shareholder approval, specifically for identified eligible participants[60]. - The vesting period for options granted under the revised plan must be no less than 12 months from the acceptance date, with certain exceptions for specific employee participants[68]. - Shares issued upon the exercise of options will rank equally with existing shares and will carry voting rights once registered in the name of the relevant holder[76]. Market Strategy - The company plans to continue monitoring the global economic environment and adjust its strategies accordingly to mitigate risks[9]. - The group plans to enhance production efficiency to control production costs and improve profit margins amid ongoing challenges in the business environment[48]. - The company plans to continue focusing on market expansion and new product development to drive future growth[109]. - The company aims to expand its customer base and maintain strong relationships with existing clients to navigate the challenging business landscape[48]. Other Information - The company did not recommend any interim dividend during the reporting period[95]. - There were no significant post-reporting events from the end of the reporting period to the date of this mid-report[96]. - The company did not engage in any acquisitions or disposals of subsidiaries or associated companies during the reporting period[98]. - The audit committee reviewed the interim consolidated financial information and confirmed compliance with applicable standards and regulations[97]. - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[101].

Financial Performance - For the six months ended September 30, 2024, KFM Kingdom Holdings Limited reported revenue of HKD 376,703,000, an increase of 21.1% compared to HKD 314,091,000 for the same period in 2023[5] - Gross profit for the same period was HKD 67,784,000, slightly up from HKD 66,986,000, resulting in a gross margin of 18%[5] - The company recorded a profit before tax of HKD 26,983,000, down 24.5% from HKD 35,682,000 in the previous year[5] - Net profit for the period was HKD 22,547,000, a decrease of 23.5% compared to HKD 29,430,000 in 2023[5] - Total comprehensive income for the period was HKD 25,557,000, down from HKD 27,262,000 in the same period last year[5] - The company reported a basic and diluted earnings per share of HKD 3.63, down from HKD 4.91 in the previous year[5] - The company recorded a net profit attributable to shareholders of approximately HKD 21.8 million, a decrease from HKD 29.4 million in the same period last year[44] - Profit attributable to owners of the company was approximately HKD 21.8 million, down from about HKD 29.4 million in the previous year[56] Revenue and Costs - Revenue for the six months ended September 30, 2024, was HKD 376,703,000, an increase of 19.9% compared to HKD 314,091,000 for the same period in 2023[18] - The cost of sold inventory for the six months ended September 30, 2024, was HKD 308,919,000, up from HKD 247,105,000 in 2023, reflecting a 24.9% increase[20] - Total sales costs increased by approximately HKD 61.8 million or 25.0% year-on-year, primarily due to rising direct material and labor costs[47] Assets and Liabilities - The company's total assets increased to HKD 842,591,000 as of September 30, 2024, compared to HKD 778,276,000 as of March 31, 2024[7] - Current assets rose to HKD 502,039,000, up from HKD 431,311,000 at the end of the previous fiscal year[7] - Accounts receivable as of September 30, 2024, stood at HKD 161,789,000, an increase from HKD 145,017,000 as of March 31, 2024[28] - The company reported a total inventory of HKD 107,562,000 as of September 30, 2024, compared to HKD 102,855,000 as of March 31, 2024[26] - Accounts payable as of September 30, 2024, amounted to HKD 112.3 million, compared to HKD 87.2 million as of March 31, 2024[34] - The company's total borrowings increased to HKD 82.5 million as of September 30, 2024, from HKD 49.5 million as of March 31, 2024, resulting in a debt-to-equity ratio of 13.3% compared to 8.2%[58] Taxation - The total tax expense for the six months ended September 30, 2024, was HKD 4,436,000, down from HKD 6,252,000 in 2023, indicating a 29.0% decrease[20] - The company has a tax rate of 25% for corporate income tax in China, consistent with the previous year[22] - The company recognized a deferred tax expense of HKD 632,000 for the six months ended September 30, 2024, down from HKD 1,828,000 in 2023[20] - Income tax expenses decreased to approximately HKD 4.4 million from about HKD 6.3 million in the previous year, primarily due to a decrease in taxable profits[55] Operational Highlights - KFM Kingdom Holdings Limited continues to focus on the manufacturing and sales of precision metal stamping products, with plans for market expansion and potential new product development[11] - The company plans to enhance production efficiency to control production costs and improve profit margins while seeking to expand its customer base[70] - The total number of employees increased to 1,057 as of September 30, 2024, compared to 877 employees a year earlier[72] - The company faced pressures from rising labor, material, and production costs due to changes in the product mix and increased assembly processes[42] Dividends and Financial Management - The company plans to pay a final dividend of HKD 0.8 cents per share for the year ending March 31, 2024, totaling HKD 4.8 million[38] - The board does not recommend the payment of any interim dividend during the reporting period[79] Compliance and Governance - The board confirmed that all directors complied with the standards set forth in the code of conduct during the reporting period[78] - The audit committee reviewed the interim condensed financial information and found it to comply with the applicable standards and regulations[80] - There were no significant acquisitions or disposals of subsidiaries or associated companies during the reporting period[81] - The company and its subsidiaries did not purchase, sell, or redeem any of the company's securities during the reporting period[82] - The interim results announcement is available on the company's website and the Hong Kong Stock Exchange website[83]

[Financial Summary](index=2&type=section&id=Financial%20Summary) [Revenue and Total Assets Overview](index=3&type=section&id=Revenue%20and%20Total%20Assets%20Overview) The Group's revenue slightly decreased in FY2024, while total assets showed an upward trend, reflecting an expansion in asset scale despite revenue pressure Revenue Trend (HK$ Thousand) | Year | Revenue (HK$ Thousand) | | :--- | :--- | | 2020 | 986,744 | | 2021 | 406,340 | | 2022 | 612,190 | | 2023 | 605,101 | | 2024 | 589,904 | Total Assets Trend (HK$ Thousand) | Year | Total Assets (HK$ Thousand) | | :--- | :--- | | 2020 | 825,309 | | 2021 | 920,249 | | 2022 | 778,276 | | 2023 | 728,732 | | 2024 | 778,276 | [Company Information](index=4&type=section&id=Company%20Information) [Board of Directors and Committees](index=4&type=section&id=Board%20of%20Directors%20and%20Committees) The company's Board of Directors comprises executive, non-executive, and independent non-executive directors, supported by audit, remuneration, and nomination committees to ensure robust corporate governance, with changes in the chairman and some committee members during the year - Mr. Zhang Haifeng, a Non-executive Director, resigned as Chairman and a member of the Remuneration Committee on March 1, 2024[5](index=5&type=chunk) - Mr. Sun Guohua, an Executive Director, was appointed Chairman of the Board and Chairman of the Nomination Committee on March 1, 2024[5](index=5&type=chunk) - Mr. Shen Zeqing, an Independent Non-executive Director, was appointed a member of the Remuneration Committee on March 1, 2024[5](index=5&type=chunk) [Contact and Listing Information](index=4&type=section&id=Contact%20and%20Listing%20Information) The company's headquarters and principal place of business are in Hong Kong and Suzhou, China, with its registered office in the Cayman Islands; its stock code is 3816, and Shinewing (HK) CPA Limited serves as its auditor - The company's headquarters and principal place of business in Hong Kong are located at Unit C, 31/F, TML Tower, 3 Hoi Shing Road, Tsuen Wan, New Territories, Hong Kong[5](index=5&type=chunk) - The company's stock code is **3816**, and its website is www.kingdom.com.hk[6](index=6&type=chunk) - The auditor is Shinewing (HK) CPA Limited[6](index=6&type=chunk) [Chairman's Statement](index=5&type=section&id=Chairman's%20Statement) [Acquisition of Suzhou Plant](index=5&type=section&id=Acquisition%20of%20Suzhou%20Plant) The Group completed the acquisition of the Suzhou plant during the year, aiming to enhance resource allocation flexibility and reduce future leasing costs - The Group acquired the company owning the Suzhou plant during the year to increase flexibility in resource allocation and reduce future leasing costs[9](index=9&type=chunk) [Financial Performance](index=6&type=section&id=Financial%20Performance) The Group's revenue decreased by 2.5% year-on-year to approximately HK$589.9 million, primarily due to reduced demand in the medical and testing equipment sector, partially offset by growth in networking, data storage, and office automation; gross profit margin improved by 1.1% to 18.2%, and net profit slightly increased to HK$23.1 million FY2024 Financial Performance | Metric | 2024 (HK$ Million) | 2023 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 589.9 | 605.1 | -2.5% | | Gross Profit Margin | 18.2% | 17.1% | +1.1% | | Net Profit | 23.1 | 22.7 | +1.8% | - Revenue decrease primarily due to reduced demand in the medical and testing equipment sector post-COVID-19, partially offset by increased revenue from the networking and data storage and office automation sectors[11](index=11&type=chunk) - Gross profit margin increase primarily attributable to changes in product mix and enhanced production efficiency to control manufacturing costs[11](index=11&type=chunk) [Outlook](index=6&type=section&id=Outlook) Facing global economic uncertainty, deglobalization, and geopolitical tensions, the Group has established a new production base in Malaysia to serve clients, and will continue to optimize operations, strictly control costs, strengthen its financial position, seek new business opportunities, and focus on environmental and social responsibilities - The economic environment faces increased uncertainty due to deglobalization, high interest rates, and global geopolitical tensions[12](index=12&type=chunk) - To address the trend of clients relocating their businesses to Southeast Asia, the Group's new production base in Malaysia commenced operations in November 2023[12](index=12&type=chunk) - The Group will continue to optimize operations, implement stringent cost control measures, strengthen its financial position, and seek more potential opportunities to expand its customer base and product portfolio[12](index=12&type=chunk) [Acknowledgements](index=6&type=section&id=Acknowledgements) The Chairman extends sincere gratitude to shareholders, investors, business partners, directors, and employees for their trust, support, and efforts - The Chairman expresses heartfelt gratitude to shareholders, investors, business partners, directors, and employees for their trust, support, and efforts[13](index=13&type=chunk) [Business Review](index=7&type=section&id=Business%20Review) [Macroeconomic and Business Environment](index=7&type=section&id=Macroeconomic%20and%20Business%20Environment) The global economy is affected by inflation, high interest rates, geopolitical tensions, and deglobalization, with China's economy slowing and material and labor costs rising; the Group acquired the Suzhou plant to reduce leasing costs and established a production base in Malaysia to adapt to supply chain restructuring - The global economy is affected by multiple uncertainties including inflation, high interest rates, Sino-US political tensions, the Russia-Ukraine conflict, and the Middle East crisis[16](index=16&type=chunk) - China's economy slowed due to COVID-19 and deglobalization, leading to rising material, labor, and production costs[16](index=16&type=chunk) - The Group completed the acquisition of the Suzhou plant, transforming it into a permanent production base to reduce property leasing costs and enhance resource allocation flexibility[16](index=16&type=chunk) - To align with clients' supply chain restructuring trends, the Group established an overseas production base in Malaysia, offering supply chain solutions outside China and developing new clients[19](index=19&type=chunk) [Financial Performance Analysis](index=7&type=section&id=Financial%20Performance%20Analysis) The Group's revenue decreased by 2.5% year-on-year, mainly due to reduced demand for medical and testing equipment, but gross profit increased by 3.9%, with gross profit margin rising to 18.2%; general and administrative expenses increased due to corporate actions and initial operating costs of the Malaysia base, while finance costs decreased due to reduced borrowings, resulting in a slight increase in net profit to HK$23.1 million [Revenue and Gross Profit](index=9&type=section&id=Revenue%20and%20Gross%20Profit) The Group's revenue was approximately HK$589.9 million, a 2.5% year-on-year decrease, primarily due to reduced demand in the medical and testing equipment sector, partially offset by increased revenue from networking, data storage, and office automation; gross profit increased by 3.9% to HK$107.3 million, with gross profit margin rising by 1.1% to 18.2%, mainly driven by changes in product mix and improved production efficiency Revenue and Gross Profit Overview (HK$ Thousand) | Metric | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 589,904 | 605,101 | (15,197) | -2.5% | | Gross Profit | 107,263 | 103,277 | 3,986 | +3.9% | | Gross Profit Margin | 18.2% | 17.1% | +1.1% | | - Revenue decrease primarily due to reduced demand in the medical and testing equipment sector post-COVID-19, partially offset by increased revenue from the networking and data storage and office automation sectors[17](index=17&type=chunk)[22](index=22&type=chunk) - Gross profit margin increase primarily due to changes in product mix and controlled production costs through enhanced production efficiency and reduced headcount[17](index=17&type=chunk)[26](index=26&type=chunk) Revenue by Geographical Region (2024) | Region | Percentage (%) | | :--- | :--- | | Southeast Asia | 50.1% | | China | 31.2% | | Europe | 12.4% | | North America | 4.1% | [Cost of Sales](index=8&type=section&id=Cost%20of%20Sales) The Group's cost of sales decreased by 3.8% year-on-year to HK$482.6 million, primarily due to reductions in raw material costs, processing fees, and direct labor costs; cost of sales as a percentage of total revenue decreased by 1.1% to 81.8% Cost of Sales Breakdown (HK$ Thousand) | Item | 2024 (HK$ Thousand) | 2024 (%) | 2023 (HK$ Thousand) | 2023 (%) | | :--- | :--- | :--- | :--- | :--- | | Direct Materials | 310,441 | 64.3 | 360,615 | 71.9 | | Direct Labor | 82,141 | 17.0 | 89,362 | 17.8 | | Processing Fees | 22,421 | 4.7 | 35,284 | 7.0 | | Inventory Changes | 26,133 | 5.4 | (20,995) | (4.2) | | Other Direct Expenses | 41,505 | 8.6 | 37,558 | 7.5 | | **Total** | **482,641** | **100.0** | **501,824** | **100.0** | - Cost of sales decreased by approximately **HK$19.2 million** or **3.8%**, primarily due to reductions in raw material costs, processing fees, and direct labor costs[23](index=23&type=chunk) - Cost of sales as a percentage of total revenue was approximately **81.8%**, a decrease of approximately **1.1%** from 82.9% in the prior year[24](index=24&type=chunk) [Other Net Income and Expenses](index=9&type=section&id=Other%20Net%20Income%20and%20Expenses) Other net income increased to HK$12.0 million, mainly due to gains from derecognition of right-of-use assets and related lease liabilities following an acquisition; distribution and selling expenses slightly increased to HK$6.7 million, while general and administrative expenses rose to HK$83.7 million, primarily impacted by legal and professional fees and initial operating costs of the Malaysia production base; finance costs decreased to HK$6.0 million due to lower average balances of bank borrowings and lease liabilities Other Net Income and Expenses Overview (HK$ Thousand) | Metric | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | Change (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Other Net Income | 12,031 | 8,621 | +3,410 | | Distribution and Selling Expenses | 6,668 | 6,270 | +398 | | General and Administrative Expenses | 83,741 | 75,524 | +8,217 | | Finance Costs | 6,015 | 8,527 | -2,512 | - Increase in other net income primarily due to gains from derecognition of right-of-use assets and related lease liabilities following the acquisition[27](index=27&type=chunk) - Increase in general and administrative expenses primarily due to legal and professional fees incurred from corporate actions during the year and initial operating costs of the Malaysia production base[29](index=29&type=chunk) - Decrease in finance costs primarily due to lower average balances of bank borrowings and lease liabilities compared to the prior year[30](index=30&type=chunk) [Income Tax and Profit Attributable to Owners of the Company](index=9&type=section&id=Income%20Tax%20and%20Profit%20Attributable%20to%20Owners%20of%20the%20Company) Income tax expense increased to HK$9.5 million; profit attributable to owners of the Company slightly increased to HK$23.2 million, mainly driven by higher gross profit and other net income Income Tax and Profit Attributable to Owners of the Company (HK$ Thousand) | Metric | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | | :--- | :--- | :--- | | Income Tax Expense | 9,496 | 5,069 | | Profit Attributable to Owners of the Company | 23,238 | 22,666 | - Increase in net profit primarily due to higher gross profit and other net income[32](index=32&type=chunk) [Liquidity, Financial and Capital Resources](index=10&type=section&id=Liquidity%2C%20Financial%20and%20Capital%20Resources) The Group's total current assets decreased, but shareholders' equity significantly increased; the gearing ratio rose to 8.2%, mainly due to increased bank borrowings, and capital expenditure grew substantially, primarily for the acquisition of property, plant, and equipment [Financial Resources and Liquidity](index=10&type=section&id=Financial%20Resources%20and%20Liquidity) The Group's total current assets decreased from HK$546.9 million in 2023 to HK$431.3 million in 2024, with its proportion of total assets falling from 75.0% to 55.4%; working capital is primarily funded by internal cash flows and bank borrowings Total Current Assets (HK$ Thousand) | Year | Total Current Assets (HK$ Thousand) | Percentage of Total Assets | | :--- | :--- | :--- | | March 31, 2024 | 431,311 | 55.4% | | March 31, 2023 | 546,865 | 75.0% | - The Group generally funds its operations primarily through internally generated cash flows and bank borrowings[36](index=36&type=chunk) [Capital Structure](index=10&type=section&id=Capital%20Structure) The Group's bank borrowings increased to HK$49.5 million, and shareholders' equity rose to HK$602.8 million; the gearing ratio increased from 4.4% to 8.2%, mainly due to higher bank borrowings Capital Structure Overview (HK$ Thousand) | Metric | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | | :--- | :--- | :--- | | Bank Borrowings | 49,500 | 22,686 | | Total Debt | 49,500 | 22,686 | | Shareholders' Equity | 602,798 | 513,118 | | Total Debt to Shareholders' Equity Ratio | 8.2% | 4.4% | - The Group's bank borrowings are denominated in RMB[37](index=37&type=chunk) [Capital Expenditure and Charges on Assets](index=10&type=section&id=Capital%20Expenditure%20and%20Charges%20on%20Assets) Capital expenditure on property, plant, and equipment significantly increased to HK$37.7 million during the year, primarily funded by cash flows from operating activities, finance leases, and bank borrowings; as of March 31, 2024, the Group had no bank borrowings secured by its assets - Acquisition of property, plant, and equipment amounted to approximately **HK$37.7 million** during the year, a significant increase from HK$8.9 million in the prior year[38](index=38&type=chunk) - Capital expenditure was funded through cash flows from operating activities, finance leases, and bank borrowings[39](index=39&type=chunk) - As of March 31, 2024, the Group had no bank borrowings secured by its assets[40](index=40&type=chunk) [Foreign Currency Risk and Contingent Liabilities](index=11&type=section&id=Foreign%20Currency%20Risk%20and%20Contingent%20Liabilities) The Group primarily operates in Hong Kong and China, facing foreign exchange risks from RMB and USD, and closely monitors exchange rate fluctuations; as of March 31, 2024, the Group had no significant contingent liabilities and no major future plans for investments and capital assets - The Group primarily operates in Hong Kong and China, with Hong Kong entities exposed to RMB foreign exchange risk and Chinese entities exposed to USD foreign exchange risk[42](index=42&type=chunk) - The Group closely monitors foreign currency exchange rate movements to manage its foreign exchange risk[43](index=43&type=chunk) - As of March 31, 2024, the Group had no significant contingent liabilities[45](index=45&type=chunk) - Save as disclosed, the Group currently has no other significant investment and capital asset plans[46](index=46&type=chunk) [Employees and Remuneration Policy](index=11&type=section&id=Employees%20and%20Remuneration%20Policy) As of March 31, 2024, the Group had a total of 946 full-time employees, a decrease from the previous year; remuneration packages are determined based on individual qualifications, contributions, performance, and years of service; the Group provides continuous training, maintains good labor relations, and participates in China's social insurance schemes - As of March 31, 2024, the Group had a total of **946 full-time employees** (2023: 974 employees)[48](index=48&type=chunk) - Remuneration packages are determined based on individual employees' qualifications, contributions to the Group, performance, and years of service[48](index=48&type=chunk) - The Group continuously provides training to employees to enhance their skills and product knowledge, maintaining good labor relations with no significant strikes or labor disputes during the year[48](index=48&type=chunk)[49](index=49&type=chunk) [Corporate Governance Report](index=12&type=section&id=Corporate%20Governance%20Report) [Corporate Governance Practices and the Board](index=12&type=section&id=Corporate%20Governance%20Practices%20and%20the%20Board) The Group is committed to high corporate governance standards, adhering to the Listing Rules' Corporate Governance Code except for the combined Chairman and CEO roles; the Board oversees all significant matters, ensures director independence and continuous training, maintains diverse membership, and demonstrated good attendance at meetings and general meetings during the year, complying with the Model Code for Securities Transactions [Board Composition and Independence](index=13&type=section&id=Board%20Composition%20and%20Independence) The Board comprises two executive directors and three independent non-executive directors, possessing diverse experience and expertise; Mr. Zhang Haifeng resigned as Chairman during the year, and Mr. Sun Guohua was appointed Chairman; the company ensures the number of independent non-executive directors meets requirements and has received confirmations of their independence - The Board comprises two executive directors and three independent non-executive directors[56](index=56&type=chunk) - Mr. Zhang Haifeng resigned as Non-executive Director and Chairman of the Board on March 1, 2024, and Mr. Sun Guohua was appointed Chairman of the Board[56](index=56&type=chunk)[57](index=57&type=chunk) - The Board complies with Listing Rules requirements, with at least one-third independent non-executive directors and at least one possessing appropriate professional accounting qualifications[59](index=59&type=chunk) [Board Diversity Policy](index=14&type=section&id=Board%20Diversity%20Policy) The company has adopted a Board Diversity Policy considering factors such as skills, experience, knowledge, expertise, culture, independence, age, and gender; the current Board maintains an appropriate gender balance and will continue to seek suitable female candidates - The company has adopted a Board Diversity Policy, considering factors such as skills, experience, knowledge, expertise, culture, independence, age, and gender[60](index=60&type=chunk) - The Board comprises members of both genders, with Ms. Zhao Yue as the female Independent Non-executive Director, and will continue to identify suitable female candidates[61](index=61&type=chunk) - As of March 31, 2024, the male-to-female employee ratio was approximately **2.7 to 1**, which the Board considers ideal[63](index=63&type=chunk) [Appointment, Re-election and Removal of Directors](index=14&type=section&id=Appointment%2C%20Re-election%20and%20Removal%20of%20Directors) Non-executive directors have no specific term of office, while executive directors have three-year service contracts that automatically renew; according to the company's articles of association, directors must retire by rotation at least once every three years and are eligible for re-election - Non-executive directors' terms commenced on October 13, 2016, with no specific tenure[64](index=64&type=chunk) - Executive directors' service contracts are for three years from September 22, 2012, automatically renewable for one year upon expiry[64](index=64&type=chunk) - In accordance with the company's articles of association, one-third of the directors must retire by rotation at each annual general meeting, and each director must retire at least once every three years[64](index=64&type=chunk) [Roles of Chairman and Chief Executive Officer](index=14&type=section&id=Roles%20of%20Chairman%20and%20Chief%20Executive%20Officer) Mr. Sun Guohua concurrently serves as CEO and Chairman of the Board, deviating from the Corporate Governance Code; the Board believes this arrangement facilitates consistent leadership and optimizes operational efficiency, without compromising the Board's independence and balance of power - Mr. Sun Guohua concurrently serves as the company's Chief Executive Officer and Chairman of the Board, deviating from Corporate Governance Code provision C.2.1[66](index=66&type=chunk) - The Board believes this arrangement facilitates consistent leadership to advance long-term strategies and further enhances monetization capabilities and operational efficiency[66](index=66&type=chunk) - The Board, comprising two executive directors and three independent non-executive directors, possesses strong independence, ensuring a balance of power and authority[68](index=68&type=chunk) [Continuous Training and Development for Directors](index=15&type=section&id=Continuous%20Training%20and%20Development%20for%20Directors) The company provides necessary induction and information to newly appointed directors and requires all directors to participate in continuous professional development to update their knowledge and skills; all directors participated in training during the year - Each newly appointed director receives necessary induction and information to ensure a proper understanding of the company's operations and business[69](index=69&type=chunk) - Directors are required to participate in continuous professional development to enhance and update their knowledge and skills[70](index=70&type=chunk) Directors' Continuous Professional Development Program Categories | Director Name | Continuous Professional Development Program Categories | | :--- | :--- | | Mr. Zhang Haifeng | A, B | | Mr. Sun Guohua | A, B | | Mr. Wong Chi Kwok | A, B | | Mr. Wan Kam To | A, B | | Ms. Zhao Yue | A, B | | Mr. Shen Zeqing | A, B | [Board Meetings and General Meeting Attendance](index=16&type=section&id=Board%20Meetings%20and%20General%20Meeting%20Attendance) During the year, the Board regularly held meetings to review company performance and strategy, convening four Board meetings and one general meeting; all directors maintained high attendance rates - During the year, the company convened **four Board meetings** and **one general meeting**[74](index=74&type=chunk) Board Meetings and General Meeting Attendance Record | Director Name | Board Meeting Attendance | General Meeting Attendance | | :--- | :--- | :--- | | Mr. Zhang Haifeng | 7/7 | 1/1 | | Mr. Sun Guohua | 7/7 | 1/1 | | Mr. Wong Chi Kwok | 7/7 | 1/1 | | Mr. Wan Kam To | 7/7 | 1/1 | | Ms. Zhao Yue | 7/7 | 1/1 | | Mr. Shen Zeqing | 7/7 | 1/1 | [Model Code for Securities Transactions by Directors](index=16&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted a Model Code for Securities Transactions by Directors equivalent to Appendix C3 of the Listing Rules and confirms full compliance by all directors during the year - The terms of the company's adopted Model Code for Securities Transactions by Directors are no less exacting than the standards set out in Appendix C3 of the Listing Rules[75](index=75&type=chunk) - The Board confirms that, for the current year and up to the date of this annual report, each director has fully complied with the required standards set out in the Model Code and its code of conduct[75](index=75&type=chunk) [Board Committees](index=16&type=section&id=Board%20Committees) The Board has established Audit, Nomination, and Remuneration Committees, each with independent non-executive director participation, to oversee specific areas; each committee has written terms of reference and holds regular meetings to fulfill its responsibilities [Audit Committee](index=17&type=section&id=Audit%20Committee) The Audit Committee comprises three independent non-executive directors, chaired by Mr. Wan Kam To; its primary responsibilities include recommending external auditors, reviewing financial statements, and monitoring internal controls and risk management; during the year, it reviewed the consolidated financial statements and interim condensed consolidated financial statements - The Audit Committee comprises three independent non-executive directors, with Mr. Wan Kam To as Chairman[78](index=78&type=chunk) - Its primary responsibilities include providing recommendations to the Board regarding the appointment and removal of external auditors, reviewing financial statements, advising on financial reporting, and monitoring internal control procedures and risk management[78](index=78&type=chunk) - The Audit Committee has reviewed the Group's consolidated financial statements for the year ended March 31, 2023, and the interim condensed consolidated financial statements for the six months ended September 30, 2023[81](index=81&type=chunk) [Nomination Committee](index=17&type=section&id=Nomination%20Committee) The Nomination Committee comprises three independent non-executive directors and one executive director, chaired by the Board Chairman; its responsibilities include reviewing Board structure, assessing independence, and recommending directors; it held one meeting during the year, reviewing the Board Diversity Policy and Nomination Policy - The Nomination Committee comprises three independent non-executive directors and one executive director, with the Chairman of the Board serving as its Chairman[83](index=83&type=chunk) - Its primary responsibilities include reviewing the Board's structure, size, and composition, assessing the independence of independent non-executive directors, and making recommendations to the Board regarding director appointments[82](index=82&type=chunk) - One meeting was held during the year to review the structure, size, and composition of the Board and its committees, the Board Diversity Policy and its measurable objectives, and to recommend the adoption of a Nomination Policy[85](index=85&type=chunk) [Remuneration Committee](index=18&type=section&id=Remuneration%20Committee) The Remuneration Committee comprises three independent non-executive directors, chaired by Ms. Zhao Yue; its responsibilities include making recommendations on the remuneration policy for directors and senior management; it held one meeting during the year, reviewing the remuneration policy and approving salaries and bonuses for executive directors and senior management - The Remuneration Committee comprises three independent non-executive directors, with Ms. Zhao Yue, an Independent Non-executive Director, as Chairman[87](index=87&type=chunk) - Its primary responsibility is to make recommendations on the overall remuneration policy and structure for all directors and senior management of the Group[86](index=86&type=chunk) - One meeting was held during the year to review the remuneration policy and approve the salaries and bonuses for executive directors and senior management[92](index=92&type=chunk) [Nomination Policy](index=19&type=section&id=Nomination%20Policy) The Board adopted a Nomination Policy during the year to outline selection criteria and nomination procedures, ensuring the Board possesses a balanced mix of skills, experience, and diverse perspectives; selection criteria include time commitment, integrity, industry experience, and diversity, while the nomination process involves recommendations from the Nomination Committee and a final decision by the Board at the general meeting - The Board adopted a Nomination Policy during the year, aiming to outline relevant selection criteria and nomination procedures to ensure the Board possesses a balanced mix of skills, experience, and diverse perspectives suitable for the Group's business[94](index=94&type=chunk) - Selection criteria include commitment of time to company affairs, reputation for integrity, relevant industry achievements and experience, efficiency in performing Board duties, and diversity in all aspects as set out in the Board Diversity Policy[95](index=95&type=chunk) - The nomination process involves recommendations from the Nomination Committee to the Board, with the Board having the final decision on candidates to be put forward for election at the general meeting[96](index=96&type=chunk)[97](index=97&type=chunk) [Corporate Governance Functions](index=20&type=section&id=Corporate%20Governance%20Functions) The Board is responsible for formulating and reviewing corporate governance policies, monitoring director and senior management training, ensuring compliance with laws and regulations, establishing codes of conduct, and reviewing adherence to the Corporate Governance Code - The Board is responsible for formulating and reviewing the Group's corporate governance policies and practices and making recommendations[100](index=100&type=chunk) - The Board monitors the training and continuous professional development of directors and senior management, and reviews the Group's policies and practices regarding compliance with relevant laws and regulatory requirements[100](index=100&type=chunk) - The Board formulates, reviews, and monitors the codes of conduct and compliance manuals applicable to the Group's directors and employees, and reviews the Group's compliance with the Corporate Governance Code and disclosure requirements in the Corporate Governance Report[100](index=100&type=chunk) [Financial Reporting and Audit](index=21&type=section&id=Financial%20Reporting%20and%20Audit) The Board is responsible for preparing true and fair financial statements and presenting a clear assessment to shareholders; external auditor Shinewing (HK) CPA Limited is responsible for the audit; total auditor's remuneration for the year was HK$1.674 million [Directors' Responsibilities for Financial Statements](index=21&type=section&id=Directors'%20Responsibilities%20for%20Financial%20Statements) Directors acknowledge their responsibility to prepare financial statements for each financial year that give a true and fair view of the company's affairs and results; the Board strives to present shareholders with a clear and unbiased assessment of the Group's performance - Directors acknowledge their responsibility to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the Company and the Group as at the end of the year and of the Group's results and cash flows for the financial year then ended[101](index=101&type=chunk) - The Board endeavors to present shareholders with a clear and unbiased assessment of the Group's performance in annual and interim reports, making timely and appropriate disclosures and announcements[101](index=101&type=chunk) [Auditor's Remuneration](index=21&type=section&id=Auditor's%20Remuneration) For the year ended March 31, 2024, the external auditor and its affiliates provided audit and non-audit services to the Group, totaling HK$1.674 million in remuneration Auditor's Remuneration (HK$ Thousand) | Service Type | Amount (HK$ Thousand) | | :--- | :--- | | Audit Services | 950 | | Non-annual Audit Services - Interim Review Services | 250 | | Non-annual Audit Services - Corporate Actions | 400 | | Non-annual Audit Services - Tax | 74 | | **Total** | **1,674** | [Risk Management and Internal Control](index=21&type=section&id=Risk%20Management%20and%20Internal%20Control) The Group has implemented internal control and risk management systems to achieve operational effectiveness, reliable financial reporting, and compliance; the Board is responsible for overseeing and reviewing their effectiveness, with the internal audit department conducting regular independent reviews; during the year, the Board deemed these systems continuously effective and adequate, and adopted an inside information policy and procedures - The Group has implemented internal control and risk management systems aimed at achieving operational effectiveness, reliable financial reporting, and compliance with applicable laws and regulations[102](index=102&type=chunk) - The Board is responsible for overseeing the Group's risk management and internal control systems and reviewing their effectiveness[103](index=103&type=chunk) - The Group's internal audit department conducts regular independent reviews of the Group's risk management and internal control systems from time to time[103](index=103&type=chunk) - For the year ended March 31, 2024, the Board considered these systems to be continuously effective and adequate[105](index=105&type=chunk) - The Group has adopted and implemented an inside information policy and procedures to enhance the truthfulness, accuracy, completeness, and timeliness of handling and public disclosure of inside information[105](index=105&type=chunk) [Shareholders' Rights and Communication](index=22&type=section&id=Shareholders'%20Rights%20and%20Communication) Shareholders have the right to requisition extraordinary general meetings, raise inquiries with the Board, and propose resolutions at general meetings; the company maintains effective communication with shareholders and potential investors through annual general meetings, website reports, and press releases [Shareholders' Right to Requisition an Extraordinary General Meeting](index=22&type=section&id=Shareholders'%20Right%20to%20Requisition%20an%20Extraordinary%20General%20Meeting) Shareholders holding not less than one-tenth of the paid-up capital of the company carrying the right to vote at general meetings may requisition the directors to convene an extraordinary general meeting, which must be held within two months of the requisition being deposited - Any one or more shareholders holding not less than one-tenth of the paid-up capital of the company carrying the right to vote at general meetings may requisition the directors to convene an extraordinary general meeting[106](index=106&type=chunk) - The extraordinary general meeting must be held within two months of the requisition being deposited[106](index=106&type=chunk) [Procedures for Shareholders to Put Enquiries to the Board](index=22&type=section&id=Procedures%20for%20Shareholders%20to%20Put%20Enquiries%20to%20the%20Board) Shareholders may submit inquiries and concerns to the Board in writing via the Company Secretary at any time, who will forward them to the Board and/or relevant committees for response - Shareholders may submit inquiries and concerns to the Board in writing via the company's Company Secretary at any time[107](index=107&type=chunk) - The Company Secretary will forward shareholders' inquiries and concerns to the Board and/or the relevant Board committee of the company (as applicable) for response[107](index=107&type=chunk) [Procedures for Shareholders to Propose Resolutions at General Meetings](index=22&type=section&id=Procedures%20for%20Shareholders%20to%20Propose%20Resolutions%20at%20General%20Meetings) Shareholders wishing to propose a resolution at a general meeting should submit it in writing with contact details to the company's principal place of business, adhering to varying notice period requirements - Shareholders should submit their proposed resolutions, along with detailed contact information, in writing to the company's principal place of business[108](index=108&type=chunk) - The notice period depends on the nature of the resolution: not less than **14 clear days** for an ordinary resolution and not less than **21 clear days** for a special resolution[113](index=113&type=chunk) [Communication with Shareholders](index=23&type=section&id=Communication%20with%20Shareholders) Management maintains effective communication with shareholders and potential investors through annual general meetings, reports posted on the company's and HKEX websites, and press releases; the policy's implementation was effective during the year - Management strives to maintain effective communication with the company's shareholders and potential investors[110](index=110&type=chunk) - The company meets with shareholders at annual general meetings, posts interim and annual reports on its website and the HKEX website, and issues press releases on its website[110](index=110&type=chunk) - For the year ended March 31, 2024, the Board reviewed the implementation and effectiveness of the aforementioned shareholder communication policy and deemed it effective[111](index=111&type=chunk) [Constitutional Documents](index=23&type=section&id=Constitutional%20Documents) There were no changes to the company's constitutional documents during the year - There were no changes to the company's constitutional documents during the year[112](index=112&type=chunk) [Environmental, Social and Governance Report](index=24&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) [About This Report](index=24&type=section&id=About%20This%20Report) This report aims to disclose the Group's progress and direction in sustainable development to stakeholders, covering the precision metal business at its Suzhou plant in China, and is prepared in accordance with Appendix C2 'Environmental, Social and Governance Reporting Guide' of the Listing Rules [Reporting Scope and Board Statement](index=24&type=section&id=Reporting%20Scope%20and%20Board%20Statement) This report covers the Group's precision metal business at its Suzhou plant in China, disclosing ESG performance for the financial year ended March 31, 2024; the Board is committed to integrating environmental factors into business, enhancing employee capabilities, caring for the community, and regularly reviewing ESG management strategies - This report covers the Group's plant in Suzhou, People's Republic of China ("China"), primarily engaged in the manufacturing of precision metal products[115](index=115&type=chunk) - This report discloses the Group's management approach and performance in corporate social responsibility, covering the financial year ended March 31, 2024[115](index=115&type=chunk) - The Board states that the Group's sustainable development strategy includes integrating environmental factors into business, enhancing employee capabilities, caring for the community, improving corporate social responsibility performance, and increasing transparency[116](index=116&type=chunk) [Reporting Principles and Materiality Assessment](index=25&type=section&id=Reporting%20Principles%20and%20Materiality%20Assessment) This report is prepared in accordance with Appendix C2 'Environmental, Social and Governance Reporting Guide' of the Listing Rules, adhering to the principles of materiality, quantification, balance, and consistency; management conducted a materiality assessment, identifying key ESG issues such as greenhouse gas emissions, resource utilization, waste management, occupational health and safety, labor relations, customer satisfaction, quality assurance, and data security - This report has been prepared in accordance with the 'Environmental, Social and Governance Reporting Guide' set out in Appendix C2 of the Listing Rules, using four reporting principles (i.e., materiality, quantitative, balance, and consistency) as the basis for preparation[118](index=118&type=chunk) - Management conducted a materiality assessment, identifying key ESG issues such as greenhouse gas emissions, efficient resource utilization, waste management, water resources and wastewater management, occupational health and safety, labor relations, labor standards and labor rights, customer satisfaction, quality assurance and product responsibility, data security, and intellectual property protection[121](index=121&type=chunk) [Environmental Protection](index=27&type=section&id=Environmental%20Protection) The Group strictly complies with China's environmental laws and regulations and is ISO 14001 certified; during the year, CO2 emissions increased by 4.7%, mainly due to new production lines; the company implements energy-saving measures, invests in exhaust gas filtration systems, and systematically manages waste; water consumption decreased by 11.6%, total packaging material usage decreased by 20.2%, and recyclable packaging material usage increased by 8% [Emissions Management](index=28&type=section&id=Emissions%20Management) Business units adhere to Chinese laws on exhaust gas, wastewater discharge, and noise pollution, and obtained ISO 14001 certification in 1998; in FY2024, CO2 emissions were approximately 5,167 tonnes, a 4.7% year-on-year increase, mainly due to a new production line; the company has invested in two exhaust gas filtration systems and systematically classifies, stores, and disposes of waste through authorized companies - Business units adhere to Chinese government laws on exhaust gas, wastewater discharge, and noise pollution, and first obtained ISO 14001 international environmental management system certification in 1998[123](index=123&type=chunk) CO2 Emissions (tonnes) | Year | Total Emissions (tonnes) | Change (%) | | :--- | :--- | :--- | | 2024 | 5,167 | +4.7% | | 2023 | 4,937 | | - Increase in CO2 emissions primarily due to the establishment of a new production line by the business unit during the year[123](index=123&type=chunk) - The Suzhou business unit invested in two exhaust gas emission filtration systems during the year and implemented systematic waste classification, storage, and disposal or recycling through authorized companies[126](index=126&type=chunk) Waste Disposal Volume (tonnes) | Waste Type | 2024 (tonnes) | 2023 (tonnes) | Change (tonnes) | | :--- | :--- | :--- | :--- | | Non-hazardous Waste | 1,479 | 1,777 | -298 | | Hazardous Waste | 24 | 37 | -13 | [Resource Utilization Efficiency](index=30&type=section&id=Resource%20Utilization%20Efficiency) Business units implement ISO 14001 energy and water saving measures; electricity consumption increased by 2.5%, and direct energy consumption increased by 34.8%, mainly due to a new production line and increased natural gas consumption; water consumption decreased by 11.6%, primarily due to improved water resource control; total packaging material usage decreased by 20.2%, and recyclable packaging material usage increased by 8% to 26% Energy Consumption (kWh) | Energy Type | 2024 (kWh) | 2023 (kWh) | Change (%) | | :--- | :--- | :--- | :--- | | Indirect Energy (Electricity) | 5.83 million | 5.69 million | +2.5% | | Direct Energy (Natural Gas, Gasoline, Diesel) | 2.21 million | 1.64 million | +34.8% | - Increase in electricity consumption primarily due to the establishment of a new production line by the business unit during the year[130](index=130&type=chunk) - Increase in direct energy consumption primarily due to increased natural gas consumption for production during the year[130](index=130&type=chunk) Water Resources and Packaging Material Usage | Metric | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Water Consumption (Thousand tonnes) | 26.0 | 29.4 | -11.6% | | Total Packaging Material Usage (tonnes) | 812 | 1,017 | -20.2% | | Recyclable Packaging Material Usage Rate | 26% | 18% | +8% | - Decrease in water consumption primarily due to better control over water resource usage during the year[132](index=132&type=chunk) - Decrease in total packaging material usage and increase in recyclable packaging material usage primarily due to encouraging clients to use recyclable packaging materials for new orders[134](index=134&type=chunk) [Environmental and Natural Resources Management](index=30&type=section&id=Environmental%20and%20Natural%20Resources%20Management) The Group implements environmental control measures to minimize the impact on natural resources during production, including replacing energy-inefficient equipment, training employees on resource conservation, double-sided printing, and waste sorting and recycling, ultimately achieving significant reductions, reuse, or recycling of metals,

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之內容概不負責，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之任何損失承擔任何責任。 KFM KINGDOM HOLDINGS LIMITED KFM 金德控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：3816） 截至2024年3月31日止年度全年業績公告 KFM金德控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公佈本公司及其附 屬公司（統稱為「本集團」）截至2024年3月31日止年度（「年內」）之綜合業績（根據香港聯合 交易所有限公司（「聯交所」）證券上市規則（「上市規則」）之相關規定編製），連同截至2023 年3月31日止年度之比較數字。 代表 KFM金德控股有限公司 主席 孫國華 香港，2024年6月26日 於本公告日期，執行董事為孫國華先生（主席及行政總裁）及黃志國先生；及獨立非執行 董事為尹錦滔先生、趙悅女士及沈哲清先生。 – 1 – 綜合損益及其他全面收益表 截至2024年3月31日止年度 | | | 2024年 | 2023年 | | --- ...

Financial Performance - The company reported revenue of approximately HKD 314.1 million for the six months ended September 30, 2023, a decrease of about HKD 29.0 million or 8.5% compared to HKD 343.1 million in the same period last year[8]. - Gross profit increased to approximately HKD 67.0 million, up about HKD 3.8 million or 6.0% from HKD 63.2 million year-on-year, with a gross margin of approximately 21.3%, an increase of 2.9% from 18.4%[10]. - The company recorded a net profit of approximately HKD 29.4 million, compared to HKD 33.0 million in the same period last year[10]. - Profit before tax for the period was HKD 35,682,000, down 10.4% from HKD 39,550,000 in 2022[77]. - Net profit for the period was HKD 29,430,000, a decrease of 10.4% compared to HKD 32,953,000 in the same period last year[77]. - Total comprehensive income for the period was HKD 27,262,000, significantly higher than HKD 14,223,000 in 2022[77]. - The company's profit attributable to owners for the six months ended September 30, 2023, was HKD 29,430,000, down from HKD 32,953,000 in 2022, representing a decline of 7.6%[130]. Revenue Breakdown - Revenue from Southeast Asia, China, Europe, and North America accounted for approximately 49.7%, 31.7%, 14.1%, and 2.8% of total revenue, respectively[11]. - Revenue from Southeast Asia increased to HKD 156.1 million, up 1.1% from HKD 154.4 million in 2022[115]. - Revenue from China decreased significantly to HKD 99.4 million, down 22.1% from HKD 127.7 million in 2022[115]. - Major customer A contributed HKD 192.3 million to total revenue, significantly up from HKD 89.4 million in 2022[119]. Expenses and Costs - Sales costs decreased by approximately HKD 32.7 million or 11.7%, with sales costs as a percentage of total revenue at approximately 78.7%, down from 81.6%[13]. - Distribution and selling expenses decreased to approximately HKD 3.1 million from HKD 3.4 million in the same period last year[17]. - General and administrative expenses remained stable at approximately HKD 33.7 million and HKD 33.8 million for the same period last year and the reporting period, respectively[18]. - Financial expenses decreased to approximately HKD 3.4 million during the reporting period from HKD 4.6 million in the same period last year, primarily due to a reduction in the average balance of bank borrowings and lease liabilities[19]. - Research and development expenses for the period were HKD 9.4 million, down 27.5% from HKD 13.0 million in 2022[124]. Assets and Liabilities - Total current assets as of September 30, 2023, amounted to approximately HKD 582.8 million, representing 76.3% of total assets, compared to HKD 546.9 million or 75.0% as of March 31, 2023[23]. - The company's bank borrowings increased to HKD 38.15 million as of September 30, 2023, from HKD 22.686 million as of March 31, 2023, resulting in a debt-to-equity ratio of 7.1% compared to 4.4%[24]. - Total liabilities as of September 30, 2023, included bank borrowings of HKD 38.8 million and lease liabilities of HKD 94.2 million[112]. - The company's inventory as of September 30, 2023, was HKD 114,907,000, a decrease of 11.0% from HKD 128,812,000 as of March 31, 2023[137]. - Accounts receivable increased to HKD 139,802,000 as of September 30, 2023, compared to HKD 110,847,000 as of March 31, 2023, reflecting a growth of 26.1%[138]. Cash Flow - Cash and cash equivalents at the end of the period increased to HKD 116,220,000 from HKD 96,803,000 at the beginning of the period[89]. - Operating cash flow for the six months was HKD 27,257,000, a recovery from a cash outflow of HKD 36,769,000 in the previous year[88]. Corporate Governance and Compliance - The audit committee has reviewed the interim financial information and confirmed compliance with applicable standards and regulations[66]. - The independent auditor did not find any issues that would lead to a belief that the interim financial information was not prepared in accordance with the relevant accounting standards[75]. - The company has complied with the corporate governance code during the reporting period[62]. Share Options and Capital Management - The maximum number of shares that can be issued under the revised share option plan is capped at 10% of the total shares issued as of the approval date, which amounts to a maximum of 60,000,000 shares[45]. - The company may seek shareholder approval to update the plan authorization limit, ensuring that the total shares issued under the revised plan does not exceed 10% of the total shares issued at the time of the update[48]. - Any share options granted to eligible participants must have a vesting period of no less than 12 months from the acceptance date of the share option offer[51]. - The exercise price of any share options must be determined by the board and cannot be lower than the higher of the official closing price on the grant date or the average closing price over the five trading days preceding the grant date[54]. - The revised share option plan is effective for a period of 10 years starting from August 23, 2022, with a remaining term of approximately 9 years as of the report date[56]. Future Plans and Strategic Initiatives - The company plans to establish an overseas production base in Malaysia to provide supply solutions outside of China, responding to clients' supply chain restructuring trends[36]. - The company is committed to seeking long-term and sustainable new business opportunities to enhance performance and create greater value for customers, shareholders, and investors[36].

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之內容概不負責，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之任何損失承擔任何責任。 KFM KINGDOM HOLDINGS LIMITED KFM 金 德 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：3816） 截至2023年9月30日止六個月 中期業績公告 KFM金德控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈本公司及其附 屬公司（統稱為「本集團」）截至2023年9月30日止六個月（「報告期間」）之中期業績（根據香 港聯合交易所有限公司證券上市規則（「上市規則」）之相關規定編製），連同2022年同期 之比較數字。 代表 KFM金德控股有限公司 主席 張海峰 香港，2023年11月20日 ...

Financial Performance - For the fiscal year ending March 31, 2023, the company's revenue decreased by approximately 1.2% to about HKD 605.1 million from HKD 612.2 million in the previous year[8]. - The gross profit margin improved to approximately 17.1%, up from 16.3% in the previous year, primarily due to changes in product mix and better cost control[10]. - The company recorded a net profit of approximately HKD 22.7 million, a significant turnaround from a net loss of HKD 48.0 million in the previous year[10]. - General and administrative expenses increased to approximately HKD 75.5 million, up from HKD 65.9 million, mainly due to higher R&D costs[16]. - The group's revenue for the year was approximately HKD 605.1 million, a decrease of about HKD 7.1 million or 1.2% compared to HKD 612.2 million in the previous year[20]. - Sales cost for the year was approximately HKD 501.8 million, a decrease of about HKD 10.4 million or 2.0% compared to HKD 512.3 million in the previous year, with the sales cost as a percentage of total revenue at approximately 82.9%, down from 83.7%[21][22]. - Gross profit for the year was approximately HKD 103.3 million, an increase of about HKD 3.4 million or 3.4% compared to HKD 99.9 million in the previous year, resulting in a gross margin of approximately 17.1%, up from 16.3%[23]. - Other income for the year was approximately HKD 8.6 million, compared to a loss of approximately HKD 4.0 million in the previous year, primarily due to a net exchange gain of about HKD 7.8 million from RMB depreciation[25]. - Financial expenses for the year were approximately HKD 8.5 million, an increase from HKD 5.5 million in the previous year, attributed to higher average balances of bank loans and lease liabilities[28]. - The company's attributable profit for the year was approximately HKD 22.7 million, compared to HKD 13.3 million in the previous year, reflecting improved financial performance[30]. Business Strategy and Operations - The company plans to invest in a new production base in Malaysia to better serve clients relocating their operations to Southeast Asia[11]. - The overall business environment remains uncertain due to geopolitical tensions, high inflation, and rising interest rates, which are expected to continue impacting the global economy[17]. - The company aims to optimize operations and implement strict cost control measures to strengthen its financial position[11]. - Revenue from clients in the network and data storage sector increased due to accelerated digitalization and increased internet activity post-pandemic[16]. - The company anticipates ongoing challenges in the manufacturing sector in China due to de-globalization and rising production costs[11]. - The company is committed to exploring long-term and sustainable new business opportunities to create greater value for customers and shareholders[12]. Corporate Governance - The board of directors consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors, maintaining compliance with listing rules[54]. - The company has implemented a board diversity policy, ensuring at least one female member on the board, which has been achieved as of the report date[57]. - The board is committed to high standards of corporate governance, having adhered to the corporate governance code as per the listing rules for the year ending March 31, 2023[51]. - The roles of the chairman and CEO are separated, with distinct responsibilities outlined and approved by the board[61]. - The board held four meetings and one annual general meeting during the year, with all directors attending all meetings[68]. - The audit committee reviewed the consolidated financial statements for the year ended March 31, 2022, and the interim financial statements for the six months ended September 30, 2022[74]. - The remuneration committee held two meetings to review the remuneration policies and approved the salaries and bonuses for executive directors and senior management[83]. - The company adopted a standard code for securities trading by directors, confirming full compliance by all directors during the year[69]. - The nomination committee reviewed the board's structure, size, and composition, and assessed the independence of independent non-executive directors[79]. - The audit committee consists of three independent non-executive directors, with the chairman possessing appropriate professional qualifications and experience in accounting[71]. - The company has established a remuneration committee to recommend overall remuneration policies for all directors and senior management[80]. - The board has adopted a practice of holding at least four regular meetings annually, approximately once per quarter[66]. - The company ensures that all directors receive meeting agendas and documents at least three days prior to regular board meetings[66]. - The board reviewed significant matters, including the annual consolidated financial statements and dividend recommendations during board meetings[66]. - The board has adopted a nomination policy to ensure a balanced skill set, experience, and diverse perspectives within the board[86]. - The selection criteria for nominees include commitment of time, integrity, industry achievements, efficiency in board duties, and diversity[90]. - The external auditor's fees for the year ending March 31, 2023, totaled HKD 1,194,000, including HKD 850,000 for audit services and HKD 270,000 for interim review services[94]. - The board is responsible for overseeing the risk management and internal control systems, which are deemed effective and sufficient as of March 31, 2023[95]. - The company has implemented a policy for handling and disclosing inside information to ensure accuracy and timeliness[96]. - Shareholders holding at least 10% of the voting shares can request a special general meeting within two months of submission[98]. - Shareholders can submit inquiries to the board through the company secretary at any time[99]. Environmental, Social, and Governance (ESG) Initiatives - The company has established a sustainable development strategy that includes integrating environmental factors into operations and enhancing corporate social responsibility performance[108]. - The report covers the group's operations in Suzhou, China, focusing on precision metal manufacturing, with a comparison of ESG performance data from the sold Shenzhen and Shanghai units as of December 2021[107]. - The board has reviewed the effectiveness of the shareholder communication policy and deemed it effective as of March 31, 2023[103]. - The company has set up a review process to ensure the accuracy and reliability of the information contained in the ESG report[108]. - The ESG report is prepared according to the guidelines set out in the listing rules, focusing on key performance indicators that are quantifiable and comparable[110]. - The company aims to balance environmental, market, and social advantages while addressing global sustainability trends[108]. - The importance assessment identified key ESG issues such as greenhouse gas emissions, energy efficiency, and employee health and safety[113]. - Total carbon dioxide emissions for the fiscal year ending March 31, 2023, were approximately 4,937 tons, a reduction of about 4,886 tons or 49.7% compared to the previous year[115]. - Indirect greenhouse gas emissions (Scope 2) accounted for 93% of total emissions in the fiscal year ending March 31, 2023, compared to 95% in the previous year[117]. - The total amount of harmless waste disposed of was approximately 1,777 tons for the fiscal year ending March 31, 2023, down from 2,283 tons in the previous year[119]. - The use of recyclable packaging materials increased to approximately 18% of total sales products for the fiscal year ending March 31, 2023, up from 6% in the previous year[126]. - Indirect energy consumption decreased by approximately 5.73 million kWh or 50.2% to about 5.69 million kWh for the fiscal year ending March 31, 2023[122]. - Direct energy consumption decreased by approximately 0.6 million kWh or 27.3% to about 1.6 million kWh for the fiscal year ending March 31, 2023[122]. - Total water resource consumption decreased by approximately 15.3 thousand tons or 34.2% to about 29.4 thousand tons for the fiscal year ending March 31, 2023[124]. - The company has installed numerous solar panels on factory rooftops to reduce electricity consumption and greenhouse gas emissions[128]. - The company aims to continuously reduce greenhouse gas emissions and improve the efficiency of electricity and water resource usage in the future[119]. - The company has implemented various measures to save energy and reduce greenhouse gas emissions, including the introduction of solar power and smart energy-saving switches[119]. Employee and Labor Relations - As of March 31, 2023, the total number of full-time employees in the group was 974, a decrease from 1,053 in 2022[46]. - The gender ratio among employees is approximately 2.1:1, with 659 male employees and 315 female employees as of March 31, 2023, compared to 750 male and 303 female employees in 2022[57]. - The company provides ongoing training to employees to enhance their skills and product knowledge[46]. - The company has established a labor union to protect employee rights and interests, facilitating discussions on improving employee welfare[133]. - The average training hours per employee increased to 58% for operational staff in 2023, up from 47% in 2022, indicating a focus on employee development[138]. - The average training hours for management staff increased to 16% in 2023 from 12% in 2022, reflecting an emphasis on leadership development[138]. - The proportion of employees aged 35 and below was 67% in 2023, a decrease from 72.3% in 2022, suggesting an aging workforce trend[134]. - Employee turnover rate decreased to 19.0% in 2023 from 23.4% in 2022[156]. - The total number of trained employees decreased to 13,792 in 2023 from 19,561 in 2022[156]. - The number of workdays lost due to occupational injuries decreased to 233 days in 2023 from 278 days in 2022[156]. - The percentage of trained employees in senior and middle management increased to 8.4% in 2023 from 6.2% in 2022[156]. - The number of male employees decreased from 750 in 2022 to 659 in 2023, a decline of approximately 12%[154]. - The company has implemented strict supplier management policies, requiring suppliers to pass rigorous audits to be included in the qualified supplier list[142]. - The company has maintained ISO 9001 certification since 1995, ensuring adherence to international quality management standards[143]. - All returned products in 2023 were related to quality defects, with no significant health and safety issues reported, demonstrating a focus on product responsibility[145]. Community Engagement and Social Responsibility - The company has engaged in community investment initiatives, including hiring disabled residents and supporting local educational programs[152]. - The company aims to strengthen partnerships with charitable organizations to promote sustainable development in the community[151]. - The company has focused on community investment, ensuring business activities consider community interests[167]. - The company is actively involved in protecting consumer data and privacy, with policies and monitoring methods described[167]. - The company has a strategic focus on mergers and acquisitions, with recommendations provided to the board[171]. - The company has engaged in community participation to understand local needs and ensure business activities align with community benefits[167]. Financial Policies and Risks - The company reported no final dividend for the year, consistent with the previous year, and no interim dividend was paid[190]. - As of March 31, 2023, the company's distributable reserves amounted to approximately HKD 257.6 million, consisting of retained earnings of about HKD 231.5 million and share premium of approximately HKD 26.1 million[198]. - The company did not make any donations during the year ending March 31, 2023, compared to HKD 175,000 in 2022[200]. - The company is committed to providing high-quality products and actively managing customer relationships to expand its customer base and enhance loyalty[187]. - The company faces various financial risks, including foreign exchange risk, interest rate risk, credit risk, and liquidity risk[183]. - The company has adopted a dividend policy that considers various factors, including financial performance and cash flow needs[192]. - The company emphasizes corporate social responsibility as a key element of its sustainable development strategy, engaging in community and charitable activities[182]. - The company operates under strict compliance with relevant environmental regulations in its mainland China operations[185]. - The company has established close and long-term relationships with its suppliers to ensure the delivery of quality raw materials[188].

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之內容概不負責，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之任何損失承擔任何責任。 KFM KINGDOM HOLDINGS LIMITED KFM 金 德 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：3816） 截至2023年3月31日止年度全年業績公告 KFM金德控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公佈本公司及其附 屬公司（統稱為「本集團」）截至2023年3月31日止年度（「年內」）之綜合業績（根據香港聯合 交易所有限公司（「聯交所」）證券上市規則（「上市規則」）之相關規定編製），連同截至2022 年3月31日止年度之比較數字。 代表 KFM金德控股有限公司 主席 張海峰 香港，2023年6月26日 於本公告日期，執行董事為孫國華先生及黃志國先生；非執行董事為張海峰先生（主席）； ...

Financial Performance - The company recorded revenue of approximately HKD 343.1 million for the six months ended September 30, 2022, an increase of approximately HKD 79.6 million or 30.2% compared to HKD 263.5 million in the same period last year[10]. - Gross profit increased to approximately HKD 63.2 million, up about HKD 18.1 million or 40.1% from approximately HKD 45.1 million in the previous year, with an overall gross margin rising from 17.1% to 18.4%[13]. - The net profit for the period was approximately HKD 33.0 million, a turnaround from a net loss of HKD 65.7 million in the previous year, primarily due to increased demand from clients in the internet and data storage sectors[13]. - Revenue from continuing operations for the six months ended September 30, 2022, was HKD 343,073,000, an increase of 30.2% compared to HKD 263,453,000 for the same period in 2021[84]. - Gross profit for the same period was HKD 63,237,000, representing a 40.3% increase from HKD 45,069,000 in 2021[84]. - Profit before tax increased significantly to HKD 39,550,000, up 282.5% from HKD 10,339,000 in the previous year[84]. - The net profit attributable to owners of the company was HKD 32,953,000, compared to a loss of HKD 65,718,000 in the same period last year[87]. - Basic and diluted earnings per share from continuing and discontinued operations were HKD 5.49, a recovery from a loss of HKD 10.96 in the previous year[87]. Revenue Breakdown - Revenue by region showed that Southeast Asia accounted for approximately 45.0%, China 37.2%, Europe 11.6%, and North America 4.6% of total revenue[14]. - Revenue breakdown by region for the six months ended September 30, 2022: Southeast Asia HKD 154,412,000, China HKD 127,701,000, Europe HKD 39,721,000, North America HKD 15,837,000, and others HKD 5,402,000[135]. Costs and Expenses - Sales costs increased by approximately HKD 61.4 million or 28.1% to HKD 279.8 million, mainly due to the rise in revenue[18]. - General and administrative expenses increased from approximately HKD 30.7 million in the same period last year to about HKD 33.7 million, primarily due to higher employee and R&D costs, aligning with revenue growth[24]. - Financial expenses rose to approximately HKD 4.6 million during the reporting period, compared to about HKD 1.7 million in the previous year, mainly due to an increase in average bank borrowings and lease liabilities[25]. - Income tax expenses increased to approximately HKD 6.6 million from about HKD 2.2 million in the same period last year, primarily due to an increase in taxable profits[26]. - The cost of goods sold for the six months ended September 30, 2022, was 279,836,000 HKD, compared to 218,384,000 HKD in 2021, reflecting an increase of about 28%[149]. Cash Flow and Assets - Current assets totaled approximately HKD 596.9 million as of September 30, 2022, compared to HKD 567.2 million as of March 31, 2022, representing 76.1% and 73.0% of total assets, respectively[31]. - The company reported a cash and cash equivalents balance of HKD 57,910,000, down from HKD 82,841,000 as of March 31, 2022[90]. - For the six months ended September 30, 2022, the company reported a net cash outflow from operating activities of HKD (36,769) thousand, compared to a net cash inflow of HKD 5,990 thousand in the same period of 2021[102]. - The company experienced a significant decrease in cash and cash equivalents, with a net decrease of HKD (22,255) thousand, compared to a net decrease of HKD (113,659) thousand in the prior year[104]. - As of September 30, 2022, the company's cash and cash equivalents stood at HKD 57,910 thousand, down from HKD 128,573 thousand a year earlier[104]. - Total assets as of September 30, 2022, amounted to HKD 784,835,000, a slight increase from HKD 776,494,000 as of March 31, 2022[90]. - Total liabilities decreased to HKD 265,949,000 from HKD 271,831,000 as of March 31, 2022[93]. Shareholder Information - The total number of shares that can be issued under the new share option scheme is 60,000,000 shares, accounting for 10% of the company's issued share capital[57]. - The major shareholder, Massive Force Limited, holds 449,999,012 shares, representing 75% of the company's equity[63]. - The company did not recommend any interim dividend during the reporting period[67]. - No share options were granted, exercised, cancelled, lapsed, or unexercised during the reporting period[57]. Strategic Focus and Future Plans - The company plans to diversify and restructure its supply chain strategy to mitigate political risks arising from US-China trade disputes and aims to establish new production bases outside of China, particularly in Southeast Asia[47]. - The company is focused on developing new customers in response to increased demand from the data and internet sectors, driven by the digitalization of business processes since the pandemic[50]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[85]. - The company plans to continue its focus on precision metal stamping products, aiming for market expansion and potential new product development[107]. Compliance and Governance - The audit committee reviewed the interim financial information and confirmed compliance with the relevant standards and regulations[69]. - The company confirmed compliance with the corporate governance code during the reporting period[65]. - The company did not conduct any purchases, sales, or redemptions of its own securities during the reporting period[72]. - There were no acquisitions or disposals of subsidiaries or associated companies during the reporting period[70]. - The company has not reported any significant impacts from the application of revised Hong Kong Financial Reporting Standards during the period[115]. Employee Information - As of September 30, 2022, the total number of employees was 1,024, a decrease from 1,555 employees a year earlier, with ongoing training provided to enhance skills and product knowledge[51].

Financial Performance - For the fiscal year ending March 31, 2022, the company's revenue increased by approximately 50.7% to about HKD 612.2 million, up from approximately HKD 406.3 million in the previous year[16]. - The overall gross profit rose by about 20.9% to approximately HKD 99.9 million, compared to approximately HKD 82.6 million in the prior year, despite a decline in gross margin from 20.3% to 16.3% due to rising production costs and changes in product mix[23]. - The company recorded a net loss of approximately HKD 48.0 million for the fiscal year, compared to a net profit of approximately HKD 18.4 million in the previous year, primarily due to the sale of a loss-making subsidiary[16]. - Total revenue from continuing operations for the year was approximately HKD 612.2 million, an increase of approximately HKD 205.9 million or 50.7% compared to HKD 406.3 million in the previous year[26]. - The group recorded a net profit of approximately HKD 13.3 million from continuing operations, compared to HKD 9.1 million in the same period last year, while a loss of approximately HKD 61.4 million was recorded from the discontinued metal lathe processing business[24]. Cost Management - General and administrative expenses increased by approximately 17.0% to about HKD 65.9 million, up from approximately HKD 56.3 million in the previous year, aligning with the increase in revenue[23]. - The cost of sales increased by approximately HKD 188.6 million or 58.3%, primarily due to increased revenue and rising direct costs, with total sales costs accounting for approximately 83.7% of total revenue[27][28]. - Distribution and selling expenses increased to approximately HKD 7.0 million from HKD 5.7 million in the previous year, consistent with revenue growth[31]. - The gross profit margin decreased to approximately 16.3%, down from 20.3% in the previous year, mainly due to changes in product mix[29]. Operational Strategy - The company plans to continue optimizing operations and implementing strict cost control measures to strengthen its financial position, including lower leverage ratios and improved asset returns[17]. - The company aims to explore more potential opportunities to expand its customer base and product offerings in response to ongoing challenges in the market[17]. - The company anticipates ongoing challenges from high production costs in the Chinese manufacturing sector and the continued migration of some customers' businesses to Southeast Asia[17]. - The company recognizes the impact of global economic uncertainties, including geopolitical tensions and the ongoing effects of the COVID-19 pandemic, on its business outlook[16]. Corporate Governance - The board is committed to maintaining high standards of corporate governance to enhance shareholder value and accountability[51]. - The roles of the chairman and CEO are separated, with distinct responsibilities outlined and approved by the board[58]. - The company has established a framework for corporate governance, including the formation of various committees to oversee specific areas[66]. - The audit committee, consisting of three independent non-executive directors, reviewed the consolidated financial statements for the year ended March 31, 2021[69]. - The company has implemented an internal control system aimed at achieving operational efficiency, reliable financial reporting, and compliance with applicable laws and regulations[92]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report covers the group's performance in environmental, social, and governance aspects, focusing on sustainable development strategies[101]. - The report includes key performance indicators related to ESG, adhering to the "comply or explain" principle for transparency[104]. - The company is committed to balancing environmental, market, and social advantages in its sustainable development strategy[103]. - The company has maintained compliance with relevant environmental laws and regulations, ensuring effective control of waste emissions[107]. - The company has been certified under the ISO 14001 international environmental management system since 1998, reflecting its commitment to environmental monitoring[107]. Employee Management - As of March 31, 2022, the total number of full-time employees was 1,053, down from 1,356 in 2021[46]. - The employee distribution by category as of March 31, 2022, was 80% senior management, 13% engineering staff, 6% middle management, and 1% operational staff[122]. - The company maintained a zero work-related fatality record for the years ended March 31, 2022, 2021, and 2020[127]. - Average training hours per employee for management, engineering staff, and operational staff were 12%, 47%, and 41% respectively for the year ended March 31, 2022[129]. - Employee turnover rate rose to 23.4% in 2022 from 14.6% in 2021, indicating a significant increase in employee attrition[140]. Community Engagement - The company made cash donations of HKD 174,726 to charitable organizations during the fiscal year ending March 31, 2022, and actively participated in local community activities[136]. - The company has provided internship opportunities for Chinese university students in engineering and production departments to gain work experience[137]. - The company has established a partnership with medical institutions to provide free health check-ups for employees at its Suzhou and Shenzhen facilities[137]. - The company is committed to sustainable development and is actively seeking new opportunities to enhance its community contributions and partnerships with charitable organizations[138]. Financial Position - The group’s total current assets amounted to approximately HKD 567.2 million as of March 31, 2022, down from HKD 683.6 million as of March 31, 2021[36]. - The debt-to-equity ratio improved to 7.2% from 29.7% in the previous year, reflecting a reduction in total liabilities[37]. - As of March 31, 2022, the company has distributable reserves of approximately HKD 254.5 million, consisting of retained earnings of about HKD 228.4 million and share premium of approximately HKD 26.1 million[179]. - The company has no significant contingent liabilities as of March 31, 2022[45]. - The company has no bank borrowings secured against its assets as of March 31, 2022[42].