Financial Performance - Revenue for the fiscal year ending March 31, 2024, was HKD 89,004,000, an increase of 5% from HKD 84,833,000 in the previous year[154]. - Loss before tax improved to HKD (7,504,000) from HKD (123,327,000) year-over-year, indicating a significant reduction in losses[154]. - Total assets decreased to HKD 84,692,000 from HKD 93,635,000, reflecting a decline of approximately 9%[154]. - Total liabilities were reduced to HKD (66,954,000) from HKD (118,635,000), showing a decrease of about 44%[154]. - The company reported a total comprehensive loss of HKD (8,006,000) compared to HKD (70,734,000) in the previous year, marking a substantial improvement[154]. Corporate Governance - The board has reviewed the company's corporate governance policies and practices, ensuring compliance with legal and regulatory requirements[28]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules[33]. - The company has only two independent non-executive directors, which is below the minimum requirement of three as per listing rules[196]. - The company currently has no chairman fulfilling the responsibilities outlined in the corporate governance code, but the board believes it can ensure balanced power distribution through its operations[197]. - The company has not yet fulfilled the composition requirements for its audit, remuneration, and nomination committees due to the resignation of an independent non-executive director[196]. Risk Management - The group faces foreign currency risks primarily from transactions denominated in Renminbi and US dollars, which may adversely affect net asset value and earnings due to exchange rate fluctuations[37]. - The company has no foreign exchange hedging policy currently in place to mitigate currency risks but will monitor these risks closely[37]. - The economic recovery post-pandemic has not been as optimistic as expected, significantly impacting the cash flow and repayment capabilities of small and medium-sized enterprise clients[62]. - Inflationary pressures increased operational costs for both the company and its clients, affecting profitability and disposable income[157]. Business Strategy - The company maintained stable growth despite external uncertainties and intense market competition, focusing on diversifying revenue sources and enhancing synergies across multiple platforms[61]. - The company emphasizes the potential of the leasing industry in contributing sustainable income and supporting economic development[61]. - The company successfully expanded its leasing business to multiple locations in China, enhancing its market presence and diversifying business risks[182]. - The introduction of value-added services such as credit assessment, investigation, and debt collection has generated additional revenue streams, contributing to overall growth[182]. - The company plans to further expand its leasing business and recover overdue receivables to mitigate business risks[183]. Environmental, Social, and Governance (ESG) Initiatives - The group is committed to enhancing its management of "green operations" and addressing climate change in line with China's clearer emission reduction targets[40]. - The company continues to focus on enhancing its ESG initiatives, with senior management overseeing ESG efforts[69]. - The company aims to strengthen climate change management and address potential risks associated with rising temperatures and regulatory compliance[80]. - The company has implemented effective resource utilization measures, including encouraging employees to use reusable items and reducing plastic waste[78]. - The group has established an ESG governance framework, with the board overseeing ESG initiatives and an ESG working group in place[124]. Related Party Transactions - The company reported a related party balance of approximately HKD 32.8 million as of March 31, 2024, compared to HKD 43.2 million in 2023[11]. - The company entered into a supplementary agreement with Shanghai Nanlang to extend the loan facility's maturity date to July 1, 2024, with an annual interest rate of 5.0%[11]. - The trademark licensing agreements and financing lease guarantee agreements were established under favorable terms for the company, with all applicable percentage ratios below 0.10% or 5% and total consideration below HKD 3 million[12]. - The company has established a priority purchase right for any equity interests in restricted businesses acquired by certain covenant parties[17]. Shareholder Relations - The company is committed to creating long-term stable returns for shareholders and providing quality products and services to customers[68]. - The management expressed gratitude to shareholders and stakeholders for their unwavering support during a challenging year[158]. - The board confirmed the adequacy of public float as per Listing Rule 8.08[112]. Audit and Compliance - The audit committee has carefully reviewed the basis for the qualified audit opinion on the consolidated financial statements for the year ended March 31, 2024[67]. - The auditor for the past three years was Hong Kong Lixin Dehao CPA, with a change to Dahua Mashiyun CPA effective April 8, 2022[113].

```markdown [Company Information and Financial Performance Summary](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF%E4%B8%8E%E8%B4%A2%E5%8A%A1%E4%B8%9A%E7%BB%A9%E6%A6%82%E8%A6%81) [Preliminary Announcement of Audited Annual Results](index=1&type=section&id=%E7%BB%8F%E5%AE%A1%E6%A0%B8%E5%B9%B4%E5%BA%A6%E4%B8%9A%E7%BB%A9%E5%88%9D%E6%AD%A5%E5%85%AC%E5%91%8A) The company announced its audited FY2024 results with 2023 comparisons, following share trading resumption on July 13, 2023 - The company announced its audited consolidated financial results for the year ended **March 31, 2024**, with comparative figures for **2023**[2](index=2&type=chunk) - The company's shares were suspended from trading on **September 27, 2022**, and resumed trading on **July 13, 2023**[6](index=6&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E8%A1%A8) For FY2024, revenue grew **4.9%** to **HK$89,004 thousand**, and loss narrowed **93.9%** to **HK$7,579 thousand**, driven by impairment reversal and reduced finance costs Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the year ended March 31, 2024) | Metric | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 89,004 | 84,833 | +4.9% | | Cost of Services | (44,998) | (43,040) | +4.5% | | Staff Costs | (28,488) | (26,727) | +6.6% | | Reversal (Provision) of Impairment Loss and Expected Credit Loss | 314 | (87,799) | N/A | | Finance Costs | (5,237) | (33,625) | -84.4% | | Loss Before Tax | (7,504) | (123,327) | -93.9% | | Loss for the Year | (7,579) | (123,316) | -93.9% | | Loss Per Share (HK cents) | (2) | (30) | -93.3% | [Consolidated Statement of Financial Position](index=3&type=section&id=%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of March 31, 2024, total assets slightly decreased, but net assets turned positive, with total equity improving from negative **HK$25,000 thousand** to **HK$17,738 thousand**, mainly due to improved reserves Key Data from Consolidated Statement of Financial Position (As of March 31, 2024) | Metric | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 69,992 | 69,023 | +1.4% | | Current Assets | 14,700 | 24,612 | -40.3% | | Current Liabilities | 62,629 | 63,871 | -2.0% | | Net Current Liabilities | (47,929) | (39,259) | +22.1% | | Total Assets Less Current Liabilities | 22,063 | 29,764 | -25.9% | | Non-current Liabilities | 4,325 | 54,764 | -92.1% | | Net Assets (Liabilities) | 17,738 | (25,000) | N/A | | Total Equity (Capital Deficit) | 17,738 | (25,000) | N/A | [Notes to the Consolidated Financial Statements](index=4&type=section&id=%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) [General Information](index=4&type=section&id=%E4%B8%80%E8%88%AC%E8%B5%84%E6%96%99) The company is a Cayman Islands-registered investment holding company providing leasing, due diligence, credit investigation, and debt collection services in China, Hong Kong, and Singapore, with Gold Fame Group Holdings Limited as its parent - The Company is an investment holding company primarily providing leasing services in China, and due diligence, credit investigation, and debt collection services in China, Hong Kong, and Singapore[6](index=6&type=chunk) - The Company's shares were suspended from trading on **September 27, 2022**, and resumed trading on **July 13, 2023**[6](index=6&type=chunk) - The Company's functional currency is **RMB**, and the consolidated financial statements are presented in **HK$**[6](index=6&type=chunk) [Basis of Preparation of Consolidated Financial Statements](index=4&type=section&id=%E7%BC%96%E5%88%B6%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E5%9F%BA%E5%87%86) Consolidated financial statements are prepared under HKFRS, measured at historical cost, with some financial instruments at fair value, categorized into three input levels - The consolidated financial statements are prepared in accordance with **Hong Kong Financial Reporting Standards** issued by the Hong Kong Institute of Certified Public Accountants[7](index=7&type=chunk) - The consolidated financial statements are primarily prepared on a **historical cost basis**, with certain financial instruments measured at **fair value**[8](index=8&type=chunk) - Inputs for fair value measurements are categorized into **Level 1** (quoted prices in active markets), **Level 2** (observable inputs), and **Level 3** (unobservable inputs)[9](index=9&type=chunk)[11](index=11&type=chunk) [Application of New and Revised Hong Kong Financial Reporting Standards and Other Accounting Policy Changes](index=5&type=section&id=%E5%BA%94%E7%94%A8%E6%96%B0%E8%AE%A2%E5%8F%8A%E7%BB%8F%E4%BF%AE%E8%AE%A2%E9%A6%99%E6%B8%AF%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A%E5%87%86%E5%88%99%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%98%E5%8A%A8) New and revised HKFRS, including HKFRS 17 and HKAS 1 amendments, were first applied this year, with no material impact on the Group's financial position or performance - **HKFRS 17** (Insurance Contracts) and amendments to **HKAS 1** and Practice Statement **2** (Disclosure of Accounting Policies) were first applied this year[10](index=10&type=chunk)[12](index=12&type=chunk) - The application of new and revised standards had **no material impact** on the Group's financial position and performance, but affected accounting policy disclosures[10](index=10&type=chunk)[14](index=14&type=chunk) - Revised standards issued but not yet effective are **not expected** to have a significant impact on the consolidated financial statements in the foreseeable future[15](index=15&type=chunk) [Revenue and Segment Information](index=7&type=section&id=%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) The Group's main businesses are leasing and debt collection/credit investigation services; FY2024 total revenue was **HK$89,004 thousand**, with significant growth in debt collection services and a slight decrease in leasing revenue - The Group's reportable segments include **leasing services** (providing direct leasing, sale and leaseback, and operating lease services in China) and **debt collection and credit investigation services** (provided in Hong Kong, China, and Singapore)[16](index=16&type=chunk) Segment Revenue and Results (For the year ended March 31, 2024) | Segment | 2024 Revenue (HK$ thousand) | 2023 Revenue (HK$ thousand) | Year-on-year Change (%) | 2024 Segment Results (HK$ thousand) | 2023 Segment Results (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Leasing Services | 43,922 | 48,017 | -8.5% | 4,874 | (100,379) | | Debt Collection and Credit Investigation Services | 45,082 | 36,816 | +22.4% | 1,560 | (14,365) | | **Total** | **89,004** | **84,833** | **+4.9%** | **6,434** | **(114,744)** | Revenue Analysis by Major Services (For the year ended March 31, 2024) | Revenue Source | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Revenue from Debt Collection Services | 28,896 | 17,642 | | Revenue from Credit Investigation Services | 16,186 | 19,174 | | Revenue from Car Sales | 15,880 | 19,573 | | Rental Income | 27,816 | 27,872 | | Interest Income from Sale and Leaseback Arrangements | 226 | 572 | [Other Income](index=10&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income for FY2024 was **HK$327 thousand**, a **49.3%** year-on-year decrease, mainly due to reduced government subsidies Other Income (For the year ended March 31, 2024) | Category | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Bank Interest Income | 28 | 34 | -17.6% | | Government Subsidies | 129 | 405 | -68.1% | | Others | 170 | 206 | -17.5% | | **Total** | **327** | **645** | **-49.3%** | - Government subsidies primarily came from Singapore's wage subsidy scheme and progressive wage credit scheme, with **2023** also including Hong Kong SAR Government's Employment Support Scheme[20](index=20&type=chunk) [Finance Costs](index=10&type=section&id=%E8%B4%A2%E5%8A%A1%E6%88%90%E6%9C%AC) FY2024 finance costs significantly decreased by **84.4%** to **HK$5,237 thousand**, primarily due to subsidiary disposals and capitalization of Gold Fame loans, reducing borrowings Finance Costs (For the year ended March 31, 2024) | Category | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank borrowings of An Hua Li Da Group | 97 | 115 | -15.6% | | Interest on bank borrowings of disposed group | – | 28,409 | -100% | | Interest on amounts due to related companies | 1,767 | 2,299 | -23.1% | | Interest on amounts due to shareholders | 1,186 | 953 | +24.4% | | Interest on lease liabilities | 133 | 215 | -38.1% | | Interest on amounts due to non-controlling principal shareholder of An Hua Li Da Group | 7 | – | N/A | | Estimated interest on loan notes | 1,587 | 1,187 | +33.7% | | Estimated interest on convertible bonds | 460 | 447 | +2.9% | | **Total** | **5,237** | **33,625** | **-84.4%** | - The significant reduction in finance costs was primarily attributable to the disposal of certain subsidiaries in **FY2023** and the capitalization of certain loans advanced by Gold Fame to the Company during the reporting period[55](index=55&type=chunk) [Income Tax Expense (Credit)](index=10&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E%E5%BC%80%E6%94%AF%EF%BC%88%E6%8A%B5%E5%85%8D%EF%BC%89) FY2024 income tax expense was **HK$75 thousand**, compared to a **HK$11 thousand** credit in FY2023, mainly comprising PRC enterprise income tax Income Tax Expense (Credit) (For the year ended March 31, 2024) | Category | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Current tax - PRC enterprise income tax | 20 | – | | Under-provision (over-provision) in prior years - PRC enterprise income tax | 55 | (11) | | **Income Tax Expense (Credit)** | **75** | **(11)** | - Hong Kong profits tax adopts a **two-tiered tax rate system**, with the first **HK$2 million** of assessable profits for qualifying corporations taxed at **8.25%**, and the remainder at **16.5%**[20](index=20&type=chunk) - PRC subsidiaries are subject to enterprise income tax at a rate of **25%**, while small low-profit enterprises (taxable profits below **RMB1,000,000**) are taxed at **20%**[21](index=21&type=chunk) [Loss for the Year](index=11&type=section&id=%E5%B9%B4%E5%86%85%E4%BA%8F%E6%8D%9F) FY2024 loss for the year significantly narrowed to **HK$7,579 thousand** from **HK$123,316 thousand** in FY2023, driven by reduced impairment provisions for financial assets and goodwill, and lower finance costs - Loss for the year significantly decreased by **93.9%**, mainly due to a reduction of approximately **HK$78.1 million** in expected credit loss provision for financial assets, a reduction of approximately **HK$9.6 million** in impairment provision for goodwill, and a decrease of approximately **HK$28.4 million** in finance costs[56](index=56&type=chunk) Items for Loss for the Year Calculation (For the year ended March 31, 2024) | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Total Staff Costs | 28,488 | 26,727 | | Depreciation of Property, Plant and Equipment | 11,874 | 12,521 | | Auditor's Remuneration | 1,288 | 1,635 | | Legal and Professional Fees | 5,021 | 4,852 | | Cost of Car Sales (including cost of services) | 24,047 | 23,123 | | Loss on Disposal of Property, Plant and Equipment | 8,167 | 3,419 | | Short-term Lease Expenses | 1,603 | 161 | [Dividends](index=11&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend any final dividend payment for the year ended March 31, 2024 - For the year ended **March 31, 2024**, **no dividends** were paid, declared, or proposed to ordinary shareholders of the Company[23](index=23&type=chunk)[57](index=57&type=chunk) [Loss Per Share](index=11&type=section&id=%E6%AF%8F%E8%82%A1%E4%BA%8F%E6%8D%9F) Basic and diluted loss per share for FY2024 was **HK 2 cents**, a significant improvement from **HK 30 cents** in FY2023 Loss Per Share (For the year ended March 31, 2024) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Loss for the year attributable to owners of the Company (HK$ thousand) | (9,615) | (124,609) | | Weighted average number of ordinary shares (thousand shares) | 451,928 | 412,509 | | **Basic and diluted loss per share (HK cents)** | **(2)** | **(30)** | - The calculation of loss per share did not assume the conversion of unexercised convertible bonds or the exercise of share options, as they would result in a reduction in loss per share or the exercise price being higher than the average market price of the shares[24](index=24&type=chunk) [Lease Receivables and Receivables Arising from Sale and Leaseback Arrangements](index=12&type=section&id=%E7%A7%9F%E8%B3%83%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E5%94%AE%E5%BE%8C%E5%9B%9E%E7%A7%9F%E5%AE%89%E6%8E%92%E7%94%A2%E7%94%9F%E7%9A%84%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of March 31, 2024, lease receivables and sale and leaseback receivables had **zero** carrying value, down from **HK$4,545 thousand** in 2023, due to lifetime expected credit loss impairment Lease Receivables and Receivables Arising from Sale and Leaseback Arrangements (As of March 31, 2024) | Metric | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Lease Receivables | – | – | | Receivables from Sale and Leaseback Arrangements | – | 4,545 | | **Total** | **–** | **4,545** | - As of **March 31, 2024**, the carrying amount of lease receivables and receivables arising from sale and leaseback arrangements of **HK$479,552 thousand** (2023: **HK$501,350 thousand**) was determined to be impaired based on **lifetime expected credit losses**[29](index=29&type=chunk) - Lease receivables are primarily secured by leased assets, customer deposits, and repurchase arrangements, with effective annual interest rates ranging from **8% to 15%**[27](index=27&type=chunk) [Trade Receivables](index=13&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of March 31, 2024, total trade receivables increased to **HK$6,546 thousand** from 2023, with **HK$551 thousand** overdue by over **90 days** Aging Analysis of Trade Receivables (As of March 31, 2024) | Aging | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 3,572 | 3,093 | | 31 to 60 days | 395 | 620 | | 61 to 90 days | 2,028 | 306 | | Over 90 days | 551 | 746 | | **Total** | **6,546** | **4,765** | - The credit period for trade receivables from debt collection and credit investigation services is **0 to 60 days**, while leasing services have **no credit period**[31](index=31&type=chunk)[32](index=32&type=chunk) - As of **March 31, 2024**, amounts overdue for **90 days or more** and not considered in default totaled **HK$551 thousand**[32](index=32&type=chunk) [Bank Borrowings](index=14&type=section&id=%E9%8A%80%E8%A1%8C%E5%80%9F%E6%AC%BE) As of March 31, 2024, total unsecured bank borrowings were **HK$2,050 thousand**, with **HK$1,285 thousand** due within one year Repayment Period Analysis of Bank Borrowings (As of March 31, 2024) | Repayment Period | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Within one year | 1,285 | 1,242 | | Over one year but within two years | 765 | 1,284 | | Over two years but within five years | – | 763 | | **Total** | **2,050** | **3,289** | - As of **March 31, 2024**, all of the Group's bank borrowings were **unsecured**[34](index=34&type=chunk) [Trade Payables](index=14&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of March 31, 2024, total trade payables increased to **HK$369 thousand** from 2023, with an average credit period of **90 days** Aging Analysis of Trade Payables (As of March 31, 2024) | Aging | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 107 | 63 | | 31 to 60 days | 24 | 5 | | 61 to 90 days | 108 | 22 | | Over 90 days | 130 | 40 | | **Total** | **369** | **130** | - The average credit period for purchases of services is **90 days**[36](index=36&type=chunk) [Summary of Independent Auditor's Report](index=15&type=section&id=%E7%8B%AC%E7%AB%8B%E6%A0%B8%E6%95%B0%E5%B8%88%E6%8A%A5%E5%91%8A%E6%91%98%E8%A6%81) [Qualified Opinion](index=15&type=section&id=%E4%BF%9D%E7%95%99%E6%84%8F%E8%A7%81) The independent auditor issued a **qualified opinion** on the Group's FY2024 consolidated financial statements, but believes they fairly reflect the Group's financial position, performance, and cash flows, except for potential impacts from the basis of qualification - The auditor issued a **qualified opinion** on the consolidated financial statements[38](index=38&type=chunk) - Except for the possible effects of the matters described in the Basis for Qualified Opinion, the auditor believes that the financial statements present **fairly** the Group's financial position, performance, and cash flows in accordance with **Hong Kong Financial Reporting Standards**[38](index=38&type=chunk) [Basis for Qualified Opinion](index=15&type=section&id=%E4%BF%9D%E7%95%99%E6%84%8F%E8%A7%81%E4%B9%8B%E5%9F%BA%E5%87%86) The **qualified opinion** stems from the auditor's inability to verify adjustments for the FY2023 disposal of Rongzhong Capital, potentially affecting comparability of current and prior year figures - The auditor was unable to determine whether adjustments were necessary for the results and cash flows of Rongzhong Capital, the carrying amounts of assets and liabilities at the disposal date, and the gain on disposal in **FY2023**[41](index=41&type=chunk) - The gain on disposal of approximately **HK$715,120 thousand** was treated as arising from an equity transaction and recognized in the consolidated statement of changes in equity in **FY2023**[39](index=39&type=chunk) - These matters may affect the comparability of current year figures with corresponding figures, leading to a **modification of the opinion** on the current year's consolidated financial statements[41](index=41&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E5%8F%8A%E5%88%86%E6%9E%90) [Business Overview](index=17&type=section&id=%E4%B8%9A%E5%8A%A1%E6%A6%82%E8%A7%88) The Group primarily provides leasing services in China and value-added services like due diligence, credit investigation, and debt collection in China, Hong Kong, and Singapore, aiming to reduce business risks through expansion and diversification - The Group is primarily engaged in **leasing services** in China and provides **due diligence, credit investigation, and debt collection services** in Hong Kong, China, and Singapore[43](index=43&type=chunk) - The Group reforms its leasing business by expanding operating regions and providing **value-added services** to reduce business risk exposure[45](index=45&type=chunk) [Leasing Services](index=17&type=section&id=%E7%A7%9F%E8%B3%83%E6%9C%8D%E5%8B%99) The Group provides car leasing services in various Chinese cities and plans to establish more subsidiaries to expand its leasing business as appropriate - The Group provides **car leasing services** in cities such as Huzhou, Ningbo, Shaoxing, Jiaxing, Taizhou, Hangzhou, Wenzhou, and Jinhua in China[44](index=44&type=chunk) - The Group intends to establish more subsidiaries in China as appropriate to promote and further expand its **profitable and stable leasing business**[44](index=44&type=chunk) [Credit Investigation and Debt Collection Services](index=17&type=section&id=%E4%BF%A1%E7%94%A8%E8%AA%BF%E6%9F%A5%E5%92%8C%E6%94%B6%E5%82%B5%E6%9C%8D%E5%8B%99) The Group expands due diligence, credit investigation, and debt collection services through acquisitions and new regional businesses to support leasing and mitigate risks, focusing on commercial receivables overdue **3 to 12 months** - Since **2021**, the Group has expanded its **due diligence, credit investigation, and debt collection services** through acquisitions and establishment of businesses in new regions as part of its strategy to reform the leasing business[45](index=45&type=chunk) - **Due diligence and credit investigation services** utilize **big data analytics** to generate credit reports and recommendations[45](index=45&type=chunk) - **Debt collection services** provide **non-litigation collection services** for commercial accounts receivable overdue for **3 to 12 months**[45](index=45&type=chunk) [Financial Overview](index=18&type=section&id=%E8%B4%A2%E5%8A%A1%E6%A6%82%E8%A7%88) This section details changes in the Group's financial indicators during the reporting period, including revenue growth, cost control, and reasons for the significant narrowing of losses [Revenue](index=18&type=section&id=%E6%94%B6%E7%9B%8A) FY2024 revenue grew **4.9%** to **HK$89.0 million**, driven by strategic deployment, new operating locations, and contributions from value-added services like credit assessment and debt collection - For the year ended **March 31, 2024**, the Group recorded revenue of approximately **HK$89.0 million**, an increase of approximately **4.9%** compared to the same period last year[48](index=48&type=chunk) - The increase in revenue was mainly due to the effective implementation of strategic deployment, expansion into new operating locations, and **value-added services** contributing approximately **HK$45.1 million** in revenue[48](index=48&type=chunk) - **Value-added services** further strengthen the Group's leasing business by building an **ecosystem**[48](index=48&type=chunk) [Staff Costs](index=18&type=section&id=%E4%BA%BA%E4%BA%8B%E6%88%90%E6%9C%AC) Staff costs for the reporting period were approximately **HK$28.5 million**, a **6.6%** year-on-year increase, mainly due to an increase in the Group's headcount - During the reporting period, the Group's staff costs were approximately **HK$28.5 million**, an increase of approximately **6.6%** compared to the same period last year[49](index=49&type=chunk) - The increase was mainly due to an **increase in the Group's headcount**[49](index=49&type=chunk) [Other Operating Expenses](index=18&type=section&id=%E5%85%B6%E4%BB%96%E7%B6%93%E7%87%9F%E9%96%8B%E6%94%AF) Other operating expenses for the reporting period were approximately **HK$19.0 million**, a **5.9%** year-on-year decrease, mainly due to the Group's implementation of cost-saving measures - During the reporting period, the Group's other operating expenses were approximately **HK$19.0 million**, a decrease of approximately **5.9%** compared to the same period last year[50](index=50&type=chunk) - The decrease was mainly due to the Group's implementation of **cost-saving measures**[50](index=50&type=chunk) [Reversal of Impairment Loss on Financial Assets](index=18&type=section&id=%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2%E6%B8%9B%E5%80%BC%E8%99%A7%E6%90%8D%E6%92%A5%E5%9B%9E) During the reporting period, a reversal of impairment loss on financial assets of approximately **HK$0.3 million** was recorded, compared to a provision of approximately **HK$77.8 million** in the prior year, indicating improved asset quality - During the reporting period, a **reversal of impairment loss on financial assets** of approximately **HK$0.3 million** was recorded, compared to an impairment loss provision of approximately **HK$77.8 million** in the same period last year[51](index=51&type=chunk) - Slower-than-expected economic recovery, deteriorating real estate market, declining collateral values, and worsening operating conditions for SMEs continued to adversely affect the Group's **finance lease business**[53](index=53&type=chunk)[54](index=54&type=chunk) [Other Income](index=19&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income for the reporting period was **HK$0.3 million**, a **49.3%** year-on-year decrease, mainly due to reduced government subsidies - During the reporting period, the Group's other income was approximately **HK$0.3 million**, a decrease of approximately **49.3%** compared to the same period last year[53](index=53&type=chunk) - The decrease was mainly due to **government subsidies** recognized as financial assistance[53](index=53&type=chunk) [Finance Costs](index=20&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs for the reporting period were **HK$5.2 million**, a significant **84.4%** year-on-year decrease, primarily due to subsidiary disposals and capitalization of Gold Fame loans, reducing borrowings - During the reporting period, the Group's finance costs were approximately **HK$5.2 million**, a decrease of approximately **84.4%** compared to approximately **HK$33.6 million** in the same period last year[55](index=55&type=chunk) - Mainly due to the disposal of certain subsidiaries of the Group in the previous year and the capitalization of certain loans advanced by Gold Fame to the Company during the reporting period, resulting in a **reduction in the Group's borrowings**[55](index=55&type=chunk) [Loss for the Year](index=20&type=section&id=%E5%B9%B4%E5%85%A7%E8%99%A7%E6%90%8D) FY2024 loss was **HK$7.6 million**, a significant **93.9%** year-on-year reduction, primarily due to decreased impairment provisions for financial assets and goodwill, and lower finance costs - The Company's loss for the year ended **March 31, 2024**, was approximately **HK$7.6 million**, a decrease of approximately **93.9%** compared to the same period last year[56](index=56&type=chunk) - Mainly due to a reduction of approximately **HK$78.1 million** in expected credit loss provision for financial assets, a reduction of approximately **HK$9.6 million** in impairment provision for goodwill, and a decrease of approximately **HK$28.4 million** in finance costs[56](index=56&type=chunk) [Dividends](index=20&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend any final dividend payment for the year ended March 31, 2024 - The Board does not recommend any final dividend payment for the year ended March 31, 2024[57](index=57&type=chunk) [Liquidity, Financial Resources and Capital Resources](index=20&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) As of March 31, 2024, cash and cash equivalents decreased to **HK$7.0 million**, working capital deficit expanded to **HK$47.9 million**, but total equity turned positive to **HK$17.7 million** - As of **March 31, 2024**, the Group's bank balances and cash and short-term bank deposits totaled approximately **HK$7.0 million**, a decrease of approximately **HK$7.6 million** compared to **2023**[58](index=58&type=chunk) - Working capital deficit (current assets less current liabilities) was approximately **HK$47.9 million** (2023: approximately **HK$39.3 million**)[58](index=58&type=chunk) - Total equity was approximately **HK$17.7 million** (2023: capital deficit of approximately **HK$25.0 million**), with a gearing ratio of approximately **211%**[58](index=58&type=chunk) [Pledge of the Group's Assets](index=21&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of March 31, 2024, the Group had **no** bank borrowings secured by receivables from sale and leaseback arrangements or bank deposits - As of **March 31, 2024**, the Group's bank borrowings with a carrying value of **zero** were granted by banks in China and secured by the Group's receivables arising from sale and leaseback arrangements with a total carrying value of **zero**[59](index=59&type=chunk) - As of **March 31, 2024**, the Group's bank borrowings with a carrying value of **zero** were secured by bank deposits of **zero**[59](index=59&type=chunk) [Employees and Remuneration Policy](index=21&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of March 31, 2024, the Group had **127** employees in Hong Kong, China, and Singapore; remuneration is based on performance, experience, and industry practice, with benefits including medical insurance, retirement schemes, training allowances, and share option schemes - As of **March 31, 2024**, the Group had **127** employees in Hong Kong, China, and Singapore[60](index=60&type=chunk) - Remuneration is determined based on employee performance, experience, and current industry practice, and includes benefits such as **medical insurance, retirement schemes, and training allowances**[60](index=60&type=chunk) - The Group has established a **share option scheme** to reward eligible employees and participates in the **Hong Kong Mandatory Provident Fund Scheme, PRC social security schemes, and Singapore Central Provident Fund Scheme**[60](index=60&type=chunk) [Risk Factors and Management](index=22&type=section&id=%E9%A2%A8%E9%9A%AA%E5%9B%A0%E7%B4%A0%E5%8F%8A%E7%AE%A1%E7%90%86) The Group faces credit, funding, interest rate, foreign exchange, and liquidity risks; management closely monitors and mitigates these risks [Credit Risk of SMEs in China](index=22&type=section&id=%E4%B8%AD%E5%9C%8B%E7%9A%84%E4%B8%AD%E5%B0%8F%E4%BC%81%E6%A5%AD%E7%9A%84%E4%BF%A1%E8%B2%B8%E9%A2%A8%E9%9A%AA) The Group's business relies on SME financing and faces increased credit risk due to China's economic downturn, deteriorating real estate market, and declining collateral values; management mitigates risk through additional collateral and close monitoring - The sustainability of the Group's business depends on its ability to effectively manage **credit risk**, as SMEs face **higher default risks** due to economic downturns[62](index=62&type=chunk) - The continuous deterioration of market conditions in the real estate sectors in China and Hong Kong has a **significant adverse impact** on the value of properties held by SME customers[54](index=54&type=chunk) - Management prevents and reduces credit risk exposure by requiring **additional collateral** and closely monitoring customer credit risk and collateral values[62](index=62&type=chunk) [Risks Related to Funding Sources and Interest Rates](index=22&type=section&id=%E6%9C%89%E9%97%9C%E8%B3%87%E9%87%91%E4%BE%86%E6%BA%90%E5%8F%8A%E5%88%A9%E7%8E%87%E7%9A%84%E9%A2%A8%E9%9A%AA) The Group's business heavily relies on interest-bearing loans; interest rate fluctuations directly impact finance costs and profitability; management monitors rates and adjusts customer charges to mitigate risk - The Group's business operations largely depend on **interest-bearing loans**, and **interest rate fluctuations** directly impact finance costs and profitability[63](index=63&type=chunk) - Management will continue to closely monitor interest rate changes and charge customers the same amount to **mitigate interest rate risk** to the maximum extent[63](index=63&type=chunk) [Foreign Exchange Risk](index=22&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group faces foreign exchange risk from RMB and USD transactions; currently, there is **no** hedging policy, but management will closely monitor and consider appropriate measures - The Group's foreign currency risk primarily arises from transactions denominated in **RMB and USD**[64](index=64&type=chunk) - The Group currently has **no** foreign exchange hedging policy, but management will continue to closely monitor relevant foreign currency risks and consider appropriate measures when necessary[64](index=64&type=chunk) [Liquidity Risk](index=22&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E9%A2%A8%E9%9A%AA) The Group faces liquidity risk in settling payables, accrued expenses, bank borrowings, and financing obligations; its policy is to regularly monitor liquidity needs to ensure sufficient cash reserves - The Group faces **liquidity risk** in settling trade payables, accrued expenses and other payables, as well as bank borrowings and their financing obligations[65](index=65&type=chunk) - The Group's policy is to regularly monitor its liquidity requirements to ensure **sufficient cash reserves** are maintained[65](index=65&type=chunk) [Post-Reporting Period Events and Group's Latest Developments](index=23&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A1%B9%E4%B8%8E%E9%9B%86%E5%9B%A2%E6%9C%80%E6%96%B0%E5%8F%91%E5%B1%95) [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the year ended March 31, 2024, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the year ended **March 31, 2024**, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[66](index=66&type=chunk) [Contingent Liabilities](index=23&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of March 31, 2024, the Group had **no** significant contingent liabilities - As of **March 31, 2024**, the Group had **no** significant contingent liabilities[67](index=67&type=chunk) [Events After the Reporting Period](index=23&type=section&id=%E5%9B%9E%E9%A1%A7%E6%9C%9F%E9%96%93%E5%BE%8C%E4%BA%8B%E9%A0%85) Post-reporting period, the company entered new sub-lease and loan agreements with controlling shareholder Gold Fame Group Holdings Limited to support daily working capital - On **May 1, 2024**, the Company entered into a sub-lease agreement with Gold Fame to lease its principal place of business in Hong Kong for a monthly rent of **HK$98,616** for a period of **twelve months**[68](index=68&type=chunk) - On **May 1, 2024**, the Company entered into a loan agreement with Gold Fame, whereby Gold Fame agreed to provide **unsecured loan financing** totaling **HK$18,000,000** at an annual interest rate of **6%**[70](index=70&type=chunk) - These transactions constitute continuing connected transactions but are **fully exempt** as the amounts fall below the exemption thresholds[68](index=68&type=chunk)[70](index=70&type=chunk) [Latest Developments of the Group](index=24&type=section&id=%E9%9B%86%E5%9C%98%E6%9C%80%E6%96%B0%E7%99%BC%E5%B1%95) The Group is actively expanding its Greater Bay Area financing business, with **598** car leasing arrangements valued at approximately **RMB57.4 million** as of May 31, 2024; it will strengthen ecosystem synergies, diversify risks, and recover overdue receivables - As of **May 31, 2024**, the Group had entered into multiple car leasing arrangements involving a total of **598 vehicles**, valued at approximately **RMB57.4 million** (equivalent to approximately **HK$62.4 million**)[71](index=71&type=chunk) - The Group is working closely to further expand its **financing business** in various regions of the **Greater Bay Area**[71](index=71&type=chunk) - The Group will actively integrate into **multi-platform ecosystems**, expand development space, stimulate new growth drivers, and continue to manage and utilize various strategies and means to recover overdue **finance lease receivables**[71](index=71&type=chunk) [Additional Information on Qualified Audit Opinion](index=25&type=section&id=%E6%9C%89%E9%97%9C%E4%BF%9D%E7%95%99%E5%AF%A9%E6%A0%B8%E6%84%8F%E8%A6%8B%E4%B9%8B%E9%A1%8D%E5%A4%96%E8%B3%87%E6%96%99) [Details of Auditor's Qualified Opinion](index=25&type=section&id=%E6%A0%B8%E6%95%B0%E5%B8%88%E4%BF%9D%E7%95%99%E6%84%8F%E8%A7%81%E8%AF%A6%E6%83%85) UHY CPA Limited issued a **qualified opinion** on the Group's FY2024 consolidated financial statements, primarily concerning the scope of comparative information for the FY2023 disposal of Rongzhong Capital and its subsidiaries - UHY CPA Limited, the Group's auditor, issued a **qualified opinion** on the Group's consolidated financial statements for the year ended **March 31, 2024**[73](index=73&type=chunk) - The **qualified opinion** pertains only to the scope of comparative information in the consolidated financial statements, specifically the statement of profit or loss and other comprehensive income, statement of changes in equity, and statement of cash flows for the year ended **March 31, 2023**[73](index=73&type=chunk) - The auditor was unable to determine whether adjustments were necessary for the results, cash flows, carrying amounts of assets and liabilities at the disposal date, and gain on disposal of the Disposed Group in **FY2023**[74](index=74&type=chunk) [Audit Committee's Opinion on Qualified Audit Opinion and Management's Response](index=25&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E9%97%9C%E6%96%BC%E4%BF%9D%E7%95%99%E5%AF%A9%E6%A0%B8%E6%84%8F%E8%A6%8B%E7%9A%84%E6%84%8F%E8%A6%8B%E4%BB%A5%E5%8F%8A%E7%AE%A1%E7%90%86%E5%B1%A4%E5%B0%B1%E6%AD%A4%E7%9A%84%E5%8F%8D%E6%87%89) The Audit Committee concurs with management that the **qualified opinion** matters no longer impact the March 31, 2023, consolidated statement of financial position and do not affect FY2024 financial statements, except for comparative figure comparability - The Audit Committee concurs with management's position that the matters subject to the **qualified opinion** no longer have a potential impact on the consolidated statement of financial position as of **March 31, 2023**[76](index=76&type=chunk) - The Board and the auditor reached a consensus that the issues leading to the **qualified opinion** have been resolved and do not affect the **FY2024** consolidated financial statements[76](index=76&type=chunk) [Outlook](index=26&type=section&id=%E5%B1%95%E6%9C%9B) The Group aims to expand its China leasing network, integrate value-added services, and has evolved into a comprehensive financial services provider; through disposals, liabilities and business risks were reduced, and future growth will focus on diversifying revenue, expanding leasing services, and strengthening ecosystem synergies - The Group is committed to expanding its China leasing network and integrating distinctive value-added services, having developed into a **comprehensive financial services provider** in China offering value-added services in Hong Kong and Southeast Asia[77](index=77&type=chunk) - Following the completion of the disposal, the Group successfully **reduced related liabilities and business risks**, preparing for future development[77](index=77&type=chunk) - Looking ahead, the Group will achieve **stable growth** through diversification of revenue sources and related business risks, further expand leasing services to other regions, and strengthen **ecosystem synergies**[77](index=77&type=chunk) [Connected Transactions](index=26&type=section&id=%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93) [Acquisition of Entire Equity Interest in Changfa Jianye Limited](index=26&type=section&id=%E6%94%B6%E8%B3%BC%E9%95%B7%E7%99%BC%E5%BB%BA%E6%A5%AD%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8%E5%85%A8%E9%83%A8%E8%82%A1%E6%AC%8A) On May 31, 2023, the Company acquired the entire issued share capital of Changfa Jianye Limited for **HK$2**; this connected transaction was fully exempt as the amount fell below the exemption threshold - On **May 31, 2023**, the Company entered into a sale and purchase agreement with Gold Fame and its associates to acquire the entire issued share capital of Changfa Jianye Limited for a total consideration of **HK$2**[78](index=78&type=chunk) - The acquisition was completed on **June 2, 2023**, constituting a connected transaction but **fully exempt** as the applicable percentage ratios were below **0.1%** and the transaction was conducted on normal commercial terms[79](index=79&type=chunk) [Completion of Major and Connected Transaction Involving Acquisition of Remaining 49% Equity Interest in Ultimate Harvest Global Limited and Issue of New Shares](index=27&type=section&id=%E5%AE%8C%E6%88%90%E6%9C%89%E9%97%9C%E6%94%B6%E8%B3%BCUltimate%20Harvest%20Global%20Limited%E5%89%A9%E9%A4%9849%25%E8%82%A1%E6%AC%8A%E4%B8%94%E6%B6%89%E5%8F%8A%E6%96%B0%E8%82%A1%E4%BB%BD%E7%99%BC%E8%A1%8C%E7%9A%84%E4%B8%BB%E8%A6%81%E5%8F%8A%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93) On October 30, 2023, the Company agreed to acquire the remaining **49%** equity in Ultimate Harvest Global Limited (UMH) for **HK$17,500,000** by issuing new shares; the transaction completed on January 18, 2024, making UMH a wholly-owned subsidiary - On **October 30, 2023**, the Company entered into an acquisition agreement with Gold Fame to acquire **49%** of the issued share capital of UMH for **HK$17,500,000**, payable by issuing and allotting new shares of the Company to Gold Fame[80](index=80&type=chunk) - The transaction was completed on **January 18, 2024**, with Gold Fame being allotted and issued **46,052,632** new shares of the Company, and UMH becoming a **wholly-owned subsidiary** of the Company[81](index=81&type=chunk) [Supplemental Agreement and Completion of Disposal of Entire Issued Share Capital and Shareholder's Loan of Rongzhong Capital](index=27&type=section&id=%E8%A3%9C%E5%85%85%E5%8D%94%E8%AD%B0%E5%8F%8A%E5%AE%8C%E6%88%90%E6%9C%89%E9%97%9C%E5%87%BA%E5%94%AE%E8%9E%8D%E4%BC%97%E8%B5%84%E6%9C%AC%E7%9A%84%E5%85%A8%E9%83%A8%E5%B7%B2%E7%99%BC%E8%A1%8C%E8%82%A1%E6%9C%AC%E5%8F%8A%E8%82%A1%E4%B8%9C%E8%B2%B8%E6%AC%BE) On June 2, 2022, the Company entered a supplemental agreement with Mr. Xie Xiaoqing, amending the terms for the disposal of Rongzhong Capital; the disposal completed on March 17, 2023, terminating the Company's interest in Rongzhong Capital - On **June 2, 2022**, the Company entered into a supplemental agreement with Mr. Xie Xiaoqing, amending the terms of the sale and purchase agreement for the disposal of Rongzhong Capital[83](index=83&type=chunk) - The disposal was completed on **March 17, 2023**, and the Company ceased to hold any interest in Rongzhong Capital, with Rongzhong Capital and its subsidiaries no longer being subsidiaries of the Company[84](index=84&type=chunk) [Completion of Connected Transaction Regarding Subscription of New Shares Under Specific Mandate](index=28&type=section&id=%E5%AE%8C%E6%88%90%E6%9C%89%E9%97%9C%E6%A0%B9%E6%93%9A%E7%89%B9%E5%88%A5%E6%8E%88%E6%AC%8A%E8%AA%8D%E8%B3%BC%E6%96%B0%E8%82%A1%E4%BB%BD%E7%9A%84%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93) On October 30, 2023, Gold Fame agreed to subscribe for new shares at **HK$0.38** per share, with the consideration paid by offsetting loans granted to the Company; the transaction completed on January 18, 2024, with Gold Fame allotted **123,490,939** new shares - On **October 30, 2023**, Gold Fame entered into a subscription agreement with the Company, whereby Gold Fame agreed to subscribe for new shares of the Company at **HK$0.38**, with the total consideration paid by offsetting certain loans granted by Gold Fame to the Company[87](index=87&type=chunk) - The transaction was completed on **January 18, 2024**, with Gold Fame being allotted and issued **123,490,939** new shares of the Company[88](index=88&type=chunk) [Continuing Connected Transactions](index=28&type=section&id=%E6%8C%81%E7%BA%8C%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93) This section details the Group's continuing connected transactions, including trademark license agreements, finance lease guarantee agreements, sub-lease agreements, and various loan agreements with connected persons [Connected Persons](index=28&type=section&id=%E9%97%9C%E9%80%A3%E4%BA%BA%E5%A3%AB) Rongzhong Group Limited and its subsidiaries (including Wuhan Jinhong Investment Guarantee Co., Ltd.), Wuhan Rongzhong Network Technology Co., Ltd., Rongzhong Capital Investment Group Co., Ltd. and its subsidiaries (including Wuhan Xinzhongrong Enterprise Management Co., Ltd.) are all identified as connected persons of the Company - Gold Fame indirectly holds a **40.00%** interest in Rongzhong Group, thus Rongzhong Group and its indirect wholly-owned subsidiary Wuhan Jinhong are **connected persons** of the Company[91](index=91&type=chunk) - Mr. Xie, a substantial shareholder of the Company, directly owns **100.00%** interest in Wuhan Rongzhong Network Technology Co., Ltd. and **98.21%** interest in Rongzhong Capital Investment Group Co., Ltd., respectively; therefore, Rongzhong Network, Rongzhong Capital Investment, and its wholly-owned subsidiary Wuhan Xinzhongrong Enterprise Management Co., Ltd. are **connected persons** of the Company[92](index=92&type=chunk) [Exempted Continuing Connected Transactions](index=29&type=section&id=%E8%B1%81%E5%85%8D%E6%8C%81%E7%BA%8C%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93) The Group's trademark license, finance lease guarantee, sub-lease, and loan agreements with connected persons are exempt from shareholder approval, annual review, and disclosure requirements under Listing Rules [Trademark License Agreements](index=29&type=section&id=%E5%95%86%E6%A8%99%E8%A8%B1%E5%8F%AF%E5%8D%94%E8%AD%B0) Rongzhong Capital (a disposed subsidiary) entered into trademark license agreements with Rongzhong Group and Rongzhong Network to use certain trademarks perpetually and non-exclusively for **HK$1.00** or **RMB1.00** - Rongzhong Capital entered into trademark license agreements with Rongzhong Group and Rongzhong Network, respectively, to use certain trademarks on a **perpetual and non-exclusive basis** for a consideration of **HK$1.00** or **RMB1.00**[93](index=93&type=chunk) - Rongzhong Capital and its affiliates are entitled to use the trademarks as company logos and for promotional activities, and Rongzhong Group and Rongzhong Network shall **not transfer or license** the trademarks to competitors[93](index=93&type=chunk) [Finance Lease Guarantee Agreements](index=29&type=section&id=%E8%9E%8D%E8%B3%87%E7%A7%9F%E8%B3%83%E6%93%94%E4%BF%9D%E5%8D%94%E8%AD%B0) China Rongzhong (a disposed subsidiary) entered into finance lease guarantee agreements with Wuhan Rongzhong and Wuhan Jinhong, where the latter guaranteed certain customers' lease payments, with customers pledging additional assets to the guarantors - China Rongzhong entered into **finance lease guarantee agreements** with Wuhan Rongzhong and Wuhan Jinhong, whereby the latter acted as guarantors for certain customers' lease payment obligations to China Rongzhong[94](index=94&type=chunk) - Customers will pledge **additional assets** to Wuhan Rongzhong and Wuhan Jinhong as further security[94](index=94&type=chunk) - Guarantee fees (if any) are **fully borne** by China Rongzhong's customers[94](index=94&type=chunk) [Sub-lease Agreement for the Company's Principal Place of Business in Hong Kong](index=30&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E9%A6%99%E6%B8%AF%E4%B8%BB%E8%A6%81%E7%87%9F%E6%A5%AD%

Financial Performance - Revenue for the six months ended September 30, 2023, was HKD 49,197,000, an increase of 8% compared to HKD 45,509,000 for the same period in 2022[4] - The company reported a profit before tax of HKD 1,303,000, a significant improvement from a loss of HKD 22,315,000 in the previous year[4] - The net profit for the period was HKD 1,293,000, compared to a net loss of HKD 22,323,000 in the same period last year[4] - Total comprehensive income for the period amounted to HKD 875,000, a decrease from HKD 46,352,000 in the previous year[4] - The basic loss per share improved to HKD (0.29) from HKD (5.65) year-on-year[4] - The company incurred a loss of HKD 1,232,000 for the six months ended September 30, 2023, compared to a loss of HKD 23,292,000 in the previous period[9] - The company reported a pre-tax profit of HKD 1,303,000 for the six months ended September 30, 2023, after accounting for personnel costs of HKD 1,728,000 and other operating expenses of HKD 2,446,000[28] - The company reported a profit of approximately HKD 1.3 million for the reporting period, a significant improvement from a loss of approximately HKD 22.3 million for the same period last year[125] Assets and Liabilities - The company's total assets decreased to HKD 58,615,000 from HKD 69,023,000 as of March 31, 2023[5] - Current liabilities decreased to HKD 48,582,000 from HKD 63,871,000, improving the company's net current liabilities position[5] - The company's cash and cash equivalents increased to HKD 15,269,000 from HKD 14,575,000[5] - The company reported a total equity attributable to owners of the company of HKD (655,090,000) as of September 30, 2023, reflecting a decrease from HKD (701,426,000) at the beginning of the period[9] - The company has a net current liability of approximately HKD 21,131,000 as of September 30, 2023, raising concerns about its ability to continue as a going concern[16] - The company’s total liabilities included bank borrowings of approximately HKD 1,261,000 and amounts due to related companies of approximately HKD 23,933,000[16] - Total liabilities decreased to HKD 106,591,000 from HKD 118,635,000, indicating a reduction of 10.2%[32] Cash Flow and Financing - For the six months ended September 30, 2023, the net cash generated from operating activities was HKD 7,375,000, compared to a net cash used of HKD 4,832,000 in the same period last year[11] - The financing activities resulted in a net cash outflow of HKD 6,060,000 for the period, compared to a net cash inflow of HKD 2,333,000 in the previous year[11] - The company secured a loan agreement with a major shareholder, providing an unsecured term loan of HKD 50,000,000 to support general working capital, maturing on October 20, 2024[18] - The company successfully executed a subscription agreement, allowing for the issuance of shares to offset liabilities totaling approximately HKD 26,357,000 and an unsecured loan note of HKD 11,599,000[19] - The company has unused credit facilities of HKD 35,634,000 and HKD 32,946,000 as of September 30, 2023, from related companies[18] - The company is in discussions to secure additional sources of new loan financing as needed[18] Cost Management - The company is implementing active cost-saving measures to control administrative costs and improve operating cash flow, ensuring sufficient working capital for at least the next twelve months[19] - Total personnel costs decreased to HKD 13,448,000 in the first half of 2023 from HKD 14,031,000 in the same period of 2022, reflecting a reduction of approximately 4.1%[41] - Other operating expenses were approximately HKD 8.4 million, a decrease of about 10.9% from approximately HKD 9.4 million for the same period last year, primarily due to cost-saving measures[119] Credit and Impairment - The company recognized expected credit losses of HKD 14,000 for the six months ended September 30, 2023, compared to HKD 7,525,000 in the previous year, indicating a significant reduction in credit losses[36] - The company recorded a net impairment loss of HKD 77,647,000 for the six months ended September 30, 2023, reflecting ongoing challenges in credit risk management[54] - The provision for credit losses on trade receivables increased to HKD 1,208,000 as of September 30, 2023, from HKD 804,000 as of March 31, 2023[66] Shareholder and Governance - The company did not declare or propose any dividends to ordinary shareholders for the six months ended September 30, 2023, consistent with the previous year[42] - The company has appointed new non-executive and independent non-executive directors to comply with listing rules regarding board composition[153] - The board of directors consists of eight members, including one executive director, four non-executive directors, and three independent non-executive directors[156] - The company has adopted a board diversity policy to enhance performance quality, considering factors such as gender, age, cultural background, and professional qualifications[159] - The company is committed to good corporate governance practices, although it currently lacks a chairman as of the annual general meeting held on September 19, 2023[152] Related Party Transactions - The company has significant influence from Jinbang, which is reflected in the related party transactions and financial arrangements disclosed in the report[74] - The company has a loan facility from its major shareholder, Jinbang, with a maximum limit of HKD 50,000,000, at an interest rate of 6.0%[80] - The company has a related party balance of 10.9 million HKD as of September 30, 2023, down from 14.5 million HKD on March 31, 2023[187] Market and Operational Challenges - Despite operational improvements, the company acknowledges ongoing economic challenges due to the pandemic and political instability affecting customer cash flows[150] - The group faces credit risk primarily from leasing receivables and loans, with increased default risk due to economic uncertainties affecting SMEs[133] - The company continues to expand its leasing business in China, diversifying business risks and enhancing its market position[150]

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。 CHINA RONGZHONG FINANCIAL HOLDINGS COMPANY LIMITED 中 國 眾 金 控 股 有 限 公司 （於開曼群島註冊成立的有限公司） （股份代號：03963） 截至二零二三年九月三十日止六個月 未經審核的中期業績公告 中期業績 中國融眾金融控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公告 本公司及其附屬公司（統稱「本集團」）截至二零二三年九月三十日止六個月（「報 告期間」）未經審核的中期業績，連同比較數字。除另有指明外，本公告所載金額 均以港元（「港元」）列示。 ...

Financial Performance - For the fiscal year ending March 31, 2023, the company reported revenues of HKD 84,833,000, a significant increase from HKD 35,120,000 in the previous year, representing a growth of 141.5%[6] - The company recorded a loss before tax of HKD 123,327,000, an improvement compared to a loss of HKD 567,039,000 in the prior year, indicating a reduction in losses by approximately 78%[6] - Total assets decreased to HKD 93,635,000 from HKD 433,922,000 in the previous year, reflecting a decline of 78.4%[7] - The company reported a loss of approximately HKD 123.3 million for the year ended March 31, 2023, a reduction of about 78.3% compared to a loss of approximately HKD 567.8 million for the same period last year, mainly due to a decrease in financial asset impairment losses[107] - Personnel costs for the reporting period were approximately HKD 26.7 million, an increase of about 27.8% from approximately HKD 20.9 million for the same period last year, primarily due to an increase in the number of employees[99] - Other operating expenses amounted to approximately HKD 20.2 million, a slight increase of about 2.1% from approximately HKD 19.7 million for the same period last year[102] - Financial asset impairment losses were approximately HKD 77.8 million, a significant decrease of about HKD 426.5 million compared to approximately HKD 504.3 million for the same period last year[103] - The company's other income was approximately HKD 0.6 million, an increase of about 460.9% from approximately HKD 0.1 million for the same period last year, mainly due to government subsidies recognized as financial assistance[105] - Financial costs for the reporting period were approximately HKD 33.6 million, an increase of about 4.9% from approximately HKD 32.1 million for the same period last year, primarily due to increased borrowing and financing activities[106] Business Strategy and Operations - The company successfully expanded its leasing business in China, establishing a stronger presence in multiple locations, which helped diversify business risks and explore new markets[9] - The company aims to continue expanding its leasing business and recovering overdue receivables while exploring opportunities outside the leasing industry to enhance synergies within its ecosystem[10] - The overall economic environment in China is improving, which the company believes will support sustainable growth and value creation for shareholders[10] - The company is focused on managing and recovering overdue financing lease receivables through various strategies, including litigation and debt restructuring[141] - The company believes that its financing leasing business will improve as the overall economic environment gradually recovers[141] - The company is actively reviewing and processing loan applications to expand its financing business in the Greater Bay Area[141] - The company aims to enhance synergies within its ecosystem to further develop its leasing services and expand its business outside Hubei Province[141] Corporate Governance - Liu Xiaofeng appointed as a non-executive director on April 28, 2023, with extensive experience in capital markets and asset management[14] - The company has complied with the corporate governance code principles as per the Hong Kong Stock Exchange, with the board currently meeting the minimum requirements for independent directors[30] - The board of directors has appointed Mr. Wu as an independent non-executive director effective April 28, 2023, enhancing governance and oversight[26] - The independent non-executive directors have confirmed their independence in accordance with the guidelines set out in the listing rules[32] - The company has a strong governance framework in place, adhering to the majority of best practices recommended by the corporate governance code[30] - The board is responsible for formulating corporate strategies and monitoring the overall operational and financial performance of the group[31] - The company has adopted a board diversity policy to enhance performance quality, considering factors like gender, age, and professional qualifications[49] - The company encourages continuous professional development for all directors to update their knowledge and skills[41] - The board has conducted meetings to discuss matters affecting the company's operations, ensuring timely and effective decision-making[31] - The board composition includes experienced individuals, contributing to the effective management of the company's affairs[31] Shareholder Information - The company did not recommend the payment of any final dividend for the year ending March 31, 2023[80] - As of March 31, 2023, the company had no distributable reserves for shareholders, consistent with the previous year[85] - The group reported that the top five customers accounted for approximately 12.9% of total revenue, down from 50.0% in the previous year, with the largest customer contributing about 5.7% of total revenue compared to 20.6% last year[87] - As of March 31, 2023, the total equity held by key executives and directors in the company amounts to 189,190,145 shares, representing 45.86% of the issued shares[162] - Huang Kai'en holds 400,000 shares, accounting for 0.1% of the issued shares, while Huang Yueyi and Huang Yiyi each hold 189,190,145 shares, representing 45.86%[162] Risk Management - The group faces increased credit risk due to the economic pressures on small and medium-sized enterprises in China, which may impact future business performance[117] - The group has no foreign exchange hedging policy in place to mitigate currency risks, particularly related to RMB and USD transactions[121] - The management continues to monitor liquidity risks to ensure sufficient cash reserves for short-term and long-term needs[122] - The company has a commitment to maintaining effective risk management and internal control systems, which were reviewed by an external independent internal audit service provider during the reporting period[66] Acquisitions and Disposals - The company completed the acquisition of 51% of Anhua Lida Risk Asset Management Co., Ltd. on August 25, 2021, which now operates as a non-wholly owned subsidiary[125] - The company completed the acquisition of 51% of Ultimate Harvest Global Limited on March 4, 2022, which primarily provides automotive leasing services in China[129] - The company sold its entire stake in融眾資本集團有限公司, including 104,422 shares and a debt of HKD 177,925,850.34, for a total consideration of HKD 100,000, completed on March 17, 2023[131] - The sale of Rongzhong Capital Group and its subsidiaries was completed on March 17, 2023, for a cash consideration of HKD 100,000, significantly improving the company's financial position[145] - The sale resulted in a gain of approximately HKD 715,120,000, which is treated as a capital injection from shareholders[150] - The company no longer controls Rongzhong Capital and its financial performance will not be consolidated in the group's financial statements[150] Compliance and Legal Matters - The company has complied with the legal and regulatory requirements for financing lease operations as mandated by the Ministry of Commerce[160] - The company is required to submit audited financial reports by April 30 each year, ensuring transparency and adherence to statutory requirements[160] - The board of directors has reached a consensus with auditors regarding the resolution of issues related to the disclaimer of opinion[155] - The company has implemented measures to ensure the comparability of financial data presented in the financial statements[155] Non-Competition Agreements - The company entered into non-competition agreements with various parties to protect against potential competition from shareholders[200] - The agreements include irrevocable commitments from the parties involved to refrain from competing during the defined period[200] - The non-competition commitments apply to both the company and its closely related entities[200] - The agreements aim to prevent any competitive actions that could harm the company's market position[200] - The company continues to monitor the effectiveness of these agreements in protecting its business interests[200]

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。 CHINA RONGZHONG FINANCIAL HOLDINGS COMPANY LIMITED 中 國 眾 金 控 股 有 限 公司 （於開曼群島註冊成立的有限公司） （股份代號：03963） 截至二零二三年三月三十一日止財政年度經審核年度業績初步公告 及暫停辦理股份過戶登記手續 經審核年度業績 中國融眾金融控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）董事 （「董事」）會（「董事會」）謹此公佈本集團截至二零二三年三月三十一日止年度 （「報告期間」）的經審核綜合財務業績連同截至二零二二年三月三十一日止年度 的比較數字。除另有指明外，本公告所載金額均以港元列示。 ...

Financial Performance - Revenue for the six months ended September 30, 2022, was HKD 45,509,000, a significant increase from HKD 7,582,000 in the same period last year, representing a growth of 499%[7] - The company reported a loss of HKD 22,323,000 for the period, compared to a profit of HKD 3,000 in the previous year, indicating a shift in performance[7] - Total comprehensive income for the period was HKD 46,352,000, compared to a loss of HKD 1,000 in the same period last year[7] - The group reported a pre-tax loss of HKD 22,315,000 for the six months ended September 30, 2022, compared to a pre-tax profit of HKD 19,000 for the same period in 2021[42] - The company reported a loss attributable to shareholders of HKD 23,292,000 for the six months ended September 30, 2022, compared to a loss of HKD 355,000 for the same period in 2021[59] Assets and Liabilities - Non-current assets decreased to HKD 147,493,000 from HKD 168,358,000 as of March 31, 2022, reflecting a decline of approximately 12.4%[9] - Current assets also decreased to HKD 240,448,000 from HKD 265,564,000, a reduction of about 9.5%[9] - The company's total liabilities amounted to HKD 966,131,000, down from HKD 1,043,389,000, indicating a decrease of approximately 7.4%[9] - Total liabilities decreased to HKD 71,107 thousand as of September 30, 2022, down from HKD 86,417 thousand as of March 31, 2022, representing a decline of approximately 17.7%[11] - The total assets of the group decreased from HKD 433,922,000 as of March 31, 2022, to HKD 387,941,000 as of September 30, 2022, reflecting a decline of approximately 10.6%[45] Cash Flow and Financing - The company reported a net cash inflow from operating activities of HKD 1,154 thousand for the six months ended September 30, 2022, compared to a net outflow of HKD (3,947) thousand for the same period in 2021[16] - The company’s cash and cash equivalents decreased to HKD 11,579,000 from HKD 15,479,000, a decline of about 25.3%[9] - The company raised new bank borrowings amounting to HKD 24,166 thousand during the reporting period[16] - The company successfully extended bank loans amounting to approximately HKD 24,166,000 until May 2024[33] - The company has entered into a loan agreement with a major shareholder for an unsecured loan of HKD 50,000,000 to improve working capital needs, with an interest rate of 6%[28] Operational Strategy - The company is focusing on expanding its market presence and developing new products and technologies to enhance future performance[5] - The company aims to enhance its leasing business by strengthening synergies across multiple platforms and diversifying its business risks through smaller loan sizes and high liquidity assets[186] - The company is actively implementing cost-saving measures to control administrative costs and improve cash flow[34] - The company is committed to good corporate governance and has adhered to most of the best practices outlined in the corporate governance code[188] - The company is actively monitoring credit risk and has required additional collateral from some clients as a precautionary measure due to increased default risk among SMEs[165] Impairment and Provisions - The company has recognized an impairment loss of HKD 1,371,561,000 on lease receivables and sale-and-leaseback arrangements due to adverse effects from the COVID-19 pandemic[24] - The impairment loss provision for trade receivables increased to HKD 800,000 as of September 30, 2022, compared to HKD 688,000 as of March 31, 2022[82] - The company recognized a goodwill impairment of HKD 5,998,000 for the Anhua Lida Group during the six months ended September 30, 2022[74] - The expected credit loss provision for lease receivables was assessed based on significant increases in credit risk since initial recognition[67] - The company aims to maintain strict control over overdue receivables, which are regularly reviewed by senior management[78] Corporate Governance - The board currently consists of seven directors, including one executive director, four non-executive directors, and two independent non-executive directors[191] - The audit committee currently lacks a chairman and is composed of two non-executive directors and two independent non-executive directors, failing to meet the requirement of a majority of independent non-executive directors[196] - The company has adopted a board diversity policy to enhance performance quality, considering factors such as gender, age, cultural background, and professional qualifications[193] - The company will make further announcements upon compliance with the relevant requirements regarding independent non-executive directors[189] - The board's composition and structure will be reviewed annually to recommend changes that align with the company's strategy and ensure a diverse board[193] Market Conditions and Challenges - The ongoing COVID-19 pandemic continues to disrupt operations, affecting cash flow and the recoverability of leasing assets[172] - The ongoing challenges include the impact of COVID-19, liquidity crises in the Chinese real estate market, and geopolitical instability affecting the company's SME clients[185] - The company is focused on maintaining operational continuity while exploring feasible plans to address significant uncertainties regarding its ongoing viability[183] - Credit risk primarily arises from leasing receivables and the recoverability of loans, which are regularly reviewed based on individual circumstances and market conditions[162] - The financing leasing business is positioned to meet the financing needs of SMEs, with a focus on effective credit risk management to ensure business sustainability and future growth[165]

Financial Performance - For the fiscal year ending March 31, 2022, the company reported a revenue of HKD 37,367,000, an increase from HKD 15,821,000 in the previous year, representing a growth of 135.0%[3] - The company incurred a loss before tax of HKD 39,965,000, compared to a loss of HKD 121,383,000 in the previous year, indicating an improvement of 67.0%[3] - The total comprehensive loss for the year was HKD 45,972,000, down from HKD 125,755,000, reflecting a reduction of 63.4%[3] - The basic and diluted loss per share for the year was HKD 0.10, compared to HKD 0.29 in the previous year, showing a decrease in loss per share[3] - The net loss for the year 2022 was HKD 41,187,000, a decrease from a loss of HKD 121,383,000 in 2021[32] - The company recorded a loss of approximately HKD 40.7 million for the year ended March 31, 2022, a decrease of about 66.4% from a loss of HKD 121.4 million in the previous year[63] Financial Position - As of March 31, 2022, the company had overdue lease receivables totaling HKD 1,832,209,000, with an impairment loss provision of HKD 985,092,000[7] - The company’s bank borrowings amounted to HKD 707,219,000, with cash and cash equivalents of only HKD 15,479,000, indicating a significant liquidity concern[7] - The company reported a net equity deficit of HKD 152,932,000 as of March 31, 2022, compared to a deficit of HKD 109,990,000 in the previous year[5] - Total assets increased to HKD 984,629,000 as of March 31, 2022, compared to HKD 846,967,000 as of March 31, 2021[23] - Total liabilities rose to HKD 1,137,561,000 as of March 31, 2022, from HKD 956,957,000 as of March 31, 2021[23] - The group's operating capital deficit was approximately HKD 245.0 million as of March 31, 2022, compared to an operating capital of approximately HKD 10.8 million in 2021[66] Revenue Segments - Total revenue from the leasing services segment was HKD 12,533,000, while the debt collection and credit investigation services segment generated HKD 24,834,000, leading to a total revenue of HKD 37,367,000 for the year ended March 31, 2022[21] - The group’s total income from debt collection services was HKD 16,835,000 and from credit investigation services was HKD 7,999,000 for the year ended March 31, 2022[23] Cost and Expenses - The total personnel costs for 2022 amounted to HKD 20,914,000, significantly higher than HKD 5,978,000 in 2021[31] - Other operating expenses amounted to approximately HKD 22.8 million, up about 105.4% from HKD 11.1 million in the previous year, primarily due to increased legal and professional fees[59] - Financial costs for the reporting period were approximately HKD 31.8 million, an increase of about 7.4% from HKD 29.6 million in the previous year, attributed to increased borrowing and financing activities[62] Loans and Financing - The company has entered into a loan agreement with its controlling shareholder for an unsecured loan of HKD 50,000,000 to improve working capital, with an interest rate of 6%[9] - The company entered into an unsecured loan agreement with Jinbang on October 21, 2021, for a total of HKD 50 million, with an interest rate of 6% and a repayment period of three years[102] - As of March 31, 2022, the outstanding balance payable to Jinbang was approximately HKD 10.9 million, compared to zero in the previous year[102] Corporate Governance - The company has adhered to the corporate governance code and has implemented most of the recommended best practices during the reporting period[106] - The company is committed to maintaining good corporate governance practices in compliance with the Hong Kong Stock Exchange listing rules[106] - The company’s audit committee has reviewed the unaudited consolidated financial statements for the reporting period[110] Strategic Initiatives - The company plans to establish more subsidiaries in China to expand its profitable and stable leasing business following the acquisition of Ultimate Harvest Global Limited[51] - The company has implemented a strategic plan to expand its operations beyond Hubei Province, reducing business risk exposure and enhancing its leasing services through due diligence and credit investigation services[52] - The company is exploring diversification of revenue sources and related business risks to enhance operational performance[84] Impact of COVID-19 - The group faced increased credit risk due to the economic pressures on small and medium-sized enterprises (SMEs) in China, particularly exacerbated by the COVID-19 pandemic[71] - The group experienced significant operational disruptions due to the COVID-19 pandemic, particularly affecting its business in Wuhan and Hubei Province[81] - The ongoing COVID-19 pandemic continues to disrupt global operations, significantly affecting the company's financial condition and cash flow[83] Audit and Reporting - The company has not completed the audit process for the fiscal year ending March 31, 2022, due to COVID-19 restrictions affecting operations in certain regions of China[105] - The company’s financial reporting has been delayed, and the unaudited annual results are subject to further adjustments based on the auditor's review[109] - The audited financial results and annual report are expected to be completed by August 14, 2022, pending the audit process[112]

Financial Performance - For the six months ended September 30, 2021, the company reported total revenue of HKD 7,582,000, a decrease of 26.7% compared to HKD 10,364,000 for the same period in 2020[9]. - The company incurred a net loss attributable to owners of HKD 355,000, compared to a profit of HKD 18,836,000 in the previous year, representing a significant decline[9]. - Total comprehensive income for the period was HKD (1,000), down from HKD 19,609,000 in the same period last year[9]. - The company reported a basic and diluted loss per share of HKD (0.09) compared to earnings per share of HKD 4.57 in the prior year[9]. - The company recorded a net cash outflow from operating activities of HKD (3,947,000) for the six months ending September 30, 2021, compared to an inflow of HKD 4,078,000 in the same period last year[30]. - The company reported a profit of approximately HKD 3,000 for the reporting period, a significant decrease from approximately HKD 18.8 million in the same period last year[164]. Assets and Liabilities - The company's total assets as of September 30, 2021, amounted to HKD 898,995,000, an increase from HKD 842,947,000 as of March 31, 2021[11]. - Current liabilities increased to HKD 869,158,000 from HKD 740,832,000, indicating a rise in financial obligations[11]. - The total liabilities rose to HKD 1,011,414,000 as of September 30, 2021, from HKD 956,957,000 as of March 31, 2021[57]. - The company’s total equity was HKD (112,808,000), reflecting a decrease from HKD (109,990,000) as of March 31, 2021[27]. - The company’s bank borrowings rose to HKD 547,435,000 from HKD 443,688,000, indicating increased leverage[11]. Cash Flow and Financing - The company’s cash and cash equivalents stood at HKD 8,907,000, up from HKD 5,671,000 at the end of the previous fiscal year[11]. - The company has unutilized tax losses of HKD 6,360,000 as of September 30, 2021, which can offset future profits[67]. - The group reported bank borrowings of approximately HKD 516,766,000 as of September 30, 2021, up from HKD 506,980,000 as of March 31, 2021[103]. - The group successfully renewed bank loans totaling approximately HKD 232.35 million for no less than 13 months as of September 30, 2021[185]. - The company entered into a loan financing agreement for HKD 50 million at an interest rate of 6%, repayable within three years[144]. Revenue Streams - Revenue from debt collection services reached HKD 1,435,000 for the six months ended September 30, 2021, compared to HKD 0 for the same period in 2020[60]. - Revenue from credit investigation services amounted to HKD 2,051,000 for the six months ended September 30, 2021, with no prior year comparison[60]. - Total revenue from customer contract income was HKD 3,486,000 for the six months ended September 30, 2021, with no prior year comparison[60]. - Interest income from sale and leaseback arrangements was HKD 4,093,000, down from HKD 10,078,000 in the same period of 2020, representing a decrease of approximately 59.4%[60]. - Revenue from financing lease services amounted to approximately HKD 4.1 million, a decrease of about 60.5% from approximately HKD 10.4 million in the same period last year, attributed to the economic impact of COVID-19[154]. Operational Challenges and Strategies - The company is facing significant uncertainty regarding its ability to continue as a going concern due to the adverse economic impact of the COVID-19 pandemic[36]. - The company is focusing on expanding its market presence and enhancing its product offerings to drive future growth[7]. - The company has implemented active cost-saving measures to improve operational cash flow and financial condition[41]. - The company continues to manage overdue receivables through litigation and debt restructuring to improve liquidity[187]. - The company aims to diversify its income sources and business risks beyond Hubei Province, focusing on developing leasing operations in China and the Asia-Pacific region[189]. Acquisitions and Investments - The company acquired a subsidiary, resulting in a cash inflow of HKD 5,243,000 during the investment activities[30]. - The acquisition of 51% of Anhua Lida was completed on August 25, 2021, with a total consideration including cash of HKD 3,831,256[119]. - The total identifiable net assets acquired amounted to HKD 67 million, with non-controlling interests of HKD 33 million, resulting in a total consideration of HKD 21,227 million[121][127]. - The company conditionally agreed to acquire 51% of Ultimate Harvest Global Limited for HKD 17 million[144]. - The group completed the acquisition of a 51% stake in Anhua Lida, which provides debt collection and credit investigation services, enhancing its leasing business[185]. Management and Governance - The company adopted a board diversity policy on December 18, 2015, to enhance performance quality through diverse board member perspectives[196]. - The board consists of four committees: Audit Committee, Nomination Committee, Remuneration Committee, and Risk Management Committee, established on December 18, 2015[197]. - The Audit Committee's main responsibilities include reviewing financial information and maintaining relationships with external auditors[199]. - The Nomination Committee is responsible for establishing criteria for selecting and appointing directors, ensuring the board has the necessary skills and diverse perspectives[200]. - The company emphasizes the importance of diversity in board composition, considering factors such as gender, age, cultural background, and professional qualifications[196].

Financial Performance - Total revenue for the year ended March 31, 2021, was HKD 15,821,000, a decrease of 42.7% compared to HKD 27,484,000 in 2020[10]. - The company reported a loss before tax of HKD (121,383,000) for the year, compared to a loss of HKD (65,936,000) in the previous year[10]. - Total assets decreased to HKD 846,967,000 in 2021 from HKD 915,084,000 in 2020, representing a decline of 7.4%[11]. - Total liabilities increased to HKD (956,957,000) in 2021 from HKD (899,802,000) in 2020, indicating a rise of 6.3%[11]. - The company reported a loss of approximately HKD 121.4 million for the year ended March 31, 2021, an increase of about 84.7% compared to a loss of approximately HKD 65.7 million for the same period last year, mainly due to increased impairment losses on financial assets[170]. - Other income for the group was approximately HKD 1.1 million, an increase of about 167.2% compared to approximately HKD 0.4 million for the same period last year, mainly due to increased government subsidies and the reversal of excess provisions for operating expenses[168]. - Financial costs decreased to approximately HKD 29.6 million, down about 1.6% from approximately HKD 30.1 million in the previous year, primarily due to a reduction in the principal amount of bank borrowings[169]. - Personnel costs for the reporting period were approximately HKD 6.0 million, down about 7.6% from HKD 6.5 million for the previous year, primarily due to a reduction in employee numbers[164]. - Other operating expenses increased to approximately HKD 11.1 million, up about 7.2% from HKD 10.3 million in the previous year, mainly due to increased expenses related to the recovery of lease receivables[165]. Corporate Governance - The company is committed to implementing good corporate governance and has adhered to most of the best practices outlined in the corporate governance code[37]. - The board of directors is composed of experienced individuals who hold regular meetings to discuss operational matters affecting the company[37]. - The company has appointed independent non-executive directors to provide oversight and independent opinions to the board[29][30][32]. - The company has a strong focus on strategic development and corporate governance, with key personnel having over 20 years of experience in capital markets and asset management[26]. - The company has established a trust that holds interests in shares, indicating a structured approach to shareholding and governance[23][24]. - The company has adopted a shareholder communication policy to ensure timely dissemination of financial reports and other corporate communications[78]. - The company has no chairman currently, but the board believes it can ensure a balanced distribution of power and authority through its operations[37]. - The company plans to timely arrange the election of a new chairman to strengthen its governance structure[37]. - The board reviews the effectiveness of the risk management and internal control systems at least annually[75]. - The company ensures compliance with corporate governance codes and has reviewed its governance policies and practices during the year[69]. Risk Management - The company is committed to maintaining long-term cooperative relationships with quality suppliers and contractors through open bidding processes[101]. - The company has established a Risk Management Committee responsible for overseeing risk management policies and practices, including reviewing financing lease projects exceeding RMB 100 million[68]. - The board is responsible for maintaining effective risk management and internal control systems, with no significant risks or control deficiencies identified during the review period[75]. - The company’s credit risk management is crucial for its business sustainability, especially given the higher default risk among SMEs in China due to ongoing economic pressures[182]. Operational Strategy - The company plans to focus on recovering overdue financing lease receivables and expanding risk prevention coverage[16]. - The company is considering financing lease applications outside Hubei Province to diversify business risks[16]. - The automotive operating lease business is in the late stages of development, utilizing the company's national financing lease license[16]. - The company is actively evaluating financing lease applications, including two loans totaling RMB 154 million (approximately HKD 183 million) and two entrusted loans totaling RMB 1,000 million (approximately HKD 1,190 million) from borrowers outside Hubei Province[195]. - The company is in the late stages of establishing its automotive operating lease business in China[197]. - The company has not entered into new financing lease agreements since the first quarter of 2021, but the board believes that the financing lease business will improve as the overall economic environment in China and the global COVID-19 pandemic gradually improve[197]. Environmental and Social Responsibility - The company emphasizes sustainable development and integrates environmental and social factors into its management considerations[87]. - The company has established various policies to manage and monitor risks related to environmental, employment, operational practices, and community engagement[87]. - The company aims to provide a healthy and safe working environment and has implemented fair promotion mechanisms for employees[99]. - The company has implemented measures to enhance employee health and safety, adhering to relevant laws and regulations, with no work-related accidents reported during the reporting period[133]. - The company encourages the use of reusable utensils and environmentally friendly cleaning products in its operations[115]. - The company has not reported any violations of applicable environmental laws and regulations during the reporting period[107]. - The company has implemented energy-saving measures, including setting devices to energy-saving modes and encouraging the use of electronic media to reduce paper consumption[113]. - The company has established a quality management policy aimed at adding value to services provided, collecting customer feedback to improve service quality[140]. Shareholder Engagement - The company encourages shareholder participation in annual general meetings, where board members and external auditors are present to address shareholder inquiries[78]. - Shareholders holding at least 10% of the paid-up capital can request the board to convene a special general meeting[80]. - The company has conducted various investor activities, such as performance briefings, to enhance investor recognition[98].