8月20日，截至港股收盘，恒生指数上涨0.17%，报25165.94点。国际永胜集团（06663.HK）收报0.435 港元/股，上涨89.96%，成交量456万股，成交额232.32万港元，振幅200.87%。 资料显示，国际永胜集团控股有限公司及其子公司("国际永胜集团")拥有超过10年营运历史。公司擅长 于各种设施服务,包括一般护卫服务,活动及危机保安服务,人手支援服务及设施管理服务(包括停车场租 赁及管理)。公司拥有超过1,000名员工。当中大多数为合资格进行甲类保安工作及乙类保安工作。公司 通过合资格工作团队为每位客户提供优质服务。自2015年起,公司已获得ISO9001:2015品质管理体系标 准认证。公司的专业态度和诚信始终值得信赖。国际永胜集团是您的不二之选。 （以上内容为金融界基于公开消息，由程序或算法智能生成，不作为投资建议或交易依据。） 来源：金融界 最近一个月来，国际永胜集团累计跌幅13.58%，今年来累计跌幅50.75%，跑输恒生指数25.24%的涨 幅。 财务数据显示，截至2025年3月31日，国际永胜集团实现营业总收入4.01亿元，同比增长8.09%；归母净 利润382.88万元 ...

Company Overview - International Yongsheng Group Holdings Limited and its subsidiaries have over 10 years of operational history, specializing in various facility services including general security, event and crisis security, manpower support, and facility management services [2] - The company employs over 1,000 staff, most of whom are qualified for Class A and Class B security work, ensuring high-quality service for clients [2] - Since 2015, the company has been certified under the ISO 9001:2015 quality management system, reflecting its commitment to professionalism and integrity [2] Financial Performance - As of March 31, 2025, International Yongsheng Group reported total revenue of 401 million yuan, representing a year-on-year growth of 8.09% [1] - The net profit attributable to shareholders was 3.8288 million yuan, a significant decrease of 69.63% compared to the previous year [1] - The gross profit margin stood at 98.36%, with a debt-to-asset ratio of 20.8% [1] Market Position and Valuation - The company’s current price-to-earnings (P/E) ratio is 54.95, ranking 53rd in its industry, while the average P/E ratio for the support services industry is 3.44 [1] - The median P/E ratio for the industry is 3.1, indicating that International Yongsheng Group is significantly overvalued compared to its peers [1] - Other companies in the Chinese education sector have much lower P/E ratios, such as 1.42 for China Science Education Industry and 1.97 for Xijiao International Holdings [1]

Group 1 - The Hang Seng Index rose by 0.62% to close at 24,221.41 points on July 2 [1] - International Yongsheng Group (06663.HK) closed at HKD 0.32 per share, up 20.75%, with a trading volume of 290,000 shares and a turnover of HKD 74,300, showing a volatility of 24.53% [1] - Over the past month, International Yongsheng Group has seen a cumulative decline of 19.7%, and a year-to-date decline of 43.01%, underperforming the Hang Seng Index by 20% [1] Group 2 - As of March 31, 2025, International Yongsheng Group reported total revenue of HKD 401 million, an increase of 8.09% year-on-year, while net profit attributable to shareholders was HKD 3.8288 million, a decrease of 69.63% [1] - The company's gross margin stands at 98.36%, with a debt-to-asset ratio of 20.8% [1] - Currently, there are no institutional investment ratings for International Yongsheng Group [1] Group 3 - The support services industry has an average price-to-earnings (P/E) ratio of 2.26 times, with a median of 3.24 times [1] - International Yongsheng Group has a P/E ratio of 51.1 times, ranking 53rd in the industry [1] - Other companies in the education sector have lower P/E ratios, such as China Science Education Industry (1.4 times), Xiji International Holdings (1.94 times), and New Higher Education Group (2.04 times) [1] Group 4 - International Yongsheng Group has over 10 years of operational history, specializing in various facility services including general security, event and crisis security, manpower support, and facility management [2] - The company employs over 1,000 staff, most of whom are qualified for Class A and Class B security work [2] - Since 2015, the company has been certified under the ISO 9001:2015 quality management system standard [2]

[Company Information](index=2&type=section&id=Company%20Information) [Financial Highlights](index=4&type=section&id=Financial%20Highlights) In FY2025, revenue grew 8.1% to HKD 435 million, but profit before tax and profit for the year sharply declined by 72.0% and 74.0% respectively, reflecting weakened profitability | Metric | FY2025 (HKD Thousands) | FY2024 (HKD Thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 434,527 | 401,994 | +8.1% | | Profit Before Tax | 5,770 | 17,065 | -72.0% | | Profit and Total Comprehensive Income for the Year | 3,555 | 13,658 | -74.0% | | Metric | FY2025 (HKD Thousands) | FY2024 (HKD Thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 11,853 | (30,035) | | Cash and Cash Equivalents at Year-End | 54,696 | 58,631 | | Key Financial Ratios | FY2025 | FY2024 | | :--- | :--- | :--- | | Adjusted Net Profit Margin (%) | 0.8 | 3.4 | | Adjusted Return on Equity (%) | 1.8 | 6.5 | | Interest Coverage Ratio (Times) | 7.8 | 86.8 | | Current Ratio (Times) | 4.5 | 5.5 | [Chairman's Statement](index=5&type=section&id=Chairman%27s%20Statement) Despite economic challenges, the Group achieved 8.1% revenue growth to HKD 434.5 million in FY2025, primarily from guarding and security system services, though profit for the year sharply declined by 74.0% to HKD 3.6 million, with future plans focusing on business expansion and strategic acquisitions | Financial Metric | FY2025 | FY2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | Approx. HKD 434.5 million | Approx. HKD 402.0 million | +8.1% | | Profit and Total Comprehensive Income for the Year | Approx. HKD 3.6 million | Approx. HKD 13.7 million | -74.0% | - The Board recommends a final dividend of **HKD 0.3375 cents per ordinary share** for FY2025, a significant decrease from **HKD 1.20 cents** in the prior year[12](index=12&type=chunk) - Future strategy: The Group aims to expand guarding and security system services, enhance facility management capabilities, improve operational efficiency, and seek strategic acquisition and investment opportunities to become a top integrated facility management service provider in Hong Kong[13](index=13&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Financial Overview](index=7&type=section&id=Business%20Review%20and%20Financial%20Overview) This fiscal year, the Group's total revenue increased by 8.1% to HKD 434.5 million, primarily driven by new contracts in the guarding services segment and the newly launched security system services segment; however, increased employee benefits, consumables, and selling expenses led to a 74.0% decline in profit for the year to HKD 3.6 million, with net profit margin decreasing from 3.4% to 0.8% Revenue Performance by Business Segment (Year Ended March 31) | Business Segment | FY2025 Revenue (HKD Millions) | FY2024 Revenue (HKD Millions) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Guarding Services | 397.5 | 377.0 | +5.4% | | Facility Management Services | 24.8 | 25.0 | -0.9% | | Security System Services | 12.3 | - | N/A (New Business) | | **Total** | **434.5** | **402.0** | **+8.1%** | - Employee benefits expenses increased by **9.2%** year-on-year to **HKD 393.9 million**, primarily due to increased headcount for new service contracts and higher retirement benefit scheme expenses[20](index=20&type=chunk) - As a combined result of the aforementioned factors, profit and total comprehensive income for the year significantly decreased by **74.0%** from **HKD 13.7 million** to **HKD 3.6 million**, with the net profit margin declining from **3.4%** to **0.8%**[28](index=28&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=9&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of March 31, 2025, the Group's financial position showed weakened liquidity, with bank balances and cash decreasing by 25.7% to HKD 54.7 million and the current ratio falling from 5.5 times to 4.5 times; however, the gearing ratio remained low at 1.3%, indicating low debt risk, and the Group had HKD 80 million in bank facilities, of which HKD 39.1 million was utilized Liquidity and Capital Structure Metrics (As of March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Bank Balances and Cash (HKD Millions) | 54.7 | 73.6 | | Net Current Assets (HKD Millions) | 185.2 | 197.3 | | Net Assets (HKD Millions) | 202.8 | 208.9 | | Current Ratio (Times) | 4.5 | 5.5 | | Gearing Ratio (%) | 1.3 | 1.4 | - As of March 31, 2025, the Group had bank facilities up to **HKD 80 million**, of which **HKD 39.1 million** was utilized[30](index=30&type=chunk) [Risk Management](index=10&type=section&id=Risk%20Management) The Group's primary risk exposure is credit risk, particularly concentrated in public sector clients and a single largest customer (a Hong Kong railway company), which accounts for over 30% of trade receivables; directors consider the bad debt risk from public sector clients to be low, and the Group currently does not use any financial instruments to hedge foreign exchange risk - The Group's credit risk is concentrated, with Hong Kong public sector clients accounting for approximately **70.0%** of trade receivables, and a single largest customer (a Hong Kong railway company) accounting for over **30.0%**[32](index=32&type=chunk) - The Group primarily operates in Hong Kong, with transactions, assets, and liabilities mainly denominated in HKD, resulting in minimal foreign exchange exposure and no hedging activities undertaken[31](index=31&type=chunk) [Significant Investments and Future Plans](index=11&type=section&id=Significant%20Investments%20and%20Future%20Plans) This fiscal year, the Group made several investment arrangements, including a prepayment of HKD 4.312 million for a new subsidiary in China and a deposit of HKD 15 million to co-organize a football exhibition match; additionally, new subsidiaries were established in South Korea and China to expand overseas guarding and facility management businesses, with no authorized significant capital asset additions currently planned - The Group prepaid **HKD 4.312 million** (equivalent to RMB 4 million) to establish a new subsidiary in China[38](index=38&type=chunk) - The Group deposited **HKD 15 million** to co-organize a football exhibition match held in Hong Kong in May 2025[38](index=38&type=chunk) - To expand overseas business, the Group established subsidiaries in South Korea and China, investing approximately **HKD 0.56 million** and **RMB 0.6 million** respectively[38](index=38&type=chunk) [Employees and Remuneration Policy](index=11&type=section&id=Employees%20and%20Remuneration%20Policy) As of March 31, 2025, the Group's total number of employees slightly increased to 2,655, with staff costs (including directors' emoluments) for the year approximately HKD 393.9 million, up from HKD 360.7 million in the prior year, and the Group regularly reviews remuneration and awards discretionary bonuses based on performance to attract and retain talent Employee Information | Metric | As of March 31, 2025 | As of March 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 2,655 | 2,631 | | Staff Costs (HKD Millions) | 393.9 | 360.7 | [Use of Proceeds from Listing](index=12&type=section&id=Use%20of%20Proceeds%20from%20Listing) As of March 31, 2025, the Group had utilized approximately HKD 26.3 million of the net proceeds from the GEM listing, with approximately HKD 5.7 million remaining unutilized; due to unsuccessful bids for new facility management service tenders and cost-effective completion of IT upgrades, the Board decided to defer the use of unutilized funds originally designated for machinery and IT infrastructure upgrades by 12 months, expecting full utilization by March 31, 2026 Use of GEM Listing Proceeds (As of March 31, 2025) | Purpose | Actual Net Proceeds (HKD Thousands) | Amount Utilized (HKD Thousands) | Unutilized Amount (HKD Thousands) | | :--- | :--- | :--- | :--- | | Expansion of Security Services Business | 14,200 | 14,200 | – | | Enhancement of Facility Management Service Capabilities | 5,100 | 1,000 | 4,100 | | Improvement of Operational Efficiency and Scalability | 5,000 | 3,394 | 1,606 | | Repayment of Outstanding Bank Loans | 4,500 | 4,500 | – | | General Working Capital | 3,200 | 3,200 | – | | **Total** | **32,000** | **26,294** | **5,706** | - The Board decided to defer the utilization of the unutilized net proceeds of **HKD 5.706 million** by 12 months, with full utilization expected by March 31, 2026[49](index=49&type=chunk) [Directors and Senior Management](index=15&type=section&id=Directors%20and%20Senior%20Management) This section details the backgrounds and qualifications of the company's Board members and senior management team, with executive directors primarily from the Ma family responsible for overall strategy and management, independent non-executive directors providing oversight and independent advice with professional backgrounds in policing, accounting, and law, and senior management possessing extensive experience in security services, property management, and finance, overseeing daily operations - The Executive Board comprises Mr. Ma Kiu Sang (Chairman), Mr. Ma Kiu Mo, Mr. Ma Kiu Man, and Mr. Ma Yung King, primarily responsible for the Group's overall corporate and business strategy formulation[51](index=51&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk)[58](index=58&type=chunk) - Independent Non-Executive Directors include Dr. Ng Ka Sing (former Assistant Commissioner of Police), Ms. Cheng Wai Ha (practicing accountant), and Mr. Yau Siu Yeung (solicitor), providing professional oversight and independent advice to the Group[60](index=60&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - Senior management, led by CEO Mr. Choi Ming Fai, comprises team members with over **10 to 20 years** of industry experience in operations, business development, property management, human resources, and finance[65](index=65&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk)[71](index=71&type=chunk) [Corporate Governance Report](index=22&type=section&id=Corporate%20Governance%20Report) [Corporate Governance Practices and the Board](index=22&type=section&id=Corporate%20Governance%20Practices%20and%20the%20Board) The Company has adopted and complied with all applicable provisions of the Corporate Governance Code, with a seven-member Board comprising four executive and three independent non-executive directors ensuring power balance, and the roles of Chairman (Mr. Ma Kiu Sang) and Chief Executive Officer (Mr. Choi Ming Fai) are separate; the Board is committed to diversity and ensuring all directors participate in continuous professional development, with all directors attending all seven Board meetings held during the year - For the year ended March 31, 2025, the Company complied with all applicable code provisions of the Corporate Governance Code[75](index=75&type=chunk) - The Board comprises **4 Executive Directors** and **3 Independent Non-Executive Directors**, with the roles of Chairman and Chief Executive Officer held by different individuals to ensure power balance[77](index=77&type=chunk)[80](index=80&type=chunk) - The Company has adopted a Board Diversity Policy, with one female director currently on the Board, and will continue to gradually increase the proportion of female members[86](index=86&type=chunk) Board Meeting Attendance Record (FY2025) | Director Name | Position | Meetings Attended/Total Meetings | | :--- | :--- | :--- | | Mr. Ma Kiu Sang | Executive Director | 7/7 | | Mr. Ma Kiu Mo | Executive Director | 7/7 | | Mr. Ma Kiu Man | Executive Director | 7/7 | | Mr. Ma Yung King | Executive Director | 7/7 | | Dr. Ng Ka Sing | Independent Non-Executive Director | 7/7 | | Ms. Cheng Wai Ha | Independent Non-Executive Director | 7/7 | | Mr. Yau Siu Yeung | Independent Non-Executive Director | 7/7 | [Board Committees](index=27&type=section&id=Board%20Committees) The Company has established four Board committees: Audit, Remuneration, Nomination, and Risk Management; the Audit Committee, composed of three independent non-executive directors, oversees financial reporting, internal controls, and audit processes; the Remuneration Committee sets compensation policies for directors and senior management; the Nomination Committee reviews Board structure and composition; and the Risk Management Committee supervises the Group's risk management framework - The Audit Committee, comprising **three Independent Non-Executive Directors** and chaired by Ms. Cheng Wai Ha, held **six meetings** during the year, reviewing quarterly, interim, and annual results, and deemed the annual financial results properly disclosed[94](index=94&type=chunk)[95](index=95&type=chunk) - The Remuneration Committee, comprising **three Independent Non-Executive Directors** and chaired by Mr. Yau Siu Yeung, reviewed and approved the remuneration packages for executive directors and senior management during the year[96](index=96&type=chunk)[97](index=97&type=chunk) - The Nomination Committee, comprising **one Executive Director** and **three Independent Non-Executive Directors** and chaired by Mr. Yau Siu Yeung, held **two meetings** during the year, reviewing the Board structure and diversity policy[99](index=99&type=chunk)[103](index=103&type=chunk) - The Risk Management Committee, comprising **two Executive Directors** and **three Independent Non-Executive Directors** and chaired by Dr. Ng Ka Sing, held **one meeting** during the year, overseeing the Group's risk management and internal control systems[106](index=106&type=chunk) [Risk Management and Internal Control](index=32&type=section&id=Risk%20Management%20and%20Internal%20Control) Although the Group lacks an internal audit function, it fulfills related responsibilities by engaging external consultants and Board oversight; the Group has established comprehensive internal control policies and engaged an independent professional firm to review their effectiveness, which the Board deems effective, and has also implemented an anti-corruption policy and whistleblowing mechanism, with no related legal proceedings during the year - The Group currently does not have an internal audit function but has engaged external consultants to review internal controls, with the Audit Committee reviewing their effectiveness[109](index=109&type=chunk) - The Board believes that for the year ended March 31, 2025, the Group maintained effective internal control measures and engaged an independent professional firm for review[114](index=114&type=chunk) - The Group has established an anti-corruption policy and whistleblowing mechanism, with no corruption-related legal proceedings or significant non-compliance issues identified during the year[110](index=110&type=chunk)[111](index=111&type=chunk) [Shareholder Relations and Communication](index=35&type=section&id=Shareholder%20Relations%20and%20Communication) The Company values communication with shareholders, having adopted a shareholder communication policy and interacting with investors through various channels including annual general meetings, the company website, and announcements; the Company has also formulated a dividend policy, where dividend decisions consider financial performance, retained earnings, and economic conditions, and shareholders may convene extraordinary general meetings and propose resolutions as per the Articles of Association - The Company has adopted a Shareholder Communication Policy to ensure timely and comprehensive information for shareholders, and believes the policy was appropriately implemented during the year[122](index=122&type=chunk) - The Company has adopted a Dividend Policy, and the Board will determine dividend distribution based on various factors including the Company's financial performance, retained earnings, and economic conditions[124](index=124&type=chunk) - According to the Company's Articles of Association, shareholders holding not less than **one-tenth** of the voting share capital may request to convene an extraordinary general meeting[125](index=125&type=chunk) [Directors' Report](index=37&type=section&id=Directors%27%20Report) [Principal Activities, Results and Dividends](index=37&type=section&id=Principal%20Activities%2C%20Results%20and%20Dividends) The Group primarily engages in guarding and facility management services in Hong Kong, with no significant changes in principal activities this year; the Board recommends a final dividend of HKD 0.3375 cents per share for the year ended March 31, 2025, a significant reduction from the prior year, and the report specifies the book closure dates for determining shareholders' eligibility to attend the AGM and receive dividends - The Group's principal activities are providing guarding and facility management services in Hong Kong, with no significant changes during the year[131](index=131&type=chunk) - The Board recommends a final dividend of **HKD 0.3375 cents per share** for FY2025, compared to **HKD 1.20 cents per share** for FY2024[133](index=133&type=chunk) [Continuing Connected Transactions](index=39&type=section&id=Continuing%20Connected%20Transactions) This year, the Group had two major continuing connected transactions: a master service agreement with companies controlled by the controlling shareholder Ma family for security and facility management services, totaling approximately HKD 20 million, and a framework agreement with a company controlled by Mr. Li Man Ho, a connected person at the subsidiary level, for security system services, totaling approximately HKD 11 million, with independent non-executive directors and auditors confirming compliance for both transactions - The Group entered into a master service agreement with companies controlled by the controlling shareholder Ma family to provide security and facility management services, with related transaction amounts approximately **HKD 20 million** for the year ended March 31, 2025[145](index=145&type=chunk)[147](index=147&type=chunk) - The Group entered into a framework agreement with a company controlled by Mr. Li Man Ho, a connected person at the subsidiary level, to provide security system services, with related transaction amounts approximately **HKD 11 million** for the year ended March 31, 2025[148](index=148&type=chunk)[150](index=150&type=chunk) - The Independent Non-Executive Directors and the Company's auditor reviewed the aforementioned continuing connected transactions, confirming they were conducted on normal commercial terms, in the overall interest of shareholders, and within annual caps[151](index=151&type=chunk) [Major Customers and Suppliers](index=42&type=section&id=Major%20Customers%20and%20Suppliers) This year, the Group experienced high customer concentration, with the top five customers accounting for 80.6% of total revenue and the largest customer contributing 52.2%; due to the nature of its business, the Group has no major suppliers, and no directors, their close associates, or major shareholders held any interests in the top five customers - High customer concentration: The **top five customers** accounted for **80.6%** of total revenue, with the **largest customer** contributing **52.2%**[153](index=153&type=chunk) - Due to the nature of its business, the Group has no major suppliers[154](index=154&type=chunk) [Key Risks and Uncertainties](index=42&type=section&id=Key%20Risks%20and%20Uncertainties) The Group faces key risks including high business reliance on contracts with railway companies and the Hong Kong government, where non-renewal could adversely impact performance; changes in industry regulations, standards, and technological innovations may affect operations; and fluctuations in Hong Kong's economic, social, and political environment could also pose risks to results - Business risk: A significant portion of the Group's revenue derives from contracts with railway companies and the Hong Kong government, and failure to maintain relationships or renew contracts would adversely affect business[158](index=158&type=chunk) - Industry risk: Changes in regulations, industry standards, and technological innovations related to guarding and facility management services may impact the Group's operations[159](index=159&type=chunk) - Macroeconomic risk: Hong Kong's economic conditions and socio-political environment may affect the Group's performance and financial position[160](index=160&type=chunk) [Directors' and Interests Disclosure](index=44&type=section&id=Directors%27%20and%20Interests%20Disclosure) The report details directors' share interests in the Company and its associated corporations, with Messrs. Ma Kiu Sang, Ma Kiu Mo, and Ma Kiu Man, as parties acting in concert, collectively deemed to hold 70.0% of the Company's shares; during the reporting period, no share options were exercised by directors or chief executives, nor did the Company purchase, sell, or redeem any listed securities - Pursuant to the Deed of Confirmation of Acting in Concert, Mr. Ma Kiu Sang, Mr. Ma Kiu Mo, and Mr. Ma Kiu Man are deemed to be parties acting in concert, collectively holding interests in **560,000,000 shares**, representing **70.0%** of the Company's issued share capital[182](index=182&type=chunk) - The substantial shareholder, International Wing Sang BVI, beneficially owns **560,000,000 shares**, representing **70.0%** of the issued share capital[189](index=189&type=chunk) - No share options have been granted since the adoption of the share option scheme[193](index=193&type=chunk)[397](index=397&type=chunk) - For the year ended March 31, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[197](index=197&type=chunk) [Environmental, Social and Governance Report](index=54&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) [Report Overview and Governance](index=54&type=section&id=ESG%20Report%20Overview%20and%20Governance) This ESG report covers April 1, 2024, to March 31, 2025, prepared in accordance with the HKEX ESG Reporting Guide, with the Board bearing ultimate responsibility for overseeing ESG strategy and risk management; through stakeholder engagement and materiality assessment, the Group identified employment and labor practices (e.g., compliant employment, health and safety) and operating practices (e.g., business ethics, customer privacy) as the most material ESG issues - The Board bears primary responsibility for overseeing the implementation, review, and reporting of the Group's environmental, social, and governance strategies, as well as identifying and assessing related risks[220](index=220&type=chunk) - Through materiality assessment, the Group identified key ESG issues including: compliant employment, remuneration and benefits, occupational health and safety, business ethics, and protection of customer privacy[225](index=225&type=chunk) [Environmental Protection](index=57&type=section&id=Environmental%20Protection) As a service-oriented enterprise, the Group's environmental impact primarily stems from vehicle emissions and office resource consumption; the Group reduces emissions and resource consumption through measures such as regular vehicle maintenance, adopting energy-efficient equipment (e.g., LED lights), setting air conditioning temperatures, and encouraging green office practices (e.g., double-sided printing), and has obtained ISO14001:2015 environmental management system certification and developed measures to address extreme weather events like typhoons - The Group strictly complies with Hong Kong environmental regulations, with primary emission sources being vehicle exhaust and general waste and domestic wastewater generated from offices[226](index=226&type=chunk)[228](index=228&type=chunk) - To conserve resources, the Group has implemented various energy and water-saving measures, such as using LED lighting, maintaining indoor temperatures at **25.5 degrees Celsius**, and encouraging employees to use public transportation[229](index=229&type=chunk)[230](index=230&type=chunk) - The Group has obtained **ISO14001:2015** environmental management system certification and established work arrangements for adverse weather to address climate change risks[232](index=232&type=chunk)[233](index=233&type=chunk) [Employment and Labor Practices](index=60&type=section&id=Employment%20and%20Labor%20Practices) The Group strictly adheres to labor laws, implements equal opportunity and non-discrimination policies, and prevents child labor through ID verification; it offers competitive remuneration and benefits with a performance appraisal system, and in terms of health and safety, has established an occupational safety and health policy, provides safety training and personal protective equipment, and records and handles work-related accidents, with 11 such cases this year, a decrease from last year - The Group complies with labor regulations such as the Employment Ordinance, implements equal opportunity and anti-discrimination policies, and strictly prohibits child and forced labor[234](index=234&type=chunk)[235](index=235&type=chunk) - The Group is committed to providing a safe working environment, complying with the Occupational Safety and Health Ordinance, and providing employees with safety training and personal protective equipment[239](index=239&type=chunk)[241](index=241&type=chunk) Work Injury Data (Past Three Years) | Metric | 2024/25 | 2023/24 | 2022/23 | | :--- | :--- | :--- | :--- | | Number of Work-Related Fatalities | 0 | 0 | 0 | | Number of Work Injuries | 11 | 20 | 18 | | Lost Workdays Due to Work Injuries (Days) | 62 | 184 | 301 | - The Group encourages employee development by providing internal training, education allowances, and tuition subsidies to enhance their professional knowledge and skills[242](index=242&type=chunk) [Operating Practices](index=63&type=section&id=Operating%20Practices) In operations, the Group prioritizes local suppliers with environmental certifications; to ensure service quality, it strictly adheres to industry regulations and has obtained ISO9001:2015 quality management system certification; the Group provides various channels, including a 24-hour hotline, for customer complaints and strictly complies with privacy ordinances to protect customer data; furthermore, the Group has established a stringent anti-corruption policy and whistleblowing mechanism, with no related legal proceedings during the year - The Group prioritizes local suppliers with environmental certifications in supply chain management and conducts reviews for new suppliers[244](index=244&type=chunk) - To ensure service quality, the Group has obtained **ISO9001:2015** Quality Management System certification and established a customer complaint handling policy[245](index=245&type=chunk)[246](index=246&type=chunk) - The Group strictly complies with the Personal Data (Privacy) Ordinance, protecting customer and employee privacy, and respects intellectual property rights[247](index=247&type=chunk)[248](index=248&type=chunk) - The Group is committed to ethical operations, having established an anti-corruption policy and whistleblowing mechanism, with no corruption-related legal proceedings during the year, and provided **8 hours** of anti-corruption training for directors[250](index=250&type=chunk)[251](index=251&type=chunk) [Community Investment](index=65&type=section&id=Community%20Investment) The Group actively fulfills its social responsibilities by participating in community activities to give back to society; during the year, it sponsored a community Chinese New Year reunion dinner, donating HKD 25,000 and inviting elderly individuals to attend for free, and is also committed to providing employment opportunities for vulnerable groups and encouraging employee volunteerism to promote social inclusion and economic empowerment - During the year, the Group sponsored a community Chinese New Year reunion dinner, donating **HKD 25,000** and inviting **20 elderly individuals aged 70 and above** to attend for free[252](index=252&type=chunk) - The Group is committed to providing employment opportunities for vulnerable groups and encourages employee volunteer work to give back to the community[252](index=252&type=chunk) [Independent Auditor's Report](index=72&type=section&id=Independent%20Auditor%27s%20Report) Deloitte Touche Tohmatsu, the independent auditor, issued an unmodified opinion on the Group's consolidated financial statements, deeming them to present fairly the Group's financial position as of March 31, 2025, and its financial performance for the year, prepared in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance; the report identified 'Revenue Recognition for Guarding Services' as a key audit matter and detailed the audit procedures performed for it - The auditor believes that the consolidated financial statements fairly present the Group's consolidated financial position, performance, and cash flows in accordance with Hong Kong Financial Reporting Standards, and have been properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance[263](index=263&type=chunk) - A key audit matter identified is 'Revenue Recognition for Guarding Services' due to its significant impact on the financial statements; for the year ended March 31, 2025, this revenue amounted to **HKD 397.5 million**, representing **91%** of total revenue[267](index=267&type=chunk)[268](index=268&type=chunk) - Procedures performed by the auditor included: understanding and testing key controls over revenue recognition, sampling service contracts and invoices, comparing recognized revenue to expected amounts, and performing analytical review of revenue[269](index=269&type=chunk) [Consolidated Financial Statements](index=77&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=77&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the year ended March 31, 2025, the Group's revenue was HKD 434.5 million, an 8.1% year-on-year increase; however, due to increased employee benefits and other operating expenses, profit before tax significantly decreased to HKD 5.77 million, and profit and total comprehensive income for the year was HKD 3.555 million, a 74.0% year-on-year decrease, with basic earnings per share at HKD 0.52 cents Consolidated Statement of Profit or Loss Summary (Year Ended March 31) | Item (HKD Thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 434,527 | 401,994 | | Employee Benefits Expenses | (393,926) | (360,680) | | Other Operating Expenses | (17,512) | (15,838) | | Profit Before Tax | 5,770 | 17,065 | | Income Tax Expense | (2,215) | (3,407) | | **Profit and Total Comprehensive Income for the Year** | **3,555** | **13,658** | | Profit Attributable to Owners of the Company | 4,149 | 13,663 | | Basic Earnings Per Share (HKD Cents) | 0.52 | 1.71 | [Consolidated Statement of Financial Position](index=78&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, the Group's total assets were HKD 256 million, total liabilities HKD 53.26 million, and net assets HKD 202.8 million, a slight decrease from the prior year; net current assets were HKD 185.2 million, and equity attributable to owners of the Company within capital and reserves was HKD 203.4 million Consolidated Statement of Financial Position Summary (As of March 31) | Item (HKD Thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Non-current Assets** | **18,119** | **13,165** | | **Current Assets** | **237,965** | **241,577** | | Trade and Other Receivables and Deposits | 180,196 | 165,133 | | Bank Balances and Cash | 54,696 | 58,631 | | **Current Liabilities** | **52,776** | **44,260** | | **Net Current Assets** | **185,189** | **197,317** | | **Net Assets** | **202,820** | **208,865** | | **Total Equity** | **202,820** | **208,865** | [Consolidated Statement of Cash Flows](index=80&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) This year, the Group's cash flow from operating activities significantly improved from a net outflow of HKD 30.03 million to a net inflow of HKD 11.85 million; net cash used in investing activities was HKD 3.81 million, and net cash used in financing activities was HKD 11.98 million, primarily for dividend payments, resulting in a net decrease of HKD 3.935 million in cash and cash equivalents at year-end to HKD 54.7 million Consolidated Statement of Cash Flows Summary (Year Ended March 31) | Item (HKD Thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash From (Used In) Operating Activities | 11,853 | (30,035) | | Net Cash Used In Investing Activities | (3,808) | (17,826) | | Net Cash Used In Financing Activities | (11,980) | (13,688) | | **Net Decrease in Cash and Cash Equivalents** | **(3,935)** | **(61,549)** | | Cash and Cash Equivalents at Beginning of Year | 58,631 | 120,180 | | **Cash and Cash Equivalents at End of Year** | **54,696** | **58,631** | [Financial Summary](index=121&type=section&id=Financial%20Summary) This section provides a summary of the Group's key financial data for the past five fiscal years, showing that FY2025 revenue (HKD 434.5 million), while higher than 2024 and 2023, was significantly lower than the 2022 peak, and profit for the year (HKD 3.56 million) was the lowest in five years, with total assets and total equity remaining relatively stable over the past two years Five-Year Financial Performance Summary (Year Ended March 31, HKD Thousands) | Metric | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 434,527 | 401,994 | 392,496 | 537,371 | 365,833 | | Profit Before Tax | 5,770 | 17,065 | 21,425 | 71,783 | 72,806 | | Profit for the Year | 3,555 | 13,658 | 17,645 | 56,569 | 66,212 | Five-Year Assets, Liabilities and Equity Summary (As of March 31, HKD Thousands) | Metric | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 256,084 | 254,742 | 246,011 | 292,907 | 251,719 | | Total Liabilities | (53,264) | (45,877) | (38,809) | (60,150) | (49,531) | | Total Equity | 202,820 | 208,865 | 207,202 | 232,757 | 202,188 |

Financial Performance - Total revenue for the year ended March 31, 2025, was HKD 434,527,000, representing an increase of 8.1% from HKD 401,994,000 in 2024[2] - The net profit for the year was HKD 3,555,000, a decrease of 74.0% compared to HKD 13,658,000 in the previous year[3] - Basic earnings per share for 2025 was HKD 0.52, down from HKD 1.71 in 2024, reflecting a decline of 69.5%[3] - The company reported a total comprehensive income of HKD 3,555,000 for the year, down from HKD 13,658,000 in 2024, indicating a significant drop in overall performance[3] - The company reported a pre-tax profit of HKD 5,770,000 for the year ended March 31, 2025, down from HKD 17,065,000 in 2024, reflecting a decline of 66.1%[12] - Basic earnings attributable to the company's owners for 2025 were HKD 4,149,000, a decrease of 69.6% compared to HKD 13,663,000 in 2024[17] - Net profit and total comprehensive income decreased by approximately HKD 10.1 million or 74.0% to about HKD 3.6 million for the fiscal year ending March 31, 2025, with a net profit margin dropping from approximately 3.4% to 0.8%[37] Revenue Breakdown - The revenue from general security services was HKD 179,335,000, slightly down from HKD 180,240,000 in the previous year, representing a decrease of 0.5%[9] - The revenue from manpower support services increased significantly to HKD 217,862,000, up 10.8% from HKD 196,552,000 in 2024[9] - The security services segment generated revenue of approximately HKD 397.5 million, an increase of about HKD 20.5 million or 5.4% from approximately HKD 377.0 million in the previous year[27] - The facilities management services segment's revenue decreased by approximately HKD 0.2 million or 0.9% to about HKD 24.8 million for the year ending March 31, 2025, down from approximately HKD 25.0 million[28] - The security systems services segment generated revenue of approximately HKD 12.3 million for the year ending March 31, 2025, marking the company's entry into this segment[29] Assets and Liabilities - Total assets decreased to HKD 237,965,000 in 2025 from HKD 241,577,000 in 2024, a reduction of 1.3%[4] - Current liabilities increased to HKD 52,776,000 in 2025 from HKD 44,260,000 in 2024, an increase of 19.5%[4] - Non-current assets decreased significantly from HKD 2,402,000 in 2024 to HKD 1,344,000 in 2025, a decline of 44.2%[4] - The company’s total equity decreased to HKD 202,820,000 in 2025 from HKD 208,865,000 in 2024, a decrease of 2.9%[5] Expenses - Employee benefits expenses rose to HKD 393,926,000 in 2025 from HKD 360,680,000 in 2024, an increase of 9.2%[2] - The total operating expenses for 2025 were HKD 393,926,000, an increase of 9.2% from HKD 360,680,000 in 2024[14] - Other income decreased to HKD 914,000 in 2025 from HKD 2,039,000 in 2024, a decline of 55.2%[13] - The company incurred financing costs of HKD 847,000 in 2025, compared to HKD 199,000 in 2024, indicating a significant increase[14] - Sales and marketing expenses rose by approximately HKD 1.0 million or 47.2% to about HKD 3.0 million for the fiscal year ending March 31, 2025, primarily due to increased advertising and sponsorship expenses[32] - Other operating expenses increased by approximately HKD 1.7 million or 10.6% to about HKD 17.5 million for the fiscal year ending March 31, 2025, driven by higher legal and professional fees[34] Employee Information - As of March 31, 2025, the group had 2,655 employees, an increase from 2,631 employees as of March 31, 2024[51] - Employee costs, including director remuneration, amounted to approximately HKD 393.9 million for the year ending March 31, 2025, compared to HKD 360.7 million for the previous year, reflecting an increase of about 9%[51] - The company's accrued employee costs increased to HKD 42,646 thousand in 2025 from HKD 39,019 thousand in 2024, reflecting a rise of approximately 4.2%[22] Financial Position and Investments - The total borrowings of the group as of March 31, 2025, were approximately HKD 2.6 million, down from HKD 3.0 million as of March 31, 2024, with a debt-to-equity ratio of 1.3%[39] - The group has capital expenditures of approximately HKD 707,000 related to the acquisition of factories and equipment as of March 31, 2025, with no such expenditures reported in 2024[50] - The group plans to delay the use of unutilized proceeds for purchasing machinery and upgrading IT infrastructure by 12 months, now expected to be utilized by March 31, 2026[59] - The group has received net proceeds of approximately HKD 32.0 million from its GEM listing after deducting listing expenses[54] - The group has utilized approximately HKD 26.3 million of the net proceeds from its GEM listing as of March 31, 2025, leaving HKD 5.7 million unutilized[60] Corporate Governance - The board believes that sound corporate governance practices are essential for safeguarding shareholder interests and enhancing corporate value[84] - The company has adopted the principles and code provisions of the Corporate Governance Code as the basis for its corporate governance practices[85] - The audit committee has been established in accordance with the relevant listing rules and corporate governance codes, consisting of three independent non-executive directors[89] - The audit committee reviewed the consolidated financial statements for the year ending March 31, 2025, and confirmed compliance with applicable accounting standards and regulations[90] - The company confirmed compliance with the Corporate Governance Code during the fiscal year ending March 31, 2025[85] Shareholder Information - The company has a total of 800,000,000 shares issued as of March 31, 2025[66] - Major shareholders, including Mr. Ma Qiaosheng, Mr. Ma Qiaowu, and Mr. Ma Qiaowen, each hold 560,000,000 shares, representing 70.0% ownership[65] - The company is controlled by International Yongsheng BVI, which is owned 33.34% by Senye, a company fully owned by Mr. Ma Qiaosheng[68] - The shareholding structure reflects a high concentration of ownership among a few key individuals[65] - The board proposed a final dividend of HKD 0.3375 per ordinary share for the fiscal year ending March 31, 2025, compared to HKD 1.20 per share for the previous year[79] - The annual general meeting is scheduled for September 12, 2025, where shareholders will vote on the proposed final dividend[78] Future Plans and Strategies - The group aims to expand its customer base in China and overseas markets while implementing effective cost control measures to enhance economic efficiency and sustain long-term business growth[53] - The group plans to enhance its facility management service capabilities by purchasing machinery and equipment worth HKD 4.1 million, expected to be utilized by March 31, 2026[55] - The group aims to expand its security services business, improve operational efficiency, and selectively seek strategic acquisitions and investment opportunities[94] - The group has established a strategy to monitor uncertainties affecting business operations and adjust its business strategies accordingly[53] Miscellaneous - The company has implemented new accounting standards which did not have a significant impact on the financial position for the year[8] - There were no share buybacks or sales of listed securities by the company or its subsidiaries for the fiscal year ending March 31, 2025[82] - The company has maintained the required public float as per listing rules[88] - There were no known tax exemptions or reliefs provided to shareholders for holding the company's securities[77] - The company has disclosed no other directors or senior management with interests in the company's shares as of March 31, 2025[69] - The company will suspend share transfer registration from September 9 to September 12, 2025, to determine the eligibility of shareholders attending the annual general meeting[80] - A new subsidiary, IWS (Korea) Company Limited, was established in South Korea with a registered capital of 100,000,000 KRW (approximately HKD 560,000)[92] - The group plans to enhance its transparency and corporate image to capture opportunities in the Hong Kong security services and facility management market[94]

Revenue Performance - The company's revenue increased by approximately HKD 6.0 million or 3.0% from about HKD 198.8 million for the six months ended September 30, 2023, to about HKD 204.8 million for the six months ended September 30, 2024[10]. - Revenue from the security services segment rose by approximately HKD 6.3 million or 3.4% from about HKD 186.2 million to about HKD 192.5 million during the same period[11]. - Revenue from facilities management services decreased by approximately HKD 0.2 million or 2.0% from about HKD 12.6 million to about HKD 12.3 million due to the termination of cleaning service contracts[12]. - Revenue for the six months ended September 30, 2024, was HKD 204,819,000, an increase of 3.5% compared to HKD 198,800,000 for the same period in 2023[90]. - The revenue from manpower support services increased significantly to HKD 107,214,000, up from HKD 94,840,000, marking a growth of about 13.04%[108]. - The revenue from general security services decreased to HKD 85,192,000 from HKD 91,317,000, a decline of approximately 6.00%[108]. - Total revenue for the six months ended September 30, 2024, was HKD 204,819,000, compared to HKD 198,800,000 for the same period in 2023, representing an increase of approximately 3.5%[113]. Profitability and Income - Profit and total comprehensive income for the period decreased by approximately HKD 5.1 million or 49.1% from about HKD 10.4 million to about HKD 5.3 million[18]. - The net profit margin decreased from approximately 5.2% for the six months ended September 30, 2023, to about 2.6% for the six months ended September 30, 2024[18]. - The company reported a profit before tax of HKD 6,819,000, down 45.6% from HKD 12,543,000 in the previous year[90]. - Total comprehensive income for the period was HKD 5,290,000, a decrease of 49.1% from HKD 10,391,000 in the prior year[90]. - Basic earnings per share for the period was HKD 0.67, down from HKD 1.30 in the same period last year, representing a decline of 48.5%[90]. - The total comprehensive income for the six months ended September 30, 2024, was HKD 5,349,000, down from HKD 10,391,000 for the same period in 2023, representing a decline of approximately 48.6%[120]. Expenses and Costs - Employee benefits expenses increased by approximately HKD 12.6 million or 7.3% from about HKD 173.5 million to about HKD 186.1 million, primarily due to an increase in the workforce following the resumption of cross-border travel between Hong Kong and mainland China[13]. - Tax expenses decreased by approximately HKD 0.6 million or 28.9% from about HKD 2.2 million to about HKD 1.5 million, mainly due to a reduction in taxable profits[17]. - Subcontracting costs decreased by approximately HKD 1.6 million or 35.4% from about HKD 4.6 million to about HKD 3.0 million due to a reduction in the number of subcontracted services[15]. - Other operating expenses remained relatively stable, decreasing by approximately HKD 0.1 million or 0.9% from about HKD 8.0 million to about HKD 7.9 million[16]. - Sales and marketing expenses remained stable at HKD 1.0 million for both periods[14]. - The company incurred financing costs of HKD 89,000 for the six months ended September 30, 2024, compared to HKD 87,000 for the same period in 2023, showing a slight increase[113]. - The company reported a loss on impairment of financial assets of HKD 26,000 for the six months ended September 30, 2024, compared to a loss of HKD 110,000 for the same period in 2023[113]. Cash Flow and Financial Position - As of September 30, 2024, the group's bank balance and cash decreased to approximately HKD 19.3 million, down by about HKD 54.3 million or 73.8% from HKD 73.6 million on March 31, 2024[21]. - The current ratio as of September 30, 2024, was approximately 4.5 times, compared to 5.5 times on March 31, 2024[21]. - Trade receivables and unverified income increased to approximately HKD 210.2 million as of September 30, 2024, from HKD 158.3 million on March 31, 2024[27]. - The remaining performance guarantee deposits amounted to approximately HKD 78.3 million as of September 30, 2024, compared to HKD 56.7 million on March 31, 2024[30]. - The group employed 2,811 employees as of September 30, 2024, an increase from 2,631 employees on March 31, 2024[41]. - Employee costs for the six months ended September 30, 2024, were approximately HKD 186.1 million, compared to HKD 173.5 million for the same period in 2023[41]. - As of September 30, 2024, the total borrowings were approximately HKD 2.3 million, down from HKD 3.0 million on March 31, 2024[21]. - The debt-to-equity ratio as of September 30, 2024, was 1.1%, compared to 1.4% on March 31, 2024[21]. - Current assets increased to HKD 244,451,000 from HKD 241,577,000 as of March 31, 2024[92]. - Current liabilities were HKD 54,582,000, up from HKD 44,260,000 as of March 31, 2024, indicating a rise of 23.4%[92]. - The cash and cash equivalents at the end of the period were HKD 19,315,000, a decrease from HKD 65,240,000 at the end of the previous year, reflecting a decline of approximately 70.49%[97]. - The net cash used in operating activities for the six months ended September 30, 2024, was HKD 53,735,000, compared to HKD 33,835,000 in the same period of 2023, indicating a significant increase in cash outflow[97]. Shareholding and Governance - As of September 30, 2024, the company has a total of 800,000,000 issued shares[50]. - Major shareholders, including International Yongsheng BVI, hold 560,000,000 shares, representing 70.0% of the company's issued share capital[58]. - The company's directors, including Mr. Ma Qiaosheng, Mr. Ma Qiaowu, and Mr. Ma Qiaowen, each hold 560,000,000 shares, also accounting for 70.0% of the issued share capital[58]. - The ownership structure indicates that Mr. Ma Qiaosheng has a controlling interest through his wholly-owned company, Senye Assets Holdings Limited[48]. - The same ownership structure applies to Mr. Ma Qiaowu and Mr. Ma Qiaowen through their respective companies, Wenhua and Jianqiao[49]. - The company has disclosed that there are no other directors or senior management holding any shares or related securities as of September 30, 2024[57]. - The company is governed under the Securities and Futures Ordinance, ensuring compliance with relevant regulations regarding shareholding disclosures[48]. - The directors are considered concert parties under the Securities and Futures Ordinance, which affects their shareholding disclosures[53]. - The company maintains a significant concentration of ownership among its major shareholders, which may impact governance and decision-making[58]. - The report highlights the importance of transparency in shareholding structures to comply with regulatory requirements[51]. - The company has adopted the principles and code provisions of the corporate governance code as of September 30, 2024[72]. - The board believes that the company has complied with the corporate governance code during the six months ended September 30, 2024[73]. - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements for the six months ended September 30, 2024[82]. - There were no conflicts of interest reported among directors or major shareholders in relation to the company's business[77]. Future Plans and Utilization of Proceeds - The group plans to expand its security services and improve operational efficiency to become a leading integrated facilities management service provider in Hong Kong[43]. - The company plans to utilize the unutilized net proceeds for purchasing machinery and upgrading IT infrastructure by March 31, 2025[69]. - The company has utilized approximately HKD 26.1 million of the net proceeds from the GEM listing as of September 30, 2024[69]. - The total net proceeds from the GEM listing amounted to approximately HKD 32.0 million, with HKD 5.9 million remaining unutilized as of September 30, 2024[66]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended September 30, 2024[71]. - No interim dividend has been recommended for the six months ended September 30, 2024[70]. - The company has not granted or agreed to grant any share options under the share option scheme as of September 30, 2024[64]. - The company has incurred costs related to hiring security personnel and purchasing patrol vehicles, totaling HKD 14.2 million, which has been fully utilized[66]. - The company has upgraded its IT infrastructure in a cost-effective manner, impacting the planned purchase of machinery and equipment[69]. Asset Management - Non-current assets as of September 30, 2024, totaled HKD 15,571,000, an increase from HKD 13,165,000 as of March 31, 2024[92]. - The company’s trade and other receivables and deposits totaled HKD 222,783,000 as of September 30, 2024, compared to HKD 165,133,000 as of March 31, 2024, reflecting an increase of approximately 34.8%[128]. - The company acquired property, plant, and equipment amounting to HKD 109,000 during the reporting period, a significant decrease from HKD 1,817,000 in the same period last year[122]. - The group generated revenue of HKD 10,202,000 from providing security and facility management services to companies controlled by Mr. Ma Qiaosheng, Mr. Ma Qiaowu, and Mr. Ma Qiaowen during the interim period, compared to HKD 9,993,000 for the six months ended September 30, 2023[135].

Revenue Performance - For the six months ended September 30, 2024, the group's revenue increased by approximately HKD 6.0 million or 3.0% to approximately HKD 204.8 million from approximately HKD 198.8 million for the same period in 2023[11]. - Revenue from the security services segment rose by approximately HKD 6.3 million or 3.4% to approximately HKD 192.5 million, primarily due to a net increase in manpower support services[12]. - Revenue from facilities management services decreased by approximately HKD 0.2 million or 2.0% to approximately HKD 12.3 million, mainly due to the termination of cleaning service contracts[13]. - Total revenue for the six months ended September 30, 2024, was HKD 204,819,000, compared to HKD 198,800,000 for the same period in 2023, representing an increase of approximately 3.5%[114]. - The revenue from general security services decreased to HKD 85,192,000 from HKD 91,317,000, a decline of about 6.2%[109]. - The revenue from manpower support services increased significantly to HKD 107,214,000, up from HKD 94,840,000, marking an increase of approximately 13.04%[109]. Profitability - The total profit and comprehensive income for the six months ended September 30, 2024, decreased by approximately HKD 5.1 million or 49.1% to about HKD 5.3 million from approximately HKD 10.4 million for the six months ended September 30, 2023[19]. - The net profit for the period was HKD 5,290,000, a decrease of 49.1% from HKD 10,391,000 in the previous year[91]. - Basic earnings per share for the period was HKD 0.67, down from HKD 1.30 in the same period last year, representing a decline of 48.5%[91]. - The net profit margin dropped from approximately 5.2% for the six months ended September 30, 2023, to about 2.6% for the six months ended September 30, 2024[19]. - The total comprehensive income for the six months ended September 30, 2024, was HKD 5,349,000, down from HKD 10,391,000 for the same period in 2023, representing a decline of approximately 48.6%[121]. Expenses and Costs - Employee benefits expenses increased by approximately HKD 12.6 million or 7.3% to approximately HKD 186.1 million, attributed to an increase in the total number of employees due to the resumption of cross-border travel between Hong Kong and mainland China[14]. - Subcontracting costs decreased by approximately HKD 1.6 million or 35.4% to approximately HKD 3.0 million, mainly due to a reduction in the number of subcontracted services[16]. - The company reported a decrease in employee benefit expenses to HKD 186,130,000 from HKD 173,516,000 in the previous year, reflecting a rise of 7.5%[91]. - The company incurred financing costs of HKD 89,000 for the period, compared to HKD 87,000 for the same period in 2023, showing a slight increase[114]. - The company’s depreciation expense for property, plant, and equipment was HKD 580,000 for the period, up from HKD 418,000 for the same period in 2023, indicating an increase of approximately 38.7%[118]. Cash Flow and Financial Position - As of September 30, 2024, the group's bank balances and cash decreased by approximately HKD 54.3 million or 73.8% to about HKD 19.3 million from approximately HKD 73.6 million as of March 31, 2024[22]. - The current ratio as of September 30, 2024, was approximately 4.5 times, down from about 5.5 times as of March 31, 2024[22]. - The net cash used in operating activities for the six months ended September 30, 2024, was HKD 53,735,000, compared to HKD 33,835,000 in the same period in 2023, indicating a significant increase in cash outflow[98]. - The cash and cash equivalents at the end of the period were HKD 19,315,000, down from HKD 65,240,000 at the end of the same period in 2023, a decrease of approximately 70.5%[98]. - Trade receivables and unbilled revenue increased to approximately HKD 210.2 million as of September 30, 2024, from HKD 158.3 million as of March 31, 2024[28]. Shareholder Information - As of September 30, 2024, the company has a total of 800,000,000 issued shares[51]. - Major shareholders, including International Yongsheng BVI, hold 560,000,000 shares, representing approximately 70.0% of the company's issued share capital[59]. - The company's directors, including Mr. Ma Qiaosheng, Mr. Ma Qiaowu, and Mr. Ma Qiaowen, each hold 560,000,000 shares, also accounting for 70.0% of the issued share capital[59]. - The ownership structure indicates that International Yongsheng BVI is fully owned by controlled entities, with each entity holding 70.0% of the shares[59]. - The company has established a unified action agreement among its major shareholders, ensuring coordinated control over their respective holdings[49]. Corporate Governance and Compliance - The board believes that the company has complied with the corporate governance code during the six months ended September 30, 2024[74]. - The company continues to maintain compliance with the Securities and Futures Ordinance regarding the disclosure of interests[49]. - The company has confirmed compliance with the conduct code for securities trading by all directors for the six months ended September 30, 2024[77]. - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements for the six months ended September 30, 2024[83]. Future Plans and Strategic Direction - The group plans to expand its security services and enhance facility management capabilities while selectively seeking strategic acquisition and investment opportunities[44]. - The company plans to utilize the unutilized net proceeds for purchasing machinery and equipment, and upgrading IT infrastructure by March 31, 2025[70]. - The company has made no changes to the intended use of net proceeds as disclosed in the prospectus and listing documents[70]. Dividends and Securities - No interim dividend has been recommended for the six months ended September 30, 2024[71]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended September 30, 2024[72]. - The company did not declare an interim dividend for the six months ended September 30, 2024, compared to HKD 12,000,000 declared for the same period in 2023[120].

[Company Information](index=2&type=section&id=Company%20Information) [Financial Highlights](index=4&type=section&id=Financial%20Highlights) [Financial Highlights](index=4&type=section&id=Financial%20Highlights) This fiscal year saw slight revenue growth, but profit before tax and profit for the year declined, with operating cash flow turning negative, while current assets and net assets remained stable and the gearing ratio remained very low Selected Consolidated Statement of Profit or Loss Items (FY2023/24 vs FY2022/23) | Indicator | FY2024 (HK$'000) | FY2023 (HK$'000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 401,994 | 392,496 | +2.4% | | Profit Before Tax | 17,065 | 21,425 | -20.3% | | Profit and Total Comprehensive Income for the Year | 13,658 | 17,645 | -22.6% | Selected Consolidated Statement of Financial Position Items (as at March 31) | Indicator | 2024 (HK$'000) | 2023 (HK$'000) | | :--- | :--- | :--- | | Non-current Assets | 13,165 | 10,654 | | Current Assets | 241,577 | 235,357 | | Current Liabilities | 44,260 | 38,809 | | Net Assets / Total Equity | 208,865 | 207,202 | Selected Consolidated Statement of Cash Flows Items | Indicator | FY2024 (HK$'000) | FY2023 (HK$'000) | | :--- | :--- | :--- | | Net Cash (Used in) From Operating Activities | (30,035) | 45,474 | | Net Cash (Used in) From Investing Activities | (17,826) | 2,250 | | Net Cash Used in Financing Activities | (13,688) | (44,611) | | Cash and Cash Equivalents at Year End | 58,631 | 120,180 | Key Financial Ratios | Indicator | FY2024 | FY2023 | | :--- | :--- | :--- | | Adjusted Net Profit Margin (%) | 3.4 | 3.8 | | Gearing Ratio (%) | 1.4 | 0.2 | | Current Ratio (times) | 5.5 | 6.1 | | Average Trade Receivables Turnover Days (days) | 119 | 119 | [Chairman's Statement](index=6&type=section&id=Chairman%27s%20Statement) [Chairman's Statement](index=6&type=section&id=Chairman%27s%20Statement) The Chairman's Statement highlights a 2.4% revenue growth in FY2024, primarily from security services, despite a 22.6% decline in profit for the year, with a proposed final dividend of 1.20 HK cents per share and future focus on service expansion and strategic acquisitions - In FY2024, the Group's revenue was approximately **HK$402.0 million**, a **2.4% year-on-year increase**, while profit for the year was approximately **HK$13.7 million**, a **22.6% year-on-year decrease**[486](index=486&type=chunk) - The Board recommended a final dividend of **1.20 HK cents per ordinary share** for FY2024, totaling approximately **HK$9.6 million**[453](index=453&type=chunk) - The Group will focus on expanding security services, enhancing facility management capabilities, improving operational efficiency, and seeking strategic acquisition and investment opportunities in the future[454](index=454&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Financial Overview](index=8&type=section&id=Business%20Review%20and%20Financial%20Overview) The Group, a Hong Kong facility services provider, achieved 2.4% revenue growth to HK$402.0 million in FY2024, primarily from security services, but profit for the year declined 22.6% to HK$13.7 million due to increased employee benefits and reduced COVID-related cost savings, lowering the adjusted net profit margin Revenue Performance by Business Segment (HK$'000) | Business Segment | FY2024 | FY2023 | Growth Rate | | :--- | :--- | :--- | :--- | | Security Services | 377,000 | 368,300 | +2.4% | | Facility Management Services | 25,000 | 24,200 | +3.2% | | **Total** | **402,000** | **392,500** | **+2.4%** | - Employee benefits expenses increased by **10.4% year-on-year** to **HK$360.7 million**, primarily due to increased headcount following the reopening of the Hong Kong-Mainland China border and new service contracts[494](index=494&type=chunk) - Subcontracting costs significantly decreased by **72.5% year-on-year** to **HK$8.1 million**, mainly because COVID-19 related expenses were no longer incurred[498](index=498&type=chunk) - Profit for the year decreased by **22.6%** to **HK$13.7 million**, with the net profit margin falling from **4.5% to 3.4%**; excluding government subsidies, the adjusted net profit margin decreased from **3.8% to 3.4%**[501](index=501&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=10&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group primarily funds operations through internal cash generation, with bank balances, cash, and pledged bank deposits totaling approximately HK$73.6 million as of March 31, 2024, a 38.7% decrease, yet maintaining a strong financial position with a 5.5x current ratio and 1.4% gearing ratio, and low foreign exchange risk Key Financial Position Indicators (as at March 31) | Indicator | 2024 | 2023 | | :--- | :--- | :--- | | Bank Balances, Cash and Pledged Bank Deposits (HK$M) | 73.6 | 120.2 | | Net Current Assets (HK$M) | 197.3 | 196.5 | | Gearing Ratio (%) | 1.4 | 0.2 | | Current Ratio (times) | 5.5 | 6.1 | - The Group has bank facilities with a limit of **HK$95.0 million**, of which **HK$56.7 million** has been utilized[505](index=505&type=chunk) - The Group faces credit concentration risk, with over **80%** of trade receivables from Hong Kong public sector clients or projects, where directors deem the irrecoverable risk low; the largest client and top five clients account for **60%** and over **90%** of trade receivables, respectively[507](index=507&type=chunk)[601](index=601&type=chunk) [Future Strategies and Use of Proceeds from Listing](index=12&type=section&id=Future%20Strategies%20and%20Use%20of%20Proceeds%20from%20Listing) The Group expects continued growth in Hong Kong's security and facility management markets, focusing on client expansion and cost control; of the HK$32.0 million net proceeds from the 2019 GEM listing, HK$25.7 million has been utilized, with the remaining HK$6.3 million for equipment and IT upgrades deferred until March 31, 2025 - Management anticipates the Hong Kong security services market to grow at a CAGR of approximately **7.7%** between 2021 and 2025, with the facility and venue management services market growing at a CAGR of approximately **5.3%** during the same period, presenting growth opportunities for the Group[553](index=553&type=chunk)[556](index=556&type=chunk) Summary of Use of Proceeds from GEM Listing (as at March 31, 2024) | Purpose | Actual Net Proceeds (HK$'000) | Amount Utilized (HK$'000) | Unutilized Amount (HK$'000) | | :--- | :--- | :--- | :--- | | Expansion of Security Services Business | 14,200 | 14,200 | - | | Enhancement of Facility Management Services Capabilities | 5,100 | 1,000 | 4,100 | | Improvement of Operational Efficiency and Scalability | 5,000 | 2,832 | 2,168 | | Repayment of Bank Loans | 4,500 | 4,500 | - | | General Working Capital | 3,200 | 3,200 | - | | **Total** | **32,000** | **25,732** | **6,268** | - The Directors decided to defer the utilization of the unutilized **HK$6.268 million** (primarily for purchasing machinery and equipment and IT upgrades) by 12 months, with full utilization expected by **March 31, 2025**[386](index=386&type=chunk) [Directors and Senior Management](index=16&type=section&id=Directors%20and%20Senior%20Management) [Directors and Senior Management](index=16&type=section&id=Directors%20and%20Senior%20Management) This section details the biographies of the company's executive directors, independent non-executive directors, and senior management, outlining their roles in overall strategy, independent oversight, and daily operational management within the security and property management sectors - The Executive Board comprises Mr. Ma Kiu Sang (Chairman), Mr. Ma Kiu Mo, Mr. Ma Kiu Man, and Mr. Ma Yung King, primarily responsible for the Group's overall corporate and business strategy formulation[389](index=389&type=chunk)[394](index=394&type=chunk)[395](index=395&type=chunk)[399](index=399&type=chunk) - Independent Non-executive Directors include Dr. Ng Ka Sing, Ms. Cheng Wai Ha, and Mr. Yau Siu Yeung, who possess professional backgrounds in policing, accounting, and law, respectively[401](index=401&type=chunk)[348](index=348&type=chunk)[349](index=349&type=chunk) - Senior management includes Mr. Choi Ming Fai (Chief Executive Officer) and Mr. Kwong Tat Man (General Manager), among others, who possess over **20 years** of extensive experience in the security and property management industries[353](index=353&type=chunk)[355](index=355&type=chunk) [Corporate Governance Report](index=22&type=section&id=Corporate%20Governance%20Report) [Corporate Governance Practices and the Board](index=22&type=section&id=Corporate%20Governance%20Practices%20and%20the%20Board) The company complies with all Corporate Governance Code provisions; its seven-member Board, with separate Chairman and CEO roles, ensures power balance and oversees strategy, while daily operations are managed by senior executives, and a board diversity policy is in place, aiming to enhance gender representation - For the year ended March 31, 2024, the company has complied with all applicable code provisions of the Corporate Governance Code[30](index=30&type=chunk) - The Board comprises **seven members**: four executive directors (Ma Kiu Sang, Ma Kiu Mo, Ma Kiu Man, Ma Yung King) and three independent non-executive directors (Ng Ka Sing, Cheng Wai Ha, Yau Siu Yeung)[32](index=32&type=chunk) - The roles of Chairman (Mr. Ma Kiu Sang) and Chief Executive Officer (Mr. Choi Ming Fai) are separate, ensuring a balance of power and authority[36](index=36&type=chunk) - The company has adopted a Board Diversity Policy, aiming to appoint at least **20% female members** within three years after its transfer of listing[44](index=44&type=chunk)[45](index=45&type=chunk) [Board Committees](index=27&type=section&id=Board%20Committees) The Board has four committees—Audit, Remuneration, Nomination, and Risk Management—all chaired by independent non-executive directors, overseeing financial reporting, internal controls, remuneration policies, board structure, director nominations, and the risk management framework - The Audit Committee comprises three independent non-executive directors, chaired by Ms. Cheng Wai Ha, and held **four meetings** during the year to review annual, interim, and quarterly results[85](index=85&type=chunk)[86](index=86&type=chunk) - The Remuneration Committee comprises three independent non-executive directors, chaired by Mr. Yau Siu Yeung, and reviewed the performance and remuneration packages of executive directors during the year[89](index=89&type=chunk)[90](index=90&type=chunk) - The Nomination Committee comprises one executive director and three independent non-executive directors, chaired by Mr. Yau Siu Yeung, and held **one meeting** during the year to review the Board's structure and composition[93](index=93&type=chunk)[97](index=97&type=chunk) - The Risk Management Committee comprises two executive directors and three independent non-executive directors, chaired by Dr. Ng Ka Sing, and held **one meeting** during the year to continuously monitor the Group's risk management and internal control systems[130](index=130&type=chunk)[131](index=131&type=chunk) [Risk Management and Internal Control](index=32&type=section&id=Risk%20Management%20and%20Internal%20Control) The Board is responsible for maintaining effective risk management and internal control systems, concluding their effectiveness based on independent reviews; while lacking an internal audit function, these duties are fulfilled through external consultants and Board oversight, and the company has whistleblowing and anti-corruption policies, with no significant corruption litigation - The Board bears overall responsibility for risk management and internal control, deeming the relevant procedures effective and adequate for the year ended March 31, 2024[141](index=141&type=chunk)[143](index=143&type=chunk) - The Group has engaged an independent professional firm to review the effectiveness of its internal control measures, with the Audit Committee and Risk Management Committee having reviewed the relevant reports[142](index=142&type=chunk) - The Group currently does not have an internal audit function, but this function is fulfilled through external consultants and formal Board policies[136](index=136&type=chunk) - The Group has established an anti-corruption policy, with **seven Board members** and the company secretary attending **8 hours** of internal anti-corruption training during the year, and no related legal proceedings[137](index=137&type=chunk)[138](index=138&type=chunk) [Directors' Report](index=37&type=section&id=Directors%27%20Report) [Principal Activities, Results and Dividends](index=37&type=section&id=Principal%20Activities%2C%20Results%20and%20Dividends) The Group's principal activities in Hong Kong, security and facility management services, saw no significant changes during the year; the Board recommends a final dividend of **1.20 HK cents per share** for the year ended March 31, 2024, subject to shareholder approval - The Group's principal activities are providing security and facility management services in Hong Kong, with no significant changes during the year[198](index=198&type=chunk) Proposed Final Dividend | Fiscal Year | Dividend Per Share (HK cents) | Remarks | | :--- | :--- | :--- | | As at March 31, 2024 | 1.20 | Proposed, subject to shareholder approval | | As at March 31, 2023 | 1.50 | Paid | [Continuing Connected Transactions](index=39&type=section&id=Continuing%20Connected%20Transactions) The Group has a new master service agreement with Ma family-controlled companies for security and facility management services, constituting continuing connected transactions; for FY2024, these transactions totaled approximately HK$19.7 million, below the HK$31.5 million annual cap, confirmed fair and compliant by independent non-executive directors and auditors - The Group entered into a new master service agreement with Ma family-controlled companies to provide security and facility management services, effective until **March 31, 2025**[215](index=215&type=chunk) Continuing Connected Transaction Amounts (HK$'000) | Fiscal Year | Annual Cap | Actual Transaction Amount | | :--- | :--- | :--- | | 2024 | 31,500 | 19,700 | | 2023 | 28,000 | 20,000 | - Both independent non-executive directors and the company's auditor have reviewed these transactions, confirming they are on normal commercial terms, fair and reasonable, and in the overall interests of shareholders[252](index=252&type=chunk)[254](index=254&type=chunk) [Major Customers and Risks](index=41&type=section&id=Major%20Customers%20and%20Risks) The Group faces significant customer concentration risk, with its top five clients accounting for **81.0%** of total revenue and the largest client for **44.5%**; key risks include reliance on railway and Hong Kong government contracts, regulatory changes, and impacts from Hong Kong's economic and political environment, with no significant post-year-end events identified - For the year ended March 31, 2024, the Group's top five clients accounted for **81.0%** of total revenue (2023: **73.0%**), with the largest client contributing **44.5%** (2023: **32.1%**) of total revenue[256](index=256&type=chunk) - Key business risks include reliance on significant contracts from railway companies and the Hong Kong Government, potential impacts from changes in industry regulations, and shifts in Hong Kong's local economic, social, and political environment[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk) [Disclosure of Interests](index=46&type=section&id=Disclosure%20of%20Interests) As of March 31, 2024, Executive Directors Mr. Ma Kiu Sang, Mr. Ma Kiu Mo, and Mr. Ma Kiu Man are deemed to collectively hold **560,000,000 shares** (70.0% of issued capital) through IWS Group Holdings Limited (BVI) due to their acting-in-concert relationship; interests of substantial shareholders and other persons are also disclosed Directors' Interests in the Company's Shares | Name of Director | Nature of Interest | Number of Ordinary Shares | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Ma Kiu Sang | Interest in Controlled Corporation and Acting in Concert | 560,000,000 | 70.0% | | Mr. Ma Kiu Mo | Interest in Controlled Corporation and Acting in Concert | 560,000,000 | 70.0% | | Mr. Ma Kiu Man | Interest in Controlled Corporation and Acting in Concert | 560,000,000 | 70.0% | - IWS Group Holdings Limited (BVI), as beneficial owner, holds **560,000,000 shares** in the company, representing **70.0%**[324](index=324&type=chunk) - The company adopted a share option scheme on September 20, 2019, but no share options have been granted under the scheme as of March 31, 2024[361](index=361&type=chunk)[362](index=362&type=chunk) [Environmental, Social and Governance Report](index=52&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) [ESG Report Framework and Governance](index=53&type=section&id=ESG%20Report%20Framework%20and%20Governance) This ESG report, prepared according to the HKEX ESG Reporting Guide, covers the Group's core Hong Kong operations; the Board oversees ESG strategy, risk assessment, and reporting, identifying key issues like operational compliance, customer privacy, and occupational health and safety through materiality assessment - The report is prepared in accordance with the Main Board ESG Reporting Guide of the Stock Exchange and has complied with the "comply or explain" provisions[459](index=459&type=chunk) - The Board oversees the Group's ESG matters and has identified material issues important to its business and stakeholders through a materiality assessment, including operational compliance, customer privacy protection, and occupational health and safety[467](index=467&type=chunk)[479](index=479&type=chunk) [Environmental Protection](index=56&type=section&id=Environmental%20Protection) The Group is committed to environmental sustainability, complying with regulations; its main emissions are from vehicles and office electricity, managed through maintenance, energy-saving measures, and reduced paper consumption; the Group holds ISO 14001:2015 certification and has measures for climate-related risks like extreme weather - The Group has obtained ISO 14001:2015 Environmental Management System certification, demonstrating its commitment to environmental management[517](index=517&type=chunk) Key Environmental Performance Indicators (FY2023/24) | Indicator | Value | | :--- | :--- | | Total Greenhouse Gas Emissions (tonnes of CO2e) | 90 | | Total Energy Consumption (MWh) | 184 | | Total Non-hazardous Waste Generated (kg) | 3,754 | - The Group has established work arrangements to address extreme weather conditions such as typhoons and heavy rain, mitigating climate-related risks[518](index=518&type=chunk) [Social Responsibility](index=59&type=section&id=Social%20Responsibility) The Group views employees as core assets, adhering to labor laws, offering equal opportunities, and prohibiting child/forced labor, providing competitive compensation and a safe work environment; it reported **20 work injuries** and **184 lost days** this year, holds ISO 9001:2008 certification for service quality, and strictly complies with anti-corruption laws and client privacy protection - The Group strictly complies with labor laws such as the Employment Ordinance, implements a non-discrimination policy, and prevents child labor through identity verification[520](index=520&type=chunk)[521](index=521&type=chunk) Employment and Work Injury Data | Indicator | 2023/24 | 2022/23 | | :--- | :--- | :--- | | Total Employees | 2,631 | 2,964 | | Employee Turnover Rate (Hong Kong) | 48% | 25% | | Number of Work Injuries | 20 | 18 | | Lost Days Due to Work Injuries | 184 | 301 | - The Group has obtained ISO 9001:2008 Quality Management System certification and provides various channels, including a **24-hour hotline**, for handling customer feedback and complaints[535](index=535&type=chunk)[537](index=537&type=chunk) - The Group has established an anti-corruption policy, providing **8 hours** of internal anti-corruption training to directors and the company secretary, with no related litigation during the year[511](index=511&type=chunk)[588](index=588&type=chunk) [Independent Auditor's Report](index=71&type=section&id=Independent%20Auditor%27s%20Report) [Independent Auditor's Report](index=71&type=section&id=Independent%20Auditor%27s%20Report) Deloitte Touche Tohmatsu issued an unqualified opinion on IWS Group Holdings Limited's consolidated financial statements, affirming they present a true and fair view of the Group's financial position and performance, prepared in accordance with HKFRS and the Hong Kong Companies Ordinance; "Revenue recognition for security services provided" was identified as a key audit matter - The auditor believes the consolidated financial statements present a true and fair view of the Group's financial position, performance, and cash flows in accordance with Hong Kong Financial Reporting Standards[1](index=1&type=chunk) - The key audit matter identified is "Revenue recognition for security services provided," given its significant financial impact on the consolidated financial statements, accounting for approximately **94%** of total revenue[6](index=6&type=chunk) - The auditor performed multiple procedures for this key matter, including understanding business processes, testing key controls, sampling revenue documents, and conducting analytical reviews of revenue from major client contracts[6](index=6&type=chunk) [Consolidated Financial Statements](index=76&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=76&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the year ended March 31, 2024, the Group's revenue increased by **2.4%** to **HK$401,994 thousand**, but profit before tax decreased from **HK$21,425 thousand** to **HK$17,065 thousand**, and profit and total comprehensive income for the year declined from **HK$17,645 thousand** to **HK$13,658 thousand**, with basic earnings per share at **1.71 HK cents** Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income (HK$'000) | Item | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | 401,994 | 392,496 | | Employee Benefits Expenses | (360,680) | (326,559) | | Subcontracting Costs | (8,055) | (29,301) | | Profit Before Tax | 17,065 | 21,425 | | Income Tax Expense | (3,407) | (3,780) | | **Profit and Total Comprehensive Income for the Year** | **13,658** | **17,645** | | Profit Attributable to Owners of the Company | 13,663 | 17,645 | | Basic Earnings Per Share (HK cents) | 1.71 | 2.21 | [Consolidated Statement of Financial Position](index=77&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2024, the Group's total assets were **HK$254,742 thousand**, total liabilities **HK$45,877 thousand**, and net assets **HK$208,865 thousand**, largely stable; net current assets of **HK$197,317 thousand** indicate strong short-term solvency, with major assets being trade and other receivables and bank balances and cash Summary of Consolidated Statement of Financial Position (as at March 31, HK$'000) | Item | 2024 | 2023 | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 13,165 | 10,654 | | Current Assets | 241,577 | 235,357 | | **Total Assets** | **254,742** | **246,011** | | **Liabilities and Equity** | | | | Current Liabilities | 44,260 | 38,809 | | Non-current Liabilities | 1,617 | 0 | | **Total Liabilities** | **45,877** | **38,809** | | **Net Assets** | **208,865** | **207,202** | | **Total Equity** | **208,865** | **207,202** | [Consolidated Statement of Cash Flows](index=79&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the year ended March 31, 2024, the Group's operating activities resulted in a net cash outflow of **HK$30,035 thousand**, a contrast to last year's inflow, primarily due to increased trade and other receivables; investing activities had a net outflow of **HK$17,826 thousand**, and financing activities a net outflow of **HK$13,688 thousand**, leading to a net decrease in cash and cash equivalents of **HK$61,549 thousand** Summary of Consolidated Statement of Cash Flows (HK$'000) | Item | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash From (Used in) Operating Activities | (30,035) | 45,474 | | Net Cash From (Used in) Investing Activities | (17,826) | 2,250 | | Net Cash Used in Financing Activities | (13,688) | (44,611) | | **Net (Decrease) Increase in Cash and Cash Equivalents** | **(61,549)** | **3,113** | | Cash and Cash Equivalents at Beginning of Year | 120,180 | 117,067 | | **Cash and Cash Equivalents at End of Year** | **58,631** | **120,180** | [Notes to the Consolidated Financial Statements](index=80&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes to the financial statements detail accounting policies, revenue segments, related party transactions, and financial instrument risks; the Group's primary revenue is from security services (**94%** of total), with high customer concentration where two major clients contribute over **75%** of revenue; related party transactions involve services to Ma family-controlled companies, and credit concentration risk is deemed controllable [Note 4. Revenue and Segment Information](index=88&type=section&id=Note%204.%20Revenue%20and%20Segment%20Information) This year's total revenue was HK$401,994 thousand, with security services contributing HK$377,009 thousand (**93.8%**) and facility management services HK$24,985 thousand; all Group operations are in Hong Kong, with very high customer concentration, as clients A and B (Hong Kong government departments and bureaux) collectively accounted for **78.8%** of total revenue Revenue by Service Type (HK$'000) | Service Type | 2024 | 2023 | | :--- | :--- | :--- | | General Manned Guarding Services | 180,240 | 204,424 | | Manpower Support Services | 196,552 | 163,644 | | Property Management Services | 17,804 | 18,210 | | Other Services | 7,398 | 6,218 | | **Total** | **401,994** | **392,496** | Revenue from Major Customers (HK$'000) | Client | 2024 | 2023 | Percentage of Total Revenue (2024) | | :--- | :--- | :--- | :--- | | Client A¹ | 178,882 | 125,825 | 44.5% | | Client B² | 137,927 | 165,528 | 34.3% | [Note 15. Trade and Other Receivables and Deposits](index=100&type=section&id=Note%2015.%20Trade%20and%20Other%20Receivables%20and%20Deposits) As of March 31, 2024, net trade receivables were **HK$79,985 thousand** and unbilled revenue **HK$78,330 thousand**, with client credit terms of **30 to 120 days**; a significant portion of receivables are over **120 days** (**HK$25,808 thousand**), but management considers default risk low due to public sector clients Aging Analysis of Trade Receivables (Net, HK$'000) | Aging | 2024 | | :--- | :--- | | 0 to 30 Days | 32,487 | | 31 to 60 Days | 9,495 | | 61 to 90 Days | 7,108 | | 91 to 120 Days | 5,087 | | Over 120 Days | 25,808 | | **Total** | **79,985** | - As of the reporting date, trade receivables totaling **HK$45,627 thousand** were overdue, with **HK$23,579 thousand** overdue for over **90 days**, but management believes no default is required to be recognized[666](index=666&type=chunk) [Note 24. Related Party Disclosures](index=107&type=section&id=Note%2024.%20Related%20Party%20Disclosures) This year, the Group engaged in multiple transactions with related parties, primarily companies controlled by the Ma family; revenue from security and facility management services, constituting continuing connected transactions, totaled approximately **HK$19.7 million**, and key management personnel compensation amounted to **HK$9,840 thousand** - Revenue from providing security and facility management services to Ma family-controlled companies totaled approximately **HK$19.7 million** (2023: approximately **HK$20.0 million**), constituting continuing connected transactions[707](index=707&type=chunk)[251](index=251&type=chunk) Key Management Personnel Compensation (HK$'000) | Item | 2024 | 2023 | | :--- | :--- | :--- | | Short-term Employee Benefits | 9,738 | 10,093 | | Post-employment Benefits | 102 | 123 | | **Total** | **9,840** | **10,216** | [Note 26. Financial Instruments](index=108&type=section&id=Note%2026.%20Financial%20Instruments) The Group faces primary financial risks including credit, liquidity, and market risks; credit risk is highly concentrated, with the largest client accounting for **60%** of total trade receivables and unbilled revenue, and the top five clients for **91%**, though management deems credit risk significantly reduced due to public sector clients; liquidity risk is managed by monitoring cash levels, and interest rate risk is not significant - The Group faces concentrated credit risk, with receivables from the largest client accounting for **60%** of total trade receivables and unbilled revenue, and the top five clients accounting for **91%**[601](index=601&type=chunk) - The Group manages liquidity risk by monitoring its levels of cash and cash equivalents[606](index=606&type=chunk) [Financial Summary](index=117&type=section&id=Financial%20Summary) [Five-Year Financial Summary](index=117&type=section&id=Five-Year%20Financial%20Summary) This section provides key financial data for the Group's past five fiscal years (2020-2024); FY2024 revenue (**HK$401,994 thousand**) and profit for the year (**HK$13,658 thousand**) were below 2022 peaks but higher than some prior years, with total assets and total equity showing steady growth Five-Year Financial Performance Summary (HK$'000) | Fiscal Year | 2024 | 2023 | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 401,994 | 392,496 | 537,371 | 365,833 | 481,571 | | Profit Before Tax | 17,065 | 21,425 | 71,783 | 72,806 | 60,118 | | Profit for the Year | 13,658 | 17,645 | 56,569 | 66,212 | 47,088 | Five-Year Assets, Liabilities and Equity Summary (HK$'000) | Fiscal Year | 2024 | 2023 | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 254,742 | 246,011 | 292,907 | 251,719 | 210,158 | | Total Liabilities | (45,877) | (38,809) | (60,150) | (49,531) | (58,182) | | Total Equity | 208,865 | 207,202 | 232,757 | 202,188 | 151,976 |

Financial Performance - For the fiscal year ending March 31, 2024, total revenue increased to HKD 401,994,000, up from HKD 392,496,000 in 2023, representing a growth of approximately 2%[2] - The net profit for the year was HKD 13,658,000, a decrease of 22% from HKD 17,645,000 in the previous year[3] - Basic earnings per share decreased to HKD 1.71 from HKD 2.21, reflecting a decline of about 22.7%[3] - The group reported a pre-tax profit of HKD 17,065,000 for 2024, down from HKD 21,425,000 in 2023, reflecting a decrease of 20.9%[16] - Basic earnings attributable to the company's owners for 2024 were HKD 13,663,000, a decrease of 22.7% from HKD 17,645,000 in 2023[24] - The total profit and comprehensive income for the year decreased by approximately HKD 4.0 million or 22.6% to about HKD 13.7 million for the year ending March 31, 2024, compared to approximately HKD 17.6 million for the year ending March 31, 2023[45] - The net profit margin decreased from approximately 4.5% for the year ending March 31, 2023, to approximately 3.4% for the year ending March 31, 2024[45] Revenue Breakdown - The revenue from general security services decreased to HKD 180,240,000 in 2024 from HKD 204,424,000 in 2023, representing a decline of 11.8%[13] - The revenue from manpower support services increased significantly to HKD 196,552,000 in 2024, up 20.1% from HKD 163,644,000 in 2023[13] - Revenue from the security services segment rose by approximately HKD 8.7 million or 2.4% to about HKD 377.0 million, primarily due to a HKD 32.9 million or 20.1% increase in manpower support services revenue[36] - Revenue from the facilities management services segment increased by approximately HKD 0.8 million or 3.2% to about HKD 25.0 million, attributed to a new cleaning service contract[38] Expenses and Costs - Employee benefit expenses rose to HKD 360,680,000, compared to HKD 326,559,000 in 2023, indicating an increase of approximately 10.4%[2] - The group’s total operating expenses increased to HKD 360,680,000 in 2024, compared to HKD 326,559,000 in 2023, marking an increase of 10.4%[20] - Sales and marketing expenses increased by approximately HKD 0.2 million or 9.7% to about HKD 2.1 million, mainly due to increased commissions paid to sales agents[40] - Subcontracting costs decreased by approximately HKD 21.2 million or 72.5% to about HKD 8.1 million, as related expenses from the pandemic were no longer incurred[41] - Other operating expenses increased by approximately HKD 1.0 million or 6.7% to about HKD 15.8 million, primarily due to increased depreciation of property and equipment[43] - Income tax expenses decreased by approximately HKD 0.4 million or 9.9% to about HKD 3.4 million, mainly due to a reduction in taxable profits[44] Assets and Liabilities - Total assets as of March 31, 2024, were HKD 241,577,000, slightly up from HKD 235,357,000 in 2023[5] - Current assets net increased to HKD 197,317,000 from HKD 196,548,000, showing a marginal growth[7] - Trade and other receivables rose to HKD 165,133,000 from HKD 110,930,000, marking an increase of approximately 49%[5] - The total equity attributable to the owners of the company increased to HKD 208,867,000 from HKD 207,204,000, a growth of about 0.8%[7] - The total borrowings of the group increased to approximately HKD 3.0 million as of March 31, 2024, compared to HKD 0.5 million as of March 31, 2023[48] Cash Flow and Financial Management - As of March 31, 2024, the group's bank balance, cash, and pledged bank deposits amounted to approximately HKD 73.6 million, a decrease of about HKD 46.5 million or 38.7% from approximately HKD 120.2 million as of March 31, 2023[47] - The current ratio of the group as of March 31, 2024, was 5.5 times, down from 6.1 times as of March 31, 2023[47] - The group has maintained a prudent financial management approach to ensure a healthy cash flow situation as of March 31, 2024[52] Shareholder Information - The company has a total of 800,000,000 shares issued as of March 31, 2024[87] - Major shareholders, including Mr. Ma Qiaosheng, Mr. Ma Qiaowu, and Mr. Ma Qiaowen, each hold 560,000,000 shares, representing 70.0% ownership[86] - The beneficial ownership of International Yongsheng BVI is also 560,000,000 shares, equating to 70.0%[92] - The company is controlled by three entities: Senye, Wenhua, and Jianqiao, each holding 33.34% of International Yongsheng BVI[90] - The ownership structure indicates a significant concentration of shares among a few key individuals, which may impact governance and decision-making[91] Corporate Governance - The company has adopted the corporate governance code as the basis for its governance practices[106] - The audit committee consists of three independent non-executive directors, with Ms. Zheng Hui Xia serving as the chairperson, ensuring appropriate professional qualifications and financial management expertise[111] - The audit committee reviewed the consolidated financial statements for the year ending March 31, 2024, confirming compliance with relevant accounting standards and regulations[112] - The preliminary announcement of the consolidated financial position and results for the year ending March 31, 2024, has been verified by Deloitte, confirming consistency with the audited financial statements approved by the board[113] Market Outlook - The market size of security services in Hong Kong is expected to grow from approximately HKD 280 billion in 2020 to about HKD 399 billion by 2025, with a compound annual growth rate (CAGR) of approximately 7.7% from 2021 to 2025[65] - The expected market size for public sector security services in Hong Kong is projected to reach approximately HKD 1,640.8 million by 2025, with a CAGR of about 5.7% from 2021 to 2025[65] - The facility management services market is the largest component of the Hong Kong facility management services market, indicating strong growth potential[69] - The group anticipates a stable growth rate in facility and venue management services, parking rental and management services, and cleaning services markets due to ongoing property development in Hong Kong[69] Future Plans - The group plans to delay the use of unutilized proceeds for purchasing machinery and upgrading IT infrastructure by 12 months, now expected to be utilized by March 31, 2025[79] - The group aims to enhance operational efficiency and scalability through an IT infrastructure upgrade, with an allocation of HKD 3 million for this purpose[78] - The company plans to expand its security services, strengthen facility management capabilities, and selectively seek strategic acquisitions and investment opportunities[117]

Revenue Performance - The group's revenue increased by approximately HKD 5.4 million or 2.8% to about HKD 198.8 million for the six months ended September 30, 2023, compared to approximately HKD 193.4 million for the same period in 2022[9]. - Revenue from the security services segment rose by approximately HKD 5.0 million or 2.7% to about HKD 186.2 million, driven by a net increase of HKD 12.6 million in manpower support services[10]. - Revenue from facilities management services increased by approximately HKD 0.4 million or 3.4% to about HKD 12.6 million, primarily due to new cleaning service contracts[11]. - Revenue for the six months ended September 30, 2023, was HKD 198.8 million, a 2.3% increase from HKD 193.4 million in the same period of 2022[79]. - Other income increased to HKD 1.1 million from HKD 0.6 million, representing an increase of 75%[79]. - Revenue from general security services decreased to HKD 91,317,000 from HKD 99,059,000, a decline of approximately 7.0%[92]. - The revenue from manpower support services increased to HKD 94,840,000 from HKD 82,195,000, representing a growth of approximately 15.5%[92]. Profitability and Income - Profit and total comprehensive income for the period decreased by approximately HKD 2.1 million or 16.6% to about HKD 10.4 million, with a net profit margin declining from approximately 6.4% to 5.2%[20]. - The adjusted profit and total comprehensive income for the six months ended September 30, 2022, was approximately HKD 9.6 million, with a corresponding net profit margin of about 5.0%[20]. - The pre-tax profit for the period was HKD 12.5 million, down 15.9% from HKD 14.9 million in the previous year[79]. - Net profit attributable to the owners of the company was HKD 10.4 million, a decrease of 16.6% compared to HKD 12.5 million in the same period last year[79]. - Basic earnings per share decreased to HKD 1.30 from HKD 1.56, reflecting a decline of 16.7%[79]. - The total profit and comprehensive income for the six months ended September 30, 2023, was HKD 10,391,000, a decrease of 16.6% compared to HKD 12,462,000 for the same period in 2022[101]. Expenses and Costs - Employee benefits expenses rose by approximately HKD 21.3 million or 14.0% to about HKD 173.5 million, attributed to an increase in staff numbers following the resumption of cross-border travel between Hong Kong and mainland China[14]. - Sales and marketing expenses increased by approximately HKD 0.1 million or 20.0% to about HKD 1.0 million, primarily due to increased commissions paid to sales agents[15]. - The group reported a decrease in subcontracting costs by approximately HKD 13.2 million or 74.1% to about HKD 4.6 million, mainly due to the cessation of COVID-19 related costs[16]. - Income tax expenses decreased by approximately HKD 0.3 million or 12.7% to about HKD 2.2 million, reflecting a reduction in taxable profits[18]. Financial Position - As of September 30, 2023, the group's bank balances and cash amounted to approximately HKD 85.2 million, a decrease of about HKD 34.9 million or 29.1% from HKD 120.2 million as of March 31, 2023[21]. - The current ratio as of September 30, 2023, was approximately 4.8 times, down from 6.1 times as of March 31, 2023[21]. - Total borrowings increased from HKD 0.5 million as of March 31, 2023, to HKD 3.7 million as of September 30, 2023, resulting in a debt-to-equity ratio of 1.8%[21]. - Cash and cash equivalents at the end of the period were HKD 65,240,000, down from HKD 115,046,000, reflecting a decrease of approximately 43.3%[85]. - The company’s trade payables amounted to HKD 722,000 as of September 30, 2023, compared to zero as of March 31, 2023[105]. Shareholder Information - As of September 30, 2023, the total number of issued shares is 800,000,000[43]. - International Winsome BVI holds 560,000,000 shares, representing 70.0% of the issued share capital[48]. - The company has no stock options granted or agreed to be granted under the stock option plan as of September 30, 2023[52]. - The ownership structure indicates that all major shareholders, including Senye, Wenhua, and Cambridge, each hold 100% of their respective shares in International Winsome BVI[45]. - The company has confirmed that there are no undisclosed interests or short positions in its shares as of September 30, 2023[51]. - The company is controlled by a group of individuals who collectively hold significant interests in the shares through various entities[46]. - The shareholding structure shows that all directors and senior executives have disclosed their interests in the company[47]. - The major shareholders include individuals with spouse interests, all holding 560,000,000 shares, equating to 70.0%[48]. - The company has confirmed compliance with the Securities and Futures Ordinance regarding the disclosure of interests[46]. Corporate Governance and Compliance - The company has complied with the corporate governance code principles and provisions during the reporting period[62]. - The board of directors has been re-elected at the annual general meeting held on September 19, 2023[64]. - There are no known conflicts of interest among directors or major shareholders regarding the company's business[66]. - The company has maintained the required public float as per the listing rules as of September 30, 2023[67]. Future Plans and Investments - The group plans to expand its security services and enhance facility management capabilities to capture opportunities in the Hong Kong market[39]. - The company plans to utilize the unutilized net proceeds for purchasing machinery and equipment, IT infrastructure upgrades, and establishing a control room by March 31, 2024[56]. - The company has no major capital commitments or significant investments planned as of the report date[33]. Dividends - No interim dividend has been proposed for the six months ended September 30, 2023[58]. - The company declared dividends of HKD 12 million during the period[83]. - The company declared a final dividend of HKD 0.015 per share, totaling HKD 12,000,000 for the year ended March 31, 2023, compared to HKD 43,200,000 for the same period in 2022[99]. - The company did not recommend an interim dividend for the six months ended September 30, 2023, compared to no interim dividend for the same period in 2022[100]. Miscellaneous - The group continues to face challenges in a volatile economic environment, but demand for security services remains strong, supported by the established "IWS" brand[7]. - The company has no significant acquisitions or disposals of subsidiaries or associates during the six months ended September 30, 2023[31]. - As of September 30, 2023, the group had no significant contingent liabilities or guarantees[38]. - The group maintained a prudent treasury policy, ensuring a stable liquidity position as of September 30, 2023[28]. - No significant events related to the company's business or financial performance have been identified after September 30, 2023[69]. - The company has utilized approximately HKD 24.5 million of the net proceeds from the GEM listing as of September 30, 2023[56]. - The total net proceeds from the GEM listing amounted to approximately HKD 32.0 million, with HKD 7.5 million remaining unutilized[54]. - The company invested HKD 1,817,000 in property, plant, and equipment, compared to HKD 32,000 in the previous period, indicating increased capital expenditure[85]. - The weighted average number of ordinary shares remained at 800,000,000 for both periods under review[101]. - The board approved the financial statements for publication on November 24, 2023[110].