Financial Performance - Revenue for FY2021 was HK$530.0 million, a decrease of 7.0% from HK$569.6 million in FY2020[20] - Gross profit decreased by 10.6% to HK$74.8 million, down from HK$83.7 million[20] - Profit for the year significantly increased by 256.5% to HK$73.8 million, compared to HK$20.7 million in the previous year[20] - For FY2021, total revenue was approximately HK$530.0 million, representing a decrease of approximately 7.0% from FY2020's HK$569.6 million[48] - Revenue from environmental hygiene and related services amounted to approximately HK$530.0 million in FY2021, a slight decrease from approximately HK$536.5 million in FY2020[51] - The gross profit decreased from approximately HK$83.7 million in FY2020 to approximately HK$74.8 million in FY2021, with the overall gross profit margin declining from approximately 14.7% to 14.1%[58] - The gross profit of environmental hygiene and related services decreased by approximately 7.0% from approximately HK$80.4 million in FY2020 to HK$74.8 million in FY2021[59] - The Group's profit attributable to owners for FY2021 was approximately HK$73.8 million, representing about 13.9% of total revenue, compared to HK$20.7 million or 3.6% in FY2020, largely due to government subsidies of approximately HK$65.5 million[66] Assets and Equity - Total assets rose by 33.1% to HK$276.5 million, up from HK$207.7 million[20] - Total equity increased by 54.7% to HK$208.7 million, compared to HK$134.9 million in FY2020[20] - As of March 31, 2021, the Group's total current assets were approximately HK$238.0 million, up from HK$173.0 million in the previous year, while current liabilities decreased to approximately HK$52.1 million from HK$59.0 million, resulting in a current ratio of approximately 4.6 times[68] - The Group's total assets as of March 31, 2021, were approximately HK$276.5 million, financed by total liabilities of approximately HK$67.8 million and total equity of approximately HK$208.7 million[69] Contracts and Business Development - The Group secured 15 new contracts and renewed 85 contracts with estimated contract values of HK$27.6 million and HK$773.6 million respectively, achieving a tender success rate of 20.4% and a contract renewal rate of 71.4%[38] - The total estimated value of contracts on hand reached approximately HK$1,408.7 million as of 31 March 2021, with approximately HK$655.5 million being outstanding contract value[38] - The Group is actively exploring horizontal business development opportunities, including potential expansion in geographic coverage and property-related synergized services[29] - The Group is focusing on registering as a supplier to a public health service operator to enhance service quality and create new revenue streams[25] - The Group aims to register as a supplier under public health service operators, which will open new revenue streams and potential customer categories in medical support services[27] Market Outlook - The environmental hygiene services market is expected to grow due to rising hygiene awareness and increased government spending on waste management[24] - The Group is well positioned to cater to the rising demands for environmental and personal hygiene services due to increasing public hygiene awareness[38] - The national government's Outline Development Plan for the Greater Bay Area is expected to bring substantial growth in commercial activities, particularly for technologically advanced hygiene and waste management services[29] - The overall business outlook remains positive in the medium to long term despite current unfavorable market conditions[47] Operating Expenses and Costs - General operating expenses increased by approximately HK$7.2 million, representing a 12.5% increase to approximately HK$65.0 million for FY2021, mainly due to a one-off anti-epidemic allowance of approximately HK$7.5 million paid to staff[61] - The cost of services for FY2021 was approximately HK$455.2 million, representing about 85.9% of the Group's revenue, compared to HK$485.9 million or 85.3% in FY2020[52] - The total staff costs and related expenses for FY2021 were approximately HK$321.3 million, representing a decrease of approximately 1.6% compared to approximately HK$326.6 million in FY2020[77] Governance and Board Structure - The Company has complied with the Corporate Governance Code during the year ended March 31, 2021, except for a deviation noted[111] - The company has adopted the GEM Listing Rules and confirmed compliance with trading standards by all directors for the year ended March 31, 2021[115] - The Board consists of nine members, including four executive directors and five independent non-executive directors, with no changes in composition during the reporting period[120] - The Board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of the company's affairs[119] - All independent non-executive directors have confirmed their independence, and the Board concluded that they are independent, with three possessing appropriate professional qualifications[128] Risk Management - The Board is responsible for the risk management and internal control systems, ensuring an annual review of their effectiveness[200] - The risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement or loss[200] - The effectiveness of the Group's risk management systems is reviewed at least annually[200] - The company acknowledges the importance of ongoing oversight of risk management systems[200] Capital Expenditure and Financial Position - Capital expenditure for FY2021 amounted to approximately HK$8.8 million, a significant increase from HK$1.1 million in FY2020, primarily financed by funds generated from operating activities[67] - The gearing ratio was 0.03 times as of March 31, 2021, down from 0.06 times in the previous year, indicating a stable capital structure[75] - The Group did not have any material contingent liabilities as of March 31, 2021, indicating a strong financial position[85] Shareholder Communication - Shareholders can submit inquiries to the Board via written communication or email through the company's website[197] - The company has specific procedures for shareholders to propose new resolutions at special meetings[196] - The main business address for shareholder communications is located in Tsuen Wan, Hong Kong[197]

WINSON HOLDINGS HONG KONG LIMITED 永順控股香港有限公司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) Stock Code 股份代號：6812 中期報告 2020 INTERIM REPORT ■ ■ ■ F . ■ � � � � 4 4 ● ▲ UNAUDITED INTERIM RESULTS For the six months ended 30 September 2020 截至2020年9月30日止六個月 The board (the "Board") of directors (the "Directors") of Winson Holdings Hong Kong Limited (the "Company", together with its subsidiaries, the "Group") is pleased to announce the unaudited condensed consolidated results of the Gr ...

Financial Performance - Revenue for the year ended March 31, 2020, was HK$569.6 million, representing a 6.0% increase from HK$537.3 million in 2019[13] - Gross profit increased to HK$83.7 million, up 5.2% from HK$79.6 million in the previous year[13] - Profit for the year slightly decreased to HK$20.7 million, a 0.5% decline from HK$20.8 million in 2019[13] - Total assets as of March 31, 2020, were HK$207.7 million, an 8.3% increase from HK$191.7 million in 2019[13] - Total equity rose to HK$134.9 million, reflecting an 8.6% increase from HK$124.2 million in the prior year[13] - Gross profit margin was 14.7%, a slight decrease from 14.8% in 2019[13] - Net profit margin decreased to 3.6% from 3.9% in the previous year[13] - Return on equity was 15.3%, down from 16.8% in 2019[13] - Interest coverage ratio improved to 71.9 times, compared to 55.0 times in the previous year[13] - Current ratio increased to 2.9 times, up from 2.8 times in 2019[13] Revenue Segmentation - Revenue from the environmental hygiene and related services segment grew by approximately 7.6% to approximately HK$536.5 million, contributing approximately 94.2% to the Group's total revenue[24] - Revenue from airline catering support services decreased to approximately HK$33.1 million, representing 5.8% of total revenue, a decline of approximately 14.2% from FY2019[39] - The gross profit of environmental hygiene and related services increased by approximately 6.5% from HK$75.5 million in FY2019 to HK$80.4 million in FY2020, with a slight decrease in gross profit margin from 15.1% to 15.0%[45] - The gross profit of airline catering support services decreased by approximately 19.2% from HK$4.0 million in FY2019 to HK$3.3 million in FY2020, primarily due to reduced demand from the COVID-19 outbreak[48] Operational Highlights - The Group achieved a tender success rate of approximately 19.7% and a contract renewal rate of approximately 51.2% in the environmental hygiene and related services segment for FY2020[24] - The total estimated value of contracts on hand as of 31 March 2020 was approximately HK$1.04 billion, with approximately HK$352.2 million being ongoing contracts[24] - The Group temporarily suspended its airline catering support services operation since March 2020 due to the significant reduction in passenger air traffic caused by COVID-19[16] - The demand for premium hygiene services is expected to remain positive as awareness of hygiene measures increases among property owners and the public[18] Corporate Governance - The Group successfully transferred its listing from GEM to the Main Board of The Stock Exchange of Hong Kong Limited in June 2020[19] - The Board consists of nine members, including four executive directors and five independent non-executive directors, with no changes in composition during the year ended March 31, 2020[98] - The Board has established three committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee to oversee specific aspects of the company's affairs[97] - The company has complied with the Corporate Governance Code during the year ended March 31, 2020, except for a deviation regarding the separation of the roles of Chairperson and Chief Executive Officer[107] - The Audit Committee was established on February 21, 2017, comprising four independent non-executive Directors[123] Risk Management and Internal Control - The Board is responsible for the risk management and internal control systems, ensuring an annual review of their effectiveness, covering all material controls including financial, operational, and compliance controls[168] - The Audit Committee has been delegated the responsibilities of risk management and internal control, with management confirming the effectiveness of these systems for the year ended March 31, 2020[169] - The Group's risk management and internal control systems were reviewed and deemed effective and adequate for the year ended March 31, 2020, with no significant areas of concern identified[182] - The internal control system aims to achieve operational effectiveness, reliable financial reporting, and compliance with applicable laws and regulations[180] Shareholder Communication - The Company provides opportunities for communication between shareholders and the Board through annual and extraordinary general meetings[162] - Shareholders can propose new resolutions at extraordinary general meetings, but not at annual general meetings, as per the Company's articles of association[166] - The Company has established procedures for shareholders to send inquiries and concerns to the Board through the company secretary[166] Financial Resources and Utilization - The Group's planned application and actual utilisation of the net proceeds showed that approximately HK$34.5 million was used out of the total HK$40.1 million[80] - The Group's financial resources were strengthened to finance cash flow under tender contracts, accounting for 45% of the total net proceeds[80] - The Group's cash and bank balance increased to approximately HK$40.5 million as of March 31, 2020, compared to approximately HK$33.8 million in FY2019[53]